NGK SPARK PLUG GroupCSR Report 2015
CSR ReportINDEX
Our Main Products ............................................................... P2
Our Business Activities ........................................................ P3

Detailed Information about Environment

Message from the President ............................................. P5
Our CSR .................................................................................. P7

Fiscal 2014 Targets and Results .......................... P91

Process for defining materiality ...................................... P10

ISO 14001 Certified Locations ............................ P92[Feature 1] Providing new value to people worldwide
through new products and new businesses ................ P12[Feature 2] Introducing CSR activities in Thailand ..... P16

Data on Air, Water Quality,
Noise and Vibration ................................................ P93

Management

PRTR data for Each Business Site ......................... P99

・Corporate Governance ................................................ P18
・Compliance .................................................................... P20
・Export Controls ............................................................. P23
・Security Control / Information Security ................... P24
・Intellectual Properties ................................................... P26

Environmental Accounting .................................... P98

Volumes of Waste Generated
at Each Business Site ............................................ P100
Local Clean-up Activities ...................................... P101

・Risk Management ......................................................... P28
With Our Customers
・Quality Policy and Implementation Structure ......... P30
・Initiatives to Improve Quality ..................................... P33
・Communicating Information to Customers............ P40
With Our Shareholders and Investors .......................... P42
With Our Suppliers ............................................................ P44
With Our Employees
・Human Resource Policy ............................................... P49
・Respecting Diversity ...................................................... P52
・Human Resource Development ................................. P56
・Labor-Management Relations/Compliancewith Labor Law .............................................................. P57
・Occupational Safety and Health Basic Policy .......... P59
・Occupational Safety Activities .................................... P62
・Health Promotion .......................................................... P65
With Local Communities and International Society ...... P66
For Environmental Protection
・Eco Vision 2015 ............................................................. P68
・Environmental Burdens from Business Activities... P70
・Environmental Management ...................................... P71
・Products ........................................................................... P77
・Substances of Environmental Concern .................... P79

Editorial Policy
The CSR Report 2015 is edited with the intentionof informing all of our various stakeholders about
the CSR activities of the NGK SPARK PLUG Group.
This online version contains more detailed
information than the digest version.
【Period covered】
From April 1, 2014 to March 31, 2015
Some other very recent activities and cases are also
included.
【Organizations Covered】
Social aspects: NGK SPARK PLUG CO., LTD.
However, this Report may also cover the activities
of subsidiaries and affiliates inside and outside Japan.
In such cases, specific company names are indicated.
Environmental aspects: NGK SPARK PLUG Group・NGK SPARK PLUG CO., LTD.
・Nine consolidated subsidiaries and one affiliate in Japan【Publishing Director】
Shinichi Odo, President & Chief Executive Officer【Editor in Chief】

・Global Warming............................................................. P82
・Waste ................................................................................ P84

Masaya Futamura, General Manager of the CSR

・Water Resource ............................................................. P85
・Environmental Communication ................................. P86【Published】

Promotion Office

September 2015 (Publication of the next report isplanned for August 2016.)

Third-Party Review ............................................................. P89
NGK SPARK PLUG Group CSR Report 2015 1

Home > CSR > CSR Report 2015 > Our Main Products

Our Main Products

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

NGK SPARK PLUG Group CSR Report 2015 2

Home > CSR > CSR Report 2015 > Our Business Activities

Our Business Activities

NGK SPARK PLUG Group CSR Report 2015 3

Click here to view detailed information.

NGK SPARK PLUG Group CSR Report 2015 4

Home > CSR > CSR Report 2015 > 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 long­term management plancalled NITTOKU SHINKARON (The Evolution of NGK SPARK PLUG), which sets out
the vision 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 three­year stages called the 1st SHINKA (Delving), 2nd SHINKA (Renovating), and 3rd
SHINKA (Evolving). In the Delving stage that lasted until fiscal 2012 we focused efforts
on changing the foundation of the company, or our organizational structure and culture,
as well as adopted the corporate officer system and formulated new human resources
systems.
For the three­year 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 long­term 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.
Overview of Long­Term Management Plan NITTOKU SHINKARONNGK SPARK PLUG Group CSR Report 2015 5

the Medium­Term Management Plan
Towards ”Evolution“ Under NITTOKU SHINKARON
Fiscal 2015 is the final year of NITTOKU SHINKARON representing the 2nd SHINKA(Renovating). Currently, we are making steady progress on our most important issues
that include further enhancing our spark plugs and sensors, exiting or restructuring
unprofitable businesses, and quickly commercializing new products and businessventures.
Specifically, in February 2015 we completed the acquisition of Nihon Ceratec Co., Ltd.
This acquisition will enable us to utilize Nihon Ceratec’s advanced technical strengths andcost competitiveness from small­lot, high mix production in the field of components forsemiconductor manufacturing equipment. We will be able to expand our lineup to include
all new products never offered before. We also determined that synergies can be realized
between both companies by combining these with our overseas sales network andtechnological development capabilities from materials. From now on, we will work todeliver new value in the growing components business for semiconductor manufacturing
equipment.
In May 2015, we determined the acquisition of Wells Vehicle Electronics from UCI
Holdings of the United States. We examined various possibilities for further strengthening
our Automotive Components Business, and among these we focused on ways to utilize
our worldwide sales network, which is one of our greatest strengths. This brought us to
Wells, which is a leading company in the United States automotive repair market. We
determined that an acquisition would enable us to expand our product lineup further. We
will continue to embrace new challenges going forward as we work to strengthen our
Automotive Components Business further.
As for new business ventures, we have committed management resources
predominantly to the environment/energy, healthcare, and next­generation vehicle
segments. We finalized a partnership with United States venture company Spirometrix inorder to gain a toehold in the healthcare sector as part of our medium­ to long­term
strategy. Under this partnership, we will aim to create new products together utilizing ourexisting sensor technologies. At the same time, we will continue to launch new products
and new businesses, but to beat out competition globally, we will improve company­wide
productivity, including not only the production floor but also the back office, andproactively engage in the development of personnel "assets" who will power these
activities.

Promotion of CSR Management
To fulfill NITTOKU SHINKARON and achieve sustainable growth, we are strengthening
our governance system across the entire group and steadily addressing important risks,
including crisis management and raising awareness about compliance in accordance with
our CSR policy. However, in fiscal 2014 business transactions from the past fiscal year
were found to be in violation of competition and anti­trust laws in the United States andSouth Korea. We take this matter very seriously and have implemented a preventive
program across the entire group to prevent future reoccurrences.
Additionally, we are actively developing environmentally­friendly products and reducing
our CO2 emissions to help preserve the natural environment. At the same time, we arecarrying out citizenship activities closely in tune with our philosophy and policy. The NGKSPARK PLUG Group is committed to fulfilling its corporate social responsibilities andaccountability as a corporation. Going forward, we will provide succinct and easy­to­understand information disclosures to all of our stakeholders about the processes we use
to select important issues and the progress of such processes, among other information.
We are pleased to announce the release of CSR Report 2015, which details ouractivities during fiscal 2014.
We very much appreciate your honest and unreserved comments and opinions.

NGK SPARK PLUG Group CSR Report 2015 6

Home > CSR > CSR Report 2015 > 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 wide­ranging, and include the following:【Examples】
・Offering excellent products to customers
・Disclosing corporate information to shareholders and the broader investor community,in an optimal and easy­to­understand manner
・Collaborating with suppliers for mutual development
・Establishing a safe and employee­friendly 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 andothers. 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]CSR Promotion System
The CSR Committee determines the priority themes for each fiscal year, to implement
CSR Policy. The Committee also oversees and evaluates CSR­related 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 Committee sets up respective working group as deemed appropriate, each ofwhich holds discussions on specific themes to develop countermeasures. We haveestablished a company­wide CSR promotion system by securing close coordination
between the CSR Committee, the CSR Promotion Sub­Committee and expert
NGK SPARK PLUG Group CSR Report 2015 7

committees.
CSR Promotion System

CSR Promotion Activities Targets
We carry out CSR promotion activities according to the medium­term targets and fiscal
year targets.
Our CSR Committee checked the progress of targets for fiscal 2014 and formulated
new targets for fiscal 2015 as part of achieving our medium­term targets.
We identified the priority themes for the NGK SPARK PLUG Group andestablished 30 items.
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 during meeting the
expectations and needs of our stakeholders.
When we set our targets for fiscal 2015, 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.
Click here to see the selection process for priority themes

NGK SPARK PLUG Group CSR Report 2015 8

CSR targets and results [123KB]NGK SPARK PLUG Group CSR Report 2015 9

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
Oct. 2012

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

May 2013 Published ”CSR Procurement Guidelines”
July 2014 Launched ”CSR Awareness­raising Activities”

NGK SPARK PLUG Group CSR Report 2015 10Home > CSR > CSR Report 2015 > Process for defining materiality

Process for defining materiality
In 2015, we defined the materiality of our priority CSR themes. We also established 10
fields of activities and 30 targets based on the sixth Medium­Term Management Plan.
Going forward, we will repeatedly conduct dialog with major stakeholders, including
customers, suppliers, shareholders and investors, employees and the local communities,
while pursuing stakeholder engagement and continuing to review materiality and targets
in line with the times.
Definition process for the materiality of priority themes (fiscal 2010 – 2014)
List of 10 fields of activities and 30 targets under the sixth Medium­Term
Management Plan (fiscal 2013 – 2015)

NGK SPARK PLUG Group CSR Report 2015 11

Home > CSR > CSR Report 2015 > Renovating NGK SPARK PLUG: Special Feature 1 Providing newvalue to people worldwide through new products and new businesses

Renovating NGK SPARK PLUG:
Special Feature 1

Providing new value to people worldwide throughnew products and new businesses
The NGK SPARK PLUG Group will provide new value in diverse fields in order to realize
our corporate philosophy.

Developing an intake oxygen sensor to prevent global
warming and atmospheric pollution
NGK SPARK PLUG decided todevelop and commercialize the intake
oxygen sensor ahead of others in theindustry, applying the technology which
has been extensively used in many
automotive sensors. The intake oxygen
sensor will contribute greatly to further
reducing NOx generated in diesel
engines and CO 2 produced by gasoline
engines by precisely controlling the
EGR system that recirculates exhaustgas. In near future, we will makepreparations for mass production andaim to expand deployment.

Promoting the fuel cell business to contribute tosolving environmental problems
The commercialization of fuel cells as anext technology of power generation forbusiness and industry is approaching. In
2014, NGK SPARK PLUG and
Mitsubishi Hitachi Power Systems, Ltd.
formed a business tie­up targeting mass
production of cylindrical cell stacks, thepower generating elements used in solidoxide fuel cells (SOFC). Combining ourtechnologies, the two companies are working to construct a production line inorder to contribute to the realization of a low carbon society.

NGK SPARK PLUG Group CSR Report 2015 12

Promoting improvements to products to lighten theload on the medical frontline
A bone filling material in paste­form isused for sites where a bone transplantis necessary such as bone loss or afracture. Cerapaste is a paste­formbone filling material developed by NGK
Spark Plug.
For the conventional product, mixing
is performed by rotating a mixing rod,
but lightening the workload involved in
mixing was a challenge. In order tosolve this, NGK SPARK PLUG has
developed Cerapaste (improved) thatcan be mixed by just moving the mixing
rod back and forth, which will contributeto lightening the load on the medical
frontline.

Developing even safer and more reliable oxygen
concentrator for medical use KM5 5touch (Sales name:O 2 Fresh 5G)
An oxygen concentrator for medical use
is a medical device used by patientswith respiratory disorders such as
chronic obstructive pulmonary disease(COPD) for domiciliary oxygen therapy.
The device increases oxygen
concentration by causing the absorptionof nitrogen into ceramic zeolites from aircompressed by a compressor. The
spread of oxygen concentrators for
medical use has made it possible formany patients with respiratory disorders
to be treated at home without being
hospitalized.
On the other hand, with the spread of oxygen concentrators, accidents
involving fires caused by the ignition of the apparatus by cigarettes and other firesources have also been increasing year by year, developing into a problem forsociety. NGK SPARK PLUG has applied the sensor technology cultivated inrelation to automobiles to develop a new product fitted with a function to attract
the attention of the people around when it detects smoke with the aim of
reducing the accidents involving fires that have become a serious problem.

NGK SPARK PLUG Group CSR Report 2015 13

Pursuing the DNA Project: an engine to promote
new businesses
The DNA (Dynamic New Approach) Project is an engine to promote new
businesses launched in 2009. It is a new company­wide initiative to create new
businesses separately from the conventional approach in research anddevelopment departments.
The 4th series of DNA initiated in spring 2014 brought together about 30
passionate volunteers with diverse skills and ideas, ranging from young
employees through to veterans. They met up about once a week to pursue in­house and external investigations by each of the teams that were formed on a
voluntary basis and pieced together proposals for new businesses.
Following a final review in spring 2015, a number of proposals are now
progressing through investigation into commercialization. It is expected to
produce rapid progress as a project to drive the future of the NGK Spark PlugGroup, not only in the creation of new businesses, which was the original
objective, but also in the development of human resources and organizational
culture.

Voice of Our Project Member

What I got out of the activities was huge
Sensor Engineering Dept. II, Sensor Division
Daisuke Tahira

I am very grateful to get theopportunity to actually shape the ideasthat I want to try.
I think that experiencing the flow of abusiness proposal that cannot be
experienced in the normal course ofbusiness, such as the difficulty ofmaking a business materialize,
interviews with potential customers
following detailed study, and making a
proposal to management, will be agreat asset for me in tackling my workin the future.

NGK SPARK PLUG Group CSR Report 2015 14

Voice of Our Project Member’s Boss
Sensor Engineering Dept. II, Sensor Division
Shingo Ito

Despite not having discovered any seeds for new businesses, I think thatsignificant results were achieved in human resource development.
I think that being involved in work related to marketing and planning, which are
not part of his work in the normal course of business, was beneficial for careeradvancement.
I also think that he was able to accumulate a lot of the experience needed as aleader in a condensed period of time by actively taking leadership.
Although regular duties took a blow due to participation in the program, I
believe it was a good investment if I think about how much the individual involved
grew.

Voice of Our Project Member
New Business Strategy Dept., New Business
Advancement Group
Tsuyoshi Inoue“I want to create something new. Hard work is fun if that is what it is for.”I took part in the 3rd series of DNA based on this idea. It was my firstexperience of planning new businesses, so I struggled continually. However, theproject I proposed with my encouraging teammates was adopted, and it was
decided to carry out a business feasibility study.
I myself was transferred to my current department and explore possibilities forcommercialization every day. There are difficulties, but I find it rewarding to think
through how to overcome obstacles.

Voice of Our Project Member
Development and Planning Dept., New Business
Advancement Group
Yoshinari Goto

Under the DNA Project, employees who are motivated to create new businesses
work independently to plan new businesses, irrespective of age, gender, type ofoccupation, and department.
This program works because of the understanding of the members’ bosses,
including officers, and co­workers, and we get a sense for the broadmindednessof NGK SPARK PLUG.
In the secretariat, we will also grow while providing full support for the project
members to pave the way to even better proposals.

NGK SPARK PLUG Group CSR Report 2015 15

Home > CSR > CSR Report 2015 > Renovating NGK SPARK PLUG: Special Feature 2 Introducing CSR
activities in Thailand

Renovating NGK SPARK PLUG:
Special Feature 2

Introducing CSR activities in Thailand
2015 marked 41 years since the NGK SPARK PLUG Group expanded into Thailand in1974 as Siam NGK Spark Plug Co., Ltd. Today, three group companies are based in
Thailand and are promoting the construction of a global production response to theincreasing expansion in demand, mainly in emerging countries.
In Special Feature 2, we will report on activities in Thailand which is expected tocontinue playing an active role in the future as a core site in the Asia region.

Siam NGK Spark Plug Co.,Ltd.

SparkTec (THAILAND)
CO., LTD.

NGK Spark Plugs(Thailand) Co., Ltd.

Risk management and compliance
In 2011, there was large­scale floodingin Thailand, and local Japanese­
affiliated companies also sufferedsignificant damage. Fortunately, theNGK SPARK PLUG Group did not
suffer any damage, but we haveformulated a business continuity plan
(BCP) in preparation for mitigating
damage and early recovery ofoperations in the event that risks domaterialize.
Moreover, in order to maintain fair
and transparent relationships withcustomers and suppliers, we regularly
conduct education on compliance,
including Thailand’s Competition Act,to raise awareness among employees.

Compliance study session

NGK SPARK PLUG Group CSR Report 2015 16

Aiming for an environmentally­ and people­friendly plantthat is also risk­resistantWe established two concepts taking the environment and safety into
consideration when constructing the plant at SparkTec (THAILAND) CO., LTD.,
which commenced operations in April 2015. The first concept is “anenvironmentally­ and people­friendly plant.” We have created an environment thatis easy for employees to work in by establishing places for recreation, such as
sports areas. The plant is also environmentally­friendly with consideration given toenergy and cost savings, including measures to counter the heat with highceilings and natural ventilation, and the use of sunlight for lighting. The second
concept is “a plant that is disaster­resistant.” We have avoided risks due to heavy
rain and flooding by taking measures against rainwater discharge that take into
account maximum local rainfall and measures to prevent the inflow of rainwaterfrom outside.

Plant using natural lighting

Sports area inside the plant grounds

Actively participating in social contribution andenvironmental preservation activities
We have continuously taken part in
donating blood to the local Red Cross
and making contributions tofoundations that provide support to
AIDS patients. NGK Spark Plugs(Thailand) CO., LTD. and Siam NGK
Spark Plug Co., Ltd., are also involvedin anti­drugs activities run by the local
Labour Protection and Welfare Offices.
All the employees at both companies
have received certification that they are
drug­free.
In the area of the environment, we
actively participate in coastal clean ups
and beachside tree planting activities
with involvement from employees.

Participants in tree planting

Voice of a Participant in Tree­planting
In the area where our plant is located, there is a mangrove forest along thecoastline. Therefore, we run tree­planting activities to protect the mangroves.
Through these activities, we can contribute to protecting the environment andalso get to know people in other departments.

NGK SPARK PLUG Group CSR Report 2015 17

Home > CSR > CSR Report 2015 > 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
The directors appoint corporate officers selected by resolution of the Board of Directors tomanage corporate affairs. The directors also define the division of duties between thecorporate officers and employees related to the management of corporate affairs in
Corporate Officer Authority Rules and Regulations on the Division of Duties as well as
clarifying targets and working to enhance management efficiency by formulating medium­
term management plans and managing the budget framework.
Meetings of the Board of Directors are held regularly once a month as well as
whenever necessary. In addition, there is also lively debate at the regular monthly
meetings of the Corporate Management Committee and the Corporate Officers’ Meeting,in which the directors take part, and each of the expert committees in efforts to identify
the situation quickly and respond to changes in the business environment.

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, one outside director was
appointed in June 2014, following the appointment of one outside director in June 2013,
bringing the number of outside directors to two.
The outside directors attend regular and ad hoc meetings of the Board of Directors,
providing supervision for the execution of duties as well as advice where it is needed
based on their great experience at global companies and deep insight.
Click here for information about the outside directors (Japanese version only)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 reportingin accordance 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 2015 18

Corporate Governance System

NGK SPARK PLUG Group CSR Report 2015 19

Home > CSR > CSR Report 2015 > 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 ahigh­level 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
A Compliance Committee made up by personnel in charge of overseeing compliance withlaws and ordinances in various departments and the heads of each division, headed by
the Representative Director, holds meetings every three months, carrying out inspections
and correcting serious problems.
Compliacne Promotion System

NGK SPARK PLUG Group CSR Report 2015 20

Important Notification
Plea Agreement with the United States Department of Justice Regarding Our
Automotive Parts and Announcement from Korea Fair Trade Commission
In August 2014, NGK SPARK PLUG CO., LTD. consented to a plea agreement with theUnited States Department of Justice that included the payment of a fine and otherdetails as there had been some violations of U.S. antitrust laws with respect to sometransactions related to automobile spark plugs and oxygen sensors for automobiles.
In addition, in March 2015, Korea Fair Trade Commission announced that it would
impose a fine for violations of the country’s Monopoly Regulation and Fair Trade Act.
There is a risk that NGK SPARK PLUG Group may be a party to litigation and penalties
and other legal procedures from regulatory authorities in relation to possible violations ofanti­monopoly laws in other countries and regions in the future. NGK SPARK PLUG
CO., LTD. apologizes profoundly for the serious concern caused to stakeholders,
including shareholders, in relation to this series of incidents.
The NGK SPARK PLUG Group has positioned legal compliance as an important
subject for management and has established a compliance system. We are taking thissituation very seriously and are striving to prevent any recurrence and further strengthen
our compliance system as we work to restore confidence. Specifically, we haveestablished a special team for competition law compliance, and we are committed tomaking compliance with competition laws well known to all through awareness raising
activities that include running special seminar training again for officers and employees
throughout the group as well as progressively carrying out system audits that include
group companies overseas.

Click here to see details
Plea Agreement with the United States Department of Justice Regarding Automotive
Parts
Announcement from Korea Fair Trade Commission

Education and Awareness­raising
To reinforce employee awareness ofcompliance, we have been continuing toconduct workplace training based onconventional seminars aimed at different
levels of the corporate structure, theCompliance Guidebook, and Compliance
Newsletter.
In fiscal 2014, we also ran seminars withexternal lecturers aimed at officers anddivisional compliance promotion staff toencourage education and awareness­raisingin all divisions and Group companies.

Seminar for divisional compliancepromotion staff

Surveying Each Division on ComplianceWith regard to “employee awareness of the Corporate Ethics Helpline,” which was among
the issues revealed by the compliance survey conducted in fiscal 2013, we distributed
portable cards, put up posters in each department, and carried out other measures in
efforts to significantly raise awareness.
Moreover, in order to “increase employee utilization” of the helpline, we employed aspecial private contractor from outside the company for the first time and endeavoured toincrease convenience by making consultation and reporting possible outside of working
hours and on holidays.
We also conducted the compliance survey in fiscal 2014 and reflected the results in
education and awareness­raising plans in order to contribute to improving the workplaceenvironment.
NGK SPARK PLUG Group CSR Report 2015 21

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.
Flow after report is received via the Helpline

Voice of Our Helpline Operator

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 theemployee making contact, even when a real name isused, is shared with a minimum necessary number ofpeople during fact finding. The privacy of that employee
who faithfully made a report is protected and care istaken that he or she not be disadvantaged by making areport.
We hope employees will make use of the helpline
when they feel uncomfortable raising an issue within theworkplace.

General Administration
Dept.

Yasuo MoriNGK SPARK PLUG Group CSR Report 2015 22

Home > CSR > CSR Report 2015 > 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 own Export Management Regulations andhas configured our in­house export control structure. This will allow us to flexibly deal withregulation 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)We will also include a risk management perspective to the subjects above.
Voice of Our Export Controls Organizer

Contributing to compliance through easy­to­understand explanations
Because export control is supported by the cooperationof various divisions including technical, sales anddistribution divisions, we hold briefings for people inrelated divisions on laws and regulations that must be
paid attention to when exporting.
We will continue to hold briefings under the motto“making difficult laws and regulations easy tounderstand” while confirming the status of inspections
and working to ensure sound compliance with laws andregulations.

Corporate Legal Dept.

Naoko Tokimoto“Introduction toClassification”
published by CISTECNGK SPARK PLUG Group CSR Report 2015 23

Home > CSR > CSR Report 2015 > 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 soundmaintenance 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,
our information 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 rapidly­
changing 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 andsuppliers. We are also working to bring greater efficiency to our work processes byintroducing a wireless Local Area Network in our shared spaces while complying with therelevant laws and regulations, not to mention maintaining thoroughgoing security
management.
Our privacy policy is available on our website.
Privacy Policy
Relocating Internet Systems to a Disaster­Resistant Data CenterIn preparation for the eventuality of a disaster, we have relocated the Internet systems
used for exchanging data with customers, suppliers and subsidiaries and for internal andexternal communication tools to external datacenters which has outstanding resistance toearthquakes, liquefaction, flooding, and fire as well as guaranteed power source. In
conjunction with this, we have enhanced business continuity by duplicating
communications with the data center.
In the future, we will continue working to further enhance business continuity byprogressively relocating system servers to an external data centers.

Carrying Out Mutual Checks Related to Confidentiality Management
To ensure that the confidentiality management rules we established do not become rules
in name only, the Confidentiality Management Committee asks each division to performperiodic inspections of the status of confidentiality management by company­wide. In
fiscal 2014, in addition to the self­checks carried out in the past, we added checks by athird party (another division), adopting a method of carrying out mutual interdivisional
inspections to strengthen the checking function.
NGK SPARK PLUG Group CSR Report 2015 24

Voice of Our Confidentiality Management Manager

To be thorough in confidentiality management
and avoid corporate risk
As a member of the Confidentiality Management
Committee secretariat, I am in charge of promoting
confidentiality management throughout the company.
When confidential matters are leaked, there is not only adegradation of competitiveness in the market and actual
damages due to demands for compensation of damages
from business partners, but there are the incalculable
effects of a damaged image due to a loss of public faith
in the company. To prevent these effects, we are
Corporate Legal Dept.
working to make the company­wide standard
Tadashige
confidentiality management rules more suitable andMaegawa
expand them from a global viewpoint.

NGK SPARK PLUG Group CSR Report 2015 25

Home > CSR > CSR Report 2015 > 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 property­related 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.

Exchange of views with customs officials

Winning International Recognition Related to the Protection of Intellectual
PropertyNGK SPARK PLUG CO., LTD. was named one of the Top
100 Global Innovators 2014 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),
we received high evaluations in global and volume. It was
the second year in a row after 2013 that we received theaward.
TrophyNGK SPARK PLUG Group CSR Report 2015 26

Voice of Our Intellectual Property Organizer

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

Intellectual Property Dept.

Yuko Iwasaki

NGK SPARK PLUG Group CSR Report 2015 27

Home > CSR > CSR Report 2015 > Management > Risk Managementt

Risk Management―― Workplace CSR Activities

Distributing Disaster Prevention
Goods to NGK SPARK PLUG Group
Employees to Prepare for the
Eventuality of a Disaster
In April 2014, we distributed survival kits, which are essential disaster prevention
items, to NGK SPARK PLUG Group employees in Japan. The contents of the
kits include a helmet, emergency food and water, work gloves, a mask and otheritems.
These will be essential items for employees in a large­scale disaster. As muchas possible, employees keep the kits close at hand to take with them immediately
in the event of an emergency evacuation.

Survival kits at the workplace

Disaster prevention items

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,
we will act giving top priority to the protection of human life. We have also madecontingency plans so that we can smoothly continue our business operation even undersuch circumstances.

NGK SPARK PLUG Group CSR Report 2015 28

Holding Disaster Imagination Game (DIG) Training for Officers
At the time of the company­wide disasterprevention training in November 2014, allofficers of NGK SPARK PLUG, Presidentsof the Group’s domestic subsidiaries, andthe managers of each plant met at Head
Office separately from the training carriedout by employees and conducted DIG
simulation training for a large­scale disaster.
This prepares for an emergency by assuming
the circumstances that could occur from one
minute to the next, aiming for the training
participants to gain an insight into what is
critical with regards to coping with andadvance preparations for a large­scaledisaster through action and self­evaluation.

A scene from DIG training

Earthquake Early Warning at NGK SPARK PLUG’s Four Plants
We have installed earthquake early warning equipment in all NGK SPARK PLUG’splants in Japan. This makes it possible to respond to the seismic motion that arrives a
few seconds later. We intend to install the equipment at domestic group companies in
the future.

Holding Regular General Administration Dept. Disaster Prevention Council
Since April 2014, people involved in disaster prevention in general administration
departments at group companies in Japan have come together to establish a regulardisaster prevention council to take up issues at group company sites related to disasterprevention as issues for the group and discuss them with the aim of upgrading disasterprevention at the site level. We also endeavored to coordinate the company­wide disasterprevention training which takes place in November with the holding of the disasterprevention council.

Response to New Infectious Diseases
To protect employees’ 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 information on candidate viruses fornovel influenza.
Voice of Our Disaster Control OrganizerContinuous Response for Infection Disease
We are concerned about the new flu Virus, such as theswine flu (H1N1) in 2009, and the bird flu (H7N9) in2013 being prevalent on a global scale. Therefore, we
aim to be prepared to take information andcountermeasures for a pandemic.

Disinfectant

Health Care Promotion
Human Resources Dept.

Kazuhiro
Sakakibara

NGK SPARK PLUG Group CSR Report 2015 29

Home > CSR > CSR Report 2015 > 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 customer­oriented 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
NGK SPARK PLUG regards all the value, expectations, and evaluations provided tocustomers through products and services, and all the people, goods, processes, andarrangements involved in producing them as “quality.”
We are always conscious of making the best value for customers, and, aware that weare the ones who support quality, we continue to grow, ambitiously applying creativity
and imagination to all operations.
We produce value for customers based on the company’s Corporate Philosophy, and inaccordance with our Corporate Quality Rules and Corporate Quality Policy. We willcontinue to contribute to society through development of the human resources toimplement the rules and policy effectively and efficiently and through safe and trusted
manufacturing based on our total quality management (TQM) that can respond flexibly
and promptly to the evolving internal and external business environment.

NGK SPARK PLUG Group CSR Report 2015 30

Quality Management System
NGK SPARK PLUG strives under the main principles of our quality management
activities (quality assurance, daily management, policy management, Small Group
Improvement Activities, and quality management education), which are based on our
Corporate Quality Rules.
We have obtained certification of the international standards ISO 9001 and the sector
standards such as ISO/TS16949 in order to meet demands from customers and eachindustry. We effectively apply these standards to achieve our quality management.
The Quality Committee has been established as a specialized committee in thecompany’s CSR system to provide a companywide framework for promoting quality
assurance. Chaired by the Executive Vice President and composed of the generalmanagers and managers of groups and divisions,
the Quality Committee directs and supervises total quality management(TQM) andquality risk.
In addition, as Small Group Improvement Activities at NGK SPARK PLUG, QC Circle
activities are actively conducted, and the NQC Activty Central Committee has been
formed to play a role in promoting total quality management(TQM) activities. Chaired by
the officer in charge of the Corporate Quality Control Dept., the NQC Central Committee
continually works with QC Circle trainers and expert advisors to strengthen thedevelopment of human resources and organizations that support quality.
We also contribute to awareness of local quality activities with outstanding QC Circles
participating in many external QC conferences to present their results.
Quality Management Promotion System

NGK SPARK PLUG Group CSR Report 2015 31

NQC Activities promotion system (Organization of
NQC Activities)

Voice of Our Quality Control Manager

We updated the Corporate Quality Rules withthe aim of achieving companywide targets
Based on the “Nittoku Quality Mind,” which is NGKSPARK PLUG’s DNA with regard to “enhancing
corporate value” and “creating customer value,” weupdated the Corporate Quality Rules in order to alignour approach toward the achievement of companywide
targets.
In order to solve issues and problems so NGKSPARK PLUG remains a company that can provide
value for customers and society, it is necessary to
upgrade not only results­based product quality, but also
the quality of all the operations that produces it and tostrengthen our human resources and culture.
We will bring together the wisdom of our entire
organization to deliver the expected quality through thepractice of total quality management (TQM) and global
activities in the NGK SPARK PLUG Group.

General Manager,
Corporate Quality Control
Dept.

Tatsuro Goto

NGK SPARK PLUG Group CSR Report 2015 32

Home > CSR > CSR Report 2015 > With Our Customers > Initiatives to Improve Quality

Initiatives to Improve Quality
SDCA activity
Standardizing our work and operations plays an important role in supporting total quality
management (TQM). As a manufacturer, we are promoting the manufacturing worksite
SDCA (Standardize, Do, Check & Act) activity to stably and reliably conduct daily
management at our manufacturing worksites. We are working to improve the quality of
our manufacturing by encouraging awareness of any abnormalities in the worksites andon a daily basis maintaining a worksite without muri, muda and mura (unreasonableness,waste and inconsistency) through good communication.

Voice of Our Activity Promoter

1st section, Manufacturing
Dept., iProject

Yutaka Umekida

We are working to reduce variations in work and toeliminate defects using video training. In 1st section of
the Manufacturing Dept. in iProject, we manufacture a
range of ceramic components for general industrial
applications using alumina as the principal raw material.
In more than 3,000 part numbers there is a significant
number of 3H parts (those with over a year since
production), we use video to standardize operations andvisualize parts that depend on the intuitive skill of
individuals in daily management, we are working on
involving all personnel in SDCA activities in addition to
reducing variations due to workers through video
training.
In addition, preparing video standards and proceduresin pairs, and providing commentary through images andtext using videos is helping to increase the speed oftraining workers to eliminate muri, muda and mura(unreasonableness, waste and inconsistency).

NGK SPARK PLUG Group CSR Report 2015 33

Quality Improvement
NGK SPARK PLUG is working to share and practice the concepts of total quality
management (TQM) in order to become a group company that creates value for all
stakeholders and has a system that can respond flexibly and swiftly to change.
Based on our CSR Policy, we have updated NGK SPARK PLUG’s Corporate Quality
Rules and identified the following five areas as the mainstays of total quality
management (TQM).
1) Quality assurance
In order to provide products and services that meet the needs of our customers andsociety, NGK SPARK PLUG will establish all operations and guarantee their safety andreliability and promote development activities aimed at creating new value.
2) Daily management
NGK SPARK PLUG will consider methods and indicators to measure the quality of all
our operations and promptly investigate the causes when results that differ from normal
are obtained as well as taking countermeasures to maintain and improve quality.
3) Policy management
NGK SPARK PLUG will further improve and innovate activities to maintain and enhancequality. We will establish strategies and objectives for creating new value for customers
and responding to the evolving internal and external business environment and explicitly
identify issues and problems that need to be tackled as we work towards achieving ourstrategies and objectives.
4) Small group improvement activities
NGK SPARK PLUG will use small group teams to solve the various issues and problems
identified through daily management and policy management, thereby developing humanresources.
5) Quality control education
NGK SPARK PLUG will create the understanding and awareness of the mainstays of
total quality management (TQM) that are the prerequisites for maintaining and enhancing
quality and activating improvements and innovation and then establish and implement a
grade­specific education system.
Voice of Our Activity Promoter

Strengthening Built­in Quality through Statistical
Methods
In addition to the demands of customers, know how
based on past experience is a critical element in thedevelopment and design of each product. Therefore, we
often see differences in development and design speed
for veteran engineers and young engineers. In particular,
major disparities arise in the design of size range (sizetolerance) in order to meet the performance and quality
required for products.
To make up for the disparities described above, in
addition to the statistical methods we have applied in
the past, we have been working with group members
since fiscal 2014 to utilize response surface design andanalysis using StatWorks based on cooperation with the
Corporate Quality Control Dept. As the performance,
quality and size range become clear from creating a
DRBFM and FTA while identifying the factors needed
for response surface design in the results of planning­
testing­analyzing (and extending when necessary), it
helps to equalize evaluation accuracy and speed. In
addition, it has the advantage that the veteran teammembers can give instruction in their experience andknowhow by proceeding with the young team members.
I hope that utilizing these methods will pave the way
to product development that achieves even greater
enhancements in performance and quality in the future.

Spark Plug Engineering
Dept., Spark Plug Div

Magoki Shimadate

NGK SPARK PLUG Group CSR Report 2015 34

Quality Training Raising the Quality of Our Manufacturing
We are working to develop our personnel“assets”as “making things is making people.”
We have established training programs that
include quality control, management
engineering techniques, QC Circle Activities,
quality management systems, andmeasurement control and offer practicalguidance and support for the application ofknowledge learned. We raise awareness ofquality and provide motivation throughquality expos and lectures, including training
for new recruits.
We also offer quality training and practicalsupport for problem solving for suppliers sothat they provide us with consistently highquality parts and materials based oncontinuous quality improvement.

Training for new recruits

Voice of Our Training Leader

Participatory Training Held for Recruits to Think
for Themselves

Corporate Quality Control
Dept.

Yuji Kimura

It is vital that the new employees who will carry NGKSPARK PLUG into the future understand theimportance of quality.
In training for new recruits, we run participatory
training that facilitates learning through experience inorder to achieve a high degree of understanding. For
example, there is training in which the trainees learn
efficient and high quality work procedures while making
paper crafts and case study training in which thetrainees experience the problem solving sequence using
seven quality control tools. The aim of this training is forthe trainees to increase their level of understanding by
thinking for themselves to carry out the activities.
Comments from new recruits have included the viewthat having a go at doing things themselves made it
really easy to understand, and we have realized theeffectiveness of participatory training.
In the future, we want to be creative in continuing tooffer easy­to­understand training and contribute toraising employee awareness of quality and the quality of
products and work.

A text that explains basic
knowledge on quality

NGK SPARK PLUG Group CSR Report 2015 35

Providing Overseas Subsidiaries with Support for Measurement
Measurement is vital in manufacturing. Appropriate measurement control is needed toobtain reliable measurement results. NGK SPARK PLUG conducts audits ofmeasurement control systems and certification of calibration skills at overseas plants toraise the quality of mechanisms and skills. We have also established an environment tofacilitate the development of video calibration standards, self­learning on site, andtraining activities.
In addition, confirmation of quality at overseas sites is required for the local
procurement of tools. Measurement technology is also required for carrying out incoming
inspections properly and procuring parts that meet the required quality. We will continue
to contribute to improvements in the accuracy and consistency of incoming inspections
through the roll out of training in measurement techniques and skills.
Voice of a Quality Control Manager, Overseas Plant

Correct Measurement Control Leads to
Production of Quality Goods
We underwent an audit of our measurement control
system and found that there were still deficiencies in our
mechanisms. Based on the results of the audit, we
carried out improvements to our systems and managed
to improve the quality of our mechanisms.
Through the certification of calibration skills, I
recognized again that measurement control is directly
linked to product quality.
I hope that applying what I learned from the audit willlead to the strengthening of our manufacturing abilities.

QＡ Assistant Manager
P.T. NGK Busi Indonesia

SunartoNGK SPARK PLUG Group CSR Report 2015 36

NQC Activities (Small Group Improvement Activities)
We are implementing Small Group Improvement Activity (QC Circle Activities) aimed atadvancing human resource training and workplace capacity by continually solving
problems and issues we face in daily work. We call this activity “NQC Activities.” During
Quality Control Month every November, the company recognizes successes resulting
from NQC Activities at a companywide presentation, and the best examples are given
the President's Award. The two circles that received the President’s Award in fiscal 2014
were particularly commended because all the members of the circles participated, they
achieved their targets in activities based on the 5G principles, and through their activities
they increased members’ knowledge of improvement and improved their communication
skills.
In addition, at the companywide improvement practice presentation and award
ceremony every June, commendations are given to small groups implementing
exceptional NQC Activities in daily operations throughout the year to encouragecontinuous NQC Activities by honoring their efforts. At the companywide presentation,
we also showcase and commend the organization of the activities by the managers ofgroups that received the President’s Award. Doing this provides an opportunity for othermanagers to study methods of organizing activities.
In addition, we actively send outstanding improvement practices from thecompanywide presentation to presentation meetings outside the company, which areforums for self­ and mutual development. Not only do participants realize the value of theactivity and gain a sense of achievement from presenting a theme they have worked on
to a large audience, but it also provides an opportunity to develop as an individual and agroup through Q&A and comments and gain the motivation for additional activities.
Recently, the results of our activities have been recognized by presentation meetingsoutside the company, and several groups receive the top prize every year.
The NQC Activities is vital for our organization not only for the NGK SPARK PLUG
Group in Japan, but also at sites outside Japan in order to respond to changes in theexternal business environment and further increases in production capacity as well as
developing strong workplace capabilities. Through the activity, we can share concepts
and mechanisms globally as the NGK SPARK PLUG Group. Therefore, we assess thelevel of activities by visiting the main overseas worksites where the activities are
conducted and holding interviews on difficulties and problems in promoting activities aswell as attending presentations on case studies of improvement.

NGK SPARK PLUG Group CSR Report 2015 37

Promoting NQC Activities (Small Group Improvement Activities) in Each
Department
To activate NQC Activities at each worksite,
we formed new expert committees at four
plants in fiscal 2013. These committees are
made up of a Certified QC Circle Trainerand expert advisors (members selected fromeach division and department). In particular,
they aim to give expert advisors knowledge
and practical skills related to NQC Activities
through two years of activities (as internal
workshop instructors, promoters andcommentators and in external training
courses), and after their terms those

Advice from an expert advisor

advisors return to their respective worksites, increasing the number of well­known QC
activity advisors available on a daily basis. In this way, we are working to activate NQC
Activities.
In fiscal 2015, new first­year expert advisors will take part with the goal of acquiringknowledge. The second­year expert advisors will be at the center of the activity with thegoal of learning practical skills. The third­year expert advisors are serving as instructors in
the use of proper techniques and meeting facilitators as well as providing review andcomments on presentation meetings as examples for activities in their own worksites.
Our aim is to invigorate and raise the quality of NQC Activities through continual
improvements to this system for promoting them, and we will continue to develop humanresources who can produce results in each arena of the company’s business activities.

Serving as Company Chairing the QC Circle Tokai Regional Chapter (Outside
Organization)
The Union of Japanese Scientists and Engineers has established nine chapters around
Japan for QC Circle Activities. NGK SPARK PLUG served as the company chairing theTokai Regional Chapter composed of the Aichi, Gifu, Mie, and Shizuoka area for one
year in fiscal 2014. Under the slogan for the fiscal year, which was “Activating theworkplace with rewarding and exciting activities,” we and the 63 member companies put
together policies and events and worked on popularizing and expanding them.
In addition, since joining as a member company in the Aichi area in 1973, NGKSPARK PLUG has been contributing to popularizing and expanding as well as
developing QC Circle Activities in the area by running area events (presentation meetings
and research meetings) with other member companies. We have also incorporated thevaluable experiences learned through these activities into the company, also helping toinvigorate NQC Activities.
Voice of the Executive Office, QC Circle, Tokai Regional Chapter

Applying the Valuable Experience to NQC
Activities

Corporate Quality Control
Dept.

In my duties for the Executive Office of the TokaiRegional Chapter, I worked with people from executive
offices in other areas to organize regional chapter eventsand endeavored to popularize and expand QC Circle
Activities. Through these duties, I was able to acquire
know how on organizing regional chapter presentation
meetings and ways to promote and run QC Circle
Activities. I will apply these experiences to continue
contributing to invigorating NQC Activities.

Takahiro Abe
Knowledge and know how learned fromoutside organization activities

NGK SPARK PLUG Group CSR Report 2015 38

Development of Unified Measurement Management System to NGK SPARKPLUG Group Companies in Japan
We have begun the development of a unified measurement management system to NGKSPARK PLUG Group companies in Japan.
In order to protect the NGK SPARK PLUG brand, we regularly share information withaffiliated companies and promote unified standards for the management of measuring
instruments that form the base of our manufacturing.
We will continue to contribute to high precision manufacturing by enhancing themeasurement management system, as well as the awareness and skills of the staff
involved in it.
Voice of a Measurement Management Manager at a NGK SPARK PLUG Group
Company

Spreading the Importance of Measurement
Management within the Company
At our company, we have been making preparations that
include establishing standards and databasemanagement since last year through the Measurement
Management Liaison Committee. Our internal
calibrators have also been certified, and we have begun
operating under the unified system this fiscal year.
In addition, as the quality control departments forglow plugs and cutting tools have been merged at ourcompany, we will play a key role in working to spreadthe importance of measurement management within thecompany in the future.

Quality Control
Department
Kamioka Ceramic Co.,Ltd.

Shinji Aogaki

NGK SPARK PLUG Group CSR Report 2015 39

Home > CSR > CSR Report 2015 > With Our Customers > Communicating Information to Customers

Communicating Information to
Customers―― Performance Workplace CSR Activities

To Raise Global Customer
Satisfaction Levels in After Sales
Market, Including Repairs
We also provide high quality services
based on the appropriate technology
and knowledge in the automobile
aftermarket and promote diverse
activities around the globe to increasecustomer satisfaction.
So that they acquire the correcttechnology and knowledge, we focus
on technical knowledge education forsales staff in Japan and overseas andtraining for technical sales staff
overseas. In addition, we promotemarket research activities that include

Responding to a defect on acustomer’s site (Thailand)

maintaining and expanding existing needs,exploring and fulfilling new needs, andcollecting and providing technical information and new car and model information.
Furthermore, we work on initiatives to further increase customer satisfaction byoffering tailored assistance such as holding lectures on technology for customers
in Japan and overseas, responses to customer inquiries and complaints to our
website, and technical support for customers’ racing activities as sales promotion
activities.

Providing support at a repair shop
(India)Providing support at an automobile
components store (India)

Voice of a Member of our Service Staff

We listen to the opinions of customers andare always conscious of improvement

Aftermarket Technical
Service Dept.
Sales & Marketing Div.

In the Aftermarket Technical Service Department,
we aim to raise customers’ levels of satisfaction andunderstanding related to products and services.
As an example, we provide support for holding
technical lectures. We constantly strive for
improvement by conducting a survey on levels ofsatisfaction with the content of the lecture for eachlecture and reflecting the results of the surveys into
the content of lectures to enable greater customer
satisfaction levels.

Daisuke Goto
NGK SPARK PLUG Group CSR Report 2015 40

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

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 ever­changing needs of our customers.
See information on exhibitions and events here

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 2015 41

Home > CSR > CSR Report 2015 > With Our Shareholders and Investors

With Our Shareholders and Investors―― Workplace CSR Activities

Eliminating the Information Gap andDistributing a Variety of Informationin Japan and Overseas in a Timely
MannerIn order to disclose information fairly inJapan and overseas, we preparematerials related to business results
and press releases in Japanese andEnglish and post them at the sametime on the company website. We also
actively make contact with allshareholders and investors in both
Japan and overseas in our day­to­day
investor relations activities, striving for
speedy and accurate disclosure of
information.
We will continue to establish systems
that enable us to meet the needs of allshareholders and investors in Japanand overseas with the focus on fair
information disclosure.

Materials for business results briefing
and press releases in English

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
At NGK SPARK PLUG CO., LTD. we are well aware that promoting transparent and fair
information disclosure is indispensable to having all our stakeholders better 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 2015 42

Shareholders' Meeting
We hold our Ordinary General Shareholders'Meeting every June, at which we explain thebusiness results of fiscal year ended March
31st, 2015 to our shareholders, who thenvote on matters to be resolved. We also
answer questions given by them directly.

The 114th general meeting ofshareholders

Engaging in Activities to Make Shareholders and Investors Familiar with NGKSPARK PLUG
We hold company briefing session so that shareholders and investors have accurate anddeep knowledge about NGK SPARK PLUG. In fiscal 2014, we visited areas all overJapan to get the unedited opinions of our shareholders and investors.
We will continue working to focus on and encourage communication with all of ourshareholders and investors.
Voice of Our Investor Relations Representative

Accurately Communicating NGK SPARK PLUG
As media exposure for NGK SPARK PLUG increases,
the number of opportunities to hear voices that support
the company and conversely harsh voices has also
increased. In the future, we will continue listening todiverse opinions and strengthen our activities so that
there is an accurate, deep, and lasting understanding of
NGK SPARK PLUG.
Data collecting the opinionsof shareholders and investors

Public Relations Office

Riki Matsuno

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 2014 was 36 yen.

NGK SPARK PLUG Group CSR Report 2015 43

Home > CSR > CSR Report 2015 > With Our SuppliersWith Our Suppliers―― Workplace CSR Activities

Enhancing Seminars and Practical
Onsite Courses for Suppliers
NGK SPARK PLUG holds seminars for suppliers on themes that include process
improvement, quality control, industrial safety and health, and the environment aswell as practical onsite courses in which we visit the production sites of suppliers
to work for improvements. In addition, we are working to enhance these courses
so that even more suppliers are able to take advantage of them. We implement
the activities to help with human resource development at our suppliers,
enhancing the capabilities of their companies. Last fiscal year, we established a
new course for beginners and held a total of 23 lectures. We aim to work in
partnership with our suppliers in the future to enhance their manufacturing
capabilities.

Scene at a seminar

Completion ceremony for a practical
onsite course

Voice of a Practical Onsite Course Organizer

Where There is a Will, There is a Way
In practical onsite training, we not only
communicate techniques alone, but also try tocreate an activity that will be sustained by valuing
free exchange of information and autonomy of theparticipants and the enhancement of theirawareness and motivation.

Supplier Relations &Development
Procurement Group

Masanori Maeda

NGK SPARK PLUG Group CSR Report 2015 44

Procurement Policy
We aim to realize globally optimal procurement based on our quality products
principle. To this end, we focus on strengthening cooperation with suppliers andpromoting our CSR efforts throughout our supply chain system, while at the sametime striving to carry out proper purchasing transactions when procuring materials andparts, based on 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 eco­friendly 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 our mutual development.

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 CSR­Oriented 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 implement our CSR program with suppliers self­checklist and provide feedback on
the overall results.
・We explain our Green Procurement Guidelines on our websites.
・We visit the premises of suppliers for practical onsite activities, such as 5S kaizen(improvement) and TPM, and hold various seminars.
＜For our employees＞
・We hold seminars for our procurement personnel to ensure their compliance with the
Subcontract Act.

NGK SPARK PLUG Group CSR Report 2015 45

Voice of Our CSR Procurement Manager

To Continuously Develop Along With Our
Suppliers
Calling for changing ”from a cost center to a profit
center,” our Procurement Group aims not just to engage
in conventional cost management, but to build anorganization that can closely connect NGK SPARKPLUG with suppliers through purchasing and makeproposals and value propositions. CSR is one importantelement of value that a company can offer. Therefore,
we produced CSR Procurement Guidelines, and madeoverall assessment of suppliers` trend through suppliersself­checklist, and provided feedback on the results.
We aim to pave the way to continuous social progress
through promoting CSR and mutual development
together with our suppliers.

Vice Group Manager
Procurement Group

Hiroyuki Maeda

Sharing Corporate Policy
We hold a corporate policy conference with
our main suppliers, offering them an
opportunity to deepen their understanding of
the present situation of our company and ourgoals.
At Supplier Conference held in May 2014,
we explained our business results, thecompany’s basic policy and the policy ofeach department based on it, and thebusiness environment for the company, andCorporate policy at Supplier Conference
we made statement that we together will
overcome challenging business conditions
together. We requested suppliers topositively work with in a responsible manner
toward such issues as enhancing quality,
reducing costs, and promoting CSR
initiatives.

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

BCP Initiatives
NGK SPARK PLUG is working to formulate a BCP with the objective of a rapid
resumption and continuation of business in preparation for a disaster or accident cases.
We have promoted countermeasures that include multiple purchasing for key products
including materials and parts.
A diverse range of materials and parts are required for manufacturing NGK SPARK
PLUG’s products. Therefore, we are trying to secure systems that respond to the BCP
through sharing our objectives with each supplier and making efforts across the entire
supply chain.

NGK SPARK PLUG Group CSR Report 2015 46

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

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

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 2015 47

Green Purchasing Requirements
In the purchase of office supplies and appliances, we choose an environmentally­ friendly
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. Preferably be priced the same or lower than similar products (in consideration of
longevity).
Version 2 of our "Green Procurement Guidelines (In­house Use)"NGK SPARK PLUG Group CSR Report 2015 48

Home > CSR > CSR Report 2015 > 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.

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.

NGK SPARK PLUG Group CSR Report 2015 49

Voice of the General Manager of Human Resources Department

To train and support the employees who will
create the future of NGK SPARK PLUG
Things are changing rapidly around our company, suchas 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' tosupport managerial and business strategies," and we areframing plans that allow us to create a NGK SPARKPLUG with the following environments: [1] one that
General Manager Humancontinues to develop diverse human resources with a
Resources Dept.
can­do spirit and the ambition to create new businesses, Masakazu Mori
products, technologies and markets, [2] one that
identifies diverse employees in domestic and overseas
units so as to allow them to use their talent andaspirations effectively, and [3] one that spreads thevalues of globalism , speed and fairness and encourage
employees to demonstrate their ambition and talent.
We will take the following measures: [1] firmly
establish a new human resources system at NGKSPARK PLUG and expand it to affiliates, [2] establish a
recruiting and education management method to allow
us to strategically and 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 acan­do spirit who can distinguish valuable corporate
culture from that which should be changed, who never
simply resign themselves to the present situation, whomake strenuous efforts to cope with drastic changes andwho have an aspiration to realize an innovation.

Expanding the New Human Resources System to Group Companies in JapanWe are working to consolidate our new human resources system, which was overhauledin April 2014, while repeating Plan­Do­Check­Act cycles in order to establish anenvironment for the development and active participation of diverse human resources andappropriately reward initiatives aimed at creating value.
In addition, we will introduce our new human resources system at group companies inJapan as well in order to strengthen governance. In April 2015, we began introducing our
new human resources system at NTK Ceramic Co. Ltd. and Ceramic Sensor Co., Ltd.
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

NGK SPARK PLUG Group CSR Report 2015 50

Voice of Our Human Resources Manager

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
the foundation, so now it is necessary for individual
employees to change.

Deputy Manager
Human Resources Dept.

Tsuyoshi Takahashi

NGK SPARK PLUG Group CSR Report 2015 51

Home > CSR > CSR Report 2015 > With Our Employees > Respecting Diversity

Respecting Diversity―― Workplace CSR Activities

Holding the ASEAN Human
Resources Conference in Thailand
Aimed at Building Global Mechanisms
for Human Resource Development
We have been holding the Global
Human Resource Conference every
year since 2013 aimed at a global
human resources system and humanresources development. Under the
initiatives to date, we have created asystem for overseas employees toleave their home countries and take on
new environments to capitalize on theircareers at other group companies.
Using this system, exchanges ofhuman resources have commenced on

Participant in the ASEAN Human
Resources Conference

a global scale through temporary transfers (cross­border temporary transfers fromoverseas group companies).
In order to expand the program further, we held the ASEAN Human Resources
Conference in Thailand in 2015. Human resource managers from Group
companies in Thailand, Indonesia, Malaysia, Vietnam, the Middle East and India
took part in a lively exchange aimed at the introduction of unified policies andmechanisms related to human resource development in the ASEAN region,
including India.
Going forward, we will continue working to establish a framework in partnershipwith the Human Resource Dept. based on a global consciousness, as we strive
for group­wide development of human resources.

Voice of a Global Human Resources Organizer

Aiming to be a Personnel “Assets” Company

Human Resources Dept.

Tomoyuki Kato

The participation of overseas human resources
accounting for over one third of the group as awhole is a major driving force at NGK SPARK
PLUG. There are differences in culture, religion, andcustoms, but I feel that discussing and working
toward the major common objective of developing
personnel “assets” with human resource organizers
from countries around the world is really worthwhile.
I will aim to further enhance the global network of
the Human Resources Dept. to establish anenvironment that allows individual skills to develop
and play an active part in the group overall.

NGK SPARK PLUG Group CSR Report 2015 52

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 employee­friendly 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.

Work­Life 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. There are also male employees
who take paternity leave.
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 well­planned 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

Promoting the Active Participation of Women
We are promoting the active participation of women as a management strategy from the
top down. We launched the “DIAMOND Project” in June 2013 to implement a range ofinitiatives with the following principles: “changing the corporate culture,” “changing theconsciousness,” and “changing the environment.”
We held events, such as "Forum for Female Employees," "Training for Next
Generation Female Leaders," and "Career Advancement Support Program," to support
female employees in building their career and to stimulate their ambition. We also held
lecture meetings for all senior managerial employees to deepen their understanding ofdiversity management.
Furthermore, in all departments, including those of Japanese affiliates, generalmanagers devised and implemented action plans that suited their own departments. We
are also expanding systems to create a workplace where female employees derive
greater satisfaction from their work.

NGK SPARK PLUG Group CSR Report 2015 53

Number of Female Employees in a Managerial Posts
by Fiscal Year

Strengthening and Maintaining Initiative to Promote Active Participation of
Women
In fiscal 2013, we held training primarily for managers, and in fiscal 2014, we held
training primarily for women. The action plans organized by the manager of eachdepartment, which commenced in fiscal 2013, have been maintained, increasingawareness of acting as a department.

Training for Next Generation Female
Leaders
We held training for female supervisorsand subsection chiefs, who are close to
management positions, to learn about
management, leadership, corporate
strategy and other areas and to interact
with officers of NGK SPARK PLUG andmanagers from other companies.

Career Advancement Support Program
Women who are aiming for supervisor
positions took part with their bosses toattempt challenges one rank above them.
In March, the participants presented theresults of their efforts to the President
and the Vice President.

Voice of the Project Leader

We aim to create a company where all
employees can play an active role
Our company has many excellent female employees. I
hope we will be a company where all employees canwork comfortably and their ideas can be realized.

Members of DIAMOND
Project (Front row,
center:Otsuka)
Human Resources Dept.

Etsuko Otsuka

NGK SPARK PLUG Group CSR Report 2015 54

Post­retirement Reemployment
In 2001, we introduced a post­retirement reemployment system, with the aim of taking
advantage of long­accumulated 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

Employment of the Disabled
he ratio of disabled employees at NGK SPARK PLUG was 1.80% at the end of fiscal
2014. Although we actively expanded recruitment to meet the legally required ratio of
2.0%, unfortunately our results fell short.
In addition, we are endeavoring to create a workplace where employees, including
disabled employees, can do their jobs safely.
Percentage of Disabled Employees

NGK SPARK PLUG Group CSR Report 2015 55

Home > CSR > CSR Report 2015 > 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 quality­oriented 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 (on­the­job­training), throughwhich employees are trained to acquire
technologies and knowledge in their normal
working situation. We also offer OFF­JT (off­the­job­training), providing employees withnew technologies, knowledge, and skills
outside their respective workplaces. We havea wide range of OFF­JT programs that
include training by organizational level androle to provide necessary knowledge andskills, product quality education, environmentand safety education, manufacturing

Education and training

education, education in global business and career development support. During fiscal
2014, 6,486 employees participated in OFF­JT programs.
In addition, in fiscal 2014, we began the roll out to each of our departments of
Education & Training Planning (ETP), which is a method for drafting education andtraining plans that are necessary and meaningful in each department, in order to further
reinforce human resource development. ETP is a system for purposefully developing andmaintaining education and training in order to enhance the competencies needed toaccomplish operational processes in the implementation of business strategy in eachdepartment.
Education and Training System DiagramNGK SPARK PLUG Group CSR Report 2015 56

Home > CSR > CSR Report 2015 > With Our Employees > Labor­Management Relations/Compliancewith Labor Law

Labor­Management Relations/
Compliance with Labor Law
Labor­Management Relations
Labor­management relations should be oriented to the combined employer­employee
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.

Labor­Management Conferences
Labor­management 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 are working to reduce overtime in order to reduce total working hours. When pre­planned overtime is known about, the company management and the labor union confirm
the situation in the workplace and engage in consultation designed to keep working hours
within the target.

Anti­Harassment 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 anti­harassment committee responsible for the prevention of such behavior
through the company newsletter and provide level­specific 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 werehandled in 2013.

Greeting Campaign
We have been continuing our "greeting
campaign" since September 2008,
encouraging employees to say "goodmorning" with a smile at the start of eachday and "goodbye" when leaving work. Oncea month, in the morning and after work,
representatives of the labor union and the
management stand on the sidewalks at thepremises to greet employees.
Scene from the Greeting Campaign

NGK SPARK PLUG Group CSR Report 2015 57

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.
Voice of Our Human Resources Organizer

Deepening our own understanding and passing it
on to affiliates
In fiscal 2014, in order to strengthen governance as agroup, the NGK SPARK PLUG Group began reforming
human resources systems at affiliates, promoting theestablishment of the foundation for the group humanresources system. We also explained the basic rules,
philosophy, and important points to employees ataffiliates once again to achieve proper recognition ofharassment and the management of working hours.
Insufficient understanding of labor standards may very
well lead to violations of laws and regulations, so we areendeavoring on a daily basis to deepen our own
understanding and working to ensure affiliates fully
understand as well.

Human Resources Dept.

Kenji Takagi

NGK SPARK PLUG Group CSR Report 2015 58

Home > CSR > CSR Report 2015 > With Our Employees > Occupational Safety and Health Basic
PolicyOccupational Safety and Health
Basic Policy
Occupational Safety and Health Basic Policy
We strive for occupational safety and health as the starting point of businessactivities on the basis of respect for human life and dignity.
【Action Guidelines】
Observe laws and self­standards relating to occupational safety and health.
Reduce risks and elimination of work­related 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 company­wide
level, aiming to establish a corporate culture of "safety first."

OSHMS
With the aim of eliminating on­the­job accidents and creating a comfortable, safe work
environment, we have established an in­house 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 step­by­step improvement of our safety status, the progress and results ofsuch OSHM efforts are verified by our internal safety and health auditors as well as theplant safety and health committee and the central safety and health committee.

NGK SPARK PLUG Group CSR Report 2015 59

Safety and Health Promotion Organization

NGK SPARK PLUG Group CSR Report 2015 60

Targets & Results for Fiscal 2014 Evaluation standards achieved：○ Not achieved：×
Fiscal2014
TargetReinforcement of chemical
substance control

１．Eliminationof work­
relatedaccident

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

Reinforcement of safety
and health patrols (actionand equipment)

２．
Improvementof work
environment

Improvement of theworkplace environment(health)Promotion of self­
management of health
３．Promotionof health

４．Enhancedof education.
training andenlightenment

Fiscal2015
ResultExtended display of GHS
labels to subdividing
containers in order torecognize hazardous
materials

Implemented based on
promotion plan

Evaluation〇〇

Promoted
propermanagementof chemical
substances
Spread andentrenched risk
assessment inconjunction
companywide
changePromoted
comprehensive
hazard source
identification

Changed patrol technique toSafety Observations adopting
fixed point observation andtrialed at Komaki Plant. Will
extend to four plants in 2015

All hazardous material
workplaces maintained firstmanagement category.

Spread on­the­spot risk
prediction andpointing andcalling〇
Strengthened
safety andhealth patrols(conduct
aspect)〇〇Implementation of safety
and health education andtraining, use of education
through experience

Held and participated invarious safety and healtheducation seminars〇

Promotion and establishingof pointing and calling

Fixed pointing and callingstickers to roads andpassages in the plant andextended pointing and calling

Spread of the concept of
new risk assessment,
circulation of hazard source
information (workplaces
developing new risk
assessments)

Implementing based on
promotion plan

Implementation oftroubleshooting skill
evaluation and, as
required, risk prediction

Held briefing session at the
beginning of the fiscal year
and publicized companywide

Maintained
and improved
the working
environment in
the workplace(health aspects
and safety
aspects)
Promoted self­
managementof health

Implemented health advice
using results of health check­ups and held healthpromotion fairs at each plant
to trigger awareness of own
healthWorkplace checks for
personnel with suspected
health problems

TargetWorkplacechecks for
personnel withsuspected
healthproblems
Enhancedsafety andhealtheducation,utilizedlearning
throughexperience〇〇

Developed
procedures fornon­routine
work andpromoted
education (skill
evaluation)

NGK SPARK PLUG Group CSR Report 2015 61

Home > CSR > CSR Report 2015 > With Our Employees > Occupational Safety Activities

Occupational Safety Activities―― Workplace CSR Activities

Equipment Safety Activity in
Production Engineering Depts.
Equipment safety in production sites is
one of the important issues for amanufacturing company. Labor safety
initiatives are required that not only
conform to Japan’s Industrial Safety
and Health Act but also to international
standards such as ISO (International
Standards Organization) and IEC(International ElectrotechnicalCommission).
In this situation, we have been
striving to make production equipment
even safer at the stage of introduction
under the Equipment Standardization
Project since fiscal 2013. In addition todefining hazard sources and evaluating
safety based on risk assessment, andtaking measures to reduce risk, we are
identifying residual risk and providing
information to the production sites. In
this way, we are promoting theestablishment of a safe workplacethrough the introduction of equipment.

Communicating equipment risks usinglabels

Voice of Our Project Leader

We Provide Safe Equipment, Aiming toRealize “Zero Accidents”

Equipment Dept.

As suppliers of equipment, one of our goals is “zeroaccidents,” and we work to strengthen the provisionof information to ensure this does not end up as aunilateral hope, but is a recognition that is sharedwith the production sites.
Going forward, we will aim to provide even safer
equipment by working to upgrade the skills ofdesigners and reviewing measures to reduce risk.

Kazuhiro Nozawa

NGK SPARK PLUG Group CSR Report 2015 62

Elimination of Occupational Accidents
The results of labor and management’s joint safety and health activities, which include
risk assessment, on­the­spot risk prediction, and pointing and calling, are becoming
apparent little by little. In fiscal 2014, the total number of accidents fell substantially fromthe previous fiscal year across the company, and the total frequency rate also declined
from 1.25 to 0.65, recording a low figure significantly less than 1.
In fiscal 2014, we also reviewed the mechanism incorporating the root cause
identification process into investigations from the 6M standpoint with the objective ofstrengthening prevention of recurrence for the work accidents that do unfortunately occur,and we commenced operation of the mechanism in fiscal 2015.
Meanwhile, as there were a lot of accidents during commuting compared with anaverage year, although the other party was at fault in the majority of them, we willdevelop defensive driving, including the implementation of traffic risk prediction anddriving that anticipates the moves of other road users.
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, third­year 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, Kiken­Yochi (risk prediction) training and sharing examples of Hiyari­Hatto (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 cross­departmental 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.
Moreover, in fiscal 2014, we have been phasing in an inspection technique called“Safety Observation.” Under Safety Observation, we check workplace risks, primarily theactions of workers, by observing a fixed point in the workplace over a long period of time.

NGK SPARK PLUG Group CSR Report 2015 63

Toward the Spread and Consolidation of New Risk Assessment (RA)There are a variety of potential risks in theworkplace. New RA is a tool forsystematically and objectively studying andevaluating hazard sources related toequipment and work in the workplacefollowing the introduction of equipment andvisualizing the degree of danger in the formof a risk level. It is an activity that we havebeen expanding in stages since fiscal 2013.
We can pave the way to the creation of safe
and secure workplaces by determining theorder of priority according to the magnitudeof risk and implementing workplace
management measures that include
countermeasures to systematically reducerisk and awareness raising about hazardous
locations.

Scene from hands on RA training using
actual equipment

Voice of Our Safety and Health Leader

We Aim for Penetration and Entrenchment of
Risk Assessment
The power of every individual worker working on thefrontline is essential for the implementation of risk
assessment. In order to ensure that many people learn
the right risk assessment philosophy and techniques, wehold regular Practical Risk Assessment Training. The
training covers classroom lectures through to learning
about identifying and evaluating hazard sources andmanaging residual risk using actual equipment, and wehope that they apply these skills to risk assessment in
the workplace.

Environment and Safety
Management Dept.

Takahiro Kawakita

A text compiling safety
and health knowledge

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 (Wet­Bulb 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 2015 64

Home > CSR > CSR Report 2015 > With Our Employees > Health Promotion

Health Promotion
Health Promotion
We announced “Being your best physical and mental condition to your workplace andbring them to your home with good smile” as our company slogan. Self­discipline is a key
to the maintenance of one's condition, and we promote employee's autonomous healthmanagement efforts.
We also include health information in the company newsletter to raise employees'
health consciousness and promote self­management 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 self­management of health.

Strengthening Mental Health Care
We are working on had in­house andexternal Line­Care educational programs for
managers,and implementing to read the
Self­care hand book in our workplace tomake our employee prevent awareness of
disease and self­management of health.
Also we are strongly working on held in­house lectures and setting up the Support­line for employees who feel stress andproblems mentally.

The Self­Care 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 bus­hiking 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 Minami­Ise, Mie Prefecture.

NGK SPARK PLUG Group CSR Report 2015 65

Home > CSR > CSR Report 2015 > With Local Communities and International SocietyWith Local Communities andInternational Society―― Workplace CSR Activities

We Support a Professional Soccer
Team that Has a common Philosophy
Based on our social contribution policyof “contributing to society as a good
corporate citizen,” NGK SPARK PLUG
concluded an official partner agreementin January 2014 with FC GIFU, a
professional soccer club. Based in Gifu
Prefecture, a region with which NGKSPARK PLUG has strong ties, FC
GIFU actively conducts social
contribution activities under the themeof “a team for citizens of Gifu
Prefecture.”
In July 2014, we established theNGK SPARK PLUG Prize for the MVPof the season determined by the votesof supporters strengthening theconnections between the team and its
supporters and creating a platform topush for promotion to the J.League
Dividion 1. From now on, all of ouremployees, including those at groupcompanies, will be united in boostingup FC GIFU.

NGK SPARK PLUG thank you match

Voice of FC GIFU “Gifu Genki Activities” Leader

We will Bring Gifu to Life in Partnership with
Everyone at NGK SPARK PLUG!

Scene from the Doronko
Soccer Tournament

Under the slogan “Competing, Together: Bringing
Gifu to Life, Bringing Gifu Together,” we carried out
activities that contributed to the local community atotal of 467 times in 42 towns and villages in Gifu
Prefecture during the 2014 season. These activities
included holding soccer classes, participating in local
events, providing exercise classes at senior citizens’
facilities, soccer coaching at child care centers andkindergartens, and lecture meetings. We haveboasted the highest number of such activities in the
J. League for some time.
In the 2015 season, we will rename our social
contribution program “Gifu Genki Activities,” andfurther extend them to enliven Gifu in partnershipwith everyone at NGK SPARK PLUG based on ourdesire to bring Gifu to life.

NGK SPARK PLUG Group CSR Report 2015 66

Expanding our Locally Rooted Social Contribution Activities both in Japan and
AbroadNGK Spark Plug Middle
East FZE

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

Participated in Clean Up
UAE, organized by anenvironmental NGO in
Dubai, and conductedclean­up activities in thedesert.

Provided food and clothing
for children in anorphanage, who were
thrilled and sent thank you
letters.

NGK SPARK PLUG CO.,LTD.
Komaki Plant

NGK Spark Plugs (UK)Ltd.

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

Participated in andsupported a rally forwounded soldiers and theirfamilies.

Donated funds and provided
a training area by giving
access to company site incooperation with local
firefighting activities.

NNGK SPARK PLUG CO.,LTD.
Miyanojo Plant

NGK Spark Plugs (India)
Pvt. Ltd.

Participated in urban
planning to reduce traffic
accidents as members of acompany in Aichi Prefecture
which has the highest
number of fatal traffic
accidents in Japan.

NTK Ceramic Co., Ltd.
Ran blood donation drive atrequest of the Red Cross.

Hosted students on work
experience from local juniorand senior high schools,
and students experienced
plug shipment packing
work.

Ceramica e Velas de
Ignicao NGK do Brasil
Ltda.
Supported a local
basketball team as asponsor, contributing todevelopment of local sport.

Donated water coolers sothat children can drink coolwater at school in India,
where it is extremely hot insummer.

NGK SPARK PLUG Group CSR Report 2015 67

Home > CSR > CSR Report 2015 > 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,and voluntary 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 pointof view.
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 ensuring 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 2015 68

Environmental Action Plan
Environmental Action Plan
Item

Environmental Management

Business Activities

Social Cooperation

Fiscal 2015 Target

Promotion of globally unitedactions

Formulation of global ecological vision.

Promotion of environmental
activities relating tocorporate management

Transparentization of energy and waste costand construction of system to promoteactions 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 post­consumer
products

Establishment of recycling technology for
products and packaging materials

Reduction of CO 2
emissions in physicaldistribution

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 education2014 Targets and Results [40KB]NGK SPARK PLUG Group CSR Report 2015 69

Home > CSR > CSR Report 2015 > For Environmental Protection > Environmental Burdens from
Business Activities

Environmental Burdensfrom Business Activities
Environmental Burdens from Business Activities

NGK SPARK PLUG Group CSR Report 2015 70

Home > CSR > CSR Report 2015 > 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.
As of the end of fiscal 2014, 16 overseas Group companies are ISO 14001­certified. As aresult, 98% of the entire worldwide Group employee body works at ISO 14001­certified
sites.
ISO 14001 Certified Locations [70KB]

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.

NGK SPARK PLUG Group CSR Report 2015 71

PCB Control
We maintain strict storage controls for PCB waste stored at the Komaki Plant,
Headquarters Plant, and Nittoku Seisakusho Co., Ltd.

On­site 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 2014, we visited 47
companies.

Preventing Chemical Leaks
In order to prevent soil and water contamination caused by chemical leaks, we have
implemented countermeasures involving equipment that includes preventing leaks
through the development of double layered storage tanks and the early detection of leaks
by installing pipes above ground. Due to the enforcement of the revised Water Pollution
Control Act in June 2012, we were required to comply with structural standards by May
2015. We completed work to upgrade seven established facilities that are subject to therevised legislation before the deadline.

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 2014, we held a drill for protection
and treatment of leaks based on the
scenario of an overturned container duringtransport of waste liquid with leakage of thecontents. We also held a firefighting drill
based on a fire scenario.

Drill in the Komaki area

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 2014, in Japan, there was one case of legal­related improvement, two casesof improvements related to agreements with local municipalities, and two requests fornoise­related improvements. These cases were all promptly dealt with to prevent
recurrence. There were no violations of laws and regulations at our overseas production
sites in fiscal 2014.
Data on Air, Water Quality, Noise and Vibration [68KB]NGK SPARK PLUG Group CSR Report 2015 72

Numbers of Violations and Complaints(cases)Violations
Fiscal year

Complaints

2011

2012

2013

2014

2011

2012

2013

2014

NGK SPARK PLUG CO.,LTD.

0

1

0

1

3

2

0

2

Affiliates (Domestic)

1

1

0

2

1

1

0

0

Affiliates (Overseas)

－

1

0

0

－

－

0

－

Handling Violations and Complaints in Fiscal 2014
Classification

Plant/Company

Situation

Countermeasures

NGK SPARKPLUG CO.,LTD. Komaki
Plant

It was pointed out by thegovernment authorities that
although the location of facilities
subject to the Water Pollution
Control Act had been changed,
submission of written notification of
the change had been omitted.

We reported the facilities subject to
the Act for which the location had
been changed to the government
authorities. We are also considering
mechanisms to ensure that
notifications under environment­
related laws are not omitted.

Violations

Ceramic
Sensor Co.,Ltd.

The concentration of nitrogen inplant wastewater temporarily
exceeded the value agreed with
Komaki City. (While responding to
the situation, the concentration ofphosphorous temporarily
exceeded our voluntary value.)

We suspended the discharge of
wastewater outside of the plant andcarried out wastewater reclamation
at a waste disposer. We alsochanged the route of pipes toprevent a recurrence.

Violations

Ceramic
Sensor Co.,Ltd.

The pH value in septic tankdrainage temporarily exceeded thevalue agreed with Komaki City.

We replaced a broken pH meter in
addition to increasing the number ofpH meters, and reviewed our system
in order to strengthen monitoring.

Complaints

NGK SPARKPLUG CO.,LTD. Komaki
Plant

Noise occurred while we weredismantling equipment on thewest side of the No. 12 plant, andwe received a request for
improvement.

We reviewed the method of work
causing the problem and informed
all employees.

Complaints

NGK SPARKPLUG CO.,LTD. Miyanojo
Plant

Noise occurred during inspection
work due to an equipment
malfunction in the No. 3 Building
chip processing room, and we
received a request for
improvement.

We reviewed and standardized themethod for inspection work.

Violations

NGK SPARK PLUG Group CSR Report 2015 73

Environmental Accounting
What is important in promoting environmental management is to gain a grasp of thecosts 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.
In fiscal 2014, our environmental conservation costs were 11,560 million yen on a non­consolidated basis, and 12,527 million yen for the Group, an increase of 7.0% over theprevious fiscal year. The economic benefit associated with environmental conservation
activities totaled 235 million yen on a non­consolidated basis.
Environmental Conservation Costs and Economic
Benefits (non­consolidated)

Environmental Conservation Costs (Group)

Environmental Accounting [32KB]NGK SPARK PLUG Group CSR Report 2015 74Eco­efficiency
We calculate eco­efficiency by determining net sales per unit of CO 2 emissions andgenerated waste, and endeavor to improve it.
Fiscal 2014 saw an increase in both the CO 2 index and the waste index compared tothe previous fiscal year.
EEco­efficiency(Group in Japan)

Environmental Education
Environmental education is conducted toraise the employees' environmental
awareness. In fiscal 2014, courses on thebasics of environmental preservation,
environmental burden calculation methods,
and the environment management systemwere held a total of 63 times in all regions,and a total of 997 people attended courses.
Environmental education will be continued
in fiscal 2015 to improve the overall level ofthe environmental consciousness of theGroup employees.

Environmental education

NGK SPARK PLUG Group CSR Report 2015 75

Voice of Employee

Diligently Turning off Lights and Diligently
Saving Electricity
This training was the first time I have thought deeply
about the environment.
Knowing what kind of impact the exhaust gas fromthe car I drive and garbage I produce has on Japan andthe world, I wanted to work on environmental problems
and countermeasures in my immediate surroundings.
In addition, the Nino Headquarters Plant at SparkTec
TONO Co., Ltd., which is where I work, will experiencean expansion in its facilities and an increase in thenumber of employees in the future, so I want to make asmooth connection between environmental measuresand our facilities and the workplace environment to takethe initiative in carrying out environmental initiatives
starting with small things like diligently turning off lights
and conserving water.

Engineering Dept.
SparkTec TONO Co., Ltd.

Keisuke Tahara

Support 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 43 companies, and 41 of them have obtained
ISO 14001 or Eco­Action 41 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

6

8

Eco­Action 21

3

27

EMS Third­Party Certification Support Implementation Result
Topic
Eco­Action 21

No. of Companies Attending
4

NGK SPARK PLUG Group CSR Report 2015 76

Home > CSR > CSR Report 2015 > 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 2014, we reviewed our product assessment framework in order to incorporate
the LCA approach into the product design stage. Going forward, we will promote thedevelopment of products that can contribute to the environment throughout the lifecycle.

NGK SPARK PLUG Group CSR Report 2015 77

Developing Environmentally Friendly Products

Shaper Duo has been
accredited as anenvironmentally­friendly productby the Japan Cutting & Wear­
resistant Tool Association forconserving resources andenergy.

Cutting tools for hexagonal socket
machining of male screw heads ona lathe need to be durable.
Shaper Duo contributes toreducing the volume of tool waste
as it can last approximately 30
times longer than the conventional
carbide tools in which the cutting
blade is integrated with the holder.

Shaper Duo does not only have the advantage of conserving resources. The
hexagonal socket machining of male screw heads, which was previously carriedout through separate processes, can now be performed continuously
immediately after processing of the shaft with a small automatic lathe.
This makes it possible to integrate the processes, thus contributing toconservation of energy in production.

NGK SPARK PLUG Group CSR Report 2015 78

Home > CSR > CSR Report 2015 > For Environmental Protection > Substances of Environmental
Concern

Substances of Environmental Concern
Basic Philosophy
We have a three­step 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 thanthat, we aim to reduce the use and emission of substances of environmental concern so
as to minimize 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 Non­Containing Declarations, submissionof various data with IMDS, AIS, etc., and handling investigations and audits regarding
our management systems.

Handling within the GroupWe conduct non­containment 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 non­containment and reduce their use.
Management System

NGK SPARK PLUG Group CSR Report 2015 79

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 besought, while making efforts to
reduce the use 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
to find existence/non­existenceof applicable substances.

Those not prohibited or restricted but that requiremonitoring.

Voice of Our Controls Organizer

We strive for thorough management of chemical
substances
Amidst progressing globalization, requests from
customers relating to regulation of substances ofenvironmental concern are increasing every year.
In order to provide customers with even safer
products, we strive for thorough management of thechemical substances in all the products we handle andcompliance with laws and regulations in partnership with
the Environment and Safety Management Dept.

Electronic Component
Engineering Dept.

Masanori Nishi
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 (non­consolidated)

NGK SPARK PLUG Group CSR Report 2015 80

Emission Volumes of PRTR Substances (group)

PRTR data for Each Business Site [38KB]
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 2015 81

Home > CSR > CSR Report 2015 > For Environmental Protection > Global Warming

Global Warming
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 long­term efforts led by the Energy Conservation Promotion Office.

Meeting Our Target for Reducing CO 2 Emissions
In fiscal 2014, our CO 2 emissions was 163,600 tons, meeting our fiscal 2014 target of
175,000 tons and also lower than in fiscal 2013. In addition, intensity of emissions
improved by 17% compared with fiscal 2007. The target was attained through energy
transformation in the manufacturing process, updating of facilities (for energy efficiency),
achieving an energy­savings effect by revising our manufacturing conditions, andtransferring processes to affiliated companies.
Transition of Emission Volume of Energy­Origin CO 2
(Offices and Plants)

Trend in CO 2 Emissions (Group companies in Japan and overseas
manufacturing and sales subsidiaries)

NGK SPARK PLUG Group CSR Report 2015 82

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 2014, our energy use
intensity was 0.393 kL/100 million yen, which fell below the target of 0.413 kL/100 million
yen.
This is attributable to measures by transportation departments to save fuel by reducing
packaging weight through improving packaging materials and using appropriate trucks forthe weight of the load.

Transition of CO 2 Emissions as Consigner※Includes portion outsourced to freight carriers
Energy Conservation in the Office
We implement daily energy­saving measures in our workplaces, including turning off
lights and computers during breaks and keeping office air conditioning at moderatelevels, 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.
In fiscal 2014, we worked to combine PC servers, update air conditioners, and convert
lighting to LED.

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 large­scale solar power generator unitthat can generate a maximum of 107 kW of electricity, and small hydro­electric power
equipment. In fiscal 2013, we generated a total of 190,000 kWh, equivalent to a
reduction of 62 tons of CO 2 .

NGK SPARK PLUG Group CSR Report 2015 83

Home > CSR > CSR Report 2015 > 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 2014, the waste intensity was 0.040 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 [25KB]NGK SPARK PLUG Group CSR Report 2015 84

Home > CSR > CSR Report 2015 > 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 2014, the water use intensity was 4.90 m 3 /million yen. Water use intensity
improved by 35% compared with fiscal 2007 due to conserving water by changing
manufacturing conditions and upgrading and updating to equipment with a high water­savings effect.
Trends in Volume of Tap Water/Well Water UsedNGK SPARK PLUG Group CSR Report 2015 85

Home > CSR > CSR Report 2015 > For Environmental Protection > Environmental Communication

Environmental Communication―― Workplace CSR Activities

Establishing System forEnvironmental Commendations
We have launched a system ofenvironmental commendations for the
NGK SPARK PLUG Group in Japan tocommend outstanding environmental
initiatives with the aim of encouraging
environmental activities. The best
examples from improvements
implemented in each area are selected
to receive commendations from the
President at the Central Environment
Committee. In fiscal 2014, which was
the first year of the system, the four
examples below received
commendations.
Area

Department

Greening of area around Miyanojo
Plant

Details

Komaki Plant

Sensor Production
Engineering Dept.

Increased batch size in combustion furnaces

Komaki Plant

Production Support
Engineering Dept.

Response to Revised Water Pollution Control Act

Miyanojo Plant Entire plant

Outstanding Green Factory (Minister of Economy,
Trade and Industry Award)

NTK CeramicCo., Ltd.

Integrated management of firing production plansacross entire plant

Management Dept.

Voice of Our Maintenance and Management Department

We will continue to promote creation of anenvironment that coexists with thecommunity

Environment Group
Miyanojo Nittoku Alpha
Service Co.,Ltd.

The Kagoshima Miyanojo Plant, where an
integrated production system for spark plugs has
been established, produces the largest number ofplugs for a single plant in the world.
Up to now, we have been promoting thebeautification and greening of the environment inaddition to carrying out diverse initiatives over many
years. These include measures to tackle noise using
plantings, development of a ground with natural turf
which is provided to local high school rugby teams
for matches and training camps, and theestablishment of cherry trees and a promenade on
the south side of the plant, which promotes healthfor employees who are encouraged to walk.
The hopes involved in each of these individual
activities have led to the receipt of this award, andwe take pride in being the department involved in
the maintenance and management.

NGK SPARK PLUG Group CSR Report 2015 86

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 easy­to­understand 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.
In fiscal 2014, we held seven tours and welcomed 756 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
and comments from participants on how we can improve things. In fiscal 2013, we
hosted seven such meetings, with a total of 18 participants.
In fiscal 2014, we hosted eight such meetings, with a total of 21 participants.

Local Clean­up Activities
We regularly hold clean­up 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.
In fiscal 2014, a total of 808 people participated in such activities.

Clean­up activity ( Headquarters Plant)

Clean­up activity (Ise Plant)

Participation in clean­up activities by each business site [20KB]NGK SPARK PLUG Group CSR Report 2015 87

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 2015 88

Home > CSR > CSR Report 2015 > Third­Party Review

Third­Party Review
Third­Party Review

Mr. Tomohiro Tokura
Verification Specialist
Sustainability Service Division
SGS Japan Inc.
The Message from the President referred to the status of initiatives on the mostimportant organizational issues for the direction of the organization as a whole such as
the enhancing and restructuring of business and the establishment of new businessventures. The direction of business is of great interest to all stakeholders, and it iscommendable that it was explained by the President himself. I heard in the interview thatthe progress on these issues is reported in shareholder communications and throughother means whenever necessary. I think it would be good if consideration were given to
the timely provision of information to all stakeholders, such as mentioning shareholder
communications in the CSR Report. In addition, I can also commend the fact that the
Message from the President reported that NGK SPARK PLUG was found in violation ofcompetition and anti­trust laws in the United States and South Korea and pledged toprevent future reoccurrences as an indication that the Company is addressing the issue
as an organization and fulfilling the duty of accountability. The explanation of theincidents in the main body of the report, the introduction of online links, and further
efforts to provide information are commendable as signs of actions aimed at enhancing
transparency.
The position of CSR is expressed systematically in an easy­to­understand manner using
the diagram in Our CSR. The ten CSR policies for each of the ISO 26000 core issues
are reported in connection to the Code of Conduct and the Corporate Philosophy.
Consequently, the integration between the strategic direction of the organization(Corporate Philosophy) and CSR is communicated well. The flow of CSR promotion,
which is implemented by various expert committees and working groups under the CSR
Committee is also clear, and this report has made the organization’s action in relation to
CSR more concrete by disclosing the ten initiative areas and 30 objectives in our sixth
medium­term management plan. The vow to prevent recurrence and the strengthening of
the compliance system was also reported in the Message from the President as
prevention of reoccurrence for the violations of anti­trust laws. I look forward to thereflection of targets related to these activities and the achievements in the next report.
As was also touched on in Our Business Activities, the activities of the NGK SPARKPLUG Group extend worldwide, and the responsibilities to society of the Group as awhole are also wide­ranging. I think that the coverage of the efforts of overseas Group
companies everywhere in the report, including the introduction to CSR activities inThailand in the Special Feature, is making the report commensurate with the size of theorganization. However, I feel that the current reporting is still fragmentary. I will be
continually looking forward to more reporting on activities overseas in the future, such as
the creation of integrated global reporting indicators centered on the ten initiative areasand 30 objectives in the management plan first followed by disclosure of information
based on the indicators, although this will be a challenging initiative.

NGK SPARK PLUG Group CSR Report 2015 89

Reporting on the environment is extremely comprehensive, presents diverse information,
including topics, numerical data, and graphs, and it is also easy to understand thehistory. In particular, the provision of support for suppliers to create EMSs iscommendable as one answer to solving environmental issues in the product lifecycle. On
the other hand, I feel that there is insufficient presentation of data to support reporting on
issues other than the environment. While there is some data, such as the disclosure of
the number of inquiries to the corporate ethics hotline, the overall focus is on topics.
There is also some information for which the scope of the information (head office only,
entire group in Japan, entire organization including overseas group companies) disclosed
is unclear. I think it would be good for consideration to be given to supplementing
information with data as much as possible and stating the boundaries for data todisseminate accurate information. In recent years, there are many items seeking
verification of environmental data in questionnaires such as those for CDP and the Dow
Jones Sustainability Index. This means that many investors are seeking third­party
verification relating to the accuracy of reporting data. I expect that global corporations
such as the NGK SPARK PLUG Group will publish data externally after receiving third­
party verification in the future as demands from investors in particular intensify.
* This comment does not express any conclusion judging whether or not the reportpresents data that is accurately measured and calculated and free from omissions inaccordance with the standards for the preparation of environmental and other reports
generally deemed to be fair and reasonable.

On Receiving the Third­Party Review
I would like to express my gratitude to Mr. Tokura for his assessment of our CSR Report2015 and his valuable feedback. This is the third time that Mr. Tokura has provided thethird­party review for us starting in 2013.
We put together the CSR Report with the desire of making all of our various stakeholders
familiar with the NGK SPARK PLUG Group’s CSR activities. In our CSR Report 2015,
we highlighted specific new products and businesses and projects to create new
businesses in the 2nd SHINKA (Renovating) of NITTOKU SHINKARON (The Evolutionof NGK SPARK PLUG).
In addition, we have featured the areas that we consider to be of particular importance tothe achievements of our CSR activities as Good Performance on each subject of thedigest version. Going forward, we will continue to disclose areas that are of great interest
to all stakeholders in ways that are approachable and easy to understand.
Meanwhile, with regard to the enhancement of information based on data for social andeconomic areas other than the environment which was pointed out by Mr. Tokura, we willseek to create globally integrated reporting indicators centered around our CSR Policy
and medium­term CSR goals while continuing to make improvements.
In addition, Mr. Tokura pointed out the need for objective assessment, including third­
party verification of data disclosed, because of increasing calls for the accuracy of data,
including from investors. We accept that this is also a challenge and would like toaddress it in stages.
Sincerely responding to the review we have received, we will continue to further promote
our CSR activities while striving for fair information disclosure aimed at highly transparent
management so that NGK SPARK PLUG continues to be a company that is familiar toand loved by people worldwide.

Masaya Futamura
General Manager, CSR Promotion Office
NGK SPARK PLUG CO., LTD.
NGK SPARK PLUG Group CSR Report 2015 90

Environmental Action Plan
Fiscal 2014 Targets and Results
Evaluation standards

Business Activities

Environmental
Management

Item

Evaluation

Fiscal 2014 Results: Not achieved

Fiscal 2015 Target

Promotion of globallyunited actions

Drawing up a framework of
Global Eco Vision

Established system and approachfor Global Eco Vision and proposed
it to the fiscal 2014 2H Central
Environment Committee

Formulating Global Eco Vision

Promotion of environmental activities
relating to corporate management

Application method examinationof material flow cost accounting

Decided not to apply MFCA as resultof verifying it in model processes andconsidered using alternative methodof visualizing costs

Visualizing energy and waste costs
and creating mechanisms topromote efforts for reduction

Reduction of
CO2 emissions

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

Emissions: 163,648 tons
Intensity: 0.588 tons/million yen

Emissions: down 10%
from FY2007
Intensity: down 8% from FY2007

Reduction of disposal ofwastes and valuable materials

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

Intensity: 0.0395 tons/million yen

Intensity: down 30% from FY2007

Reduction of water use

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

Intensity: 4.903m3/million yen

Intensity: down 8% from FY2007

Reduction in PRTR emissions

Reexamination of recycling
equipment

Reexamined equipment, but did not
introduce equipment

Emissions: down 80%
from FY2007

Development of environmentallyfriendly products

Construction of development system
which takes LCA into consideration
when designing productsReviewed standards for implementation of
product assessments and included LCA approach
into checklist for product development

Expansion of LCA to all the company’s
operation sites

Enhancement of the managementof chemical materials

Enhancement of management
system on chemical materials when
designing products

Did not establish methods forinvestigating substances containedin purchased supplies

Creation of a management systemon chemical materials including
supply chains

Promotion of green
procurement——

Examination of products recycling
technology

Product recycling technologies were
not examined

Implementation of package
materials reuse

There were no noticeable results

Establishment of recycling
technology for products andpackaging materials

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

0.393KL/hundred million yen

Domestic distribution energy per unit
production: down 8% from FY2007

Planning environmentallyfriendly sales strategies

Conducted sales promotion forenvironmentally-friendly products

Enrichment of PR relating toenvironmental efficiency of products

Conducted PR for environmentally-friendly
products at expos and in catalogues

Disclosure compliance state inoversea plants

Disclosed status of legal complianceat overseas plants in CSR Report

Disclosure of global materialbalance

Disclosed CO2 emissions, including
overseas plants, in CSR Report

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

There was no disclosure of reduction
cases in overseas plants

Continual implementation of
the environmental conferences

Implemented sales promotion forenvironmentally-friendly products

Acceptance of visitors to factories
by stakeholders

Conducted PR for environmentally-friendly
products at expos and in catalogues

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

Enhancement of social
contribution to communities

Enhancement of activities
for biodiversity preservation

Participate in activities forbiodiversity preservation

Participated in Miyagawa basinconservation activities, etc.

Enhancement of biodiversity
preservation activities

Enhancement of level-specifictraining in the domestic groups

Continual implementation ofenvironmental education

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

Did not formulate mechanism forproviding environmental educationfor employees seconded overseas

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

Improvement of
disclosing information

Social Cooperation

Fiscal 2014 Target: achieved

Enhancement ofcommunication

Enhancement ofenvironmental consciousness—

Expansion of green supplier system

Promotion ofenvironmentally-friendly
sales activities

Improvement of disclosing global
environmental information

Enhancement of communication
with communities

Enhancement ofenvironmental education

NGK SPARK PLUG Group CSR Report 2015 91

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 2015 92

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

Takenami
Plant

Item

Noise

Vibration

Type
Morning
Daytime
Evening
Night
DaytimeNight
Soot and dust

Air
NOx

Drain
(public waterarea)

Miyanojo
Plant

Noise

Vibration

Fourth spot
Fourth spot
Fourth spot
Fourth spot
Fourth spot
Fourth spot
Chiller
3T water boiler
Chiller
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 spotDaytime
Night

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

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
45~50
50
50
50~60
55
55
45~50
50
50
40~50
45
45
65
55
—
60
50
—
300
240
—
100
80
180
144
—
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

dB

60

—

55

dB

65

—

60

dB

60

—

55

dB

50

—

50

dB
dB

60
55

—
—

52
48

Average

MAX

39.6
40.5
40.3
39.4
15.0
15.0
—
<0.007
—
69.0
7.4
4.9
5.6
9.0
<1.2
<0.05
<0.05
<0.05
<0.05
<0.01
0.2
1.8
0
42.0
44.5
46.2
48.3
44.6
46.1
46.2
48.0
47.9
52.2
52.0
48.8
52.4
49.6
42.4
44.5
47.5
47.9
48.7
48.6
45.1
41.7
43.0
46.2
47.8
44.9
45.4
44.2
31.3
32.0

43.0
45.5
45.0
42.5
15.0
15.0
—
<0.007
—
69.0
7.8
7.0
7.6
9.0
<2.5
<0.05
<0.05
<0.05
<0.05
<0.01
0.5
2.2
0
42.7
47.4
47.8
50.3
47.0
49.8
50.2
49.3
48.8
54.3
53.6
50.4
54.3
50.8
44.3
47.9
51.8
50.1
49.9
51.2
50.2
43.5
46.3
47.3
48.1
47.0
48.9
46.3
40.0
40.0

NGK SPARK PLUG Group CSR Report 2015 93

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

Item

Type

Unit

Air

Soot and dust Firing furnace
pH
SS
BOD
COD
n-hexane extract
Phenols
Total chromium
Copper
Zinc
Iron
Lead
NitrogenPhosphorus
Manganese
Coli bacteria
East
Morning
East
DaytimeEast
Evening
East
Night
Daytime (all directions)Night (all directions)Firing furnace: YA-5, 6
Firing furnace: YA-7, 8
Soot anddust
Absorption heater/chiller: FGL
Absorption heater/chiller: FGDL
Firing furnace: YA-5, 6
Firing furnace: YA-7, 8NOx
Absorption heater/chiller: FGL
Absorption heater/chiller: FGDL
pH
SS
BOD
COD
n-hexane extract
Cyanogen
CopperZinc
Lead
Fluorine
Boron
Phenols
Ammonia
Coli bacteria
MorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night
First spot
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

mg/Nm3
—
mg/l
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

Drain(public waterarea)
Ise Plant

Noise

Vibration

Air

NTK
Ceramic
Co., Ltd.
(Iijima Plant)

Drain(public water
area)

Noise

Air

NTK
Ceramic
DrainCo., Ltd.
(public water(Nakatsugawa
area)
Plant)dB

dB

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
—
250
100
—
—
—
—
—
—
—
—
—
—
160
128
—
—
—
—
—
—
—
—
—
—
—
—
—
—
0.1
—
—
—
—
55
60
55
50
65
60

—
—
—
—
—
—
—
—

250

250
mg/Nm3

0.08
—
—
—
—
55
58
55
50
60
55

—
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

counts/cm3

Average

MAX

<5
—
—
—
4.5
—
—
—
—
—
—
<0.01
—
—
—
—
43.4
47.6
51.0
47.3
<50
<50
<5
<5
<5
<5
<10
<10
29.5
32.0
7.4
2.38
1.47
3.08
<1
<0.01
0.03
<0.05
<0.05
0.40
1.20
<0.02
6.0
25.8
49.0
48.0
48.0
48.0
6
0
7.6
7.4
3.2
4.0
2.3
3.1
6.4
10.2
<0.5
<0.5
6.9
5.6
0.10
0.50
124.4
0.0

<5
—
—
—
8.0
—
—
—
—
—
—
<0.01
—
—
—
—
43.4
47.6
51.0
47.3
<50
<50
<5
<5
<5
<5
<10
<10
33.0
37.0
7.5
8.0
4.3
4.5
<1
<0.01
0.03
<0.05
<0.05
0.60
2.40
<0.02
10.0
98
49.0
48.0
48.0
48.0
6
0
8.2
8.1
8.0
9.0
5.8
6.2
9.0
22.0
<0.5
<0.5
9.4
9.4
0.31
1.20
270.0
0.0

NGK SPARK PLUG Group CSR Report 2015 94

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

Item

Type

First spot
Second spot
Morning
Third spot
Fourth spot
First spot
Second spot
DaytimeThird spot
NTK
Fourth spot
Ceramic
First spot
Co., Ltd.
Noise
Second spot
(Nakatsugawa
Evening
Third spot
Plant)
Fourth spot
First spot
Second spot
Night
Third spot
Fourth spot
Daytime
Fourth spot
Night
Fourth spot
Soot and dust
Air
NOx
pH
SS
Drain
NTK
BOD
(sewer)Ceramic
COD
Co., Ltd.
n-hexane extract(Kani Plant)
MorningFirst spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot
pH
SS
BOD
COD
Drain
(public water n-hexane extract
area)
Lead
Nansei Ceramic
NitrogenCo., Ltd.
Phosphorus
Coli bacteria
Morning
East
DaytimeEast
Noise
Evening
East
Night
East

Kamioka
Ceramic
Co., Ltd.

Drain(public water
area)

Noise

Unit

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the city
60

60

58

65

65

63

60

60

58

50

50

50

dB

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

mg/l

counts/cm3
dB

pH

—

SS

65
60
100
150
5.8~8.6
200
160
160
5
50
60
50
45
—
—
—
—
—
—
—
—
—
55
60
55
50

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

63
58
90
135
5.9~8.5
180
144
30
4.5
50
60
50
45
—
—
—
—
—
—
—
—
—
55
58
55
50

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

counts/cm3

3000

—

300

—

60
65
60
50

Morning
Daytime
Evening
Night

Fourth spot
Fourth spot
Fourth spot
Fourth spot

dB

60
65
60
50

Average

MAX

50.0
52.5
53.3
49.8
50.5
51.3
51.0
50.0
50.0
50.5
49.8
51.3
48.8
46.8
47.5
44.8
35.0
28.0
3
5
7.1
2.0
3.2
3.3
1.0
48.0
49.0
49.0
45.0

51.0
52.5
54.0
51.0
53.0
51.5
52.0
51.0
52.0
52.0
52.0
52.5
49.5
47.0
48.0
45.5
35.0
28.0
3
5
7.1
2.0
3.2
3.3
1.0
48.0
49.0
49.0
45.0

43.4
47.6
51.0
47.3
7.7
7.6
7.6
2.5
15.0
19.0
1.0
21.0
33.0
2.0
17.0
36.0
<0.5
1.0
0.8
<30
55
36
41.0
42.0
42.0
42.0

43.4
47.6
51.0
47.3
7.9
7.6
7.6
4.0
25.0
20.0
1.6
39.0
38.0
2.9
23.0
39.0
<0.5
1.5
1.1
<30
80
42
41.0
42.0
42.0
42.0

NGK SPARK PLUG Group CSR Report 2015 95

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

Item

Type

pH

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

Drain(sewer)BODn-hexaneextract
Noise
Vibration

Morning
Daytime
Evening
Evening
Night
pH

SS
Drain
(public water
area)
BOD
n-hexaneextract

Morning

Nittoku
Seisakusho
Co., Ltd.
(OguchiPlant)

DaytimeNoise

Evening

Night

Daytime
Night
pH
SS
Drain
(public water BOD
area)
n-hexane extract
Coliform bacteria countMorningFirst spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot
DaytimeFirst spot
Vibration
Night
First spot
Vibration

Nittoku
Seisakusho
Co., Ltd.
(Satsuma
Plant)

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
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

Unit

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

—

5.8~8.6—

5.8~8.6

mg/l

—

—

200

mg/l

—

—

160

mg/l

5

—

5

dB

55

55

55

dB

60

60

60

dB

55

55

55

dB

50

50

50

65
60
—
—
—
—
—
50
60
50
45
60
55

60
55
—
—
—
—
—
—
—
—
—
—
—

60
55
—
—
—
—
—
50
50
50
45
60
55

—

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

Average
7.7
7.5
7.2
1.0
180
18.0
3
140
49.0
—
5.4
<0.5
62
61
60
60
61
7.4
7.1
4.4
9.4
4.1
6.9
<1
<1
55
51
51
50
51
52
56
54
58
53
55
52
53
52
52
48
53
53
50
49
49
48
50
49
49
51
8.3
4
4
2.5
20
65
65
65
45
45
47

MAX
7.7
7.5
7.2
1.0
180
18.0
3
140
49.0
—
5.4
<0.5
64
62
62
61
62
7.4
7.1
4.4
9.4
4.1
6.9
<1
<1
55
51
51
50
51
52
56
54
58
53
55
52
53
52
52
48
53
53
50
49
49
48
50
49
49
51
8.3
4
4
2.5
20
65
65
65
45
45
47

NGK SPARK PLUG Group CSR Report 2015 96

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

Item

Type

pH
n-hexane extract
Daytime
Soot and dust
Air
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
Nichiwa
Kiki
Co., Ltd.

Drain(sewer)
Noise

Unit
—
mg/l
dB
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

Regulation value
Voluntary
Low/Local Agreement standard
value
regulation with the cityMore than 5.0—
6.0~8.0
50
—
40
65
—
63
—
—
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

dB

75

70

70

dB

70

60

60

dB

dB

75
75
75
70
75
70

—

—

60
65
60
50
65
60

Average

MAX

7.1
2.25
61.2
13.0
38.5
7.2
less than 1
1.3
less than 0.5
43.9
50.9
45.4
43.2
0
68.3
7.2
1.1
1.7
5.1
1.0
3.9
0.2
1.4
1.4
55.6
57.2
58.9
53.2
51.5
51.2
57.6
53.5
55.9
57.1
52.4
49.4
49.7
56.1
43.1
45.1
45.1
42.5
48.0
48.0

7.2
4.0
61.2
16.0
39.0
7.2
less than 1
1.3
less than 0.5
47.6
56.2
48.3
44.2
0
87.0
8.3
3.0
6.0
11.0
1.0
47.2
6.8
2.7
2.7
58.6
58.3
61.6
54.9
55.4
54.1
59.8
56.1
58.1
59.5
53.8
51.9
52.3
58.5
43.1
45.1
45.1
42.5
48.0
48.0

NGK SPARK PLUG Group CSR Report 2015 97

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

Non-consolidated

Classification

Investment

Major efforts

NGK SPARK PLUG Group*

ExpenseInvestment

Expense

2013

2014

2013

2014

2013

2014

2013

2014

13

14

387

305

38

46

767

774

Global environmental Global warming prevention, energy
conservation costconservation

63

50

408

303

110

77

491

352

Resource circulation
cost

Eﬀective resource utilization, industrial waste
treatment/disposal

14

5

194

207

27

114

384

388

Sub-total

91

69

989

815

175

237

1,643

1,513

Upstream & downstream cost

Employee environmental education, EMS
construction and operation

0

0

0

0

0

1

1

16

Management activity cost

Employee environmental education, EMS
construction and operation

21

4

346

451

23

14

433

516

R&D cost

R&D of products promoting environment
preservation

1,181

1,236

8,030

8,680

1,181

1,236

8,031

8,680

Social activity cost

Nature protection, aﬀorestation,
environmental ads

0

0

211

295

0

1

216

302

0

0

7

10

0

0

8

10

0

0

0

0

0

0

9,584 10,250

1,379

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

1,293

1,310

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

1,490 10,332 11,037* Excluding Nittoku Alpha Service Co., Ltd.

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

Cost saving

2013

2014

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

185

Energy cost saving achieved from energy conservation eﬀorts

65

45

Reduction of water expenses through water saving

2

0.40

Waste disposal cost saving achieved by resource conservation and recycling eﬀorts

1

3

Total

253

235

187

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
2013

2014

21,358

19,611NGK SPARK PLUG GroupDiﬀerence fromthe previous
ﬁscal year

Diﬀerence fromthe previous
ﬁscal year

2013

2014

–1,74734,39933,200–1,199

1,321

1,134

–187

Gas (million m3)

1,144

921

–223

LPG (million m3)

366

3,514

–150

819

7,812

–378

Tap water (m3)521,041

402,204–118,836

727,203

670,395–56,808

Well water (m3)372,238

349,423–22,815

703,847

693,320–10,527

Quantity of PRTR law-regulated substances
handled (tons)

643

653

10

911

939

29

CO2 emission from energy consumption (tons)

112,542

100,402–12,140

173,776

163,648–10,128

Eﬀectively utilized mass (tons)

8,216

7,345

–871

11,758

10,793–965

Buried, incineration (tons)

92

109

17

148

204

31

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

1.9

1.6

0

151

148

–4

Water
consumption

Waste

NGK SPARK PLUG Group CSR Report 2015 98

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)

Cabinet
order
No.
53
80
87
144
296
297
300
308
392
400
405
412
53
80
87
132
144
297
300
308
309
400
405
407
412
87
144
308
405
412
305
300
309
53
80
87
144
300
308
309
354
53
80
87
300
305
354
355
453

* 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

Quantity
handled

Ethylbenzene
5,444
Xylene23,351Chromium and chromium (III) compounds
16,455Inorganic cyanide compounds (except complex salts and cyanates)
1,195
1,2,4-trimethylbenzene
7,110
1,3,5-trimethylbenzene
3,270
Toluene71,164
Nickel
99,147n-hexane
4,057
Benzene2,496
Boron compounds
1,908
manganese and its compounds
1,046
Ethylbenzene
2,915
Xylene13,819Chromium and chromium (III) compounds
3,687
Cobalt and its compounds
1,988
Inorganic cyanide compounds (except complex salts and cyanates)
3,206
1,3,5-Trimethylbenzene
1,278
Toluene30,882
Nickel
29,352
Nickel compounds
697
Benzene693.0
Boron compounds
36,815poly (oxyethylene) alkyl ether (alkyl C=12-15)
Manganese and its compounds
1,412
Chromium and chromium (III) compounds
30,022Inorganic cyanide compounds (except complex salts and cyanates)
2,425
194,491
Nickel6,185
Boron compounds
1,934
manganese and its compounds
52,895
Lead compounds
1,071
Toluene749
Nickel compounds
Subtotal
653,157
4,680
Ethylbenzene
2,520
Xylene5,316
Chromium and chromium (III) compounds
3,384
Inorganic cyanide compounds (except complex salts and cyanates)
73,370Toluene
1,359
Nickel
1,207
Nickel compounds
11,088di-n-butyl phthalate
1,439
Ethylbenzene
8,153
Xylene4,435
Chromium and chromium (III) compounds
68,212
Toluene533
Lead compounds
23,423di-n-butyl phthalate
1,493
bis (2-ethylhexyl) phthalate
3,392
Molybdenum and its compounds

NTK Ceramic(Kani Plant)

354 di-n-butyl phthalate

2,800

Nansei Ceramic

305 Lead compounds
384 1-bromopropane

32,973
2,923

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

Air

Quantity transferred

0
1

5,443
23,350
1
11

1

373

16,080
1,183
7,109
3,270
71,152

1
12
41
1
1

99,106
4,056
2,495

2
65
176
0
1

0
2
212

5
61

255
17
671
3,778
842
15
518
2
4
449
220

0.1
186

16

1,118

4

0

1,033
1,657

1,651
1,030
2,179
9,864
0
1,693
1,275
30,667

2,844
1,972
995

28,898
416
692.9
43
1

35,452374
28,365

2,425
132

733
1,204
1,505
810

384

194,491
5,976
1,934
46,799

77

13

0

6,096
44
170
24 17,379
3,175
1,710
845
1,834

294
579
167,609 466,545

911

4,471
640

73,370
1,359
1,207
1,423
842
4,774
2,337
2,281
305
9,778
1,342
305

514
2,911
65,931

1,023

5,855
76

82
467
2,098
228
7,790
76
3,086

1,695

1,105

3,957
1,900

29,016

16,095
13,937
3,441
286,172 146,064
939,329 147,268

9,665

16,0950384

1312,322
3,372
55,40324 72,782

1,614
1
69
18,190 66,514
185,798 533,059

NGK SPARK PLUG Group CSR Report 2015 99

WasteVolumes of Waste Generated at Each Business Site

The volume of waste generated in ﬁscal 2014 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

653

634

19

97.1%

Komaki Plant

3,168

3,097

71

97.8%

Miyanojo Plant

3,444

3,428

16

99.5%

Ise Plant

182

181

1.1

99.4%

Takenami Plant

5.8

4.4

1.3

76.8%

7,453

7,345

109

98.5%

NTK Ceramic Co., Ltd. (Iijima Plant)

768

718

51

93.4%

NTK Ceramic Co., Ltd. (Nakatsugawa Plant)

295

294

0.7

99.8%

Subtotal

Affiliates

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

61

61

0.3

99.6%

NTK Ceramic Co., Ltd. (Komaki Plant)

600

584

16

97.4%

Nansei Ceramic Co., Ltd.

8.6

8.6

0.0

100.0%

Kamioka Ceramic Co., Ltd.

174

173

0.2

99.9%

Nittoku Seisakusho Co., Ltd.

323

319

3.4

98.9%

Nichiwa Kiki Co., Ltd.

5.4

5.4

0.0

99.2%

82

79

2.2

97.2%

Ceramic Sensor Co., Ltd.

1,222

1,200

22

98.2%

Tokai Taima Kogu Co., Ltd.

5.4

5.4

0.0

100.0%

Nittoku Unyu Co., Ltd.

0.5

0.5

0.0

99.5%

Subtotal

3,543

3,448

95

97.3%

Total

10,997

10,793

204

98.1%

Nittoku Spark Tech Tono Co., Ltd.

NGK SPARK PLUG Group CSR Report 2015 100

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

2

49

Komaki Plant

4

148

Miyanojo Plant

1

42

2

53

9

292

Iijima Plant

1

22

Nakatsugawa Plant

2

17

Kani Plant

2

25

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

39

Head Oﬃce Plant

4

54

Oguchi Plant

450

Satsuma Plant

Nittoku Seisakusho
Co., Ltd.

4

47

Nichiwa Kiki Co., Ltd.

2

60

Nittoku Spark Tech Tono Co., Ltd.

3

25

Ceramic Sensor Co., Ltd.

4

76

Tokai Taima Kogu Co., Ltd.

2

12

Subtotal

34

441

Total

43

733

Clean-up Activities Initiated by a Local Government, etc.
Number ofparticipants(people)Name of factories
and companies

Event name

NGK SPARK PLUG CO., LTD.
(Komaki Plant),

Komaki City cleanup activities

Komaki City

Around Komaki City14NGK SPARK PLUG CO., LTD.
(Komaki Plant),

Komaki City cleanup activities

Komaki City

Around Komaki City Auditorium

13

Ceramic Sensor Co., Ltd.

Komaki City cleanup activities

Komaki City

Around Komaki City

8

Ceramic Sensor Co., Ltd.

Komaki City cleanup activities

Komaki City

Around Komaki City Auditorium

5

NTK Ceramic Co., Ltd.
(Iijima Plant)

Picnic for the Environmentof the Tenryu River System

Nagano Techno Foundation

Conﬂuence of the Otagiri Riverand the Tenryu River

35

Held byLocation

NGK SPARK PLUG Group CSR Report 2015 101