NGK SPARK PLUG GroupCSR Report 2014
CSR ReportINDEX
Our Main Products ................................................................P2
Our Business Activities .........................................................P3
Message from the President ..............................................P4[Feature 1] 1st SHINKA (Delving) of Automobile
Oxygen Sensors ....................................................................P7[Feature 2] 2nd SHINKA (Renovating) for the
Advent of the Hydrogen Society ..................................... P11
Our CSR ................................................................................ P14
Management- Corporate Governance ................................................... P18- Compliance ........................................................................ P20- Export Controls ................................................................. P23- Security Control / Information Security ...................... P24- Intellectual Properties ...................................................... P26- Risk Management ............................................................ P28

Detailed Information about Environment
Fiscal 2013 Targets and Results ...................... P92
ISO 14001 Certiﬁed Locations .......................... P93
Data on Air, Water Quality, Noiseand Vibration .......................................................... P94
Environmental Accounting ................................ P101
PRTR data for Each Business Site ................. P102
Volumes of Waste Generated
at Each Business Site ........................................ P103
Local Clean-up Activities ................................... P104

With Our Customers- Quality Policy and Implementation Structure ........... P31- Initiatives to Improve Quality ......................................... P33- Communicating Information to Customers ............... P39
With Our Shareholders and Investors ........................... P40
With Our Suppliers ............................................................. P42
With Our Employees- Human Resource Policy ................................................. P47- Respecting Diversity ........................................................ P50- Human Resource Development ................................... P54- Labor-Management Relations/Compliancewith Labor Law ................................................................. P56- Occupational Safety and Health Basic Policy .......... P58- Occupational Safety Activities ...................................... P61- Health Promotion ............................................................. P65
With Local Communities and International
Society ................................................................................... P66
For Environmental Protection- Eco Vision 2015 ................................................................ P69- Environmental Burdens from Business
Activities ............................................................................. P71- Environmental Management ......................................... P72- Products ............................................................................. P78- Substances of Environmental Concern ...................... P80- Global Warming ................................................................ P83- Waste .................................................................................. P86- Water Resource ............................................................... P87- Environmental Communication .................................... P88
Third-Party Review ............................................................. P90

NGK SPARK PLUG Group CSR Report 2014

1

CSR > CSR Report 2014 > Our Main Products

Our Main Products

Even though many of our products are small, they actually make a big contribution to yourlife, society and the environment.

NGK SPARK PLUG Group CSR Report 2014

2

CSR > CSR Report 2014 > Our Business Activities

Our Business Activities

Click here to view detailed information.

NGK SPARK PLUG Group CSR Report 20143

CSR > CSR Report 2014 > Message from the President

Message from the President

NITTOKU SHINKARON (The Evolution of NGK SPARK PLUG)
In fiscal 2010, the NGK SPARK PLUG Group formulated a long-term management plancalled NITTOKU SHINKARON (The Evolution of NGK SPARK PLUG), which sets out thevision for NGK SPARK PLUG in 2020. Under this plan, our goal is to become adistinguished manufacturing company, a highly profitable company, a progressive
company, and a personnel "assets" company. Having achieved these goals, we will
deliver real value to stakeholders around the world.
The Evolution of NGK SPARK PLUG has been broken down into three separate
three-year stages called the 1st SHINKA (Delving), 2nd SHINKA (Renovating), and 3rd
SHINKA (Evolving). The year 2014 is the second year of the 2nd SHINKA (Renovating)stage, which also represents our sixth medium-term management plan. In the Delving
stage that lasted until fiscal 2012 we focused efforts on changing the foundation of thecompany, or our organizational structure and culture, as well as adopted the corporate
officer system and formulated new human resources systems.
For the three-year period of the 2nd SHINKA (Renovating) launched in fiscal 2013 wehave adopted a basic policy to fully leverage our management resources to tackle boldchallenges in new business domains and fields, with the aim of evolving to the final stageof the long-term management plan. Using the foundation constructed during the three
years of the 1st SHINKA (Delving), we now accelerate decision making and execution as
well as work on launching new products.

NGK SPARK PLUG Group CSR Report 2014

4

CSR > CSR Report 2014 > Message from the President

Overview of the New Medium-Term Management Plan

the Medium-Term Management Plan
The Second Year of the 2nd SHINKA – The Midway Point of The Evolution of
NGK SPARK PLUGIn April 2014, we introduced a new human resources system under which we will aim toachieve real human resources development that considers the career paths of individual
employees, delivering flexibility to their future with the company, and that can adapt to thechanging environment surrounding the NGK SPARK PLUG Group. Additionally, as part ofour initiatives for capitalizing on our diverse pool of human resources, first we aredeveloping a framework to promote the active participation of women. To achieve further
growth, we will proactively hire people with ambition and a challenging spirit, regardlessof gender, nationality, age, or disability.
In the Automotive Components Business, we will aim to further enhance our spark
plugs and sensors and toward that end we are diligently working on the next innovation
and revolution that will form the foundation of our new manufacturing philosophy. We arealso working on building a production system with an eye on 2020 when we expect alarge increase in demand from China and other emerging markets. This includes thecommencement of operations at Nittoku Spark Tech Tono Co., Ltd.’s Nino head officeplant, which will become a production base for spark plug insulators, and theestablishment of SparkTec (Thailand) Co., Ltd. as a production base for metal shells. Witha responsibility as the top manufacturer of spark plugs and oxygen sensors, we standfully committed to complying with the stricter environmental regulations of countries
around the world and to building a supply system where we can deliver our products in astable and speedy manner.
With regard to the Technical Ceramics Business, we have established a new fablessbusiness model for organic IC packages through our capital and business tie-up with
Eastern Co., Ltd. By combining our miniaturization technologies developed in the
packages segment with Eastern’s super thin sheet package and manufacturing
technologies for memory, we will be able to supply products that can adapt to theevolution of the smartphone and tablet devices.

NGK SPARK PLUG Group CSR Report 2014

5

CSR > CSR Report 2014 > Message from the President

As a next step in our evolution, we will develop our core technologies for use in fields
such as the environment, energy and EV. In addition to the spark plugs and oxygen
sensors we supply as ecological products, we will also develop solid oxide fuel cells(SOFC) and hydrogen leak detection sensors for fuel cell vehicles, as well as become
actively involved in the joint development of next-generation vehicles. By being the first to
develop in-demand ecological products through our core business to realize a low-carbon
society, we will be able to contribute to the sustainable society of tomorrow.
Fiscal 2014 represents the midway point of The Evolution of NGK SPARK PLUG.
During the second half of our medium-term management plan we will make further
progress and strive to deliver real value to stakeholders around the world.

Promotion of CSR Managemen
In November 2010, we established our CSR Committee and announced a CSR policy foraddressing the various risks facing the NGK SPARK PLUG Group and the demands ofsociety. The CSR Committee, with an eye on our CSR policy, takes the lead inestablishing targets for initiatives necessary for the continual and sustainable growth of
our company, and works to continually make improvements.
Practicing compliance requires continual training to make our philosophy and behavior
standards known and instilled in our daily operations. Additionally, the Compliance
Committee is leading the way to address various tasks, such as raising awareness about
the helpline and fostering a better workplace environment, based on the results of ourcompliance survey.
We have also carried out a business impact analysis (BIA) for a major earthquake andformulated a business continuity plan (BCP), under which we are making improvements.
We will further enhance our engagement with individual investors by increasing thenumber of briefings, making out existential value known to more through information
disclosures, and soliciting various feedback.
Under our policy to actively take part in social contribution activities as a good
corporate citizen, we held a free family musical in December 2013 at the NTK Hall
(Nagoya City), which we obtained the naming rights to in 2012. We invited people
displaced by the Great East Japan Earthquake who are currently living in Nagoya andchildren raised in orphanages as well as other families in the region to attend the fun-filled
event. Going forward, we will continue to plan similar events as part of community
contributions.
We hereby release CSR Report 2014, which compiles our activities during fiscal 2013.
We would very much appreciate your unreserved comments and opinions.

NGK SPARK PLUG Group CSR Report 2014

6

CSR > CSR Report 2014 > [Feature 1] 1st SHINKA (Delving) of Automobile Oxygen Sensors[Feature 1] 1st SHINKA (Delving) of
Automobile Oxygen Sensors*An exhaust gas cleaning device that simultaneously eliminates carbon monoxide (CO),hydrocarbons (HC) and nitrogen oxides (NOx) in exhaust gas through oxidation or
reduction.

Voice of our Developer
Aiming to establish new elemental technologies
The precious metal platinum is needed to make theelements in oxygen sensors perform their function, but it isan extremely expensive metal, which is a factor in pushingup the cost of sensors. We go to a lot of trouble to identify
the minimum amount of platinum required to strike abalance between guaranteeing the functional aspect of thesensor with cost reductions. Oxygen sensors still have ashort history relative to the history of the internal
combustion engine, and that is why there is still unexploredterritory in terms of methods of usage and development
goals. We will work to establish elemental technologies inorder to handle new areas.
Sensor Engineering Dept.Ⅱ, Sensor Division,
Automotive Components Group

Daisuke Uematsu
NGK SPARK PLUG Group CSR Report 2014

7

CSR > CSR Report 2014 > [Feature 1] 1st SHINKA (Delving) of Automobile Oxygen Sensors

Stricter Automotive Exhaust Gas Regulations Advancing Worldwide
Automotive exhaust gas regulations have been strengthened worldwide from theperspective of environmental conservation, and exhaust gas regulations have been
progressively introduced in in emerging countries as well following developed countries
such as Japan, the United States and Europe.
In particular, for diesel vehicles, regulations on NOx emissions have become stricter in
addition to particulate matter (PM), and exhaust gas regulations are scheduled to bestrengthened not only for passenger vehicles and trucks but also for off-road vehicles,
including construction and agricultural machinery.

NGK SPARK PLUG Group CSR Report 20148

CSR > CSR Report 2014 > [Feature 1] 1st SHINKA (Delving) of Automobile Oxygen Sensors

Automotive Exhaust Gas Regulations Worldwide*1

Post New Long Term: Automotive exhaust gas regulations established by Japan’s
Ministry of Land, Infrastructure, Transport and Tourism (MILT) in order to further
reduce PM and NOx emissions from newly sold trucks, buses and passenger cars.

*2

Tier 2/Bin #5, etc.: Exhaust gas regulations under the jurisdiction of theEnvironmental Protection Agency (EPA) under the direct control of the federal
government of the United States. NOx regulatory values have been graded in all 11
Bins (Bin 1 – Bin 11).

*3

Euro 5, etc.: Exhaust gas regulations introduced in September 2009 and applied tosports utility vehicles (SUVs) and compact commercial vehicles in January 2011.

Oxygen Sensors Making Exhaust Gas Cleaning Systems Function Effectively
The three-way catalyst is the device that plays the primary role in cleaning exhaust gas
from automobiles (gasoline vehicles). The three-way catalyst simultaneously eliminates
the three major hazardous substances (CO, HC and NOx) contained in exhaust gas
through oxidation and reduction. As such, the proper balance between the volumes ofcarbon, hydrogen and oxygen in exhaust gas is required for this process to be carried out
successfully.
This balance is termed the stoichiometric air Efficiency of catalytic converter
fuel ratio, which is also the condition for thecomplete combustion of the fuel by air(oxygen).
Oxygen sensors play a key role in theprocess. Oxygen sensors constantly keep the
air-fuel ratio in the region close to thestoichiometric air-fuel point by detecting theconcentration of oxygen in exhaust gas andfeeding the signal data back to the engine
control unit (ECU), allowing the three-way
catalyst to perform its function fully.
Significantly Reducing Activation Time in Step with Strengthening of Exhaust
Gas Regulations
Since utilizing its specialist ceramics technology to develop zirconia oxygen sensors in
the 1980s, NGK SPARK PLUG has continually evolved products that meet more stringent
exhaust gas regulations.

NGK SPARK PLUG Group CSR Report 2014

9

CSR > CSR Report 2014 > [Feature 1] 1st SHINKA (Delving) of Automobile Oxygen Sensors

For an oxygen sensor to function, the sensor element needs to be activated by raising
it to a certain temperature (300°C). As early oxygen sensors used the heat of the exhaustgas for this, they took several minutes to activate after the engine was started. However,
it is necessary to activate the element as quickly as possible to meet stringent exhaustgas regulations. Therefore, in the second half of the 1980s, NGK SPARK PLUG
developed the zirconia oxygen sensor that activated in about 20 seconds using its own
heat from a built-in heater in the sensor. Subsequently, we have shortened the activation
time by improving the heater structure and the element, achieving activation in a mere
five seconds after the engine starts for the latest model.
Developing Wide Range Oxygen Sensors that are also Useable with Diesel
VehiclesWhile evolving zirconia oxygen sensors, NGK SPARK PLUG developed wide range
oxygen sensors in 1980s that sense using a completely different and unique mechanism.
While a zirconia oxygen sensor only determines oxygen volume in the region close to
the stoichiometric air-fuel ratio, a wide range oxygen sensor enables highly precise
detection of oxygen concentration across a wide range by measuring the magnitude of
deviation from the stoichiometric point. As a result, in addition to enabling more precise
control of the air-fuel ratio, it was also applicable to diesel vehicles, in which the air-fuelratio could not previously be controlled using an oxygen sensor.
In light of the worldwide strengthening of exhaust gas regulations in the 2000s. NGKSPARK PLUG also made improvements to its wide range oxygen sensors, developing a
product with the activation time reduced to five seconds through integration of the heaterand element. NGK SPARK PLUG is contributing to even cleaner exhaust gas.
Histogram of controlled A/F during driving mode

Highly precise control of NOx is needed tomeet the stringent NOx regulatory values ofrecent years.
NOx sensors measure the concentrationsof NOx and oxygen in exhaust gas in realtime, contributing to energy conservationand clean air by controlling NOx in gasoline
direct injection engines and diesel engines.

NGK SPARK PLUG Group CSR Report 201410

CSR > CSR Report 2014 > [Feature 2] 2nd SHINKA (Renovating) for the Advent of the Hydrogen Society[Feature 2] 2nd SHINKA (Renovating)for the Advent of the Hydrogen Society*Hydrogen is expected to be used for fuel cell vehicles (cars and forklifts), hydrogen-filling
stations, residential fuel cells and other applications.

Voice of our Developer
Toward development of non-degrading sensor tomaintain FCV safety
Rapid and accurate detection of a hydrogen leak is one of
the critical factors for the life of the driver in a fuel cellvehicle (FCV) that runs on hydrogen. Therefore, it isnecessary to develop a sensor that is non-degrading at thesame time as being highly precise.
NGK SPARK PLUG’s hydrogen leak detection sensor isstill under development, but we take pride in the facts thatit uses a method of detection that is different from those of
our competitors and that the durability of the sensor issuperior to those of our competitors. First of all, we areaiming to develop a sensor that will be fitted to FCVs formass production and gain the No. 1 share of the market inthis area.
New Business Strategy Dept.,
New Business Advancement Group

Daisuke Ichikawa
NGK SPARK PLUG Group CSR Report 201411

CSR > CSR Report 2014 > [Feature 2] 2nd SHINKA (Renovating) for the Advent of the Hydrogen Society

Hydrogen’s Potential to Solve Energy Problems
Hydrogen has promise as a next-generation energy resource that will play a role insolving energy and environmental problems because it releases hardly any hazardous
gases when burnt and can be manufactured from a variety of raw materials including
fossil fuels, biomass and water.
The FCV, the classic example of utilizing hydrogen energy, is a clean vehicle that runs
on a motor driven by electricity produced using a chemical reaction between hydrogenand oxygen, and it is believed that the spread of FCVs would have a significant effect on
preventing atmospheric pollution and global warming. The leading automobile
manufacturers are already promoting FCV development, and commercial models arescheduled to go on sale in 2015.
Safety management will thus be critical. Hydrogen is an extremely flammable gas witha danger of fire and explosion if it leaks into the air. Therefore, FCVs are required to be
fitted with a device that will detect a hydrogen leak as well as giving an alert to inform thedriver and shutting off the fuel supply in the event that a hydrogen leak is detected.
* With some exceptions

NGK SPARK PLUG Group CSR Report 2014

12

CSR > CSR Report 2014 > [Feature 2] 2nd SHINKA (Renovating) for the Advent of the Hydrogen Society

Hydrogen Leak Detection Sensor Contributing to Safe Use of Hydrogen
The hydrogen leak detection sensors that are currently in practical use mainly employ thecatalytic combustion method. This is a mechanism in which the detector element (heater)
is coated with a catalyst such as platinum or palladium and senses a leak via the heatgenerated by the chemical reaction between the leaking hydrogen and the catalyst.
However, this method has the disadvantage that accurate detection is no longer possible
once the catalyst degrades or separates from the element.
In contrast, NGK PARK PLUG has developed a new and unique thermal conductive
method of detection. This is a method that detects the concentration of hydrogen gas bymeasuring the amount of heat taken up by hydrogen. The thermal conductivity ofhydrogen is extremely high, so the amount of heat escaping from the heater will increase
with the presence of hydrogen, and the concentration of hydrogen can be detected
through changes in the volume of heat radiation.
Not only is there very little degradation with the thermal conductivity sensor, which does
not use a chemical reaction, but start-up and response are also rapid. Moreover, it also
withstands vehicle vibrations and impacts. Therefore, NGK SPARK PLUG has been
pursuing activities proposing it to automobile manufacturers as the ideal hydrogen leakdetection sensor for FCVs that will be in use over long periods.

NGK SPARK PLUG has also widened its
approach to the field of electric vehicles(EVs). The Company is gathering andbuilding up technical data leading into
research and development on cutting edge
EVs through its participation in EV projects
at SIM-Drive and FOMM.

NGK SPARK PLUG Group CSR Report 201413

CSR > CSR Report 2014 > Our CSR

Our CSRCSR Concept
We view CSR not just as a responsibility but as an opportunity to be accountable throughreview of the NGK SPARK PLUG Group's economic, environmental and social activities
from a global perspective, to enhance corporate value, and to contribute to thesustainable development of society in accordance with our Corporate Philosophy.
Philosophy and Policy Organization

Our CSR activities are wide-ranging, and include the following:【Examples】
・Offering excellent products to customers
・Disclosing corporate information to shareholders and the broader investor community,in an optimal and easy-to-understand manner
・Collaborating with suppliers for mutual development
・Establishing a safe and employee-friendly working environment
・Participating in and supporting activities in the local community

To provide our Group's action guidelines for fulfilling CSR, in April 2011 our CSR Policy
was established, which comprises 10 policies, such as the Compliance Policy and others.
In line with the CSR Policy, we intend to review and promote CSR based on amultifaceted approach, into the future.
Corporate Philosophy
Corporate Code of Conduct
CSR Policy [21KB]NGK SPARK PLUG Group CSR Report 201414

CSR > CSR Report 2014 > Our CSR

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

CSR Promotion Activities Targets
We carry out CSR promotion activities according to the medium-term targets and fiscal
year targets.
Our CSR Committee checked the progress for fiscal 2013 and formulated new targets
for fiscal 2014 as part of achieving our medium-term targets.
We made clear the important social responsibilities of the NGK SPARK PLUG
Group.
The NGK SPARK PLUG Group is connected to and supported by customers,
shareholders, investors and various other stakeholders. For that reason, for the group to
be sustainable in the future, we must aim to grow our business while meeting the
expectations and needs of our stakeholders.
When we set our targets for fiscal 2014, first each expert committee and divisionconfirmed the expectations and demands of all our stakeholders. Then they comparedthem to our corporate philosophy, Corporate Code of Conduct and CSR Policy anddrafted targets. Finally, the CSR Committee approved them.

NGK SPARK PLUG Group CSR Report 201415

CSR > CSR Report 2014 > Our CSR

CSR targets and results [117KB]NGK SPARK PLUG Group CSR Report 201416

CSR > CSR Report 2014 > Our CSR

Progress in our CSR
Nov. 1996 Adopted “Corporate Philosophy”
Feb. 1998 Adopted “Corporate Code of Conduct”
Apr. 1998 Established Ethical Committee
Feb. 2003 Adopted “Corporate Ethics Helpline System Operation Guidelines”
Nov. 2004

Revised “Corporate Code of Conduct”
Published “Code of Conduct Guidebook”

Apr. 2005 Published “Guidelines on the Handling of Personal Information”
Aug.
2005

Established Export Control Committee Adopted “Export Management Regulations”

Feb. 2007 Adopted “Confidentiality Management Regulations”
Nov. 2007 Published “Confidentiality Management Guidelines”
Sep.
2008

Established Internal Audit Department

Apr. 2009 Prepared “Corporate Protection Manual”
Apr. 2010 Inaugurated CSR Promotion Department
Oct. 2010 Established CSR Committee
Apr. 2011 Adopted CSR Policy
Nov. 2011 Established Compliance CommitteeJan. 2012 Published “Compliance Guidebook”
Mar. 2012 Adopted “Compliance Regulations”
Oct. 2012

Adopted “Emergency Response Plan Regulations” and “Business Continuity Plan (BCP)
Regulations”

May 2013 Published ”CSR Procurement Guidelines”

NGK SPARK PLUG Group CSR Report 201417

CSR > CSR Report 2014 > Management > Corporate GovernanceCorporate Governance
Basic Philosophy
We believe that it is our foundational and important managerial task to establish andmaintain a fair and efficient management system, while securing soundness andtransparency in management, in order to enhance corporate value by fulfilling ourcorporate social responsibilities.
Management Organization
In April 2012, we introduced the corporate officer system and the system for determining
officers' remuneration based on assessment of their performance. These systems wereintroduced because we believe that, to achieve further development in the rapidlychanging business climates and global economy, we need speedy decision-making andbusiness execution.
Corporate officers manage corporate affairs based on the policies decided by the boardof directors, and at monthly corporate officer meetings, they report on the situation
relating to management of corporate affairs and work to improve management efficiency
through lateral information sharing and opinion exchanges.

Management Oversight Functions
NGK SPARK PLUG CO., LTD. is a company with a Board of Corporate Auditors, which
consists of two standing statutory auditors and two external auditors. These auditors
attend the meetings of the Board of Directors and, if necessary, various committee
meetings, to grasp the status of important issues. They also supervise directors'
execution of duties, through audits of major offices and subsidiaries.

Nominating Outside Directors and Strengthening Corporate GovernanceOur company aims to become a true global company and is endeavoring to further
strengthen corporate governance. As one aspect of that, in June 2013, we appointed an
outside director for the first time. The outside director attend the meetings of the Board of
Directors and state their opinions as necessary, based on their great experience at global
companies and deep insight.

Internal Audits
The Internal Auditing Office performs audits of NGK SPARK PLUG CO., LTD. and its
subsidiaries and affiliates, reports the audit results to management, and makes proposals
to correct problems and improve business operations as necessary. A department thatreceives a proposal for improvement formulates and implements an improvement planand the Internal Auditing Office investigates and confirms the implementation status.
The department assesses the effectiveness of internal control over financial reporting inaccordance with the requirements for the internal control report system pursuant to the
Financial Instruments and Exchange Act so as to secure the reliability of the Group’s
financial reporting, thereby maintaining and improving internal control.

NGK SPARK PLUG Group CSR Report 201418

CSR > CSR Report 2014 > Management > Corporate GovernanceCorporate Governance System

NGK SPARK PLUG Group CSR Report 2014

19

CSR > CSR Report 2014 > Management > Compliance

Compliance
Compliance Policy
We acknowledge that our company is a member of society. In the light of this, weenhance corporate ethics, comply with laws and ordinances, international rules, andcompany regulations, striving to become a company trusted by the international
community.
【 Action Guidelines】

We comply with all relevant laws and ordinances, the Corporate Code of Conduct,and company regulations.
We regularly educate and raise the awareness of all our employees to impart ahigh-level of ethics and correct knowledge, with which they can act voluntarily toprevent compliance problems.
Should a problem occur, we will promptly deal with the problem and fulfill our
accountability, and will strive to identify the causes and prevent recurrence.

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

Compliance Promotion System
In August 2013, to promote compliance in the Group's various workplaces, we newly
established a structure where the managers of all departments and the Group company
presidents are designated “compliance leaders,” with “compliance promoters” under theirsupervision.
Moreover, a Compliance Committee made up of personnel in charge of overseeing
compliance with laws and ordinances in various departments and the heads of eachdivision, headed by the officer in charge of General Administration, holds meetings every
three months, carrying out inspections and correcting serious problems.

NGK SPARK PLUG Group CSR Report 201420

CSR > CSR Report 2014 > Management > Compliance

Compliacne Promotion System

Education and Awareness-raising
To heighten employee awareness of compliance, in addition to conventional seminars
aimed at different levels of the corporate hierarchy, in January 2012 we distributed aCompliance Guidebook to all employees and are making active use of it in workplace
training. The guidebook summarizes the Corporate Code of Conduct and the compliancepolicy and structure, and it includes an explanation of the main laws and regulations to becomplied with as well as a Q&A.
Also, every month since August 2013, we have been distributing training materials andcase studies to every division and Group company through the corporate intranet topromote education and awareness.

Surveying Each Division on ComplianceTo understand companywide compliance issues, in fiscal 2013 we carried out compliancesurveys aimed at every employee of the company.
Regarding actual issues, beginning in fiscal 2014 we will update our education andawareness activity plan based on those surveys and work to make improvements.

Corporate Ethics Helpline
The Corporate Ethics Helpline is a channel for employee consultations regarding
compliance.
There are helpline channels inside and outside the company accepting anonymous
inquiries.
Regarding consultations and reports received, facts are investigated with discretion so
the reporting employee is not identified and does not feel uncomfortable, and as problems
are confirmed they are dealt with promptly.
There were 20 consultations or reports in fiscal 2013, and they mostly involved labor,
the work environment, and information management. There have also been cases wherereports led to reform of company rules.
NGK SPARK PLUG Group CSR Report 201421

CSR > CSR Report 2014 > Management > Compliance

Flow after report is received via the Helpline

We want employees to feel at ease using thehelpline.
The Corporate Ethics Helpline is a reporting/consultation
channel directly linked to the officer in charge ofcompliance. Under this system, the identity of the employee
making contact, even when a real name is used, is sharedwith a minimal necessary number of people during fact
finding. The privacy of that employee who faithfully made areport is protected and care is taken that he not bedisadvantaged by making a report.
We hope employees will make use of the helpline when
they feel uncomfortable raising an issue within theworkplace.

GeneralAdministration Dept.

Yasuo MoriNGK SPARK PLUG Group CSR Report 201422

CSR > CSR Report 2014 > Management > Export Controls

Export Controls
Basic Philosophy
To maintain international peace and security, Japan has implemented security export
controls in full coordination with the international community, but in recent years moresuitable controls have been needed as the international situation has worsened.
To suitably carry out security export controls based on the Foreign Exchange andForeign Trade Control Law, we have drawn up its own Export Management Regulations
and has configured its own in-house export control structure. This will allow us to flexibly
deal with regulation revisions.
Furthermore, under the guidance of the authorities we have put in place an aircraft
cargo security management system to prevent terrorism and are working to suitably
control cargo such as through the introduction of metal detectors at each department
involved in distribution.
We will continue to carry out business in compliance with all laws and regulations tofulfill our responsibilities as demanded by the international community and thegovernment.

Holding Regular Briefings on Different Themes
The Export Control Committee secretariat considers it necessary to continue educational
activities in order to teach the entire company about security export controls and cargo
security management. To that end, we are planning regular, timely briefings on various
themes in fiscal 2014.
Themes
1. Cargo security management (Known Shipper/Regulated Agent system)
2. Foreign exchange laws and security export controls
3. Customs law, Authorized Exporters' Program
4. Classification in practice (new)Contributing to compliance through easy-tounderstand explanations
Because export control is supported by the cooperation ofvarious divisions including technical, sales and distribution
divisions, we hold briefings for people in related divisions onlaws and regulations that must be paid attention to whenexporting.
We will continue to hold briefings under the motto“making difficult laws and regulations easy to understand”
while confirming the status of inspections and working toensure sound compliance with laws and regulations.

GeneralAdministration Dept.

Naoko Tokimoto

NGK SPARK PLUG Group CSR Report 201423

CSR > CSR Report 2014 > Management > Security Control / Information Security

Security Control / Information Security
Information Security Policy
We regard our own information assets as one of our management resources.
Through the protection and effective use of our information assets, we pursue healthy
maintenance and development of our business.
【 Action Guidelines】

We establish information security regulations that clearly define the system andresponsibilities to protect all the information assets we keep for our customers, ourinformation assets as information resources, and personal data.
We comply with laws, ordinances, and regulations regarding information security.
We educate all executives and employees who handle information assets about
the importance of information security, and about specific items to be observed.
We continuously implement measures necessary to improve the management
system and to protect our information assets, keeping pace with a rapidlychanging information society.
If a problem with the information security system is predicted to occur due tounforeseen circumstances, we will promptly take action to prevent an accident
associated with the problem. Should the accident occur, we will strive to minimize
the damage and take preventive measures against reoccurrence.

With the development of information and communication technology, it has become more
important and more complex for companies to manage confidential information.
We established our Confidentiality Management Regulations as part of our endeavors
to properly manage the confidential information of our company, customers and suppliers.
We are also working to bring greater efficiency to our work processes by introducing awireless Local Area Network in our shared spaces while complying with the relevant laws
and regulations, not to mention maintaining thoroughgoing security management.
Our privacy policy is available on our website.
Privacy Policy
Education and Awareness Through the Information Security Handbook
We have established security-related rules for our information system users and put themin an Information Security User Guidebook, and we are working to take appropriate
measures to manage information security. For the particularly important information, we
created an Information Security Handbook that uses illustrations and explanations tocommunicate as simply as possible and distributed it to all employees of Group
companies in Japan in April 2014. We are using it as an educational and awareness toolin all our workplaces.
We will continue our activities to increase awareness of information security and firmly
establish it within the company.

NGK SPARK PLUG Group CSR Report 201424

CSR > CSR Report 2014 > Management > Security Control / Information Security

Carrying Out Mutual Checks Related to Confidentiality Management
So the confidentiality management rules we enacted do not become rules in name only, it
is essential to periodically hold inspections of the status of confidentiality management. In
addition to self-checks typically held in each division, the Confidentiality Management
Committee will have divisions throughout the company carry out mutual checks to moreobjectively and effectively inspect the confidentiality situation and make corrections asnecessary.

To be thorough in confidentiality management andavoid corporate risk
As a member of the Confidentiality Management Committee
secretariat, I am in charge of promoting confidentiality
management throughout the company. When confidential
matters are leaked, there is not only a degradation ofcompetitiveness in the market and actual damages due todemands for compensation of damages from business
partners, but there are the incalculable effects of adamaged image due to a loss of public faith in the company.
To prevent these effects, we are working to make thecompanywide standard confidentiality management rules
more suitable, entrench them and expand them to groupcompanies.

GeneralAdministration Dept.

Tadashige
Maegawa

NGK SPARK PLUG Group CSR Report 201425

CSR > CSR Report 2014 > Management > Intellectual Properties

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

Promoting Measures to Stamp Out Counterfeit Goods
Counterfeit NGK spark plug goods are
spreading, mainly in emerging nations. To
ensure the safety of users and protect our
corporate brand, we are working incooperation with police and customs officials
in various countries to expose counterfeitersand destroy counterfeit goods. We will also
proactively participate in educational
activities to stamp out counterfeit goods incooperation with government bodies andindustry organizations.

A seminar for the controlling authorities(UAE)

Winning International Recognition Related to the Protection of Intellectual
PropertyNGK SPARK PLUG CO., LTD. was named one of the Top
100 Global Innovators 2013 chosen by Thomson Reuters.
This award is given to companies recognized as being
innovative and working to protect intellectual property or ascompanies that brought about an invention that affects theworld. We received the award because, among the four
selection criteria relating to innovations determined byThomson Reuters (success, global, influence and volume), it
received high evaluations in global and volume.

TrophyNGK SPARK PLUG Group CSR Report 201426

CSR > CSR Report 2014 > Management > Intellectual Properties

Aiming to acquire the corporate asset known asIntellectual property rights
When proactively acquiring intellectual property rights, inaddition to protecting our own products, we also work with
developers on a daily basis to achieve the effect of holding
other companies in check. As part of our intellectual
property training, we are also providing lectures for
employees inexperienced in matters of intellectual propertyon the importance of patents and basic knowledge for
applying for them.

Intellectual Property
Dept.

Yuko Iwasaki

NGK SPARK PLUG Group CSR Report 201427

CSR > CSR Report 2014 > Management > Risk Managementt

Risk Management

In November 2013, we carried out companywide simultaneous disaster
preparedness training for a major earthquake. Furthermore, in February 2014, as
one aspect of Business Continuity Management, we carried out training on how toquickly recover such company infrastructure as electricity, telephone, gas, andwater supply as well as important facilities of each division based on a Business
Impact Analysis.

Early recovery training

Central Emergency Headquarters
receives a report on the results of the
training

We are promoting the participation of all Group
employees in disaster preparedness activities
In April 2013, we distributed a
Workplace Disaster
Preparedness Handbook to all
employees and we are carrying
out workplace education. We
also distributed an Earthquake
Countermeasures and Survival
Card and are focusing on
educating employees to respondas instructed on the card in the event of a large
earthquake to maintain their own safety.

GeneralAdministration Dept.

Yuki Aida

NGK SPARK PLUG Group CSR Report 201428

CSR > CSR Report 2014 > Management > Risk Managementt

Risk Management Policy
We are prepared to deal with various possible risks, such as natural disasters,
accidents and spread of new infectious diseases. If such a risk should arise, we will
act to minimize the impact on our stakeholders. We also work to restore and continuesmooth business operations, thereby maintaining trust from our stakeholders.
【 Action Guidelines】

We strive to prevent factors that could affect business continuity.
We conduct our activities with top priority on the protection of human life.
We minimize impact on related parties.
We strive for rapid restoration of business operations and stable supply of
products and services.
We take measures to prevent the recurrence of risks.

Basic Philosophy
In operating business, we face many risks including natural disasters, accidents,
terrorism, and the spread of new infectious diseases. If an unforeseen incident occurs, wewill act giving top priority to the protection of human life. We have also made contingency
plans so that we can smoothly continue our business operation even under suchcircumstances.

Holding Companywide Simultaneous Disaster Preparedness Training
To allow employees to conduct themselves
without confusion if disaster struck, we
carried out companywide simultaneous
disaster preparedness training for a major
wide-area earthquake. This training aimed tolet employees practice following the rules ofdecision-making, division of responsibility,
roles and the like and to experience themand improve them to be useful in the eventof an emergency.
Many employees participated. We held
training in Step 0 evacuation in which aperson protects himself, evacuating to a
designated primary shelter, quickly replying
to the safety confirmation system, water
spraying by a self-defense fire brigade andlife-saving measures by disaster prevention
personnel, as well as in establishing an
emergency headquarters and gathering
information.

Evacuation training (headquarters)

Adopting Emergency Power Supplies for IT
To be able to safely shut down the main servers when a major disaster cuts off the power
supply, we installed dedicated emergency generators in the machine rooms at
headquarters and in our Komaki plant.

NGK SPARK PLUG Group CSR Report 2014

29

CSR > CSR Report 2014 > Management > Risk Managementt

Creating and Distributing the Workplace Disaster Preparedness Handbook andEarthquake Countermeasures and Survival Card
So that employees can act to ensure their own safety first in the event of a natural
disaster or fire, we created a Workplace Disaster Preparedness Handbook andEarthquake Countermeasures and Survival Card and distributed them to all employees in
the Group.
The Workplace Disaster Preparedness Handbook is being put to use as educational
material for disaster preparedness, including by having all employees read and memorize
it, and also by having them keep it nearby so they can browse through it and read it out
loud to one another to check it. Also, the Earthquake Countermeasures and Survival
Card, which further summarizes the main points, is in an easy-to-carry business cardsize.

Response to New Infectious Diseases
To protect employee's health from the seasonal influenza every year, we strive to preventthe spread of infection. Particularly regarding group infection at workplaces, which may
affect our daily operations, we are ready to cooperate with the relevant divisions to
implement immediate and intensive measures. During the flu season, we issue weekly
reports so that all employees can share the information and take effective
countermeasures. In addition, we are attentive to informations on candidate viruses fornovel influenza.

We will continuously implement preparedness for
infectious diseases.
In April 2009, the novel influenza virus H1N1 broke out in
Mexico and spread throughout the world. In early 2013,human infection with the avian influenza virus H7N9 was
identified in China and infection of humans and birds has
since continued. Since no one can predict when a new typeof pandemic influenza may emerge, we will make all
possible preparations, including the establishment ofrelevant guidelines and the review of stockpiles for
emergencies, while paying attention to the actual situation.

Healthcare
Promotion, Human
Resources Dept.

Shiko AbeNGK SPARK PLUG Group CSR Report 201430

CSR > CSR Report 2014 > With Our Customers > Quality Policy and Implementation Structure

Quality Policy and Implementation
Structure
Quality Policy and Implementation Structure
Corporate Quality Policy
We continue to supply "Quality Products" to society with an emphasis on "Customer
First," "Total Involvement," and "Continuous Improvement" principle.
【 Action Guidelines】

We strive to take a customer-oriented approach to accurately understand a wide
variety of customers' needs and provide quality products and services, aiming toensure greater customer satisfaction.
We encourage all our employees to be actively involved in quality improvement
activities, based on companywide cooperation, and to achieve higher goals bymaking the best use of their own individual abilities and creativity to address
problems and challenging issues.
Accurately responding to ever changing social/market environments and thediverse needs of customers, we strive to continue improving our systems,
processes, products and services, aiming to further grow as an energetic andsound corporation.

Basic Philosophy on Quality
Under the continuously evolving business environment surrounding our Group,
customers' quality demand is also becoming stricter and more complex. Against thisbackdrop, companies are increasingly expected to fulfill their corporate social
responsibilities, by sincerely listening to customers' opinions, adequately and promptly
responding to a wide variety of requests and issues, and meeting diverse expectations
from customers.
To appropriately understand the diverse needs of customers and promptly takenecessary actions from the viewpoint of customers, we at NGK SPARK PLUG CO., LTD.
are committed to making company-wide efforts to improve our quality assurance system,
aiming to provide safe and reliable products that ensure greater customer satisfaction.
To meet customers' diverse expectations, we also continue actively communicating our
products and service information to customers, while at the same time manufacturing
products by making the best use of the most suitable technology and our accumulated
experience as a manufacturer. Through these efforts, we will work hard to offer newvalues to society.

NGK SPARK PLUG Group CSR Report 201431

CSR > CSR Report 2014 > With Our Customers > Quality Policy and Implementation Structure

Quality Management System
Based on our Corporate Quality Policy, NGK SPARK PLUG CO., LTD.'s divisions haverespectively established management systems in conformity with the ISO9000 series or
ISO/TS16949 standards, and they are carrying out quality assurance activities.
In addition, with the aim of reinforcing our companywide quality assurance efforts, wehave established a companywide system to control and supervise product quality,
centered on our Quality Committee, which is chaired by the executive vice president andmade up of committee members such as the general managers of groups and divisions.
Under this system, the Corporate Quality Control Dept. works, in cooperation with therespective quality assurance departments, to identify and share quality-related risks froma companywide perspective, and it promotes corrective or preventive measures against
any identified risks, with the ultimate goal of providing safe and reliable products tocustomers.
Quality Management System

To instill the 'Nittoku Quality Mind,' we established
the Quality Exhibition Room
To visualize the policy of ”no compromise on quality” known
as ”Nittoku Quality Mind,” which we inherited from theMorimura-Gumi, and as a place to pass on our distinctive
ideas on quality, in February 2014 we opened the Nittoku
Quality Exhibition Room (permanently, for in-house
education) in our Komaki No. 14 Plant MONODUKURI
Education & Training Center.
We aim to hand down to the next generation our belief inletting no quality problem fester, sharing lessons learned,
causing no inconvenience to customers, and neither making
nor releasing defective products, and we aim to achieve
total quality management for outstanding quality.

General Manager,
Corporate Quality
Control Dept.

Toshiki Sawada

NGK SPARK PLUG Group CSR Report 201432

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Initiatives to Improve Quality

Standardizing our work and operations
playsan important role in supporting
total quality management (TQM). As amanufacturer, we are promoting the
manufacturing worksite SDCA
(Standardize, Do, Check & Act) activity
to stably and reliably conduct daily
management at our manufacturing
worksites. We are working to improve
the quality of our manufacturing byencouraging awareness of any
abnormalities in the worksites and on adaily basis maintaining a worksite
without muri, muda and mura(unreasonableness, waste andinconsistency) through goodcommunication.

Manufacturing worksite SDCA activity

We are endeavoring to standardize our work with the goal of
producing superior products through the participation of all
employees
In the SE Production Department, to minimize variationin the amount of silicon used in manufacturing ofelectrostatic chucks, we have established a set amount,where in the past we relied on individuals' intuition or
skill. We are also endeavoring to standardize every kindof operation from the arrangement of printing equipment
and jigs to the main task.
Through these activities, in addition to increasing theknowledge and abilities of our team members, we areaiming to instill consciousness of the quality necessary ata manufacturing worksite and a culture of kaizen(improvement) in the workplace, as well as aiming to
SE Production Dept.
produce superior products through the participation of all
NTK Ceramic Co., Ltd.
employees.

Sachihiro Murata

NGK SPARK PLUG Group CSR Report 201433

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Quality Improvement
NGK SPARK PLUG CO., LTD. is committed to quality management by promoting total
quality management (TQM) activities.
Top-down activities to embody our corporate policy in the policy management.
Daily management to standardize prescribed operations at each workplace, as well as
maintenance and improvement activities.
Bottom-up activities to foster personnel development and activate workplaces, byencouraging small groups to conduct quality and business improvement activities.

NGK SPARK PLUG Group CSR Report 201434

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Education
We provide a wide range of QC education and training programs on quality control,
management techniques, QC circle activity, quality management systems, measurement
management, etc. We also offer practical guidance and support to our employees toensure that the knowledge gained through these programs is utilized in the workplace. Aspart of our activities to enhance quality awareness, increase the motivation of ouremployees and promote quality education, we hold events including quality-related
exhibitions and lectures on quality. We also provide practical guidance to our suppliers topromote quality education and solve problems, aiming to encourage them to deliver
higher quality parts and materials by implementing continuous quality improvements.

Strengthening high-quality manufacturing throughstatistical methods
As is often the case, we draw conclusions based on intuitive
judgment in daily tasks. For example, when we add further
test equipment, we think about the following questions: Did
the result change compared with the old one? If we conduct
a breaking test, how strong will the design change make theproduct? Thus, we tend to judge the existence of problems
or changes through numerical differences.
Through the application of statistical methods learned inclassroom training, the habit of making judgments andreporting them with a reliable basis is taking hold in groupmembers. These judgments had been intuitive in the past.
Also, with the cooperation of the Corporate Quality
Control Dept., we are experimenting with incorporating
design of experiments and other statistical methods into
actual ongoing work themes. We are beginning to be able toefficiently evaluate matters whose mechanisms had notbeen clarified because parameters have wide variety andthe effects of each are complex. We are also starting to beable to quantify in numbers the degree of effect of eachindividual parameter.
In the future we expect that we can expand incorporationof deciding the direction of development, design criteria andmore by applying these methods.

Spark PlugEngineering Dept.
Spark Plug Division

Keiji Ozeki

NGK SPARK PLUG Group CSR Report 201435

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Calibration Skill Training and Company-wide Certification System
Measurement equipment is one of the key factors to produce quality products andadequate calibration skills are essential to have reliable measurement results. Therefore
we provide calibration skill training and company-wide calibration certification system as apart of our global educational backup activities.
We periodically visit overseas plants to provide calibration skills based oncompany-wide certification system. In this way, we contribute to produce globally
standardized quality products.

I recognized again the importance of measurement
control
I asked for calibration skill training because I recognizedagain the importance of measurement control in a
manufacturing manager meeting. They offer very usefulproposals which contribute to quality assurance, such asprovision of guidelines for measurement equipment control,
certification system for calibration skills, and on-site training.
We keep on making efforts to improve our manufacturing
ability with their backup activities.

General Manager
Quality Assurance
Department
NGK Spark Plug
(Shanghai) Co., Ltd.

Zhenying Yu
NQC Activity (Small Group Improvement Activity)
We are implementing Small Group Improvement Activity (QC circle activity) aimed atadvancing human resource training and workplace capacity by continually solving
problems and issues we face in daily work. We call this activity "NQC activity."
During Quality Control Month every November, the company recognizes successes
resulting from NQC activity at a companywide presentation, and the best examples are
given the President's Award. Two circles that received the award in fiscal 2013 were
evaluated particularly highly because all the members of the circles participated, they
achieved their targets in activities based on the 5 Gen principle of carefully observing theworksite, and through their activities they increased members' knowledge of kaizen andimproved communication. The 5 Gen are genba (the worksite), genbutsu (the product),genjitsu (reality), genri (principles) and gensoku (fundamental rules). In addition, at thecompany improvement practice presentation and award ceremony every June,
commendations are given to small groups implementing exceptional NQC activity in daily
operations throughout the year and overseas affiliates achieving outstanding
improvement practices.
We support NQC activity and improve quality by strengthening the organization that
promotes them, such as by creating activation teams which Certified QC Circle Trainers
etc. participate in and stimulating employees through presentation meetings and training
programs outside the company.

NGK SPARK PLUG Group CSR Report 201436

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Promoting NQC Activity (Small Group Improvement Activity) in Each Department
To activate NQC activity at each worksite,
we formed new expert committees at four
plants in fiscal 2013. These committees are
made up of a Certified QC Circle Trainer andexpert advisors (members selected fromeach division and department). In particular,
they aim to give expert advisors knowledge
and practical skills related to NQC activity
through two years of activities (as internal
workshop instructors, promoters andcommentators and in external training
courses), and after their terms thoseadvisors return to their respective worksites,
increasing the number of well-known QC
activity advisors available on a daily basis. In
this way, we are working to activate NQC
activity.
Also, in the realm of management, we aim
to create people and workplaces that canfind problems and issues and solve them on
their own and independently by linking eachdivision's administrative office with the expert
committees. Through this kind of continuous
improvement of the implementation
structure, we will work to activate NQC
activity, improve quality and put in place
people who can achieve solutions in every
area of business activities throughout thecompany.

Promotion of NQC activity by expert
advisors

I joined the expert committee as Certified QC Circle
Trainer this year
I belong to the Human Resources Dept. As Certified QC
Circle Trainer, I became a member of an NQC activity
invigoration team known as the expert committee in fiscal
2014. For administrative departments, it can be moredifficult to carry out NQC activities, such as theme selection,
than for manufacturing departments. Administrative
departments may have more trouble selecting themes,
grasping the status quo and verifying results.
However, with regard to the distinctive problems andissues facing administrative departments, I would like tocontribute to invigorating NQC activity by putting myknowledge, experiences and know-how to use andcontinually providing guidance and support using flexible
and unique thinking.

Human Resources
Dept.

Yoko KatoNGK SPARK PLUG Group CSR Report 201437

CSR > CSR Report 2014 > With Our Customers > Initiatives to Improve Quality

Support Activities Using Measuring Techniques
Measurement technique plays an important role not only in products quality assurance,
but also production equipment reliability improvement. It clearly shows items to be
improved and increase our work efficiency by quantifying various phenomena, such as a
new equipment performance, deviation from the design, and periodic maintenanceresults.
For local procurement of production equipment, overseas plants need to verify
conforming parts, and it requires proper on-site incoming inspection based on
measurement techniques. We would like to support for improving on-site incoming
inspection capability by providing training for measurement technical skills.

Encouragement of equipment maintenanceactivities using measurement techniques
Detailed root cause analysis is very difficult though we cananticipate equipment malfunction by irregular sounds orvibrations. We think data analysis based on adequate
measurement is available to know production equipment
status.
The time series analysis enables to show the level ofequipment deterioration in advance. At the headquarters
plant in Nino, data gathering using measuring techniques
has begun with the goal of efficient maintenance activities
based on condition-based maintenance (CBM).

Plant Manager
Nittoku Spark Tech
Tono Co., Ltd.

Toshiyuki
Matsusaki

NGK SPARK PLUG Group CSR Report 201438

CSR > CSR Report 2014 > With Our Customers > Communicating Information to Customers

Communicating Information to
Customers
Responding to Inquiries and Complaints
Inquiries and complaints on our products received from customers are first accepted at
our sales division. Then the quality assurance division works together with the technicaldivision to quickly respond and take necessary actions to the inquiries and complaints.
Response to Inquiries or Complaints

Information Dissemination through Websites
Our website named "Plug Studio" disseminates information on spark plugs, exhibitions at
events, motor sports, etc. Using our applicable product number searching system, users
can find a product number and the number of spark plugs applicable to the respective
type/model of automobile.
Plug Studio

Communication through Exhibitions and Events
We use opportunities provided by various exhibitions and auto races to directly
communicate with customers at the venue by displaying our products and technologies.
In doing so, we are able to keep abreast of the ever-changing needs of our customers.

Responding Product Defects
We make it a rule that any product defect we have detected and found to possibly cause
harm to customers be immediately announced to the public through our websites,
newspapers, trade journals and other media as appropriate and that we simultaneously
implement countermeasures against such defects to protect all users.

NGK SPARK PLUG Group CSR Report 201439

CSR > CSR Report 2014 > With Our Shareholders and Investors

With Our Shareholders and Investors

We value communication with ourshareholders and investors, and areworking to accelerate it. We increased
the number of briefings for individual
investors in the fiscal 2013 and held
them not only in major metropolitan
areas, but also in regional hubs. We
will continue to increase the number ofopportunities to directly explain thecompany and its policies to all ourinvestors.

Briefings for individual investors

Information Disclosure Policy
Aiming to become an enterprise capable of receiving great support and popularity
from people around the world, we strive to conduct transparent business operations
and fair information disclosure.
【 Action Guidelines】

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

Basic Philosophy
We at NGK SPARK PLUG CO., LTD. are well aware that promoting transparent and fair
information disclosure is indispensable to having all our stakeholders better understandand evaluate our business operations. To achieve this goal, in addition to meeting thelegal standards of information disclosure, we also strive to strengthen information
disclosure through various media and promptly post information on our website, with theaim of ensuring stakeholders' greater trust in our business operations.
Investor Relations

NGK SPARK PLUG Group CSR Report 201440

CSR > CSR Report 2014 > With Our Shareholders and Investors

Shareholders' Meeting
We hold our Ordinary General Shareholders'Meeting every June, at which we explain thebusiness results of the previous year to ourshareholders, who then vote on matters to
be resolved. We also answer questions
given by them directly.

the 113th general meeting of shareholders

Distribution of Financial Information in Japan and Abroad on a Timely Basis
We were posting the presentation materials that we
use at financial results information sessions only on
our Japanese website so far. From the results briefingof the fiscal 2013, we post the English version of thepresentation materials on our international website at
the same time. We are also working to disclose ourinformation in a timely manner on our day-to-day
investor relations activities both in Japan and abroad.
English presentation material

We will strive to increase the number of NGKSPARK PLUG fans.
NGK SPARK PLUG has a low profile at this moment, andwe strongly believe that our investor relations activities arevery important since many investors have interests in ourbusiness when we talk with them at briefings. Through ourvarious activities, we will strive to increase the number of
NGK SPARK PLUG fans.
Public Relations
OfficeHiromi Kitagawa
Returning Profits to Shareholders
Returning profits to our shareholders is one of the priorities on our agenda, and we aim to
maintain consistent and stable payment of dividends. Presently, we seek to achieve a
consolidated dividend payout ratio of 20% or more, and intend to continue semiannual
payment of dividends. Our dividend payment plan is based on comprehensive financial
strategies taking into consideration the following budgets; R&D expenses (as needed for
future growth), capital investment (to expand or streamline our business) and internal
reserves (for future investments). Dividend per share during fiscal year 2013 was 28 yen.

NGK SPARK PLUG Group CSR Report 201441

CSR > CSR Report 2014 > With Our SuppliersWith Our Suppliers

In May 2013, we established our CSR Procurement Guidelines and posted themon our website, and in July we published an English version. We announced it atour corporate policy conference, and carried out an investigation and analysis
using a checklist in order to understand suppliers' status regarding their CSR
initiatives.

CSR Procurement
Guidelines

Corporate policy conference

Procurement Policy
We aim to realize globally optimal procurement based our quality products principle.
To this end, we focus on strengthening cooperation with suppliers and promoting our
CSR efforts throughout our supply chain system, while at the same time striving tocarry out proper purchasing transactions when procuring materials and parts, basedon the following guidelines:【 Action Guidelines】

We conduct rational transactions based on fair, transparent, and open competition.
We select a supplier based on comprehensive assessment of its product quality,
technology, prices, deliveries, and efforts to continuously make improvements.
Aiming to become a good corporate citizen, we are engaged in business
operations complying with applicable national and international laws andregulations.
We ensure stable procurement of better quality products at a reasonable cost andan earlier delivery.
Aiming to procure more eco-friendly products, we strive to promote our green
supplier system.
Aiming to have our suppliers understand our company, we strive to establish
mutual trust with our suppliers. Recognizing that we and our suppliers can begood partners for each other, we strive to realize out mutual development.

NGK SPARK PLUG Group CSR Report 201442

CSR > CSR Report 2014 > With Our Suppliers

Basic Philosophy
It is indispensable to establish healthy partnerships with our suppliers to procure better
raw materials and parts in a more timely and stable manner. Through our supply chain
system, we work hard together with suppliers, aiming at mutual prosperity and further
strengthened mutual trust.

Promoting CSR-Oriented Procurement
We promote the following activities for suppliers and our employees respectively, for the
purpose of ensuring fair transactions with suppliers and the establishment of mutually
beneficial sound partnership with suppliers.
＜For suppliers＞
・We explain our CSR procurement guidelines on our websites.
・We actively communicate with our suppliers to explain our corporate policy throughcorporate policy conferences, etc.
・We explain our green procurement guidelines on our websites.
・We provide face-to-face assistance through diverse activities, including 5S workplace
improvement activities and seminars.

In particular, we address a wide variety of topics in seminars for our suppliers, including
quality, process control, occupational safety, the environment and CSR.
＜For our employees＞
・We hold seminars for our procurement personnel to ensure their compliance with the
Subcontract Act.

To Continuously Develop Along With Our Suppliers
Calling for changing ”from a cost center to a profit center,”our Procurement Group aims not just to engage inconventional cost management, but to build an organizationthat can closely connect NGK SPARK PLUG with suppliers
through purchasing and make proposals and value
propositions. CSR is one important element of value that acompany can offer. For this reason, last year we createdand published our CSR Procurement Guidelines. We will
promote CSR together with our suppliers, aiming to link it toeverything from mutual development to the continuous
development of society.

General Manager
Procurement Group

Hiroyuki Maeda

NGK SPARK PLUG Group CSR Report 201443

CSR > CSR Report 2014 > With Our Suppliers

Sharing Corporate Policy
We hold a corporate policy conference to ourmain suppliers, offering them an opportunity
to deepen their understanding of the present
situation of our company and our goals.
At a conference we held in May 2013, we
explained our sixth medium-term
management plan and respective
departments' policies under the plan, as wellas the direction in which we should advance.
We also announced our intention to
overcome the severe business climate. We
demanded responsible measures fromsuppliers on improving product quality,
reducing costs, promoting CSR initiatives
and more.

Improving Our Supplier Evaluation System
We already had a system in place for
evaluating our suppliers with regard toquality, deadlines and cost, but we improved
it to be more fair, impartial and open.
Furthermore, we have recognized suppliers
that received particularly excellent
evaluations at our corporate policy
conferences.

We perform fair and open evaluations.
Our suppliers are extremely varied and wide-ranging withregard to the scope of our dealings with them, type of
product and other factors, so it was not easy to produce afair and open framework. For our suppliers, the evaluation
could also be called a report card, so every day we workwith an awareness of that high level of responsibility.

Supplier Relations &Development
Procurement Group

Naoki KatoNGK SPARK PLUG Group CSR Report 201444

CSR > CSR Report 2014 > With Our Suppliers

CSR Procurement Guidelines
In May 2013, we released the NGK SPARK PLUG Group CSR Procurement Guidelines,
which are based on the Group's procurement policies and a complete picture of theGroup, including Corporate Philosophy and CSR Policy.
We are positioning the promotion of CSR as one important element of working forcontinuous growth of the supply chain as a whole. We ask that suppliers understand thisintent and put it into practice.
CSR Procurement Guidelines [484KB]
Japanese version

Green Procurement Guidelines
These guidelines explain the basic concepts of our green procurement based on ourenvironmental policies.
We reviewed the list of related chemical substances in June 2014 and released version
8.04 of the guidelines. We ask our suppliers to study the guidelines and cooperate with
our green procurement.
Green Procurement Guidelines (Japanese version only)

Certification Standards

NGK SPARK PLUG Group CSR Report 201445

CSR > CSR Report 2014 > With Our Suppliers

Green Purchasing Requirements
In the purchase of office supplies and appliance, we choose an environmental
consideration type product.
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. in terms of quality and safety.
5. Be preferably priced the same or lower than similar products (in consideration of
longevity).
Version 2 of our "Green Procurement Guidelines (In-house Use)"NGK SPARK PLUG Group CSR Report 201446

CSR > CSR Report 2014 > With Our Employees > Human Resource Policy

Human Resource Policy
Human Resource Policy
We acknowledge that employees are the most important management resources. In
the light of this, we respect the diversity and individuality of our employees andcultivate abundant human resources, striving to promote the further development of
our Group as a whole.
【 Action Guidelines】

Respecting the rights of our employees, we eliminate discrimination andharassments in employment, and avoid the use of forced labor or child labor.
We secure and foster human resources who help pass down our quality products
principle to the following generations. To this end, we provide learning
opportunities and other programs to support the career development of ouremployees.
We establish a personnel evaluation system to ensure that people with different
qualities can fully realize their own capabilities.

NGK SPARK PLUG Group CSR Report 201447

CSR > CSR Report 2014 > With Our Employees > Human Resource Policy

Basic Philosophy
Employees are the most important management resource. We respect the diversity andindividuality of our employees, aiming to cultivate a wide variety of human resources. We
also place an emphasis on offering a desirable working environment in which individual
employees are encouraged to make full use of their capabilities and potential.

To train and support the employees who will create
the future of NGK SPARK PLUG
Things are changing rapidly around our company, such as
people's values, markets, increasing influences ofdeveloping countries and so on. We, the Human Resources
Department, define our mission as "creating foundations to
produce 'diverse human resources' to support managerial
and business strategies," and we are framing plans thatallow us to create a NGK SPARK PLUG with the following
environments: [1] one that continues to develop diverse
human resources with a can-do spirit and the ambition tocreate new businesses, products, technologies andmarkets, [2] one that identifies diverse employees indomestic and overseas units so as to allow them to use
their talent and aspirations effectively, and [3] one thatspreads the values of globalism , speed and fairness andencourage employees to demonstrate their ambition andtalent.
We will take the following measures: [1] firmly establish a
new human resources system at NGK SPARK PLUG andexpand it to affiliates, [2] establish a recruiting andeducation management method to allow us to strategicallyand continuously hire and train diverse human resources,and [3] lay the foundation for training the next generation of
global managers.
We will train and support trusted employees with a can-do
spirit who can distinguish valuable corporate culture fromthat which should be changed, who never simply resign
themselves to the present situation, who make strenuous
efforts to cope with drastic changes and who have anaspiration to realize an innovation.

General Manager
Human Resources
Dept.

Masakazu MoriNGK SPARK PLUG Group CSR Report 201448

CSR > CSR Report 2014 > With Our Employees > Human Resource Policy

Establishing and Putting to Work a New Human Resources System
We began making use of our new human resources system in April 2014. This system
was established with the objectives of achieving the ideal NGK SPARK PLUG envisioned
for ten years later in our NITTOKU SHINKARON (The Evolution of NGK SPARK PLUG)
and correcting problems in our previous human resources system.
We will create a work environment where diverse human resources can grow andflourish, appropriately reward efforts to create value, and when the business situation
changes, reallocate human resources in a timely and appropriate manner.
Main human resources systems
・Occupation type, qualification andmanagerial position systems
・Wage, bonus and retirement money
systems・Annual salary system
・Rating system and objective management
system・ Continued employment system
Human Resources System Working
Group

Anticipating challenges that will change thecompany
This is a big change from our previous human resources
system, and people who can truly bring about change are
required. We have reformed the system that forms thefoundation, so now it is necessary for individual employees
to change.

Human Resources
Dept.

TsuyoshiTakahashi

NGK SPARK PLUG Group CSR Report 201449

CSR > CSR Report 2014 > With Our Employees > Respecting Diversity

Respecting Diversity

Vice President and CFO Shinji Shibagaki at
a lecture meeting for general managers andsenior managers

We held training for womenin non-managerial positions
as well. They were able tobuild networks thattranscend their positions
through group discussions,and talking directly to thecompany president, vicepresident and senior
managing officer gave themthe opportunity to deeply
understand how serious thecompany is about
promoting the active
participation of women.

We are promoting the active participationof women as a management strategy fromthe top down. First, we held training for all
managers in fiscal 2013 with the theme"Change your consciousness." We also
designated each department manager as
a leader, and they formulated action plans
and carried them out.

President and CEO Shinichi Odo at a discussion meetingwith female employees with a prospect of promotion

We aim to create a company
where all employees can play
an active role

Women Members of DIAMONDO Project

Our company has many excellent
female employees, and not making
full use of them is a waste. I want
our company to be one where all
employees can work comfortably
and play an active role.

Etsuko Otsuka (right)
Accounting and Finance Dept.

NGK SPARK PLUG Group CSR Report 201450

CSR > CSR Report 2014 > With Our Employees > Respecting Diversity

Percentages of Female Employees with a Prospectof Promotion and Managers(%)

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

Work-Life Balance
In fiscal 2013, the number of employees in paternity/maternity leave has exceeded 50,
and after the leave, almost of them returned to work.
The company offered the opportunity to the employees to spend more time nursing
children than before, by extending availability of shorter work day for child rearing beyond
the conventional period of the first grade of elementary school to the third grade.
Also, as a measure to shorten working hours, we will continue with designating
Wednesdays as "No Overtime Day," and we are encouraging the well-planned use ofyearly paid holidays and introducing a system of special “refreshment ” vacation.
(Under the refreshment vacation system, employees who have been with the company
a fixed number of years are encouraged to take three, five or 10 days of holidays.)
Number of Employees Using the Leave Schemes

NGK SPARK PLUG Group CSR Report 201451

CSR > CSR Report 2014 > With Our Employees > Respecting Diversity

Promoting the Active Participation of Women
We launched the "Diamond Project" to promote the empowerment of female employees
in June 2013 to give female employees chances to widen their sphere of activity. We are
implementing these activities from the top down with the following principles: "changing
the corporate culture," "changing consciousness" and "changing the environment."
We held a Forum for Female Employees with a Prospect of Promotion andimplemented a Program to Empower Female Employees with a Prospect of Promotion to
support female employees in building careers and stimulate their ambitions. We also held
lectures and workshops for all managerial employees to deepen their understanding ofdiversity management. Furthermore, in all departments including those of Japaneseaffiliates, department heads devised and carried out action plans that suit their own
departments. We are also expanding systems to create a workplace where female
workers derive greater satisfaction from their work.
Number of Female Workers in a Managerial Post by
Fiscal Year

Post-retirement Reemployment
In 2001, we introduced a post-retirement reemployment system, with the aim of taking
advantage of long-accumulated knowledge and expertise of retired employees and alsosatisfying their desire to stay at work.
Employment of the elderly population is an important issue for our society, as thenational pension system has been reformed, deferring the starting age of recipients, andthe demographic shift into aging society is quite rapid. We are working hard to prepare an
environment that meets the needs of older workers, our company and the worksite anduse it in a way that takes into consideration the aptitudes, motivation and abilities ofsenior employees.
Number of Retirees Reemployed under the System

NGK SPARK PLUG Group CSR Report 201452

CSR > CSR Report 2014 > With Our Employees > Respecting Diversity

Employment of the Disabled
The ratio of disabled employees at our company was 1.83% at the end of fiscal 2013. The
legally required ratio was raised to 2.0% in April 2013, and we unfortunately did not meetthat requirement.
We expanded our recruitment to target mid-career candidates in addition to new
graduates, and in addition to hiring two new graduates, we hired two mid-career workers.
We also have been conscious of the need for safety and are endeavoring to create aworkplace where they can do their jobs safely.
Percentage of Disabled Employees

NGK SPARK PLUG Group CSR Report 201453

CSR > CSR Report 2014 > With Our Employees > Human Resource Development

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

Education/Training Programs
Our education and training activities consist
mainly of OJT (on-the-job-training), throughwhich employees are trained to acquire skills
and knowledge in their normal working
situation. We also have OFF-JT (off-thejob-training), providing employees withlearning opportunities outside theirrespective workplaces. We have a wide
range of OFF-JT programs that include
training by organizational level and role toprovide necessary knowledge and skills,
product-quality education, environment andsafety education, manufacturing education,
education in global business and career
improvement support. During fiscal 2013,
6,223 employees participated in OFF-JT
programs.
In fiscal 2013, we have completelychanged our training organization to allow
employees to carry out "expected roles" ineach workplace and job in order to achieve
the ideal NGK SPARK PLUG envisioned forten years later in our NITTOKUSHINKARON (The Evolution of NGK SPARKPLUG)

Education and training

NGK SPARK PLUG Group CSR Report 2014

54

CSR > CSR Report 2014 > With Our Employees > Human Resource Development

Ability Training System Diagram (OFF-JT)

NGK SPARK PLUG Group CSR Report 201455

CSR > CSR Report 2014 > With Our Employees > Labor-Management Relations/Compliance with Labor Law

Labor-Management Relations/
Compliance with Labor Law
Labor-Management Relations
Labor-management relations should be oriented to the combined employer-employee
effort to contribute to society through the provision of good products and services. At
NGK SPARK PLUG, both labor and management understand their respective
responsibilities and strive to improve the work environment through mutual trust andcooperation.

Labor-Management Conferences
Labor-management conferences are held three to four times a year on individual
workplace and companywide bases, providing communication opportunities. These arechances to discuss various topics including the company's situation and how to improve
the labor environment, and opportunities for employees to have their opinions heard.

Reduction in Working Hours
We have a "no overtime day" once a week. On this day, labor union members andmanagement representatives patrol all workplaces to get all employees to leave at thedesignated time.

Anti-Harassment Measures
The company management and the labor union are working together to prevent any
harassment and to protect the human rights of all employees.
Work Rules explicitly prohibit all sorts of behavior that constitute harassment, and wehave an anti-harassment committee responsible for the prevention of such behavior
through the company newsletter and provide level-specific training programs.
Also, all plants have an advisor, who is designated jointly by the company management
and the labor union, to create an environment where it is easy for employees to voice
concerns. A total of eight cases of power or sexual harassment were handled in 2013.

Greeting Campaign
We have been continuing our "greeting campaign" since September 2008, encouraging
employees to say "good morning" with a smile at the start of each day and "goodbye"
when leaving work. Once a month, in the morning and after work, representatives of thelabor union and the management stand on the sidewalks at the premises to greet
employees.

NGK SPARK PLUG Group CSR Report 2014

56

CSR > CSR Report 2014 > With Our Employees > Labor-Management Relations/Compliance with Labor Law

Group Response to Domestic Labor Laws
Individual affiliates need to respond to frequently updated labor laws. Even if a single
company in our group does not comply with a law, the responsibility lies with the entire
group. Therefore, we always keep our eyes on potential risks to prevent noncompliance.
An exchange meeting is held every quarter between general managers of our affiliates,
where problems that they face are discussed and information is shared. The entire group
continues to join hands in compliance.

Deepening our own understanding and passing it
on to affiliates
We have greatly reformed our traditional human resources
system, completely changing the system, which forms afoundation for the company. Now individual employees are
required to change on their own. In fiscal 2013, to achieve
proper recognition of harassment and the management ofworking hours, we explained the basic rules and philosophy
to affiliate companies once again. Insufficient understandingof labor standards may very well lead to violations of laws
and regulations, so we are endeavoring on a daily basis todeepen our own understanding and working exhaustively toensure our affiliate companies understand as well.

Human Resources
Dept.

Kenji Takagi

Human Rights in US Employment
The United States is a melting pot; a very diverse and culturally vibrant country. Dueto this diversity, many employment laws have been enacted to protect against
discrimination and to provide equal employment opportunities to all individuals
qualified to work in the USA. The major laws that protect against discrimination are
Title VII, Pregnancy Discrimination Act, Equal Pay Act, Age Discrimination in
Employment Act, American with Disabilities Act, and The Genetic Information
Nondiscrimination Act. These, and other employment laws, assure equal employment
opportunity without regard to race, ethnicity, age, color, religion, sex, national origin,pregnancy, ancestry, sexual orientation, disability, economic circumstance, marital
status, and military or veteran status. Protections are afforded to all personnel
actions, including recruitment, evaluation, selection, promotion, transfer,compensation, benefits, training, and termination.
NGK Spark Plugs (USA), Inc. is committed to providing a professional work
environment free of discrimination. We realize this commitment and comply with thelaws mentioned above by ensuring that our processes for recruitment, retention,compensation, etc. are based solely on the requirements of the position andperformance of the individual. We provide training to all managers on interviewing
techniques, as well as what questions are legal to ask during an interview. Allquestions asked must be directly related to the position or company; no personalquestions, such as family status, children, age, or medical conditions/disability, can be
asked during any step of the recruitment process. Even resumes in the USA do notinclude personal information, other than name, address, education, work history, andprofessional affiliations. The resume and interview process is structured in such a way
to ensure the decision to hire, promote or transfer is made based on an individual’s
qualifications and fit, rather than personal characteristics.
NGK SPARK PLUG Group CSR Report 201457

CSR > CSR Report 2014 > With Our Employees > Occupational Safety and Health Basic Policy

Occupational Safety and Health
Basic Policy
Occupational Safety and Health Basic Policy
We strive for occupational safety and health as the starting point of business activities
on the basis of respect for human life and dignity.
【 Action Guidelines】

Observe laws and self-standards relating to occupational safety and health.
Reduce risks and elimination of work-related accidents through sustainableimprovement in occupational safety and health management system andperformance.
Prevent health hazards and promote the physical and mental health of employees.
Publicize this policy among all the employees, promote consciousness throughtraining and enlightenment, and expand toward the overall participation in labor
safety and health activities.

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

OSHMS
With the aim of eliminating on-the-job accidents and creating a comfortable, safe work
environment, we have established an in-house occupational safety and healthmanagement system (OSHMS). We are accredited as complying with JISHA OSHMS
Standards.
Each plant and office set safety goals and safety plans in accordance with our OSHMS
guidelines, aiming to conduct OSHM activities based on a "total involvement" principle. To
attain a step-by-step improvement of our safety status, the progress and results of such
OSHM efforts are verified by our internal safety and health auditors as well as the plantsafety and health committee and the central safety and health committee.

NGK SPARK PLUG Group CSR Report 201458

CSR > CSR Report 2014 > With Our Employees > Occupational Safety and Health Basic Policy

Safety and Health Promotion Organization

Targets & Results for Fiscal 2013 Evaluation standards achieved：○ Not achieved：×
Fiscal2013

１．Elimination ofwork-related
accident

２．Improvementof work
environment

TargetResultPromotion of skill
assessments

・Departments were behind on
devising structures andunderstanding work

Promotion of new
risk assessment(in the workplaces
concerned)

・Were able to implement in the
manufacturing departments (withsome delays).

Examination andrevision ofirregular working
procedures

・Irregular work was insufficiently
incorporated into standards.

Improvement of
the work
environment(safety and health)in workplaces

・We were mostly able toimprove the work environment,
but some workplaces using lead
did not reach the target values
when we measured the work
environment. However, we wereable to reduce the number.

Fiscal2014
Evaluation

Target×

Reinforcement ofchemical
substance control〇

Promotion of fullunderstanding of
hazard sources(workplaces
developing new
risk assessments)

×

Reinforcement ofsafety and healthpatrols (action andequipment)〇

Improvement of theworkplaceenvironment(health)NGK SPARK PLUG Group CSR Report 201459

CSR > CSR Report 2014 > With Our Employees > Occupational Safety and Health Basic Policy
Fiscal2013
TargetResultFiscal2014
Evaluation

Target・Met almost all
health targets(except for someareas).

Guidance on the
self-management andthe prevention of healthby the help of medical
examinations
３．Promotionof health・Promotion of a nosmoking policy,
exercise and specifichealth guidance.
・Holding healthlectures and healthpromoting events

Promotion ofself-management of health〇・Effective use of the
Self-Care Handbook

Self-care and line carefor mental health・Management ofovertime working
hours (less than 80
hours per month)

Workplace checks for
personnel with suspected
health problems

・Instruction throughin-house educationand company
newsletter
・Education in
OSHMS
fundamentals

Creation of an annual
education program andimplementation of
education

・Special training(organic andchemical
substances, dust,
etc.)

〇

・Education byorganizational level

Implementation of safety
and health education andtraining, use of education
through experience

・Education ofinternal inspectors,
etc.
・Safety and healthcommittee inspection
tour (monthly)
４．Enhancedof education.
training andenlightenment

Implementation of safety
and health patrols (withimportance to activities)

・Industrial physician
inspection tour
(monthly)

Promotion and establishingof pointing and calling〇・Safety and healthpatrols focusing on
behavior (monthly)and other workplaceinspection tour
activities

Reading over of thesafety and health rules
and check in workplaces

・Reading out loudsafety and healthrules(four times permonth or more)
・Reading out loudsafety and healthrules and inspecting
the workplace(implementation rate
100 percent)〇Spread of the concept of
new risk assessment,
circulation of hazard source
information (workplaces
developing new risk
assessments)

Implementation oftroubleshooting skill
evaluation and, as required,risk predictionNGK SPARK PLUG Group CSR Report 201460

CSR > CSR Report 2014 > With Our Employees > Occupational Safety Activities

Occupational Safety Activities

We provide simulation-based safety training with equipment that allows trainees
to experience the terror of getting caught in moving equipment and the imprtanceof pointing and calling methods.
In fiscal 2013, we additionally installed new equipment so that trainees canlearn about the other types of dangers that trainees can learn about the othertypes of dangers. We also established a risk prediction training space to remind of
hidden dangers by showing dummies with unsafe position that may lead to
accidents in worksites.

Simulation of being caught in amachine

Risk prediction training with dummies

Keep colleagues from dangers and create a safe
workplace
I always say the above
words to trainees in oursafety training. Throughour training, we expect all
members to acquire akeen sense of hidden
dangers and risks in their
State of Education
worksites and to findsolutions to create safe work environments.

MONODUKURI Ability
Enhancement Dept.

Junichi Tanabe

NGK SPARK PLUG Group CSR Report 2014

61

CSR > CSR Report 2014 > With Our Employees > Occupational Safety Activities

Elimination of Occupational Accidents
In fiscal 2013, we achieved zero accidents at the Headquarters Plant for the first time in
13 years and at the Ise Plant for the third year in a row. The total frequency rate fell to
1.25 from 1.49, and the results of labor and management's joint safety and healthactivities are becoming apparent little by little.
However, more than half of accidents that occurred were due to mishandling during
troubleshooting of equipment, and preventing equipment accidents, which tend to be
major, is an issue. That is why in fiscal 2014, we have set the goals of promoting new risk
assessment, carrying out on-the-spot Kiken-Yochi (risk prediction) and entrenching theuse of pointing and calling to advance our accident prevention activities.
Frequency Rate of Accidents

Enriching Education and AwarenessWe are working to stimulate everyday safety and health activities in the workplace bycarrying out safety and health education appropriate to each organizational level,
including new employees, third-year employees, leaders, subsection chiefs andmanagers.
We distribute "the Handbook for Safety and Health Management" to all employees in
the workplace as a daily activity tool and ensure that each employee takes safety action
as a member for creating a safe environment at NGK SPARK PLUG. Supervisors areactively managing safety and health in the workplace through such activities as workplacepatrols, Kiken-Yochi (risk prediction) training and sharing examples of Hiyari-Hatto (nearmisses). The status of these daily workplace activities is confirmed through internal audits
and other means.
The Safety and Health Committee contributes to building safe and secure workplaces
through conducting inspection tours of the other departments and equipment, andpointing out issues that are difficult to notice through voluntary inspections by one's own
department, making use of the merits of cross-departmental activities.

NGK SPARK PLUG Group CSR Report 2014

62

CSR > CSR Report 2014 > With Our Employees > Occupational Safety Activities

Safety and Health Committee Activities with Workers in the Workplace
As one activity to create a safe and secure workplace, the Safety and Health Committee
conducts workplace inspection tours. Committee members from other departments visit
each workplace and carry out improvement activities such as exposing danger areas,taking permanent countermeasures and reexamining health management. Inspection
tours by committee members from other departments allow each department to share its
initiatives and culture and raise the consciousness of occupational safety and health.
Main inspection items
Exposing hazards
Installation of protective covers
Installation of area sensors
Harmful substance exposure prevention
Status of local exhaust ventilation
installation
Work environment checking
Implementing monthly safety and healthinspection tours conducted jointly by laborand management

We conduct inspection tours to help form a safety
cultureCommittee members wearing green vests conduct
inspection tours to increase safety consciousness. During
the tours, committee members not only point out problem
areas, they also listen to employees' concerns and thencooperate with employees to find solutions.

Environment and
Safety Management
Dept.

MakotoTagahara

NGK SPARK PLUG Group CSR Report 2014

63

CSR > CSR Report 2014 > With Our Employees > Occupational Safety Activities

Improvement of Working Environment
We conduct working environment measurements in accordance with the Industrial Safety
and Health Act, targeting workplaces that handle chemical substances (organic solventsand specified chemical substances) and workplaces subject to significant dust pollution or
severe noise. Plants and operational sites that have been classified in the second or third
management category are especially encouraged to implement effective solutions so thatthey can be reclassified in the first management category. We also take measures toprevent cases of heat stroke in the summer by measuring the WBGT (Wet-Bulb Globe
Temperature used as a heat index) in hot workplaces, encouraging an adequate intake ofwater and salt, providing cooling gear and the like, holding seminars on preventing heatstroke, and installing oral rehydration solution vending machines.
In our offices, we measure the level of lighting and CO 2 concentrations to ensure thatthe work environment is always acceptable. In winter, we install humidifiers in our offices
to help prevent the spread of colds and influenza.

NGK SPARK PLUG Group CSR Report 201464

CSR > CSR Report 2014 > With Our Employees > Health Promotion

Health Promotion
Health Promotion
Our industrial physicians, general practitioners and public health nurses follow up with
employees who have abnormal results in their health checkups and refer them to medical
institutions when necessary. These coordinated efforts allow employees to maintain andimprove their own health.
We also include health information in the company newsletter to raise employees'
health consciousness and promote self-management of health.

Health Checkups
Our industrial physicians, general practitioners and public health nurses follow up with
employees who have abnormal results in their health checkups and refer them to medical
institutions when necessary. These coordinated efforts allow employees to maintain andimprove their own health.
We include health information in the company newsletter every month to raise
employees' health consciousness and promote self-management of health.

Strengthening Mental Health Care
We arrange in-house and external training
programs for managers in observing
workers' mental health. We also provide
employees with a Self-Care Handbook andencourage them to use the stress checksheet in the handbook to increase theirawareness of the importance of self-care.
We hold in-house lectures to teach about
disease prevention and self-healthmanagement. We have also established ahotline that employees can call forcounseling when they are worried about theirmental state.

The Self-Care Handbook(Japanese only)

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

NGK SPARK PLUG Group CSR Report 2014

65

CSR > CSR Report 2014 > With Local Communities and International SocietyWith Local Communities andInternational Society

As a company involved in the automobile industry, NGK Spark Plug (Shanghai)Co., Ltd. wants to reduce the number of traffic accidents and promote awarenessof environmental issues. Based on these desires, our employees visited schools
for children of migrant workers and taught classes in traffic safety andenvironmental conservation. Hundreds of students at five schools took theclasses.

During class

We are continuing our activities to ensure thesafety of children

GeneralAdministration
Dept., NGK Spark
Plug (Shanghai)Co., Ltd.

Donghui Jiang

In 2013, we began traffic
safety and environmental
conservation education at
schools for children of
migrant workers. We expect
children to become more
careful about traffic safety
and to learn the importanceof environmental
After classconservation. We increased
the number of schools by two in 2014 and when they havetime left over, our staff tries to work as crossing guards
near the schools and make sure the children return homesafely.

NGK SPARK PLUG Group CSR Report 201466

CSR > CSR Report 2014 > With Local Communities and International Society

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

We focus on the following activities:
・Activities closely related to our business fields and also to local communities
・Activities that respect the cultures of individual countries and local communities,
as well as activities that contribute to society such as traffic safety education
programs
・Activities that contribute to the next generation society, focusing on
environmental conservation, science, and education, as well as cultures to bebequeathed to the next generation, etc.
We strive to create a corporate culture that encourages executives and employees
to participate together in social contribution activities as a social citizen. We also
respect and support their active involvement in society.

Expanding our Locally Rooted Philanthropic Activities both in Japan and Abroad

NGK SPARK PLUG CO.,LTD.
Held a musical event andinvited families displaced in
the 2011 Great East Japan
Earthquake and currently
living in Nagoya, as well as
children from the local
areas.

NGK SPARK PLUG CO.,LTD.
Komaki Plant

NGK SPARK PLUG CO.,LTD.
Ise Plant

Obtained the naming rights
to the pedestrian bridge infront of the plant andnamed it Nittoku
Iwasakihara Omoiyari(Compassion) Pedestrian
Bridge in the hope of
preventing accidents.

Received students on social
studies field trips fromneighboring elementary
schools, gave them an
overview of the plant andshowed them the
manufacturing process of
the knock sensors.

NGK SPARK PLUG Group CSR Report 201467

CSR > CSR Report 2014 > With Local Communities and International Society

NGK SPARK PLUG CO.,LTD.
Miyanojo Plant
At a tag rugby tournament
aimed at elementary school
students in the town, held arugby school put on bysome of the rugby teammembers.

NGK SPARK PLUG CO.,LTD.
Komaki Plant
As members of a company
involved in the automobile
industry, we regularly standin the street and hold up
placards encouraging
drivers and pedestrians topractice traffic safety.

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

NGK Spark Plugs SA (Pty)
Ltd.

Donated food and drinks topeople affected by flooding
due to Hurricane Ingrid and
Hurricane Manuel.

Because inadequacy of theeducational infrastructure isa cause of unemployment
and poverty in South Africa,
we are investing in
education and training
programs.

NGK Spark Plugs
Malaysia Berhad.

NGK Spark Plugs (UK)Ltd.

Employees regularly
engage in cleaning tomaintain the environment
around the company andthe plant.

Provide clothing andproducts to a Motocross
Challenge Project that
supports young riders.

NGK SPARK PLUG Group CSR Report 2014

68

CSR > CSR Report 2014 > For Environmental Protection > Eco Vision 2015

Eco Vision 2015
Environmental Policy
We positively promote actions for environmental conservation through all businessactivities to contribute to construction of a sustainable society with the participation of
everyone concerned.
【 Action Guidelines】

Environmental management： We will abide by all laws, regulations, protocols, andvoluntary standards relating to environmental conservation to prevent
environmental pollution. We also aim to manage both environmental conservation
and business growth by continually trying to enhance our environment
management system (EMS) and environmental performance from a global point ofview.
Business operation： We will promote environmentally friendly business activity tocontribute to prevention of global warming, resource recycling, and biodiversity
conservation throughout the entire life cycle of our products from procurement of
the materials to disposal.
Cooperation with society： We will try to disclose information and to enhancecommunication for improving the trust of our stakeholders and deepening
cooperation with society. We also try to enhance environmental consciousness by
positively enforcing participation of all the employees in environmental
conservation activities.

Basic Philosophy
Environmental issues are a common challenge for all mankind. Every member of the
NGK SPARK PLUG Group will work towards reducing environmental burdens from ourbusiness activities as much as possible and developing and providing products andtechnologies that contribute to improving the environment. We will also endeavor tocommunicate in greater depth with our stakeholders including our local communities sothat we may all work together to contribute to creating a sustainable society.

NGK SPARK PLUG Group CSR Report 2014

69

CSR > CSR Report 2014 > For Environmental Protection > Eco Vision 2015

Environmental Action Plan
Environmental Action Plan
Item

Environmental Management

Fiscal 2015 Target

Promotion of globally unitedactions

Formulation of global ecological vision.

Promotion of environmental
activities relating to corporate
management

Transparentization of energy and waste costand construction of system to promote actions
for reducing the costs

Reduction of CO 2 emissions

Emissions: down 10% from 2007
Per unit production: down 8% from 2007

Reduction of disposal ofwastes and valuable
materials

Per unit production: down 30% from 2007

Reduction of water use

Per unit production: down 8% from 2007

Reduction in PRTR
emissions

Emissions: down 80% from 2007

Development ofenvironmentally friendly
products

Expansion of LCA to all the company’s
operation sites

Enhancement of the
management of chemicalmaterials

Construction of a management system on
chemical materials including supply chains

Promotion of green
procurement

Expansion of the green supplier system

Recycling of post-consumer
products

Establishment of recycling technology for
products and packaging materials

Reduction of CO 2 emissions
in physical distribution

Domestic distribution energy per unit
production: down 8% from 2007

Environmentally friendly
sales activities

Promotion of environmentally friendly sales
activities

Improvement of
disclosing information

Improvement of disclosing global
environmental information

Enhancement ofcommunication

Enhancement of communication with
communities

Enhancement of social
contribution

Enhancement of social contribution tocommunities

Enhancement of actions forbiodiversity preservation

Enhancement of actions for biodiversity
preservation

Enhancement ofenvironmental
consciousness

Enhancement of environmental education

Business Activities

Social Cooperation2013 Targets and Results [126MB]NGK SPARK PLUG Group CSR Report 201470

CSR > CSR Report 2014 > For Environmental Protection > Environmental Burdens from Business Activities

Environmental Burdensfrom Business Activities
Environmental Burdens from Business Activities

NGK SPARK PLUG Group CSR Report 201471

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Environmental Management
Basic Philosophy
Our environmental management system, operating on the environmental policy shared by
the entire Group, ensures systematic and effective environmental preservation activities.
Under this system, all Group companies strive to achieve the Eco Vision.
The status of system operation is confirmed through internal audits. At the same time,
the central and regional environment committees check progress towards achieving ourgoals and endorse challenges for each group, division, region, and department tofacilitate continuous improvement.
Environmental Activity Promotion Organization

The Establishment Status of our Environmental Management System
We received ISO 14001 consolidated certification for NGK SPARK PLUG CO., LTD. and
10 domestic affiliates.
Overseas group companies are also undergoing the ISO 14001 certification process. In
fiscal 2013, Changshu NGK Spark Plug Co., Ltd., obtained the certification. As of the endof fiscal 2013, 16 overseas Group companies are ISO 14001 certified. As a result, 98% of
the entire worldwide Group employee body works at ISO-14001 certified sites.
ISO 14001 Certified Locations [80MB]NGK SPARK PLUG Group CSR Report 201472

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Having obtained the ISO 14001
certification, we will work to makeour company sustainable
Beginning in September 2013, webegan our preparations with the
Administration Department as thecontact point. At the end of March 2014
we passed the inspection by theexamining body and were able toobtain the ISO 14001 certification. Thisis a foundation for corporate
development and a symbol of us raising
the level of our environmental
management, so it was a very
important and worthwhile activity.
I believe that through moresustainable management activities,
Changshu NGK Spark Plug Co., Ltd.
will develop and thrive more and more.

Administration Department
Changshu NGK Spark Plug Co., Ltd.

Min Dai (third from left in the front row)

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

PCB Control
In June 2013, 90 percent of the waste material containing PCBs being stored at the
Komaki Plant was properly disposed of. The remaining 10 percent at the Komaki Plant
and the waste material containing PCBs being stored at the Headquarters Plant andNittoku Seisakusho Co., Ltd., will continue to be carefully stored and controlled.

On-site Confirmation of Waste Material Treatment
We regularly visit our waste disposers to confirm that consigned waste materials arebeing processed in accordance with our agreement. In fiscal 2013, we visited 41
companies.

Preventing Chemical Leaks
To avoid the pollution of soil or water from chemical leaks, we take various measures at
our facilities including double-layering storage tanks to prevent leakage and running pipes
aboveground for prompt detection of leaks, and conduct regular inspections based on the
Water Pollution Control Act. In addition to equipment aspects, we will also simultaneously
enhance the operational and management aspects of our chemical substance handling.

NGK SPARK PLUG Group CSR Report 201473

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Drills for Emergency Situations
We hold regular drills for emergency
situations to prepare for unforeseen
accidents, etc. Each department identifies
potential environmental accidents to prevent
associated adverse environmental impacts.
In fiscal 2013, we held drills based on the
scenarios of waste liquid leaking from drums
and chemicals leaking during a platingprocess.
A waste liquid leak scenario drill

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

Compliance Status
To ensure compliance with environmental laws and regulations as well as agreementswith local municipalities, etc., we set stringent voluntary standards to prevent violations
and complaints.
In fiscal 2013, in Japan, there were three cases of requests for noise-related
improvement. These cases were promptly dealt with to prevent recurrence.
There were no violations of regulations at our overseas production bases in fiscal 2013.
Data on Air, Water Quality, Noise and Vibration [397KB]
Numbers of Violations and Complaints(cases)Violations

Fiscal year

2011

2012

Complaints
2013

2011

2012

2013

NGK SPARK PLUG CO.,LTD.

0

1

0

3

2

0

Affiliates (Domestic)

1

1

0

1

1

0

Affiliates (Overseas)

－

1

0

－

－

0

NGK SPARK PLUG Group CSR Report 201474

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Handling Violations and Complaints in Fiscal 2013
Classification

Plant/Company

Situation

Countermeasures

Complaints

NGK SPARK PLUG
CO., LTD.
Komaki Plant

Noise occurred after we installed
equipment on the west side of the No. 13
Plant and we received a request for
improvement.

We installedsoundproof walls tosurround the source ofthe noise.

Complaints

NGK SPARK PLUG
CO., LTD.
Komaki Plant

Noise occurred after we installed
equipment on the north side of the No. 14
Plant and we received a request for
improvement.

We installedsoundproof walls tosurround the source ofthe noise.

Complaints

NGK SPARK PLUG
CO., LTD.
Komaki Plant

Noise occurred because of an equipment
malfunction on the rooftop of the researchbuilding and we received a request for
improvement.

We replaced out all themalfunctioning parts inthe equipment causing
the problem.

Environmental Accounting
What is important in promoting environmental management is to gain a grasp of the costs
and effectiveness of environmental preservation activities. We have been adopting
environmental accounting since 1999, and in 2003 the accounting scope was expanded
to include the entire Group.
Our environmental conservation costs were 10,877 million yen on a non-consolidated
basis, and 11,711 million yen for the Group, an increase of 13.4% over the previous fiscal
year. The economic benefit associated with environmental conservation activities totaled
253 million yen on a non-consolidated basis.
Environmental Conservation Costs and Economic
Benefits (non-consolidated)

NGK SPARK PLUG Group CSR Report 201475

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Environmental Conservation Costs (Group)

Environmental Accounting [116KB]
Eco-efficiency
We calculate eco-efficiency by determining net sales per unit of CO 2 emissions andgenerated waste, and endeavor to improve it.
Fiscal 2013 saw an increase in both the CO 2 index and the waste index compared tothe previous fiscal year.
Eco-efficiency (Group)

NGK SPARK PLUG Group CSR Report 201476

CSR > CSR Report 2014 > For Environmental Protection > Environmental Management

Environmental Education
Environmental education is conducted toraise the employees' environmental
awareness. In fiscal 2013, courses on thebasics of environmental preservation,
environmental burden calculation methods,
and the environment management systemwere held a total of 61 times in all regions,and a total of 920 people attended courses.
Environmental education will be continued
after fiscal 2014 to improve the overall levelof the environmental consciousness of theGroup employees.

Environmental education

I would like to fulfill my social responsibility
through environmental activities
My environmental consciousness so far had been limited totrying not to create garbage. To stay in business, acompany makes profits its top priority, but I have been able
to gain a new understanding of how environmental activities
are an important factor from the standpoints of both making
a regional contribution and fulfilling a social responsibility.
As one individual participating in business andorganizational activities, I would like environmental activities
to be part of my contribution and self-actualization as amember of society.

General Affairs Dept.
Ceramic Sensor Co.,Ltd.

TsuyoshiMatsuyamaSupport for Suppliers
We offer our suppliers environmental education and support for establishingenvironmental management systems to acquire a third party certification. So far there
have been applications for assistance from 42 companies, and 38 of them have obtained
ISO 14001 or Eco-Action 21 certification. We continue to provide assistance to four
companies configuring environmental management systems.
Environmental Management Classes Held
Topic

No. of Companies Attending

No. of People Attending

ISO 14001

8

9

Eco-Action 21

557

EMS Third-Party Certification Support Implementation Result
Topic
Eco-Action 21

No. of Companies Attending
4

NGK SPARK PLUG Group CSR Report 2014

77

CSR > CSR Report 2014 > For Environmental Protection > Products

Products
Basic Philosophy
The NGK SPARK PLUG Group aims to contribute to improving the global environment
through its products by making efforts to reduce the environmental burden throughout the
lifecycle of its products, from raw material procurement to product disposal.
Aside from efforts to reduce CO 2 emissions and waste during the manufacturing anddistribution processes, we are also endeavoring to produce environmentally friendly
products by controlling the amount of energy involved in using and disposing of the
product by customers and ensuring that they do not contain substances of environmental
concern.

Product Assessment
To reduce the environmental burden from procuring of raw materials and using anddisposing of products, it is important to predict the environmental impact at the design
stage, and to take prompt countermeasures when any negative impact is foreseen. To
ensure this, we conduct product assessments when we develop new products or change
the specifications of existing products.
During a product assessment, the existence of substances of environmental concern,
the amount of energy used, etc. are confirmed at each of the design,
manufacturing/distribution, use, and disposal stages. If the assessment determines that
there is a significant environmental impact, countermeasures will be taken before
development is continued.

Reducing Environmental Burden throughout the Lifecycle
To reduce the environmental burden throughout the entire lifecycle of a product, we
conduct an LCA (life cycle assessment) on our key products.
LCA is a method of providing an objective assessment on the impact on global
warming and resource depletion throughout the entire lifecycle of a product.
In fiscal 2013, we completed LCAs for model products in each of our divisions. In the
future, we intend to review our product assessment framework so as to better reflectassessment results in product designs and to promote consideration for the environment
throughout the product lifecycle.

NGK SPARK PLUG Group CSR Report 201478

CSR > CSR Report 2014 > For Environmental Protection > Products

Developing Environmentally Friendly Products

Using a first-of-its-kind central
electrodes containing ruthenium
and an oval shaped external
electrodes with protruding platinum
chip, this spark plug achieves
outstanding ignitability and low fuelconsumption. It is anext-generation premium plug withoutstanding overall performance,
including environmental
performance.

Through outstanding ignitability andfuel efficiency, it achieves a 2.2 percent
improvement in fuel efficiency
compared with conventional plugs evenin the new standard JC08 mode. In
addition, it uses 1.9 percent lessgasoline than conventional plugs when
idling at stoplights or when stuck intraffic.

Premium RX Spark Plugs reduce CO 2 emissions and are environmentallyfriendly.
Compared to conventional spark plugs, they reduce CO 2 emissions by theamount two Japanese beech trees would absorb in a year.
※Basis for calculation: Driving 5,000 km per year/ carbon dioxide emission factor
2.31 kg- CO 2 / L gasoline (Environmental Agency’s “Report on Survey ofCarbon Dioxide Emissions”)/ amount of CO 2 absorbed by a Japanese beech
tree in a year 11 kg CO 2 / year (calculated by the Forestry and Forest Products
Research Institute).

NGK SPARK PLUG Group CSR Report 2014

79

CSR > CSR Report 2014 > For Environmental Protection > Substances of Environmental Concern

Substances of Environmental Concern
Basic Philosophy
We have a three-step management system for handling substances of environmental
concern : 1. Answering requests from customers, 2. Handling within the Group, and
3. Procurement from suppliers.
Naturally we ensure compliance with laws and fulfill customer requests. More than that,
we aim to reduce the use and emission of substances of environmental concern so as tominimize their effect on the environment and human health.

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

Handling within the GroupWe conduct non-containment management for products and control the use of certain
substances of environmental concern in our plants.
Soundly managing chemical to comply with the international regulations ofdifferent countries
To satisfy customer requests and regulation such as the ELV Directive, RoHS Directive
and REACH Regulation of the EU, we assign hazard ranks to substances ofenvironmental concern. With handling standards for each rank, we carefully manage
non-containment and reduce their use.
Management System

NGK SPARK PLUG Group CSR Report 201480

CSR > CSR Report 2014 > For Environmental Protection > Substances of Environmental Concern

Hazard Rank
Hazard rank

Handling standard

Substances covered

Prohibited substances

Use is prohibited.

Substances prohibited from use or strongly
restricted by regulations.

Restricted substances

Safer substitutes will be sought,
while making efforts to reduce theuse of current substances.

Hazard level and toxicity are equivalent toprohibited substances, but an immediatechangeover is impossible due to its special
characteristics.

Monitored substances

Supplies need to be examined tofind existence/non-existence of
applicable substances.

Those not prohibited or restricted but that
require monitoring.

Incorporating regulations and customer desires
into our work plans
We are incorporating within our department information on
regulations from the Environment and Safety Management
Department and requests from customers related toregulated substances to help configure plans for making
environmentally friendly products.

Engineering Dept.1
Semiconductor Div.

Keiji Sekido
Managing use in plants
Our plants aim to reduce emissions of PRTR substances. Eco Vision 2015 aims foremission reduction of 80% from 2007 (43 tons or less).
Emission Volume of PRTR Substances(non-consolidated)

NGK SPARK PLUG Group CSR Report 201481

CSR > CSR Report 2014 > For Environmental Protection > Substances of Environmental Concern

Emission Volumes of PRTR Substances (group)

PRTR data for Each Business Site [98KB]
Procurement from Suppliers
To manage chemical substances contained in products
appropriately, it is imperative that we gain the cooperation of
our suppliers. For this reason, we request in our Green
Procurement Guidelines that our suppliers not use
substances of environmental concern banned by NGKSPARK PLUG.

Green Procurement
Guidelines(Japanese Only)
The green supplier system
Under this system, we designate suppliers who meet our system and material standards
as Green Suppliers and given them priority in our order placements.
Certification standards

NGK SPARK PLUG Group CSR Report 201482

CSR > CSR Report 2014 > For Environmental Protection > Global Warming

Global Warming

Work began at the Nittoku Spark Tech Tono Co., Ltd. Nino Headquarters Plant inApril 2014. This plant was designed to be energy-efficient, under the concept "aplant that is friendly to people and the environment." We incorporated into thedesign measures to benefit the environment and save energy including adopting
a monitor roof that lets light in while allowing heat to escape, reducing theelectricity used in air conditioning by introducing a vaporization-type blower andreducing the load on indoor air conditioners by using outside air for dust collection
and venting. It also leases its rooftop for the installation of mega solar panels andhas other features that take the environment into consideration.

Making a factory friendly to people and theenvironment

Production Support
Engineering Dept.

Yuki Morishita

In the past when we created environmentally friendly
facilities, it often resulted in complex systems, placing aburden on employees. This time we chose equipment
and systems that are easy for employees to maintain,
aiming for both energy efficiency and ease ofmaintenance.

Basic Philosophy
Major climate change could hinder the establishment of a sustainable society. To
contribute to the alleviation of climate change, Eco Vision 2015 sets CO 2 emission
reduction targets for long-term efforts led by the Energy Conservation Promotion Office.

Meeting Our Target for Reducing CO 2 Emissions
In fiscal 2013, our CO 2 emissions figure was 173,500 tons, meeting our fiscal 2013 targetof 182,000 tons. The target was attained through energy transformation in the
manufacturing process, updating of facilities (for energy efficiency) and achieving anenergy-savings effect by revising our manufacturing conditions.

NGK SPARK PLUG Group CSR Report 201483

CSR > CSR Report 2014 > For Environmental Protection > Global Warming

Transition of Emission Volume of Energy-Origin CO 2
(Offices and Plants)

Trend in CO 2 Emissions

Energy Conservation during Transportation
As a Specified Consigner designated under the Act on the Rational Use of Energy, we
endeavor to reduce CO 2 emissions during transportation. In fiscal 2013, our energy use
intensity was 0.404 kL/100 million yen, which fell below the target of 0.417 kL/100 million
yen.
This is attributable to Transportation Department measures including reducing
packaging weight by revising package shapes and methods and saving fuel through theuse of trucks appropriate to the load.
Transition of CO 2 Emissions as Consigner※Includes portion outsourced to freight carriers
NGK SPARK PLUG Group CSR Report 201484

CSR > CSR Report 2014 > For Environmental Protection > Global Warming

Energy Conservation in the Office
We implement daily energy-saving measures in our workplaces, including turning off
lights and computers during breaks and keeping office air conditioning at moderate levels,
28ºC in summer and 20ºC in winter, to which we adjust by dressing lightly or adding
layers of clothing.
We are also creating green curtains, installing arched sunshades and thermallyinsulating the outdoor units of air conditioners to reduce power consumption for air
conditioning in the summer.

Use of Natural Energy
We promote the use of natural energy.
We installed three solar power generation units and one solar water heater at our
Headquarters Factory. The Komaki Plant has a large-scale solar power generator unitthat can generate a maximum of 107 kW of electricity, and small hydro-electric power
equipment. In fiscal 2013, we generated a total of 190,000 kWh, equivalent to a reductionof 62 tons of CO 2 .

NGK SPARK PLUG Group CSR Report 201485

CSR > CSR Report 2014 > For Environmental Protection > Waste

Waste
Basic Philosophy
The NGK SPARK PLUG Group works to reduce the volume of waste generated, and torecycle what is generated.

Trends in Waste Generated
In fiscal 2013, the waste intensity was 0.044 tons/million yen. By reducing the amount ofceramic sludge produced in our manufacturing process and increasing manufacturing
process yield, we have lowered the waste intensity 55% compared with the fiscal 2007
level.
Trends in Volume of Waste Generated

Volumes of Waste Generated at Each Business Site [165KB]NGK SPARK PLUG Group CSR Report 201486

CSR > CSR Report 2014 > For Environmental Protection > Water Resource

Water Resource
Basic Philosophy
The NGK SPARK PLUG Group recognizes that water is an important resource, and ismaking efforts to reduce the volume of tap water and well water used in our businessactivities.

Reducing the Amounts of Tap and Well Water Used
In fiscal 2013, the water use intensity was 5.35 m 3 /million yen. In the manufacturing
process, we conserved water by using recycled water, adjusting the number of units
operating and changing manufacturing conditions, achieving a 29% improvement over the
fiscal 2007 level.
Trends in Volume of Tap Water/Well Water UsedNGK SPARK PLUG Group CSR Report 201487

CSR > CSR Report 2014 > For Environmental Protection > Environmental Communication

Environmental Communication
Basic Philosophy
For The NGK SPARK PLUG Group to continue its business operations, it is essential to
improve our coordination with local communities and build trust with society. We feel thatthe best way to build this trust is to provide information on the Group's environmental
activities, and we are endeavoring to disclose information in an accurate and easy-tounderstand way to improve communication.

Observing Environmental Activities
We accept plant tours for observation of our environmental efforts and facilities. A deeper
understanding of our Group's activities and better communication are achieved by seeing
our facilities firsthand and engaging in question and answer sessions. In fiscal 2013, we
held nine tours and welcomed 301 visitors at our plants.

Environmental Meeting
We host environmental meetings with local residents as a venue for communication. At
these meetings, we explain our daily environmental activities as well as hear opinions andcomments from participants on how we can improve things. In fiscal 2013, we hosted
seven such meetings, with a total of 18 participants.

Local Clean-up Activities
We regularly hold clean-up activities to preserve the local environment. We also continue
to participate in beautifying activities hosted by local municipalities, etc. In fiscal 2013, a
total of 908 people participated in such activities.

Clean-up activity (Komaki Plant)

Clean-up activity (Ise Plant)

Participation in clean-up activities by each business site [87KB]NGK SPARK PLUG Group CSR Report 201488

CSR > CSR Report 2014 > For Environmental Protection > Environmental Communication

Conservation of Biodiversity
The preservation of biodiversity is becoming increasingly
important around the world. For the NGK SPARK PLUG
Group as well, it is one of our environmental themes asimportant as the recycling of resources and global warming
control. In April 2013, we published the Biodiversity Action
Guidelines, which indicate our policy and action plan
regarding biodiversity. The Guidelines have been drawn up
to contribute to preserving biodiversity throughenvironmentally responsible actions, including conserving
energy and resources and reducing the output ofenvironmental burdens throughout the product lifecycle, inconsideration of the possible impact of our businessactivities on biodiversity.
Based on these Guidelines, we are continuing to carry out
environmental activities to save energy and natural
resources, conscious of their connection to preserving
biodiversity.

Biodiversity Action
Guidelines(Japanese Only)NGK SPARK PLUG Group CSR Report 201489

CSR > CSR Report 2014 > Third-Party Review

Third-Party Review
Third-Party Review

Mr. Tomohiro Tokura
Verification Specialist
Sustainability Service Division
SGS Japan Inc.
Fiscal 2013, which is the fiscal year covered by this report, is the first year for the 2nd
SHINKA (Renovating) phase of the long-term management plan for the organization –NITTOKU SHINKARON (The Evolution of NGK SPARK PLUG).
In the Message from the President, some information was provided on the initiatives infiscal 2014 leading to the vision of what NGK SPARK PLUG CO., LTD. should be in 2020
as a distinguished manufacturing company, a highly profitable company, a progressive
company, and a personnel “assets” company. Although some of these initiatives werementioned, notably “responding to telecommunications products through a fablessbusiness model,” “solid oxide fuel cell (SOFC)-related development” and “participating indevelopment of next-generation vehicles,” it was difficult to understand the specificrelevance to the report, including the online version. I think that the overall cohesion of
the report would be strengthened by providing detailed information about content that is
mentioned in the Message from the President in the body of the report after the Message
from the President.
Moreover, in the Message from the President for fiscal 2012’s report, content that
included “business reorganization and optimal resource deployment” and “intensifying ourefforts to develop new products with the SOFC Project playing a central role” wasreported as being initiatives for fiscal 2013 – the inaugural year of the 2nd SHINKA(Renovating) phase. Although I confirmed in our interview that these particulars of thereport are currently under implementation so have yet to reach a stage at which they canbe reported, I believe that the report needs to show more consideration to stakeholders
by being more aware of continuity in content to enable an assessment of the status ofprogress relating to the content of the report in the previous fiscal year.
A strong awareness of the risks accompanying compliance and business continuity
was communicated from the content of Promotion of CSR Management in the Message
from the President. In relation to compliance, initiatives for fostering a better workplace
were mentioned, and I confirmed in our interview that various concrete measures havebeen implemented. Moreover, in relation to business continuity plans, in addition to the
response to large-scale disasters in the report, I confirmed that measures to prevent
epidemics within the organization due to new infectious diseases have been put in place
and that the preparation of themes for other business continuity risks is scheduled for thecurrent fiscal year. A more detailed activity report on these measures and challenges thatthe organization focuses on is desirable and is expected in the future.
This year’s report covered targets and achievements regarding the areas that the NGKSPARK PLUG Group needs to address in its CSR activities as “CSR Promotion Activities
Targets,” making it easy to understand the challenges and overall shape of theorganization’s CSR activities. In addition, each of the detailed reports related to the digest
NGK SPARK PLUG Group CSR Report 201490

CSR > CSR Report 2014 > Third-Party Review

version were complemented by publication of the online links, so I can give a high rating
to efforts on information disclosure.
I can imagine that for the NGK SPARK PLUG Group, which has a high proportion of its
sites, employees, and sales outside Japan, there are also risks that are inherent at its
overseas sites in proportion to business volume. I also think that there would be risks that
accompany communications with headquarters and challenges due to culturaldifferences.
Regarding initiatives in the NGK SPARK PLUG Group aimed at becoming a company
with valuable human resources, I confirmed in our interview that responding to thesechallenges has been considered and that the risks accompanying overseas sites havebeen included in the preparation of themes for compliance and business continuity risks.
Nevertheless, these initiatives for overseas sites do not seem to have been covered
adequately in this report.
Although I raised this issue in my review last year, I expect relevant activities related tooverseas sites to be reported in detail given the importance of CSR activities at overseas
sites for a global corporation.

On Receiving the Third-Party Review
This is the second time following last year that Mr. Tokura has provided the third-party
review for us. I would like to express my gratitude for his assessment of our CSR Report2014 and his precious feedback on our activities.
CSR Report 2014 primarily covered the achievements of the NGK SPARK PLUG Group’s
initiatives focused on CSR targets in fiscal 2013. We have featured the areas that we
consider of particular importance as the highlights of each page in the digest version. We
have also enhanced our website and made efforts to link the digest version with thewebsite.
Fiscal 2013, which is the reporting period for this report, is the first year for the 2nd
SHINKA (Renovating) phase of NITTOKU SHINKARON (The Evolution of NGK SPARK
PLUG). Going forward, we will continue to take initiatives related to compliance andbusiness continuity, which we focused on during the three years of the 1st SHINKA(Delving) phase and to report on progress.
Meanwhile, we once again recognize the challenges relating to the cohesion of the
Message from the President with the content of the report and continuity with the previous
year’s report identified by Mr. Tokura. We also recognize that the global deployment of
our CSR policies and reporting about this remain a challenge, and we hope to phase inenhancements of the content while giving priority to important areas.
CSR Report 2014 has been edited to give our various stakeholders an understanding of
the CSR activities implemented by the NGK SPARK PLUG Group. Sincerely responding
to the review we have received, we will continue to further promote our CSR activities
while making efforts to provide reports that are even easier for everyone to understand.

Yukashi Ukai
General Manager, CSR Promotion Office
NGK SPARK PLUG CO., LTD.

NGK SPARK PLUG Group CSR Report 201491

CSR ＞ Detailed Information about Environment ＞ Fiscal 2013 Targets and Results

Environmental Action Plan
Fiscal 2013 Targets and Results
Evaluation standards

Business Activities

Environmental
Management

Item: Not achieved

Fiscal 2014 Target

Fiscal 2013 Target

Fiscal 2013 Results

Analysis of EMS operational statein overseas plants

Conducted the questionnaire survey
and identified EMS operational state

Verification of environmental
performance data in overseas plants

Conducted the questionnaire survey and verified themethod for calculating environmental performance data

Promotion of environmental activities
relating to corporate management

Application method examination ofmaterial flow cost accounting

Coordinated with some divisions,but no conclusion reached

Application method examinationof material flow cost accounting

Reduction of
CO2 emissions

Emissions: 182,130 tons
(down 12.8% from FY 2007)
Intensity: 0.716 tons/million yen(down 5.4% from FY 2007)

Emissions: 173,546 tons
(down 17.6% from FY 2007)
Intensity: 0.649 tons/million yen(down 8.3% from FY 2007)

Emissions: 175,115 tons
Intensity: 0.650 tons/million yen
Strengthen initiatives to reduce
upstream

Reduction of disposal ofwastes and valuable materials

Intensity: 0.057 tons/million yen(down 41.8% from FY 2007)

Intensity: 0.044 tons/million yen(down 55.1% from FY 2007)

Intensity: 0.039 tons/million yen(down 10% from previous fiscal year)

Reduction of water use

Intensity: 6.19 m3/million yen(down 18.4% from FY 2007)

Intensity: 5.349m3/million yen(down 29.4% from FY 2007)

Intensity: 4.863m3/million yen(down 10% from previous fiscal year)

Reduction in PRTR emissions

Reexamination of recycling
equipment

Recycling equipment was not
re-examined

Reexamination of recycling
equipment

Development of environmentallyfriendly products

Implementation of LCA to model
products

Implemented LCA to model products
in all divisions

Construction of development system
which takes LCA into consideration
when designing products

Enhancement of the managementof chemical materials

Storing data for chemical
management software

Completed entry of component masterand legislation master, but data on
contained substances not accumulated

Enhancement of management
system on chemical materials when
designing products

Promotion of green
procurement

Renewal audit implementationof the suppliers certified in 2009

Implemented renewal audit of the
suppliers certified in 2009 on schedule—Examination of products recycling
technology

Product recycling technologies were
not examined.

Examination of products recycling
technology

Implementation of package
materials reuse

Only implemented in some divisions

Implementation of package
materials reuse

Intensity: 0.417 kL/100 million yen(down 6% from 2007)

0.404kL/100 million yen

Intensity: 0.413 kL /100 million yen(down 7% from 2007)

Proposal of environmentallyfriendly sales strategies

Sales of environmentally friendly
products were expanded.

Planning environmentallyfriendly sales strategies

Enrichment of PR relating toenvironmental efficiency of products

Implemented PR for environmentallyfriendly products in expos and catalogs

Enrichment of PR relating toenvironmental efficiency of products

Disclosure of state of law
abidance in overseas plants

Published in CSR report

Disclosure compliance state inoversea plants

Disclosure of global materialbalance

CO2 emissions only published in
CSR report

Disclosure of global materialbalance

Disclosure of CO2, waste and water
reduction cases in overseas plants

There were no examples that could
be disclosed.

Continual implementation of
the environmental conferences

Implemented environmental
conferences

Continual implementation of
the environmental conferences

Acceptance of visitors to factories
by stakeholders

Implemented interaction with local
residents

Acceptance of visitors to factories
by stakeholders

Continual participation in EPOC international
exchange subcommittee meetings

Continual participation in EPOC international
exchange subcommittee meetings

Continual participation in EPOC international
exchange subcommittee meetings

Enhancement ofsocial contribution• Continual implementation of
the clean-up activities• Enhancement of beautification
activities around factories• Participation in a variety ofenvironmental activities• Held periodic clean ups around plants• Conducted landscaping, including
installation of flower beds, at each plant• Took part in environmental programs
run by local governments• Continual implementation of
the clean-up activities• Enhancement of beautification
activities around factories• Participation in a variety ofenvironmental activities

Enhancement of activities
for biodiversity preservation

Examination of activities for Satoyama (planted/
managed natural woodlots) preservation activities
and cooperation with NPO/NGO and governmentsCollected information, but did notparticipate

Participate in activities forbiodiversity preservation

Enhancement of level-specifictraining in the domestic groups

Expanded those eligible for level-specifictraining and provided training

Enhancement of level-specifictraining in the domestic groups

Establishment of system which implements
environmental education for employeestransferred to overseas subsidiaries

Provided training, but did notformulate framework

Establishment of system which implements
environmental education for employeestransferred to overseas subsidiaries

Promotion of globallyunited actions

Recycling of
post-consumer products
Reduction of CO2 emissions
in physical distribution
Environmentally friendly
sales activities

Improvement of
disclosing information

Social Cooperation

Evaluation: achieved

Enhancement ofcommunication

Enhancement ofenvironmental consciousness

Drawing up a framework of
Global Eco Vision—

Disclosure of CO2, waste and water
reduction cases in overseas plants

NGK SPARK PLUG Group CSR Report 201492

CSR ＞ Detailed Information about Environment ＞ ISO 14001 Certified Locations

Conditions for the Establishment of a System
ISO 14001 Certified Locations

Certification covering multiple units
Country

Name of factories and companies

NGK SPARK PLUG CO., LTD.

Japan

Certified initially in: Certification organization

Headquarters and Nagoya Plant’99. 8

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

Takenami Plant’07. 1

Nittoku Alfa Service Co., Ltd.

’99. 8

Nittoku Unyu Co., Ltd.

’00. 12

Ceramic Sensor Co., Ltd.

’00. 12NTK Ceramic Co., Ltd.

Komaki Plant’00. 12

Nakatsugawa Plant, Iijima Plant, Kani Plant’02. 12’02. 12

Nansei Ceramic Co., Ltd.

’04. 1

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

JQAHead Office Plant, Oguchi Plant’04. 1

Satsuma Plant’09. 12

Nichiwa Kiki Co., Ltd.

’04. 1

Nittoku Spark Tech Tono Co., Ltd.

’04. 1

Tokai Taima Kogu Co., Ltd.

’09. 1

Certification obtained individually
Country

Name of factories and companies

Certified initially in: Certification organization’00. 7

TUV

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

’12. 11FS

Ceramica e Velas de Ignicao NGK do Brazil Ltda.

’01. 12

ABS QEFranceNGK Spark Plugs (France) S.A.S’00. 5AFAQU.K.

NGK Spark Plugs (U.K.) Ltd.

’01. 12

BSI

Germany

NGK Spark Plug Europe GmbH’04. 11

TUV

Siam NGK Spark Plug Co., Ltd.

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

’12. 10SGS

Woo Jin Industry Co., Ltd.

’05. 4KFQ

NTK Technical Ceramics Korea Co., Ltd.

’06. 4ISC

NGK Spark Plugs Malaysia Berhad’06. 3

SIRIM QASNGK Spark Plug (Shanghai) Co., Ltd.

’07. 4SGS

U.S.A.

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

MexicoBrazilThailandSouth Korea
Malaysia
China

WV Plant

Changshu NGK Spark Plug Co., Ltd.

’14. 3

SGS

Indonesia

P.T. NGK Busi Indonesia’07. 10

Bureau Veritas

India

NGK Spark Plugs (India) Pvt. Ltd.

’10. 12ASR

NGK Spark Plugs SA (Pty) Ltd.

’08. 4

Bureau Veritas

South Africa

NGK SPARK PLUG Group CSR Report 201493

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration

We measure regularly the air, the water, the noise, the vibration, and manage them to observe laws and regulations.
Name offactories andcompanies

Item

Type
Soot and
dust

Air
NOx

Boiler (No.10)
Boiler (No.11)
Firing furnace (PR-2)
Boiler (No.10)
Boiler (No.11)
Firing furnace (PR-2)

pH
SS
BOD
n-hexane extract
CyanogenTotal chromium
Head Office/Drain
Hexavalent chromium
Plant(sewer)Zinc
Lead
NitrogenPhosphor
Fluorine
Boron
Morning
F spotDaytimeF spotNoise
Evening
F spotNight
F spotDaytimeF spotVibrationNight
F spotBoiler (No.1-6)
Soot and
dust
Firing furnace (No.9-10)
Boiler (No.1-6)
Air
NOx
Firing furnace (No.9-10)
Boiler (No.1-6)
SOx
Firing furnace (No.9-10)
East
pH
West
North
East
SS
West
North
East
BOD
West
North
East
COD
West
North
COD (total) Komaki Plant total
Drain
East
Komaki(public water n-hexane
Plant
West
area)
extract
North
East
Cyanogen West
North
East
Total
West
chromium
North
East
West
Copper
North
East
West
Zinc
North

Unit

mg/Nm3

ppm
—
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
dB
dB
dB
dB
dB
dB
mg/Nm3
mg/Nm3
ppm
ppm
Nm3/h
Nm3/h

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
50
—
40
50
—
40
150
—
120
150
—
120
150
—
120
180
—
144
5.0~9.0—
5.2~8.8
600
—
480
600
—
480
30
—
24
1
—
0.8
2
—
1.6
0.5
—
0.4
2
—
1.6
0.1
—
0.08
120
—
96
16
—
12.8
8
—
6.4
10
—
8
60.0
—
58.0
65.0
—
63.0
60.0
—
58.0
50.0
—
49.0
65.0
—
60.0
60.0
—
55.0
100
100
80
200
200
160
150
—
120
200
—
160
5.889
—
4.711
5.889
—
4.711
6.0~8.0

6.0~8.0

6.2~7.8

mg/l

30

—

24

mg/l

25

—

20

mg/l

—

—

—

109.86

—

—

mg/l

5.0

5.0

4.0

mg/l

0.5

0.5

0.4

mg/l

2.0

1.0

0.8

mg/l

1.0

1.0

0.8

mg/l

1.8

1.8

1.6

—

kg/dayAverage

MAX

5
4
4.0
25.0
55.0
46.0
7.2
9.0
6.90
0.74
0.11
0.05
<0.04
0.27
<0.02
11.7
0.19
0.18
1.0
59.7
67.3
57.6
57.9
45
49
<2
5.5
14
55
3.4
<2.5
7.5
7.2
No drainage
2.5
0.8
No drainage
3.5
1.6
No drainage
4.5
2.7
No drainage
9.1
<0.5
<0.5
No drainage
<0.1
<0.1
No drainage
<0.04
<0.04
No drainage
0.03
0.06
No drainage
0.13
0.03
No drainage

5
4
6.0
25.0
55.0
57.0
7.9
29.0
49.0
1.60
0.2
0.09
<0.04
0.6
<0.02
36.0
0.74
0.80
2
59.7
67.3
57.6
57.9
45
49
<2
6
14
56
3.4
<3
7.7
7.4
No drainage
6.0
5.0
No drainage
6.2
2.8
No drainage
6.6
5.0
No drainage
25.2
<0.5
<0.5
No drainage
<0.1
<0.1
No drainage
<0.04
<0.04
No drainage
0.05
0.16
No drainage
0.23
0.12
No drainage

*1
*1
*1

*1 These values apply to the background noise level. The background noise level is the noise when machines, and so on, are not operating.
It is affected by traffic noise, noise from adjacent factories, and so on.

NGK SPARK PLUG Group CSR Report 201494

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Item

Type
East
West
North
East
NitrogenWest
North
Nitrogen(total) Komaki Plant total
East
Phosphorus WestNorth
Phosphorus(total) Komaki Plant total
East
West
NickelNorth
East
Manganese West
North
East
Fluorine
West
North
East
Boron
West
North
First spot
Second spot
Third spot
Morning
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Daytime
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Evening
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Night
Fourth spot
Fifth spot
Sixth spot
Seventh spot
DaytimeFirst spot
Night
First spot
pH
SS
BOD
COD
n-hexane extract
NitrogenPhosphorus
Coli bacteria
Lead

Drain
(public water
area)

Komaki
Plant

Noise

Vibration

Takenami
Plant

Drain
(public water
area)

Unit

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city

mg/l

0.1

—

0.08

mg/l

120

—

60

kg/day

91.91

—

—

mg/l

16

—

8.0

kg/day

9.013

—

—

mg/l

—

—

—

mg/l

10

—

8

mg/l

8

—

6.4

mg/l

10

—

8

65
65
65
65
65
65
65
70
70
70
70
70
70
70
65
65
65
65
65
65
65
60
60
60
60
60
60
60
70
65
5.8~8.6
200
160
160
5
120
16
3000

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5.8~8.6
200
160
160
5
120
16
3000

63
63
63
63
63
63
63
68
68
68
68
68
68
68
63
63
63
63
63
63
63
58
58
58
58
58
58
58
68
63
5.8~8.6
100
130
80
4
120
16
2000

dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
—
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3

Average

MAX

<0.02
<0.02
No drainage
6.79
4.03
No drainage
14.32
0.44
0.27
No drainage
0.78
0.03
<0.03
No drainage
<0.1
0.01
No drainage
0.53
0.82
No drainage
0.6<1
No drainage
57.9
54.4
52.7
54.2
52.8
49.1
50.6
54.8
54.7
54.2
51.2
53.3
50.8
51.4
55.6
53.5
49.8
50.4
48.0
47.4
50.8
52.7
51.7
48.3
46.5
51.9
49.1
47.8
<45.0
<45.0
7.0
5.5
27.0
7.5
<0.5
3.6
0.19
4.5

<0.02
<0.02
No drainage
9.10
8.30
No drainage
29.4
0.92
0.52
No drainage
3.7
0.20
<0.03
No drainage
<0.1
0.10
No drainage
0.9
1.2
No drainage
2.0<1
No drainage
57.9
54.4
52.7
54.2
52.8
49.1
50.6
54.8
54.7
54.2
51.2
53.3
50.8
51.4
55.6
53.5
49.8
50.4
48.0
47.4
50.8
52.7
51.7
48.3
46.5
51.9
49.1
47.8
<45.0
<45.0
7.1
6.0
34.0
7.9
<0.5
4.2
0.23
9.0

NGK SPARK PLUG Group CSR Report 201495

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Takenami
Plant

Item

Noise

Vibration
Air

Drain
(public waterarea)

Miyanojo
Plant

Noise

Vibration
Air
Drain

(public water area)*2

Ise Plant

Noise

Vibration

Type
Morning
Fourth spot
Daytime
Fourth spot
Evening
Fourth spot
Night
Fourth spot
Daytime
Fourth spot
Night
Fourth spot
Soot and dust 3T water boiler
NOx
3T water boiler
pH
SS
BOD
COD
n-hexane extract
CyanogenHexavalent chromium
CopperZinc
Lead
Fluorine
Boron
Coli bacteria
A spotB spotC spotMorning
D spotE spotF spotG spotA spotB spotC spotDaytimeD spotE spotF spotG spotA spotB spotC spotEvening
D spotE spotF spotG spotA spotB spotC spotNight
D spotE spotF spotG spotDaytimeNight
Soot and dust Firing furnace
COD
Lead
Morning
East
DaytimeEast
Evening
East
Night
East
Daytime (all directions)Night (all directions)

Unit
dB
dB
dB
dB
dB
dB
mg/Nm3
ppm
—
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
mg/Nm3
mg/l
mg/l
dB
dB
dB
dB
dB
dB

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
50
50
50
60
55
55
50
50
50
50
45
45
65
55
55
60
50
50
100
—
80
150
—
120
6.0~8.0
6.0~8.0
6.5~7.8
35
35
28
20
20
16
160
—
128
5
5
4
1
—
0.8
0.5
—
0.4
3
—
2.4
2
—
1.4
0.1
—
0.08
8
—
6.4
10
—
8
3000
—
2400
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
65
—
60
65
—
60
65
—
60
65
—
60
65
—
60
65
—
60
65
—
60
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
60
—
55
50
—
50
50
—
50
50
—
50
50
—
50
50
—
50
50
—
50
50
—
50
60
—
52
55
—
48
250
—
100
160
—
128
0.1
—
0.08
55
—
55
60
—
58
55
—
55
50
—
50
65
—
60
60
—
55

Average

MAX

39.1
41.9
40.5
40.0
15.0
15.0
<0.006
68.0
7.4
<4
4.5
10.0
<2.5
<0.05
<0.05
<0.05
0.07
<0.01
<0.2
1.2
0
43.5
45.2
45.9
46.7
44.4
45.6
45.3
46.0
47.6
52.4
51.7
49.5
53.8
50.8
42.4
44.5
46.8
47.4
45.9
49.3
46.1
42.4
42.8
44.0
46.7
43.4
44.7
44.2
31.0
32.5
<5
9.0
<0.01
41.8
47.5
40.8
39.0
<50
<50

40.0
44.0
42.0
42.0
15.0
15.0
<0.006
68.0
7.6
4.0
13.0
10.0
<2.5
<0.05
<0.05
<0.05
0.07
<0.01
0.2
1.5
0
45.6
49.5
48.6
48.6
46.3
47.9
47.5
48.7
49.8
53.8
52.3
50.6
55.8
53.6
44.8
48.1
51.3
49.7
49.5
52.0
50.4
44.9
46.8
45.3
48.2
46.0
45.1
47.4
31.0
32.5
<5
9.0
<0.01
41.8
47.5
40.8
39.0
<50
<50

*2 We revised the items measured in conjunction with a reduction in the drain volume.

NGK SPARK PLUG Group CSR Report 201496

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Item

Type

Soot and
dust
Air
NOx

NTK
Ceramic
Co., Ltd.
(Iijima Plant)

Drain(public water
area)

Noise

Air

Drain
(public water
area)

NTK
Ceramic
Co., Ltd.
(Nakatsugawa
Plant)

Noise

Vibration

Firing furnace: YA-5, 6
Firing furnace: YA-7, 8Absorption heater/chiller: FGL
Absorption heater/chiller: FGDL
Firing furnace: YA-5, 6
Firing furnace: YA-7, 8Absorption heater/chiller: FGL
Absorption heater/chiller: FGDL

pH
SS
BOD
COD
n-hexane extract
Cyanogen
CopperZinc
Lead
Fluorine
Boron
Phenols
Ammonia
Coli bacteriaFirst spot
MorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night
Soot and dust Firing furnace(NN-1)
SOx
Firing furnace(NN-1)
Factory 1&2
pH
Factory 3
Factory 1&2
SS
Factory 3
Factory 1&2
BOD
Factory 3
Factory 1&2
COD
Factory 3
Factory 1&2
n-hexaneextract
Factory 3
Factory 1&2
Nitrogen
Factory 3
Factory 1&2
Phosphorus
Factory 3
Factory 1&2
Coli bacteria
Factory 3
First spot
Second spot
Morning
Third spot
Fourth spot
First spot
Second spot
DaytimeThird spot
Fourth spot
First spot
Second spot
Evening
Third spot
Fourth spot
First spot
Second spot
Night
Third spot
Fourth spot
Daytime
Fourth spot
Night
Fourth spot

Unit

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
250

250
mg/Nm3

—
100

100

180

180
ppm

—
150

150
—
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3
dB
dB
dB
dB
mg/Nm3Nm3/H

5.8~8.6
50
30
30
5
0.5
2
3
0.1
15
50
5
500
3000
65
65
65
55
50
—

5.8~8.6
50
30
30
5
0.5
2
3
0.1
15
50
5
500
3000
65
65
65
55
50
—

6.0~8.0
—
25
—
5
0.2
2
3
0.1
15
50
5
500
3000
—
—
—
—
20
—

—

5.8~8.6

5.8~8.6

6.2~8.6

mg/l

50

50

35

mg/l

15

15

13

mg/l

40

40

30

mg/l

5

5

4

mg/l

10

10

—

mg/l

3

3

2.5

3000

3000

1000

60
60
60
60
65
65
65
65
60
60
60
60
50
50
50
50
65
60

60
60
60
60
65
65
65
65
60
60
60
60
50
50
50
50
—
—

58
58
58
58
63
63
63
63
58
58
58
58
50
50
50
50
63
58

counts/cm3
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB

Average

MAX

<5
<5
<5
<5
<10
<10
33.0
33.0
7.4
2.48
1.70
3.49
<1
<0.01
0.06
<0.05
<0.05
0.35
0.80
<0.02
9.1
7.3
45.8
46.7
48.1
52.9
6
0
7.4
7.7
2.8
2.5
3.2
6.4
7.9
12.5
<0.5
<0.5
6.7
7.0
0.16
0.48
164.8
0.0
51.0
48.0
48.5
49.5
48.5
48.5
51.0
49.5
49.5
49.0
51.8
47.5
48.5
48.0
48.0
45.0
23.0
19.0

<5
<5
<5
<5
<10
<10
36.0
35.0
7.5
7.0
9.1
6.4
<1
<0.01
0.08
<0.05
<0.05
0.70
1.10
<0.02
10.0
29
45.8
46.7
48.1
52.9
6
0
7.9
8.5
5.0
5.0
7.4
9.9
15.0
18.0
<0.5
<0.5
9.6
9.4
0.37
1.10
430.0
0.0
51.0
48.0
50.0
50.0
49.0
50.0
53.0
50.0
50.0
49.0
52.0
49.0
49.0
49.0
49.0
46.0
23.0
19.0

NGK SPARK PLUG Group CSR Report 2014

97

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Item
Air

NTK
Ceramic
Co., Ltd.
(Kani Plant)

Drain(sewer)

Noise

Type
Soot and dust
NOx
pH
SS
BOD
COD
n-hexane extract
First spot
MorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night

Unit
mg/Nm3
ppm
—
mg/l
mg/l
mg/l
mg/l
dB
dB
dB
dB

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
100
—
90
150
—
135
5.8~8.6—
5.9~8.5
200
—
180
160
—
144
160
—
30
5
—
4.5
50
—
50
60
—
60
50
—
50
45
—
45

Average

MAX

9
49
8.5
3.0
2.3
5.4
1.0
48.2
48.5
48.6
44.6

9
49
8.5
3.0
2.3
5.4
1.0
48.2
48.5
48.6
44.6

7.7
7.8
7.1
3.5
5.7
5.8
2.1
3.6
17.0
3.4
9.2
35.0
0.6
1.4
1.4
<30
47
<30
45.0
45.0
45.0
45.0
7.6
8.1
7.4
2.7
55
4.7
1
86
2.0
—
0.6
<0.5
62
62
62
54
55

7.8
7.8
7.4
5.8
8.8
7.2
3.8
4.0
25.0
5.9
12.0
38.0
0.8
2.4
1.9
<30
62
<30
45.0
45.0
45.0
45.0
7.6
8.1
7.4
2.7
55
4.7
1
86
2.0
—
0.6
<0.5
62
62
62
54
55

Nansei Ceramic* Relocated inside the site of the Ise plant
Co., Ltd.

Kamioka
Ceramic
Co., Ltd.

Drain(public water
area)

Noise

5.8~8.6—

6.2~8.2

mg/l

200

—

50

BOD

mg/l

160

—

40

COD

mg/l

160

—

40

n-hexaneextract

mg/l

5

—

2.5

Coli
bacteria

mg/l

3000

—

300

dB
dB
dB
dB

60
65
60
50

—
—
—
—

60
65
60
50

—

More than
5.0—

5.8~9.0

mg/l

—

—

600

mg/l

—

—

600

mg/l

50

—

50

dB
dB
dB
dB
dB

60
65
60
65
60

—
—
—
—
—

60
65
60
65
60

pH

—

SS

Morning
Daytime
Evening
Night
pH

SS
Nittoku
Seisakusho
Co., Ltd.
(Head OfficePlant)

Drain(sewer)BODn-hexaneextract
Noise
Vibration

Morning
Daytime
Evening
Evening
Night

Fourth spot
Fourth spot
Fourth spot
Fourth spot
Oﬃce building
Head factoryWest factoryOﬃce building
Head factoryWest factoryOﬃce building
Head factoryWest factoryOﬃce building
Head factoryWest factory
Second spot
Second spot
Second spot
Second spot
Second spot

*1
*1

*1 These values apply to the background noise level. The background noise level is the noise when machines, and so on, are not operating.
It is affected by traffic noise, noise from adjacent factories, and so on.

NGK SPARK PLUG Group CSR Report 201498

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Item

Type
pH

SS
Drain
(public water
area)
BOD
n-hexaneextract

Morning

Nittoku
Seisakusho
Co., Ltd.
(OguchiPlant)

DaytimeNoise

Evening

Night

OguchiOguchiOguchiOguchiOguchiOguchiOguchiOguchiFirst spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
First spot

Daytime
Night
pH
SS
Drain
(public water BOD
area)
n-hexane extract
Nittoku
Coliform bacteria countSeisakusho
MorningFirst spot
Co., Ltd.
(Satsuma
DaytimeFirst spot
Noise
Plant)
EveningFirst spot
Night
First spot
DaytimeFirst spot
Vibration
Night
First spot
pH
Drain
Nichiwa(sewer)n-hexane extract
Kiki
Co., Ltd.
Daytime
Noise
Cooling tower north side
Vibration

Unit—

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
5.8~8.6—

5.8~8.6

mg/l

—

—

200

mg/l

—

—

160

mg/l

5

—

5

dB
55
dB
55
dB
55
dB
55
dB
55
dB
55
dB
60
dB
60
dB
60
dB
60
dB
60
dB
60
dB
55
dB
55
dB
55
dB
55
dB
55
dB
55
dB
50
dB
50
dB
50
dB
50
dB
50
dB
50
dB
65
dB
60
—
—
mg/l
—
mg/l
—
mg/l
—
counts/cm3
—
dB
50
dB
60
dB
50
dB
45
dB
60
dB
55
More than 5.0
—
50
mg/l
65
dB

55
55
55
55
55
55
60
60
60
60
60
60
55
55
55
55
55
55
50
50
50
50
50
50
60
55
—
—
—
—
—
—
—
—
—
—
—
—
—
—

55
55
55
55
55
55
60
60
60
60
60
60
55
55
55
55
55
55
50
50
50
50
50
50
60
55
—
—
—
—
—
50
50
50
45
60
55
6.0~8.0
40
63

Average
7.4
7.1
4.0
17.0
4.4
9.4
<1
<1
55
51
51
50
51
52
56
54
58
58
55
52
53
52
52
48
53
53
50
49
49
48
50
49
49
51
6.8
12
61
5.0
1600
64
63
63
63
44
47
6.5
2.00
60.5

MAX
7.4
7.1
4.0
17.0
4.4
9.4
<1
<1
55
51
51
50
51
52
56
54
58
58
55
52
53
52
52
48
53
53
50
49
49
48
50
49
49
51
6.8
12
61
5.0
1600
64
63
63
63
44
47
6.6
5.0
60.5

*1
*1
*1
*1

*1 These values apply to the background noise level. The background noise level is the noise when machines, and so on, are not operating.
It is affected by traffic noise, noise from adjacent factories, and so on.

NGK SPARK PLUG Group CSR Report 201499

CSR ＞ Detailed Information about Environment ＞ Data on Air, Water Quality, Noise and Vibration

Compliance Status
Data on Air, Water Quality, Noise and Vibration
Name offactories andcompanies

Item

Type

Soot and dust
NOx
pH
Drain
SS
(public water
Nittoku
BOD
area)
Spark Techn-hexane extract
Tono Co., Ltd.
Morning
DaytimeNoise
Evening
Night
Soot and dust
Air
NOx
pH
SS
BOD
COD
Drain
(public water n-hexane extract
area)
NitrogenPhosphorus
Fluorine
Boron
First spot
Ceramic
SensorSecond spot
Co., Ltd.
Third spot
Daytime
Fourth spot
Fifth spot
Sixth spot
Seventh spot
NoiseFirst spot
Second spot
Third spot
Night
Fourth spot
Fifth spot
Sixth spot
Seventh spot
Morning
east
Daytimeeast
Noise
Tokai Taima
Evening
east
Kogu
Night
east
Co., Ltd.
Daytimeeast
Vibration
Night
east
Air

Unit
mg/Nm3
ppm
—
mg/l
mg/l
mg/l
dB
dB
dB
dB
mg/Nm3
ppm
—
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB
dB

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
—
—
200
—
—
400
—
—
5.8~8.6
—
—
200
—
—
160
—
—
5
50
—
50
60
—
60
50
—
50
45
—
45
200
200
200
—
—
—
5.8~8.6
6.0~8.0
6.0~8.0
150
18
18
120
18
18
120
18
18
5
2
2
60
30
30
8
—
4
8
—
8
10
—
10
75
70
70
75
70
70
75
70
70
75
70
70
75
70
70
75
70
70
75
70
70
70
60
60
70
60
60
70
60
60
70
60
60
70
60
60
70
60
60
70
60
60
75
—
60
75
—
65
75
—
60
70
—
50
75
—
65
70
—
60

Average
10.0
30.0
7.3
33.0
29.0
3.3
44.2
50.9
44.3
42.9
0
61.5
7.2
1.6
2.1
6.6
1.0
5.0
0.2
2.7
2.2
56.2
57.4
58.5
53.2
53.2
51.3
57.2
54.2
56.6
57.3
52.7
51.2
50.5
56.8
42.9
44.8
45.0
42.7
48.0
48.0

MAX
12.0
33.0
7.3
33.0
29.0
3.3
48.2
58.2
48.2
44.6
0
78.0
7.7
4.0
6.7
15.0
1.0
16.0
1.7
5.5
4.2
63.8
58.9
61.1
55.6
59.6
53.5
59.3
57.2
57.9
59.7
54.1
55.8
53.0
59.0
42.9
44.8
45.0
42.7
48.0
48.0

NGK SPARK PLUG Group CSR Report 2014100

CSR ＞ Detailed Information about Environment ＞ Environmental Accounting

Environmental Accounting
Environmental Conservation Costs(Unit: million yen)
Items

Non-consolidated

Classification

Investment

Major efforts

NGK SPARK PLUG Group*

ExpenseInvestment

Expense

2012

2013

2012

2013

2012

2013

2012

2013

58

13

519

387

101

38

988

767

Global environmental Global warming prevention, energy
conservation costconservation

47

63

395

408

129

110

448

491

Resource circulation
cost

Eﬀective resource utilization, industrial waste
treatment/disposal

12

14

276

194

22

27

466

384

Sub-total

116

91

1,190

989

251

175

1,902

1,643

Upstream & downstream cost

Employee environmental education, EMS
construction and operation

0

0

0

0

0

0

11

1

Management activity cost

Employee environmental education, EMS
construction and operation

8

21

286

346

9

23

363

433

R&D cost

R&D of products promoting environment
preservation

1,012

1,181

6,580

8,030

1,012

1,181

6,580

8,031

Social activity cost

Nature protection, aﬀorestation,
environmental ads

0

0

181

211

0

0

186

216

0

0

10

7

1

0

13

8

0

0

Costs
withinthebusinessarea

Pollution prevention
cost

Air/water pollution prevention and noise
reduction

Environment damage correction cost Repair of soil contamination, disrupted nature
Other costs

—
Total

0

0

0

0

0

0

1,136

1,293

8,248

9,584

1,272

1,379

Any inconsistency between an aggregate of all itemized ﬁgures and a “Total” ﬁgure is due to rounding of fractions.

9,055 10,332* Excluding Nittoku Alpha Service Co., Ltd.

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

Cost saving

2012

2013

Revenue generated from the recycling of waste generated
in operations or used products

147

185

Energy cost saving achieved from energy conservation eﬀorts

104

65

Reduction of water expenses through water saving

2

2

Waste disposal cost saving achieved by resource conservation and recycling eﬀorts

4

1

Total

257

253

Quantity of Environmental Conservation Benefits
Classification
Eﬀect measured in
the business area

Types of effect
Purchased electricity (GWh)

Effectmeasuredwithrespect toresource
input into
operations

Effectmeasured withrespect toenvironmentalload and wastefrom businessactivities

Energyconsumption

Non-consolidated

NGK SPARK PLUG GroupDiﬀerence fromthe previous
ﬁscal year

2012

2013

22,33821,358–980

Diﬀerence fromthe previous
ﬁscal year

2012

2013

33,50334,399896

Gas (million m3)

1,379

1,144

–236

1,452

1,321

–131

LPG (million m3)

341

366

25

757

819

62

Tap water (m3)604,770521,041–83,729

817,405

727,203–90,202

Well water (m3)385,883

372,238–13,645

719,490

703,847–15,643

Quantity of PRTR law-regulated substances
handled (tons)

573

643

70

811

911

100

CO2 emission from energy consumption (tons)

120,786

112,542–8,244

172,021

173,776

1,755

Eﬀectively utilized mass (tons)

9,407

8,216

–1,191

12,611

11,758–853

Buried, incineration (tons)

106

92

–14

132

148

31

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

1.9

1.9

0

140

151

11

Water
consumption

Waste

NGK SPARK PLUG Group CSR Report 2014101

CSR ＞ Detailed Information about Environment ＞ PRTR data for Each Business Site

Hazardous Substances
PRTR data for Each Business Site

Name offactories andcompanies

Headquarters
and Nagoya
Plant

Komaki Plant* Including NTK
ceramic(Komaki Plant)

Miyanojo
Plant
Ise Plant
Takenami
Plant

NTK Ceramic(Iijima Plant)

NTK Ceramic(Nakatsugawa
Plant)NTK Ceramic(Kani Plant)
Nansei Ceramic

Cabinet
order
No.
53
80
87
144
296
297
300
308
392
400
405
412
20
53
80
87
132
144
245
272
297
300
308
309
400
405
411
412
87
144
308
405
412
305
300
309
53
80
87
144
300
308
309
354
53
80
87
300
354
355
453
80
354
305
384

* The table contains the substances that each business location was required to report(kg)
Quantity
Quantity processed takenout
PublicIncineration
Buried and Effective on the Disassociation Product/water Soil Public incineration
sewer
Sold
use
area
premises reaction

Quantity released
Name of chemical substance
Ethylbenzene
XyleneChromium and chromium (III) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
1,2,4-trimethylbenzene
1,3,5-trimethylbenzene
TolueneNickeln-hexaneBenzeneBoron compounds
manganese and its compounds
2-aminoethanol
Ethylbenzene
XyleneChromium and chromium (III) compounds
Cobalt and its compounds
Inorganic cyanide compounds (except complex salts and cyanates)
Thiourea
Copper salts (water-soluble, except complex salts)
1,3,5-Trimethylbenzene
TolueneNickelNickel compounds
BenzeneBoron compounds
Formaldehyde
Manganese and its compounds
Chromium and chromium (III) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
NickelBoron compounds
manganese and its compounds
Lead compounds
TolueneNickel compounds
Subtotal
Ethylbenzene
XyleneChromium and chromium (III) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
TolueneNickelNickel compounds
di-n-butyl phthalate
Ethylbenzene
XyleneChromium and chromium (III) compounds
Toluenedi-n-butyl phthalatebis (2-ethylhexyl) phthalate
Molybdenum and its compounds
Xylenedi-n-butyl phthalate
Lead compounds
1-bromopropane

Nittoku Seisakusho
308 Nickel(Oguchi Plant)
333 Hydrazine
Ceramic
Sensor374 Hydrogen fluoride and its water-soluble salts
Subtotal
Total

Quantity
handled
5,089
21,80916,822
1,075
9,168
2,793
64,102
106,656
4,731
2,304
1,990
1,166
4,926
3,021
14,301
3,463
1,851
3,658
1,424
2,326
1,276
30,747
29,812
1,400
693.1
36,303
1,162
4,478
25,283
2,157
179,698
8,872
2,164
45,781
1,532
953
644,984
6,642
3,998
5,279
2,642
76,328
1,898
3,181
9,955
1,463
8,290
4,115
65,391
23,364
2,021
2,536
1,026
2,703
11,6304,048

AirQuantity transferred

0
1

5,089
21,808
2
9

2

2

0

314

16,505
1,066
9,167
2,793
64,091

1
0
11
35

1
1

106,620
4,730
2,303

1
0
79
160
0
0

0
0
27
1
77

3
60

225
0
4,764
765
4,279
671
21
245
698
1,275
0
2
246
750

0
359

15

2

0

1,651
1,150
4,095
1,327

1,763
1,165
161
2,177
9,861
0
1,759
14
1,024
1,275
30,667

2,792
1,829
1,655
711

29,563
590
692.9
48
12
1

34,230380
23,956

2,157
95

179,698
8,673
2,164
40,347

104
0

997
1,329
2,608
1,825

543

12

0

5,434
60
216
22 28,328
4,035
2,172
660
1,792

475
737
161,963 452,789

326

4,619
525

76,328
1,898
3,181
1,042
806
4,568
2,087
2,614
10,404
1,827
275
205
1,418
1,396
2,631

566
3,209
62,778

821

1,417

8,913
91
513
2,028
5,421
108

7,540
86
2,261

893

391
10,234

12,977
14,694
3,092
267,273 149,551
912,257 150,880

12,977

0
543

12

22

12,9783,029
57,12085,4481,712
63
17,435
179,399

4
43,166495,955

NGK SPARK PLUG Group CSR Report 2014102

CSR ＞ Detailed Information about Environment ＞ Volumes of Waste Generated at Each Business Site

Waste
Volumes of Waste Generated at Each Business Site

The volume of waste generated in ﬁscal 2013 in the factories and the aﬃliated companies is listed in the table as follows.
Volume ofemissions(tons)Name of factories and companies

NGK SPARKPLUG CO., LTD.

Recovery rate(%)

Headquarters and Nagoya Plant

823

813

9.1

98.9%

Komaki Plant

4,178

4,101

77

98.2%

Miyanojo Plant

3,143

3,139

4

99.9%

Ise Plant

159

158

1.0

99.4%

Takenami Plant

5.3

5.3

0.0

99.1%

8,308

8,216

92

98.9%

NTK Ceramic Co., Ltd. (Iijima Plant)

599

590

9.3

98.4%

NTK Ceramic Co., Ltd. (Nakatsugawa Plant)

327

326

0.9

99.7%

Subtotal

Affiliates

Volume eﬀectively Volume of buried
Recovery rate used and incineration(tons)(tons)NTK Ceramic Co., Ltd. (Kani Plant)

60

60

0.1

100%

NTK Ceramic Co., Ltd. (Komaki Plant)

630

618

11.9

98.1%

Nansei Ceramic Co., Ltd.

46.7

46.7

0.0

100.0%

Kamioka Ceramic Co., Ltd.

201

201

0.2

99.9%

Nittoku Seisakusho Co., Ltd.

407

403

3.8

99.1%

Nichiwa Kiki Co., Ltd.

6.2

6.2

0.0

99.2%

48

46

2.3

95.2%

Ceramic Sensor Co., Ltd.

1,269

1,241

27.5

97.8%

Tokai Taima Kogu Co., Ltd.

4.2

3.8

0.4

90.0%

Nittoku Unyu Co., Ltd.

0.1

0.1

0.0

99.6%

Subtotal

3,598

3,542

57

98.4%

Total

11,906

11,758148

98.8%

Nittoku Spark Tech Tono Co., Ltd.

NGK SPARK PLUG Group CSR Report 2014103

CSR ＞ Detailed Information about Environment ＞ Local Clean-up Activities

Local Clean-up Activities
Clean-up Activities around our Business Sites
Number of operations
implemented (times)

Name of factories and companies

NGK SPARK PLUG CO., LTD.

Headquarters and Nagoya plant

5

76

Komaki Plant

4

150

Miyanojo Plant

2

78

2

49

13

353

Iijima Plant

1

22

Nakatsugawa Plant

2

20

Kani Plant

2

28

Komaki Plant

Ise Plant
Subtotal

NTK Ceramic Co., Ltd.

Affiliates

Total number of participants(people)2

10

Nansei Ceramic Co., Ltd.

2

4

Kamioka Ceramic Co., Ltd.

2

33

Head Oﬃce Plant

4

74

Oguchi Plant

4

67

Satsuma Plant

Nittoku Seisakusho
Co., Ltd.

4

53

Nichiwa Kiki Co., Ltd.

2

54

Nittoku Spark Tech Tono Co., Ltd.

3

14

Ceramic Sensor Co., Ltd.

370

Tokai Taima Kogu Co., Ltd.

2

12

Subtotal

33

461

Total

46

814

Clean-up Activities Initiated by a Local Government, etc.

Location

Number ofparticipants(people)Komaki City Committee for
Beautiful and Clean Local
Environment

Around Komakiyama

21

Komaki Citizens’ Anti-Littering Action Day,
Komaki City Clean-up Walk

Komaki City Committee for
Beautiful and Clean Local
Environment

Around Komaki City
Auditorium

23

NTK Ceramic Co., Ltd.
(Iijima Plant)

Picnic for the Environment of theTenryu River System

Ina Techno Valley Regional Centerof the Nagano Techno Foundation,
etc.

Area where the
Ohtagiri River andthe Tenryu River meet

39

Nittoku Seisakusho Co., Ltd.
(Oguchi Plant)

Clean-up Campaign for the Gojo,
Aise and Yado Rivers

Oguchi Town

Oguchi Town

11

Name of factories
and companies

Event name

NGK SPARK PLUG CO., LTD.
(Komaki Plant),
Ceramic Sensor Co., Ltd.

Komakiyama Beautiﬁcation Program,
Spring Clean-up Walk at Komakiyama

NGK SPARK PLUG CO., LTD.
(Komaki Plant),
Ceramic Sensor Co., Ltd.

Held byNGK SPARK PLUG Group CSR Report 2014104