Thinking for tomorrow’s sakeCorporate nameHead Office
Foundation
CapitalBusiness

NGK Spark Plug Co., Ltd.

Group companies

36 subsidiaries (10 in Japan, 26 overseas),
7 affiliates

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

Editorial Policy
NGK Spark Plug Co., Ltd. has issued an “ECO report” every year since 2000 with the purpose of clearly and simply
describing our activities to reduce environmental load. In these reports we have sought to enrich the content of oursocial activities. We have tried to explain the process of our activities by describing the concept, mechanism andresult of each action. Our company name, NGK Spark Plug Co., Ltd., is referred to as Nittoku in the text of thisreport.

Intended readers
Period covered

IAll stakeholders including customers, investors, shareholders, residents of neighboring
communities, business associates and employees.
From April 1, 2004 to March 31, 2005
* Some other very recent activities and cases are also included.

Reporting scope

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

NGK Spark Plug Group
Head Office/
Factory

Nittoku Alfa Service
Co., Ltd.

Komaki Factory

Nittoku Unyu
Co., Ltd.

Iijima CeramicCo., Ltd.

Kamioka CeramicCo., Ltd.

Nakatsugawa CeramicCo., Ltd.

Nittoku Seisakusho
Co., Ltd.

Miyanojo
Factory

Kani CeramicCo., Ltd.

Nichiwa Kiki
Co., Ltd.

Ise Factory

Nansei CeramicCo., Ltd.

Tono CeramicCo., Ltd.

Group AGroup B

NGK
Spark Plug Co., Ltd.

Ceramic Sensor
Co., Ltd.

Affiliates*Where a different definition applies, the scope of coverage is specified in each article.

: Block (joint acquisition of ISO14001)
Factories and companies in blue : Those issuing site reports.

Reference
guidelines
OthersEnvironmental Reporting Guidelines (Ministry of Environment)- Site reports
Describe details of environmental action at NGK Spark Plug’s various factories and nine
affiliated companies. For inquiries please refer to page 2.
- Website
ECO report 2005 and back numbers can be read on our website.
http://www.ngkntk.co.jp/environment01

NGK Spark Plug Group ECO report 2005

INDEX

Guidelines publishedby the Ministry of
the Environment

Management
Environment

1 2
3 1
7 3

Editorial Policy
To be a reliable company
Corporate profile

Business activities and environmental impact 9 6EFIKL- Corporate philosophy- Corporate activity principles- Activities for CSR- Organization- Products supporting the world- Financial Data
- Environmental load from business activities- Material balance

Basic philosophy on environment

11 45EFIKL- Environmental declaration- Environmental policies- Environmental action plan and NGK Spark Plug Group Eco Vision 2010

Chapter 1 Management
Environmental management system

13 8- Acquisition of ISO 14001 certification- System operation<Column> Environmental conservation activities of overseas offices 14

Environmental risk
Compliance<Column> Environmental challenges and eco-words
surrounding the NGK Spark Plug Group

Date of issue

Japanese edition : August 2005
English edition : October 2005
* This is the sixth annual report since the first one wasissued in 2000.

Next publication
schedule(President, Chief Environment Administrator)

Shunichi Takagi(General Manager, Environment & Safety Management Dept.)

Publishing
Department

Public Relations Sec., General Administration Dept.
Tel +81 52-872-5896 Fax +81 52-872-5999

Contact forinquiries

Environment & Safety Management Dept.
Tel +81 52-872-5980 Fax +81 52-872-5942
e-mail: eco@mg.ngkntk.co.jp

NGK Spark Plug

Water resources
Green purchasing

Hazardous substances/green procurement

Contacts for inquiries(Dept. name/tel)

Chapter 3 Products
Eco-design

568-76-1544

Miyanojo Factory

996-53-2211

Chapter 4 Communication
Disclosure

Ise Factory

Environment and
Safety Management Dept.

596-39-1534

GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.
GeneralAdministration Dept.

265-86-5211

52-872-5980

Community

Natural environment
Chapter 5 Mind-set
Education and enlightenment

578- 2-1112
Society568-76-5400

29 AC
29 C

- Greening of factories

599-65-3366

574-63-1031

29 A- Environmental exhibition- Cleaning activity in the local community

574-63-2511

52-382-0511

25 @N
28

- Publication of “ECO report”- Accepting visitors at environmental factories

573-68-5484

52-811-3921

23 9H- Control of hazardous substances- Green supplier system- Response to demands for green procurement- Control of substances subject to PRTR Law

Environment and
Safety Management Dept.

Nittoku Seisakusho

22 M- Purchase of environmentally friendly office supplies- Eco-friendly cars

Komaki Factory

Kamioka Ceramic

22 FK- Reduction of the use of tap and well water<Column> LCA of spark plugs

Nansei Ceramic

Ceramic Sensor

21 J

Environment and
Safety Management Dept.

Kani Ceramic

19 DGL- Effective use of resources- On-site check of waste disposal contractors- Example

Environment and
Safety Management Dept.

Nakatsugawa Ceramic

Tono Ceramic

18

Head Office/Factory

Iijima Ceramic

Nichiwa Kiki

- Eco-efficiency<Column> Environmental management rating and assessment

Waste

Contacts for inquiries
Operation site

17 7
18

- Approach to global warming- Results compared to targets in FY2004- Energy use by year
- Eco Vision 2010
- Examples of energy conservation- Clean energy- Distribution

Publishing Director Norio Kato
Editor in Chief

Environmental accounting
Environmental management

Chapter 2 Factory/Office
EnergyAugust 2006

15
15 B
16

30

Chapter 6 Data section
31
Employment and personnel management system 33
Occupational safety and health34
Social and local activities
35
Consumers
36
Messages from stakeholders
Third party examination

O
O
O
O

37
38

NGK Spark Plug Group ECO report 200502

To be a reliable company
NGK Spark Plug Co., Ltd.
President & Chief Environment Administrator

Norio Kato

Thorough corporate ethics“Sustainability” is a commonly used word these days, andto promote the establishment of a sustainable society it isimportant to not only increase economic value but also
play a social role in response to the expectations ofdifferent stakeholders. Such a social role can only bebegun after the healthy development of society; together
with the pursuit of economic success, it is also
increasingly important to balance ethical and transparent
corporate management and proper information disclosure.
Regarding the ethical aspect, the acts of each employee
actually matter, as corporate activities get more
complicated and speedy. Our company has shown the
direction for firms to take through the adoption of ourcorporate philosophy in 1996 and corporate activity
principles in 1998. In 2004, our “Activity Principle
Guidebook” was published to identify the basis andcriteria for the behavior of employees. We continue toenlighten all directors and employees to enhance theirawareness of legal and ethical compliance and recognizethat the acts of an individual represent the acts of thecompany.
As to information disclosure, we understand that simply
disclosing management indices and information on
products is not enough to meet the demands of ourvarious stakeholders. We hope to tell stakeholders more
about our company by identifying the information they
really need and conveying it to them in reliable and easily
understandable ways such as factory tours.
We believe these efforts will bring about results in theform of trust won inside and outside the company.

For NGK andNTK brand reliability
With 24 consolidated overseas subsidiaries and an export
ratio of approximately 80 percent, the NGK Spark PlugGroup has always maintained a global perspective andpromoted optimal production based on a policy of quality
products.
It is taken for granted that quality is the same across theworld, wherever a product is purchased, and ensuring
quality is one of the social responsibilities of amanufacturer. Nevertheless, it is not necessary for every
factory to have the same manufacturing process as that inJapan, so we are aiming to organize a production systemthat harnesses the respective strengths of each factory.
Such strengths will be further enhanced when theiremployees all have common dreams and targets andrespect our culture.
With the participation of the employees throughout thewhole NGK Spark Plug Group, including our overseas
affiliates, we are working daily to win people’s trust in
the quality of the NGK and NTK brand.

03

NGK Spark Plug Group ECO report 2005

NGK Spark Plug Group ECO report 200504

Environmental
management as a basis
In 2004, abnormal weather conditions occurred in many
parts of the world, and people recognized once again thedeterioration of the environment on a global scale.
Corporate environmental activities are attracting attention
in a world where environmental problems such as global
warming and the loss of biodiversity are becoming more
serious and companies are required to make increasing
efforts to tackle environmental issues.
The NGK Spark Plug Group also considers environmental
activities to be a key task, and has implemented
management and activities stricter than required by law,obtaining ISO 14001 certification jointly for 12
companies including Japanese affiliate companies. Our
overseas affiliates are also promoting the establishment ofstandards for environmental activities under the sameenvironmental policies as in domestic ones. Our first goal
is for all business sites to acquire ISO 14001 certification
as we aim to unify our approach and standards inenvironmental activities, and to centralize the information
to cope with any environment-related emergency situation
in a unified manner.

NGK Spark Plug GroupEco Vision 2010
In April 2004, we revised our environmental policies andenvironmental declaration significantly, formulated anenvironmental action plan for the period until 2005, andshowed the targets to be achieved by 2010 in our “EcoVision 2010.” The aim was to shift from conventional
environmental activities with a focus on legal complianceto a more positive and proactive approach toenvironmental issues.
The NGK Spark Plug Group as a ceramics manufacturer,
recognizes that global warming is an especially important
challenge because ceramic firing necessarily involves thegeneration of greenhouse gases including carbon dioxide.
Although we have been engaged in energy saving and the
reduction of greenhouse gas emissions in the efforts ofrationalization for some time, total emissions haveactually increased due to the steady increase in our
production since 1990 in spite of lower emissions per unit
production. As global warming is a matter of total
emissions, we have set the reduction of total emissions as
our target. To meet it, we will strive to achieve even morerational and efficient production through technicaldevelopment.

05

NGK Spark Plug Group ECO report 2005

Eco-design
To promote the development of a sustainable recyclingoriented society as a manufacturing company, it isnecessary to consider the environmental load throughout
the life cycle of products.
The NGK Spark Plug Group manufactures a wide rangeof products including spark plugs, different types of
sensors, semiconductor components, electronic
components, cutting tools and ceramics for industrial andmedical use. In particular, our sensors are used forenvironmentally friendly purposes in diverse situations,and we are proud of them as our characteristic
environmental products. Since it would be inexcusable for
a company manufacturing environmental products tocarry out environmentally unfriendly activities, we havetaken various measures such as resource saving, energy
saving and production free of hazardous materials since
our early years. While actively adopting eco-design at thedesign and development stages through, for example, theuse of LCA (life cycle assessment) and the improvementof environmental efficiency, we will also conduct
environmentally friendly procurement, production,
distribution and disposal.

Cultivation of fully
eco-minded employees
The most important tasks for the sustainable developmentof a company are the development of its employees andtransfer of its technologies.
To foster eco-mindedness, we will cultivate humanresources who can naturally take environmentally friendly
actions such as separation and recycling of waste,
reduction of energy use and anti-idling. The accumulationof such actions by fully eco-minded employees will resultin the achievement of the NGK Spark Plug Group Eco
Vision.
We believe that the combination of manufacturing
tradition and eco-friendly activities will have a synergy
effect on society as well as our company.

NGK Spark Plug Group ECO report 200506

Corporate profile
Corporate philosophy
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.

SloganWith 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.

Management
Policy3
ActionGuideline

1

NGK Spark Plug Co., Ltd. will behave with social decency inaccordance 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 thatdeepens mutual trust and looks to the future.”
We will respect human rights and abide by all laws andinternational rules as well as the spirit of the law, whether inJapan or overseas.
We will apply our best technology and accumulated experiencein order to provide socially useful and safe products and services
that satisfy consumers and customers and gain their trust while
giving due consideration to the protection of individual data andcustomer data.

Corporatephilosophy

2

Corporate activity principles

Commitment

We will perform business transactions properly based on
fairness, transparency, and free competition. We will also
maintain healthy and correct relations with governments andpublic administrations.
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
We recognize that dealing with environmental problems is an
issue for all mankind that absolutely requires the presence andaction of corporations, and we will take action in an autonomous,
proactive and speedy manner.
We will perform social contribution activities as a “goodcorporate citizen”.

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

Management policy

We will respect the diversity and individuality of our employees
and provide them with a safe and pleasant working environmentthat utilizes their abilities.
We will staunchly oppose antisocial movements andorganizations that pose a threat to the order and safety of civilsociety.

We offer a working environment in which each one of
us is encouraged to make full use of his or her personality andcapability. With all our power we are dedicated to pursue
management based on trust and confidence.

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

Action guideline

Our top management will lead by example in the spirit of theseprinciples, striving to cultivate a philosophy of logic bydisseminating them throughout the company, publicizing themamong group companies and customers, and incorporating theminto the company structure.

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

Adopted in November 1996

Revised in November 2004

Activities for CSR
To fulfill our corporate social responsibility, it is a key management task to establish and maintaina management system that can promptly and properly deal with changes in the businessenvironment while ensuring healthy and transparent management.
Nittoku adopted our corporate philosophy in 1996 and corporate activity principles in 1998 toshow the direction to be taken as a firm. Our “Activity Principle Guidebook,” published in
November 2004, shows the criteria for helping our employees make proper decisions and takeappropriate actions.
We are encouraging all directors and employees to deeply understand legal and ethicalcompliance and to follow the corporate activity principles through various in-house training.

Nov. 1996

Adopted corporate philosophy

Feb. 1998

Adopted corporate activity principles

Apr. 1998

Established Ethical Committee

Feb. 2003
Nov. 2004
Feb. 2005

07

Adopted corporate ethics helpline system operation guidelines
Revised corporate activity principles
Published “Activity Principle Guidebook”
Published “Guidelines on the Handling of Personal Information”

Corporate profile
NGK Spark Plug Group ECO report 2005

Activity Principle Guidebook

management

Organization
Board ofDirectors

Products supporting the world

President

Spark plugs & glow plugs

Auditor

These are essential parts for automobile engines.
NGK spark plugs have developed alongside thehistory of our company. The current developmentemphasis is placed on an environmentallyconscious design ensuring consistent efficiency,
better exhaust quality and energy saving.

Board ofAuditors

Board
Committee

Managing Directors
Committee(Ethics Committee, etc.)

Sensors

Secretarial Office

Corporate Planning
Department

General Administration
Department

Communication Media
Components Group

Personnel
Department

Accounting and
Finance Department

Purchasing
Department

Information System
Department

Intellectual Property
Department

Quality Assurance
Department

Production Engineering
Department

Production Support
Engineering Department

Environment and
Safety Management
Department

R & D CenterTokyo Office

Automotive
Components GroupWe have developed and marketed various typesof sensors that are indispensable in controllingemissions and improving the fuel efficiency ofvehicles, conserving energy and preventing
global warming. Of course we also have sensors
to protect people’s comfortable living spaces.

Semiconductor components
Our ceramic and organic packages fulfill thediverserequirementsofsemiconductor
components which sustain the evolution of the IT
industry, allowing them to attain higher
integration, larger throughputs and smaller sizefor better environmental compliance.

Technical
Ceramics GroupElectronic components
Cutting Tool
Division

Fine Ceramics
Division

Sales and Marketing
Headquarters

Semiconductor
Components Division

Electronic
Components Division

Sales and Marketing
Headquarters

Spark Plug
Division

Sensor Division

Mobile phones have become indispensable inpeople’s lives today. Working inside them are ourdielectric filters and antennas, essential for
sending and receiving radio waves. Our neverending challenge is to achieve clearer voicecommunication and lighter weight.

Cutting tools
Our advanced cutting tools developed with ourunique technologies enjoy a high reputation. The
ceramic series is suitable for the high-speed
cutting of cast iron and heat-resistant alloys, while
the cermet series is used for semi-finishing andfinishing of various steel works.

Financial Data
Account settlements as of March, 2005

Non-consolidated
210,496
22,496
14,03862.98
4,915

Ceramic application products
We also offer a variety of products that takeadvantage of the features of new ceramics. They
cover a wide range of product areas fromindustrial machinery parts and eco-product suchas ozonizers, to artificial bones and consumer
products like ceramic heaters.

2001

2002

: Non-consolidated

2003

2004 FY

22,496
27,711

19,163
12,7882003

2004 FY

millionyen
18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

Net profits for the year

2000

2001

2002

2003

2004 FY

Labor force structure

9,284

9,406

Number of employees

4,915

2000

2002

4,916

0

9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

2001

5,053

10

35.21
49.84

21.48
20.8

20

25.86
32.36

30

46.16
57.19

60

62.98
77.01

70

40

2000

peopleNet profit per sharefor the year

8002004 FY

9,417

2003

5,132

2002

9,491

2001

5,142

2000

12,26415,018210,496
241,185

195,784
228,776

192,002228,928

5,000

yen

50

15,00010,00050,0000

20,000

10,664
10,761

100,000

186,701
221,419150,000

198,644
224,268

200,000

25,0009,306

250,000

Recurring profits

14,03817,147

millionyen

Sales

20,22024,723

millionyen

7,872
11,117

Number of employees as of March 2005

5,884
7,347

241,185
27,711
17,147
77.01
9,406

5,002
4,843

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

10,537
13,056

Consolidated

2000

2001

2002

2003

2004 FY

Dispatched or 14.9%
contract workers

Others 0.4%

Part-time
employees
0.4%
Permanent
employees
84.2%

As of the end of
March 2005

: Consolidated

Corporate profile
NGK Spark Plug Group ECO report 2005

08

Business activities andenvironmental impact
Environmental load frombusiness activities

EnergyBy properly understanding the resources and energy usedin business activities as well as their environmental impact
and manufactured products, the input and output of thosebusiness activities can be identified and an overall picture of
a company can be seen. The products of the NGK Spark
Plug Group consist mainly of ceramics and metal parts, andtherefore use many resources in the forms of raw materials
and parts. We also know that a large amount of energy andwater is consumed for ceramic firing.
With continuous efforts to understand the material balance,
we will look at the social impact of our business activities asa whole and examine more effective measures andimprovement plans.

Material balance

Business sites
in JapanCategory
Purchased electricity

Energy

Paper
Water

Business sites
in Japan

6,015 m3

LPG

58

Gasoline

178 KLTap waterm3

Category

Business sites
in Japan

196

tons

413

tons

Recycled waste

11.9

tons

Landfill / burning
disposal

3.8

tons

Wastewater

3,538

tons

- Factors used to calculate CO2
Japan Auto Parts
Industries Association (2001)
CO2 conversion factor
Purchased electricity
0.330 kg-CO2/kWhGas
2.558 kg-CO2/m3
LPG
6.074 kg-CO2/m3
2.712 kg-CO2/L
Grade A crude oil

Guideline to Methods of Calculating
Emissions of Greenhouse Gases from
Business Sites (Ministry of the Environment)
Category
Gasoline
Diesel oil

CO2 conversion factor
2.32 kg-CO2/L
2.62 kg-CO2/L- 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.

09

Group

191,780,000 kWh

303,790,000 kWh

13,980,000

m3

14,620,000

m3

1,810,000

m3

3,950,000

m3

2,794

KL

2,794

KL

763

KL

781

KL

83

KL

114

KL

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

Our four factories
2,148 tons

Group
2,794 tons

6.7 tons

OfficeCO2 from
energy consumption Transportation

Category

Our four factories

CO2 from energy consumption

Type

Wastewater

Classification
Purchased electricity
Gas
LPG
Grade A crude oil
Gasoline
Diesel oil

3,538 tons

OutputWaste: Use in tests andtransportation

545,520 kWh

Gas

Photocopy paper

Gasoline and Diesel oil

Paper

Input
Type

Purchased electricity, Gas,
: Use in production
LPG and Grade A crude oil

Business activities and environmental impact
NGK Spark Plug Group ECO report 2005

Production,Test, : CO2 emissions fromenergy consumption
Transportation

Classification

Our four factories

Production
Test
Transportation

117,603tons

169,214 tons

Group

1,802

tons

1,802 tons

212

tons

333 tons

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

Classification
Air
Water

Our four factories

Group

16

tons

174 tons

0.1

tons

0.7 tons

environment

Material balance

FY2004Main raw materials

Other materials/auxiliary materials

Ceramic materials : Purchased amountand metals
Reused elements : Reuse of ceramic materials
Classification

Our four factories

Ceramic materials
Metal materials
Reused elements

Plastics, chemicals, oils,
other materials and: Use in different
divisions (estimated)other gases
Classification

Group
13,71321,021
10,841

tons
tons
tons

Our four factories

Plastics
Chemical substances
Oils
Other materials
Other gases

Group

611 tons

1,197 tons

6,057 tons

8,840 tons

921 tons

987 tons

623 tons

1,082 tons

10,359 tons

15,049 tons

Water
Tap water : Use of tap water and industrial water
Well water : Use of groundwater
Recycled water : Reuse of water on-site after purification
Classification

Our four factoriesGroup

Tap water
Well water
Recycled water

730,869

tons

915,553 tons

970,565

tons

1,101,211 tons

969,593

tons

1,102,682 tons

Waste
of waste disposed of by
Recycled waste : Amountrecycling contractors (including the waste sold)

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

Classification

Our four factories

Recycled waste

15,982 tons

18,305 tons

89 tons

535 tons

Landfill / burning
disposalGroup

Product shipment
Products : Amount shipped from different divisions

Classification

Wrapping/packaging materials
Plastics, paper
Use in different shippingand cardboard : divisions (estimated)
Classification
Plastics
Paper
Cardboard

Our four factoriesGroup

Our four factories

Product

tons

Group
27,724 tons

Wastewater
Wastewater : Amount discharged to sewage or public waters

349 tons

645 tons

1,175 tons

1,186 tons

Classification

977 tons

1,548 tons

Wastewater

Our four factories
1,125,934 tons

Group
1,441,242 tons

Business activities and environmental impact
NGK Spark Plug Group ECO report 200510

Basic philosophy on environment
Environmental declaration (revised April 2004)
The Nittoku Group will strive for harmony with society and theglobal environment while serving the people of the world, offering
new value based on the principle of high quality throughout theentire life cycle of our environmentally friendly NGK spark plugs
and NTK new ceramic products.
To achieve this, we have formulated an environmental action plan
based on our environmental policy as a way of accepting our socialrole and responsibility as a trusted corporation. With theparticipation of everyone concerned, we will pursue thedevelopment of a sustainable society and business operations.

Item

Management

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

Environmental operations

Environmental accounting
Environmental risk
Compliance

Environmental policies (revised April 2004)
Management

Environmental
management system

Factories/offices

We will remain constantly aware of the needenvironmental harmony, working to prevent
Factories for
air, earth and water pollution, use energy and/offices resources more effectively, and reduce waste

EnergyWaste mattermaterials.

Pro
ducts

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

Commu
nication

We will promote communication withstakeholders 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 andsupport for environmental conservation
activities.

Mind

Water resources

Green purchasing

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

Hazardous substances

Pro
ducts

Eco-design
Green procurement
DistributionCommunication

Disclosure

Community
Natural environment

Mind
11

Basic philosophy on environment
NGK Spark Plug Group ECO report 2005

Education and instruction

environment

Environmental action plan and
NGK Spark Plug Group Eco Vision 2010 (drawn up in April 2004)*See the respective pages for details of progress

O : On schedule X : Delayed
Progress in
FY2004

Targets for 2004 – 2005
Achieve 2004-2005 targets ahead of Eco Vision 2010
Promote certification of Japanese offices and overseas affiliates
Promote combination with QMS and OHSMS
Introduce eco-efficiency for warming
Investigate and research Kyoto mechanism
Promote construction of environmental management data system
Introduce environmental accounting to Group B
Investigate and research material flow cost accounting
Zero environmental accidents and environmental complaints
Zero cases of environmental law violation
Construct CSR management system

*1

*2

P.13

P.18

P.17

¡Integration of environmental accounting and management accounting

P.15
P.15

¡Compliance with Kyoto Protocol
X

P.19

X

P.20

O

P.21

¡Zero emissions achieved by related companies

P.21¡Efficient use of resources in circulation type society¡Waste emissions of 12,000 tons or less¡Total greenhouse gas emissions in Japan of
150,000 tons or less (down 10% on FY2001)*3

Achieve zero emissions (min. 98% rate of effective utilization)- FY2005 → Groups A and B
Reduce waste emissions (compared with FY2003)

including overseas- FY2005 → Four NGK Spark Plug factories Total emissions down 10%→ Groups A and B Total emissions down 5%

X

Investigate and research the reuse and recycling of used products
Study changing to internal treatment of waste matter

O
O

Reduce use of tap water and well water- FY2005 → Four NGK Spark Plug factories Total used down 10%→ Groups A and B Total used down 5%

O

P.22

Improve eco-efficiency of office supplies etc.
- FY2005 → 90%

O

P.22

(down 30% on FY2003)¡EPR (extended producer responsibility) operations¡Total emissions of substances subject to PRTR law

Reduce emissions of substances subject to PRTR law

of 36 tons (down 80% on FY2002)- FY2005→ Four NGK Spark Plug factories Total emissions 8.3 tons (down 50% on FY2002)→ Groups A and B
Total emissions per unit of resources down 20% on FY2001
Disuse all substances harmful to the ozone layer end of FY2005
Not use prohibited substances ranked as hazardous
Spread LCA procedures throughout company
Introduce eco-efficiency
Introduce environmental labels¡Sharing of environmental policies by related companies including overseas¡Centralization of environmental management data control¡Construction of total management system (QMS, EMS, OHSMS)¡Promotion of CSR management¡Reflection of environmental performance in business evaluationX

5 cases
7 casesO

Reduction of 1% in CO2 emissions (compared with FY2001)- FY2005→ Manufacturing divisions emissions per unit of resources down 4%→ Non-manufacturing divisions emissions down 4%
Introduce clean energy

O
O
O
O
O
O
O

Eco Vision 2010

*2
*2

O

P.24

O
O

P.24

O

P.28

X

¡Environmentally friendly design and product creation¡Development of eco-business

X

Introduce green supplier system
Centralize transportation fuel management
Promote replacement with eco-cars

O
O

P.23

O

P.22

Social environmental reports Issue annually
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
Participate in environmental exhibitions and environment-related events
Promote greening of factories

O

P.29

O
O
O
O
O
O
O

P.29

Promote introduction of environmental education programs*2
Environmental conferences Hold annually
Environment page in company magazine Include every month¡Construction of management system for environmental pollutants

P.23

supplier system of identification and registration of all¡ Greenour business associates¡ Construction of efficient distribution system¡Disclosure of clear environmental data
¡Continuous issue of CSR reports

P.29¡Support and participation in NGO and NPO activities
P.29
P.29

¡Promotion of nature conservation and social contribution

P.29¡Employee education full of environmental ideas

X

O

P.30

O

P.30

*1: Due to the introduction of an environmental management information system and the start of operations, the target of “promoting establishment” has been revised to “introduction”. *2: Scheduled for FY2005.
*3: In the formulation of the roadmap for the reduction of greenhouse gases, the introduction of green energy will be also considered as a method in view of investment efficiency and social trends.

Basic philosophy on environment
NGK Spark Plug Group ECO report 2005

12

Chapter 1 Management
Environmental management system
Acquisition of ISO 14001 certification
The NGK Spark Plug Group is utilizing the ISO 14001 environmental management system (EMS) as an important tool to drive forward
our environmental management. Both our environmental protection system and performance (goal attainment) have been improving
continually since the joint certification of four NGK Spark Plug factories in December 2000. As for our domestic consolidated
subsidiaries, 11 companies have been included in the expansion of our ISO 14001 joint certification as of January 2004, and we are
pursuing uniform management to share common goals and information. Although our overseas consolidated subsidiaries are currently
preparing for certification independently, we also plan to expand certification and develop our EMS based on a common environment
preservation policy.

Name of factories andcompanies

Timing ofcertification

NGK Spark Plug

’99. 8

2 Komaki Factory
3 Miyanojo Factory
4 Ise Factory
5 Nittoku Seisakusho Co., Ltd.
6 Nittoku Unyu Co.,Ltd.
7 Nichiwa Kiki Co.,Ltd.
8 Kamioka Ceramic Co., Ltd.
9 Kani Ceramic Co., Ltd.
0 Iijima Ceramic Co., Ltd.
A Nittoku Alpha Service Co.,Ltd.
B Nakatsugawa Factory Co., Ltd.
C Tono Ceramic Co.,Ltd.
D Nansei Ceramic Co.,Ltd.
E Ceramic Censor Co., Ltd.
F Tokai Taima Kogu Co.,Ltd.

’00.12’00.12’00.12’04. 1’00.12’04. 1’04. 1’02.12’02.12’99. 8’02.12’04. 1’02.12’00.12

TÜV Rheinland Japan

Number of
employees

Name of factories andcompanies

1,081
2,684

N NGK Spark Plug Industries ’00. 5

384
104
18
59
143
155
448
124
441
106
52
431
35

(overseas)

Consolidated subsidiaries

NGK Spark Plugs (U.S.A.) ,Inc.
G
West Virginia Factory ’00. 7
Irvine Factory’00. 8H

TÜV Rheinland of
North America482

I NGK Spark Plugs (U.K.) Ltd. ’01.12

BSI (British Standard
Institute)

72

J P.T. NGK Busi Indonesia
K NGK Spark Plug (Australia) Pty. Ltd.

Certification
organization

Number of
employees

3729Europe S.A.S.

546

TÜV Rheinland Japan

Timing ofcertification

L NGK Spark Plugs Canada Limited
M Taiwan NGK Spark Plug Co., Ltd.

Consolidated subsidiaries (overseas)

Consolidated subsidiaries (domestic)

1 Head Office/Factory

Certification
organization

AFAQ

45

O Bujias NGK de Mexico S.A. de C.V.
P NGK Spark Plugs (France) S.A.S.
Q NTK Cutting Tools Korea Co., Ltd.
R NTK Technologies ,Inc.

51
33
57
50

S NTK Technical Ceramics(Taiwan) Ltd.

6NGK Spark Plugs (U.S.A.)-U NGK Spark Plugs Singapore Pte Ltd
V NGK Spark Plug Middle East FZE

11

T Holding, Inc.

W Ceramica e Velas de lgnicao
NGK do Brasil Ltda.

7’01.12X NGK Spark Plug Europe GmbH ’04.11
Y NGK Spark Plug (Shanghai) Co.,Ltd.

ABS
Quality Evaluations

1,103TÜV Industrie Service

183
89

Z NTK Technical Ceramics
Polska Sp.zo.o.

333
36

54

[ NGK Spark Plugs Malaysia Berhad.
\ Siam NGK Spark Plug Co., Ltd. ’02.11

RW TÜV181] Woo Jin Industry Co., Ltd.

kfq(Korean
Foundation for Quality)

217’05. 4108*Number of employees as of March 2005

I XZ
NP

L
GT
Q]
Y
V

80
C9B
4
D

1256
7AEF

3

13

Chapter 1 Management
NGK Spark Plug Group ECO report 2005

R
H
O

\ MS
[
U
J

W
K

environment

System operation
The NGK Spark Plug Group's EMS is based on the participation of all our employees in order to implement our activities. We operate a
PDCA (Plan-Do-Check-Action) cycle throughout the entire group and in each region (factory), and verify the performance status of theobjectives and the goals of the entire group as well as each region during a management review conducted by the chief executives.
An internal environmental audit is conducted annually to verify and evaluate the compliance of our self-regulation in addition to theoperating status of the system and the observance of the law. We are also striving to enhance the awareness of our internal
environmental auditors and promote exchange between different sections, through activities such as having auditors go and audit othersections.
NGK Spark Plug GroupRegions

Environmental Activity Promotion Organization

ActionPresident

Review by the chief
executives Central
Environment Committee

Continual
improvement

Check

Chief Environment
Administrator
Chairman of Central( Environment
Committee )Central Environment
Committee

Central Energy Conservation
Expert Committee
Central Waste
Sub-committee

Environment Administrator

ActionLocal Environment
Committee

Check

Continual
improvement

Do

In-houseenvironment audit

Do
Execution andoperation

Environmental
ISO Secretariat

Plan
Environment preservation
policy Corporate environmental
objectives and targets

Internal
Environment
AuditorEnvironmental
audit

Chemical Materials
Sub-committee
Green Procurement
Sub-committee

Waste Sub-committee

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

Plan

Number of ISO14001 auditors

Regional environmental
objectives and targets
Regional
environmental plan

Oversea Plant Environmental
Protection Activities

Energy Conservation
Expert Committee

Environment Committee

Four NGK
Spark Plug factories

ISO14001
assistant examiners
ISO14001
Internal auditors

ColumnAffiliates

6

0

293

146

NGK Sparks Plugs (USA) Inc.,
West Virginia Factory

NGK-W.V. operations include manufacturing of the Oxygen Sensors
and distribution center for North America. In July 2000, it became thesecond NGK overseas facility to be ISO 14001 certified. W.V. plantroutinely complies with the US Federal and W.V. State laws andregulations. Honda, one of our customers, has recognized our
performance.
On June 16, 2005 WV State Dept. of Environment awarded 2004
Excellence Award only to NGK within "Small Quantity Generator" (ofhazardous material) category.
1994 Established as NGK Manufacturing U.S.A. INC
2000 ISO14001 certified
2002 NGK Spark Plugs (U.S.A.), INC. and NGK Spark Plug MFG. (U.S.A.), INC. werereorganized to form NGK Spark Plugs (U.S.A.), INC. and NTK Technologies, INC.
to reflect their product lines.
Lot : 40 acre (Approx. 160,000 m2 )NGK-WV Environmental Policy
NGK-WV is committed to protecting the environment and conserving resources by:Complying with regulations
Preventing pollution & waste
Improving objectives & targets

Recycle Day
Nov 13, 2004
NGK booth was a big part of the Recycling
Awareness Campaign organized by local
governmental agency.

Adopt-A-Highway
Adapt the segment of the highway tovoluntarily pick up the trash.

2004 Recycle Material
Fashion Show

Emergency Action Plan

MSDS

Detailed instructions are published for
associates to follow in case of an emergency
such as Shelter in place, which may becaused by a chemical leak from nearby
chemical plant. The room (pictured on left) is
one of many such shelters.

MSDS is made available throughout thefacility with networked work stations.
Assocaite can print MSDS on demand.
This system helps us to comply with
OSHA's Right to Know regulation.

Upon winning the internal
recycled material competition,these two NGK entries won
the 1st and 3rd prize at theregional competition.

1st

3rd

Chapter 1 Management
NGK Spark Plug Group ECO report 200514

environment

Environmental risk
Business activities involve various environmental risks, and we are making efforts to reduce such risks through proper management ona regular basis. To deal with the risks of air pollution and water pollution, we have concluded an agreement on pollution control withmunicipalities and implemented self-regulation that is stricter than the law, with which we also comply. In handling the risk of soil
contamination, we take preventive measures such as installing aboveground piping, and conduct pollution surveys on estate we plan topurchase.

Soil survey

PCB control

We purchased an estate in
FY2004 that had been used as awarehouse. Although the estate
had no record of use of hazardous
materials, the state of pollution
was surveyed just in case any
pollution had been generated
before the estate became awarehouse.

The Head Office Factory and
Komaki Factory store high-voltage
condensers and ballast for
fluorescent lamps containing
PCBs (polychlorinated biphenyls).
We continue strict control right up
until the treatment of stored PCB
waste is properly completed under
the national PCB waste treatment
program.

Drill to practice
emergency
procedures
To prepare for emergency situations
such as equipment malfunction
due to earthquake and fire, wehold drills depending on thebusiness activities of each area.

ComplianceTo ensure thorough compliance in business activities, we strive to conform to environmental laws based on our environmental policies.
We handle violations and complaints under our ISO 14001 system according to the prescribed procedures, and have taken
countermeasures against violations and complaints in the last three years. We will continue to fully investigate and publicize all violations
and complaints and take the appropriate measures.

Four NGK Spark Plug factories
FY2002
Violations*1 1

No. of violations/complaints

FY2003

FY200400Complaints
0
*2 1
*3 4
* 1 : The noise level (at night) exceeded the regulation level at the Head Office Factory.
* 2 : A waste disposal contractor made a complaint to the Head Office Factory requesting an improvement in
the mixing of foreign matter in waste.
* 3 : Two complaints were made both to the Head Office Factory and Komaki Factory requesting an improvement
in noise levels.

Affiliates

Violations

No. of violations/complaints

FY2002

FY2003*4 *5 6

*6 *7 3

FY2004* 8 *9 7Complaints
*10 3
*11 1
*12 1
* 4 : The noise level exceeded the regulation value at Kani Ceramic.
* 5 : At Nittoku Seisakusho, the noise level exceeded the regulation value (3 cases), the trichloroethylene levelin effluent exceeded the regulation value, and BOD and COD exceeded the more stringent standard set
by Aichi Prefecture.

* 6 : The noise level exceeded the regulation value at Kani Ceramic.
* 7 : The noise level and oil level exceeded the regulation levels at Nichiwa Kiki.
* 8 : The noise level exceeded the regulation values at Kani Ceramic, Kamioka Ceramic and Nittoku Seisakusho(2 cases).
* 9 : At Ceramic Sensor, the nitrogen level and COD in effluent exceeded the value agreed on with Komaki City,and the fluorine level exceeded the regulation value.
* 10: Complaints were made respectively to Iijima Ceramic, Kani Ceramic and Nittoku Seisakusho requesting
an improvement in noise levels.
* 11: A complaint was made against Nittoku Seisakusho requesting an improvement in noise level.
* 12: A complaint was made to Ceramic Sensor requesting an improvement in the disposal of cigarette butts.

15

Chapter 1 Management
NGK Spark Plug Group ECO report 2005

environment
ColumnEnvironmental challenges and eco-words surrounding the NGK Spark Plug GroupThe world is seeking to establish a sustainable, recycling-oriented society. The entry into force of the Kyoto Protocol and theenhancement of chemical control are part of this movement. In addition to the pursuit of economic growth, companies have tofulfill their social responsibilities through environmentally friendly and sustainable business activities. Here we show someenvironmental terminology in columns and illustrate the environmental challenges faced by us along with our environmental
conservation activities toward Eco Vision 2010.

Influence of production of
raw materials of alumina
Tremendous energy
use upon refining

Influence of abandonment anddisposal of products used in the market

Influence of fossil fuelused to transport products.

Landfill disposal

Emission of CO2

Discharge of
red mud to sea

Water resources

Fuel cells
System to generate electricity
through the chemical reaction ofhydrogen obtained from naturalgas, etc. and oxygen in the air.
The waste heat can also be usedin the form of hot water or steam
so the generation efficiency isrelatively high. It is also expected
to be effective in distributed
generation.
See P16.

→

Cogeneration
This is a system of generating
electricity with turbines andengines, taking advantage of theheat simultaneously developed for
air-conditioning systems and hot
water systems. It enables higher
total energy efficiency.

"Reducing water usage as much as
possibleisfundamental"(JapanAutomobile Manufacturers Association).

Kyoto Protocol

Manifest

The Kyoto Protocol was adopted in
December 1997, and entered into force on
February 16, 2005. Accordingly, Japan isrequired to reduce emissions of greenhousegases (carbon dioxide, methane, nitrous
oxide, HFCs, PFCs and sulfur hexafluoride)by six percent of their 1990 levels.

According to the goalof the Action Schedule
for Environment 20042005, we will address
the reduction of thewater supply and thewell water.

As part of our "EcoVision 2010", we are
seeking to reduce
CO2 emissions by 10
percent(below
the2001 level).

→ See P12 and P22.

→ See P12 and P19.

ELV directive

This is a slip introduced to preventthe illegal disposal of industrial
waste. It enables absoluteconfirmation of processing.
We also conduct site surveys ofindustrial waste disposal processors.

→ See P22.

RoHS directive
EPR

This is one of theEuropeandirectives
concerning vehicles thathave reached the end of
their useful life. It has beenbasically prohibited as of July
2003 for them to contain lead,
cadmium, hexavalent chromium andmercury.

This is one of theEuropeandirectives
concerning the limited useof specific toxic substances
included in electric / electronicequipment. It will basically be
prohibited as of July 2006 to containlead, cadmium, hexavalent chromium, andbrominated flame retardants (PBB, PBDE).

Substitution by other substanceshas been
taking place.

Substitution by other substanceshas been
introduced.

Sustainability

CSR

Compliance

Stakeholders

It is to grow and develop the society
continually without sacrificing the living
standard in the future. It can also be said,"Possibility for Sustainability".

Stands for corporate social responsibility.
This is the concept of companies having tofulfill
their
responsibilities
onenvironmental, economic and social
issues. Environmental managementbalancing these three is required.

This means to observe regulations.

Communication will enhance mutual
understanding.

It has been established at the Miyanojo
Factory, where electricity and heat havebeen utilized.

Red mud
This is generated when refining
alumina, which is a raw materialof ceramic. The discharge of red
mud to the sea is becoming aninternational problem, and there isa threat that alumina may nolonger be produced.

Extended producer responsibility
This is the idea that there is acertain level of responsibility on
the side of corporations in terms
of proper recycling and disposal
even of used products.

→ See P15.

→ See P29.

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.

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.

Mar. 1974

Antipollution agreement was concluded between Komaki Factoryand Komaki City.

Jul. 2001

Cogeneration plant was installed in Miyanojo Factory and utilizationof plating plant waste heat was commenced.

Apr. 1980

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

Sep. 2002 Miyanojo 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.

Apr. 1994

Ise Factory introduced a closed wastewater treatment system toits plating plant.

Apr. 1999

Environment declaration was announced.

Jun. 1999

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

Dec. 2002 Combined ISO14001 certification covering Nittoku Group 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.
Sep. 2003 Ise Factory achieved zero emission.
Jan. 2004

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

Oct. 2004

Nittoku Seisakusho and Ceramic Sensor achieved zero emission.

Mar. 2005

Nansei Ceramic achieved zero emission.

Aug. 1999 Head Office/Factory obtained ISO14001 certification.
Oct. 1999

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

Sep. 2000 The first edition of ECO report was issued.

Chapter 1 Management
NGK Spark Plug Group ECO report 200516

environment

Environmental accounting
For the effective promotion of environmental management, it is important to measure the environmental conservation cost and its effect ina quantitative manner. We introduced environmental accounting from FY1999, and expanded the scope to cover the group in FY2003.
The environmental conservation cost in FY2004 was 8,401 million yen in four Nittoku factories and 8,967 million yen in the group, anincrease of approximately 5%.
The effect of environmental conservation measures taken in FY2004 was 234 million yen on a non-consolidated basis.

Environment preservation cost

Unit: million yen

Items

Four NGK Spark Plug factories

Classification

Costs within
the businessarea

Major efforts

Group
Investment

ExpenseInvestment

Expense

2004

2003

2004

2003

2004

Pollution prevention cost

Air/water pollution prevention and noise reduction

180

80

1,064

952

118

1,171

Global environmental
conservation cost

Global warming prevention, energy conservation

2

4

70

69

10

112

Resource circulation cost

Effective resource utilization,industrial waste treatment/disposal

28

37

424

520

47

694

Sub-total

211

121

1,557

1,541

174

1,977

Upstream & downstream cost

Recycling of products, etc., green purchase differences

0

0

4

4

0

4

Management activity cost

Employee environmental education,
EMS construction and operation

4

4

345

403

7

470

R&D cost

R&D of products promoting environment preservation

529

657

5,199

5,433

657

5,433

Social activity cost

Nature protection, afforestation, environmental ads

0

0

173

188

0

196

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

3

14

0

14

-

0

4

0

32

4

32

743

786

7,282

7,616

841

8,125

Other costs
Total

The environmental conservation cost is classified according to the "Environmental Accounting Guidelines 2002" published by the Ministry of the Environment.
The cost is calculated on a pro-rata basis, based on the records of direct capital investment and cost, according to our independently set rules.

Environmental conservation effect measurements
Classification
Effect measured in the business area

Types of effectFour NGK Spark Plug factories
2003

Year-on-year

2004

(%)

RatingGroup
2004

Energy consumption

Effect measured withrespect to resource
input into operations

Purchased electricity (10,000 kWh)

18,231

19,1785.2

30,379Gas (10000 m3)

1,447

1,398

-3.4

1,462

LPG (10000 m3)

168

181

8.0

395

2,793

2,794

0.0

2,794

Tap water (tons)

728,127

730,869

0.4

915,553

Well water (tons)

893,326

970,565

9.0

1,101,211

453

544

20.2

824

114,928

117,603

2.3

169,214

1.143

1.150

0.6

---

851,646 *969,593

13.8

1,102,682

14,327

15,98218.9

18,305

105

89

-15.3

535

16

16

5.6

174

Grade A crude oil (KL)
Water consumption

PRTP law-regulated substance consumption (tons)
CO2 emission from energy consumption (tons)
Emission per unit production(tons CO2/output added value) (tons/million yen)

Effect measured withrespect to environmentalload and waste frombusiness activities

Recycled plant wastewater (tons)
Waste
Recycled mass (tons)
Landfill, incineration (tons)
PRTR law-regulated substances released into air andwater (tons)*The definition of recycled water has been modified to mean water reused after wastewater treatment.
*The following marks indicate a performance rating compared with the previous fiscal year - O: improvement of 5% or more;

Effect of environment conservation
measures shown in yen
Area of recognized effectRevenue

Cost saving

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

115

Energy cost saving achieved from energy conservation efforts

82

Waste disposal cost saving achieved by resource
conservation and recycling efforts

37

Total

17

Unit: million yen
Four NGK Spark
Plug factories

Chapter 1 Management
NGK Spark Plug Group ECO report 2005

234

: fluctuation of +/- 5%; and X: deterioration of 5% or more.

environment

Environmental management
Eco-efficiency
Environmental efficiency is an index representing the ratio of theeconomic value creation to the environmental impact of acompany's business activities. For their sustainable development,
companies have to minimize their environmental impact while
maximizing their economic value, and the improvement ofenvironmental efficiency is an important challenge.
We also assess CO2 emissions and the amount of waste
generated to assess the environmental efficiency, and promote
environmental management.
CO2 index from production(Four NGK Spark Plug factories)
FY2001=100
120
100

100

Output added value
Eco-efficiency =the costs of outsourced processing from sales.

Index of landfill/incineration of waste(Four NGK Spark Plug factories)

FY2001=100
120

FY2001=100
2,000

107

106

100

100

Environmental load

* The output added value is calculated by subtracting material costs andIndex of effective use of waste(Four NGK Spark Plug factories)

116
101

Our Eco-efficiency

107

1,761

92
1,500

80

1,332

80
Output added value

60

60

CO2 emissions fromproduction

40

1,000

Output added value

Output added value
Landfill / incineration of waste

Effective use of waste
40
500
20

20

238
100

0

0
2001

2002

2003

2004

2001

FY

2002

2003

2004

0
FY

2001

2002

2003

2004 FY

ColumnEnvironmental management rating
and assessment
In order to logically and objectively evaluate the reality of the environmental
management of corporations from the perspective of building a sustainable
society, an "environmental management rating" has been conducted since
FY2002 by the Sustainable Management Forum of Japan and the Sustainable
Management Rating Institute.
We participated in the third environmental management rating in FY2004, oursecond time following participation in FY2003, in order to achieve our goal ofbeing evaluated as a sustainable company.

Our rating result
FY2004

Answer to survey sheet
Hearing

Three categories, 23-evaluation
phases and 207 questions

I Reduction ofenvironmental
impact inassociation
with tran
D Riskmanagement

A Corporate philosophy

H Prevention of L Prevention andsolution of soil
global warming
pollution
E Information
Q Formation of
disclosure andlocal living
communication
environment

In the environmental management rating in FY2004, in which 64 companies
participated, the management and social aspects were emphasized and morequestions asked on CSR (corporate social responsibility). Results areillustrated by five levels of leaves on a tree, with more green leaves meaning
better environmental management of the company.

T Establishment ofsafe and healthy
work environment

U Thorough equalityof opportunities

N Conservation of
F Quantitative grasp
W Support for suppliers’of materials and energy biodiversity
environmental andsocial preparedness
O Sustainablecorporate culture

Our president was interviewed in January 2005 and the final results were
published on March 25. The tree of NGK Spark Plug Group is shown on theright. Our tree had no fallen leaves but some red leaves on the two evaluation
aspects of "prevention and solution of soil pollution" and "support to suppliersin their environmental and social preparedness."
We acknowledge these aspects evaluated with red and yellow leaves as our
future challenges, and will strive to improve them for better environmental
management.

Management

Environment

Society

Number of leaves

Reached a sustainable level

39

Almost reached a sustainable level

20

On the way to reaching a sustainable level

7

Doubtful to reach a sustainable level

3

Difficult to reach a sustainable level0

Evaluation subjects

K Chemical control
R Performance of
responsibilities to
consumers

G Reduction of M Conservation ofwater resources
environmental
V Harmony of workand quality P Succession and and private life
impact ofproducts andcreation of local
services
cultureConfirmation of the itemsdescribed in the survey sheet

Evaluation

S Secured continuityof employment

B Corporate governanceInterview with corporate executives

SurveyContent

J Recycling andreduction of waste

C Compliance

Number of companies
evaluated/total

Domestic

Most consolidated companies

12/13

Overseas

Main consolidated companies

6/23

Mechanism
Strategy

ResultStrategy

ResultSustainable Management Rating Institutehttp://www.smri.jp/

Chapter 1 Management
NGK Spark Plug Group ECO report 2005

18

Chapter 2 Factory/Office
EnergyApproach to global warming
For the prevention of global warming, it is important to reduce the total emissions of greenhouse gases.
We have set the target of reducing our domestic emissions of greenhouse gases to 150,000 tons (10%below the FY2001 level) by FY2010 in the "NGK Spark Plug Group Eco Vision 2010." We will promote
activities to meet this goal, such as the rationalization of processes and introduction of high-efficiency
equipment. We will also calculate the emissions of greenhouse gases other than CO2 accurately for
effective reduction activities.
Central Energy Conservation Expert Committee

Shigeyasu Yamada, Chairman/Director

Results compared to targets in FY2004

Directproduction
sectorOther
sectors

Emissions perunit production
Emissions

Result in
FY2004

Target for
FY2004(four NGK Spark
Plug factories)

1%

4%(from FY2001)

4%

22,85722,9901.6

21,319Up 0.6%15,000

0.989

0.973

1.2

0.950

0.916

0.846

0.8

10,000
Down 7.7%

5,000(from FY2003)

1%(from FY2001)

2.0
23,28522,20820,000

7.7%(from FY2003)

Results of activities in four NGK Spark Plug Group factories

25,000CO2 emissions

Target for
FY2005tons CO2: Direct production sector

CO2 emissions per unit production
CO2/million yen: Other sectors

We have set the following (FY2005 and yearly) targets since
FY2002 and promoted activities and measures accordingly.

0

2001

2002

2003

0.4

2004

0.0

2005

FY

(target)+0.6%(from FY2003)(from FY2003)

Composition ofused energy

In FY2004, we developed our "no necktie" campaign and othermeasures in other sectors, but failed to achieve the target due tothe impact of the heat wave that summer.

(CO2 equivalent)

Grade A crude oil
7,576 4.5%

Gas
61,387
36.3%

Electricity (purchased electricity)
100,251
59.2%<Group>Energy use by year

5,000

2,000
1,000

1990

1995

2000

2001

2002

2003

2004

FY

0

1990

1995

2000

2001

2002

2003

2004

0

FY

2002

2003

2004

508

7,464
0

2,794
2,794

3,183

3,000

3,148

4,000
2,793
3,056

10,000

6,000
5,721

61,38759,88046,740Consumption

20,00047,191

Consumption

28,876
19,17819,031

18,231

19,154

20,51530,000

7,000

2,445

5,000

17,831

10,00013,64415,00040,000: Group

Grade A crude oil(KL)

50,04050,00025,00048,331

30,00030,37960,00044,527(tons -CO2)

35,00020,000Gas (CO2 equivalent)

22,045(10,000kWh)

Consumption: Four NGK Spark Plug factories

Purchased electricity

1990

1995

2000

2001

FY

consumption of crude oil increased because of the introduction* The
of a cogeneration system at Miyanojo Factory in FY2001.

Eco Vision 2010

: Four NGK Spark Plug factories

2002

11.76

2001

2003

2004

15

16.92

16.39

2000

11.49

9.07

1995

12.14

1990

11.82

0

7.01

10

11.36

15

5

: Group

CO2 emissions by year

10,000 tons
CO220

CO2 emissions

CO2 emissions from the energy consumed for production by us in
FY2004 totaled 169,000 tons. Looking at CO2 emissions in ourfour factories over time, emissions have increased by 68% since
production was increased by 127% even though emissions perunit production have decreased by 26% from the FY1990 level.
We aim to achieve our Eco Vision 2010, and have prepared aroadmap for the period to 2010 to efficiently and effectively reduce
CO2 emissions on a group-wide basis.

2010(target)19

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 2005

FY

environment
environment

Examples of energy conservation
Many devices in our production units require air (compressed air) for their operation. As the use of a compressor to produce this air,which is distributed to the production units through pipes, consumes a large amount of electricity, we have made efforts to improve theair distribution process at our Head Office Factory.

BeforeactionAfteraction

It is necessary to maintain a certain level of air pressure todeliver air from a compressor to the most distant production
unit. To allow for the decline of pressure in pipes, the air had
to be produced under high pressure conventionally.

Looped pipes are used for more effective use of the air. The
compressors, which used to be operated manually on anhourly basis, are now automatically operated.

0.52 Mpa
0.49MPa

Production unit

Production unit

0.49MPa

0.48MPa

Production unit

0.49MPa

0.49MPa

Production unit

Production unit

0.49MPa

0.48MPa

Production unit

Production unit

Production unit

The distribution system has been improved to be able tomaintain a certain level of pressure until the air reaches themost distant unit even if the air pressure produced in thecompressors is lower, so the power consumption of thecompressors has been reduced by 6%.

Power consumption ofcompressors

Compressor
No. 1

0.51 MPa

0.49MPa

Compressor
No. 2

ResultCompressor
No. 2

In addition, we engage in the reduction of power consumptionof the compressors through the prevention of air leaks, andimplement inspections twice a year to detect and repair air
leaks.

FY2003

1,995,000 kWh

FY2004

1,879,000 kWh

Looped pipes

0.50MPa

Compressor
No. 1

Reduction ofCO2emissionsby 38 tons

Clean energy
We installed photovoltaic generation panels on the rooftop of the main building of our
Head Office in October 2003. The electric power generated is used for air-conditioning
and illuminating the product exhibition panel in the showroom on the first floor of themain building.
OutlinePerformance in FY2004

Power generation capacity(maximum sustained power)

10kW

Battery module

167w-60 panels

Installation area

5X15.2m

Power generation

Approx. 13,000 kWh

CO2 reduction

Approx. 4.3 tons CO2

Distribution
Miyanojo Factory manufactures spark plugs, our main product, many of which are exported overseas. While they were traditionallytransported by land to Nagoya Port and then shipped, shipment from Hakata Port can reduce the transportation distance and time,depending on the destination. As a result of the rationalization of distribution, the ratio of exports via Hakata Port was gradually
increased, and in FY2004 such exports grew by 8.9% over the previous year. Diesel oil consumption fell by 21 KL and CO2 emissions
were reduced by 55 tons.
Change of ports for shipment

FY

Hakata Port

Nagoya Port

2003

2004

Miyanojo Factory

41.7%

58.3%

32.8%

0%
: Nagoya Port

67.2%
50%

100%

:Hakata Port

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 200520

environment

Waste
Effective use of resources
We dispose of waste properly in order to use resources as effectively as possible. In particular, in order to reduce the environmental
impact of waste, we handle waste in the following order of priority:(1) Reduction (2) Reuse (3) Recycling (4) Landfill/Incineration
Each business site of our group is working for the achievement of zero emission by FY2005. The factories that have already attained
zero emission now focus on further increasing the ratio of internally reused raw materials and reducing waste to minimize input materials
in the material balance.
Although various business sites have attained zero emission, waste generation has increased by 15.8% over the last year as a result of
production growth.

Results of efforts in FY2004

Definition of effective use

Waste generation
in FY 2004 (tons)

Reduction rate
in FY2004 (%)

Head Office/Factory

899.8

901.0

0.1

May

2003

Komaki Factory

8,412.2

10,560.8

25.5

May

2003

Miyanojo Factory

3,056.8

3,056.8

0.0

September 2002

Ise Factory

2,063.6

1,552.0- 24.8September 2003

Iijima Ceramic

1,098.8

1,144.5

4.2

Nakatsugawa Ceramic

362.3

340.5

- 6.0

Kani Ceramic

74.5

114.9

54.1

Nansei Ceramic

49.1

47.5

- 3.1

Kamioka Ceramic

102.5

94.4

- 7.9

Nittoku Seisakusho

230.7

220.8

- 4.3

4.0

6.6

62.1

Nichiwa Kiki
Tono Ceramic

16.2

14.7

- 9.2

Ceramic Sensor

811.6

785.3

- 3.2

Total

17,182.3

18,839.7

9.6

We commit external contractors to reuse and recycle the valuable partsof the waste generated from our factories (including the recovery ofheat), and calculate the amount as the waste effectively used. This
includes the parts of the waste sold as valuable resources.

Date of achieving
zero emission

Definition of zero emission
In the NGK Spark Plug Group, zero emission is defined as the state inwhich the recovery rate of waste, including both industrial waste andgeneral waste from our operations, is at least 98%.

March

2005

October

October

Recovery rate =

2004

2004

"Data section" in P.31 for the waste effectively used, amount of landfill and incineration, a recovery* Seerate of each factory in FY2004.

Waste disposal cost (four NGK Spark Plug factories)

20,00016,667

16,14814,766

17,182
16,071

16,323

14,42914,00012,0004,000

18,84012,986
11,58010,000
8,000
6,000
4,000
2,000
0

1999 2000 2001 2002 2003 2004

Four NGK Spark Plug factories

Group

2005 FY(Target)On-site check of waste disposal contractors
To confirm the proper treatment of waste generated by the NGK
Spark Plug Group, we conduct on-site checks of the intermediate
treatment and final disposal processes. In FY2004, 95 checkers intotal visited 50 contractors (48 checkers from the four NGK Spark
Plug factories visited 27 contractors) to inspect their treatment
and disposal process sites, and confirmed that there was noproblem in the way they were controlled.

21

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 2005

Disposal cost (10,000 yen/month)

Waste generation (tons)

16,00098%

Reused, recycled orlandfill/incinerated amountSetting the borderline at 98% for zero emission is to avoid excessive
energy consumption that would result from perfectionism to recovergarbage such as cigarette butts and tea leaves, which is insteadincinerated.

Waste generation by year
18,000

Reused or recycled amount

4
3.41

3,500
3,410

3.5
2.97

3,000

2.88

2.87

2.95

2,693

2,500

2,554

2,376

2,000

2.5
2

2,080

1,964

3

1,500

1.5

1,000

1

500

0.5

0

0
1999

2000

Disposal cost

2001

2002

2003

Disposal cost per ton

2004

FY

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

Waste generation
in FY 2003 (tons)

environment

Example (reduction of waste in NOx sensor production process)
A NOx sensor can measure the NOx level and oxygen level inexhaust gas from diesel-powered vehicles at the same time, andis composed of a sensor body, circuit component and lead wire.
Traditionally, the NGK Spark Plug Group manufactured the sensor
bodies and assembled them with imported circuit components
and lead wires. The circuit parts required secure packaging as
they were precision parts, so the packaging materials generated a
waste problem. Then, we decided to import only the circuit boards
and procure the rest of the parts domestically. Consequently, witha smaller volume of imported parts and less use of cardboard
boxes for packaging, we have succeeded in reducing packaging
waste by as much as 79%.

Waste generation before and after improvement
Before improvement
334 boxes

50 boxes

290 kg

44 kg

2,000 trays

600 trays

340 kg102 kg12,000 units

0 unit120 kg

0 kg

0 box

50 boxes

0 kg

15 kg

Cardboard box

Resin tray

Connector(to be removed at
assembly)NOx sensor

Imported parts
before improvement
Lead wire

Connector
Circuitcomponent

16x8 cm

Imported parts
after improvement
Circuit board

8x4 cmPolystyrene
foam

Waste
generation

After improvement

Reducedby 79%

750 kg

160kg

Water resources
Reduction of the use of tap and well water
Water is precious resource from the earth. While we have controlled the quality of factory effluent from before, a specific target for the
reduction of the use of tap and well water was set for the first time in the environmental action plan formulated in FY2004, as the target
for FY2004/2005. In FY2004, we measured the use of tap and well water and the use of recycled water as baseline data for the effective
use of water, and are taking measures and preparing new ones.

Green purchasing
Purchase of environmentally friendly office supplies
We also promote the active purchasing of environmentally friendly
products (eco-products) in the area of office supplies andcommodities. In March 2004, we published the second edition of
our "Green Procurement Guidelines (In-house use)" to enhance
the awareness of environmental conservation in the workplace.
The guidelines show the criteria for purchasing eco-products and alist of targeted products, and set criteria for respective products. As
for the four NGK Spark Plug factories, the ratio of eco-products tototal purchases reached 90.4% in FY2004, exceeding the target
set for FY2005 (90%). We will continue our efforts while striving toextend the list of targeted products. Our affiliate companies arealso involved in various activities, having set a target ratio of 90%
for FY2005.

Eco-friendly cars

(%)
100

Percentage of eco-products in office supplies(four NGK Spark Plug factories)

80

78

81

2001

2002

90

2003

2004

90

68

60
40

40

20
0

1999

2000

2005 (FY)
Target* We only considered data on the use of office supplies (stationery)from our warehouse previously, but since FY2004 we have also
covered direct purchasing by business departments.

Number of low-emission company vehicles
Category

To reduce the environmental impact of our distribution and sales
activities, we are promoting the replacement of company vehicles
that are due for renewal with eco-friendly cars. In FY2004, we
owned 139 low-emission vehicles that satisfied the "2000 exhaustgas standards" and "2005 exhaust gas standards" under the
Ministry of Land, Infrastructure and Transport's low-emission
vehicle certification system, representing 61% of our entire fleet.

89

Total number of company vehicles

No. of cars
Four NGK Spark Plug factories(including business offices) Affiliates

201

26

New

(75%-decreased level in the exhaust gas standards in 2005)

8

1

New

(50%-decreased level in the exhaust gas standards in 2005)151(75%-decreased level in the exhaust gas standards in 2000)

49

3(50%-decreased level in the exhaust gas standards in 2000)25

3(25%-decreased level in the exhaust gas standards in 2000)

31

3

Exempted from exhaust gas regulations

73

15

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 200522

environment

Hazardous substances/green procurement
Control of hazardous substances
We have established a hazardous material control system to properly control chemicals it uses and prevent environmental pollution.
Based on the "hazard ranking" set according to the information obtained on laws and customer demands, we control the use andrelease of the covered hazardous substances and promote their substitution and reduction.

Customer's
requirements

Regulations

Criteria for handling substances covered by hazard ranking
We classify hazardous substances as prohibited, restricted orcontrolled substances based on our hazard ranking.

Obtaining information
Hazardranking

Substances covered

Handling standard

Information
management

Prohibited
substances

Use is prohibited.

Substances prohibited from use orstrongly restricted by regulations

Hazard ranking

Restricted
substances

A substitution program
shall be proposed and thesubstances switched

Hazard level and toxicity areequivalent to prohibited substances,
but an immediate hangeover is
impossible due to its special
characteristics.

Controlled
substances

Emission into the environment
and transportation upon use
are controlled.

Mainly substances subject to
PRTR Law(in-house standard)Management of
reduction

Control of quantity
consumed

Green supplier system
We request suppliers to apply our "Green Procurement
Guidelines (for Partners and Suppliers)" in order to procure raw
materials and parts with less environmental impact.
To deal with the recent tightening of relevant laws and regulations
and the enhanced significance of chemical control in the industry
related to us, we published a third edition of our "Green
Procurement Guidelines (for Partners and Suppliers)" in October
2004. The third edition sets "system standards", which urge
suppliers to establish an environmental management system, and"material standards", which require them to supply raw materials
and parts free of hazardous substances. Based on thesestandards, we will discuss and cooperate on green procurementwith our suppliers in order to reduce environmental impact.

System standard

Material standard

ISO14001 Certificationby third company.

Prohibited substances as
specified by our company.

CertifiedNot certified

Used

Our company's
standard

OK

UnusedSystem of
MSDS management

NG

OK

NG

Environmental improvementof packing materials

Green supplier
OK

NG

Response to demands for green procurement
In line with tightened regulations on chemicals in Japan and othercountries, our client makers are also making stricter demands ongreen procurement.
We are responding to various demands, such as to submit dataon chemical contents through an IMDS etc., answer client's
questionnaires, submit non-use certificates, and undergo on-site
audits.

23

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 2005

Customer's
requirements

Maker
Response

NGKenvironment

Control of substances subject to PRTR Law
We are promoting the replacement of substances subject to the PRTR Law, with a target of reducing the amounts released into the air
and water by 80% from FY2002 levels by FY2010. In FY2004, our factories reported that they had handled 824 tons and released 174
tons of the 27 substances subject to the PRTR Law. Emissions generated by our four domestic NGK Spark Plug factories totaled 16
tons, an increase of 6% over the previous year in concert with an increase in production.

*Only substances (where one ton or more is handled) covered by each workplace’s report are shown.
Input/output diagram of substances
subject to PRTR Law(kg)
Main activities to reduce the use ofhazardous substances

Air 173,685
Water area for public use
708

Hazardous
substances

Products

Quantity handled

346,907823,526

Disposal by sale

Chlorinatedorganic
solvent

Description of activities
Our fourfactories: Abolished use in
March 2003

Affiliates: Abolished use in
May 2004

16,454

Decomposition reaction
162,925

Internal incineration 7,835
Recycle 91,759
Public sewage 678
Landfill and incineration

Ozonedepleting
substances

The abolishment of the use ofdichloropentafluoropropane (HCFC225) by the end of FY2005 is planned,
and testing for a replacement isunderway.

22,560Quantity of handled substances subject to PRTR Law
Our four factories(tons)(tons)

600

OthersWater-soluble
copper salts (except complex salt)

500
84.6
400

37.0

79.1

51.8

300

47.0
29.1
39.4

26.2
32.4
32.7
38.8

45.9
33.8
38.5

200

149.8

Lead andits compounds

105.0

116.4

Di-n-butylphthalates
150.2

Water-soluble copper salts(except complex salts)

44.1
51.8
57.9
57.0
38.5

Lead andits compounds

700
128.5

600

Nickel500

Toluene

400

153.1

Others800

XyleneWater-soluble
zinc compounds

Group

900

300

47.0
26.2
43.2
55.8
38.8
125.0

163.0

266.9

261.2

2003

2004

XyleneWater-soluble
zinc compounds

NickelToluene

200
100
123.4

127.0

116.0

2002

2003

2004

100

0

0

(FY)

(FY)

Emission of substances subject to PRTR Law
Our four factories(tons)
18
16
14
12

2.4

0.6
1.1

2.0

(tons)
200

Group

Toluene180

0.8

Xylene160

XyleneDichloropenta
fluoropropane

140

Dichloropenta
fluoropropane

Others

0.2
0.7
3.4

3.1
1.7

3.0

100
8

140.5

145.2

80

12.2
10.4

Toluene

120

10

6

Others

10.8

60

4

40

2

20

0
2002

2003

2004

(FY)

0

14.9
10.8

16.2
12.2

2003

2004

(FY)

Chapter 2 Factory/Office
NGK Spark Plug Group ECO report 2005

24

Chapter 3 Products
Eco-design
In order to create a recycling-oriented society, it is important for the NGK Spark Plug Group to reduce the environmental impact of its
products throughout their lifecycle. As most of the group's products are parts, their environmental effect is more difficult to see comparedto that of finished products. Nevertheless, our parts are contributing to the development of products such as eco-friendly vehicles andelectronic devices through the effective use of energy and resources and the purification of exhaust gas. Our main product is our spark
plugs, which hold the world's largest market share of approximately 25%. While our spark plugs promote environmental conservationsuch as energy saving, here we also introduce the latest information about five other products.

Front-end modules
Universal A/F heated exhaustgas oxygen sensors

NHTC glow plugs

Ceramic cutting tools

Oxygen concentrators for medical use

25

Chapter 3 Products
NGK Spark Plug Group ECO report 2005

environment

Front-end modules
Eco-product contributing to reduction in size
and weight of mobile phones
A front-end module is a component installed in mobile phones,
and performs mainly the following functions:

Our newly developed front-end modules are the world's smallest(5.4 x 4.0 mm) such modules, each having a three-frequency
SAW filter built in. This downsizing has resulted in more effective
use of raw materials in the production process, and a reduction inuse of approximately 10%. In addition, we use lead-free solder
and parts to completely comply with the EU's RoHS Directive.

the frequencies of radio waves received
1. Separatingby an antenna;

World'ssmallest

2. Switching transmission and reception;
3. Cutting the noise of power amplifiers;
4. Building in a receiver bandpass filter

Down
sizing

LTCC front-end module

LTCC front-end module

Triple band with
two SAW filters 6.5 x 5.0 mm

Triple band withthree SAW filters5.4 x 4.0 mm(working as a SAW filter).

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

FEM
SAW

LNA

SAW

LNA

SwitchANT

Balun

Coupler

PA part
APC

VCO

PLL

VCO

Baseband

Balun

Diplexer

The size was large because each of theparts (resistance, inductor, condenser
and diode) was mounted on a printed
circuit board to make up the switch.

Mixer part
Balun

LPF

Coupler

PA Balun

LPF

Coupler

PA Balun

Modulator

Mixer

LTCC front-end module
With LTCC multilayer technology, thearea is reduced to one half or one third.
Low losses and high attenuation are
also achieved.

LNA

SAW

Conventional front-end moduleDemodulator

FilterMixer

Appearance of FEM
Triple band with two SAW filters

SwitchAPC

ASM

NHTC glow plugs

Diesel-powered vehicles use glow plugs as parts to assist engine
start-up. We manufacture metal-type glow plugs and ceramic-type
glow plugs. Mainly in Europe, the demand for diesel-powered
vehicles is growing as they are clean and have a high thermal
efficiency. With the recent tightening of environmental regulations,glow plugs have also attracted more attention as parts that
contribute to the reduction of exhaust gas emissions and theimprovement of starting ability. To meet such demand, we areadvancing the development of glow plugs to comply with newtechnologies.

1. Resources are effectively used due to the reduction insize and weight.
2. Shorter starting time improves fuel efficiency.
3. Low exhaust gas concentration and simplified treatment
after the use of a catalyst mean that resources are more
effectively used.
4. Maintenance is unnecessary, so no parts have to be
replaced.

FeaturesEco-product to reduce exhaust gas
from diesel-powered vehicles

Example of exhaust gas reduction
We have confirmed in engine-starting tests under a low-temperatureenvironment (-20;) that hydrocarbon (HC) and flue gas concentration
can be lowered.
Total hydrocarbon (THC)
concentration(New High Temperature Ceramic)

To achieve higher temperaturesin heaters and also extend theirlifespan, we have developed
NHTC glow plugs that adopt
silicon nitride fine ceramics in
the heater part.

Flue gas concentration
100

NHTC
Other
companies
products

4000

Flue gas concentration (%)

NHTC glow plugs

THC concentration (ppmC)

5000

3000
2000
1000
0

NHTC
Other
companies'
products

80
60
40
20
0

0

10

20

30

40

50

Length of time from cranking (second)

0

10

20

30

40

50

Length of time from cranking (second)

Chapter 3 Products
NGK Spark Plug Group ECO report 200526

environment

Universal A/F heated exhaust gas oxygen sensors
Eco-product working forcleaner exhaust gas
Fuelconsumption- Improved fuel efficiency- Low emissions

Fuel consumption
reducedby 10 to 15%

Increase ofrotational
fluctuations

NOx

NOx

(lean-burn engine)

Rotational
fluctuations of engine

Vehicles are installed with various sensors to control thetemperature, combustion and emission accurately in real time forsafe and comfortable driving. Among these sensors, universal A/F
heated exhaust gas oxygen sensors are for the control ofemissions. A universal A/F heated exhaust gas oxygen sensor
detects the air/fuel ratio in an engine based on the oxygen leveland unburned gas level in the exhaust gas. The sensor measures
the whole range of air/fuel ratio and communicates the result tothe in-vehicle computer. This enables the precise control of thetheoretical air/fuel ratio and the control of lean combustion, which
contributes to the realization of cleaner exhaust gas and higher
fuel efficiency. In addition to standard gasoline engines, thesesensors can also be applied to gasoline direct injection enginesand diesel engines.

Lean combustion
control

Increase of
NOx

10
Rich

15
=1
(A/F=14.7)

20-1 control

Flameout

25
Lean

A/F

What is the air/fuel (A/F) ratio?
This is the ratio of air and fuel injected into an engine. Although the theoretical A/F ratio
is usually said to be 14.7:1, the actual ratio constantly fluctuates depending on thevehicle driving conditions and the environment of use of the engine.

Universal A/F heatedexhaust gas oxygen sensor

ASIC
This is an interface circuit between auniversal A/F heated exhaust gas oxygen
sensor and a computer, and outputs the
air/fuel ratio signal of exhaust gas. In
combination with ASIC, the universal A/F
heated exhaust gas oxygen sensor canfurther improve performance.

Ceramic cutting tools
Eco-products that require no coolant

Hardness of different tool materials at high temperature
Vickers hardness (GPa)22

In metal cutting, the tools become more susceptible to wear
because their temperature rises with frictional heat. To prevent
such a rise in temperature, coolant (cooling water with alubricating effect) is applied to the tools.
However, it has been found that the energy for using such a
coolant accounts for more than half of the energy required for
operating the machine tool. The result has been an increasing
tendency to stop using coolant and a growing demand for moreheat resistant tools. Ever since the development of the high-speed
drill in 1898, many materials have been developed. Ceramic tools
have mainly been used as environmentally friendly cutting tools
because they have a particularly high temperature limit and allow
dry cutting without a coolant.

Cemented carbide

20

Alumina (black)18

Alumina (white)

16

Silicon nitride

14
12
10
8
6
4
0
200

400

600

800

1000

1200

Temperature(:)

Energy saving
No energy required for using
coolant.

Waste reduction
No waste coolant is generated.

Ceramic series (alumina ceramic)

27

Chapter 3 Products
NGK Spark Plug Group ECO report 2005

Ceramic series (silicon nitride ceramic)

environment

Oxygen concentrators for medical use
Energy saving design

Eco-product featuring
energy saving design
This product stably generates highly concentrated oxygen andsupplies it to patients of chronic respiratory diseases receiving
domiciliary oxygen therapy. Of course the product needs to bereliable as a medical device, but because it is used in the home, it
is also important that it does not make the patients and theirfamily members feel uncomfortable. To this end, Nittoku has been
engaged for many years in creating an energy saving design andreduction in size and weight, and in February 2005, developed
this new type of oxygen concentrator featuring a further improved
eco-design. This device uses our ceramic oxygen sensor.

To reduce power consumption, thisnew product adopts a compressor
with higher efficiency than existing
devices. In addition, with the inverter
control of the compressor, it uses
minimum electricity by operating
according to the flow demanded by
the patient.

Reduction in size andweightTo fit in the patient’s living space, wehave succeeded in reducing the size
by approximately 27% and weight byapproximately 20% in comparison
with existing products.

Low noise
The noise during operation has been
reduced not to interfere withconversation or TV sound.

New-type oxygen concentrator

Old-type oxygen concentrator

1L/min.: 50W
2L/min.: 70W
3L/min.: 100W
* Inverter control

150W/170W(50/60Hz)
36x41x63cm

Energy saving design

Power consumption

Reduction insize and weightSize

32x35x61cm

Weight25kg

31kg

Low noise

Operation noise in an anechoic room

29 dB (A) or less

30 dB (A) or less

Column

LCA of spark plugs

At Ecoproducts 2004 held in December of that year, we put on an exhibition of the “LCA of spark plugs” in the booth of the Japan Environmental Management
Association for Industry introducing examples of the application of LCA.

NGK Spark Plug Co., Ltd.

Example of
LCA application

Purpose
We conducted an LCA of our leading products, NGK spark plugs (standard type and lightweight type) and NGK platinum plugs (lightweight andlong-lived type), in order to measure the impact per plug on the environment and to specify any factors that make the impact more significant.

Longevity of plug
Spark plug (standard and lightweight): 20,000 km
Platinum plug (long life): 100,000 km

Landfill

Use

Transportation

Products
manufacturingParts
manufacturing

Material
manufacturing

Resourcecollection

Fuel efficiency of plugs <10-15 mode fuel efficiency>
Standard typeLight typeLightweight andlong-life type(platinum plugs)

Spark plug (standard and lightweight): 14.77 km/L
Platinum plug (long life): 15.01 km/L

ResultRange ofevaluation

Measured influences on environment. Consumption of resources . Destruction of ozonosphere . Solid waste. Global warming. Acidification

As a result of the analysis, we were able to find the significance andcause of the environmental load due to the five kinds of impact on the environment. The following are the influences on global warming.
Looking at the influence on global warming per plug, CO2 conversion was 240g instandard plugs, 210g in lightweight plugs, and 226g in platinum plugs. This reveals
that lightweight plugs have a 13% smaller load in comparison with the standard
plugs.
An LCA was executed in consideration of the longevity of the plug. Assuming operation for 100,000 km, for which one platinum plug is required, five spark plugs are required which makes the environmental load fivefold. This reveals that platinum plugs
have the least influence on global warming when the longevity of the plug is taken
into consideration.

Standard
type
Light type
PlatinumStandard
type
Light type
Platinum

Additional survey

One plug

100,000km
operation

Assuming that the fuel cost of the platinum plug is 2% better, we executed an LCA including use within the scope of the evaluation.
Because the use of fossil fuels has a large impact on global warming,
we found that platinum plugs have a lower impact on global warming
since they use less gasoline.
Contact for inquiries : Environment & Safety Management Dept., NGK Spark Plug Co., Ltd.
Contact person: Nakamura and Mizuno

TelWebsite: +81 52-872-5980: http://www.ngkntk.co.jp

E-mail : eco@mg.ngkntk.co.jp

Chapter 3 Products
NGK Spark Plug Group ECO report 2005

28

Chapter 4 Communication
Disclosure

Community

Publication of “ECO report”

Environmental exhibition

To obtain our stakeholder’s understanding of our environmental
conservation activities, we have published “ECO report” since2000 and “site reports” since 2003.
“ECO report 2004” included a description of the efforts made by
11 domestic affiliates. Five domestic affiliates are newly publishing
their own site reports, bringing the total to 13 of our businesslocations (our four factories and nine affiliates). We will continue
this voluntary information disclosure.

To acquaint the public with ourenvironmental conservation
activities, we give presentations
at environmental events.

In October 2004, we exhibited ourenvironmentally friendly products at the
Nagoya City Environmental Study Center(Ecopal Nagoya).

Cleaning activity in the local community
Head Office/Factory
Sep. 2004 (36 people)
Nov. 2004 (26 people)
Feb. 2005 (46 people)
Mar. 2005 (40 people)

Komaki Factory
Sep. 2004 (45 people)
Mar. 2005 (45 people)

Miyanojo Factory
Jul. 2004 (105 people)
Dec. 2004 (7 people)

Ise Factory
Jul. 2004 (37 people)
Aug. 2004 (34 people)

Head Office/Factory

Iijima CeramicMay. 2004 (24 people)
Aug. 2004 (16 people)
Dec. 2004 (17 people)

Nakatsugawa Ceramic
Sep. 2004 (10 people)
Mar. 2005 (13 people)

Kani Ceramic
Jun. 2004 (16 people)
Nov. 2004 (14 people)
Feb. 2005 (22 people)

Nansei Ceramic
Jun. 2004 (14 people)
Sep. 2004 (18 people)
Dec. 2004 (14 people)
Mar. 2005 (15 people)

Kamioka CeramicMay. 2004 (25 people)
Oct. 2004 (26 people)

Nittoku Seisakusho
Jun. 2004 (16 people)
Sep. 2004 (17 people)
Dec. 2004 (22 people)
Mar. 2005 (25 people)

Nichiwa Kiki
Sep. 2004 (20 people)
Mar. 2005 (22 people)

Ceramic Sensor
Sep. 2004 (11 people)

Circulation of ECO report 2004
Japanese version

4,000 issues

English version

2,000 issues

Accepting visitors at
environmental factories
Because we want to obtain people’s understanding of ourenvironmental conservation activities, we are promoting visits at
our environmental factories. In particular, we are encouraging
local residents to witness our environmental measures inside andoutside our business sites and answering their questions, so thatthey can feel more at ease in their lives. For the promotion ofinter-company communications, we are also participating in ReSTEP*, which started in June 2004. By widely accepting visitors
to our factories, we will revitalize environmental activities together
with other local corporations.

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

Tono CeramicMay. 2004 (8 people)
Jun. 2004 (23 people)
Jul. 2004 (11 people)

Oct. 2004 (20 people)
Jan. 2005 (13 people)
Feb. 2005 (13 people)

Ise Factory

Natural environment
Greening of factories

Plant tour

http://restep.zttc.or.jp

29

Number of visits
Local residents, schools andlocal governments

10Companies and organizations

4

Chapter 4 Communication
NGK Spark Plug Group ECO report 2005

Miyanojo Factory stands on asite surrounded by greenery,
and there are also naturalforests and grounds within itssite. The factory is continuously
involved in efforts to care forthis rich nature, including
weeding, pruning and planting,and in 2003 it won the Director
of
KyushuBureauof
Economy’s Excellent Greening
Factory Award.

Entrance of Miyanojo FactoryChapter 5 Mind-set
Education and enlightenment
Safety/health and environmental convention
We have organized an environmental convention every year since 2001
for the purpose of making our all employees deeply aware of ourenvironmental activities and challenges. In the fourth convention held in
FY2004, we added the new theme of “occupational safety and health”
and changed the title to “Safety/health and environmental convention”. To
enable the attendance of as many employees as possible, in addition to
the main convention primarily composed of lectures, we also organizedsessions in different factories and affiliates featuring examples ofimprovement as the central theme.
Other events involving all employees included an anonymousquestionnaire survey to identify their experiences of safety, health andenvironmental risks. This enabled us to see the real picture that is often
hidden, such as the level of our employee’s awareness of such risks, andwhether they had had experiences where an accident almost occurred.

Encouraging the acquisition of
official qualifications

Numbers of officially qualified employees
Our fourfactories

Affiliates

Air

31(6)

2(0)

Water

54(6)

13(2)

Noise

39(6)

2(0)

Vibration

25(6)

2(0)

Heat

17(2)

1(0)

Electricity

18(4)

9(3)

25(3)

13(9)

Environment measurement engineer

1(0)

0(0)

Work environment
measurement engineer

11(0)

2(0)

Energy manager
Specially controlled industrial
waste manager

Site convention(Head Office)Environment card

To ensure the compliance with environmental conservation-related laws,
regulations and agreements, and with voluntary standards under thecompany’s environment policy, we develop, train and nurture employees
to gain expertise and official qualifications according to the needs
identified for each operation site.

Pollution control manager

Main convention* Total number of persons. Figures in parentheses indicate the number required by law.

We distribute an environment
card to every of our employee
so that they understand andare aware of our environment
policy. The employees write the“organization’s objectives andgoals” and “my individual efforts”
on the environment cards to be
more aware of environmental
conservation in their everyday
activities.

Proposals for improvement
We have a proposal system in which employees can make aproposal for innovation and improvement in processes andoperations. In FY2004, there were 36,944 proposals, many ofwhich were ideas on environmental issues such as energy saving
and waste reduction. Every employee is contributing toenvironmental conservation through the steady improvement of
his or her daily jobs.

Safety/health and environmental news

Employee magazine "Nittoku"

To educate and enlighten our employees, we issue “Nittoku
Environmental News” periodically to provide information on our
ISO14001-based activities and environment preservation
activities and challenges as well as various related events. In
FY2004, we changed the title to “Health, Safety andEnvironmental News” in which we began to issue news on
smoking risks and safety signs.

We have pages dedicated to the environment in our monthly
employee magazine “Nittoku”. The magazine deals withenvironment-related events and topics both in Japan andoverseas, and the impact of environment-related regulations on
our activities, etc., in order to help raise our employee’s
environmental awareness.

Chapter 5 Mind-set
NGK Spark Plug Group ECO report 2005

30

Chapter 6 Data section
PRTR
Head Office/Factory

Komaki Factory

Miyanojo Factory

Ise Factory

Iijima Ceramic

Nakatsugawa Ceramic

Kani Ceramic
Nansei Ceramic
Nittoku Seisakusho
Ceramic Sensor(kg)
Substance name

Quantity
handledOrdinanceNo.

(substance to be reported)

1
40
63
68
108
144
227
231
299
1
25

Water-soluble zinc compounds
Ethyl benzene
XyleneChromium and trivalent chromium compounds
Inorganic cyanogens compounds (except complex salts and cyanate)
HCFC-225ca
TolueneNickelBenzene (for fuel)
Water-soluble zinc compounds
Antimony and its compounds

30

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

5,548

40
63
68
85
100
108
144
207
227
230
231
232
299
304
309
310
311
346
1
68
108
144
231
304

Ethyl benzene
XyleneChromium and trivalent chromium compounds
HCFC-22
Cobalt and its compounds
Inorganic cyanogens compounds (except complex salts and cyanate)
HCFC-225ca
Water-soluble copper salts (except complex salts)
TolueneLead and its compounds
NickelNickel compounds
Benzene (for fuel)Boron and its compounds
Poly (oxyethylene) nonylphenolether
Formaldehyde
Manganese and its compounds
Molybdenum and its compounds
Water-soluble zinc compounds
Chromium and trivalent chromium compounds
Inorganic cyanogens compounds (except complex salts and cyanate)
HCFC-225ca
NickelBoron and its compounds

2,376
17,555
1,449
1,027
2,980
7,731
2,034
51,79911,754
3,074
1,408
11,952
1,115
12,577
1,888
5,845
5,794
1,771
26,001
1,631
2,622
7,000
114,7073,017

30

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

43
63
230
243
310
311
63
68
108
230
231
232
270
346
63
64
68
227
230
270
346
270
230
231
253
283
304

Ethylene glycol
XyleneLead and its compounds
Barium and its water-soluble compounds
Formaldehyde
Manganese and its compounds
XyleneChromium and trivalent chromium compounds
Inorganic cyanogens compounds (except complex salts and cyanate)
Lead and its compounds
NickelNickel compounds
Di-n-buthylphthalates
Molybdenum and its compounds
XyleneSilver
Chromic oxide compounds
TolueneLead and its compounds
Di-n-buthylphthalates(DBP)
Molybdenum and its compounds
Di-n-buthylphthalates
Plumbous
NickelHydrazine
Hydrogenfluoride and its water-soluble compounds
Boron and its compounds

7,140
1,211
13,835
3,082
1,115
3,125
104,245
37,023
4,882
5,331
2,027

Volume ofmaterial transferred
PublicWaste
sewerage

Release quantity
Publicwater area

Air

Soil

Recycledmass

Removal/disposalquantity

Discharged
mass
5,128

1,485

527
17

0
0

139
12

1,211
13,818
2,486

458
1,103

3,125
285

103,960
36,798

224
13

4,870
10
2

5,218
1,617

103
408

5,279

269
106
1,628

2,279
127
8

523
4,511
453
1,027
231
92

1,746
9,136
868

2,508

2,034
19

1

435
1
0

98
4
5

18

960
27
372
110
3,124

4
2
1

56

18

149
12

1

0

1,525
1,868
5,787
5,596
123
3,768
1,551
52

50,81911,291

0
1,110
1
19
58

Volume of emissions (tons)

31

901.0
11,619.9
3,056.8
1,552.0
1,144.5
340.5
114.9
47.5
94.4
220.8
6.6
14.7
785.3
19,898.9

Chapter 6 Data sectionNGK Spark Plug Group ECO report 2005

2,603
1,293
8,807
10,992

31
1,635
22,233
80
2,570

7,000
106

114,707
2,909

2,270

2,042

227

1,632
2,447
42,836
3,672
1,980
1,602
11,085
2,117
9,192
5,945
2,158
1,097
9,011
4,189
12,064
1,585
9,419
145,161
3,695
30,975
3,488
4,081
2,370
7,665
8,962
2,450
1,746

1,632
673
10,858
996
1,980
1,378
2,880

1,775

8,205

31,971
2,676
0

1,430
1

3,054
631

4,180
1,593
4,533

1,097
1,426

4,805

3,010

6,878
617
1,973

194
446

0

Volume effectively used (tons)
894.6
11,563.3
3,038.0
1,544.9
1,002.1
118.9
54.0
47.0
92.2
219.2
5.9
8.4
775.6
19,364.3

687
1,331
5,314
2,158

2,596
42
1,585
6,377

7,489

144,523

223

3,405

32
638
1,686
5,834
495
426
2,368

7,807

7,621
2,256

1,341
0

2,009
10,456
2,376
1,683
2
7,665

1,297

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

2,741
5,130

Volume of landfill and incineration (tons)
6.4
56.6
18.8
7.1
142.4
221.6
60.8
0.5
2.2
1.5
0.7
6.3
9.7
534.6

Recovery rate (%)
99.3
99.5
99.4
99.5
87.6
34.9
47.0
98.9
97.6
99.3
89.5
57.4
98.8
1,108.7

environment
Air, water and noise
Item
Head Office/
FactoryType
Dust

Atmosphere
NOx

Drain
(drainage)

Noise

Komaki
Factory

Dust
NOx

Integrated
drain

Noise

Miyanojo
Factory

Atmosphere

Drain(public water area)

Noise

Ise Factory

Atmosphere

Drain(public water area)

Noise

Furnace (PR-2)
Boiler (No. 12
Furnace (PR-2)

pH
SS
BOD
n-Hexane extract
Cyan
Total chromium
Hexavalent chromium
Zinc
Lead
NitrogenPhosphorus
Fluorine
Boron
R spotMorning
T spotR spotDaytimeT spotR spotEvening
T spotR spotNight
T spotAtmosphere(public water area)

Boiler (No. 12)

Boiler (No. 1 - 5)
Furnace (No. 9 - 10)
Boiler (No. 1 - 5)
Furnace (No. 9 - 10)

pH
SS
BOD
COD
n-Hexane extract
Cyan
Total chromium
Hexavalent chromium
CopperZinc
Lead
NitrogenPhosphorus
NickelManganese
Boron
Fluorine
Morning
Fifth spot
DaytimeFifth spot
Evening
Fifth spot
Night
Fifth spot
Cooling and heating machine
Dust
Generating machine (No. 2)
Cooling and heating machine
NOx
Generating machine (No. 2)
Generating machine (No. 2)
SOx
pH
SS
BOD
COD
n-Hexane extract
Cyan
Hexavalent chromium
CopperZinc
Lead
Fluorine
Boron
E. coli
Morning
Daytime
EveningNight
Furnace
Dust
Furnace
NOx
pH
SS
BOD
COD
n-Hexane extract
Cyan
Total chromium
Hexavalent chromium
CopperZinc
Lead
NitrogenPhosphorus
Manganese
Fluorine
Boron
E. coli
Morning
Daytime
Evening
Night

Unit
mg/Nm3
mg/Nm3
ppm
ppm
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
dB
dB
dB
dB
dB
dB
dB
dB
mg/Nm3
mg/Nm3
ppm
ppm
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
dB
dB
dB
dB
mg/Nm3
mg/Nm3
ppm
ppm
Nm3/h
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
counts/cm3
dB
dB
dB
dB
mg/Nm3
ppm
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
counts/cm3
dB
dB
dB
dB

Statutory Voluntary
regulation regulation
value
value

50
150
150
180
5.0~9.0
600
600
30
1
2
0.5
5
0.1
120
16
8
10
70
65
70
65
70
65
65
55
200
200
250
200
6.0~8.0
30
25
25
5
0.5
1
0.2
1
3
0.1
120
16
8
10
65
70
65
60
300
100
180
950
3.9
6.0~8.0
35
20
160
5
1
0.5
3
3
0.1
8
10
3000
60
65
60
50
250
180
5.8~8.6
90
25
25
5
1
2
0.5
1
5
0.1
120
16
8
10
3000
55
60
55
50

40
120
120
144
5.7~8.6
480
480
24
0.8
1.6
0.4
4
0.08
96
12.8
6.4
8
68
63
68
63
68
63
64
54
160
160
200
160
6.2~7.8
24
20
4
0.4
0.8
0.16
0.8
2.4
0.08
60
4
6.4
8
63
68
63
58
240
80
144
900
3.0
6.5~7.8
28
16
128
4
0.8
0.4
2.4
2.4
0.08
6.4
8
2400
55
60
55
50
100
140
6.0~8.4
24
8
12
2.5
0.5
1
0.25
0.5
2.5
0.05
60
8
4
5
1500
55
58
55
50

Average

MAX

<2

<2

6
58
29
7.1
19
14
4.4
0.16
0.04
< 0.041.4< 0.02
16
0.39
0.08
<1
61.0
*1 65.3
60.9*1 67.7
60.1*1 68.2
51.8*1 68.7
<2
6
28
125
7.3
3.1
4.6
3.7
0.04
0.008
< 0.04< 0.04
0.02
0.12
0.006
6.3
0.36
0.17
0.04
0.5
0.25
60.4
63.0
63.7
1
* 60.6
7
8
73
705
0.14
7.5
4.8
2.6
15
< 2.5
< 0.05< 0.05< 0.05< 0.05< 0.01
< 0.2
1.4
0
47.0
48.8
48.3
47.3
<5
36
7.3
1.1
1.7
1.2
<1
< 0.1
< 0.04< 0.04< 0.02< 0.005
0.007
2.3
2.4
< 0.02
< 0.1
0.52
0
49.8
51.3
49.8
49.5

6
58
30
7.4
46
75
12
0.20
0.11
< 0.042.9< 0.02
22
0.66
0.3
<1
61.0
*1 65.3
60.9*1 67.7
60.1*1 68.2
51.8*1 68.7
<2
9
34
170
7.6
6.0
9.4
5.6
0.50
0.100
< 0.04< 0.04
0.05
0.28
0.04
8.9
0.57
0.30
0.20
0.7
2.0
60.4
63.0
63.7
*1 60.6
7
8
73
740
0.16
7.7
9
8
16
< 2.5
< 0.05< 0.05< 0.050.07< 0.01
< 0.2
2.8
0
52.0
52.0
49.0
49.0
<5
48
7.5
2.0
9.0
2.0
<1
< 0.1
< 0.04< 0.04< 0.02< 0.005
0.010
12
6.3
< 0.02
< 0.1
0.98
0
49.8
51.3
49.8
49.5

Due to background noise. Background noise means the noise when machines and other equipment*1 arenot in operation, and so refers to outside traffic, neighboring factories, and so on.
*2 For the violation code, see p.15 “Compliance”.

Item
IijimaCeramic

Type
Dust

Atmosphere
NOx

Steam boiler (No. 1)
Cooling and heating machine
Steam boiler (No. 1)
Cooling and heating machine

pH
SS
BOD
n-Hexane extract
Cyan
Drain
Total chromium(drainage)
Hexavalent chromium
CopperZinc
Lead
Phosphorus
E. coli
MorningFirst spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot
Dust
Furnace (NN-1)
Nakatsugawa Atmosphere
NOx
Furnace (NN-1)
Ceramic
pH
SS
BOD
COD
Drain
(public water area) n-Hexane extract
NitrogenPhosphorus
E. coli
Morning
DaytimeNoise
EveningNight
Dust
BoilerKani
Atmosphere
NOx
BoilerCeramic
pHSS
Drain(public water area) BOD
COD
n-Hexane extract
First spot
MorningFirst spot
Daytime
NoiseFirst spot
EveningFirst spot
Night
pH
NanseiSS
Ceramic
BOD
Integrated COD
n-Hexane extractdrain(public water area) Lead
NitrogenPhosphorus
E. coliNorth
Morning
North
DaytimeNoise
North
Evening
North
Night
pH
KamiokaSS
Ceramic
Drain
BOD(public water area)
COD
n-Hexane extract
Fourth spot
Morning
Fourth spot
Daytime
Noise
Fourth spot
Evening
Fourth spot
Night
pH
NittokuSS
Drain
Seisakusho(Head Office/Factory) (public water area) BOD
n-Hexane extract
Morning
Noise
Daytime
EveningpH
NittokuSS
Seisakusho(Oguchi Factory)
BOD
Drain
(public water area)n-Hexane extractNitrogen
NitrogenPhosphorus
Morning
DaytimeNoise
Evening
Night
pH
Drain
Nichiwa Kiki
(drainage)
n-Hexane extract
DaytimeNoise
Dust
FurnaceTono Ceramic Atmosphere
NOx
FurnacepHSS
Drain(public water area) BOD
n-Hexane extract
Morning
DaytimeNoise
EveningNight
Dust
BoilerCeramic
Atmosphere
NOx
BoilerSensor
pH
SS
BOD
COD
Drain
(public water area) n-Hexane extract
NitrogenPhosphorus
Fluorine
Boron
Daytime
Noise
Night

Unit

Statutory Voluntary
regulation regulation
value
value

100
mg/Nm3100
mg/Nm3
150
ppm
150
ppm
5.8~8.6
mg/L
50
mg/L
30
mg/L
5
mg/L
0.5
mg/L
1
mg/L
0.3
mg/L
2
mg/L
3
mg/L
0.1
mg/L
16
3000
counts/cm3
dB
dB
dB
dB
50
mg/Nm3ppm
5.8~8.6
50
mg/L
15
mg/L
40
mg/L
5
mg/L
10
mg/L
mg/L
3
3000
counts/cm3
60
dB
65
dB
60
dB
50
dB
100
mg/Nm3150
ppm
5.8~8.6
200
mg/L
160
mg/L
160
mg/L
5
mg/L
50
dB
dB
60
dB
50
dB
45
5.8~8.6
mg/L
200
mg/L
20
mg/L
160
mg/L
5
mg/L
0.1
mg/L
120
mg/L
16
counts/cm3
3000
dB
55
dB
60
dB
55
dB
50
5.8~8.6
mg/L
200
mg/L
160
mg/L
160
mg/L
5
dB
60
dB
65
dB
60
dB
50
5.0 or more
mg/L
600
mg/L
600
mg/L
50
dB
60
dB
65
dB
60
5.8~8.6
mg/L
30
mg/L
25
mg/L
5
mg/L
120
mg/L
16
dB
55
dB
60
dB
55
dB
50
5 or more
mg/L
50
dB
65
mg/Nm3
200
400
ppm
mg/L
mg/L
mg/L
dB
50
dB
60
dB
50
dB
45
mg/Nm3100
ppm
150
6.0~8.0
18
mg/L
mg/L
18
mg/L
18
mg/L
2
mg/L
30
mg/L
4
mg/L
8
mg/L
10
dB
70
dB
60

100
100
150
150
6.0~8.0
10
25
5
0.3
1
0.3
2
3
0.1
16
3000
65
65
65
55
40
6.2~8.2
35
13
30
4
10
2.5
1000
58
63
58
50
90
135
5.9~8.5
180
144
30
4.5
50
60
50
45
5.8~8.6
90
20
40
5
0.1
100
16
1000
55
60
55
50
6.2~8.2
50
40
40
2.5
60
65
60
50
5.8~9.0
300
300
25
60
65
60
6.0~8.4
30
20
4
60
8
55
60
55
50
6~8
20
63
200
400
5.8~8.6
200
160
5
50
60
50
45
100
150
6.0~8.0
14.4
14.4
14.4
1.6
24
3.2
8
10
70
60

Average

MAX

5
5
59
30
7.3
2.7
3.7
<1
< 0.01< 0.02< 0.02
0.025
0.055
0.006
1.2
3
50.0
61.0
50.0
48.0
6
120
7.6
4.4
5.7
6.1
0.5
4.9
0.35
45
52.5
52.5
53.5
50.0
6
96
6.8
4.4
30
11
1
*2 52.1
51.4*2 51.5*2 50.2
7.4
4
3.7
8.7
<1
0.01
10.6
1.8
40
54.5
58.3
53.1
49.5
7.7
2.9
6.2
7.7
<0.5
50.0
53.7
53.7
*2 51.1
7.1
12
49
0.6
58.6
59.5
57.0
7.3
2.7
1.4
1
0.6
0.01
48.3
54.0
50.3
45.7
6.9
2
59.4
22
42
8.0
160
140
0.5
49.0
58.0
49.0
44.0
8
81
7.1
4.8
5.8
13.6
1.0
15
1.0
4.1
2.0
60.2
58.5

5
5
59
30
7.4
4.0
7.3
<1
< 0.01< 0.02< 0.02
0.04
0.07
0.008
1.5
10
50.0
61.0
50.0
48.0
12
120
8.2
20
7.5
8.7
0.5
7.1
0.55
150
53.0
53.0
54.0
50.0
6
96
6.8
4.4
30
11
1
*2 55.1
53.1*2 54.6*2 51.9
7.7
7
7
17
<1
0.02
19
3.7
120
54.5
58.3
53.1
49.5
7.8
3.8
11
12
<0.5
52.0
54.0
54.0
*2 54.0
7.3
18
49
0.6
58.6
59.5
57.0
7.6
6
3.3
1
0.6
0.01
53.0
58.0
54.0
47.0
6.9
2
62.6
22
42
8.0
160
140
0.5
49.0
59.0
49.0
44.0
10
88
7.3
10
17
*2 30
1.0
17
3.0
2
11
*
2.8
61.8
59.7

Chapter 6 Data sectionNGK Spark Plug Group ECO report 200532

society

Here we report on the social aspects of
the activities of our NGK Spark Plug factories.

Employment and personnel management system
Equal opportunities

Support to capacity development

We are working to eliminate discrimination by race, sex, belief,handicap, etc. from our recruiting process and workplaces toensure equality of opportunities. We have increased the choices
for motivated employees by establishing a job switching system
and installed security equipment to expand the job categories for
women and arrange a system where they can work midnight
shifts.

Even with the advance of office automation and increased
production by use of automatic equipment and robots, thebackbone of a company is its employees. We provide educationfor employees to obtain knowledge and techniques, starting withnew employee training, according to the ranks and functions of
employees and in consideration of the job description andbusiness environment. We also offer continuing education.

Male-female ratio

Percentage ofhandicapped employees

Female
16%

(%)
2.0

1.79

1.70

1.69

1.81

1.71

Department
manager

1.5

Sectionmanager

0.5(FY2004)

2002

2003

2004

No. of employees taking nursing leave

30
20
10
0
1995

New employee introductory training

After mandatory retirement

No. of employees taking childcare leave

40

In-house language school

No. of persons
50

Product learning
training for sales staff

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

GeneralBasictechniques techniques

Short-time work scheme

Special qualification training

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

Generaltraining

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

Special leave scheme

Follow-up
training

To the age of 1 year

Childcare leaveextension scheme

3 to 7 Less than New
years 3 years employee

Childcare leave scheme

General staff

Schemes to support childcare

LeaderSafetyeducation training

10 to 15
years

Supporting simultaneous pursuits
We are striving to establish a work environment that allows thesimultaneous pursuit of job and childcare or job and nursing care.

New section
chief
training

Sectionchief

Supervisor Leader
Technical training

Deputysectionmanager

TQM education

FY

Distant learning scheme

2001

In-house OA school

2000

New
executive
training

0.0(as of April 2005)

Happy Life Seminar

New employees

Intellectual property education

Permanent
employees

Assistantmanager

1.0

Continuing
education

Professional
education

Sales Globalization

International project personnel cultivation scheme

Male
72%

Education according to function
Techniques andtechnologies

Evaluation
training

Male
84%

Management
simulation training

Female28%

Educationaccording to
rank

1996

1997

1998

1999

2000

2001

2002

2003

2004
(FY)

Ms. Kiyomi Ikeo,
Quality Control Office, Semiconductor Parts Dept.
I have used the childcare leave scheme twice. During each period ofleave, I performed childcare and housekeeping with the cooperationof my family, and then returned to the office one year later. Although I
felt anxious about returning, I have enjoyed office life while talking
about concerns with my kids and just chatting with my colleagues,
which releases some stress. It is tough to pursue work, childcare andhousekeeping at the same time. Nevertheless, two years after myreturn, I can now relax thanks to the cooperation of my family andcolleagues. I hope more people use the scheme to live a fuller life.

Re-employment system for
ex-employees who retired at retirement age
In view of the possible upward revision of Japan’s welfare pension
system’s qualifying age, there is a growing demand to provide
employment opportunities after mandatory retirement. We
introduced a system of re-employing ex-employees who retired
because they had reached retirement age after April 2001, inorder to effectively utilize the knowledge, skills and experiencecultivated by employees during their careers.
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 their second
life as well as their health and finances.
No. of persons

FY2004Total

Re-employed ex-employees

28

137

Participants in the Happy Life Seminar*

65

880

*Excluding spouses

Management of work hours
To ensure proper management of work hours and prevention ofexcessive work and unpaid overtime, we introduced a work hour
management system using IC cards in October 2004. We are also
developing enlightenment activities to make employees suitably
aware of work hours by distributing our “Work Hour Management
Handbook” to all employees.

33

Employment and personnel management system
NGK Spark Plug Group ECO report 2005

society

Occupational safety and healthOccupational safety and health policies
In April 2005, we formulated our philosophy and policy on
occupational safety and health in order to promote theestablishment of an occupational safety and healthmanagement system.

Safety and hygiene
management organization
Members

Committee meeting•Central safety hygiene
committee chairman (executive director)

Central safety and hygiene
committee meeting (twice a year)• Vice chairman (heads of factories)• Vice chairman (chairman of labor union)

Philosophy• Committee members (representatives of factories)

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

Occupational safety and health policy• We will comply with the law and our voluntary standards related tooccupational safety and health.
• We will reduce risks and eliminate occupational accidents throughthe continual improvement of our occupational safety and healthsystem and performance.
• We will acquaint all employees with this policy, encourage selfawareness through education and enlightenment, and broadly
develop occupational safety and health activities across theorganization.

• Factory administrator to supervise
the safety and hygiene (heads of factories)• Factory safety hygiene
committee chairman (head of factory)• Vice chairman (chairman of labor union branch)• Company’s medical advisor• Safety manager, hygiene manager• Committee member from the company• Committee member from the labor union

Factory safety and hygiene
committee meeting (once a month)• Sub-committee chairman

Department/section safety andhygiene subcommittee (once a month)(head of department/section)

Slogan• Safety manager

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

• Hygiene manager

Expert committee organizedwhen necessary, including• Ad hoc assessment committee• Traffic safety measure committee

Office meeting on safety
and hygiene• Committee members(representatives of teams/groups)

Occupational safety andhealth management system

Awards for workplaces
with no accidents

We have implemented risk assessment since April 2004 in aneffort to obtain certification for its occupational safety and healthmanagement system by autumn 2006. Risk assessment identifies
risk sources and quantitatively evaluates risks based on the
degree of injury, size of hazard and frequency of approaching therisk sources. By taking countermeasures against each high risk
source in turn, we will advance the establishment of thismanagement system.

We award workplaces that have had no accidents for a certain
period of time. Different criteria are applied to the period of timedepending on the job content and the opportunities for contact
with danger. For example, the period is set at 18 months for the
manufacturing sector but 36 months for the clerical sector. In
workplaces that win this award, all employees are given acommemorative gift to celebrate the achievement and toencourage them to continue their efforts to avoid accidents.

Changes in disabling injury frequency rate
Our disabling injury frequency rate in FY2004 was 0.10, with only one
disabling accident. When a disabling accident occurs, we try to
prevent a recurrence by setting up a special task force composed ofsafety and health committee members to assess thecountermeasures at the workplace where the accident occurred andthe adequacy of the management system.
A questionnaire survey on risks conducted in FY2004 as part of ahealth, safety and environmental convention revealed that many risks
such as unsafe actions and conditions are lurking in our immediatesurroundings. In response to the results, we are encouraging theimprovement of problems at each workplace to prevent accidents.
Disabling injury
frequency rate

No. of disabling accidents x 1 million=

total work hours

No. of disabling accidents

No. of accidents

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2

0

0

3

1

5

2

3

2

1

Changes in disabling injury frequency rate
Electric machinery andapparatus manufacturing

NGK

0.7
0.6

0.51

0.5
0.4
0.3

0.21

Average for10 years: 0.19

0.2

0.29

0.19
0.10

0.20

0.1
0.0

0.30

1995

0

0

1996

1997

0.10

1998

1999

2000

2001

2002

2003

2004

(FY)

Earthquake disasterprevention committee
We have established an Earthquake Disaster Prevention
Committee to prepare us for a large-scale earthquake based on
sound precautions and a risk management system that canprotect employees. We also organize various activities to prevent
disaster and minimize damage including the improvement ofbuildings and evacuation drills.

Mental health
The increasingly complicated social life of recent years isaccompanied by various kinds of stress and problems in personal
relationships, which can lead to mental illness in more than a few
cases. Since FY2001, we have been making efforts to provide
thorough mental health care, which can be accessed outside thecompany in order to ensure the protection of privacy.

Separation of smoking areas
Smoking has an impact on thehealth of the smoker, andsecondhand smoke can also
affect the health of the people
around the smoker. We areworking to maintain non-smoker’s
health by prohibiting smoking in
dining rooms and separatingsmoking areas from rest areas toprevent secondhand smoking.
Occupational safety and health
NGK Spark Plug Group ECO report 200534

society

Social and local activities
Expo 2005 Aichi, Japan

Expo 2005 Aichi,
Japan partnership project )Morimura Okura Museum( anWe support the 2005 World Exposition in Aichi, Japan (Expo2005), which has been held since March 25, 2005.

On March 5, 2005, the four companies of Morimura Group(Noritake Co., Limited, Toto Ltd., NGK Insulators Ltd. and NGK
Spark Plug) opened their jointly established Morimura Okura
Museum, "CANVAS”. It introduces the history of ceramics, the useof ceramics in daily life and industry, their contribution to theglobal environment, and so on, and also conveys the fascinating
aspects of design and manufacturing.

Activities in Expo 2005
In the Expo 2005 Aichi in Japan, where one of the sub-themes is“Development for Eco-communities,” the EPOC and the Japan
Association for the 2005 World Exposition jointly organize
backyard tours to observe environmental technologies hidden
behind the pavilions and facilities. We dispatch staff as a member
company of the EPOC, and introduce cutting-edge environmental
technologies to visitors. We also publish business advertisements
on a giant Ferris wheel in the Nagakute Area to encourage
environmental consideration.

Traffic safety
In the hope of improving traffic safety in the areas around ourfactories, we perform street patrols and other activities.

Komaki Factory* EPOC: Environmental Partnership Organizing Club
http://www.epoc.gr.jp

Cleaning activities organized by
local governments
As companies are also citizens that make up society, we
participate in cleaning and landscaping activities organized by
local governments in order to support the creation of acomfortable environment.
Participation in FY2004
Apr. 2004

Jun. 2004
Oct. 2004

Mt. Komaki landscaping activity(Organized by Council for Promotion of Prevention of Garbage Littering in Komaki City)

Clean Campaign Nagoya 2004

11 persons(Organized by Nagoya City and Nagoya Urban Landscaping League;
participated as member company of EPOC)

1 personsCleaning activity in Komaki City

9 personsNov. 2004 Secure, Safe and Comfortable Urban Development Campaign, Nagoya 2004
(Organized by Nagoya City and Nagoya Urban Landscaping League; participated as member company of EPOC)

3 personsAll local governments in Aichi Prefecture take part in prefectural traffic
safety campaigns four times a year (spring, summer, autumn and yearend). As part of the campaigns,
street patrols are carried out
across the prefecture, in whichapproximately 20 executives andother employees of Komaki
Factory participate every time. In
the morning rush hour, street
patrols are conducted at crossingsnear the factory for about an hourto encourage traffic safety.

Miyanojo Factory
Miyanojo Factory, with its many automobile commuters,
encourages driving with headlights switched on throughout theday. Driving with headlights on even during the daytime helps letother road users know you are there, and can prevent accidents
due to the negligence of oncoming traffic.

Local cultural activities
Participation in festivals
Since Miyanojo Factory started
operating in 1974, it has
participated in the Hometownof Bamboo Miyanojo Summer
Festival. In 2004, 103 employees
participated in the Miyanojo
Ondo dance to the sound of
Itsutsu Daiko, a traditional
performing art.

Opening of a playing
field for the community
When requested by the local
community, Miyanojo Factory
opens its playing field forevents such as official rugby
games, training camps andchildren’s baseball.
Mt. Komaki landscaping activity

35

Social and local activities
NGK Spark Plug Group ECO report 2005

society

Consumers
Personal Information Protection Law
In April 2005, the Personal Information Protection Law was fully enforced. This law
obligates companies to properly handle personal information through, for example, theidentification of the purpose of use. We have also notified all employees of the specificactivities for the protection of personal information by publishing our “Guidelines on
Handling Personal Information” in April 2005. For customers using our website, we
describe our personal information protection policy on-line.

“Personal information protection policy” on our website

Disclosure of information on products
We introduce information on products through our catalogs and websites.

Automobile products

Communication products

Ceramic products

NGK spark plugs Plug Studio
There are many part numbers on spark plugs, and the type and required number ofspark plugs differs depending on the model of the car in which the plug is used. The
Plug Studio is mainly for customers who want to replace plugs by themselves, allowing
them to search for suitable plugs. Along with information on products such as spark
plugs and power cables, we also provide information on events and races.
http://www.ngk-sparkplugs.jp

Exhibition at trade shows
The 38th
Tokyo Motor ShowTo publicize the products and our latest technologies to as manycustomers as possible, we are making presentations at various
trade shows and events. In FY2004, we exhibited spark plugs,
glow plugs, various types of sensors and cutting tools at thefollowing trade shows, where we received many visitors.

Major events where we gave presentations in FY2004
May 19-21 Automotive Engineering Exposition 2004
Nov. 2- 7 The 38th Tokyo Motor Show 2004
Nov. 10-12 MWE 2004
Jan. 14-16 Tokyo Auto Salon 2005 with NAPAC
Feb. 11-13 Osaka Automesse 2005
Feb. 18-20 Fukuoka Auto Salon 2005
Mar. 19-21 Osaka Motorcycle Show 2005

Automotive Engineering
Exposition 2004
Consumers
NGK Spark Plug Group ECO report 2005

36

Messages from stakeholders
Ms. Yuka Tamura

Mr. Ken Uehara

Full-time lecturer in Environmental & Social Studies,
Faculty of Humanities, Kyoto Seika University

Environmental Management System Auditor
Environmental Planner of Earth Republic
Full-time Manager, Survey and Research
Department
Technofer, a JAB-accredited training organization

In this year’s report, I especially focused on the list of “NGK
Spark Plug Group Eco Vision 2010.” The activities andprogress can be understood at a glance with respective
details in later pages, which represent the company’s serious
and comprehensive activities.
I have received a polite reply to the reports on theenvironmental report prepared and sent by some students of
Kyoto Seika University last year, some of whose opinions arereflected in this document. I have realized that
communication, which is also included in the environmental
policy, is practiced in a favorable way. I am looking forward to
future developments.

I feel that the NGK Spark Plug Group a truly sincere company because, on
the significant issue of CO2 emissions, they consider total emissions rather
than emissions per unit production, and their violations and complaints arecomprehensively published. I guess that their way of manufacturing
products is also sincere. I also praise the company for paying attention to awide range of indirect environmental issues such as the generation of red
mud in association with the refining of alumina. On the other hand, it might
be better if the NGK Spark Plug Group had characteristic activities which
symbolized the environmental activities of the group.
In this context, as I hear that frogs, which are the main feature of the
ECO report, are decreasing in number worldwide, how aboutdeveloping environmental activities with a slogan such as “Protecting
the environment where even creatures sensitive to air and waterpollution like frogs can live”?

Results of questionnaire in ECO report 2004
Thank you for sending us all your answers to the questionnaire in the ECO report 2004 published in FY2004. We take your 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 2004?
Difficult tounderstand0%

I did not know
8%

Average23%

I knew a lot
38%
I knew a little
54%

Q3

Easy to understand77%

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

Q4

From what position mainly did you readthe ECO report 2004?
Client15%• Business activities and environmental impact

Consumer

23%

Public organization

8%

Environmental staff in a company• Basic philosophy on the environment

8%

15%

• Chapter 2: Factory/Office

23%

8%

Environmental NGO/NPO
Research/education institute
Employee of the Nittoku Groupor employee's family

Q5

Have you read any of the ECO reports
we published before?
I read themevery time
15%

Q6

Please write down any opinions and /or requests
you may have for us on its environmental
conservation activities.

• There are too many foreign words.

I need explanations.
• How about preparing a report based on

I have readsome before
15%37This is the first time
70%

Messages from stakeholders
NGK Spark Plug Group ECO report 2005

corporate social responsibility?
• The report contains some activities that our company

also needs to introduce, and I have learned a lot.

Third party examination
We prepare this ECO report based on our policy of conducting information disclosure in an easily understandable manner. ECO report
2005 underwent a third party examination by TÜV Rheinland Japan, which also examined last year’s report. The examination was madeby 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 with the supporting materials.

Undergoing the third party examination
We received a high evaluation on our stance of positively promoting information disclosure and establishing a mechanism to collect andorganize data on environmental impact. It was also indicated that the published data and assessment and effect on the implemented
items are difficult to understand.
We respectfully accept this evaluation and will strive to continually enhance the highly evaluated aspects and improve the insufficient
points.
We have improved the parts that were lacking in description. We acknowledge that the parts where immediate improvement is notpossible due to the inadequacies of our group’s system are our future challenges, and will improve our system in these areas.

Request to answer
the questionnaire

Thank you for reading through our ECO report 2005. For the further improvement of thisreport, we kindly ask you to fill in the attached questionnaire.

Please fax the completed questionnaire to ::* You can also fill in this questionnaire at
the following website→ +81 52-872-5942→ http://www.ngkntk.co.jp/environment/

Personal information protection policy
We will only use your personal information to delivery next year’s ECO 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.
Third party examination
NGK Spark Plug Group ECO report 2005

38

...and acting accordingly.

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

Created with 100% recycled paper in order to protect forest resources.
Printed with soy ink in the interest of the global environment.