NGK Spark Plug Group

Environmental & Social Report

2006Corporate profile
NGK Spark Plug Co., Ltd.
14-18, Takatsuji-cho, Mizuho-ku, Nagoya
October 26, 1936
47,869,270,000 yen(1) Manufacturing and sales of spark plugs andrelated products for internal combustion engines(2) Manufacturing and sales of new ceramics
and their applications
Group companies 35 subsidiaries (10 in Japan, 25 overseas), 7 affiliates
Corporate nameHead Office
Foundation
CapitalBusiness［Semiconductor components］●Ceramic IC packages●Organic IC packages●Packages for communication devices●Antenna Switch Module［Electronic components］●Dielectric filters●Dielectric resonators●Electronic igniter●Ultrasonic transducers［Plugs, related products］

Communication
media related area

●Spark plugs for automobile and motorcycle●Spark plugs for marine engines and farm equipments●Glow plugs for diesel engines●Igniter plugs for aircraft●Igniter plugs for rocket●Resister cable, resister cover

Semiconductor［Sensors］

Electronic components●Exhaust gas oxygen sensors●Universal A/F heated exhaust gas oxygen sensors●Knock sensors［Other related products］●Ceramic-based parts for engines●QGS/QHS

Businessareas

Automobile
related area
Plug

［Cutting tools］

Ceramic
related area

●Ceramic inserts●Cermet inserts
Applied ceramic technology●Coated chips
Cutting tool
●Micro grain carbide chips［Technical ceramics］●Ceramic tube for VCB●Parts for semiconductor
manufacturing equipments●Ceramic heaters●Silicon rectifier containers●Ozonizer●Bio ceramics●Oxygen concentrator& Social Report 2006
01 Environmental
NGK Spark Plug Group Environmental and Social Report

SensorIndex◇ Corporate profile01◇ Editorial Policy02◇ Toward the realization of new value 03• Corporate philosophy• Corporate code of conduct
1 Compliance05

2 Consumers and clients

07

3 Fair dealing09

4 Communication

10

Financial Data
5 Environmental conservation

11

Environmental load from business activities
Basic philosophy on environment○Management

Editorial Policy○Factory/Office○Products

This seventh report has been prepared in accordance with our corporate code of
conduct with the aim of clearly describing the concepts, mechanisms and resultsof all our activities.
[Reference] “Environmental Reporting Guidelines” issued by the Ministry of the Environment of Japan

Reporting scope
Intended readers

Period covered

All stakeholders including customers, investors, shareholders,
residents of neighboring communities, business associatesand employees.
From April 1, 2005 to March 31, 2006
* Some other very recent activities and cases are also included.

Reporting scope○Communication
○Mind

Data

15
19
25
29
30
31

6 Social contribution

33

7 Employees

35

8 Civil society

39

9 Cultural respect

39

10 Ethics

40◇ Messages from stakeholders

41◇ Third party examination

42

Environmental aspects : NGK Spark Plug Co., Ltd. and its 11
domestic affiliate companies
Social aspects : NGK Spark Plug Co., Ltd.

NGK Spark Plug GroupFor the purpose of this report, “NGK Spark Plug Group” represents NGK
Spark Plug Co., Ltd. as well as the 11 majority-owned domestic
subsidiaries other than Tokai Taima Kogu Co., Ltd.
Head Office/
Factory

Nittoku Alfa Service Co.,Ltd

IijimaCeramic Co., Ltd.

Kamioka
Ceramic Co., Ltd.

Komaki Factory

Nittoku Unyu
Co.,Ltd

Nakatsugawa
Ceramic Co., Ltd.

Nittoku Seisakusho
Co., Ltd.

Miyanojo
Factory

Kani
Ceramic Co., Ltd.

Nichiwa Kiki
Co., Ltd.

Ise Factory

Nansei
Ceramic Co., Ltd.

Tono
Ceramic Co., Ltd.

Group AGroup BNGK Spark Plug Co., Ltd.

Affiliates

Ceramic Sensor
Co.,Ltd: Block (joint acquisition of ISO14001)
Factories and companies in blue : ① Subsidiaries issuing site reports ② Consolidated subsidiaries
Classification into Groups A and B abolished from FY2006.
* Details of environmental conservation activities are described in the site reports of
the respective subsidiaries. Their contact numbers are listed on p.31.

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report02Toward the realization of new value
November 2006 marks the 70th anniversary of our
founding. We acknowledge that the development of ourgroup would never have been achieved without the trust of
our stakeholders, whose advice and support we sincerely
appreciate.
With exports representing approximately 80% of sales,
NGK Spark Plug Group is seeking respect and popularity
from the people of the world based on the principle ofproduct quality and through optimal global production. We
recognize the need to keep a good balance between the
pursuit of sound economic results, proper information
disclosure and ethical and transparent corporate
management in order to maintain the trust of theinternational society.
The phrase “recycling-oriented society” is often heard
nowadays, and the environmental activities aimed atcreating such a society include the reduction ofenvironmental impact and risk in all corporate behavior
through, for example, the development and introduction of
eco-friendly products, improvement of productivity,
enhancement of resource and energy efficiency, andreplacement of environmentally hazardous substances. By
nurturing environmental awareness and handing down
eco-technologies, our employees can utilize their ingenuity
to simultaneously pursue conservational and economic
goals. If this enables us to create, propose and realize
new value, then society and companies will both benefit.
This year, we have revised our environmental report into
an “Environmental and Social Report” which complies fully
with our corporate code of conduct. We trust that thisreport will help you to understand how we strive to remainsocially responsible, and we welcome your candid
opinions.

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

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

& Social Report 2006
03 Environmental
NGK Spark Plug Group Environmental and Social ReportCorporate philosophy

Organization

AuditorBoard ofAuditors

President

Board ofDirectors

Aiming to become a proposal-making corporation,
we continue to present new values to the world.
With global views and ideas,we pursue new values
linking technology and people.
SloganManaging Directors
Committee

Board
Committee

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

Corporatephilosophy
Secretarial Office

Corporate Planning
Department

General Administration
Department

Personnel
Department

Communication Media
Components GroupAccounting and
Finance Department

Purchasing
Department

Information System
Department

Automotive
Components GroupIntellectual Property
Department

Quality Assurance
Department

Production Engineering
Department

With full use of the most suitable technology and our accumulated experience,

Production Support
Engineering Department

Commitment

Environment and
Safety Management
Department
Administration
Department,
Komaki Factory

Commitment

R & D Center

1

Actionguideline

Tokyo Office3

2Management
policyTechnical
Ceramics Group

we continue striving to offer new values to the peoples of the world.

Management policy
Cutting Tool
Division

Fine Ceramics
Division

Sales and Marketing
Headquarters

Engineering andDevelopment DivisionCorporate
code of conduct

Semiconductor
Components Division

Adopted in November 1996

Electronic
Components Division

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

Sales and Marketing
Headquarters

are dedicated to pursue management based on trust and confidence.

Action guideline

Spark Plug Division

make full use of his or her personality and capability. With all our power we

Sensor Division

We offer a working environment in which each one of us is encouraged to

NGK Spark Plug Group will behave with social decency in accordance with the following ten
principles in order to put into practice our corporate philosophy expressed in our slogan:“Contributing to the people of the world by offering new value that deepens mutual trust and looks to the future.”1

We will respect human rights and abide by all laws and international rules as well as the spirit of the law, whether inJapan or overseas.

2

We will apply our best technology and accumulated experience in order to provide socially useful and safe products and services thatsatisfy consumers and customers and gain their trust while giving due consideration to the protection of individual data and customer data.

3

We will perform business transactions properly based on fairness, transparency, and free competition. We will also
maintain healthy and correct relations with governments and public administrations.
We will place importance on communication not only with stockholders but also with the wider society, and release
corporate data through our everyday public relations activities

4
5

We recognize that dealing with environmental problems is an issue for all mankind that absolutely requires the presence
and action of corporations, and we will take action in an autonomous, proactive and speedy manner.

6

We will perform social contribution activities as a “good corporate citizen”.

7

We will respect the diversity and individuality of our employees and provide them with a safe and pleasant working
environment that utilizes their abilities.

8

We will staunchly oppose antisocial movements and organizations that pose a threat to the order and safety of civilsociety.

9

We will respect local cultures and customs during our international corporate activities and carry out business that
contributes to the growth of host countries.

10

Our top management will lead by example in the spirit of these principles, striving to cultivate a philosophy of logic by disseminating themthroughout the company, publicizing them among group companies and customers, and incorporating them into the company structure.
Revised November 2004

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report04

1chapter

We will respect human rights and abide by alllaws and international rules as well as the spiritof the law, whether in Japan or overseas.
● NGK Spark Plug Group is a global corporation with an export ratio of 80% and production and salesorganizations worldwide. To maintain the trust of international society, we will “respect human rights
and abide by all laws and international rules as well as the spirit of the law, whether in Japan oroverseas,” namely the respect of human rights and compliance, as the basis of our actions.
● To earn respect and popularity from the people of the world, each employee of our group will behavein accordance with our code of conduct and with social decency.

■Overseas Network

NTK Technical Ceramics
Polska Sp.zo.o.

NGK Spark PlugEurope GmbH
188 people

NTK Technologies,Inc.
59 people

54 people

NGK Spark Plug
Middle East FZENGK Spark Plugs(France) S.A.S.

12 people

34 people

NGK Spark Plugs(U.K.) Ltd.

Siam NGK Spark Plug
Co.,Ltd.

73 people

230 people

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

NTK Cutting Tools Korea
Co.,Ltd.

490 people※Number of employees includes
West Virginia Factory

58 people

Woo Jin Industry
Co.,Ltd.
224 people

NGK Spark Plugs
Canada Limited
NGK Spark Plug (Shanghai)
96 people
Co.,Ltd.
Taiwan NGK Spark Plug
29 people
Co.,Ltd.
NTK Technical Ceramics(Taiwan) Ltd. 7 people

NGK Spark Plug
Industries Europe S.A.S.

41 people

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

45 people

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

NGK Spark Plugs(Thailand) Co.,Ltd.
4 people

NGK Spark Plug (Australia)
37 people
Pty. Ltd.

NGK Spark Plugs
Malaysia Berhad.
150 people

NGK Spark Plugs
Singapore Pte Ltd

P.T. NGK Busi
332 people
Indonesia

3 people･････QMS (ISO 9001, TS 16949, etc.) certified･････EMS (ISO 14001) certified
people ･･･Number of employees& Social Report 200605 Environmental
NGK Spark Plug Group Environmental and Social Report

Ceramica e Velasde Ignicao NGK
do Brazil Ltda.
1,084 people

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

Manufacturing & sales organization
Sales organization
Holding company

QMS/EMS certification status as of the end of May 2006
Number of employees as of the end of December 2005

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

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

Ceramica e Velas de Ignicao NGK do Brazil Ltda.

NGK Spark Plug Industries Europe S.A.S.

NGK Spark Plugs Malaysia Berhad.

Siam NGK Spark Plug Co.,Ltd

P.T. NGK Busi Indonesia

Taiwan NGK Spark Plug Co.,Ltd.

NGK Spark Plug (Shanghai) Co.,Ltd.

Woo Jin Industry Co.,Ltd.

NTK Cutting Tools Korea Co.,Ltd.

NTK Technical Ceramics Polska Sp.zo.o.

■Domestic Network

Kamioka Ceramic Co.,Ltd.

142 people

Tono Ceramic Co.,Ltd.

116 people

Komaki Factory
Nittoku Unyu Co.,Ltd.
Ceramic Censor Co.,Ltd.

2,934 people
25 people
424 people

Ise Factory

397 people

Nansei Ceramic Co.,Ltd.

52 people

Iijima Ceramic Co.,Ltd.
450 people

Nakatsugawa Ceramic Co.,Ltd.
439 people

Kani Ceramic Co.,Ltd.

154 people

Nittoku Seisakusho Co.,Ltd.
Miyanojo Factory
569 people

Nichiwa Kiki Co.,Ltd.
Head Office/
Factory
985 people

112 people

56 people

Nittoku Alfa Service Co.,Ltd.
Tokai Taima Kogu Co.,Ltd.

100 people

35 people

Head Office/Factory
Affiliate･････QMS (ISO 9001, TS 16949, etc.) certified･････EMS (ISO 14001) certified
people ･･･Number of employees

QMS/EMS certification status as of the end of May 2006
Number of employees as of the end of December 2005

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report06

2chapter

We will apply our best technology and accumulated
experience in order to provide socially useful and safe
products and services that satisfy consumers and customers
and gain their trust while giving due consideration to theprotection of individual data and customer data.
● The corporate philosophy (commitment) of NGK Spark Plug Group declares, “With full use of the most suitable
technology and our accumulated experience, we continue striving to offer new values to the peoples of the world”.
● To put this philosophy into practice, we will develop and manufacture innovative products to satisfy the demands ofvarious customers and achieve our mission of providing products with the same level of safety and quality from any
production site in the world.
● From this fundamental standpoint, we will provide accurate and appropriate information on our products and services
and handle and protect individual data and customer data related to our business activities in a proper manner.

Quality Management System
Under its corporate philosophy, NGK Spark Plug Group has a global viewpoint and spirit of “manufacturing one stepahead” to enhance every aspect of our business quality, including improving productivity and making our product andbusiness structure more sophisticated through the participation of everyone concerned. NGK Spark Plug Group also
aims to improve customer satisfaction and contribute to the development of the society.
Celebrating its 70th anniversary in FY2006, NGK Spark Plug Group established a new basic quality policy this February
in order to enhance the quality of “people, products and mechanisms” from the original concept of TQM, and fulfill its
corporate social responsibility.

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

Quality audit

Customer First
In order to provide products and services that satisfy our customers, we strive
to understand their continuously changing needs from their point of view, andmake proposals exceeding their expectations according to the philosophy of“quality first”.
Total Involvement
People are fundamental elements of a company and the most importantmanagement resource. While respecting the individuality of employees andenhancing each one's ability, autonomy and creativity, we share common views
on problems and solve them through collective efforts.
Continuous Improvement
The development of a company requires swift and suitable responses to thechanging social environment, market conditions and customer demands. For
this purpose, we are continuously improving the effectiveness and efficiency of
all management resources including our organization, system, processes,
products and services.

Risk Management
Business activities involve many risks such as natural disasters, serious accidents and economic downturns. We recognize
these risks, and strive to prevent those that can be foreseen while preparing adequate responses to those that cannot.

Preparedness for large-scale earthquakes
NGK Spark Plug Group has offices in Aichi Prefecture and other parts of theTokai region, many areas of which are designated as Areas with Intensified
Measures against Earthquake Disaster in the event of a Tokai earthquake.
There is also concern about a combined Tonankai and Nankai earthquake, so
we have established countermeasures against large-scale earthquakes toensure the safety of our employees and minimize damage to our businessactivities.
Evacuation drill at Head Office Factory& Social Report 2006
07 Environmental
NGK Spark Plug Group Environmental and Social ReportProtection of personal information
In April 2005, the Personal Information Protection Law was fully enforced. At
NGK Spark Plug Group, we also protect our customers’ personal information
through internal briefings, etc. that fully instruct employees on how to handle
such important data. For customers,
we have published our “Guidelines on
Handling Personal Information” on our
website.

Internal briefing

http://www.ngkntk.co.jp/policy/

Disclosure of product information
To publicize the products and latest technologies of NGK Spark Plug Group to customers, we have made presentationsat numerous trade shows. In FY2005 too, we received many visitors at various such exhibitions and were able to respondto their questions and requests. Information on our products and technologies is also provided in our website andcatalogs.
Date

Trade shows

April 6-8
May 21-23
October 19-22
October 22-November 6
November 9-11
December 1-9
January 13-15
February 10-12
March 10-12
March 31-April 2International Ceramic Exhibition 2005
Automotive Engineering Exposition 2005
Mechatronics Technology Japan 2005
Tokyo Motor Show 2005
Microwave Workshops and Exhibition 2005
SEMICON Japan 2005
Tokyo Auto Salon 2006
Osaka Auto Salon 2006
Osaka Motorcycle Show 2006
Tokyo Motorcycle Show 2006

Tokyo Motor Show 2005

NGK Spark Plugs Plug Studio
There are many different spark plug partnumbers, and the type and required quantity
differ depending on the model of the car inwhich the plug is used. The Plug Studio is forcustomers who want to replace plugs bythemselves, allowing them to search forsuitable plugs.
http://www.ngk-sparkplugs.jp
SEMICON Japan 2005

Automobile components

Communication media components

Technical ceramics

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report08

3chapter

We will perform business transactions properly based on fairness,transparency, and free competition. We will also maintain healthy
and correct relations with governments and public administrations.
● We believe that a business environment based on the rules of “fair, transparent and freecompetition” both in Japan and overseas is the key for NGK Spark Plug Group and its products togain the trust of worldwide consumers and customers. NGK Spark Plug Group will also proactively
develop such “fair, transparent and free competition”.
● It is important to establish healthy partnerships with our consistent suppliers who are vital for ourbusiness activities, and we will therefore build mutual trust with a long-term perspective and carryout proper purchasing transactions.
●To achieve optimal procurement worldwide, NGK Spark Plug Group will perform transactions basedon fairness, transparency, free competition and rationality on the international stage, too. We will
also maintain transparent relations with governments and public administrations and avoid actions
which may raise doubts of collusion, etc.

Nittoku Suppliers Association
The Nittoku Suppliers Association is composed of suppliers delivering raw materials, equipment, parts, etc. to NGKSpark Plug Group. The objective is to promote efficient management and improve productivity through the exchange of
information between members. The association also organizes workshops and sessions for presenting examples ofimprovement on an as-needed basis, and seeks the concurrent progress of NGK Spark Plug Group and its suppliers.

Top management workshop

ColumnSession for presenting examples of improvement

Inclusion in major SRI-related stock indices

SRI (Socially Responsible Investment)
SRI is based on a comprehensive
evaluation that takes into accountnot only profitability and growth
expectation but also social, ethicaland environmental aspects suchas legal compliance, employment,
human rights, consumer response,and contribution to society and thecommunity, in order to seek asteady return. SRI funds such as
eco funds are also growing inJapan. NGK Spark Plug Group isincluded in an SRI index andvarious funds, and will continue to
strive to be a trustworthy company.

& Social Report 200609 Environmental
NGK Spark Plug Group Environmental and Social Report

Name

Publisher

FTSE 4 Good Global Index

FTSE International (UK)(as of May 2006)[FTSE 4 Good Global Index]
An index developed by FTSE, a UK-based company, for SRI in 2001. Companies are rated on theirperformance in the three key areas of environmental sustainability, social relations and human rights.

Inclusion in major SRI/eco funds
Name

SRI fundInvestment trust company

Eco Balance (Umi to Sora)

Sumitomo Mitsui Asset Management (September 2005)

Eco FundDLIBJ Asset Management(October 2005)

Mitsubishi UFJ SRI Fund (Family Friendly)

Mitsubishi UFJ Asset Management(November 2005)

AIG-SAIKYO Japan CSR Fund (Suiren)

AIG Global Investment Corp.

(December 2005)

Rainbow Fund (Global Environment Fund)

Nomura Asset Management(February 2006)

AIG/Hirogin Japan CSR Fund (Class C)

AIG Global Investment Corp.

(March 2006)

AIG/Resona Japan CSR Fund (Seijitsu no Mori)AIG Global Investment Corp.

(March 2006)

4

chapter

We will place importance on communication not only withstockholders but also with the wider society, and release corporate
data through our everyday public relations activities.
● To enhance our credibility in Japan and overseas, we seek to practice “transparent management” bydisclosing information on our business and financial performance as well as other everyday actions,
including environmental activities, via our website and other media.
● In order to respond to the trust of our stakeholders in the capital market, such as our shareholders
and investors, we endeavor to increase our market value and provide information on our management,
including our growth strategy, through IR activities in a timely and proper way.
● We are aware of our social responsibility not only to our shareholders but to a wide range of otherstakeholders such as customers, suppliers, employees and local residents, and will therefore deepen
mutual understanding by strengthening our PR and communication channels and promotinginteractive communication.

Financial Data
(Account settlements as of March, 2006)

Sales (million yen)
Recurring profits (million yen)
Net profits for the year (million yen)
Net profits per share (yen)Number of employees (people)

Non-consolidated

Consolidated

250,361
36,10621,09594.75
5,106

284,884
43,13025,104112.82
9,815* Number of employees as of March 2006

(million yen)

0

2002

2003

2004

2005

(FY)

Net profit per share for the year

2004

(FY)

2002

2004

21,095
25,104

14,03817,147

7,872
11,117

2003

2005

(FY)

9,406
4,915

5,106

9,815

9,284
4,916

94.75
112.82

62.98
77.01

9,306

2003

2001

Number of employees

5,053

2002

0

2005

5,884
7,347

36,106
43,130

5,000

9,417

2001

35.21
49.84

21.48
20.80

60

25.86
32.36

80

0

2003

20,00010,00010,000

100

20

2002

(people)

120

40

2001

25,00015,000

5,132

(yen)

2001

30,000

5,002
4,843

50,000Net profits for the year

(million yen)

22,496
27,711

250,361
284,884

210,496
241,185

45,00040,00035,00030,00025,00020,00015,00010,0005,000
012,788
19,163100,000

195,784
228,776

150,000

192,002228,928200,000

186,701
221,419

250,000

12,26415,018300,000

Recurring profits

10,664
10,761

Sales(million yen)

2001

2002

2003

2004

2005

8,000
6,000
4,000
2,000

2004

2005

0
(FY)

：Non-consolidated(FY)：Consolidated

IR Activities
NGK Spark Plug Group provides
business information such as
business content, performance andstock prices to shareholders andinvestors, while also holding IR events
to directly answer their questions. In
FY2005 too, we participated incompany guidance seminars and two
events for public investors, where we
received various comments andquestions from many visitors.

Nagoya Stock Exchange IR Expo 2005

Nomura Asset Management Fair 2005

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report10

5chapter

We recognize that dealing with environmental problems
is an issue for all mankind that absolutely requires the presence
and action of corporations, and we will take action in anautonomous, proactive and speedy manner.
● To contribute to the battle against global warming and the establishment of a recycling-oriented society,
we are committed to measures such as energy saving, zero waste discharge, recycling and enhanced
chemical control.
● For the simultaneous pursuit of environmental conservation and economic growth, we will strive to
reduce environmental impact and risk in all business activities through the improvement of productivity,
enhancement of resource and energy efficiency, and development and use of alternative substances. We
also aim to develop, introduce and disseminate innovative technologies, products/services and businessmodels which can contribute to solutions for environmental problems.
● We will proactively develop responses to environmental issues based on our corporate philosophy (oraction guideline): “Ever onward! Always mindful of what is the best course, we swiftly put it into action.”

Material balance

INPUT
Business sites in Japan
Input
Type

Energy

Paper
Water

EnergyCategory
Purchased electricity
Gas
LPG
Gasoline
Photocopy paper
Tap water

Business sites in Japan
542,187 kwh
7,440 m3
120 Kg150 KL
7.1 tons
3,974 tons

Category
OfficeTransportation
Recycled waste
Landfill/burning disposal
Wastewater

Business sites in Japan
198 tons
348 tons
11.3 tons
3.2 tons
3,974 tons

Purchased electricity, Gas, LPG and Grade A crude oil：Use in production
Gasoline and Diesel oil：Use in tests and transportation
Classification
Non-consolidated
NGK Spark Plug Group
Purchased electricity 211,710,000 kWh 329,670,000 kWh
15,130,000 m3
14,280,000 m3
Gas
8,894 tons
4,228 tons
LPG
1,883 KL
1,883 KL
Grade A crude oil
836 KL819 KL
Gasoline
181 KL
88 KL
Diesel oil

OutputType
CO2 from energy
consumption
Waste
Wastewater

Paper
Paper：Use of photocopy paper, packaging materials, etc. (estimated)
Classification
Paper

Non-consolidated
2,312 tons

NGK Spark Plug Group
2,609 tons

Main raw materials
Ceramic materials and metals ： Purchased amount
Reused elements： Reuse of ceramic materials
Classification
Ceramic materials
Metal materials
Reused elements

・Factors used to calculate CO2
Japan Auto Parts Industries Guideline to Methods of
Association (2001)
Calculating Emissions ofGreenhouse Gases from
Category CO2 conversion factor Business Sites
Purchased 0.330 kg-CO2/kWhelectricity
Gas
2.558 kg-CO2/m3
LPG
3.007 kg-CO2/kg
Grade A
crude oil 2.712 kg-CO2/L(Ministry of the Environment)
Category CO2 conversion factor
2.32 kg-CO2/L
Gasoline
2.62 kg-CO2/L
Diesel oil

・Not including energy consumption and CO2 emissions due totransportation outsourcing.
・For some operation sites that have no installations to measuredischarged volume, the wastewater volume is taken as the combined
volume of tap water and well water.

& Social Report 2006
11 Environmental
NGK Spark Plug Group Environmental and Social ReportNon-consolidated

8,111 tons

NGK Spark Plug Group
14,065 tons
21,285 tons
11,980 tons

Other materials/auxiliary materials
Plastics, chemicals, oils,: Use in different divisions (estimated)other materials and other gases
Classification
Plastics
Chemical substances
Oils
Other materials
Other gases

Non-consolidated
539 tons
8,152 tons
943 tons
884 tons
11,514 tons

NGK Spark Plug Group
1,830 tons
10,960 tons
1,022 tons
1,146 tons
15,101 tons

Environmental load from business activities
The material balance of NGK Spark Plug Group is shown below, indicating the resources and energy used for ourbusiness activities, manufactured products and discharged waste. Recognizing the input and output of our businessactivities helps us to obtain an overall picture of environmental impact.

CO2 from
energy consumption
Production, test, transportation
CO2 emissions from energy consumption(electricity, gas, etc.)

Water

Classifi
cationNonconsolidated

NGK
Spark Plug Group

Production 124,189 tons 179,310 tons
Test
2,018 tons
2,018 tons
Transportation
433 tons
149 tons

Tap water：Use of tap water and industrial water
Well water：Use of groundwater
Recycled water：Reuse of water on-site after purification
Classification Non-consolidated NGK Spark Plug Group
994,442 tons
Tap water
801,684 tons
Well water
935,164 tons 1,067,387 tons
Recycled water 1,150,196 tons 1,288,728 tons

PRTP-regulated
substances
Air and water
Emissions of materials reported indifferent areas into the air and water
Classifi
cationNonconsolidated

Air
Water

NGK
Spark Plug Group

13 tons
0.3 tons

130 tons
1.0 tons

Waste
Recycled waste
Amount of waste disposed of by recycling
contractors (including the waste sold)

Landfill/incineration
Amount of waste used as landfill or incinerated
by contractors
Classifi
cationNonconsolidated

NGK
Spark Plug Group

Recycled
waste
Landfill/burning
disposal

21,168 tons
121 tons

23,678 tons
401 tons

Wrapping/
packaging materials
Plastics, paper and cardboard
Use in different shipping divisions (estimated)

Wastewater

Classifi
cationProduct
shipment

Wastewater
Amount discharged to sewage
or public waters
Classifi
cationNonconsolidated

NGK
Spark Plug Group

Wastewater

1,146,763 tons

1,397,836 tons

Nonconsolidated

689 tons
Plastics
1,421 tons
Paper
Cardboard 1,107 tons

NGK
Spark Plug Group

981 tons
1,432 tons
1,850 tons

Products
Amount shipped from different divisions
Classifi
cationProduct

Nonconsolidated

NGK
Spark Plug Group

30,666 tons

OUTPUT
Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report

12

chapter

5 Basic philosophy on environment

Environmental declaration
NGK Spark Plug Group will strive for harmony with society and the global environment while serving the people of
the world, offering new value based on the principle of high quality throughout the entire life cycle of ourenvironmentally friendly NGK spark plugs and NTK new ceramic products.
To achieve this, we have formulated an environmental action plan based on our environmental policy as a way of
accepting our social role and responsibility as a trusted corporation. With the participation of everyone concerned,
we will pursue the development of a sustainable society and business operations.
(Revised April 2004)

Environmental action plan and results
Achieved ：○ Unachieved：× Ongoing ：△ItemTargets for 2004 – 2005

Environmental
Achieve 2004-2005 targets ahead of Eco Vision 2010
management system Promote certification of Japanese offices and overseas affiliates

Factory/
OfficeProducts

Communication

Mind

Page No.

○
○
○
○
○
○
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○
0 cases
2 cases
○

―
15
―
18
―
―
17
―
16
16
40

Promote combination with QMS and OHSMS
Introduce eco-efficiency for warming
Investigate and research Kyoto mechanism
Promote construction of environmental management data system (*1)
Introduce environmental accounting to Group B <completed in FY2004>
Environmental
Investigate and research material flow cost accounting
accounting
Zero environmental accidents and environmental complaints
Environmental risk
Zero cases of environmental law violation
Compliance
Construct CSR management system
Reduction of 1% in CO2 emissions (compared with FY2001)
Energy［FY2005］Manufacturing divisions emissions per unit of resources down 4% Manufacturing divisions ○Non-manufacturing divisions emissions
down 4% Non-manufacturing divisions ×
Introduce clean energy○
Achieve zero emissions (min. 98% rate of effective utilization)
Waste matter×［FY2005］ Groups A and B
Reduce waste emissions (compared with FY2003)［FY2005］ NGK Spark Plug
Total emissions
down 10%×Groups A and B
Total emissions
down 5%Investigate and research the reuse and recycling of used products△
Study changing to internal treatment of waste matter○
Reduce use of tap water and well water
Water resources［FY2005］ NGK Spark Plug
Total used
down 10%×Groups A and B
Total used
down 5%
Improve eco-efficiency of office supplies etc.
Green purchasing○［FY2005］ 90%
Reduce emissions of substances subject to PRTR law
Hazardous［FY2005］ NGK Spark Plug
Total emissions 8.3 tons
substances(down 50% on 2002)
×Groups A and B
Total emissions per unit of resources(down 20% on 2001)
Disuse all substances harmful to the ozone layer end of 2005
×
Not use prohibited substances ranked as hazardous△
Spread LCA procedures throughout company
Eco-design○
Introduce eco-efficiency△
Introduce environmental labels
×
Introduce green supplier system
Green procurement○
Centralize transportation fuel management
Distribution△
Promote replacement with eco-cars○
Social environmental reports Issue annually
Disclosure○
Site reports Issue annually○
Hold stakeholder meetings○
Promote acceptance of environmental visits to factories○
Exchanges with NGO and NPO organizations△
Continuous implementation of regional clean-up activities
Community○
Participate in environmental exhibitions and environment-related events○
Natural environment Promote greening of factories○
Promote introduction of environmental education programs
Education and○Environmental conferences Hold annually
instruction○
Environment page in company magazine Include every month○

Environmental
operations

Management

Achievement*1: With the start in FY2004 of preparations for the introduction and operation of an environmental management
information system, the target was revised from “promoting establishment” to “introduction”.

& Social Report 2006
13 Environmental
NGK Spark Plug Group Environmental and Social Report

19
20
21
21
―
―
22
22

24

24
24
―
―
―
23
20
22
29
29
29
29
―
29
29
29
―
30
30

(drawn up in April 2004)

Environmental policies
Management

We will abide by all laws, regulations, protocols and voluntary standards relating to environmental
conservation. We also aim to increase our environmental efficiency by continually trying to enhance ourenvironmental management system (EMS) and performance.

Factory/office

We will remain constantly aware of the need for environmental harmony, working to prevent air, earth andwater pollution, use energy and resources more effectively, and reduce waste materials.

Products

We will work towards the development, design, procurement, manufacture, sale, distribution and disposal ofenvironmentally friendly products.

Communication

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

Mind

We will strive to raise awareness of environmental conservation through environmental education and publicity
activities as well as the dissemination of these policies among all our employees. We will also seek theunderstanding and cooperation of our business associates.
(Revised April 2004)

NGK Spark Plug Group Eco Vision 2010 and targets for FY2006
Item

Eco Vision 2010

Targets for fiscal 2006

Environmental
management
systemSharing of environmental policy by relatedcompanies including overseas

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

Support ISO14001 certification of overseas automotive
related production sites
Formulate NGK Spark Plugs' global environmental
declaration and environmental policy
Reconfirm relevant legislation centrally and at sites
Revise environmental impact assessment standards(including indirect departments)
Reexamine expert committees and panels and form
them into a smoother functioning organization
Obtain OSHMS accreditation

Centralization of environmental
management data control

Establish rules for the use of the environmental management information
system in the regional secretariats and conduct stable operations

Management
Environmental
operations

Reflection of environmental performance inbusiness evaluation

Start operating a system of collecting environmental
data from overseas offices
Establish NGK Spark Plugs' environment related standards
Revise NGK Spark Plugs guidelines
Create tool for converting environmental effect toamount of money
Develop and implement GHG reduction program
Reduction targets NGK Spark Plug
: 5,700 tons
Affiliated companies : 1,891 tons
Reduction targets NGK Spark Plug
: 100,000m3
Affiliated companies : 13,800m3
Establish methods for recycling used products
Check current state of industrial waste at overseas
manufacturing locations
Reduction targets NGK Spark Plug: 4,744 tons
Affiliated companies : 122 tons
Promote volume reduction of liquid waste
Study recycle residue of waste from each site that has
undergone commissioned treatment
Complete HCFC225 substitution
Reduce VOC emissions
Carry out uniform control with MSDS at NGK Spark Plug
Establish standards for environmental pollutant auditing
Hold LCA study sessions and LCA evaluation of all
departments' products
100 companies (expand toward mainly raw material andparts manufacturers)
Study cooperative transport and modal shift
Release environmental news items and topics
frequently on Internet
Issue social environmental reports
Support and participate in NGO and NPO activities
Continue to participate in community environmental
events, etc.
Internally publish environmental education materials
that can be used when needed
Build environmental education system
Campaign for implementing energy conservation
proposals(Revised April 2006)(Established April 2006)

Environmental
accounting

Promotion of CSR management
Integration of environmental accounting
and management accounting

Prevention of
global warming

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

Effective use ofresources

Efficient use of water resources
EPR (extended producer responsibility) operations
Achievement of zero emissions by relatedcompanies including overseas
Reduction of waste emissions

Factory/
OfficeReduced environmental load due to waste
Hazardous
substances

Total 36 tons of PRTR emissions(80% down on 2002)
Control of environmental pollutants

Eco-design

Eco-friendly design and product creationGreen
procurement
Distribution
Disclosure

Green supplier system of identification andregistration of all our business associates
Construction of efficient distribution system
Disclosure of clear environmental data

Communication Community

Continuous issue of CSR reports
Support for and participation in NGO and NPO activities
Promotion of nature conservation andsocial contribution
Thorough education of eco-minded
employees

Products

Naturalenvironment
Education andinstruction

Mind

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report

14

chapter

5 Management

Environmental management system

NGK Spark PlugNGK Spark Plug Group is encouraging its business sites to acquire ISO 14001 certification, the international standard forenvironmental management systems (EMS), in order to promote its environmental management. Joint certification for fourNGK Spark Plug factories was obtained in December 2000, and 11 of our domestic consolidated subsidiaries were includedin the expansion of the joint certification by January 2004.
We are pursing uniform management to share common
Acquisition of ISO 14001 certification
goals and information within the whole group. In addition,
Name of factories and companies Timing of certification Certification organizationnine of our overseas consolidated subsidiaries have
1 Head Office/Factory’99.8
acquired certification as of June 2006, and the ratio of our
2 Komaki Factory’00.12worldwide organizations with ISO 14001 certification has
TÜV Rheinland Japan Ltd.
3 Miyanojo Factory’00.12exceeded 92% in terms of the number of employees.
’00.12

5 Nittoku Seisakusho Co.,Ltd.

’04.1

Name of factories and companies

Timing ofcertification

Certification organization

6 Nittoku Unyu Co.,Ltd.

’00.1216 NGK Spark Plugs (U.S.A.),Inc. WV Factory’00.7

7 Nichiwa Kiki Co.,Ltd.

’04.1

17 NGK Spark Plugs (U.S.A.),Inc. IRV Factory’00.8

TUV Rheinland of North
America, Inc.

8 Kamioka Ceramic Co.,Ltd.

’04.1

18 NGK Spark Plugs (U.K.) Ltd.

’01.12

BSI (British Standard Institute)

9 Kani Ceramic Co.,Ltd.

’02.1219 Taiwan NGK Spark Plug Co.,Ltd. ’06.4

SGS

10 Iijima Ceramic Co.,Ltd.

’02.1220 NGK Spark Plug Industries Europe S.A.S.

AFAQ

11 Nittoku Alfa Service Co.,Ltd.

’99.8

12 Nakatsugawa Ceramic Co.,Ltd.

TÜV Rheinland Japan Ltd.

Overseas

Domestic

4 Ise Factory’00.5

21 Ceramica e Velas de Ignicao NGK do Brazil Ltda. ’01.12

ABS Quality Evaluations’02.1222 NGK Spark Plug Europe GmbHTÜV Industrie Service GmbH

13 Tono Ceramic Co.,Ltd.

’04.1

23 NGK Spark Plugs Malaysia Berhad. ’06.3

SIRIM QAS

14 Nansei Ceramic Co.,Ltd.

’02.1224 Siam NGK Spark Plug Co.,Ltd.

’02.11RWTÜV Thailand Ltd.

15 Ceramic Censor Co.,Ltd.

’00.12

25 Woo Jin Industry Co.,Ltd.

’05.4

kfq (Korean Foundation for Quality)’04.11

System operation
NGK Spark Plug Group is establishing an EMS based on theparticipation of all employees throughout the group as well as ineach region.
As the supreme decision-making bodies, the Central
Environmental Committee and respective regional environmental
committees are responsible for checking the progress toward
objectives and targets, and for identifying and improving problems.
An internal environmental audit is conducted annually to inspect
the status of the system structure and compliance with laws andvoluntary standards. We are also striving to enhance theawareness of our internal environmental auditors and promoteexchanges between different operation sites through activities suchas auditors visiting and auditing other regions.
In this way, we operate a PDCA (Plan-Do-Check-Action) cycle
throughout the group and in each region (factory).

ActionNGK Spark Plug Group

Review by the chief executives
Central Environment Committee

Check
Environmental
audit

Plan
Environment preservation policy
Corporate environmental
objectives and targets

ActionContinual
improvement

Regional Environment

Committee

Check

Environmental Activity Promotion Organization

Chief Environment
Administrator(Chairman of Central Environment Committee)

Do

In-house environment
audit

President
Central Environment
Committee

Environment Administrator

Central Energy Conservation
Expert Committee

Do

Central Waste
Sub-committee

Execution andoperation

Chemical Materials
Sub-committee

Continual
improvement

Plan

Regional environmental
objectives and targets
Regional environmental plan

Each Region

Environmental
ISO Secretariat

Internal
Environment
AuditorGreen Procurement
Sub-committee
Environment
Committee

Energy Conservation
Expert Committee
Waste Sub-committee

Each Region* “Each Region” means the Head Office Region, Komaki Region, Miyanojo Region, Ise Region and affiliates.

Number of ISO14001 auditors(people)NGK Spark Plug
ISO14001 assistant examiners
ISO14001 Internal auditors

Affiliates

9

1

274

155

& Social Report 2006
15 Environmental
NGK Spark Plug Group Environmental and Social Report

Central Environmental Committee

Education of internal auditors

Environmental risk
Business activities involve various environmental risks, which we are making efforts to reduce through proper management
on a regular basis. To deal with the risks of air and water pollution, we have concluded an agreement on pollution control
with municipalities and implemented self-regulation that is stricter than the law, with which we also comply.

Soil survey

PCB control

Drill to practice emergency procedures

Prior to the construction of anew plant building at Komaki
Factory, we conducted a
voluntary soil survey to confirm
there was no contamination.

The Head Office Factory, Komaki Factory andNittoku Seisakusho store waste containing
PCBs. While following procedures based on the
Law Concerning Special Measures Against PCB
Waste, we continue strict control right up until thestored PCB waste treatment is properly
completed under
the national PCB
waste treatment
program.

To prepare for emergency situations such as earthquake
and fire, we hold drills that fit the type of business.

* PCBs: polychlorinatedbiphenyls

ComplianceTo maintain business activities, it is essential to properly understand the main purport of many relevant environmental laws
and comply with them. While always doing our best to comply with the laws, if any unavoidable violation or complaint
occurs, we will take preventive steps through the ISO 14001 system.

NGK Spark Plug
Violations
Complaints

2003

2004

2005

0

0

1

0

4

0

※

※Komaki Factory: The BOD level in the integrated drains temporarily exceeded the value agreed onwith Komaki City.

Effluent treatment plant at Komaki Factory

Affiliates
Violations
Complaints

2003

2004

2005

3

7

1

1

1

0

※

※Kani Ceramic: The noise level exceeds the regulation value set by the city government,
and countermeasures are being continued.

〈See respective back issues for violations and complaints in 2003 and 2004.〉

Sound barrier installed at Nittoku Seisakusho

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report

16

chapter

5 Management

Environmental accounting
For the more effective promotion of environmental management, it is important to measure the environmental
conservation cost and its effect in a quantitative manner. We introduced environmental accounting in FY1999 andexpanded the scope to cover the entire group in FY2003.
The environmental conservation cost in FY2005 was 9,212 million yen on a non-consolidated basis and 9,786 million yen
in the whole group, an increase of approximately 9% over the FY2004 level. The effect of environmental conservation
activities was valued at 192 million yen on a non-consolidated basis.
Environment preservation cost

(Unit: million yen)
Items

Classification

Non-consolidated

Pollution prevention cost

ExpenseInvestment

Major efforts
Air/water pollution prevention and noise reduction

Costs
Global environmental
Global warming prevention, energy conservationconservation costwithinthe business Resource circulation cost Effective resource utilization, industrial waste treatment/disposalarea
Sub-total

Consolidated
ExpenseInvestment

2004

2005

2004

2005

2004

2005

2004

2005

80

204

952

757

118

222 1,171

932

4

25

69

256

10

77

112

304

37

58

520

525

47

63

694

724

121

287 1,541 1,537

174

363 1,977 1,960

Upstream & downstream cost

Recycling of products, etc., green purchase differences

0

0

4

5

0

0

4

5

Management activity cost

Employee environmental education, EMS construction and operation

4

6

403

343

7

8

470

407

R&D cost

R&D of products promoting environment preservation

657

994 5,433 5,898

657

Social activity cost

Nature protection, afforestation, environmental ads

0

0

188

132

0

0

196

142

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

14

9

0

0

14

9

―

4

0

32

1

4

0

32

1

Other costs
Total

786 1,287 7,616 7,925

994 5,433 5,898

841 1,365 8,125 8,421■Environmental conservation cost is classified in reference to the Environmental Accounting Guidelines published by the Ministry of the Environment, and calculated on a pro-ratabasis based on the records of direct capital investment and cost according to our independently set rules.

Environmental conservation effect measurements
Non-consolidated

Classification
Effect measured in
the business area

2004

2005

Purchased electricity (10,000 kwh)

19,17821,171

Gas (10000 m3)

1,398

1,428

LPG (tons)

3,660

A oil (KL)Types of effect

Consolidated
2004

2005

1,993

30,37932,967

31

1,462

1,513

51

4,228

568

7,982

8,894

912

2,794

1,883

−911

2,794

1,883

−911

Tap water (tons)

730,869

801,684

70,815915,553994,442

78,890Well water (tons)

973,518

935,164−38,354

1,104,164

1,067,387−36,777

Year-on-year change

Year-on-year change

Energy consumption

Effect measured
with respect toresource input
into operations

Effect measured
with respect toenvironmental load and wastefrom businessactivities

2,588

Water consumption

PRTP law-regulated substance consumption (tons)

544

603

59

823

840

17

CO2 emission from energy consumption (tons)

117,603

124,189

6,586

168,285

179,281

10,995969,593

1,150,196

180,603

1,102,682

1,288,728

186,046

17,041

21,168

4,127

19,22923,678

4,449

89

121

32

534

401

−133

16

13

−3

175

131

−44

Recycled plant wastewater (tons)

※

※

Waste
Recycled mass (tons)
Landfill, incineration (tons)
PRTR law-regulated substances released into air and water (tons)※The definition of recycled water has been modified to mean water reused after wastewater treatment.

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

Area of recognized effectRevenue

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

CostsavingReduction of water expenses through water saving
Waste disposal cost saving achieved by resource conservation and recycling efforts
Total& Social Report 2006
17 Environmental
NGK Spark Plug Group Environmental and Social ReportNon-consolidated
108
49
7
29
192

Consolidated companies : 9 affiliates
Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic,
Nansei Ceramic, Kamioka Ceramic, Nittoku Seisakusho,
Nichiwa Kiki, Tono Ceramic, Ceramic Sensor

Environmental management
Eco-efficiency
For sustainable development, companies need to minimize
environmental impact and maximize economic value, so
the key challenge is improving environmental efficiency.
NGK Spark Plug Group evaluates CO2 emissions, waste
generation, etc. as indicators of environmental efficiency topromote environmental management.

Output added value
Eco-efficiency ＝Index of effective use of waste〈Non-consolidated〉〈Non-consolidated〉

1,761

106

107

(FY2001=100)
2,000

1,500
1,332

80

80
1,000

60
60

Output added value

40

CO2 emissions from production

40

Output added value

Output added value

Effective use of waste

Landfill/incineration of waste

2001

2002

2003

2004

2005

0
（FY）

100

2001

2002

2003

2004

2005
（FY）

0

2001

238

500
20

20
0

1,435

89

92

100

122

116

107

101

100

100

Index of landfill/incineration of waste〈Non-consolidated〉(FY2001=100)
120

120

Environmental load

※The output added value is calculated by subtracting material costs and the costsof outsourced processing from sales.

CO2 index from production(FY2001=100)
140

100

NGK Spark Plug’s Eco-efficiency

2002

2003

2004

2005

（FY）

History of environment conservation
Feb. 1973

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

Mar. 1974

Antipollution agreement was concluded between Komaki Factory and Komaki City.

Apr. 1980

Antipollution agreement was concluded between Miyanojo Factoryand Miyanojo Town (currently Satsuma Town).
Energy Conservation Expert Committee was established.

Jul. 2001

Cogeneration plant was installed in Miyanojo Factory.

Sep. 2002

Miyanojo Factory achieved zero emission.

Dec. 2002

Combined ISO14001 certification covering NGK Spark Plug and affiliates(Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic and Nansei Ceramic)

May. 2003

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

Nov. 1980

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

Nov. 1993

Antipollution agreement was concluded between Ise Factory and Ise City.

Sep. 2003

Ise Factory achieved zero emission.

Apr. 1994

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

Jan. 2004

Apr. 1999

Environment declaration was announced.

Combined ISO14001 certification covering NGK Spark Plug and affiliates(Kamioka Ceramic, Nittoku Seisakusho, Nichiwa Kiki and Tono Ceramic)

Jun. 1999

Reorganization of Antipollution Committee into Environment Committee.
Environmental management system was reviewed and Energy
Conservation Expert Committee was organized.

Oct. 2004

Nittoku Seisakusho achieved zero emission.

Mar. 2005

Nansei Ceramic achieved zero emission.

Sep. 2005

Nichiwa Kiki achieved zero emission.

Dec. 2006

Received the Minister of Economy, Trade and Industry Prize at the
19th Chunichi Industrial Technology Awards.
(Universal A/F heated exhaust gas oxygen sensor)

Jan. 2006

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

Mar. 2006

Nakatsugawa Ceramic, Kani Ceramic and Kamioka Ceramicachieved zero emission.

Aug. 1999

Head Office/Factory obtained ISO14001 certification.

Oct. 1999

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

Sep. 2000

The first edition of ECO report was issued.

Dec. 2000

Combined ISO14001 certification covering the company's entire
operation sites (Head Office/Factory, Komaki, Miyanojo and Ise)

Jun. 2001

The first environment convention was held.

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report18

chapter

5 Factory/Office

EnergyBasic concept
The Kyoto Protocol came into force on February 16, 2005 as the need intensifies for worldwide countermeasures against
global warming. NGK Spark Plug Group recognizes that the reduction of total GHG emissions is crucial for controlling
global warming, and has set a total emission reduction target in its NGK Spark Plug Group Eco Vision 2010.
This problem has attracted increasing attention in Japan since the revisions in April 2006 to the Law Regarding the
Rationalization of Energy Use and the Law Concerning the Promotion of the Measures to Cope with Global Warming.
NGK Spark Plug Group will properly respond to the requirements of the revisions, such as by reviewing its designatedenergy management factories; calculating, reporting and publishing its GHG emissions; and implementing energy
savings in its distribution.

Shigeyasu Yamada,
Chairman / Director
Central Energy Conservation Expert Committee

Energy saving activities

Energy saving activities

Results compared to FY2005 targets〈Non-consolidated〉

The direct production sector achieved an 18.9% reduction
per unit production, much higher than the 4% target. Other
sectors (mainly indirect sectors), on the other hand, failed
to meet the 4% target as climate changes had a major
impact.

0.973

0.916

21,3190.989

2.024,67515,00022,990Up 11.1%(from FY2001)

20,00022,857

Down 4%(from FY2001)

25,00023,285

Down 18.9%(from FY2001)

Other sectors

CO2 emissions per unit production(CO2/million yen)

Emissions

Down 4%(from FY2001)〈Non-consolidated〉
Direct production sector

22,208Other sectors

Result in
FY2005CO2 emissions (tons CO2)

Direct production Emissions per unit
sectorproduction

Target for
FY2005

Up 7.3%
0.846
0.803

0.950

10,000

1.6

1.2

0.8
Down 5.1%

5,000

0

0.4

2001

2002

2003

2004

2005

2005 0.0▲ （FY）
Target value

Eco Vision 2010 and targets for FY2006

Targets for FY2006NGK Spark Plug

5,700 tons

Affiliates

1,891 tons

& Social Report 2006
19 Environmental
NGK Spark Plug Group Environmental and Social Report

CO2 emissions by year

5

0

17.93

15
12.42

11.76

16.39
11.49

12.14

11.82

9.07

10

11.36

15

NGK Spark Plug Group

16.92

Non-consolidated

20

7.01

CO2 emissions (10,000 tons CO2)

To sustain consistent energy saving activities,
implemented measures must be clearly effective andproperly assessed. For this purpose, in FY2006, we will
set emission reduction targets and strictly manage theprogress of all measures and their reduction amounts. We
will also continue to manage total emissions for theachievement of Eco Vision 2010.

1990 1995 2000 2001 2002 2003 2004 2005

2010（FY）▲
Target valueNon-consolidated

NGK Spark Plug Group

10,000
0

1990

1995

Non-consolidated

2,793
3,056

2,794
2,794

1990

1995

Non-consolidated

2000

2001

2002

2002

2003

2004

65,4132003

2004

2005 （FY）＜NGK Spark Plug Group＞

Grade A crude oil
5,106
2.8%

Gas
65,413
36.5%

1,883
1,883

3,148

0

508

1,000

2,455

3,183

2,000

2001

NGK Spark Plug Group

Composition of used energy(CO2 equivalent)

4,000
3,000

2000

49,21820,00046,74061,38744,52730,00047,191
59,8802005 （FY）

40,00050,0402004

21,171

19,031

18,231

2003

5,721

Consumption (KL)2002

Grade A crude oil

6,000
5,000

2001

50,00048,331

2000

60,00022,045

1995

19,17828,8761990

Gas (CO2 equivalent)

70,0007,464

0Consumption (tons CO2)5,000

17,831

15,00020,51520,00019,15425,00010,00030,37930,00032,967Purchased electricity

35,00013,644

Consumption (10,000 kWh)

Energy use by year

Purchased electricity
108,792
60.7%

2005 （FY）

NGK Spark Plug Group(tons CO2)

Example <Energy saving in the cooling water supply system at Komaki Factory>
In December 2005, the construction of a newplant building in the Komaki Factory wascompleted. We are striving to make this building
environmentally friendly through, for example,
choosing energy-saving type equipment anddevices when carrying out new installation.

Chilled tower

Energy collection system

We use chilled towers to supply factories
with cooling water. The chilled towers use
a compressor (chiller system) in summer
and low temperature outdoor air (cooling
tower system) in winter to save energy.

Inline water turbine generators run byfalling cooling water have been installed
to collect energy.
<Estimated annual effect>

44,429kWh ⇒ CO2 reduction<Estimated annual effect>

839,000kWh ⇒of 15 tons

CO2 reductionof 227 tons

No. 1 Plant Building of Komaki Factory

Distribution

Clean energy

The April 2006 revision to the Law on the Rationalizationof Energy Use made the adoption of energy saving
measures mandatory in the distribution field.
Although our group companies were already committed to
improving efficiency in distribution, such as by the use of
low-emission vehicles andmodal shifts, we havereaffirmed the significanceof energy saving in thetransport field and willcontinue to develop ourenergy saving measures as
shippers and carriers.
Nittoku Unyu Co., Ltd.

In March 2006, a second photovoltaic generator was
installed in the Head Factory. Although small, the equipment
effectively utilizes previously unused roof space for power
generation.

Photovoltaic generator

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report20

chapter

5 Factory/Office

Waste
Basic concept

Results compared to FY2005 targets

To maximize the effective use of resources, NGK Spark
Plug Group handles waste in the following order of priority:

In FY2005, we targeted the reduction of total waste
generation by 10% in NGK Spark Plug and 5% in ouraffiliates from FY2003 levels, but failed to achieve thesetargets due to a dramatic increase in production. As thetarget of “reducing waste generation to 12,000 tons orless” in Eco Vision 2010 has been found difficult toachieve, we have reconsidered this Eco Vision. In FY2006,
we have set the amount of emission reductions as thetarget and are supervising the progress of each measureand its reductions.

1. Reduction

2. Reuse

3. Recycling

4. Landfill/Incineration

Definition of effective use
We reuse and recycle the valuable parts of the waste
generated from our factories (including the recovery of heat).
This includes waste materials sold as valuable resources.

Waste generation Waste generation Rate of change Date of achieving
in FY 2003 (tons) in FY 2005 (tons) in FY2005 (%) zero emission(Reused, recycled, or landfilled/incinerated amount)≧ 98%

NGK Spark Plug Group was committed to the target ofachieving zero emission by FY2005. Having almost met
our target, we are now shifting the focus onto reducing
waste generation and post-waste treatment residue.

0

2000

2001

2002

Non-consolidated

2003

2004

905.7
14,860.5
3,129.4
2,393.6
1,062.5
372.2
88.5
26.1
67.6
221.5
7.8
78.8
864.7

0.7
76.7
2.4
16.0
−3.3
2.7
18.7
−46.8
−34.0
−4.0
91.9
386.2
6.5

May
2003
May
2003
September 2002
September 2003

17,182.3 24,078.7

40.1

−

2005 （FY）

NGK Spark Plug Group

−
March
2006
March
2006
March
2005
March
2006
October
2004
September 2005−
October

2004※See p.31 for the effective waste utilization quantity, landfill and incineration quantity
and recovery rate of each factory in FY 2005.

〈Non-consolidated〉
4

3.41
2.95
2,554

2.87

2,080

2,000

2.88
2,693

2.97

3,000

2,376

4,000

1,964

Target16,32324,07918,84016,071

17,182

14,42914,766

16,66720,00021,289Target12,986

10,000899.8
8,412.2
3,056.8
2,063.6
1,098.8
362.3
74.5
49.1
102.5
230.7
4.0
16.2
811.6

Waste disposal cost by year

30,000

11,580Waste generation (tons)

Waste generation by year

Total

Disposal cost (10,000 yen/month)

Recovery rate =(Reused or recycled amount)

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

1,000
0

3

2.72
2

1
0

2000

2001

Disposal cost

2002

2003

2004

2005（FY）

Disposal cost per ton (10,000 yen/ton)

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

3,575

Definition of zero emission

Disposal cost per ton

On-site check of waste disposal contractors

Example <Recycling of green sheet waste>

To confirm that waste generated by NGK Spark Plug Groupis treated correctly, we continued in FY2005 to conduct onsite checks of the intermediate treatment and final disposal
processes, and confirmed that there was no problem in theway they were controlled.

The process of producing ceramic
packaging generates green sheet
waste, which is difficult to disposeof and has been traditionallylandfilled. For NGK Spark PlugGroup, which seeks to reduce theamount of landfill waste to achieve
zero emission, the recycling ofgreen sheet waste has been achallenge.
Afterrepeated Green sheet waste
consultation with waste disposal
contractors, we have succeeded in recycling such waste, amajor step toward achieving zero emission.

NGK
Spark
Plug

Affiliates

Number of waste
disposalcontractors

35

11

Total number ofvisitors

74

22

On-site check& Social Report 2006
21 Environmental
NGK Spark Plug Group Environmental and Social ReportWater resources
Basic concept

Example <Review of cooling water to reduce water use>

NGK Spark Plug Group uses water, a precious resourcefrom the earth, for our business operations. While we havealways controlled the quality of our factory effluent, wehave also been engaged since FY2004 in the reduction ofwater use to reduce the environmental impact.

The equipment for experimental sensor packages uses
cooling water. To avoid any decline in the quality of thewater in the tank, some water is forced out for half an hour
everyday and fresh water poured in. We have reviewed
this water supply quantity and reduced it. We have alsoreassessed the cooling temperature and successfully
reduced power consumption.

Results compared to FY2005 targets
Water use
Use of tap andwell water by year
Target145.9

Target183.5

Chiller

206.2

Chiller

173.7

170.1

193.2

150

162.1

200

Experimental
equipment

201.7

250

Usage (10,000 tons)

In FY2005, we targeted a
10% reduction in the use oftap and well water from the
FY2003 level in NGK Spark
Plug, and a 5% reduction
among our affiliates. This
new activity had a major
effect in some sites, but
NGK Spark Plug Group asa whole failed to meet thetarget. We will continue ourefforts to eliminate wastefuluse of water and reduce its
consumption.

Cool water

Beforeaction960m /year

Afteraction432m3/year

3

Effluent

100
50
0

2003

Non-consolidated

2004

528m3 / year reduction

2005 （FY）

NGK Spark Plug Group

Green purchasing
Changing to eco-friendly office supplies
Ratio of eco products (%)

NGK Spark Plug Group is proactive in selecting environmentallyfriendly products (eco products) in the area of office supplies andcommodities in order to enhance the awareness of environmental
conservation in the workplace. Version 2 of our “Green Procurement
Guidelines (In-house Use),” published in March 2004, specifies thateco products should meet all or some of the following requirements:
1. Have less environmental impact during use.
2. Have a significant effect on environmental improvement during use.
3. Have less environmental impact during the disposal stage after use.
4. Comply with relevant laws, standards, regulations, etc. in terms of quality and safety.
5. Be preferably priced the same or lower than similar products(in consideration of longevity).

Eco-friendly cars
To reduce the environmental
impact of our distribution
and sales activities, we arepromoting the replacementof company vehicles that are
due for renewal with ecofriendly cars.

〈Non-consolidated〉
100
80

68

40

20
0

1999 2000 2001 2002 2003 2004 2005
（FY）

＊ We only considered data on the use of officesupplies (stationery) from our warehousepreviously, but since FY2004 we have also covered
direct purchasing by business departments.

Number of low-emission company vehicles(No. of cars)

NGK Spark Plug

Category
Total number of company vehicles
New☆☆☆☆ (75%-decreased level in the exhaust gas standards in 2005)

Images

94

Target of "90%or more" was met

60
40

90

89
81

78

Head Office/
Factory

Sales offices

Affiliates

82

100

23

9

18

3

New☆☆☆

(50%-decreased level in the exhaust gas standards in 2005)

9

13

2

☆☆☆

(75%-decreased level in the exhaust gas standards in 2000)

21

42

5

☆☆

(50%-decreased level in the exhaust gas standards in 2000)

4

7

2

☆

(25%-decreased level in the exhaust gas standards in 2000)

12

16

3

Exempted from exhaust gas regulations

27

4

8

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report22chapter

5 Factory/Office

Hazardous substances/green procurement
Basic concept
Regulations on hazardous substances are becoming more stringent on a global scale (e.g. ELV Directive and RoHS Directive) andalso attracting more public attention. In order to prevent hazardous substances from causing environmental pollution and healthhazards, NGK Spark Plug Group performs proper control of such substances through its management system established toaddress the ① response to demands from customers, ② handling and control within the group and ③ procurement from suppliers.

1

Customers

Reflecting the tightened regulations on hazardous materials mainly in Europe, ourclient manufacturers are making stricter demands for green procurement. NGKSpark Plug Group meets their various demands by submitting data on chemical
contents through IMDS* and JGPSSI* survey tools, responding to specific survey
slips, submitting certificates of non-use, undergoing on-site audits, etc.
*IMDS（International Material Data System）
This is a system of collecting data on the materials and substances used in the 30,000 orso parts that make up an automobile.
*JGPSSI（Japan Green Procurement Survey Standardization Initiative）
This is an association formed voluntarily by electrical and electronic equipment manufacturers
to standardize investigations into chemicals contained in parts and materials.

2

Control of substances
subject to PRTR Law

NGK Spark PlugGroup

We are taking measures to prohibit, replaceand collect substances subject to the PRTR
Law, our target being to reduce the amounts
released into the air and water by 80% fromthe FY2002 levels by FY2010.

Hazard ranking
Hazardranking

Handling standard

Prohibited
substances Use is prohibited.
A substitution
Restricted program shall be
substances proposed and thesubstances
switched

Control system
Substances covered
Regulations
Substances prohibitedfrom use or strongly
restricted by regulations
Hazard level and toxicity areequivalent to prohibited
substances, but an immediatechangeover is impossible due
to its special characteristics.

Emission into theControlled environment andMainly substances
substances transportation upon subject to PRTR Law
use are controlled.

Obtaining information

Information management

Hazard ranking

Control of quantity
consumed& Social Report 2006
23 Environmental
NGK Spark Plug Group Environmental and Social Report

Customer's
requirements

Management of
reduction

As the largest component of our emissions istoluene, used in the semiconductor
manufacturing process, we are making
preparations for the collection and reductionof emission of this substance.
Quantity of handled substances
subject to PRTR Law
Quantity of handled substances subject (tons)

We have set up a “hazard ranking” based on data obtained on laws andcustomer requirements relevant to the hazardous materials contained in
our products or used in our production process. We use this hazard
ranking to classify hazardous materials into prohibited, restricted andcontrolled substances according to the level of risk, and we specify
handling standards for each rank.

Non-consolidated
700

Others

600
140.7

500
143.4

124.0

400
300

110.6

117.9

51.8

26.2
32.4
32.7

45.9
33.8

116.4

153.1

123.4

127.0

116.0

102.2

2002

2003

2004

2005 （FY）

37.0
47.0
29.1

200 149.8

Lead andits compounds
Xylene51.2
44.0

Nickel154.1

Toluene1000Water-soluble
copper salts(except
complex salt)

3

We request suppliers to apply our “Green Procurement Guidelines (forPartners and Suppliers)” in order to procure raw materials and parts withless environmental impact. As part of this process, we have been gradually
introducing a green supplier system since FY2005, which accredits green
suppliers based on system standards and material standards. We arecommitted to reducing environmental impact by cooperating with our green
suppliers on green procurement.

Suppliers

Green supplier system
System standard

Material standard

ISO14001 Certification by third company.

Prohibited substances as specified
by NGK Spark Plug Group.

Certified

Used

Not certified
NGK Spark PlugGroup's standard

OK

UnusedSystem of MSDS management

NG

OK

NG

Environmental improvementof packing materials

Green supplier

Targets and results in FY2005NGK Spark Plug

Affiliates

Air 129,945

Emissions

8.6 tons
Reduction by 20% per unit production(50% below the 2002 level) (in comparison with the 2001 level)

Results in
FY2005※

13.5 tons(18.9% below the 2002 level)

117.5 tons (total)

602.8 tons

Unit: kg

Water area for public use
1,023
Products
378,821

Quantity handled
839,635

36 tons(80% below the 2002 level)

Quantity handled
in FY2005

NG

Input/output diagram of substances subject to PRTR Law

Targets for
FY2005

Eco Vision
2010

OK

Disposal by sale 13,951
Decomposition reaction 171,840

236.8 tons

Internal incineration 12,627
Public sewage 17※The total abolishment of the use of dichloropentafluoropropane (HCFC-225), which damages
the ozone layer, has fallen behind schedule, but a replacement is expected in December 2006.

Recycle 118,184
Landfill and incineration
13,013Emission of substances subject to PRTR Law
Non-consolidated
Others

800
188.1

700
600
500
400
300

167.3
47.0
26.2
55.8
43.2
125.0

44.1
51.8
57.0
57.9

185.1
39.9
110.6
63.7
63.7

163.0

0

Water-soluble
copper salts(except
complex salts)
Lead and its
compounds
Xylene163.6
Nickel200
100

Di-nbutylphthalates

266.9

2003

261.2

2004

213.1

2005 （FY）

TolueneNGK Spark Plug Group

18

180

16
2.4

14
2.0

12

0.6
1.1

Others

0.2
0.7
3.4

3.1

1.7

Toluene
0.4
0.7
3.5

10
8
12.2

6
10.4

10.8
8.9

4

XyleneDichloropentafluoropropane

Emission ofsubstances (tons)

900

Emission ofsubstances (tons)

Quantity of handled substances (tons)

NGK Spark Plug Group

3.0

100

Dichloropentafluoropropane
140.5

106.5

60
40

0

2004

Xylene

145.2

80

20
2003

1.0

120

0

2002

OthersToluene14022005 （FY）

1.4

160

14.9

16.2

10.8

12.2

8.9

2003

2004

2005 （FY）

14.5※Only substances covered by workplace reports (handled in quantities of 1 ton or more) are shown.

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report24

chapter

5 Products

We are proud to announce that our eco-products have received two awards.
Energy and resource saving in products will be increasingly important themes in the future. We are delighted to havereceived these awards, which have made us even more committed to solving such issues.

Received the Minister of Economy,
Trade and Industry Prize at the 19th Chunichi Industrial Technology Awards
Universal A/F heated exhaust gas oxygen sensor
In December 2005, our “universal A/F heated exhaust gas
oxygen sensor system” won the Ministry of Economy,
Trade and Industry Prize at the 19th Chunichi Industrial
Technology Awards. Ceramic application technology, oneof our strong areas, is applied by using a ceramic elementin the stainless head of a universal A/F heated exhaustgas oxygen sensor. The system was evaluated as being
more functional than existing products, and contributing to
the reduction of CO2 emissions by controlling toxic
exhaust gases and improving fuel efficiency.
＜What are the Chunichi Industrial Technology Awards?＞
The Chunichi Shimbun created these awards in 1986 to reward excellent
achievements in industrial technology and product development. A panel ofacademics and other experts examines publicly invites companies to submit theirtechnologies and products, and a selection committee makes the final decisions. In
the 19th awards, there was one winner of the Ministry of Economy, Trade andIndustry Prize, two winners of the Chunichi Shimbun Prize and one winner of theSpecial Encouragement Prize.

Mechanism
A universal A/F heated exhaust gas oxygen sensor is
attached to the exhaust pipe of an engine to measure theair/fuel ratio based on the oxygen level and unburned gas
level in the exhaust gas. The information detected by thesensor is communicated via ASIC, a dedicated control
circuit, to the in-vehicle computer to adjust the fuelinjection, etc. and control the combustion.
Comparison with existing products
Although an “oxygen sensor” also detects the air/fuel ratio,
it only gives information on whether the ratio is higher orlower than a certain standard ratio. In contrast, a universal
A/F heated exhaust gas oxygen sensor provides more
information on exhaust gas.
Advantages

A/F ratio control system
Injected air

Fuel injector

Requirements
EngineＮＴＫ・Higher fuel efficiency during normal driving

Three way
catalyst

・Extremely high fuel efficiency during idling・Sophisticated engine control to minimize the dischargeof hazardous substances

Presentation at the award ceremony& Social Report 2006
25 Environmental
NGK Spark Plug Group Environmental and Social Report

Thermal resistance
Thermal shock resistanceVibration resistance
Fast start
ResponseAward ceremony

FunctionsIn-vehicle computer(featuring ASIC)

Upstream of
・A/F ratio control
the sensor

Exhaustgas
Downstream of Functions
・Detection of catalyst deterioration
the sensor
・A/F ratio control

Received the Chairman Prize at the ECCJ’s 16th Energy Conservation Grand Prize
Oxygen concentrator for medical use 3E Series
In January 2006, our “Oxygen concentrator for medical
use 3E Series” received the Chairman Prize at the ECCJ’s
16th Energy Conservation Awards. The oxygen
concentrator for medical use provides oxygen therapy athome for patients with chronic respiratory diseases. The
device was highly appraised as an energy-saving productin this new and increasingly important field as our society
ages and requires higher levels of welfare.
＜What are the Energy Conservation Awards?＞
Hosted by the Energy Conservation Center, Japan (ECCJ), these awards
identify and recognize devices, materials and systems which contribute to theconservation of energy, resources, etc. and help establish a lower energy
consuming society. In the 16th awards, there was one winner of the Ministryof Economy, Trade and Industry Prize, two winners of the Agency for Natural
Resources and Energy Prize, and ten winners of the ECCJ’s Chairman Prize.

2. High efficiency absorbent andhigh efficiency control

Three Energy-Saving Technologies

High efficiency zeolite is used as theabsorbent to quickly control the air
supply and exhaust rate of theabsorption column and reduce load on
the compressor.

1. High efficiency horizontally
opposed compressor
With a brushless DC motor andinverter control circuit, the device
can be operated with minimum
power consumption corresponding
to a preset flow rate. The weight isreduced by 33% with two pistonsattached on one side of the motor(horizontally opposed type).

3. Internal pilot air supply/
exhaust switching valve
Power consumption is reduced withthis manifold type internal pilotsolenoid valve driven by compressed
air from the compressor.

3E
Series

3L/min.

53
53
%
%
lower
lower

3E
Series
2L/min.

Our existing devices

33
33
%
%
lower
lower

Our existing devices

Our existing devices

With the adoption of newtechnology to operate the device at
optimally low power consumption
corresponding to the flow rateprescribed for a specific patient,energy consumption can bedramatically reduced (by 33% at aflow rate of 3L/min. and 66% at aflow rate of 1L/min. in comparison
with our existing devices).

Annual power consumption (kWh/yr)

Advantages

66
66
%
%
lower
lower

3E
Series

1L/min.

Preset flow rate
※When the device is operated for 24 hours in a row at the preset flow rate in the Tokyo area

Development team members

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report26

Eco-design
Spark plug
Reduction in the useof hazardous substancesK■ Use of lead-free glaze■ Use of lead-free ink for terminal printing

Completed in May 2002

Completed in September 2004

■ Galvanized colored chromate →Galvanized trivalent chromate■ Reuse of base metal shapedwith talc and collected

・Zinc plated products: completed in May 2002
・Nickel plated products: completed in September 2004

Since July 2006

■ Use of CFC-free liniment■ Environmental measures on packaging materials

Scheduled in December 2006

・Elimination of polystyrene foam: in progress・Specifications for OEM packaging: in progress・Replacement with PET: scheduled for December 2006

Reduction of environmental impact during the use stage
Reduction in weightThinner and longer spark plug enables not only reduction in weight but also adaptation to high fuel efficiency engines

Average weight of spark plugs by year
47

Weight (g)46Achievement-5% / yr

45
44
43
42
41

Weight
ratio

100%

75%

87%

67%

40

55%

1997 1998 1999 2000 2001 2002 2003 2004 2005 （FY）

Longer life + improved fuel consumption
Environmental impact during production and use stages

Standard travel distance before plug replacement■ Standard type

Driving 100,000 km consumes 1 precious metal plug or 5 Standard plugs.

Impact on resource consumption

15,000〜20,000km

Four-wheel vehicle
Light four-wheel vehicle

7,000〜10,000km

Motorcycle

3,000〜 5,000km

・The impact during the production stage is larger when using one precious metal plugthan when using five standard plugs.
・Taking the impact of fuel consumption during travel into consideration, the total impact
during the production and use stages is larger when using standard plugs.

0■ Precious metal (platinum, iridium) type

Production of
one unit

Precious metal type100,000km

Four-wheel vehicle※ Fuel efficiency

Plug tested
Iridium
IX Plug
φ0.6mmStandard
plug
φ2.5mm■Type of the tested car: 1.5L 4 cylinder engine DOHC 4 valve/cyl■Gasoline used: premium unleaded ■Test mode: 10-15 mode

Fuel efficiency under 10-15 mode

0.2

0.3

0.4

0.5

Improvement effectDifference in fuel consumption
when driving 100,000 km

improved
by approx. 2%

Effect on
combustion

0.1
Production offive units

Standard type

Impact on global warming
・The impact during the production stage is larger when using five standard plugs thanwhen using one precious metal plug.
・Taking the impact of fuel consumption during travel into consideration, the total impact
during the production and use stages is much larger when using standard plugs.

0

15.01

40

80

120

160

（Kg-GWP)

200

Standard type
Precious metal type

14.77

※ Fuel efficiency

improved
by approx. 2%

Improvement effectDifference in CO2 emissions
when driving 100,000 km※Fuel efficiency has been measured with a chassis dynamo. Results
obtained under normal driving conditions were not necessarily constant.

& Social Report 2006
27 Environmental
NGK Spark Plug Group Environmental and Social ReportFront-end modules
A front-end module is a component installed in mobile phones, and performs
mainly the following functions:
Separating the frequencies of radio waves received by an antenna;
Switching transmission and reception;
Cutting the noise of power amplifiers;

Appearance (Triple band with two SAW filters)

Building in a receiver bandpass filter (working as a SAW filter).

Downsizing
We have advanced the development of downsized front-end modules byuse of our low temperature co-fired ceramic (LTCC) multilayer technology.

Downsizing

LTCC
front-end module
Triple band with
two SAW filters
6.5 x 5.0 mm<Conventional front-end module>
The size is large because all the parts (resistance, inductor, condenser
and diode) were mounted on a printed circuit board to make up the switch.
<LTCC front-end module>
With LTCC multilayer technology, the area is reduced to one half or one
third. Low losses and high attenuation are also achieved.

Worldsmalle ’sst
LTCC
front-end module
Triple band withthree SAW filters
5.4 x 4.0 mm

Our newly developed front-end modules are the smallest (5.4 x 4.0 mm)of their type in the world, each having a three-frequency SAW filter built
in. This downsizing has resulted in greater efficiency in the production
process and an approximately 10% reduction in the use of raw
materials.

Organic package
In the computer you are using, the CPU, the computer’s “brain,” is connectedwith other devices through our organic package, which serves as a “nerve
network.” Thousands of terminals arranged in the CPU at less than 0.2 mm
pitch are converted to a terminal arrangement with 1 mm pitch. The traces
needed for the conversion are miniaturized and densified to reduce therequired number of tracing layers and reduce the external dimension. We are
reducing the materials required for package production year by year throughsuch improvements in order to lower our environmental impact. In addition, weare applying lead-free solder and halogen-free materials to comply with theEU’s RoHS Directive.

Organic package

Cross section structure(6-layer wiring structure)
6th layer
5th layer
4th layer

Ms. Etsuko Otsuka

3th layer
2th layer
1th layer

Engineering and Development Division
Communication Media Components Group

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report28

chapter

5 Communication

Disclosure

Community

Publication of environmental reports

Cleaning activity in the local community

For our stakeholders to understand our environmental
conservation activities, we have published this ECO reportsince 2000 and site reports since 2003. We will continue todisclose our information proactively.

We perform regular cleaning activities to maintain theenvironment around our sites.

OutlineECO
report・4,500 Japanese copies and 1,500 English copies published, along with
online version.
・Reporting the environmental and social activities of NGK Spark Plugand the environmental conservation activities of 11 domestic affiliates.

Site
reports

Miyanojo Factory・Published by four Nittoku factories and nine affiliates.
・Reporting the environmental conservation activities of each business site.

Nansei Ceramic
Jun. 2005 (16 people)
Sep. 2005 (15 people)

Dec. 2005 (14 people)
Mar. 2006 (17 people)

Ceramic Sensor
Sep. 2005 (8 people)
Mar. 2006 (8 people)

Iijima CeramicAug. 2005 (17 people)
Nov. 2004 (12 people)

Nakatsugawa Ceramic
Sep. 2005 (9 people)
Apr. 2006 (9 people)

Kani Ceramic
Jun. 2005 (14 people)
Nov. 2004 (16 people)

Head Office/FactoryJun. 2005 (36 people)
Nov. 2005 (40 people)

Komaki Factory
Sep. 2005 (45 people)
Mar. 2006 (49 people)

Miyanojo Factory
Jul. 2005 (88 people)
Sep. 2005 ( 8 people)

Ise FactoryDec. 2005 (32 people)

Kamioka CeramicMay. 2005 (26 people)
Oct. 2005 (27 people)

Nichiwa Kiki
Sep. 2005 (20 people)
Mar. 2006 (23 people)

Nittoku Seisakusho
Jun. 2005 (20 people)
Aug. 2005 (21 people)

Nov. 2005 (11 people)
Dec. 2005 (12 people)
Mar. 2006 (20 people)

Tono CeramicEvery month (total 142 people)

Ise Factory

Accepting visitors at environmental factories

Environmental conferences

To let people understand ourenvironmental conservation activities,
we are promoting visits at ourenvironmental factories. In particular, weare encouraging local residents towitness our environmental measuresinside and outside our business sites
http://restep.zttc.or.jp
and answering their questions. To
promote inter-company communications,
we are also participating in Re-STEP*,
which was started in June 2004. By
widely accepting visitors to ourenvironmental factories, we aim to jumpstart environmental activities together Number of visits
Local residents,
with other local corporations.

We hold conferences with the public, mainly representatives of
local residents, to win their understanding of our environmental
conservation activities andNumber of conferences held
Environmental 10 conferences,
stance.

※Mutual study system of corporate environmental activities(Chubu Bureau of Economy, Ministry of Economy, Trade and Industry)

conference

Environmental exhibition

schools and local
governments

7

Companies and organizations

2

To acquaint the public with ourenvironmental
conservation
activities, we give presentations
at environmental events. In
FY2005, we ran a booth in EcoProducts 2005 as a member
company of Re-STEP.
Eco-Products 2005

Natural environment
Greening of factories
NGK Spark Plug Group offices stand on sites surroundedby greenery. We are continuously involved in efforts topreserve this rich nature, including weeding, pruning, andplanting, and to reduce the impact of our business
operations on the natural environment.
Ise Factory& Social Report 2006
29 Environmental
NGK Spark Plug Group Environmental and Social Report

26 attendees

Tono Ceramicchapter

5 MindEducation and enlightenment
Safety/health and environmental convention
We have organized an environmental convention every year since
FY2001 and a safety/health and environmental convention since
FY2004 for the purpose of making all employees of NGK Spark PlugGroup deeply aware of our environmental challenges. In FY2005,
under the slogan, “Let’s Achieve Zero Safety and Environmental
Risk!” we held lectures on health and safety as well as internal
panel discussions on global warming. We also organized sessions invarious factories and affiliates, featuring improvement examples as
the central theme, to which we invited local residents.

Encouraging the acquisition of official
qualifications
To ensure the compliance withenvironmental conservation-relatedlaws, regulations and agreements,
and with voluntary standards under
the company’s environment policy,
we develop, train and nurture
employees to gain expertise andofficial qualifications according to
the needs identified for each
operation site.

Energy conservation patrolby energy manager

Numbers of officially qualified employees
NGK Spark Plug

Pollution control manager

Panel discussion

Lecture on health and safety

Environment card
We distribute an environment card
to every employee of NGK Spark
Plug Group so that they
understand and are aware of ourenvironment policy. The employees
write the “organization’s objectives
and goals” and “my individual
efforts” on the environment cards
to be more aware of environmental
conservation in their everyday
activities.

Affiliates

Air

35

1

Water

61

12

Noise

41

2

Vibration

27

3

Energy manager

39

9Specially controlled industrial waste manager

34

15

Environment measurement engineer

10Work environment measurement engineer

50Proposals for improvement
We have an improvement proposals system to encourage
employees to devise innovations and inventions in theirprocesses and operations. In FY2005, there were 36,320
proposals, many of which were ideas on environmental
issues such as energy saving and waste reduction. All our
employees are contributing to environmental conservation
through the steady improvement of their daily jobs.

Health,Safety and Environmental News

Employee magazine "Nittoku"

To educate and enlighten our employees, we periodicallyissue “Health, Safety and Environmental News”, which
provides information on items such as ISO14001-based
activities, rules and measures on health and safety, andvarious related events. We started to issue an English
version in FY2005 tocover our overseas
offices.

Our monthly employee magazine“Nittoku”
includespages
dedicated to the environment. In
order to help raise environmental
awareness among our employees,
the magazine covers items suchas environment-related eventsand topics both in Japanand overseas, and theimpact of environmentrelated regulations on NGK
Spark
Plug
Group’s
activities.

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report

30

Data
PRTR

Head Office/Factory

NGK Spark Plus

Komaki Factory

Miyanojo Factory（kg）
OrdinanceNo.

(substance to be reported)

Quantity
handled

40
63
68
108
144
224
227
231
299
25

Ethyl benzene
XyleneChromium and trivalent chromium compounds
Inorganic cyanogens compounds (except complex salts and cyanate)
Dichloropentafluoropropane (also called HCFC-225ca)
1,3,5-trimethylbenzene
TolueneNickelBenzeneAntimony and its compounds

4,067
23,829
4,472
1,084
3,125
1,777
90,30143,452
3,800
2,466

30

Condensation polymer of 4.4’-isopropylidendiphenyl and 1-chroro-2.3-epoxypropane(also called bisphenol A epoxy resin) (liquid form only)

9,165

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

Ise Factory

Iijima Ceramic

Affiliates

Nakatsugawa Ceramic

Kani Ceramic
Nansei Ceramic
Nittoku Seisakusho
Ceramic Sensor

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

Substance name

Ethyl benzene
2,198
Xylene17,188Chromium and trivalent chromium compounds
1,352
Cobalt and its compounds
3,206
Inorganic cyanogens compounds (except complex salts and cyanate)
8,027
Dichloropentafluoropropane (also called HCFC-225ca)
2,606
Water-soluble copper salts (except complex salts)
110,576
Toluene11,946
Lead and its compounds
1,603
Nickel compounds
14,123Benzene1,134
Boron and its compounds
24,784
Poly (oxyethylene) nonylphenolether
2,594
Formaldehyde
12,871Manganese and its compounds
15,730
Molybdenum and its compounds
2,046
Chromium and trivalent chromium compounds
1,793
Inorganic cyanogens compounds (except complex salts and cyanate)
2,783
Dichloropentafluoropropane (also called HCFC-225ca)
3,151
Nickel110,626
Boron and its compounds
3,877
Condensation polymer of 4.4'-isopropylidendiphenyl and 1-chroro-2.3-epoxypropane(also called bisphenol A epoxy resin) (liquid form only)

Release quantity
Public water
area

Air

Volume of material transferred
Soil

Waste

Public sewerage

0
73

0
0

1
16

Removal/Recycled mass disposal
quantity
4,067
23,757

3,963

508
1,068

0

3,125
1,777
90,001299

43,013

438
3,798

2
0

2,005

461
9,165

8
1,301
2

412
6,604
805
314
62

1,777
9,283

2,710

547
2,891
5,255

2,606
1

66
435
0

80
4

66

1,778
26
228
3,926

4
190

161

0

57
0
0

2,096
2,568
12,742
15,673
129
1,259
7

108,731
11,485
1,294
10,126
1,130
1
26
129

452
2,776

22,335

0
1,916
82

3,151
74

110,626
3,739

49
3,611

3,611

Ethylene glycol
1,708
Xylene2,996
Lead and its compounds
49,588
Formaldehyde
1,704
Manganese and its compounds
1,486
Xylene6,675
Chromium and trivalent chromium compounds
2,004
Inorganic cyanogens compounds (except complex salts and cyanate)
3,966
Toluene4,109
Lead and its compounds
7,473
Nickel
1,788
Nickel compounds
1,945
Di-n-butylphthalates
8,144
Molybdenum and its compounds
3,257
Xylene13,014
Silver and its compounds
1,679
Chromium and trivalent chromium compounds
11,609Toluene106,704
Lead and its compounds
3,355
Di-n-butylphthalate
28,912Phthalic acid bis (2-ethylhexyl)
2,359
Molybdenum and its compounds
4,411
Di-n-butylphthalates
2,847
Lead and its compounds
1,715
Nickel
7,735
Hydrazine
8,680
Hydrofluoric acid and its water-soluble salt
2,359
Boron and its compounds
2,050
Total
839,635

Discharged
mass

1,708
897
13,855
1,704
1,250
476

2,099

6,199

35,693
0

235

279

938
758

1,066
2,928
4,109
1,222

1

3,116
1,320

6,251
1,788
3,492
1,937
161
1,679
6,963

7,987

4,866
1,815
105,776
3,693
650
1,001

129,945

1,945
1,535

210
463
1,023

0

17

2,832
928
1,286
8,992
2,031
705
252
1,713

10,922
236

2,069
5,306
93
3,056

1,397
2
7,735

7,550
2,195

1,130

13,013 118,184

184,468

1,587
392,772※ The following two substances included in “ECO report 2005” published in FY2005 were found in a subsequent investigation not to be subject to the PRTR law, and have therefore been excluded from this report:• No.1 Water-soluble zinc compounds (Head Office, Komaki, Miyanojo)• No.40 HCFC-22 (Komaki)

Waste

Contact for inquiries
Volume of emissions (tons) Volume effectively used (tons) Volume of landfill and incineration (tons)
893.7
14,779.2
3,109.3
2,386.1
969.1
254.6
66.1
26.0
66.8
219.9
7.6
39.5
859.9
23,677.8& Social Report 2006
31 Environmental
NGK Spark Plug Group Environmental and Social Report

12.0
81.2
20.1
7.5
93.3
117.6
22.4
0.2
0.8
1.6
0.1
39.3
4.7
400.9

98.7
99.4
99.4
99.7
91.2
68.4
74.7
99.4
98.9
99.3
98.4
50.1
99.5
98.3

Contacts for inquiries (Dept. name/tel)Affiliates

Affiliates

905.7
14,860.5
3,129.4
2,393.6
1,062.5
372.2
88.5
26.1
67.6
221.5
7.8
78.8
864.7
24,078.7

NGK
Spark Plug

NGK
Spark Plug

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

Recovery rate (%)
Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Iijima Ceramic
Nakatsugawa Ceramic
Kani Ceramic
Nansei Ceramic
Kamioka Ceramic
Nittoku Seisakusho
Nichiwa Kiki
Tono Ceramic
Ceramic Sensor

Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.

52−872−5980
568−76−1544
996−53−2211
596−39−1534
265−86−5211
573−68−5484
574−63−2511
599−65−3366578− 2−1112
52−811−3921
52−382−0511
574−63−1031
568−76−5400

Air, water and noise
Item

Type

Unit
mg/Nm3

Atmosphere

Head Office/
Factory

Drain(drainage)

Noise

Atmosphere

Komaki
Factory

Drain(public water
area)

Noise

Atmosphere

Miyanojo
Factory

Drain(public water
area)

Noise

Atmosphere

Ise FactoryDrain(public water
area)

Noise

Statutory Voluntary
regulation regulation Average
value
value

50
Boiler (No. 12)
Dust
150
Furnace (PR-2) mg/Nm3
150
Boiler (No. 12) ppm
NOx
180
Furnace (PR-2) ppm−
pH
5.0〜9.0
mg/L
SS
600
mg/L
BOD
600
mg/L
n-Hexane extract
30
mg/L
Cyan
1
mg/L
Total chromium
2
mg/L
Hexavalent chromium
0.5
mg/L
Zinc
5
mg/L
Lead
0.1
mg/L
Nitrogen120
mg/L
Phosphorus
16
mg/L
Fluorine
8
mg/L
Boron
10
dB
R spot70
MorningdB
T spot65
dB
R spot70
DaytimedB
T spot65
dB
R spot70
EveningdB
T spot65
dB
R spot65
NightdB
T spot55
mg/Nm3
Boiler (No. 1 - 5)
200
Dust
Furnace (No. 9 - 10) mg/Nm3
200
ppm
Boiler (No. 1 - 5)
250
NOｘ
Furnace (No. 9 - 10) ppm
200pH−
6.0〜8.0
SS
mg/L
30
BOD
mg/L
25
COD
mg/L
−
n-Hexane extract
mg/L
5
Cyan
mg/L
0.5
Total chromium
mg/L
1
Hexavalent chromium
mg/L
0.2
Copper
mg/L
1
Zinc
mg/L
3
mg/L
Lead
0.1
mg/L
Nitrogen120
mg/L
Phosphorus
16
mg/L
Nickel−mg/L
Manganese−
mg/L
Fluorine
8
mg/L
Boron
10
dB
Morning
Fifth spot
65
dB
DaytimeFifth spot
70dB
Evening
Fifth spot
65
dB
Night
Fifth spot
60
Cooling and heating machine mg/Nm3
300
Dust
Generating machine (No. 2) mg/Nm3
100
Cooling and heating machine ppm
180
NOｘ
Generating machine (No. 2) ppm
950
3.9
SOｘ Generating machine (No. 2) Nm3/h−ｐH
6.0〜8.0
mg/L
SS
35
mg/L
BOD
20
mg/L
n-Hexane extract
5
mg/L
Cyan
1
mg/L
Hexavalent chromium
0.5
mg/L
Copper
3
mg/L
Zinc
5
mg/L
Lead
0.1
mg/L
Fluorine
8
mg/L
Boron
10
3
counts/cm
E. coli
3000
dB
60
MorningdB
65
DaytimedB
60
EveningdB
50
Night
mg/Nm3250
Dust
Furnaceppm
180
FurnaceNOｘpH−
5.8〜8.6
SS
mg/L
90
BOD
mg/L
25
COD
mg/L
25
n-Hexane extract
mg/L
5
Cyan
mg/L
1
Total chromium
mg/L
2
Hexavalent chromium
mg/L
0.5
Copper
mg/L
1
Zinc
mg/L
5
Lead
mg/L
0.1
Nitrogenmg/L
120
Phosphorus
mg/L
16
Manganese
mg/L−
Fluorine
mg/L
8
Boron
mg/L
10
E. colicounts/cm3
3000
MorningdB
55
DaytimedB
60
Evening
dB
55
Night
dB
50

MAX

＜2
40
＜2
8
120
8
49
120
49
72
144
77
6.9
5.4〜8.6
7.4
24
480
77
11
480
23
1.6
24
3.1
0.15
0.8
0.3
0.05
1.6
0.1
＜0.04
0.4
＜0.04
0.87
4
2.4
＜0.02
0.08
＜0.02
18
96
27
0.4
12.8
0.58
0.17
6.4
1.8
＜1
8
1
65
68
65
63 ※1 67.5 ※1 67.5
62.6
68
62.6
63 ※1 67.8 ※1 67.8
61.8
68
61.8
63 ※1 65.4 ※1 65.4
63.4
64
63.4
54 ※1 65.5 ※1 65.5
＜2
160
＜2
9
160
11
22
200
23
73.5
160
120
7.4
6.2〜7.8
7.8
5.8
24
9
7.2 ※2 27
20
6.4
−
9.3
1.02
4
1.2
＜0.1
0.4
＜0.1
＜0.04
0.8
＜0.04
＜0.04
0.16
＜0.04
0.04
0.8
0.07
0.18
2.4
0.36
＜0.02
0.08
＜0.02
8.35
60
14
0.43
4
0.65
0.21
−
0.4
0.12
−
0.2
0.45
6.4
0.9
0.42
8
2
64
63
64
65
68
65
64
63
64
※1 64 ※1 64
58
13
240
13
24
80
28
67
144
67
785
900
880
1.3
3
1.7
7.5
6.5〜7.8
7.6
7.6
28
18
5.9
16
16
＜2.5
4
＜2.5
＜0.05
0.8
＜0.05
＜0.05
0.4
＜0.05
＜0.05
2.4
＜0.05
0.11
2.4
0.11
＜0.01
0.08
＜0.01
＜0.2
6.4
＜0.2
1.13
8
1.4
0
2400
0
49.7
55
50.4
44.9
60
46.4
45.2
55
46
45.9
50
47.2
5
100
5
62
140
100
7.6
6.0〜8.4
8
＜1
24
＜1
1.8
8
6
1.6
12
5
＜1
2.5
＜1
＜0.1
0.5
＜0.1
＜0.04
1
＜0.04
＜0.04
0.3
＜0.04
＜0.02
0.5
＜0.02
＜0.015 ＜0.015
2.5
0.0096
0.05
0.01
0.92
60
5.4
0.42
8
1.7
＜0.02
−
＜0.02
＜0.1
4
＜0.1
1.09
5
1.9
0
1500
0
47.0
55
50.2
48.1
58
51.7
46.5
55
51.5
44.9
50
49.5

※1 Due to background noise. Background noise means the noise when machines and otherequipment are not in operation, and so refers to outside traffic, neighboring factories, and so on.
※2 For the violation code, see p.16 “Compliance”.

Item

Atmosphere

IijimaCeramic

Drain(drainage)

Noise

Atmosphere

Nakatsugawa
Ceramic

Drain(public water
area)

Noise

Atmosphere

Kani CeramicDrain(drainage)

Noise

Drain
(drainage)

Nansei Ceramic

Noise

Drain
(public waterarea)

Kamioka Ceramic

Noise

Nittoku
Seisakusho(Head Office/
Factory)

Drain(drainage)

Noise

Drain
(public water
area)

Nittoku Seisakusho(Oguchi Factory)
Noise

Nichiwa Kiki

Drain(drainage)

Noise
Atmosphere

Tono Ceramic

Drain(public water
area)

Noise

Atmosphere

Drain

Ceramic Sensor (public water
area)

Noise

Type

Unit
mg/Nm3

Statutory Voluntary
regulation regulation Average
value
value

100
Dust
mg/Nm3
100
ppm
150
NOｘ
ppm
150
ｐH
−
5.8〜8.6
SS
mg/L
50
BOD
mg/L
30
n-Hexane extract
mg/L
5
Cyan
mg/L
0.5
Total chromium
mg/L
1
Hexavalent chromium
mg/L
0.3
Copper
mg/L
2
Zinc
mg/L
3
Lead
mg/L
0.1
Phosphorus
mg/L
16
E. colicounts/cm3
3000
MorningFirst spotdB
65
DaytimeFirst spotdB
65
EveningFirst spot
dB
65
Night
First spot
dB
55
Dust
Furnace (NN-1) mg/Nm3
50
SOx
Furnace (NN-1) ppm
0pH−
5.8〜8.6
SS
mg/L
50
BOD
mg/L
15
COD
mg/L
40
n-Hexane extract
mg/L
5
Nitrogenmg/L
10
Phosphorus
mg/L
3
E. colicounts/cm3
3000
MorningdB
60
DaytimedB
65
Evening
dB
60
Night
dB
50
Boilermg/Nm3
Dust
100
SOx
Boilerppm
150
pH−
5.8〜8.6
SS
mg/L
200
BOD
mg/L
160
COD
mg/L
160
n-Hexane extract
mg/L
5First spot
MorningdB
50First spot
DaytimedB
60
First spot
EveningdB
50First spot
Night
dB
45
pH
−
5.8〜8.6
SS
mg/L
200
BOD
mg/L
20
COD
mg/L
160
n-Hexane extract
mg/L
5
Lead
mg/L
0.1
Nitrogenmg/L
120
Phosphorus
mg/L
16
E. colicounts/cm3
3000
North
MorningdB
55
North
DaytimedB
60
North
Evening
dB
55
North
Night
dB
50
pH
−
−
SS
mg/L
−
BOD
mg/L
−
COD
mg/L
−
n-Hexane extract
mg/L−
E. colicounts/cm3−
Fourth spot
MorningdB
60
Fourth spot
DaytimedB
65
Fourth spot
EveningdB
60
Fourth spot
Night
dB
50
pH
−
5.0 or more
SS
mg/L
600
BOD
mg/L
600
n-Hexane extract
mg/L
50
MorningdB
60
DaytimedB
65
EveningdB
60
pH−
5.8〜8.6
mg/L
SS
30
mg/L
BOD
25
mg/L
n-Hexane extractNitrogen5
mg/L
Nitrogen120
mg/L
Phosphorus
16dB
Morning55
dB
Daytime60
dB
Evening
55
dB
Night
50
−
pH
5.0 or more
mg/L
n-Hexane extract
50
dB
Daytime65
mg/Nm3
Dust−
Furnaceppm
NOx−
Furnace
−
pH
−
mg/L
SS
−
mg/L
BOD
−
mg/L
n-Hexane extract−dB
Morning50
dB
Daytime60
dB
Evening
50
dB
45
Night
3
mg/Nm
100
Dust
Boilerppm
150
NOx
Boiler
−
6.0〜8.0
pH
mg/L
18
SS
mg/L
18
BOD
mg/L
18
COD
mg/L
2
n-Hexane extract
mg/L
30
Nitrogenmg/L
4
Phosphorus
mg/L
8
Fluorine
mg/L
10
Boron
dB
70
DaytimedB
60
Night
Steam boiler (No. 1)
Cooling and heating machine
Steam boiler (No. 1)
Cooling and heating machine

MAX

＜5
100
＜5
＜5
100
＜5
53
150
58
38
150
38
7.2
6.0〜8.0
7.4
2.2
10
5
1.7
25
3.4
＜1
5
＜1
＜0.01
0.3
＜0.01
＜0.02
1
＜0.02
＜0.02
0.3
＜0.02
0.03
2
0.04
＜0.05
3
＜0.05
0.007
0.1
0.011
0.63
16
0.9
19
3000
50
48.5
65
48.5
46.7
65
46.7
49.0
65
49.0
48.2
55
48.2
6
20
6
0
0
0
7.4
6.2〜8.6
7.6
2
35
6.5
1.65
13
4.6
6
30
7.4
＜0.5
4
＜0.5
3.95
10
6.5
0.019
2.5
0.034
24.8
1000
210
52
58
52
52
63
52
53
58
53
50
50
50
6
90
6
147
135
147
7.1
5.9〜8.5
7.1
2.8
180
2.8
22
144
22
11
30
11
1
4.5
1
50 ※2 51.6 ※2 52.2
51.8
60
53.6
50 ※2 52.7 ※2 53.7
45 ※2 51.6 ※2 53.0
7.1
5.8〜8.6
7.2
4.7
90
11
5.3
20
8
7
40
13
＜1
5
＜1
0
0.1
0
8.3
100
15
0.84
16
1.8
252
1000
560
53.5
55
53.5
57.8
60
57.8
52.7
55
52.7
49.0
50
49.0
7.75
6.2〜8.2
8.1
3.3
50
5.6
4
40
7.5
6.3
40
11
0.5
2.5
0.5
＜30
−
＜30
45
60
45
44
65
44
43
60
43
44
50
44
7.2
5.8〜9.0
7.2
110
300
110
160
300
160
0
25
0
※1 64
60
※1 64
63
65
63
※1 62
60
※1 62
7.2
6.0〜8.4
7.2
2
30
2
0.5
20
0.5
1
4
1
0.7
60
0.7
0.01
8
0.01
53
55
53
57
60
57
54
55
54
46
50
46
7.1
6.0〜8.0
7.2
1.8
20
3
62.3
63
62.3
19
200
19
71
400
71
7.2
5.8〜8.6
7.2
29
200
29
6.4
160
6.4
0.5
5
0.5
46
50
46
54.2
60
58
46
50
46
45
45
45
1
100
1
48.5
150
55
7.2
6.0〜8.0
7.6
6
14.4
8
5.7
14.4
8.2
11.7
14.4
16
1
1.6
1
14.4
24
29
0.3
3.2
1
2.3
8
4.9
2.2
10
4.3
58.7
70
59.5
57.3
60
58.2

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report32

6chapter

We will perform social contribution activities as a“good corporate citizen”.
● We are always keen to join social contribution initiatives such as fund raising by the generalbusiness community for the urgent support of victims of large-scale natural disasters.
● In areas where our production sites are located, we are committed to various types of social
contribution activities whose aim is to enhance communication with the local communities andestablish a more comfortable society.
● We will maintain an environment for encouraging employees to get voluntarily involved in social
contribution.

Expo 2005 Aichi, JapanThe 2005 World Exposition in Aichi, Japan (Expo 2005), was held from March 25 to September 25, 2005. As a company
based in Aichi Prefecture, we supported the event in a number of ways.

Morimura Okura Museum

Backyard tour

On March 5, 2005, the four companies of the MorimuraGroup* opened their jointly established Morimura Okura
Museum, “CANVAS”. It introduces the present and futureof the ceramic industry as well as the four companies’
history, future dreams and contribution to the global
environment, while also describing fascinating aspects ofdesign and manufacturing. While this museum was
opened as a Japan partnership project at Expo 2005 Aichi,
we look forward to receiving many visitors even after the
expo ends.

The Japan Association for the 2005 World Exposition
organized backyard tours jointly with EPOC*. The tours
provided opportunities to observe environmental
technologies hidden behind the pavilions and facilities. Asa member company of EPOC, we provided two guides anddeepened exchanges with tour participants.
* EPOC: Environmental Partnership Organizing ClubThis is a nonprofit organization established in February 2000
made up mainly of opinion leaders in the Chubu business
community. Approximately 300 companies are involved in
activities to establish a recycling-oriented economic society.

* Four companies of theMorimura Group:・ Noritake Co., Ltd.
・Toto Ltd.
・NGK Insulators Ltd.
・NGK Spark Plug Co., Ltd.

CANVAS

Backyard tour

Contribution to local communities
NGK Spark Plug Group endeavors to cooperate with local
communities as a community member.

Recovery from Typhoon 21
We received a letter of appreciation from Ise City for our
support for the recovery from damage caused by Typhoon
21, which hit southern Mie Prefecture in September 2004.

& Social Report 2006
33 Environmental
NGK Spark Plug Group Environmental and Social Report

Recovery support

Cleaning activities organized by local governments
We support the creation of comfortable and beautiful towns by participating in cleaning and landscaping activities
organized by local governments.
Date

Participating
business site

2005.04.16

Komaki Factory,
Ceramic Sensor

Mt. Komaki landscaping activity

Komaki City

2005.05.22

Iijima Ceramic

Tenryu River Environmental
Volunteer Picnic

Nagano Techno Foundation
Tenryu RiverIna Techno-Valley Regional Center

2005.10.01

Komaki Factory,
Ceramic Sensor

Cleaning activity
around Komaki City Hall

Komaki City

AroundKomaki City Hall

2005.11.08

Head Office andHead Factory

Secure, Safe and Comfortable Urban
Development Campaign, Nagoya 2005

Nagoya City and Nagoya
Urban Landscaping League

Around Hisaya
Odori Park

2006.02.18

Kani Ceramic

Kani City

Kani River

2006.03.19

Nittoku Seisakusho

Oguchi Town

Aise River

Event name

Organizer

Kani River cleaning activity(Pre-Event of Kani City Environmental Festa)

Gojo, Aise andYato Rivers cleanup activity

Event place
Mt. Komaki

Cleaning activity around Komaki City Hall

Traffic safety
As a member of the automobile industry, we strive to ensure traffic safety. We are enhancing our employees’ awarenessof safe driving and also asking drivers around our business sites to drive safely.

Traffic safety education (Miyanojo Factory)

Commuting with headlights on (Miyanojo Factory)

Street patrols across Aichi Prefecture (Head Office/Factory)

Local cultural activities
Satsuma Town Summer Festival (August)Playing field opened to the community

The summer festival was held for the first time since
Miyanojo Town, the home of our Miyanojo Factory, wasmerged as Satsuma Town. A total of 136 people took partin the Nittoku Dance Club as they performed the “Miyanojo
Ondo” and other dances.

When requested by the local community, Miyanojo Factory
opens its playing field for events such as ground golf
tournaments, official rugby games, training camps andchildren’s baseball.

Nittoku Dance Club

Ground golf tournament

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report34

7chapter

We will respect the diversity and individualityof our employees and provide them with a safeand pleasant working environment that utilizes their abilities.
● Based on our corporate philosophy (Management policy) that “We offer a working environment inwhich each one of us is encouraged to make full use of his or her personality and capability”, wewill place emphasis on the cultivation of unique and cooperative human resources.
● We acknowledge that employees are the most important management resource, and will secure
nondiscrimination and equal opportunities in employment, provide fair working conditions andestablish a personnel system to ensure that people with different qualities can fully realize theirown capabilities.
● We will consider the health and safety of employees and provide a comfortable working
environment. We will never get involved in the use of forced labor or child labor in any way.

Personnel system
Equal opportunities

Percentage ofhandicapped employees

Male-female ratio

We are working to eliminate discrimination by race, sex,
belief, handicap, etc. during the recruiting process and in
the workplace in order to ensure equality of opportunities.
We have increased the choices for motivated employees
by establishing a job switching system, and expanded thejob categories for women by installing a security systemthat enables them to work midnight shifts.

Female
16%

（%）
2.0

Female
25%

1.81

1.71

1.57

1.5

Male
75%

Male
84%

1.70 1.69

1.0
0.5

Permanent
employees

New employees(FY 2005)

0.0(as of March 2006)

2001 2002 2003 2004 2005
（FY）

Support to capacity development
Required training

Department
manager

Assistantmanager

ApplicantsDistant learning scheme

Happy Life Seminar

TQM education

Intellectual property education

In-house OA school

In-house language school

New employee introductory training

International project personnel cultivation scheme

Basictechniques

Product learning training for sales staff

Generaltechniques& Social Report 2006
35 Environmental
NGK Spark Plug Group Environmental and Social Report

Special qualification trainingNew
employee

General training

English class

Follow-up
training

General staff

3to7
years

Supervisor
LeaderTechnical training

Leadertraining

10to15
years

Less
than
3 years

Safetyeducation

Sectionchief

New executive New section chieftraining
training

Deputysectionmanager

Evaluation training

Sectionmanager

Practical training of new
employees on engines

Selective training

Education
Education according to function
Continuing
according to Techniques andProfessional education
Sales Globalizationlevel
technologies
education
Management simulation
training

We provide level-specific training, function-specific training
and continuing education to employees, according to theirwork content and business environment, so that they canobtain knowledge and techniques and pass them on to
future generations.

Supporting simultaneous pursuits
To help employees who are raising children and caring forfamily members, NGK Spark Plug Group is striving toestablish a suitable system and a work environment thatallows the simultaneous pursuit of childcare/nursing careand work.
Schemes to support childcareChildcare leave scheme

To the age of 1 year

Childcare leaveextension scheme

To the age of 2 years (e.g. when no nursery school is available)

Special leave scheme

5 days a year until entrance into elementary school; with no payment(for nursing the child)

Short-time work scheme

To the age of 1 year; to take half an hour for childcare twice a day(people)50

40

No. of employees taking childcare leave
No. of employees taking nursing leave

30

20

10

0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 （FY）

Management of work hours
To ensure proper work-time control and prevent excessive
work and unpaid overtime, we perform thoroughmanagement of work hours using IC cards. We are also
developing enlightenment activities by distributing our“Work Hour Management Handbook” to all employees.

Work Hour Management
Handbook

Comfortable workplace award

After mandatory retirement

We are promoting a comfortable working environment for
employees. The newly constructed office building in the
Miyonojo Factory was certified as a “comfortable workplace”
by the Kagoshima Labor Bureau in February 2006. We willcontinue our efforts to meet lofty goals that surpass thestandards set by regulations.

Re-employment system for ex-employees
In April 2001, NGK Spark Plug Group introduced a system of reemploying retirees of retirement age in order to effectively utilize
the knowledge, skills and experience they cultivated throughout
their careers. In response to the enforcement of the revised Law
concerning the Stabilization of Employment of Older Persons,
we will extend the period of re-employment in phases.

Happy Life Seminar
Since 1994 we have held Happy Life Seminars (overnight stay,with spouses) for employees who have reached 50 years old.
Through lectures and group discussions, this seminar gives
them opportunities to think about their sense of purpose in theirsecond life as well as their health and finances.

New office building of Miyanojo Factory

Happy Life Seminar(people)FY 2005

Total

Re-employed ex-employees

20

157

Participants in the Happy Life Seminar *

67

947

* Excluding spouses

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report36chapter

7 Occupational safety and healthPhilosophy and basic policy
In April 2005, we formulated our occupational safety and health philosophy
and policy with the aim of establishing an occupational safety and healthmanagement system.

Safety and health promotion organization
President

Philosophy
Based on respect for human dignity, we position occupational safety
and health as the starting point of our corporate activities.

(

Vice President of
Safety and HealthCentral safety and healthcommittee chairman)

Central safety and healthcommittee meeting(twice a year)〈Factories〉

Occupational safety and health policy

Chief Safety and
Health Administrator• We will comply with the law and our voluntary standards related tooccupational safety and health.
• We will reduce risks and eliminate occupational accidents through thecontinual improvement of our occupational safety and health systemand performance.
• We will acquaint all employees with this policy, encourage selfawareness through education and enlightenment, and broadly develop
occupational safety and health activities across the organization.

Internal Safety
andHealth Auditor

OSHMS
Secretariat* The factories represent Head Factory,
Komaki Factory, Miyanojo Factory and
Ise Factory.

Factory safety and healthcommittee meeting(once a month)Expert committeeorganized whennecessary• Ad hoc assessment
committee• Traffic safety measurescommittee
Department/section safety
and health subcommittee(once a month)

SloganOffice meeting on safety
and health

Reduce risks and build a physically and mentally healthy work environment!

Occupational safety and health management system
To eliminate occupational hazards and create acomfortable working environment, we are seeking toestablish an occupational safety and health management
system (OSHMS).*OSHMS is a system to continuously improve safety andhealth activities by rotating the PDCA cycle. While we have
implemented risk assessment since FY2004 to prepare forthe system, we held a kickoff event again in September
2005 where wepledged to establish asystem through labormanagement
cooperation.
* Certificate of Complianceissued by the Japan
Industrial Safety and Health
Association (JISHA)

Targets and results in FY2005
Item

Target1

Reduction ofoccupational
accidents

2

Improvements
in healthcareawareness

3

Improvements
in working
environment

Kickoff event

Introduction of risk assessment
In an occupational safety and healthmanagement system, it is necessary to
identify and assess risks and take measuresagainst them. Since the introduction of our
new risk assessment in 2005, approximately
20,000 risks in total have been identified in thefour factories, 312 of which were significant
risks such as the risk of falling. We are taking
a series of countermeasures to reduce therisks.

×of employees with abnormal
1 Reduction
findings in general health checkups
2 Voluntary health checkup rate of 100%of separation of smoking areas
3 Promotion
from rest areas
4 Mental healthcare checkup rate of 100%

×

○
○

×
○
○

○

of workplaces in the second
2 Reduction
management category○

To reduce the risk of falling into the discharge tank in the wastewater treatment plant,
the safety fence was extended.

Extended
fence

Fall
Mr. Takayuki Kurata

×of workplaces in the third
1 Reduction
management category(Example of improvement using the new risk assessment)#1 Production Dept.
Semiconductor Components Division
Communication Media Components Group& Social Report 2006
37 Environmental
NGK Spark Plug Group Environmental and Social Report

Result1 Zero disabling accident
total injury frequency rate of
2 Company-wide
1.0 or less
3 Promotion of safety and health educationof safety and health awareness4 Promotion
campaign

Before action

After action

1

Reduction of occupational accidents
No. of disabling accidents（No. of accidents）

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1 Zero disabling accident
In FY2005, four disabling accidents occurred. When adisabling accident occurs, we try to prevent a recurrenceby setting up a special task force composed of safety andhealth committee members to check the adequacy of the
management system and the countermeasures.

0

0

3

1

Disabling injury frequency
rate by year

5

2

3

NGK Spark Plug

2

1

4

Electric machinery andapparatus manufacturing

0.7
0.6
0.5
0.4
0.3
0.2

Average for10 years: 0.21

0.1
0.0

Safety education for executives

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 （FY）

Inspection by a medical adviser

total injury frequency
2 Company-widerate of 1.0 or less

3 Promotion of safety and health educationof a safety and health
4 Promotion
awareness campaign

The total frequency rate was 1.61 with
16 accidents in total including minor
accidents.

We educate employees in line with
their experience and position such as
new employee, third-year employee,
foreman, assistant manager or
executive, and also give education onorganic solvents, dust and forklifts
depending on their job descriptions.

NGK Spark Plug Group gives awards toworkplaces that have had no accidents for acertain period of time*. The winningworkplaces receive a commemorative gift tocelebrate the achievement and to encourage
their employees to continue their efforts.
* 18 to 36 months

No. of disabling x 1 million
accidents
Disabling injury＝
frequency rate
total work hours

2

Improvements in healthcare awareness2 Voluntary health checkup rate of 100%of separation of smoking
3 Promotion
areas from rest areas

To ensure that all employees maintainphysical health, we aim to reduce the numberof employees with abnormal findings in
general health checkups, although the ratio is
actually increasing as our employee age rises.

Employees over a certain age have stomach
examinations and fecal blood tests. Our
target is checkups for all employees coveredby this campaign, but only 80.6% and 75.2%
had stomach examinations and fecal blood
tests respectively in FY2005.

We are promoting separate smoking
areas by setting up smoking rooms that
do not leak cigarette smoke and outdoor
smoking areas. We consider the rights of
not only non-smokers but also smokers.

Ratio of employees withabnormal findings (%)

of employees with abnormal
1 Reduction
findings in general health checkups

4 Mental healthcare checkup rate of 100%

30

0

28.0

28.5

29.5

2003

2004

2005 （FY）

To prevent health hazards caused by overwork,
we provide employees who work many
overtime hours with interviews and advice frommedical advisors. All such employees got
advice and confirmed that they had no problem
with their physical and mental health.

Smoking room

3

Improvements to the working environment

1 Reduction of workplaces in the third management category
2 Reduction of workplaces in the second management category

Workplaces that handle organic solvents and specified chemical substances orgenerate significant noise implement work environment measurement based on
the Occupational Safety and Health Law. Workplaces placed in the third or second
management category as a result of the measurement are committed to improving
their working environment. In FY2005, the number of workplaces generating large
noise was successfully reduced by one each in the third and second categories.
Management categoryFirst

Impact on health

Less

SecondThird
MoreWork environment measurement

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report38

8chapter

We will staunchly oppose antisocial movements and organizations
that pose a threat to the order and safety of civil society.
● We will take a strict stance on pressure from violent civil intervention, and decisive steps incooperation with law enforcement agencies.

9chapter

We will respect local cultures and customs during ourinternational corporate activities and carry out businessthat contributes to the growth of host countries.
● We will perform our overseas business activities based on mutual trust with our customers, suppliers,
employees, etc., and not only comply with the laws of each country but also respect its culture,
customs and history.
● We will train to utilize local employees and suppliers in order to be a trustworthy company and a part oflocal society.

Among our overseas offices, Ceramica e Velas de Ignicao NGK do Brasil Ltda has the longest history. The company
was established in August 1959 as a full-scale overseas production organization in Mogi, São Paulo. It has longcontinued to contribute to the industrial development of Brazil as a top plug manufacturer despite harsh economic
conditions such as inflation. This long history was appreciated in FY2005 when President Kato received two decorations.
We hope that the office continues to maintain good relations with the Brazilian industry as they move forward together.

Mogi honorary citizen

Rio Blanco Order, Official Title

Ceramica e Velas de Ignicao NGK do Brasil Ltda
was selected as an honorary citizen of Mogi Das
Cruzes, the home city of the company.

Decoration conferred by the Brazilian Governmenton those recognized by the government as having
contributed significantly to Brazil in the diplomatic or
economic fields. This time’s 65 honorees included
only one foreigner or private business person.

Panoramic view of Ceramica e Velas de Ignicao NGK do Brasil Ltda

Bandeirantes Charter
Bandeirantes means “explorer”. This was conferred by São Paulo State.

& Social Report 2006
39 Environmental
NGK Spark Plug Group Environmental and Social Report

10chapter

Our top management will lead by example in the spirit of these principles,
striving to cultivate a philosophy of logic by disseminating themthroughout the company, publicizing them among group companies andcustomers, and incorporating them into the company structure.
● Our top management will lead by example in the group’s code of conduct, and take the initiative incultivating, establishing and spreading a corporate culture of encouragement for ethical actions.
● Through the enrichment of opportunities for direct communication with employees, etc. and the
expansion of in-house education, our top management will strongly encourage each member of
NGK Spark Plug Group to be aware of and practice the code of conduct.
● Our ultimate target is the creation and establishment of a united organization with an ethicalcorporate culture based on the participation of all employees.

Activities for CSR
To fulfill our corporate social responsibility, it is a key management task to establish andmaintain a fair and efficient management system while ensuring healthy and transparent
management. We encourage all directors and employees to properly understand andpractice the components of our corporate philosophy, namely “Commitment,” “Management
Policy” and “Action Guidelines”, by providing a “Corporate Code of Conduct” which enhances
awareness of legal and ethical compliance.
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
Feb. 2005

Revised corporate code of conduct
Published “Code of Conduct Guidebook”

Code of Conduct Guidebook

Published “Guidelines on the Handling of Personal Information”

Corporate governance
Board of directors meetings are held (on a regular and as-needed basis) to discuss and make decisions on items specified
by laws and bylaws and other important issues related to management, as well as to supervise the performance of business
operations. In addition, a managing directors committee composed of executive directors and higher positions holds amonthly meeting, and we have set up a system to quickly understand situations and address changes in the environment. A
board of auditors provides appropriate advice on a timely basis, sometimes from an external viewpoint. Although we havedesignated no external board members, we believe that the auditors can play a full role in governance. (* as of June 2006)

General meeting of shareholders
Appointment/dismissal

Board of directors
Administration
director in charge

Internal audit section

President

Indication

Indication

Managing directors
committee

4 auditors of whom
two are outside auditors

Audit

Business operating
sectionVarious conference
and committee
Indication
Audit

Disclosure

Appointment/
dismissal

Board of Auditors

Indication

Appointment/
dismissal

Appointment/
dismissal

Audit

Cooperates mutually

Accounting auditors

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report40Messages from stakeholders
Mr. Yoshifumi Tsuruta

Mr. Seiji Ishida

Member of “sustainable management rating” assessment
committee of Sustainable Management Rating Institute (SMRI)

President,
NGK Spark Plug Worker's Union

Part-time lecturer of Faculty of Humanityand Environment, Hosei University

Mizuho Ward, in which NGK Spark Plug is based, features
greater harmony between culture, nature and life compared withthe rest of Nagoya City, and companies and factories areenjoying the benefits of this good environment and making
efforts to protect it. NGK Spark Plug actively promotes thedevelopment of environmentally friendly products based on thephilosophy of compatibility with the environment, full of the senseof “responsibility as a manufacturer” (CSR) to contribute tosociety through the manufacturing of parts, the core business ofthe company. Nevertheless, as it is mainly involved in businessto-business (B-to-B) transactions, its relations with stakeholders
other than suppliers, such as local residents, tend to be limited.
To address this, NGK Spark Plug has changed the title of its
environmental report to “Environmental and Social Report” andcategorized its activities according to the relevant stakeholders
to make the report easier to understand. This report should be
widely used as a communication tool and the sincere posture of
the company should be appreciated as a model.

Among the items to be considered in the evaluation ofcompanies, the most important are “profitability and growthpotential”, “information disclosure” and “commitment toenvironmental issues”. Among these, a company with no
obvious commitment to environmental issues would find it
hard to gain social recognition nowadays. This
“Environmental and Social Report” clearly explains theactivities of NGK Spark Plug Group, and has renewed myawareness of the fact that this company is reallycontributing to the global environment. As an employee of
NGK Spark Plug Group, I will consider what environmental
activities I should do and start positive taking action. I also
look forward to the future development of NGK Spark PlugGroup’s unique environmental conservation and social
contribution activities.

Results of questionnaire in ECO report 2005
Thank you for sending us all your answers to the questionnaire in the ECO report 2005 published in FY 2005. We takeyour opinions seriously and are working to implement even more thorough information disclosure.

Ｑ１

Did you know the environmental conservation
activities of NGK Spark Plug Co., Ltd.?

Ｑ２

How did you find the ECO report 2005?

I did not know
6%
I knew a little
47%

Ｑ３

I knew a lot
47%

What did you find the most impressive orinteresting topics? (Top 3 answers)

Easy to understand93%

Ｑ４

From what position mainly did you readthe ECO report 2005?
6%

Client6%

Consumer

6%• To be a reliable company

38%• Basic philosophy on the environment

Environmental NGO/NPO
11%

Have you read any of the ECO reports
we published before?
I read themevery time
24%
I have readsome before
29%

This is thefirst time47%

& Social Report 2006
41 Environmental
NGK Spark Plug Group Environmental and Social Report

Public organization
Environmental staff in a company

22%• Chapter 1: Management

Ｑ５

Difficult tounderstand0%

Average
7%

Ｑ６

11%

Research/education institute
Employee of the NGK Spark PlugGroup or employee’s family

Please write down any opinions and/or requests
you may have for the NGK Spark Plug Group on
its environmental conservation activities.

• How about mentioning the reasons for the failure toachieve the targets?
• The status of the activities on compliance is not clear.
• It is easy to understand the results presented in anumerical format.

Third party examination
The NGK Spark Plug Group prepares this report based on our policy of conducting information disclosure in an easily understandable
manner. Environmental & Social Report 2006 underwent a third party examination by TÜV Rheinland Japan, which also examined lastyear’s report. The examination was made by verifying whether or not important environmental information is comprehensively disclosed,
whether or not the disclosed data is accurately measured or calculated, and whether or not the described information is consistent withthe supporting materials.

Undergoing a third party examination
We have edited this report based on our corporate code of
conduct. Although we were concerned over this significant
change from our previous reports, we have received opinions
saying that it is easier to understand. Meanwhile, theenhancement of social aspects and the presentation of specificcases, including those in other countries, have been identified as
future challenges. As an “Environmental and Social Report”, it isstill a “work in progress”. We recognize the issues as people’s
expectations of us, and will do our best to resolve them.
We have corrected any textual errors and insufficient
explanations identified during the examination. We will continue
to steadily improve those parts where immediate improvement
was not possible due to the inadequacies of our system.

Request to answer
the questionnaire

Editorial meeting

Third party examination

Thank you for reading through our Environmental and Social Report 2006. For thefurther improvement of this report, we kindly ask you to fill in the questionnaire.

Please return the completed questionnaire to us by fax or e-mail. ⇒⇒FAX +81 52-872-5942
e-mail : eco@mg.ngkntk.co.jp

Personal information protection policy
We will only use your personal information to delivery next year’s report to you. Even when we publish the results of thisquestionnaire, we will not show it in a form in which the respondents can be identified.

Environmental & Social Report 2006
NGK Spark Plug Group

Environmental and Social Report

42

NGK Spark Plug Group

Environmental & Social Report2006

14-18, Takatsuji-cho, Mizuho-ku, Nagoya, Aichi Pref. 467-8525
http://www.ngkntk.co.jp
Contact for inquiries

Environment & Safety Management Dept.

Tel +81 52-872-5980 Fax +81 52-872-5942
e-mail：eco@mg.ngkntk.co.jp

Date of issue

October 2006 (Next publication schedule : October 2007)
Publishing Director

Norio Kato (Chief Environment Administrator)
Editor in Chief

Kiyoshi Imamura (General Manager, Environment & Safety Management Dept.)