Environmental & Social Report 2010

Environmental & Social Report 2010NGK Spark Plug Group

During the preparation of this report
The purchase of the materials (paper, ink, etc.) comprising this report, and also
editing and printing related to this report, were carried out by an ISO14001certified company. Also, the materials (paper, ink, etc.) used do not containcadmium, lead, hexavalent chromium, mercury, polybrominated biphenyl (PBB),
or polybrominated diphenyl ether (PBDE).
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and also developing fluid and fixing fluid accompanying the
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Ink:

Paper:

Printing:

Ink that does not contain VOC (Volatile Organic Compound) wasused to minimize the generation of VOC. This ink also conforms
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association.
We used paper approced by FSC (Forest Stewardship Counsel).
This contributes to the conservation of the world s ongoing
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were used.

14-18 Takatsuji-cho, Mizuho-ku, Nagoya,
467-8525, Japan
http://www.ngkntk.co.jp■ Inquiries about this report
CSR Promotion Department
TEL : +81 52-872-6248 FAX : +81 52-872-9980
e-mail ： csr@mg.ngkntk.co.jp

日本特殊陶業は、
チャレンジ２５キャンペーンに参加しています。

This brochure uses recyclable paper.

Environmental & Social Report 2010

Results of questionnaire concerning Environmental and Social Report 2009NGK Spark Plug Group

Thank you for sending us all your answers to the questionnaire in“Environmental and Social Report 2009” published in fiscal 2009.
We take your opinions seriously and are working to implement even more thorough information disclosure.

Index
Message from the President ･････････････････ 3

Ｑ1［Feature １］ Development of solid oxide
fuel cell (SOFC) ･････････････････････････････ 5［Feature 2］ 50 years of Ceramica e Velasde Ignicao NGK do Brasil Ltda. ･･････････ 7

Before reading our Environmental and Social
Report 2009, how much did you know about
NGK Spark Plug Group s environmental policyor activities?

Reasonably
easy
20%

Nothing5%

Toward CSR Management ･･･････････････････ 9

A lot
45%

1. Compliance ･･･････････････････････････････11
3. Fair Dealing ･･･････････････････････････････15

Corporate Proﬁle4. Communication ･･････････････････････････16

Corporate Name
Head Office

5. Environmental Conservation
Environmental declaration,
environmental policy, environmental
action plan ･･････････････････････････････17
Environmental load from businessactivities ･････････････････････････････････19
Management ･････････････････････････････20

NGK Spark Plug Co., Ltd.
14-18 Takatsuji-cho,
Mizuho-ku, Nagoya
Foundation
October 26, 1936
Capital47,869,270,000 yen
Business (1) Manufacturing and selling spark
plugs and related products forinternal-combustion engines.
(2) Manufacturing and selling technicalceramics and applicable products.
Group Companies
35 subsidiaries (9 in Japan,
26 overseas), 6 affiliates

Ｑ3

Region ･･････････････････････････････････････30

Easily Understood
This report has been prepared based on our
corporate code of conduct (page 9) with the aim ofclearly describing the concepts, mechanisms, andresults of our activities.

9. Cultural Respect ･･････････････････････････39
10. Ethics ･･･････････････････････････････････････40
Messages from a stakeholder ･･････････････41
Third party examination ･････････････････････41【Period covered】From April 1, 2009 to March 31, 2010
Some other very recent activities and cases are also included.
【Covered Organization】●Environmental aspects : NGK Spark Plug Group・NGK Spark Plug Co., Ltd. (excluding the sales offices andsales branch offices)
・9 consolidated domestic subsidiaries and 1 affiliate.
●Social aspects : NGK Spark Plug Co., Ltd.
However, this report may also cover activities of subsidiaries
and affiliates inside and outside Japan. In such cases,
specific company names are indicated.
【Publishing Director】Norio Kato, President【Editor in Chief】Yukashi Ukai,
General Manager of CSR Promotion Department【Published】October 2009
（The next report is planned to be published in September 2011.
/The previous report was published in September 2009.）

1

Environmental & Social Report 2010

Normal
35%
Good
65%

Satisﬁed
95%

OverallAmount of Information

Ｑ4

Poor 0%DesignPlease check the box or boxes that best
describe your situation and position.

■ 5．Environmental Conservation−Environmental declaration,
environmental policy, environmental
action plan

As a NGK Spark Plug Group
employee, family member,or ex-employee
10%−Environmental load from businessactivities

As a person working in CSR/
environmental aﬀairs
15%−Management

As a business associate
75%−Products

Editorial Policy

8. Civil Society ･･･････････････････････････････39

Too much
5%■ 6．Social Contribution

Products ･･･････････････････････････････････27

7. Employees ･････････････････････････････････33

Insuﬃcient 0%■Message from the President

Factory / Oﬃce ･･････････････････････････23

6. Social Contribution ･･････････････････････31

What did you ﬁnd particularly interesting?
(Top six)

Diﬃcult 0%

Easy
80%

A little50%

2. Consumers and Customers ････････････13

How did you ﬁnd our Environmental and Social
Report 2009?

Ｑ2

Importance and CompletenessWe have given consideration to the importance andcompleteness of the content of this document
giving reference to the“Environmental Reporting
guidelines (2007 version)” and “GRI Sustainability
Reporting Guidelines (Version 3)” issued by the
Ministry of the Environment of Japan.
Trustworthy
We have worked to improve the trustworthiness ofthe document by undergoing third party
examination, and verifying items including thecorrectness, neutrality, and verifiability of thecontent.
Application of Website
Places where you can look up more detailed
information on our website are marked with thismark: W eb . Please view the website data as well.
Information not marked with a URL within thisdocument can be viewed in the Environmental andSocial Report at our download corner.
http://www.ngkntk.co.jp/english/environment/
ecoreport.html

Ｑ5

Have you read any of our previously issued
reports?

Yes, every year
42%

No, this was
my ﬁrst time
37%

Yes, occasionally21%

Ｑ6

If you have any other comments or requests
regarding our environmental activities, pleasewrite them here.

■More and more people say that we need to reduce ourdependence on fossil fuels. Do you have any products
or technologies that can cope with this trend?
(Answer) See our feature article on the development
of SOFC (solid oxide fuel cell).
■I am concerned about the fact that the NGK Spark PlugGroup failed to meet noise requirements.
(Answer) We have already introduced eﬀective countermeasuresand have successfully reduced noise levels to meet requirements.
We will continue to implement appropriate noise control
measures to ensure that we will not cause disappointment again.

■Request to answer the questionnaire
Thank you for reading through our Environmental andSocial Report 2010. For the further improvement of thisreport, we kindly ask you to ﬁll in the foldout questionnaire.

Fax：＋81 52-872-9980
e-mail：csr@mg.ngkntk.co.jp＜Personal information protection policy＞ We will only use your personal information to delivery next year s report to you. Even when
we publish the results of thisquestionnaire, we will not show it in a form in which the

respondents can be identiﬁed.

Environmental & Social Report 201042

Business Areas
Our scope of business extends to products used in various fields,such as transportation and information, in order to meet social needs.
We are constantly making efforts to be on the cutting edge of the information and communication fields, including motorization,
which will be the core industry of 21st-century society. We are also making vigorous efforts in the medical field in order to adapt
to the super-aging society to come, based on the application of our ceramics-centered techniques. Furthermore, the object ofour vigorous activities includes the environmental field.

Primary Products

Automotive Components Group

Communication Media
Components Group● Spark Plugs, Related Products● Glow Plugs● Sensors

Spark Plugs for
AutomobileW

Exhaust Gas Oxygen
Sensors

Technical Ceramic Group● Semiconductor Components● Medical Products● Industrial Components● Cutting Tools ●Electronic Components

Ceramic
IC Packages

Bone Filling
Materials

Organic
IC Packages

Domestic and Overseas Network

W eb■ JapanNGK Spark Plug Co., Ltd.
Affiliated Subsidiaries ･････････････････････････････････････････････9Equity Method Affiliates ･･･････････････････････････････････････････1
Aﬃliates not applicable to the equity method of accounting ･･1■ Europe
Affiliated Subsidiaries ･････････････････････････････････････････････5

Ceramic Inserts

http://www.ngkntk.co.jp/english/company/network.html■Americas
Affiliated Subsidiaries ･････････････････････････････････････････････6
Non-affiliated Subsidiaries ････････････････････････････････････････1■Asia, Australia, Other
Affiliated Subsidiaries ････････････････････････････････････････････14
Equity Method Affiliates ･･･････････････････････････････････････････1
Aﬃliates not applicable to the equity method of accounting ･･3

Financial Data
■Net sales■Net income■ Return on Equity (ROE*)(million yen)(million yen)（％）
20

Consolidated

12.5

Other
2％

Foreign sales are sales in regions and countries
other than Japan by NGK Spark Plug Co., Ltd.
and aﬃliated subsidiaries.

Net Income

2007

2008

2009

(ﬁscal year)■ Number of Employees(people)Non-consolidated

14,000Consolidated

12,000

2005

2006

2007

2008

8,000
6,000
4,000
Automotive
components
68％

ROE ＝

2006

10,000243,914millionyen

North
America
31.4％

ROE ROE is one indicator of a company’s profitability.
ROE reveals how effectively shareholder equity is being used;higher ROE means higher profitability.

13,509■Sales Composition by Industry
Segment

2005

2,000
0

11,795

243,914millionyen

2009(ﬁscal year)

Communication
media components
and Technical
Ceramics
30％

Asia
13.7％

2008

11,979

2007

6,050

Japan
21.9％

2006

-30.6
-40

11,599Other regions
11.9％

2005

-30

5,882

2009

(ﬁscal year)-20

10,407

2008

-10

5,626

2007

7.0

9,815

2006

-80,000

13,298-74,117-40,000-71,669

22,144

14,40534,072-20,000

28,148

025,104

0

7.7

5,106

2005

■Sales Composition by Region

Europe21.1％

10-60,000

50,0000Consolidated

20,00021,095

243,914292,121100,000

206,487

345,584

295,240

344,891

306,663284,884

234,697

150,000

250,361

300,000

200,000

Non-consolidated

40,00010.5

350,000

250,000

Consolidated

5,726

Non-consolidated

400,000

2009(ﬁscal year)

Shareholders’ Equity
Environmental & Social Report 20102

Message from the President

Toward the Achievement of theMedium-term Management Plan
This fiscal year we have started to implement the 5th Mediumterm Management Plan, of which commencement was postponedfor one year, since we finally began to see a sign of improvementin our business environment that had been hostile until then.
Under the Plan, we regard the three years from fiscal 2010 to2012 as a preparatory period to strengthen the foundation for thebusiness, and to plant the seeds for further development in light of
the NGK Spark Plug Group’s vision 10 years ahead into the
future.
In retrospect, the start-up of our company as an automotive
component manufacturer dates back to the prewar period. Since
there were many competitors making products similar to ours inJapan, our future prosperity was never promising at that time. We
then accumulated efforts for improvement while exerting ouroriginality and ingenuity. I believe that such steady endeavors haveenabled our company to successfully grow into an enterprise thatcan obtain continued support and patronage from our stakeholders.
This should be recognized anew by everyone in our group, and weshould go back to the basics, by such means as strengthening
our business structure and capability to collect information aheadof other companies. In so doing, we strive “To Go a Step Further
in Manufacturing.”
On the other hand, the research and development (R&D) outcomesthat can take the lead in the next generation cannot be obtained
overnight but can be brought about only by diligent efforts. We
work to accelerate new product development by improving the
R&D system to develop new technologies, and actively promoting
human and technological interactions. At the same time we will
strategically enhance our organizational capability through effective
use of human resources. We are determined to continue group-

Norio Kato

wide efforts to address various tasks with vivacity and tenacity,

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

which represent our strengths, to achieve goals of our management
plan, in keeping with the quality-oriented and full-participation
principles passed on to us from the foundation of the company.

September 2010

3

Environmental & Social Report 2010

components of personal computers. Our products are used in cell

Action for the Change

phones,Next year, NGK Spark Plug Co., Ltd. will celebrate its 75th
anniversary. The company, which started as a manufacturer ofspark plugs, has expanded its scope of business to coverautomotive

sensors,

IT-related

components,

electronic

components and medical products, always meeting customers’
needs of the time sincerely and swiftly. In the automotive industry,competition has been accelerating among manufacturers indeveloping electric cars, in order to address the depletion of fossil
fuels and to contribute to a low-carbon society. Somemanufacturers have started to sell electric vehicles for generalusers.
In response to these changes, our company has undertaken thedevelopment of small-size, high-power solid oxide fuel cell (SOFC)
by integrating our long-accumulated technologies of ceramic
packages for MPU and those of automotive oxygen sensors.
SOFC features an effective power generation methodology
comparable to that of solar and wind power generation. Since
SOFC generates power where it is used, transmission power loss
can be reduced. For this reason, we are convinced that SOFC will
greatly contribute to the realization of a smart grid (a distributed
power supply-demand network) in the future. Currently we areworking to develop SOFC for household use. We will continue tovigorously develop technologies with the aim of creating a nextgeneration product that will replace the internal-combustion
engine. Moreover, we will further refine our technologies used forcommunication media components and medical products, so as
to cope in a timely manner with the needs of ever-changing times
and thereby propose new values to society.

variousofficeautomation

machines,

automotive

components and the like, and many of our products are notdirectly seen by people in general. However, we are confident thatour products play important roles in people’s everyday life,
supporting social infrastructures and contributing to social
development.
This year, the Tenth Meeting of the Conference of the Parties to
the Convention on Biological Diversity (COP10) is being held in
Nagoya, attracting more attention to environmental efforts
extended by each company. NGK Spark Plug Group also reaffirms
the importance of biodiversity and augments our environmental
measures. In 2004, we stipulated Eco Vision 2010, under which
we set the goal of reducing overall greenhouse gas emissions.
Despite our daily efforts, including production process review andstreamlining, regrettably we fell slightly short of the reduction goal
for fiscal 2009. This year, which is the final year of our Eco Vision2010 initiative, we will continue working hard to achieve the goal,
while coping appropriately with the changes in management
environment.
As my personal creed, I have been committed to “refining mysensitivity and building up my endurance” since before I was
appointed President. I believe that it is very important to have acertain interest in or to question about even little things in daily life.
I also have an idea that we can create new values only after
overcoming difficulties confronting us when we try to achieve
something.
I believe that our corporate social responsibility (CSR) activities
provide us with a great opportunity to reform the corporate cultureof the entire Group. If individual employees take an interest in
CSR, it will lead to their voluntary actions, which will in turnengender trust among employees and generate a synergistic

Environmental Conservation
and CSR Initiatives

effect. By cultivating such a sound and strong corporate culture,
we aim to grow as an enterprise that can contribute to thedevelopment of a sustainable society.

Our high-performance automotive plugs and various sensors help

We hereby release our Environmental and Social Report 2010

improve fuel efficiency and reduce exhaust gases, contributing towhich compiles our activities during fiscal 2009. I look forward

global environmental conservation and reduction of greenhousereceiving to your unreserved comments and opinions.

gas emissions. The IC packages, the mainstay products in our
Communication Media Components Group, are the integral

Environmental & Social Report 20104

Feature

1 Development of solid oxide fuel cell (SOFC)

Toward Achieving
a Low-carbon Society
and a Smart Grid
Fuel cells have drawn public attention as an essential component forrealizing a low-carbon society and a smart grid (a distributed power
supply-demand network). NGK Spark Plug Co., Ltd. is working on thedevelopment of SOFC, as they are easy to introduce at home andexpectations are high for their high eﬃciency.

Fuel Cells in a Low-carbon, Smart Gridbased Society

Engineering R&D Group, Komaki Factory

believed to be a cause of global warming, and therefore contributes
to the realization of a low-carbon society.
The secondary feature is that, using the existing infrastructure,

As global warming issues are becoming increasingly serious, thesuch as utility gas, the generation method is a waste-cutting

world today is looking for the emergence of a new energy source

technology. We are developing fuel cells that take hydrogen fromto reduce greenhouse gas emissions such as carbon dioxide

utility gas or other fuels, and thereby enable stable power(CO2). In such a situation, one such source that has received

generation without being affected by natural conditions, unlike

attention is the fuel cell, as a next-generation, environmentallysolar or wind power.

friendly power generation system. Fuel cells have two prominent

Moreover, fuel cells generate power close to where it is used,features.

such as in the home, and therefore are free of the problem of

The attention-getting primary feature of fuel cells is their use of antransmission power losses inherent in power sent from power

environmentally friendly power generation methodology. Unlike

stations. As such, fuel cells are essential for achieving next-

disposable dry batteries or rechargeable batteries that store

generation efficient power utilization, as exemplified by the smart

electricity, fuel cells generate power via a chemical reaction

grid (distributed power supply-demand networks).

between hydrogen and oxygen. This process produces only
electricity, water and heat, basically involves no CO2 emissions,■ SOFC chemical reactions

High-Efficiency, Easy-to-Install System
Readily Compatible with Existing
Infrastructure
Fuel cells fall into several types including direct methanol fuel cell
(DMFC), which are anticipated to be used in personal digital

H2(hydrogentaken out ofreformed fuel)H 2O(water)assistants, and polymer electrolyte fuel cell (PEFC), which aree−(electron)e−already on the market. We are working on the development ofO2−(oxygen ion)O
(oxygenfrom air)2solid oxide fuel cell (SOFC) among other types of fuel cell.
The SOFC boasts 45% to 55% power efficiency for output under
1,000 kW. This means that, in home-use and other small

Anode Electrolyte Cathode(zirconia)

generation systems, SOFC demonstrates high power efficiency.

Reaction at anode ： H2＋O2−→ H2O＋2e−
Reaction at cathode ： 1/2O2＋2e− → O2−

additional infrastructure. Thus, expectations are high for SOFC as

Total reaction

H2＋1/2O2

Moreover, they are fueled with utility gas, eliminating the need for→ H2O

fuel cells that achieve high efficiency and are easy to install at
home.

■ Concept of smart gridPower storage facility

Large-scale solar power generation
Large power station

Information exchanged for total
demand optimization

Generation

Power storage facility

Hot water supply/Space heating

IT used for energy control

Fuel cells

Large-scale wind
power generation

5

OfficeEnvironmental & Social Report 2010

Plant

House

Electricity

Hot water

Generator-equippedhouse

Recovers and Reuses Heat from Power
Generation
Fuel cells are known to be environmentally friendly not simply due

45%LHV (Lower Heating Value) or more at 700 W output, which isalso the world’s highest level of efficiency.

heat for hot water supplies and space heating.

Making the Best Use of our TechnicalExpertise Developed through Ceramic
Package and Automotive Sensor Production

Heat generated at conventional large power stations is difficult to

One key to the high values achieved for both power density andtransport to residential areas. In contrast, fuel cells installed at

efficiency is our expertise developed through years of experience

home enable heat from power generation to be used immediatelyof developing ceramic materials. Fundamental to NGK Spark Plugin the home. Specifically, SOFC operates at high temperatures ofCo., Ltd. are the assessment, design and manufacturing

approximately 700ºC and generate much heat, which can betechnologies applied to ceramic MPU packages and various

readily used for hot water supplies and space heating.

automotive sensors. Evolving these technologies, we haveHome SOFC gas cogeneration systems are expected toaddressed the challenge of developing SOFC. The result is thesubstantially contribute to reducing CO2 emissions in the residential

small yet high-power SOFC developed through the optimization of

sector, because, in addition to high power efficiency, they achieve

anode pore size and the porosity of the power generation cell thathigh energy efficiency through the use of heat.

is the smallest constitutional unit of SOFC.

Achieves High Levels of Both PowerDensity and Efficiency

NGK Spark Plug Co., Ltd. views it an important engineering

Our SOFC features high power density and efficiency.

We make vigorous efforts to develop various related technologies

The power density refers to power generation per unit of fuel celland to explore and create next-generation products that canarea (W/cm2). Higher power density values enable smaller andserve as post-internal combustion engines.

higher power fuel systems.

The home SOFC gas cogeneration system is a forerunner of our

Our SOFC has achieved a power density of 1.3 W/cm2 (SOFCbusiness envisioning a hydrogen society. We will reinforce ourdeveloped in 2009). The power density at the world’s highest leveltechnical development efforts to achieve further miniaturization

has enabled the reduction of cells required for 1 kW of output (aand higher power.

to high power efficiency; with fuel cells, it is possible to recoverheat generated during power generation and to use the recovered

challenge to conduct research and development for building asociety that uses hydrogen as an energy source, as with fuel cells.

rating for home SOFC cogeneration systems) to only 18 planarcells (effective generation area: 100 cm2). Since conventional
systems incorporate 30 to 40 planar cells or 100 to 200 micro-■ Creating next-generation products by making
the best use of our expertisetubular cells, reduced cells have enabled the miniaturization of cellstacks.
This significant reduction of
cells

has

led

to

reducedPower
generationcellvariations in fuel distribution toeach cell. This has resulted in

Ceramic MPU package

substantially improved power〉〉〉

efficiency.
Power efficiency is an indicatorof how much of the fuel’s

SOFC cell

SOFC gascogeneration unit

energy is efficiently converted
to electricity. Higher (better)
power efficiency implies higher
performance.

140mm

Our SOFC gas cogeneration
system (developed in 2009)
achieves power efficiency of

Zirconia oxygen sensor
180mm
Fuel cell stackEngineering R&D Group Established
In July 2009, we established the Engineering R&D Group in
response to radical changes in our business climate, the rising needto mitigate global warming being one of such changes. Unifying
departments engaged in research & development, intellectual
property, production engineering, production support engineeringand environment & safety management into an organizational unit,

the Group functions to ensure cross-departmental communications
regarding engineering within the Company.
The Engineering R&D Group is committed to developing a scheme
for effectively demonstrating the strength of engineering divisions,to providing support to production divisions, and to creating futurebusiness and products including SOFC.

Environmental & Social Report 20106

Feature

2 50 years of Ceramica e Velas de Ignicao NGK do Brasil Ltda.

Aiming to Become a
Corporation Liked and Lovedby the People of the World
Ceramica e Velas de Ignicao NGK do Brasil Ltda. is the largestof the overseas subsidiaries of NGK Spark Plug Co., Ltd.
Of total sales, overseas sales account for about 80% in ourbusiness, which became full-fledged 50 years ago when NGKSpark Plug Co., Ltd. ﬁrst advanced into Brazil.

Ceramica e Velas de Ignicao NGK do
Brasil Ltda. Marks Its 50th Anniversary
In 1959, Ceramica e Velas de Ignicao NGK do Brasil Ltda. (NGKdo Brasil Ltda.) was established as the first overseas production
site of NGK Spark Plug Co., Ltd. It was the first time for us toestablish a factory outside Japan, although we had already started
exporting products overseas. Moreover, at that time there werestill few Japanese companies expanding their business overseas.
The Ministry of Foreign Affairs of Japan reported that Brazil’s
automotive market was promising, though the market was still in
its infancy. Since NGK Spark Plug had not yet acquired any
customers in Brazil, it was a great challenge for us to set up afactory in that country.
However, thanks to the valiant efforts of our predecessors, NGK
do Brasil Ltda. has gradually gained recognition from local
automotive manufacturers, growing into an enterprise trusted andloved by the Brazilian people. Today the NGK Spark Plug brandhas so deeply penetrated into Brazil that it holds an 80% share of
the Brazilian market.
On August 1, 2009, NGK do Brasil Ltda. commemorated the 50th
anniversary of its foundation. We are pleased to have been able tocontinue business operations in Brazil, located half a world awayfrom Japan, for over 50 years. This fact rests as proof that wehave obtained generous support from customers, residents inlocal communities and employees in that country.

Factory at the time of founding

Plugs first produced in Brazil

Spark Plugs and Mosaic Tiles
Needless to say, we had to go through much trial and error in our
first overseas expansion. Partly for this reason, NGK do Brasil
Ltda. bears the following two features, which derive from its
founding history.
① NGK Spark Plug Group’s sole overseas production
subsidiary carrying out integrated production of spark plugs
A spark plug comprises metal and insulator parts. The
manufacture of insulators entails firing techniques. Since NGK
do Brasil Ltda. was jointly established by NGK Spark Plug Co.,
Ltd. and a tile manufacturer, the Brazilian subsidiary was inpossession of the firing techniques that serve as the basis of
spark plug production. Such an advantage enabled NGK do

7

Environmental & Social Report 2010

Overall view of the current factory

Brasil Ltda. to realize integrated production of spark plugs byapplying its firing techniques from early on.
② NGK Spark Plug Group’s sole subsidiary that produces tiles
Since its foundation, NGK do Brasil Ltda. has produced mosaic
tiles, taking over the business of the tile manufacturer. NGK do
Brasil Ltda. therefore boasts unique tile techniques that NGK
Spark Plug Co., Ltd. in Japan does not possess. Taking
advantage of this strength, NGK do Brasil Ltda. offers distinct
designs that satisfy customer needs, and is highly acclaimed in
the industry.

Photo of the present reception counter(backed by a mosaic-tiled wall)

The Natural Environment is Not an Assetof a Company but is an Asset to be
Shared by All the People
NGK do Brasil Ltda. believes that the natural environment is not anasset of a company but is an asset to be shared by all the people.
Since no one could survive in the future without the naturalenvironment, NGK do Brasil Ltda. hopes to pass a rich naturalenvironment on to future generations. As such, the company has
focused on reducing effluents, exhaust gases, noises and the likethat cause environmental contamination.
In 1973, NGK do Brasil Ltda. installed factory effluent processing
systems and improved the filter to reduce the amount of dust
released into the atmosphere. Meanwhile, the company has taken
environmental measures making effective use of plants. Water
hyacinths (Eichhornia crassipes), which are said to absorb nitrogenand phosphorus in the water, are grown in the pond within thefactory premises, to help purify non-industrial wastewater
discharged from the entire factory.
Since an early stage, NGK do Brasil Ltda. has worked on
environmental preservation for the next and future generations. To
ensure continuous improvement of its environmental activities in
the future, the company’s Cocuera Factory established anenvironmental management system, obtaining ISO 14001
certification in 2001.
This accreditation has further expanded the scope of thecompany’s environmental activities. For instance, the company isworking to reduce water and power consumption, increase theuse of rainwater for production processes, achieve zero waste
landfill, and promote recycling of waste materials.

Recent years have seen strengthened hazardous chemical
substance regulations around the world. All the NGK Spark PlugGroup companies follow these regulations, according tointernationally unified standards. Our spark plugs were alreadycompliant with the relevant regulations even before they tookeffect, by such means as changing from hexavalent to trivalentchrome plating used in the plugs’ metal portion, and applying alead-free glaze to the insulators.

(cleaning), seiketsu (cleanliness), and shitsuke (good manner).
Currently, NGK do Brasil Ltda. has obtained ISO/TS 16949
certification for its spark plugs, cables and sensors. The company’s
ceramic and tile segments have acquired ISO 9001 certification.
NGK do Brasil Ltda. continues to produce and market products ofworld-class quality.

Production line in the past(assembly)
Pond in which water hyacinths are
grown

ISO14001 certification

Nittoku Quality Mind
Since its founding in 1936, NGK Spark Plug Co., Ltd. hascoherently maintained its basic stance and philosophy to thepresent as the “Nittoku quality mind.” Also at NGK do Brasil Ltda.,
which boasts a 50-year history since its establishment, the “Nittoku
quality mind” has been passed down unbroken from those who
worked to establish the company to present workers.
In quality control that requires continuous improvement, the mosteffective method is to make use of opinions from employees, whoare engaged in daily production and who can experience problems
firsthand. To ensure that all the employees can work for quality
improvement, in 1975 NGK do Brasil Ltda. introduced a QC circle
system, which had been proving effective in many Japanesecompanies at that time.
The QC circle activity system provides a venue for free exchangeof views among employees, regardless of their positions andtechnical levels. The QC circle activities have been widespreadand developed at NGK do Brasil Ltda. Some employees expressed
the effects of the QC circle activities in the following manner: “TheQC circle system helps us to open our hearts and minds”; “Itencourages us to willingly acquire knowledge, do research, andcome up with an idea”; “Through the QC circle activities, we
become aware that we can gain nothing if we only complain aboutsomething”; and “These activities encourage us to look at thingsin perspective, compelling us to be actively involved in quality
control.”On the other hand, the company has made constant efforts tooptimize production, eliminate waste, and maintain better working
environments, by introducing quality control techniques, including
the promotion of continual improvement, total productive
maintenance (TPM), and the so-called “5S’s” principle, which
comprises seiri (orderliness), seiton (neatness and tidiness), seiso

QC circle

As a Core Base of NGK Spark Plug GroupNGK do Brasil Ltda. is a key base located in South America, withmuch growth potential. Except for several workers on loan fromJapan, almost all those working at the company are locally hired
employees and executives, who support the company’s business
operations. As part of our efforts to improve local staff’s motivationand technological levels, a training program is implemented inwhich they are dispatched to Japan to obtain expertise andtechniques required to continue producing world-class products,
while actually operating equipment.
As mentioned above, we not only attach importance to humanresource development, but also always keep in mind that ouremployees are constituent members of their local communities.
Previously, production in Brazil was carried out at both the Flaviano
Factory and the Cocuera Factory, but in January 2007, allproduction facilities were moved to the Cocuera Factory. Since
the site of the former Flaviano Factory was favorably located, it
was regarded as having potential for contributing to thedevelopment of the local city of Mogi. We therefore donated theformer factory site to Mogi City, in the hope of its effective use forthe city. Furthermore, NGK do Brasil Ltda. gives Christmas gifts tovarious organizations, and has contributed motorcycles to the city
police. Through such activities, NGK do Brasil Ltda. works to fulfill
its role as a community-based company.

Donation of Christmas gifts

Message from President
Ceramica e Velas de Ignicao NGK do Brasil Ltda. marked its 50th anniversary in 2009. Expressing our
gratitude to all those concerned who had supported the company over its 50-year history, we were pleased
to embark on a new chapter of the company. This year we set a new goal, aiming to incorporate eco-friendly
designs into equipment that will be introduced for the first time by theGroup, while obtaining support from the Japanese branch. In addition,
the site of the former Flaviano Factory mentioned above wassubsequently renovated as Mogi City’s general bus terminal. At the
opening ceremony held on May 1, 2010, I joined the Mayor in cutting
the ribbon, in the presence of many citizens. These are examples ofactivities we are conducting based on our corporate philosophy, which
upholds “contribution to the world.” In keeping with the philosophy, we
will continue our efforts year by year in the future.
Opening ceremony of the bus terminal

Kyohei Hayashi
President of Ceramica e
Velas de Ignicao NGK do
Brasil Ltda.

Environmental & Social Report 20108

Toward CSR Management
Corporate Philosophy / Corporate Code of Conduct
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.
Three elements constituteour corporate philosophy.

2┃ Management Policy

Corporate
Philosophy

2Management
Policy3
1

1┃ Commitment
With full use of the most suitable technology and ouraccumulated experience, we continue striving to offer
new values to the peoples of the world.

ActionGuideline

Commitment

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

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

［ Slogan ］ With established trust and confidence inside and outside the Corporate, we aim to contribute to thepeoples of the world by creating and putting at their disposal new values for the future.
(Adopted in November 1996)

Corporate Code of Conduct
At NGK Spark Plug Co., Ltd., in order to make the corporate philosophy expressed in our slogan, “With established trustand confidence inside and outside the Corporate we aim to contribute to the peoples of the world by creating and puttingat their disposal new values for the future” an everyday reality, we undertake to conduct ourselves in a socially responsible
manner in accordance with the following 10 principles.
1. Compliance

6. Social Contribution

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

As a good corporate citizen, we shall actively engage inphilanthropic activities and other activities of benefit tosociety.

2. Consumers and Customers

7. Employees

We shall develop and provide socially beneficial and safe
goods and services by making full use of the most suitable
technologies and our accumulated experience and shallstrive to earn the confidence of our consumers andcustomers, while taking necessary measures to protect
personal data and customer-related information.

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

3. Fair Dealing
We shall promote fair, transparent, free competition andsound trade. We shall also ensure that our relationships
and contacts with government agencies and politicalbodies are of a sound and proper nature.
4. Communication
Emphasizing communication not only with ourshareholders but also with members of society at large,
we shall engage in active and fair disclosure of corporate
information through ongoing corporate communications.
5. Environmental Conservation
Recognizing that a positive involvement in environmental
issues is a priority for all humanity and an essential aspectof our activities and a prerequisite for our very existence
as a company, we shall approach these issues voluntarily,
proactively, and speedily.

9

Environmental & Social Report 2010

8. Civil Society
We shall reject all contacts with organizations involved in
activities in violation of the law or accepted standards of
responsible social behavior.
9. Cultural Respect
We shall respect the cultures and the customs of local
communities where we do business and strive to manage
our activities throughout the world in such a way as topromote and contribute to the development of local
communities.
10. Ethics
Management shall exercise leadership in making the letterand spirit of the Code of Conduct integral to everyday
business practice, thoroughly implementing the Code of
Conduct throughout the Company and inculcating it
throughout the Group and its supply chain. To this end,
management shall continually improve internal systems
while striving to cultivate ethics.
(Revised November 2004)

＊1

Corporate Governance＊1
Corporate Governance

Basic Philosophy

General meeting of shareholders

We believe that it is a foundational and important
operational issue that we construct and maintain a fairand effective management system by preserving thehealth and transparency of our management to increase
the value of our corporation by meeting our completesocial responsibility.

We seek to improve and maintain internal control regarding
financial reporting, receiving oversight from auditors while
implementing effective evaluation of internal controls forfinancial reporting to conserve the trustworthiness offinancial reports based on the Internal Control Report
System*2 of the Financial Instruments and Exchange Act.
Board of auditors(Appointment /dismissal)(Cooperates mutually)

Accounting auditors(Audit)(Appointment /dismissal)

Board of directors(Appointment /dismissal)(Indication)

Various conferences
and committees
Business operating
section(Indication)

Administration director
in charge(Indication)

President
Managing directors
committee(Cooperates
mutually)(Audit)(Indication)

Internal audit dept.

(Disclosure)Management Organization
The board of directors oversees the condition of business
operations of each executive in addition to deliberating
and determining items determined by law or bylaw andother important items to the management of the business.

Refers to the process or
systems by which abusiness operator
oversees to ensure thatthe enterprise is being
appropriately and healthily
engaged in.

＊2
Internal Control Report
SystemPublicly traded companies
must publish internal
control reports preparedby oversight from achartered accountant orauditing firm eachbusiness year based on
the 2006 revision of the
Financial Instruments andExchange Act to improve
the trustworthiness offinancial reporting. The
name of the Financial
Instruments andExchange Act prior torevision was the Securities
and Exchange Act.

In order to rapidly gain understanding of situations andreact to environmental change we have created bodies
such as the managing directors committee planned by
the executives as places for active discussion.

Management Oversight Functions
Our board of auditors consists of four auditors (two ofwhom are external auditors). These auditors oversee
business operations of the executives through methods
including their presence at the meetings of the board of

directors and, as needed, at the various committees tounderstand the state of important issues, and throughaudits of major offices and subsidiaries.

Internal Audits
The internal audit department offers opinions for the
improvement or correction of points of issue as needed,
and reports to the management the results of inspections
through business auditing covering both NGK Spark PlugCo., Ltd. and our affiliates. This division also attempts tohave close cooperation with the auditors and accounting
auditors by exchanging information such as auditing
principles, auditing plans, and auditing implementation
status.

＊3

＊3
CSR

CSR Activities
The NGK Spark Plug Group aims to grow as an enterprisethat contributes to society and has the trust of all its
stakeholders. To realize this goal, we strive to strengthen
our CSR management by promoting environmental
conservation, complying with laws and regulations, andestablishing corporate ethics, as well as engaging insocial contribution and risk management. In April 2010,
we set up the CSR Promotion Department to systematicallypromote all CSR activities, and make them known toeveryone involved in the Group.

Corporate Social
Responsibility●Steps towards CSR
Nov. 1996
Feb. 1998
Apr. 1998
Feb. 2003
Nov. 2004
Apr. 2005
Aug. 2005
Jan. 2007
Feb. 2007
Sep. 2008
Apr. 2009
Apr. 2010

Adopted “Corporate Philosophy”
Adopted “Corporate Code of Conduct”
Established Ethical Committee
Adopted “Corporate Ethics Helpline System Operation Guidelines”
Revised “Corporate Code of Conduct”
Published “Code of Conduct Guidebook”
Published “Guidelines on the Handling of Personal Information”
Established Export Control Committee
Adopted “Export Management Regulations”
Published “Confidentiality Management Guidelines”
Adopted “Confidentiality Management Regulations”
Established Internal Audit Department
Determined our “Corporate Protection Manual”
Inaugurated CSR Promotion Department

Environmental & Social Report 201010

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

＊1Compliance

ComplianceThis refers to compliancewith laws and regulations;the fair operation of abusiness in accordancewith the rules governing it.

We work to increase employee understanding of compliance to act in sound social judgment not forgetting that ourenterprise is also a member of society.

＊1

Education and Awareness-raising
As part of our compliance education efforts, we deliver
onsite lectures regarding business and legal affairs, upon
the request of each workplace. These lectures aredesigned to encourage employees to consider why
written contracts should be signed, or to check if there is
any illegality when concluding a contract. Through suchprocesses, employees can become aware of theimportance of business and legal affairs and take aninterest in them. This will result in reducing not only risks
to individual employees, but also risks to their company.
We also hold compliance lectures during the training

programs for new employees and level-specific training
programs for newly appointed management. Training for
employees shortly after joining the company or employees
promoted to higher levels is designed to include thecontent required for their respective positions. Our
company also promotes activities to raise complianceawareness regarding export controls and trade-related
business. The Export Control Committee organizes
seminars and Internal Auditor training sessions for therespective divisions of NGK Spark Plug Co., Ltd. and its
subsidiaries.

Corporate Ethics Helpline＊2
Unfair Competition
Prevention Act
This law is intended toensure fair competition
between business
operators. It prohibits
activities such as
improper gathering ofconfidential information,and the improper use or
publication thereof, as
well as preserving thetrust and confidentiality ofbusinesses.

＊3
Act on the Protection of
Personal Information
While considering theusefulness of personal
information this law seeks
to preserve theindividual’s profit rights. It
regulates such things as
passing on personal
information without
notifying the person.

11

We have a corporate ethics helpline as an internal
communications system to resolve issues related tocorporate ethics early and prevent illegal activities. In
addition to places of contact within and outside thecompany for the provision of information or counseling for
employees, etc., that become aware of illegal activities

W

that have taken place or may take place, we have ensured
that the environment makes it easy to discuss issues bymaking it clear that the identity of any informant is
protected. We also sincerely work to support individual
themes related to legal or ethical issues.

Security Control / Information security

With the advance of legal systems such as the Unfair
Competition Prevention Act*2 and the Act on theProtection of Personal Information*3, we must work hardto prevent any leaks of private information. We endeavor
to appropriately handle private information, establishingsecurity control regulations to maintain and develop thehealth of our business, thoroughly managing issues
related to confidential information about our company,
our customers, and our suppliers. Our privacy policy isavailable on our website.

Environmental & Social Report 2010

Privacy Policy
http://www.ngkntk.co.jp/english/privacy.html

Export Controls
In order to preserve international peace and safety Japanhas placed legal regulations on trade that would assist the
expansion or outbreak of conflicts. Recent years inparticular have seen progressive strengthening of
regulations domestically and internationally. In August
2005 NGK Spark Plug Co., Ltd. established an export
controls committee to ensure thorough compliance with
export regulations by enacting export controls.
We were recognized as an Authorized Exporter in June2008 based on the Authorized Exporter Declaration

System*1 after verification of our efforts establishingsecurity management and compliance systems.
We recognize ourselves as an enterprise with a highexport ratio and so we strive to maintain export
management in compliance with laws while effectively
operating our export business.

Intellectual Property
To protect its existing and newly developed products,
NGK Spark Plug Co., Ltd. takes measures to actively
acquire intellectual property rights. We investigate andconfirm third party intellectual property rights in all
production processes from the early stages ofdevelopment to mass production, to avoid the risk of

infringing the intellectual property rights of third parties orviolating laws and ordinances. Furthermore, level-specifictraining programs on intellectual property rights are held,
mainly for engineers and technicians of our company inorder to raise employees’ awareness.

＊1
Authorized Exporter
Declaration System
Under this system,
Customs recognizes
exporters with exceptional
compliance as Authorized
Exporters and gives themfavorable treatment. This
is intended to speed up
paperwork at Customs
and strengthen security
measures. Receiving
recognition as an
Authorized Exporter
makes a definite
improvement in speed
passing through Customs
which we expect will haveeffects including reduced
logistics costs and leadtime.

Risk Management
We face many risks including natural disaster, accidents, terrorism, and the spread of new contagious diseases. We havetaken steps to ensure the smooth continuity of our operations should some unfortunate circumstance occur.

Preparing Response to Large-scale Earthquakes
The NGK Spark Plug Group’s operation are primarily
located in Aichi Prefecture at the center of the Tokai
region, which has been designated as a strategic
earthquake disaster prevention region in relation to theforeseen Tokai Earthquake*2. We have therefore createdan earthquake disaster prevention strategy manual settingout measures to protect the safety of people’s lives, toavoid damage to facilities, to prevent secondary disaster,and to enact rapid restoration. We also operated apersonal safety verification system to rapidly gather
information related to the safety of employees.

＊2Strategic Earthquake
Disaster Prevention
Region in Relation to theForeseen Tokai
Earthquake

Drill by the in-house fire-fighting unit

Preparing a Response to New Flu Infections
A new form of the influenza A (H1N1) virus broke out atthe beginning of 2009 and ran rampant in various
countries around the world.
Our company was quick to establish an influenza
pandemic task force, to gather information on a real-timebasis and initiate a rapid initial response by such means
as sending flu masks to all sites in overseas areas where
infections were widespread.
Subsequently, the flu epidemic spread in Japan. However,
the entire NGK Spark Plug Group worked in concert toprevent infection and to mitigate the risk of infection
spread by providing disinfectant at workplaces and taking
measures to curb group infection. As a result, we wereable to minimize the impact.
Recognizing the importance of our response to newcontagious diseases, we have made ready plans tominimize the effects and prevent the spread of contagion
when it occurs, determining our strategy on the basis ofseverity.

Because there is thepossibility of major
damage from anearthquake in the eventthat a large-scale
earthquake occurs, this isa designated region
requiring stronger
measures related toearthquake disasterprevention. This region
includes Nagoya, Ise,
Nakatsugawa, and Iijima.

Environmental & Social Report 201012

2 Consumers and Customers
We shall develop and provide socially beneficial and safe goods and services by making fulluse of the most suitable technologies and our accumulated experience and shall strive toearn the confidence of our consumers and customers, while taking necessary measures toprotect personal data and customer-related information.
● The corporate philosophy (commitment) of NGK Spark Plug Group declares, “With full use of the most suitable
technology and our accumulated experience, we continue striving to offer new values to the peoples of the world”.
● To put this philosophy into practice, we will develop and manufacture innovative products to satisfy the demandsof various customers and achieve our mission of providing products with the same level of safety and quality fromany production site in the world.
● From this fundamental standpoint, we will provide accurate and appropriate information on our products and services
and handle and protect individual data and customer data related to our business activities in a proper manner.

Basic Policy
General customers have taken an increasingly critical view of product quality. In terms of CSR,
it is taken for granted that companies are obliged to listen to customer voices, address quality
problems, and take swift and appropriate action to resolve them.
We are committed to providing our customers with safe and reliable products that will notcause trouble to customers but will afford them even greater satisfaction. To this end, ourcompany inspects whether there are any problems with our product quality and our quality
assurance system from the viewpoint of customers. We will make companywide efforts toachieve continuous quality improvement.
Junichi Kagawa
Senior Managing Director
Chief Quality Officer

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

●Customer First ･･･････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････
Our customers determine the quality of our products and services. In order to provide products and services thatsatisfy our customers, we strive to understand their continuously changing needs from their point of view, and makeproposals exceeding their expectations according to the philosophy of “quality first”.
●Total Involvement ･･･････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････････
People are fundamental elements of a company and the most important management resource. While respecting
the individuality of employees and enhancing each one’s ability, autonomy and creativity, we pool our abilities tosolve problems and overcome the tasks we face fully engaging our individual roles with a shared understanding of
the problem space.
●Continuous Improvement ･･･････････････････････････････････････････････････････････････････････････････････････････････････････････････････････
The development of a company requires swift and suitable responses to the changing social environment, market
conditions and customer demands. For this purpose, we are continuously improving the effectiveness and efficiencyof all management resources including our organization, system, processes, products and services.

Since its establishment in 1936, NGK Spark Plug Co.,
Ltd. has maintained the “Nittoku quality mind,” which
represents our basic quality concept. This mind isreflected in the corporate quality policy revised in 2006.
In line with our corporate quality policy, each division has
established an appropriate quality management system in
conformity with the ISO9000 series and ISO/TS16949
standards, and has implemented quality assurance
activities.

13

Environmental & Social Report 2010

In addition, we set up the Quality Committee and the
Quality Control Division to promote the establishment of asystem to oversee and control product quality throughout
the company, by strengthening coordination with thequality assurance sections of respective businessdivisions. Under this system, we identify quality risks froma companywide perspective and promote activities toaddress and prevent such risks, so as to offer safe andreliable products that satisfy our customers.

Toward Quality Improvement
NGK Spark Plug Co., Ltd. is committed to quality management through the promotion of total quality management(TQM*1 ) activities.
● Top-down activities embodying company management through policy management.
● Bottom-up activities for workplace activation and human resource development through small-group activities for
quality and business improvement and other activities.
● Business standardization and maintenance management as well as improvement activities determined at each
workplace by daily management.
■NQC Activities (Small Group Activities)
We promote what we call “NQC Activities,” which refer to
QC circle activities*2 aimed at developing humanresources and improving workplace capabilities, bycontinuously addressing various problems and issues.
During “Quality Month” every November, the results of
NQC activities are announced at the central presentation
meeting, and the President Award is granted in recognitionof best practices. Commendation is also given to small
groups implementing excellent NQC activities in daily
operations. By encouraging employees to participate intraining programs outside the company and in presentation
meetings, we enhance their motivation and encourage
small group
activities.

NQC activity central presentation meeting

W■Education / Training
We provide QC education and training by establishingeducation and training programs related to quality control,
control technology processes, QC circle activities, quality
management systems, measurement management, etc.
To ensure that knowledge gained through these programs
can be applied in the workplace, we also offer practicalguidance and support to our employees. As part of ouractivities to enhance quality awareness, motivation,
education and training, we hold such events as process
patrol by the President, quality exhibitions and quality
lectures.

Process patrol by the
President＊1
TQM
Total Quality
Management is anoperational method andmanagement techniquethat contributes to theimprovement ofoperational quality in anenterprise.

＊2
QC Circle Activities
QC stands for quality
control. Small groups
are formed within theworkplace with the goalof autonomous handlingof issues including
safety measures,
reduction of faulty
product, andimprovement andquality control ofproduction.

Quality exhibition

Communication regarding Products and Services

We consider that it is our responsibility to provide
customers with correct and appropriate information
regarding our products and services. To fulfill this
responsibility, we have established various systems.
■Plug Studio
Since the product number and the number of spark plugs
to be used differ according to the type of automobile, weoffer a system for searching the applicable productnumber on the website. The website also posts information
on exhibition events and motor sports.

Plug Studio
http://www.ngk-sparkplugs.jp/english/index.html■Responding to Inquiries and Complaints
Inquiries and complaints from customers about our
products are first accepted by our sales division. Then thequality assurance division works together with thetechnical division to quickly resolve these inquiries andcomplaints.
NGK Spark Plug Co., Ltd.

Qualityassurance
division

Inquiry/
complaint
Sales
division

Customer
Reply

Technical
division

Important Notice Released in Japan
Regarding Room Type Humidity/Temperature Detectors and Room Type Humidity Detectors
We have found that some of the Room Type Humidity/Temperature Detectors and the Room Type Humidity
Detectors which were sold from 1987 to 2007 may cause thermal damage to equipment. We will therefore takepreventive measures free of charge for affected users in the construction and air-conditioning industries.
※NGK Spark Plug Co., Ltd. has received no accident reports regarding products sold by the Company (as of the end of June, 2010).
However, several accidents have been reported with regard to similar products sold by other companies. Upon hearing suchreports, we have decided to take protective measures to ensure our customers’ safety.

Environmental & Social Report 201014

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

Procurement Policy
We aim to realize globally optimal procurement in keepingwith our quality-oriented principle. To this end, the material
division strives to strengthen cooperation with suppliers
as well as technical and production divisions to deepen
understanding of mutual needs. We procure materials
and parts based on the following principles:W• With a foundation of fair, transparent, and freecompetition, we trade rationally.
• We engage in business complying to the related laws,
domestically and internationally.
• By procuring better (quality), cheaper (cost), faster(deadline), and more friendly to the earth (environment),
we contribute to the benefit of company.

With Our Suppliers

It is indispensable to establish healthy partnerships with our suppliers in order to procure better raw materials and parts ina more timely and stable manner. We have improved mutual trust with our suppliers through activities aimed at achieving
mutual prosperity by working hard together, with a sense of tension maintained through the supply chain.

＊1
TPM
Total Productive
Maintenance is a method
for establishing a system
and mechanism tocontinuously carry out
human resource
development and work/
equipment improvements,
in order to build up a
corporate structure thatcan ensure sustainableprofits.

＊2
Seven QC Tools
QC stands for quality
control. The Seven QC
Tools are graphs, checksheets and other items
used for quality control.
There is also another setof items called “NewSeven QC Tools.”

W eb
Green purchasing
requirements
Number of vehicles
owned

15

■Sharing Our Corporate Policy
We hold a corporate policy seminar inviting our main
suppliers, offering them an opportunity to deepen theirunderstanding of the present situation of our company
and our goals.
At the seminar held in 2009, explanation was given about
our corporate policy including our business performanceand reforms, as well as a major structural change. We
also showed the direction to be taken by our company,
and reaffirmed that our company would work with its
suppliers to overcome the difficult circumstances. In
addition, we sought the cooperation of our suppliers intaking responsible action for appropriate control ofenvironmentally hazardous substances, quality
improvement and cost
reduction, and further
promotion of CSR
activities.

Corporate policy seminar■Revision of the Basic Contract Document
Recently we have seen significant changes in social
circumstances, laws and regulations, social responsibilities,
and other circumstances surrounding enterprises. Suchchanges require enterprises to implement CSR
procurement. In response, in March 2010 we completely
revised the basic contract document for the first time in
10 years, with the objective of implementing CSR
procurement through the supply chain.

Environmental & Social Report 2010

■Activities to Support Suppliers’ Staff Education
We believe that developing the human resources of our
suppliers will help improve our quality and costcompetitiveness in the future. We therefore carry out
activities to support suppliers in improving their staff
members’ technical skills by holding lectures on TPM*1
and the Seven QC Tools*2 for them.

Activities to support
suppliers’ staff education■Green Procurement and Green Purchasing
We promote green procurement by establishing a green
supplier system, in order to reduce environmental burdens
through the supply chain.
⇒ See page 27.
In selecting office supplies andequipment, we actively employ
products that are kind to theenvironment (Eco-products).

Green Procurement
Guidelines (In-house use)

4 Communication
Emphasizing communication not only with our shareholders but also with members of society
at large, we shall engage in active and fair disclosure of corporate information throughongoing corporate communications.
● To enhance our credibility in Japan and overseas, we seek to practice “transparent management” by disclosing
information on our business and financial performance as well as other everyday actions, including environmental
activities, via our website and other media.
● In order to respond to the trust of our stakeholders in the capital market, such as our shareholders and investors,
we endeavor to increase our market value and provide information on our management, including our growthstrategy, through IR activities in a timely and proper way.
● We are aware of our social responsibility not only to our shareholders and investors but to a wide range of otherstakeholders*1 such as consumers, customers, employees, suppliers and local residents, and will therefore deepen
mutual understanding by strengthening our PR and communication channels and promoting interactive
communication.

W＊1
Stakeholders

Disclosure of Information

Shareholder, customer,
employee, local resident
and other concerned
parties.

In order to have timely and appropriate disclosure offinancial information, we supply information using various
tools in addition to meeting the legal disclosure standards.
In particular we attempt to sufficiently publish on our
website information that a broad range of our stakeholders
can view.

Investor Relations
http://www.ngkntk.co.jp/english/ir/index.html

To All Our Investors(Japanese only)

Annual Report

Tokyo Motor Show

Financial Reports

We additionally publish corporate information andenvironment and social reports to have reader better
understand the NGK Spark Plug Co., Ltd. and ouractivities as part of our efforts at information disclosure.
We endeavor to communicate information about ourlatest technology and products through booths at various
exhibitions.

General Meeting of Shareholders
Each June, we hold our Regular General Meeting of
Shareholders, at which we explain the businessdevelopments of the previous year to our shareholders,
who then vote on
the matters to beresolved. The stock
distribution of NGK
Spark Plug Co.,
Ltd. is shown in thepie-chart on theright.
Regular General Meeting of Shareholders●Stock Distribution
Shareholders by Category

Ratio of Held Stock
20.24％

Total:
15,588
investors

27.47％

Total:
229,544,820
shares
16.67％

95.45％

28.96％

Financial Institutions
Shareholder Relationships Connectedto the Trust Business
Financial Commodity Traders(Previously Securities Companies)

0.29％
6.37％
Other Domestic Organizations
Foreign Organizations / Investors
Individuals, Other(as of March 2010)

IR Activities*2＊2
IR Activities
Investor Relations involves
communicating detailed
information about ourmanagement, financesand results.

The NGK Spark Plug Group provides business informationsuch as business content, performance and stock prices
to shareholders and investors, and also holds IR events todirectly answer any enquiries. In July 2009, we participatedin the Nagoya Stock Exchange IR Expo, and received
enthusiastic comments and questions from personal
investors. We also periodically hold presentations foranalysts and institutional investors in Japan, and give
explanations to overseas investors as well.
Nagoya Stock Exchange IR Expo

Environmental & Social Report 201016

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

Environmental Declaration

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

Item

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

Environmental
Management
SystemConstruction of total management system(QMS, EMS, OSHMS)Management
Environmental
operations

Centralization of environmental management
data control
Promotion of CSR management

Environmental accounting Integration of environmental accounting and management accounting

Environmental Policy
Management

Prevention of
global warming

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

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

Factory /OfficeEffective use ofresources

EPR (extended producer responsibility)
operations
Reduction of waste emissions
Reduced environmental load due to waste

Factory /OfficeProducts

Communication

We will remain constantly aware of the need forenvironmental harmony, working to prevent air,earth and water pollution, use energy andresources more effectively, and reduce wastematerials.
We will work towards the development, design,
procurement, manufacture, sale, distribution anddisposal of environmentally friendly products.

Hazardous
substances

Products

We will promote communication with stakeholders
through clear disclosure of information. We will
also contribute not only to local communities but tothe wider society through consideration for thenatural environment as well as participation andsupport for environmental conservation activities.

Mind

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

17

Environmental & Social Report 2010

Control of environmental pollutants

Eco-design

Eco-friendly design and product creationGreen
procurement

Green supplier system of identification andregistration of all our business associates

Distribution

Construction of efficient distribution systems

Eco-business

Development of eco-businesses

Disclosure

Communication

Total 36 tons of PRTR*1 substances released(80% down from 2002)

Community

Disclosure of clear environmental data
Continuous issue of CSR reports
Support for and participation in NGO and NPO activities

Natural environment Promotion of nature conservation and social contribution

Mind

Education andinstruction

Thorough education of eco-minded
employees
Reflection of environmental performance inbusiness evaluation

Regarding Targets for Carbon Dioxide, Waste, and Water
Scope ofenvironmental
reporting

NGK Spark Plug Group

Fiscal 2010 is the final year of the NGK Spark Plug Group Eco Vision
2010, which set our long-term targets stipulated in fiscal 2004.
As for carbon dioxide, in fiscal 2009 we started to set our reduction
target in terms of total emission volume. We also reviewed andaltered our target management mechanism to enable each division
to carefully manage their CO2 emissions on a total volume basis
as well as on a per-unit basis.
Regarding waste and water, since fiscal 2006 we have continued
setting our target values as “reduction volumes,” i.e., the volumesof reduction achieved through the implementation of energy
saving measures and so on. Since we can evaluate how far wehave achieved the targets without being greatly affected byvariations in production, we are better able to track the effects ofour energy- and resource-saving activities. This encourages us tofurther promote efforts to reduce waste emissions and water
consumption.

・NGK Spark Plug Co., Ltd. (excluding the sales offices
and sales branch offices)
・9 consolidated domestic subsidiaries and 1 affiliate.

NGK Spark Plug Co., Ltd.

Affiliates

Head Office andHead Office Factory

Nittoku Alfa Service Co., Ltd.
Nichiwa Kiki Co., Ltd.

Komaki Factory
Takenami Factory

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

NTK Ceramic Co., Ltd.
Nittoku Seisakusho Co., Ltd.

Tono Ceramic Co., Ltd.

Miyanojo Factory
Ise Factory

Kamioka Ceramic Co., Ltd.

Nansei Ceramic Co., Ltd.

Tokai Taima Kogu Co., Ltd.

: Region (joint acquisition of ISO14001)
Factories and companies in blue :included in the consolidated environmental accounting（1）The three subsidiaries that produce ceramic IC packages (Iijima CeramicCo., Ltd., Nakatsugawa Ceramic Co., Ltd., and Kani Ceramic Co., Ltd.)
were merged into NTK Ceramic Co., Ltd., in October 2009.
（2）Tokai Taima Kogu Co., Ltd. is an equity method affiliate.

Eco Vision 2010
Achieved : ○Fiscal 2009 targets

Results Page

Not achieved : ×

Fiscal 2010 targets

―

―

―

―

Research sufficient environmental education in domestic business sites○―

Implement sufficient environmental education in domestic business sites

Research the effectiveness of combined audits

×―Research integrating QMS and EMS○―

Promote integrating EMS and QMS documents

―

―

―

Improve environmental impact assessment systems

Work to revise and improvement the collection and managerial
methods of environmental data for operating organizations○―

Work to revise and improvement the collection and managerial
methods of environmental data for operating organizations

―

―

―

Improve significant environmental aspects (emergency situations)and prepare for emergency situations [Zero environmental accidents]

Use environmental accounting as an evaluation item for our methods

×

―

―

―

＊6

＊6

＊6

Total group emissions of carbon dioxide under 169,000
tons

×

23

Total group emissions of carbon dioxide
under 176,000 tons

Reduction targets : NGK Spark Plug : 11,527 m3
Affiliated companies : 874 m3○

26Group’s water reduction target: 9,755 m3

Establish methods for recycling used products

×―

Reduction targets : NGK Spark Plug : 228 tons
Affiliated companies : 26 tons○

25Group’s waste reduction target: 794 tons

Incorporate a low environmental burdens disposal method○―

Incorporate a low environmental burdens disposal method

Reduce VOC*2 released○

26

Promote control (recovery, etc.) of VOC released

Carry out uniform control with MSDS*3

○

―

―

＊7

―

＊7

The source ofphotochemical oxidants
and suspended
particulate that pollute theatmosphere.

Research environmental burden management systems○―

Offer the addition of LCA*4 methods for product assessment○―

500 companies (expand toward equipment, tool, andauxiliary material manufacturers)

○

27

―

Transport efficiently (efficient load ratio and conveyancecount)○

23

Efficiently transport products and waste(Reduce volume of cargo shipment by 1% from previous year)

Support internal ELV* material analysis and establish othergreen procurement related material analysis methods.

○

28

―

＊7

Differentiate web and printed matter with regards to information disclosure

○

―

―

＊7

Issue Environmental & Social Report

○

―

―

＊7

Support and participate in NGO and NPO activities

×

―

―

＊6

Continue to participate in community environmental events, etc.

○

30

Continue to participate in community environmental events, etc.

Create a system for implementing environmental
education for all employees○

21

Continue to implement environmental education

Research a system to evaluate the level of contributionof environmental activities in the work of employees×―Introduce LCA methods into the product assessment
＊7

5

―

System of tracking volumeof emissions to theenvironment of designatedchemical substances andthe reporting thereof.

＊2
VOC(Volatile Organic
Compounds)

＊6

―

＊1
PRTR
(Pollutant ReleaseandTransfer Register)＊3
MSDS(Material Safety Data
Sheet)
This sheet contains
information about the levelof danger of a chemical
substance andprecautions for its
handling.

＊4
LCA(Life Cycle
Assessment)
A method of assessing
the total environmental
burden including the
manufacturing of a
product, its use, and its
disposal.

＊5
ELV(End of Life Vehicle)
Directive
Effected in the EU in
2002; regulates
designated regulated
substances andrecyclable ratio of a usedautomobile.

＊6＊6 : We set no specific targets for FY 2010, but will continue and enhance our efforts within the scheme of our next-term Eco Vision that covers FY 2011 and onwards.
＊7 : As of the end of FY 2009, we have achieved all targets that were set in our Eco Vision 2010. Therefore, we did not set any specific targets for FY 2010.
Environmental & Social Report 201018

5 ■ Environmental Conservation ＊ Environmental Load from Business Activities

W

W eb
Material balance ofdomestic business sites

Environmental Load from Business Activities

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

Input

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

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

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

Non-consolidated

Purchased electricity

218.40 GWh
12.83million m3

Gas
LPG

Group
330.21 GWh
14.39million m3

3,700 tons

8,312 tons

Heavy oil A

36 kL

36 kL

Gasoline

592 kL622 kL

Diesel oil

54 kL

135 kLClassiﬁcation

Non-consolidated

Group

2,491 tons

3,262 tons

Paper

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

Non-consolidated

Group

Plastic materials

326 tons

2,419 tons

Chemical materials

4,976 tons

10,053 tons

Oils

352 tons

417 tons

Other materials

750 tons

1,049 tons

3,314 tons

7,236 tons

Other gases

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

Factors used to
calculate CO2
Japan Auto Parts
Industries Association(2001)
CO2 conversion factor
Purchased 0.33kg-CO2/kWhelectricity

Group

Classiﬁcation

Non-consolidated

Group751,864 m3

938,113 m3

Ceramic materials

─12,720 tons

Well water

570,580 m3

850,653 m3

Metal materials

─21,897 tons

Recycled water

887,816 m3

1,072,367 m3

Reused materials

9,046 tons

11,851 tons

OutputAtmosphereSOx : Emissions from incineration facilities, etc.

CO2 from energy consumption

Classiﬁcation Non-consolidated

Offices, factories, testing, transportation: Emission of CO2 generated by the use of electricity,gas, and so on

SOx

Wrapping/packaging materials

Gas

2.558kg-CO2/m3

Classiﬁcation Non-consolidated

3.007kg-CO2/kg

Oﬃces and factories 116,078 tons 170,853 tons

Guidelines from theordinance regarding
calculation of emission
volume of greenhouse gas
emissions resulting fromthe business activities ofdesignated emitters
CO2 conversion factor
Gasoline 2.32kg-CO2/L
Diesel oil 2.62kg-CO2/L

TestingGroup

1,313 tons

1,313 tons

231 tons

512 tons

Transportation

Wastewater

Classiﬁcation Non-consolidated
Evaporation, Other

Group

271,702 m3

487,210 m3

Waste
Recycling : Quantity of matter that is consigned tobe recycled (including items sold)Buried or incineration : Quantity consigned to beburied or incinerated
Classiﬁcation Non-consolidated
Recycling
Buried or incineration

0 tonsGroup

12,839 tons

16,026 tons

98 tons

111 tonsGroup
0 tonsPlastics, Paper, cardboard : Quantity used by eachshipping department (estimated)
Classiﬁcation Non-consolidated

Group

Plastics

478 tons

735 tons

Paper

1,557 tons

1,782 tons

892 tons

1,412 tons

Cardboard

Wastewater : Sewage, Quantity of water discharged
to the public water area
Evaporation, Other : Volume other than wastewater(e.g. evaporated coolant)
Wastewater 1,050,742 m3 1,301,556 m3

・ Not including energy
consumption and CO2
emissions due totransportation
outsourcing.
・ For some operationsites that have no
installations to measure
the volume of water
discharged, thewastewater volume istaken as the combined
volume of tap water andwell water.

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

Non-consolidated

LPG

Heavy oil A 2.712kg-CO2/L

Main raw materials

PRTR law-regulated substances
Atmosphere, water area
: Quantity of matter released to atmosphere and thewater area, concerning which notification is madein each region
Classiﬁcation Non-consolidated

Group

Atmosphere

6.3 tons

130.4 tons

Water area

0.2 tons

0.2 tons

Product shipment
Product: Quantity of shipped products as consigner ＊1
Classiﬁcation Non-consolidated
Product

─Group
42,858 tons

＊1 The counting method was changed in fiscal 2006.

19

Environmental & Social Report 2010

＊ Management

Environmental Management
Management System
In order to advance environmental conservation activities
in a systematic and effective manner, throughout theGroup we have established an Environmental
Management System and fulfill the activities thereof withfull participation. With our shared environmental policy inevery part of the NGK Spark Plug Group, each divisionand region sets goals, implements activities to meet themand evaluates progress and results. Our ongoing
improvement is also connected to review and verificationof issues and promotion of activities. Each year we hostan environmental committee meeting in each region fourtimes, and a central environment committee meeting
twice chaired by the Chief Environment Administrator, thehighest level of management for the environment.

NGK
Spark Plug Group

Action
Review by the chief
executives
Central Environment
Committee

Continual
improvement

Check
Environmental audit

Plan
ActionRegional
Environment
Committee

Check
Internal
environmental
audit

Environmental policyGroup-wide
environmental
objectives& targetsContinual
improvement

Do

Plan

Regional environmental
objectives & targets
Regional environmental
plans

Do

Each region

Implementation& operations

Environmental Activity Promotion Organization
President
Chief Environment Administrator(Central Environment
Committee Chairman)

Central Environment
Committee

Central Waste Sub-committee

Environment Administrators
Internal
Environment Auditor

Central Energy Saving
Expart-committee

Environmental
ISO Bureau

Environment Committee<Each Region>

Chemical SubstanceSub-committee

Education forinternal environmental auditors

Green Procurement
Sub-committee
Energy Saving Expert-committee
Waste Sub-committee-For the definition of each region, refer to p.18

Central Environment Committee
MeetingW

W eb

Conditions for the Establishment of a System

NGK Spark Plug Group has integrated ISO14001*1
certification across the Group.In fiscal 2009, the scope of
the integrated certification was expanded to include theSatsuma Factory of Nittoku Seisakusho Co., Ltd. andNTK Ceramic Co., Ltd., which was established in
October.
As for overseas subsidiaries/affiliates, 11 of 12 production
companies and 2 of 11 sales companies have obtained
ISO 14001 certification as of the end of March 2010. Thismeans that 97% of our global workforce has been ISO
14001-certified.

ISO14001 certified
locations●ISO14001 Certified Companies
Companies
NGK Spark Plug Co., Ltd.

1

Affiliated companies

10

Overseas consolidated companies

13＊1
ISO14001
An international standard
related to environmental
management systems.
Business locations thathave established systems
in accordance with thestandard can receive
certification from externalorganizations.

ISO External Auditing

Environmental & Social Report 201020

5 ■ Environmental Conservation ＊ Management

Environmental Management
W

W eb
Numbers of official
qualification holders andinternal auditors

Environmental Education

In order to promote environmental conservation activities
with full participation, the NGK Spark Plug Group is
working to have sufficient environmental education.
Based on environmental education in the workplace, we
work to improve the knowledge and understanding of
employees through efforts such as tiered education fromnew employee training to training for newly appointed
management, making our environmental policies widely
known by distribution of environment cards to all
employees, and supplying environmental information via

our company newsletter or internal electronic
announcement system. We also implement an annual
Health, Safety and Environment Conference and we
conduct lectures about the environment, or health andsafety, and panel exhibitions. In fiscal 2009, the Komaki
Factory worked on environmental education activities
with the theme “See, Feel and Think about ECO.” These
activities included holding panel exhibitions as well as
various hands-on exhibitions of LED lighting,thermography, etc.

Environment card

Health, Safety, and Environment Conference

W eb
Data on atmosphere,
water quality, noise andvibration＊1
Accounting
standards relating toasset retirement
obligations
It became mandatory that
items required by law tobe removed whenbuildings or other tangible
fixed assets are disposedof, be accounted for as
liabilities. Examples
include expenses for thetreatment of asbestos, soil
surveys, anddecontamination.

＊2
Soil Contamination
Countermeasures Act
The purpose of this Act is
to apprehend situations ofsoil contamination and toprevent harmful effects onhuman health by suchcontamination. In April
2010, the Act underwent
a substantial revision,
involving the addition ofprovisions regarding theapprehension of situations
and actions to be taken,
requiring notification to begiven when the characterof land of 3,000 m2 or
more in area is about tobe changed.

＊3
PCB(Poly ChlorinatedBiphenyls)
Widely used as an
insulating oil due to good
insulation properties andchemical stability,
however PCBs are highly
toxic to people and arepresently prohibited fromproduction and use.

W

Environmental Risk Management

Risks including environmental accidents, pollution and the violation of legal regulations are all present when engaged inbusiness activities. NGK Spark Plug Group has identified these kinds of risks and works to reduce risk and actively preventthese issues.
■Soil Survey
We have clarified our soil surveying method, auditing
period, and evaluation standards to prevent soil orunderground water pollution resulting from our businessactivities. In fiscal 2009, respective factories and affiliates
investigated the history of use of designated hazardous
substances, took measures to meet the accounting
standards relating to asset retirement obligations*1, andmade preparation to comply with the revised Soil
Contamination Countermeasures Act*2 coming into effectin April 2010.
■PCB*3 Management
The Head Office Factory, Komaki Factory and Nittoku
Seisakusho, store waste materials containing PCBs. We
carry out stringent control of such materials, until the daythat they can be properly disposed of.
■On-site Confirmation of Waste Material Treatment
To ensure that waste material consigned to be treated bya processing contractor specified by the Group was being
appropriately treated, we carry out annual on-site checks
at the interim treatment plant and also at the final disposalsite. In 2009, we visited 35 companies and were satisfied
that disposal was taking place without problems.

＊4
Asbestos
A mineral fabric that has
been widely used as an
insulator. It is dangerous
as inhalation may result inlung cancer ormesothelioma tumors.

21

Environmental & Social Report 2010

■Chemical Leak Prevention
The NGK Spark Plug Group manufacturing processes
include processes that use chemicals that are toxic. To
prevent pollution of soil or water from chemical leaks, weprevent leaks by double layering storage tanks and moved
pipes above ground to identify leaks early.
■Asbestos*4 Response
To prevent harm from asbestos we have taken steps for
its appropriate disposal. The removal of asbestos fromfacilities has been completed. However, some asbestos
still remains as an insulator in buildings, and we continue
to take appropriate control measures.
■Drills for Emergency Situations
In order to prepare for emergency situations such as
unforeseen accidents, we implement regular drills toprevent the spread of pollution beyond our company. We
have projected accidents for each department and areprepared for any scenario.

A Drill for an Emergency Situation

Legal Violations and Complaints
In order to ensure compliance with environmental
regulation, the NGK Spark Plug Group is working toprevent violations of legal regulations and complaints
through efforts as part of our management system. We
have also endeavored to prevent environmental pollution
by setting more rigorous standards than those requiredby law, joining in cooperation with local governments andother such initiatives.
In fiscal 2009, there were no cases of violating legal
regulations such as deviation from regulated limits,although we have had four cases of complaints. In eachcomplaint case, we appropriately responded andattempted to prevent a reoccurrence.

■NGK Spark Plug Co., Ltd.

■Affiliates(cases)(cases)

2007

2008

2009

2007

2008

2009

Violations

0

0

0

Violations

2

1

0

Complaints

2

8

2

Complaints

0

1

2

Response to Complaints and Violations in Fiscal 2009

Response to Complaints and Violations in Fiscal 2009

The Komaki Factory received requirements to takemeasures against dust spreading from the parking lot,and damage caused by bird droppings from the electric
wires that prevent television interference. We addressed
the former problem by sprinkling the parking lot with waterto prevent dust accumulation. As for the latter problem,
measures were taken to prevent birds from landing or
perching on the electric wires.

1. Nittoku Seisakusho Co., Ltd. received a requirement tocontrol noise. Among the countermeasures taken were
replacing equipment parts and ensuring that thesoundproof doors were always closed during nighttime.
2. Tono Ceramic Co., Ltd. received a requirement totake measures against an offensive odor problem.
Together with the government agency concerned, thecompany investigated the cause of the odor. Although
the cause could not be identified, the company
voluntarily carried out chimney improvement work toprevent the spread of smoke and the offensive odor.
Through such efforts, we continue to maintain andmanage communication with local communities.

W

W eb

Environmental Accounting

In order to more efficiently promote environmental
management, it is important to obtain a quantitative graspof the cost and effectiveness of environmental protection.
Since 1999, NGK Spark Plug Co., Ltd. has been carryingout environmental accounting, and in 2003 its scope wasincreased to cover the entire Group.
Environmental preservation costs for fiscal 2009 totaled
6,110 million yen on a non-consolidated basis, and 6,682
million yen for the Group. This was a decrease of 34%
compared to fiscal 2008, due to business downsizing.
Also, the effect of environment conservation measureswas 284 million yen on a non-consolidated basis.

● Environment al Preservation Costs and Effect ofEnvironment Conservation Measures(non-consolidated)● Environmental Preservation Costs (group-wide)※Not including Nittoku Alpha Service

Cost (million yen)
Expenses

15,000Investment

Eﬀect (million yen)
Eﬀect

600

Calculation Concept
To calculate environmental preservation costs, items
are categorized in conformity with the Guidelines
issued by the Ministry of Environment of Japan. The
costs are also proportionately divided according to
the rules of the NGK Spark Plug Group, which were
established based on the direct investment andexpenses actually used for environmental activities.

Cost (million yen)

Expenses

15,000

Environmental
conservation costs
Environmental
conservation effective
value
Environmental
conservation effective
volumeEco efficiency

Investment

485
388
10,000

9,212
7,925

9,758

11,007
426
8,937
9,580
8,960

400

10,000

9,786
8,421

10,456
8,660

11,631
9,453

10,068
9,435

284

8,122

6,110
5,854

5,000

6,662
6,391
200

5,000

192

1,287

1,636

2,070
1,365
620

0

2005

2006

2007

2008

256
2009
(ﬁscal year)

0

0

2005

1,796

2006

2,178

2007

633

271

2008

2009
(ﬁscal year)

Environmental & Social Report 201022

5 ■ Environmental Conservation ＊ Factory/Office

Prevention of Global Warming
Basic Policy＊1
Global Warming
Phenomenon ofincreasing averagetemperatures of theearth’s near-surface airand ocean caused byincreasing concentrationsof greenhouse gases that
trap heat in theatmosphere and heat thesurface of the earth.

Takao Hamada
Director and Chairman of
the Central Energy Saving
Expart-committee

We are promoting measures to stop global warming*1 measures which we consider to benecessary for human beings to survive the 21st century and also maintain the integrity of
ecosystems into the future. During fiscal 2009, in the middle of the global economic slump, we
worked especially hard to save energy consumption with particular focus on a type of energy to
be used for fixed non-production purposes. As a result, our total carbon dioxide (CO2) emissions
have declined from the previous fiscal year, although the target was missed by a narrow margin.
Fiscal year 2010 is the final year of our Eco Vision scheme, and we are further enhancing our energysaving efforts and specifically aim to decrease our CO2 emissions to 150,000 tons or less.
Also, we have established the Energy Conservation Promotion Section in July 2010 for the
purpose of further promoting our CO2 emission-reduction activities based on a long-term vision
covering 10 years ahead. We will reinforce our energy-saving activities to contribute to theprevention of global warming.

2009 Targets and Results
During fiscal 2009, the NGK Spark Plug Group emitted a
total of 171,000 tons of CO2 equivalent. This volume wasslightly in excess of the target of 169,000 tons, but down
12% from the previous fiscal year’s emissions. In terms ofemissions intensity, our emission reduction performance
has improved: despite the fact that our production volume
has actually increased from the previous fiscal year, wehave reduced CO2 emissions in real terms (emissions perunit of production) through the reorganization of business

units and integration of plants and facilities.
Taking into consideration our actual emission control
performance up to the present and our production plans,
we have set an emission target of 176,000 tons for fiscal
2010. We will continue our efforts to reduce total CO2
emissions as well as emission intensity.
Also, as a company engaged in international operations,
we will promote our anti-global warming initiatives
extensively in collaboration with our overseas divisions.

●Fiscal 2009 target & results■Major successful efforts
・ Energy saving through the introduction of the on/off control function
to vacuum pumps (See “Example of Our Achievement” on P.24)
・ Energy saving through the renovation of a pure water feedsystem (See “Example of Our Achievement” on P.24)
・ Energy saving through the modification of the platedtank heating method

Group

Target (Emissions)

Results

169,000 tons or less

171,000 tons

●Transition of CO2 emission (offices and factories)
Basic unit
(tons of CO2/1 million yen)

CO2 emissions(10,000 tons of CO2)
40

10

1.6

1.4

1.4

1.2

1.2

＊2
The Act on the
Rational Use ofEnergyLaw concerning energy
saving. Under this law,
those businesses thattransported, bythemselves or via contract
carriers, a total of 30
million ton-kilometers ormore of cargo are
required, as a designatedcargo owner, to promoteenergy saving measuresintensively to reduce CO2
emissions.

23

0.8

15

20.89
23.84

1.0

0.6
0.4

5
0

1.039

11.61
17.09
20.11

7.01

15

13.81
19.46
22.64

20

14.57

11.82
16.36

25

0.992
1.002

13.56
19.59
22.11

30

1.144

12.42
17.93
17.73

1.218

1.332

0.2
0
2008
2009 Eco vision(ﬁscal year) 2010Group
Basic unit (non-consolidated)
Non-consolidated
NGK Spark Plug Group including overseas manufacturers

1990 2001 2005

2006

CO2 emissions (10,000 tons of CO2)

1.6

1.420
35

●CO2 emission for overseas manufacturers plants in each region※

2007

1.61

Kerosene

LPG

Light oil

Natural gas
LNG

Heavy oilElectricity
1.0

0.75

0.8
0.6

0.55

0.4
0.2
0

0.05
North America South America

0.06

EuropeAsia

Africa※Regarding the CO2 emission from purchased electricity, we use each country's GHG
protocol coeﬃcient. Regarding fuel, we use the same coeﬃcients as in Japan. (See P.19)

Logistics
We are a designated cargo owner under the Act on the
Rational Use of Energy.*2
As part of our efforts to reduce greenhouse gas emissions
cause by our transportation activities, we reviewed theenergy-saving performance of outsourced operators suchas waste treatment agents and freight carriers during
fiscal 2009. The total volume of transportation made by
us during fiscal 2009 was 38.69 million ton-kilometers,
including commercial products and waste. And, the total
volume of CO2 emissions which we were responsible for
as a cargo owner during fiscal 2009 was 2,490 tons,

Environmental & Social Report 2010

down 14% from the previous fiscal year.
●Transitions in CO2 as a Consigner
CO2 Emissions (tons of CO2)
4,000

3,550

3,480
2,910

3,000

2,490

2,000
1,000
0

2006

2007
2008
2009
※Including the portion outsourced. (ﬁscal year)

W

Greenhouse Gasses*1 other than CO2 from Energy Sources

In fiscal 2009 the total volume of greenhouse gasses
other than CO2 from energy sources converted to CO2
was 1,825 tons, a 43% reduction from the previous year.
These emission volumes are not covered by the Law
Concerning the Promotion of the Measures to Cope with

W eb

Global Warming*2 but we are working to prevent global
warming through ongoing calculation of greenhousegasses.

＊1
Greenhouse Gas

Clean Energy*3
NGK Spark Plug Group has been promoting the utilizationof solar energy as a “clean energy.”
Our Head Office Factory is equipped with three solar
power generation units and a solar heat-utilizing water
heater. Our Komaki Factory is equipped with a large-sized
solar power generation facility with a capacity of 107 kW.
During fiscal 2009, these facilities collectively generated

Gasses that cause global
warming. The Kyoto
protocol covers carbon
dioxide, methane, nitrous
oxide, hydrofluorocarbons,
perfluorocarbons, andsulfur hexafluoride.

168,000 kWh of power,
which contributed to asignificant reduction in
CO2 emissions amounting
to 55 tons.

Solar Panels

Green Curtain*4
At the Miyanojo factory, efforts have been made towards
a curtain of green since 2008. By reducing the warming oftemperature inside, cultivating vegetables on the southernwall of the office building, reducing the electricity used byair conditioning during the summer months.
Green Curtain

Bitter Gourd

E xample of Our Achievement

E xample of Our Achievement

Energy saving through the introduction of
the on/off control function to vacuum pumps

Energy saving through the renovation of thepure water feed system

Iijima Factory of NTK Ceramic Co., Ltd. has several
vacuum pumps. Traditionally, the factory had been
making energy-saving efforts by means of partial
shutdown of the pump system. But recently, they
have taken up a new approach that introduces acontrol mechanism.
Previously, pumps were always in operation evenwhen the production lines were out of service, tomaintain the state of decompression in a piping
system or a production line. In order to eliminate
energy waste attributable to full-time operation, an
on/off control mechanism has been introduced tothe pump system through the installation of an EE
sensor, which is sensitive to brightness, so thatpumps can be activated when the room light isturned on. The room light is always on when aproduction line is in service, and the light is off when
there are no production activities. Thus, the pump
operation is interlinked with the room light status.
This mechanism contributes to a 53 ton reduction in
CO2 emissions per year.

Komaki Factory of NTK Ceramic Co., Ltd. has
successfully created an energy-saving mechanism
through the renovation of the water system that
feeds pure water to production lines forsemiconductor parts.
Before the renovation, separate loops were used
to feed pure water to Plant 10 and Plant 11
respectively, with each having a pump, although, infact, Plant 11 did not need much pure water.
Through the renovation, a new pipe has been
installed to integrate the loops, and the pump for
Plant 11 was stopped. We have confirmed that thepump shutdown did not cause any flow problems.
This renovation contributes to a 17 ton reduction in
CO2 emissions per year.

Air tank

On/oﬀ control
panel

P
P
P
P

＊2
Law Concerning thePromotion of the
Measures to Copewith Global Warming
Under the system forcomputing, reporting on,
and publicizing thequantity of greenhousegases, business places
emitting more than 3,000
tons are made responsible
for the reporting ofemissions. In the reportfor fiscal 2009 we reporton a per-business unit.

＊3
Clean Energy
Energy use associatedwith low carbon dioxide
emissions. This includes
solar, wind, hydro, andbiomass energy.

＊4Green Curtain
A natural curtain cultivatedby vine-like vegetation in
front of windows. The
absorption of the direct
sunlight and transpirationby the vegetation has acooling effect to reduce
indoor heating.

●Outline of the renovation
Plant 10Plant 11

A new
pipe

●Outline of the mechanism

PressuresignalResults of computing
greenhouse gases
according to the systemfor computing, reportingon, and publicizing thequantity of greenhousegases

Detects brightnessthat tells the statusof a production line

Pump

EE sensor

EE sensor

Production lines

Production lines

Pump

This pumpwas
stopped.

Pure water
storage tank

Activate

Vacuum pumps

Environmental & Social Report 201024

5 ■ Environmental Conservation ＊ Factory/Office

Waste Material
Basic Philosophy
The NGK Spark Plug Group takes measures to eliminate waste emissions volumes first in order to make maximum
effective use of resources, and works to recycle what waste is emitted.

Results with Respect to Fiscal 2009 Targets＊1
Reduction targets

During fiscal 2009, the Group worked to reduce waste by 254 tons. As a result of these efforts, measures were implemented
resulting in a reduction of 467 tons, achieving our target.
●Fiscal 2009 target & results
1

NGK Spark Plug Co., Ltd.
Affiliates
Total●Transitions in Waste Emission Volume
Recovery rate (%)
99.4

20,00015,0002005

2006

Recovery rate =

(

94

2008

Consolidated

92
90

2009
(ﬁscal year)

0

Recovery rate (Consolidated)

Any waste, either
industrial waste or
general waste
generated at our
offices, shall be
categorized into “zeroemission” waste, if
recovered at a rate of
98% or more.
Reused + recycledreused + recycled +disposed of tolandfill +incinerated
≥ 98%

96

2007

Non-consolidated

Definition of“zero emission”

98

10,0000100

16,13725,00099.3

21,771

30,00099.2

12,938Emissions Volume (tons)
99.5
98.3

35,00028,855The total volume of waste generated by the NGK Spark
Plug Group during fiscal 2009 was 16,137 tons, down
26% from the previous fiscal year. The substantial
reduction is attributed to the successful integration of oursemiconductor parts manufacturing plants.
We are also working hard to attain our “zero emission”
goal, which aims to reduce the waste to be incinerated or
disposed of as landfill, by increasing the recovery rate to98% or more. Since fiscal year 2005, we have beensuccessful in attaining this goal every year.

19,502

We define “recovered”
waste as thatgenerated through ouroperations and laterreused or recycled(including that recycled
thermally) or sold as avaluable resource.

Volume of Waste Generated and Recovery Rate

29,837

Our definition of“recovered” waste

Results
388 tons
79 tons
467 tons

26,052W

W eb
Volumes of waste
generated at respective
offices and factories

Reduction Target*
228 tons
26 tons
254 tons

27,040

Ratio of acceptable
outputs to the entire input.

■Examples of successful efforts
・Reuse of dust generated through the granulation
process (See “Example of Our Achievement”)
・Reducing waste through the improvement of yield rate*2
・Reducing sludge through the renovation of a wastewater
treatment system

24,079＊2
Yield rate

21,289See P. 18 for specifictargets.

)

E xample of Our Achievement
Reuse of dust generated through the granulation process

To be reused as a raw material

In our ceramics granulation process (in the production of spark
plug parts), we have successfully reduced waste by introducing
an in-house recycling mechanism that enables the reuse ofceramic dust generated through the process.
Before the introduction of this mechanism, ceramic powders
collected by our dust collector went to outside waste treatment
agents for recycling. We have analyzed the quality and state of
mixture of these powders and confirmed that they are goodenough, in terms of quality, to be reused in our operation as a raw
material.
Then, we have started the recycling, resulting in waste reductionof about 3.5 tons per year.

Dust collector(centralized collection)

Outline of the process

Input
materials

StoragetankGranulation
Measuring

MixingFiltering
To the dust
collector

Collected
powders

Water Resources
Basic Philosophy●Transitions in the Quantity of Tap Water and Well Water Used

132

100
0

25

Environmental & Social Report 2010

Consolidated

214

224

216

206

184

150

182

200

190

Non-consolidated

250

179

Quantity used (10,000m3)

174

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

2005

2006

2007

2008

2009
(ﬁscal year)

Results with Respect to the Fiscal 2009 Targets
In fiscal 2009, we set a water reduction target*1 of 12,401m3 for NGK Spark Plug Group and implemented measures toreach it. As a result of these activities we reduced group-wide water use by 16,790m3, achieving our goals.
●Fiscal 2009 target & results
NGK Spark Plug Co., Ltd.
Affiliates
Total

Reduction Target
11,527m3
874m3
12,401m3

Results
16,340m3
450m3
16,790m3＊1
Reduction targets
See P.18 for specifictargets.

■Major successful efforts
・Water saving through the installation of a rain sensor
with the sprinkler (See “Example of Our Achievement”)
・Water saving through the improvement of a cleansing
method for our de-iron filter
・Water saving through the improvement of yieldE xample of Our Achievement
Water saving through the installation of a rain
sensor with the sprinkler
Miyanojo Factory sprinkles water over its building roof
for cooling purposes, with the ultimate goal of reducing
CO2 emissions caused by the operation of air
conditioners.
Before the installation of the sensor, the sprinkler was
timer-controlled and automatically activated every day,even on rainy days. We have introduced a rain sensor
so that the sprinkler would not be activated on a rainyday.
This resulted in an about
2,100m3 saving of water.

Sprinkling water

Hazardous Substances
Control of PRTR SubstancesW

W eb
Per-region PRTR data

We are striving to reduce the amount of PRTR*2 lawregulated substances discharged from our facilities into
the environment, by setting a target of 80% reduction
from fiscal 2002 to 2010 (or limiting the annual amount ofdischarge to 36 tons or less by the end of fiscal 2010). We
are also setting annual goals and undertaking activities toreduce VOC*3 .
The total volume of release of PRTR-designated chemical
substances which we were responsible for during fiscal
year 2009 was 131 tons, down 14% from the previous
fiscal year. Although we are aware of difficult problems
existing and affecting our efforts to attain the fiscal 2010
goal at this moment, we will continue to promote our●Quantity of PRTR Law-Regulated Substances Handled
Quantity
handled(tons)
600

Non-consolidated

560
510
500

127
124

400

109
81

37
47
300

494

29

32
67

Quantity
NGK Spark PlughandledGroup(tons)
800
800
781

700

75
400

46

36
37

81

157

Sold Parts : 18,626
Decomposition
Reaction : 200,932
Buried/Incineration : 150
Public Sewer : 10

Eﬀective Use : 88,382●Quantity of PRTR Law-Regulated Substances Released
Quantity
Released(tons)
20

Non-consolidated

Quantity
Released(tons)200

NGK Spark Plug
Group

179

144
15
25
75

82

34
60

193

2.4

2.0

152
1

150

＊2
PRTR
(Pollutant Release
and Transfer
Register)
Law Concerning
Reporting, etc. of
Releases to theEnvironment of SpecificChemical Substances andPromoting Improvementsin Their Management.
System of tracking volumeof emissions to theenvironment of designatedchemical substances andthe reporting thereof.

＊3
VOC(Volatile Organic
Compound)The source ofphotochemical oxidants
and suspended
particulate that pollute theatmosphere.

131
2

13.3
0.5
0.5

114

1.7
10

100
133

184
10.4

171

Products :267,528

Quantity
Handled:706,21155
44

Public Water Area : 182

706

42

150
183

Atmosphere : 130,402(unit: kg)

16.6
33

300
200

●INPUT-OUTPUT of PRTR law-regulated substances

208

600

500

28

161

countermeasures including the collection of toluene andreplacement of xylene.

12.3

6.5
0.2
0.4

5

200

118
50
45

100
100

123
70
0

2002

2008

244

208

5.9
185

65
2009
(ﬁscal year)

TolueneNickelWater-soluble copper salts(excluding complex salts)

0

2002

XyleneDibutyl phthalate
Others2008

2009(ﬁscal year)

Lead and othercompounds

0

2002

0

0

2008

2009
(ﬁscal year)

Dichloropentaﬂuoropropane
TolueneOthers

0

9
10
2002

18
0

11
0
2008
2009
(ﬁscal year)

XyleneEnvironmental & Social Report 201026

5 ■ Environmental Conservation ＊ Products

Control of Hazardous Substances
Basic Philosophy＊1
ELV Directive
End-of-life Vehicles
Directive. Implemented in
2002 in the EU to regulate
specified substances andrecycling rate for used
vehicles.

In recent years, control measures over the use of chemical
substances for products have been strengthened
internationally. In order for us to observe legal requirements
such as the ELV Directive*1, the RoHS Directive*2 andREACH Regulations*3, we need to implement strict
control practices. Our control mechanism, which aims toensure appropriate observance of rules and requirements
and avoid any environmental pollution caused by our
products, consists of the following three areas: (1)Addressing customers’ requests; (2) In-house treatmentof chemicals; and (3) Procurement from suppliers.

＊2
RoHS Directive
Restriction of Hazardous
Substances Directive
covering electric andelectronic devices.
Implemented in the EU in
2006.

Level

① Customers
Customers are placing more stringent requirements
as the regulations on hazardous substances
included in our products are made stronger.
We work to appropriately support the demands ofour customers including the submission of a non-

＊3
REACH Regulations
Registration, Evaluation,
Authorization andrestriction of Chemicals.
Implemented in 2007 in
the EU comprehensively
regulating hazardous
substances for
substances included in
products and substances
manufactured or imported.

＊4
IMDS

inclusion certificate for prohibited substances as
indicated by our customers, submission of productchemical substance data including IMDS*4 andJGPSSI*5 data sheets and AIS*6, and support for
inspection or oversight of control systems.

Level③ SuppliersThis system gathers
information on included
substances and materials
for parts for nearly 30,000
components comprising avehicle.

＊5
JGPSSI
Japan Green Procurement
Survey Standardization
Initiative. This association
takes measures to share
surveys of chemical
substances included as
parts and materials andbrings together electricand electronic equipment
manufacturers on a
voluntary basis.

＊6
AIS
This sheet is for supplied
by JAMP (Joint Article
Management Promotion
consortium) to transmit
information related tochemical substances
included in products.

The cooperation of our suppliers is essential for
use to appropriately control the hazardous
substances contained in our products and prevent
inclusion of regulated substances. The NGK Spark
Plug Group has gained this cooperation including
procurement of items with Green Procurement
Guidelines, submission of chemical substanceinclusion data of purchased materials, and a noninclusion certificate for substances we prohibit.
In fiscal 2009, we revised our “Green Procurement
Guidelines” to add new rules that we need tofollow to ensure our observation of the laws andregulations concerning hazardous chemical
substances. These revised Guidelines serve as acomprehensive guide for our environment-friendly
operations.

■Green Supplier System
We have established a green supplies system,
certifying suppliers that have actively taken
environmental measures as green suppliers.
During fiscal 2009, we have expanded the list of
those “green suppliers” to include supplementarymaterials, facilities, outsourced processing works,
and construction works. To be qualified as a“green supplier,” they are required
to meet our system and material
criteria. As of today, our list has atotal of 327 green suppliers.

Certification Standard

Green Procurement Guidelines(Japanese Only)

System Standard

Material Standard●Acquisition of third
party certification
under environmental
management system●No use of designated substanceson our prohibition list (raw materials,
products, packaging materials, etc.)●Reporting on the use/non-use of
any of the prohibited substances(facilities, tools, etc.)●Implementation of measures forpreventing the use of hazardous
substances (outsourced operations,
etc.)

OK

OK

Green Supplier＊7
EcoAction 21
One Environmental
Management System.
This system is designed
for small- to mid-sizedbusinesses and features
lower costs than
ISO14001 accreditation,
and allowing inspections
and consultation.

27

Environmental & Social Report 2010

Certificate■Supporting our suppliers
In order to promote environmental conservation
activities with our suppliers we support theestablishment of environmental management
systems.We have received assistance requests
from a total of 34 suppliers so far, 29 of whichhave successfully acquired the ISO14001
certification or have been certified as being inconformance with EcoAction 21*7. We will continue
our support for the remaining five suppliers.

Level② NGK Spark Plug GroupWe set “hazard ranks” at NGK Spark Plug Groupin order to control environmentally hazardous
substances used in our processes or contained in
our products.During fiscal 2009, we reviewed all
listed substances to ensure that our Hazard Rank
system conformed to legal requirements andcustomer needs, and also improved the control
mechanism. Specifically, we have introduced
stricter criteria for “prohibition” and “restriction” forproducts and processes respectively, in
preparation for the upcoming expansion of legallycontrolled substances. We will continue tostrengthen and improve our control mechanism
over environmentally hazardous substances, toprevent any of our products from using thesesubstances.

■Hazard Rank
Hazardous substances are divided into prohibited,
restricted, and monitored, depending upon the
degree of danger or toxicity. Also, a handlingstandard is established for each rank.

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

Customer Request

Legal Regulation

Information Acquisition

Hazardrank

Handling standard

Substances covered

Substances prohibited
Prohibited Use is prohibited. from use or strongly
substances
restricted by regulations.
Safer substitutes Hazard level and toxicity
will be sought,
are equivalent towhile making
prohibited substances,
Restricted efforts to reduce but an immediate
substances the use ofchangeover is impossible
current
due to its special
substances.
characteristics.
Supplies need to
be examined to Those not prohibited orMonitored find existence/
restricted but that require
substances non-existence of monitoring.
applicable
substances.

Information control

Hazard rank
(in-house standard)

Control of amount to be used

Control of content on products
List of Legal Regulations■Product Assessment
We have implemented product assessment during
the development of new products and anychanges in specification. Verifying the conditionsof inclusion of hazard rank substances, we
examine the environmental load caused during
each stage from design and manufacturing/logistics, to use and disposal, to proactively
prevent environmental pollution in our products.

DesignStage●Are environmentally hazardous substancesused in the product?
●Does it use fewer resources thanconventional versions?
Manufacturing /Logistics Stage●Are environmentally hazardous substancesused during manufacturing?
●Do manufacturing processes use less energy

and produce less waste than conventionalversions?
●Does it generate less environmental pollution

Use Stage

than the conventional version?
●Does it consume less energy than theconventional version?
Disposal
Stage●Will it be disposed of while containing

environmentally hazardous substances?

■Internal Analysis of Environmentally Hazardous Substances
In order to verify the state of inclusion of
our internal analysis center. By establishingenvironmentally hazardous substances in theanalysis methods for hazardous substances andproduct, we perform partial analysis of thesubmitting trustworthy data to customers, we
presence of these substances in our products at
prevent the shipping of noncompliant products.

Environmental & Social Report 201028

5 ■ Environmental Conservation ＊ Products

Development of Eco-products
Basic Philosophy
We are aiming to reduce the environmental burden
through the entire product lifecycle in accordance with
our environmental product policy: “We will work towards
the development, design, procurement, manufacture,sale, distribution and disposal of environmentally friendly
products.” We deliver a wide range of products aroundthe world. Many of these products are simply componentsthat a consumer will never see, but we continue
development to create products that contribute to society
and the environment into the future.

Solid Oxide Fuel Cell (SOFC)
We are working on the development of SOFC. See the Feature Article 1 (p. 5).
W＊1
Auto-ventilation
systemUsed with air conditioners
for automobiles, thissystem enables anautomatic switchover
between “internal
recirculation” mode and“outside air ventilation”
mode.

＊2
MEMS
MEMS stands for Micro
Electro Mechanical
System. It ischaracterized by theirmicro structure withmechanical parts,
sensors, electronic
circuits, etc., integrated
on a board.

Air Quality Sensor

W ebof new markets and combined use with our existing
technologies in our strong field.

An air quality sensor is an exhaust gas detector used withthe auto-ventilation system*1 of an air conditioner to beinstalled in an automobile.
Our Air Quality Sensor is characterized by its use of a
micro-heater (a core MEMS*2 technology) as a detection
element. It results in substantial downsizing and energy
saving when compared to conventional sensors using alayered ceramic element. Besides, this Sensor not only
helps reduce total power consumption but also achieves
simplification of packaging and the control circuit,contributing to comprehensive resource saving.
This MEMS technology can be applied extensively todiverse areas, and is expected to contribute significantly
to our environmental protection efforts. We hope toeffectively utilize the technology for various products anddiverse purposes, including innovations for the cultivationW

IC Packages●Air quality sensor element
Conventional element

5mm

W eb

Sansomate-5F oxygen concentrator
for medical use
W eb

Oxygen concentrators serve those patients with chronic
respiratory disorders who need to receive oxygen therapy
at home.
Facing the increase of the elderly population and thegrowing welfare needs of our society, oxygen concentrator
manufacturers are aware of the rising interest in theenergy-saving performance of medical equipment. Our
5F series of oxygen concentrator, which we havedeveloped based on our existing technology applied tothe 3E series of 2005, is characterized by its excellent
energy-saving performance. Starting in fiscal 2010, the29

Environmental & Social Report 2010

MEMS element
1/25 in terms of cubic volume
1/5 in terms of power consumption

An IC package consists of a MPU (micro-processing unit
which constitutes the heart of a computer) and a board tocarry a chipset that assists the MPU.
We have developed an innovative wiring technology andspecial design for the MPU-chipset integration, enabling asingle package to carry multiple signal processors. We
are now mass-producing those multi-chip module
package units. This innovation contributes significantly toresource saving and space saving, and helps reduce theenvironmental burdens of our products.
Regarding the use of environment-friendly materials, weW

http://www.ngkntk.co.jp/english/product/sensors/

http://www.ngkntk.co.jp/english/product/semi/

are promoting the use of halogen-free materials and leadfree solders in our mass-produced products. Currently,
desktop computers and note-type computers are typicaldestinations, but we are going to expand the application
toserver-related
products as well.

Organic IC Package for MPU

http://www.ngkntk.co.jp/english/product/medical/

new series is being distributed in the market.
●Sansomate-5F
Flow rate
Power consumption
settings ofreduction rates (whenrespiratorycompared to theminute volume conventional 5L series)
5L/per minute3L/per minute
1L/per minuteDown 15%
Down 43%
Down 59%
Sansomate-5F

＊ Region

Communication
W

Basic Philosophy

As part of our efforts to raise the level of people’s
awareness and understanding about our organizationwide commitment to environmental conservation, we
promote communication with people and local
communities. Specifically, we publish Environmental &Social reports and site-specific environmental reports*1,

W eb

and invite people to our factory tours and opinion
exchange meetings as well. We will continue those efforts,
ensuring that our explanation and the information wedisclose to the public are accurate and easy tounderstand.

Environmental Meeting
We have implemented environmental meetings as a placefor exchange of views with the people of the region. Thisis both an opportunity to improve, as well as gain
understanding of NGK Spark Plug Group environmental
conservation activities.

●Meetings
Local Citizens, etc.

8 Meetings, 30 Attendees

Site-specificenvironmental reports(Japanese only)＊1
Site-specificenvironmental reports
They are issued by four
factories of NGK Spark
Plug Co., Ltd. and its
affiliates respectively (notincluding Nittoku Alfa
Service Co., Ltd. andNittoku Unyu Co., Ltd.)

Accepting Visitors at Environmental Factories
Through hosting factory tours at NGK Spark Plug Group,
we work to deepen exchange with the local community
while allowing the people of the region connected with theGroup to understand our environmental activities.During
fiscal 2009, a total of 128 persons in five groups visited
our plants.

●ToursLocal Citizens/Municipal
Governments/suppliers

5 Tours, 128 Participants

Factory Tour

Cooperation with Local Communities for Environmental Conservation
The Miya River in Ise City, where our Ise Factory is located,
is well known for its clear limpid stream and has actually
received the Japan’s Cleanest River award several times.
Our Ise Factory is one of the participants in the“Coordinated Miya Watershed River Check” carried out
by the Miyariver Watershed Renaissance Assembly, andis working with local residents to conduct water quality

examinations on all tributaries of the River on a monthly
basis. The Factory also sends volunteers to Miya Riverclean-up activities.

Local residents cleaning
the Miya River

Donation to Tree Planting Projects
With a desire to promote a harmonious relationshipbetween human beings and the natural environment, we
donated a part of our profits earned during the spring“Change to an Eco Plug” campaign (held from April toJune 2009) to a tree planting project implemented in
Moshiri, Horokanai-cho, Uryu-gun, Hokkaido. This project
aims to restore a forest that has been destroyed by natural

disasters or other reasons. Our donated fund was used
for a hundred Sakhalin spruce trees, which were plantedin the project site by the hands of Hokkaido University
researchers and engineers. We will continue ourcommitment to such efforts to conserve forest
ecosystems.

Turn-oﬀ-lights Campaign
In alignment with the “turn-off-lights” campaign initiatedby the Ministry of the Environment, we unplug ourbillboards from time to time.
In fiscal 2009, we turned off the lights of our signboards
and billboards intensively on June 21 and July 7. In a totalof 15 sites, our signboards and billboards installed at ourplants and offices, as well as at our customer retailers,
were disconnected from power sources during these twodays. We will continue this promotion as part of ourenergy-saving activities.

Usual view of our signboard

Light turned off

Environmental & Social Report 201030

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

W

W eb
Cleaning activities ineach region
participation status

Commitment and Assistance to Local Communities■Safety Seminar for Bikers at Mizuho
In June 2009, a safety seminar for elderly bicycle users
was held in Mizuho-Ward, Nagoya City, Aichi Prefecture
where our headquarters are located. The seminar aims to
improve bikers’ understanding and observance of traffic
rules and manners, and was hosted by local police
stations and support organizations, including ourselves.
During the seminar, all participants were enthusiastic
about learning safety tips. The seminar was concluded bya speech by our representative, the general manager of
the General Administration Department of NGK Spark
Plug Co., Ltd., who called for people’s cooperation andenhanced efforts in preventing traffic accidents. The
seminar proved very worthwhile.

■Cleanup activities
The NGK Spark Plug Group is actively involved incommunity-based environmental conversation efforts,
including local cleanup activities. Our factories and offices
not only participate in community-initiated cleanup
programs in their respective areas but also take theinitiative in carrying out cleanup activities on a regularbasis. During fiscal 2009, a total of 891 employees in ourGroup participated in cleanup activities near our plants,
and 79 employees took part in community-initiatedcleanup programs.

Cleanup activity hosted by a local community(Komaki Factory)

Participants learning how to safely use a bicycle

Employees in a town-cleaning activity(Kamioka Ceramic Co., Ltd.)

31■Opening our Tennis Court to the Public
The tennis court in our Ise Factory, which was renovatedin 2007, is open not only to our employees but also to
local citizens.

■Accepting interns
Every summer, Ceramic Sensor Co., Ltd. accepts highschool students as interns and provides them with handson work experience. Through such opportunities, weassist local young people in developing their understandingof occupations and their attitudes toward work.

Tennis Court of Ise Factory

Internship

Environmental & Social Report 2010

Participation in and Support for Community-based Activities■Komaki Sangyo Festa
Every year, we participate in Komaki Sangyo Festa (anindustrial festival) held at Park Arena Komaki, as one of
the sponsors. We provide publicity through our corporate
booth and operate diverse programs such as flea markets,recreational events and food services, attracting both
adults and children.

■Satsuma Town Summer Festival
Satsuma Town, home of our Miyanojo Factory, hosted
the Satsuma Town Summer Festival in August 2,2009.
The festival featured around 1,000 people dancing in timewith the booming beat of Miyanojo Itsutsu Taiko (traditional
Miyanojo five drums). A row of approximately 133 people
from the Miyanojo Factory participated, dancing andlivening up the festival.

Komaki Sangyo Festa■Green Fund Activities
Since 2007, Ise Factory has been participating in Green
Fund activities to urge people to donate to the national
land afforestation promotion campaign. As an appeal for
donation, employees of the Factory hand out greenfeathers to people on the street every year.

Satsuma Town Summer Festival

Traﬃc Safety
As a corporation that is involved with the automobile
industry, traffic safety is fundamental. In addition to raising
the awareness of safe operation among our employees,
we also urge persons travelling in the vicinity of our officeor factory to observe traffic safety.We are also actively
involved in traffic safety education programs conductedby the local police and community-based
support organizations.

Girls in yukata participating
in a traffic safety campaign

Street Observation

Support for Foreign Students■Nittoku Asia Foreign Student Scholarship Public TrustNGK Spark Plug Group is developing business in
production and sales hubs around the world andespecially in Asia, including Malaysia, Thailand, Indonesia,
Taiwan, Korea, Singapore, China, India and thePhilippines.
We established a scholarship fund for students from
Asian countries attending universities and graduate
schools in Aichi prefecture celebrate the 70th anniversaryof the foundation of the company in November of 2006. In
fiscal 2009, the third year of the program, we supported
eight students.
Investiture

Environmental & Social Report 201032

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

Employment / Human Rights
Diversity and Equal Opportunity
We are working to thoroughly eliminate discrimination based on race, sex, age, beliefs, disability and so on in our recruitingand employment.
■Increasing Roles of Female Employees
As of March 2010, the ratio of women among full-time
employees in our Group was 16%, with the percentage ofwomen among new employees being 23%.
Although the proportion of women to the entire workforce
is far less than that of men, we are providing our female
employees with more and more important roles andresponsibilities including managerial positions and posts
at overseas divisions. We will continue to promote theexpansion of opportunities for women with motivation
and ability.
●Male-female Ratio
Permanent Employees
Female16％

New Employees
Female23％■Post-retirement Reemployment System
In order for us to take advantage of the long-accumulated
knowledge, skills and expertise of retirees and also
provide them with the opportunity to continue working,we have introduced a post-retirement reemployment
system since 2001.
During fiscal 2009, 81 retirees were reemployed under
the system. Up to the present, a total of 373 persons
have used the system.
●The number of retirees reemployed under the system(people)
100
81

80
60
49

55

40
27
Male
84％

Male
77％

20
0

(As of March 2010)(Fiscal 2009)●Percentage of Employees who are disabled
Employment Rate (%)
2
1.8
1.57

1.50

1.53

2007

2008

1.76

1.41

1.4
1.2
1

2005

2006

2009
(ﬁscal year)

33

Environmental & Social Report 2010

2005

2006

2007

2008

2009
(ﬁscal year)■Employment of the disabled
We have been promoting the employment of disabledworkers. In fiscal 2009, however, we failed to reach thelegally required employment rate for the disabled, with arate of 1.76%, slightly below the legal requirement of
1.8%.
When assigning duties to disabled employees, we engage
in sufficient discussion with them to ensure their safety
and eliminate any anxiety they may feel. We will continue
our efforts to create attractive, safe work environments forthem and make our workplaces more open to thedisabled.

1.6

20■Appropriate placement
For the purpose of expanding opportunities for highly
motivated employees to play an active part in ouroperations, we have introduced diverse new personnel
systems including an invitation of in-house applications
for specific positions and repositioning to new fields ofspecialty. We have also started to authorize female
employees to take late-night shifts.
Our employees are allowed to file a placement request
with their superior (in a managerial position) during a“merit rating” interview that takes place twice a year. Theinterview provides employees with the opportunity to
discuss their goals, career course, work environment,
etc., with their superior.
We carefully assign duties to each employee, taking into
consideration each employee’s abilities, qualifications,attitude and desires to ensure that employees’
contributions to our operations can be maximized.

Work-Life Balance
In order to have employees work healthily and happily, it
is important to work with a balance between work andhome life. We have distributed a Working Hour
Management Handbook to all our employees to promote
taking vacation and working shorter work hours to reduce
the total work hours per-year.We also allow employees towork flextime if appropriate for their duties, so that they
can optimize their work-life balance.
In addition, various support systems are available to ouremployees, especially for those who are parents of smallchildren, or need to take care of elderly parents requiring
nursing, or desire to engage in volunteer work. During
fiscal 2009, a total of 48 employees took childcare leave.
We will continue to assist our employees in improving

their work-life balance by creating a better work
environment for our next-generation workers.
●Number of People Using the Leave Schemes
Number of employees taking childcare leave
Number of employees taking nursing leave(people)
70

58

60
50

55
48

46
38

40
30
20
10
0

1

0

2

0

1

2005

2006

2007

2008

2009
(ﬁscal year)●Available programs
Program nameChildcare leave

Term
Until child becomes 1 year oldChildcare leave extension Until child becomes 2 years old

OutlineAvailable for parents of newborn babies
Available for those whose child is on waiting list foradmission to a day nursery

Special leave

Until child enters elementary
schoolAvailable, up to 5 days per year, when the child needs
care due to sickness or injury

Short-time work

Until 1 month passes after child Available for those who want to leave early for childrearing reasons,as far as reduction in daily working hours is limited to 2 hours
enters elementary school

Nursing care leave

1 year maximum

Social service leave

2 years and 4 months maximum Available for those who engage in social service

Available for those who need to take care of elderly parents/
relatives requiring nursing

Labor and Management Relations
An important mission of labor and management is to contribute to society at large by offering superior products andservices. We endeavor to ensure that both labor and management discharge their responsibilities in an atmosphere ofmutual trust and cooperation, and create a better workplace where employees are more eager and active.
■Labor and Management Conferences
In order to have open communication between labor andmanagement we host regular labor and management
conferences. Sharing corporate information, labor time
reductions, and other issues are discussed andresponded to.
■Responding to Harassment
In order to protect the rights of employees we are taking
action to prevent harassment with coordination between
labor and management. Sexual harassment has beenbanned by the work rules and we are endeavoring toestablish a Sexual Harassment
Committee to suppress andprohibit sexual harassment.
Furthermore
wehaveestablished sexual harassment
advisory centers in each factory
to create an environment which
encourages discussion.

Our in-house magazine
explaining sexual harassment■Greeting Action
In order to begin the day with a good hearty welcome andreturn home with a smile, the labor union has engaged ina Greeting Action. Management and executives also
participate, speaking
with employees as partof this Greeting Action.

Greeting Action■Work hour reduction
We have a “No Overtime Day” once a week. On this day,labor union members patrol all floors to ensure that noone works overtime.

No Overtime Day

Environmental & Social Report 201034

7 ■ Employees

Human Resource Development
Professional Development Concept
Professional Development Concept
Creating employees that advance their work with independent desire to grow, to state their own opinion,and positive awareness of being a member of the Nittoku family.

Human Resources Development Programs
The development of human resources can be viewed as an accumulation of intangible assets, which are skills and abilities
developed in employees through diverse training programs. We improve our training programs continuously to ensure that
effective learning opportunities are made available to our employees.
Ability Training System Diagram
General education
Level specific training

Office and sales

Management education

Selective / Elective

Technology and research

SkillsSelective
All roles

Elective
Continuing education

TOEIC (biannually)
International project personnel cultivation scheme

All certifications/functions

Various language training
OA education, e-learning
Training for next-generation business leader candidates

Training for leaders in manufacturing divisions

Production Engineering
center specialist education

Fifth-year training for those on the managerial track
GeneralIntellectual property education (beginner/basic)

Fifth-year training for general clerical positions

IE training

Managerial Staff New Employee Follow Up Training

Understanding drafting diagrams /various equipment training

New employee training■Education for Next-generation Leader Candidates
This program is designed for next-generation leader
candidates who need to acquire leadership and special
knowledge for the supervision of operations. In order forthem to obtain practical abilities, we provide them withlessons to learn the diversity of people’s senses of value
and ways of thinking, as well as the significance ofpreemptive actions and decision making.
■Education Designed for Each Rank
The type of knowledge, knowhow and problem solution
approach that you need to learn depends on your rank.
All employees from new employees to those in a
managerial post are respectively provided with optimaltraining programs for each rank. In particular, those inmanagerial posts learn their crucial mission to develop the

35

Practical studies on engines

Darwin Program

Fifth-year training for generalclerical positions

Training for new section chiefs

Environmental & Social Report 2010

Intellectual property education (intermediate)

Happy Life Seminar

Contract /trademarktraining

Self initiated - English conversation

New section chief training

Each department - product knowledge training

Chief clerk/
Section chief

Training for merit rating
Training for new managers

Health and safety department specialist training

Deputy section
manager

Quality assurance department specialist training

Follow-up training for merit rating and training for existing managers
Section manager

Correspondence learning support scheme

Practical leadership cultivation training for selected candidates
Training for global operations

Department
manager /assistant manager

abilities of their subordinates. Repeated learning andpractical training enable them to acquire leadership andthe ability to put theory into practice.
■Technical Education
This program, consisting of lectures and hands-on
training, enables employees to efficiently study andacquire basic knowledge about products, drawings, etc.
■Lifelong Education and Self-enlightenment
It is important for all employees to continue autonomous
learning appropriate for theircareer design throughout all
work stages. We provide
diverse learning opportunities
and assist each employee inpursuing lifelong learning.
Happy Life Seminar■Foreign Language Studies and Training for Global
Operations
For the purpose of assisting employees in smoothly
pursuing international operations, we provide diverse
education programs such as English lessons, training forEnglish language skills, seminars on foreign cultures,studies of Japanese culture,lessons for logical thinking,etc. Also, financial studies anddebate programs are available
for employees responsible forsupervising foreign affiliates.
English conversation classOccupational Safety and Health
Basic Policy

Kazuo Kawahara
Executive Vice President
Chief Safety and
Health Administrator

Occupational safety and health management measures are supposed to cover all employees
regardless of the type of their duties. During fiscal 2009, a total of 18 employees suffered on-thejob accidents. An accident affects not only the direct victims but also their families and coworkers
in terms of mental impact. We are well aware that it is an important corporate responsibility tosecure safety at all workplaces to keep any physical and mental damage away from
employees.
Since 2006 when we established our occupational safety and health management system, we
have been making continuous efforts to improve our safety status. Although we are still in theprocess of seeking effective ways to decrease on-the-job accidents substantially, we willcontinue our organization-wide efforts toward “zero accidents” by carefully eliminating potential
dangers one by one.

Principle and Basic Policy
Principle(Set in April 2005)

Action Guideline(Set in April 2008)

To position occupational safety and health as the starting
point of business activities with respect for people as afoundation in our activities.

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

Occupational safety and health policy

Slogan for Fiscal 2010

(Set in April 2005)● Observe laws and self-standards relating to
occupational safety and health.
● Reduce risks and eliminate work-related accidents bysustained improvement of our occupational safety andhealth management and performance.
● Promote employee understanding of policy, andawareness through training and enlightenment, andwidely expand overall participation in occupationalsafety and health activities.

(Set in April 2010)● Say hello in a lively voice on all occasions!
●Be aware of the important role of communications indaily safety & health management activities, andimprove safety status by ensuring that your actions arefree from any potential danger!

Our OSHM Mechanism
With the aim of eliminating on-the-job accidents andcreating a comfortable, safe work environment, we haveestablished an in-house occupational safety and healthmanagement system. We are accredited as complying
with JISHA OSHMS Standards*1 (Japan Industrial Safety& Health Association’s Standards for Occupational Safety& Health Management Systems).
We are making organization-wide efforts to promote oursafety & health management, where each plant and officesets safety goals and makes safety plans in accordancewith OSHMS guidelines.
We seek to attain a stepby-step improvement of
our safety status.

●Stepwise improvement of safety and health standards●Safety and Health Promotion Organization

Plan
Improving
the plan

ActionSurvey of danger andtoxicity
Drawing up a plan

Stepwise
improvementof safety andhealth standards

CheckPresident
Chief Safety and HealthAdminstrator (Central safety andhealth committee chairman)

Central safety and healthcommittee

Safety and HealthAdministrator

Factory safety andhealth committee

Do
Implementing
the plan

Evaluation of theplan situation

Internal Auditor Training

Internal Safety
andHealth Auditor

OSHMS
Secretariat

Established and Published
by JISHA (Japan Industrial
Safety and Health
Association). This
standard determines
whether OSHMS isappropriately introduced
based on the
Occupational Safety and
Health Management
System of the Ministry of
Health, Labor and Welfare,and whether theoccupational safety andhealth standards arebeing appropriately
implemented to improve
gradually.

Expert committees

Department/section safety
and health subcommittee
Office meeting on
safety and health＊1
JISHA OSHMS
Standards

・Ad hoc assessment
committee
・Traffic safety measurescommittee etc.
Organized as necessary

Each factory※Each factory refers to the Head Office Factory, Komaki Factory, Miyanojo Factory, Ise Factory

Environmental & Social Report 201036

7 ■ Employees ＊ Occupational Safety and Health

Targets and Results
During fiscal 2009, we worked hard toward the tough goalof putting an end to occupational accidents and eliminating
all workplace problems (especially those classified under thethird management category). Some of our plants havesuccessfully attained the goal, but we still see someproblems remaining in our workplaces. We have to admitthat we failed to identify some potential dangers and that theimplementations of some countermeasures were too late.

We are going to strengthen our risk assessment activities
in fiscal 2010 to achieve “zero accidents.” Also, as apriority measure, we will improve our safety education
programs especially for low-experienced employees, by
taking into consideration actual accident data. Regarding
our countermeasures against workplace problems, wewill continue to focus on those classified under criticality
level III.

Fiscal 2009 Target Results
1. Elimination ofoccupational
accidents

Fiscal 2010Targets

1) Elimination of crushing and striking accidents

×2) Elimination of accidents caused by chemical handling×

Sufficient awareness of any residual risks─

2. Improvementof working
environment
3. Healthpromotion

4. Enhanced
education andenlightenment

Hazard elimination related to machines, facilities andchemical substances
Enhanced efforts to identify potential dangers in nonregular operations

1) Elimination of workplaces in the third management
category and reduction of workplaces in thesecond management category×

Elimination of workplaces in the third management
category and reduction of workplaces in the second
management category1) Improved health management awareness○Improved health management awareness2) Enhanced mental health care○─1) Promotion of safety and health education○

Improvement of safety education for repositioned
employees and young employees

2) Reinforcing safety and health patrol○

Reinforcing safety and health patrol

3) Promoting voluntary activities at the workplace○

Promotion of training for raising the level of awareness ofpotential risks and reporting of the discovery of any risky spots
Promotion of activities to improve safety & health management─

１. Elimination of Occupational Accidents＊1
Akachin Accident
Accidents not requiring a
break from work, such asa small cut requiring only
disinfectant.

＊2
Frequency Rate
The frequency of
accidents. Calculated withthe following formula.
Frequency Rate=
Number of Accidents
×1 million
Actual Hours of Extended Labor

1) Elimination of “crushing” and “striking” accidents
We had a total of 18 occupational accidents, including
minor ones which we call “akachin accidents*1.”
Among them, five were “crushing” and three were
“striking” accidents. Taking seriously the fact thatmany accidents actually occurred during non-regular
operations including maintenance work on machines,
we are currently working on a thorough review of all
workplaces for risk assessment, in order to detect
unidentified potential dangers, if any.
2) Elimination of accidents caused by chemical handling
We had three chemical-related accidents. Throughsafety education, employees are learning the importanceof appropriate use of protective tools, and we require
full attention even for short-time simple operations.

●Number of Accidents Resulting in Absence from Work
(Number of Accidents)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
5
2
3
2
1
4
1
8
4
4
●Frequency Rate*2 of Absence from WorkNGK Spark Plug Co., Ltd.
Electrical Machinery and Appliance
Manufacturing Business

Frequency Rateof Absence from Work
0.8

0.64

0.7
0.6
0.5

0.51
0.40

0.4
0.3
0.30

0.2

0.20

0.20

0.1
0

0.34
0.35

0.10
00

01

02

03

04

0.09
05

06

＊3
Working Environment
Measurement
In order to preserve thehealth of laborers andconserve an appropriate
workplace, we measure
the level of harmful factors
in the work environment
and what level of harm iscaused to workers. The
results are evaluated into
first, second, or third
categories.

37

Environmental & Social Report 2010

08

2009

(ﬁscal year)

２. Improvement of working environment1) Elimination of workplaces in the “Third
Management Category” and reduction of
workplaces in the “Second Management Category”
Targeting those divisions which use organic solventsor specified chemical substances as well as those
workplaces subject to dust pollution or severe noises,
we conduct working environment measurement *3 inaccordance with the Industrial Safety and Health Act.
Those divisions identified as having severe problems and thusclassified under “Third Management Category” or “Second
Management Category” are especially encouraged to take specificactions to identify the root causes of the problems through safety
reviews, and find effective solutions to ensure workplace safety.

07

Management Working environment
category
management
Third

Inadequate
workplace

SecondRoom forimprovement

First

Noise Assessment

Adequate
workplace３. Health Promotion
1) Improved health management awarenessSo that all our employees can work with healthy bodies
we have set goals to reduce the number of employeeswith abnormal findings in general health checkups.
Thanks partially to the recent social trend of enhancing
measures against “metabolic syndrome,” ouremployees are increasing their interest in thesignificance of taking proactive measures to prevent
lifestyle-related illness. We also encourage overweight
employees to undergo detailed checkups or receive
special health guidance, so that they can remain
healthy through early detection and early treatment.
2) Enhanced mental health care
We provide employees with opportunities to learn
mental health, through training, lectures by industrial
physicians*1, and information provision via the “Selfcare Handbook” and in-house magazines. We especially
focus on “line care” (the practice of superiors’ paying
attention to the mental health of their subordinates) and“self-care” (the practice of understanding one’s own
mental stress so as to cope with it).
Also, targeting those employees whose on-duty hours
are found to be especially long, we arrange consultation
with a doctor. In addition, as part of efforts to ensure
early detection or prevention of any mental disease, wehave established a hotline outside our organization sothat employees who feel any undesirable mental
condition can make a call and receive consultationfrom an outside specialist.

●Ratio of Employees with Abnormal Findings
as a Result of a General Health Check
(%)
40
30

29.6

30.5

34.8

31.8

2007

2008

34.9

20
10
0

2005

2006

2009

(ﬁscal year)＊The increased number of persons with abnormal ﬁndings is dueto the expanded targets for blood tests, which started in FY 2006.

＊1
Industrial Physician

Information provision via in-house magazine

Self-care Handbook

A doctor who is involvedin managing the health oflaborers in workplaces.
The Industrial Safety and
Health Act mandates
companies over a certain
threshold hire an industrial
physician for the
workplace.

Lecture by an industrial physician

４. Enhanced Education and Enlightenment1) Promotion of safety and health education
Our safety education is structured systematically foreach career stage. New employees, third-year
employees, group leaders, section chiefs andmanagers respectively have their own training menus.
Also, special education is prepared for each field ofspecialty. In addition, we provide safety training forlow-experienced
employees,
includingyoung
employees and repositioned employees, to practicallylearn how to prevent occupational accidents throughhands-on experiencebased lessons.
In additions, we provide
safety lessons forcontractors and agents
who join our operations
on our premises.
Safety training with the use of asituations revealed to have problems with their safetyor health aspects.
3) Promoting voluntary activities at the workplace
All of our employees are given a copy of the Handbook
for Safety and Health Management which we have
prepared as a comprehensive safety guide explaining ouroverall policy and the practices that need to be followed.
We encourage employees to meet and read it out
together for collation, for the purpose of improving theirlevel of knowledge and the attitude of each member
toward safety and health management.
Also, we oblige new employees to wear a special cap for
the first year. This enables employees to tell who is a lowexperienced freshman, and enables senior employees toprovide attentive guidance to such freshmen, thereby
contributing to the prevention of occupational accidents.

machine for virtual experience2) Reinforcing safety and health patrol
We regularly implementa patrol involving thesafety and healthcommittee, industrial
physician and thehealth supervisor. We
rapidly improve

Employees reading out the “Graduation from Special Cap”
Handbook together for collation ceremony (Miyanojo Factory)
PatrolEnvironmental & Social Report 201038

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

Corporate Security
In order to smoothly operate our corporate activities,
preventing illegal activities or undue claims from antisocial
forces, we set a Corporate Protection Manual.

In response to sophisticated methods, we strengthen
corporate protection by increasing the problem-solving
ability and knowledge of each individual employee.

9 Cultural Respect
We shall respect the cultures and the customs of local communities where we do businessand strive to manage our activities throughout the world in such a way as to promote andcontribute to the development of local communities.
● We will perform our overseas business activities based on mutual trust with our customers, suppliers, employees,
etc., and not only comply with the laws of each country but also respect its culture, customs and history.
● We will train to utilize local employees and suppliers in order to be a trustworthy company and a part of local society.

Respect for Local Cultures and Customs
In all regions and countries where we operate our business activities, we respect local cultures and customs and aremaking efforts to be a reliable member of the respective communities.
■NGK Spark Plug Middle East FZEIn Dubai, where our Middle East unit is located, Indian
citizens comprise the majority of the population. A music
festival featuring Indian classical music and dance is held
annually there, and NGK Spark Plug Middle East FZE has
been playing an active role in the festival since fiscal 2008as a main sponsor, contributing to the promotion of
exchanges with local residents.
Musical Festival in Dubai

Promoting a Friendly Relationship with Local Communities in the World
About 80% of our product sales come from exports to foreign markets. Furthermore, we have as many as 26 overseas units
in a total of 20 countries around the world. As a global company, we hope to contribute in some way to the development
and vitalization of local communities in those foreign countries. Here are some examples of our efforts to attain such a goal.
＊1
NGK Spark Plugs(U.S.A.), Inc.
The company
manufactures and sells
spark plugs and sensors
for automobiles.

＊2
NGK Spark PlugEurope GmbH■NGK Spark Plugs (U.S.A.), Inc.*1
The West Virginia Factory of NGK Spark Plugs (U.S.A.),
Inc. has invited local elementary school students to see
our spark plug manufacturing facilities. This has
successfully improved the awareness of local residents
about our business operations.

■NGK Spark Plug Europe GmbH (Germany)*2
The large number of trees and flowers planted on thepremises of NGK Spark Plug Europe GmbH demonstrates
the attitude of the employees toward the conservation of
the natural environment and landscapes. German people
are known for their high-level consciousness toward theprotection of nature and landscapes, which is apparent
from the practiceof the company.

Students attending a factory tour

Many plants in the parking lot

Sales company of autoparts, telecommunication
devices and ceramic
products.

39

Environmental & Social Report 2010

■Ceramica e Velas de Ignicao NGK do Brasil Ltda.*1
To celebrate the 50th anniversary of the foundation of our
Brazil unit, we have invited local elementary school
students to see a play, and also held a seminar andworkshop for their teachers to learn the mechanisms ofvoice production and body language. This educational
program was carried out as part of our “human resources
development” project designed for local communities.

■Woojin Industry Co., Ltd. (South Korea)*2
We participated in a workshop renovation competition(for safety and environment management) which is held
annually by the Ministry of Labor of the Republic of Korea.
We received the award for best performance and were
bestowed an award certificate by the Labor Minister. We
will continue our efforts as a safety-conscious,
environment-friendly company.

＊1
Ceramica e Velas de
Ignicao NGK do
Brasil Ltda.
The company
manufactures and sells
auto parts and ceramic
products.

＊2
Woojin Industry Co.,Ltd.
The company
manufactures and sells
auto parts.

Elementary school students visit a theaterAward certificate

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

Corporate Code of Conduct
NGK Spark Plug Co., Ltd. desires to be a company thathas the trust of all stakeholders, as in our catch phrase, “acorporation liked and loved by the people of the world.”
To realize this goal, we must having all directors andemployees understand and correctly practice thecomponents of our corporate philosophy, namely“Commitment”, “Management Policy” and “Action
Guideline.”
In order to accomplish this we set our Corporate Code of
Conduct to indicate our basic stance in 1998. In November
2004 we published the Code of Conduct Guidebook,clarifying our standards of appropriate action anddecision-making. We also work to increase knowledge of
ethics through internal training for executives andemployees. We will endeavor to cultivate ethics throughimplementation and permeation of the code of conduct.

Code of Conduct
GuidebookEnvironmental & Social Report 201040

Message from a Stakeholder
This Environmental & Social Report enables us to learn many new aspects of the NGK Spark Plug Group.
The special feature on SOFC is informative, and I can feel the passion and profound vision for the future. The
Group’s organizational reform is powerful, and its plans and actions, based on scientific grounds, arepreemptive and proactive. Looking at its global view as well as its attentiveness to individual customers andlocal communities, I see a sense of dignity as a global company.
Located in my town in Kagoshima Prefecture, Miyanojo Factory of NGK Spark Plug Co., Ltd. is actually
making tremendous contributions to the local society. They visit local high schools to give lectures, assisting
schools in promoting the development of specialists. We benefit substantially from their commitment to thedevelopment of intellectual assets in society and their efforts to create an environment-conscious society. I
hope to see NGK Spark Plug Group, which is a big company in our small town, further contribute to thedevelopment of our society through continuing assistance and guidance.

Shuichi Higashi
Superintendent of Schools
Satsuma Town
Board of Education

Third Party Examination“Easy-to-understand messages” and “correct information” are the
keywords in our project of publishing this Environmental & Social
Report 2010. In order for us to verify the conformance of thisReport to the said policy, we have asked TÜV Rheinland Japan

Ltd. to examine the report to see if all the important information is
sufficiently covered by the report and if the disclosed information iscorrect and based on appropriate measurements and calculations,and is consistent with source materials.

The Results of the Examination
With the ambition to make this Environmental & Social Report 2010
a foundation for a CSR report which we plan to issue in the future,
we included in this report several special feature articles, such as
the news about our development of SOFC (solid oxide fuel cell) andthe 50-year history of our Brazil unit. TÜV regards these articles
highly, stating that they enable readers to better understand ourenvironment-friendly products and overseas divisions, which we
actually wanted to realize with this report. Also, the use of different
types of prints, colors, notes on technical terms and indicatedlinkages with websites were highly evaluated. On the other hand,TÜV suggested that we should improve our explanations about ouroverseas activities and business goals in our next report.
In response to these suggestions, we have already corrected
misprints and insufficient explanations. However, there are several

41

Environmental & Social Report 2010

things yet to be improved, including those requiring structuralreform, which will need time to achieve a satisfactory improvement.
We will keep working on such pending items, and greatly appreciate
your understanding.

Editorial meeting

Third-party examination

Environmental & Social Report 2010

Results of questionnaire concerning Environmental and Social Report 2009NGK Spark Plug Group

Thank you for sending us all your answers to the questionnaire in“Environmental and Social Report 2009” published in fiscal 2009.
We take your opinions seriously and are working to implement even more thorough information disclosure.

Index
Message from the President ･････････････････ 3

Ｑ1［Feature １］ Development of solid oxide
fuel cell (SOFC) ･････････････････････････････ 5［Feature 2］ 50 years of Ceramica e Velasde Ignicao NGK do Brasil Ltda. ･･････････ 7

Before reading our Environmental and Social
Report 2009, how much did you know about
NGK Spark Plug Group s environmental policyor activities?

Reasonably
easy
20%

Nothing5%

Toward CSR Management ･･･････････････････ 9

A lot
45%

1. Compliance ･･･････････････････････････････11
3. Fair Dealing ･･･････････････････････････････15

Corporate Proﬁle4. Communication ･･････････････････････････16

Corporate Name
Head Office

5. Environmental Conservation
Environmental declaration,
environmental policy, environmental
action plan ･･････････････････････････････17
Environmental load from businessactivities ･････････････････････････････････19
Management ･････････････････････････････20

NGK Spark Plug Co., Ltd.
14-18 Takatsuji-cho,
Mizuho-ku, Nagoya
Foundation
October 26, 1936
Capital47,869,270,000 yen
Business (1) Manufacturing and selling spark
plugs and related products forinternal-combustion engines.
(2) Manufacturing and selling technicalceramics and applicable products.
Group Companies
35 subsidiaries (9 in Japan,
26 overseas), 6 affiliates

Ｑ3

Region ･･････････････････････････････････････30

Easily Understood
This report has been prepared based on our
corporate code of conduct (page 9) with the aim ofclearly describing the concepts, mechanisms, andresults of our activities.

9. Cultural Respect ･･････････････････････････39
10. Ethics ･･･････････････････････････････････････40
Messages from a stakeholder ･･････････････41
Third party examination ･････････････････････41【Period covered】From April 1, 2009 to March 31, 2010
Some other very recent activities and cases are also included.
【Covered Organization】●Environmental aspects : NGK Spark Plug Group・NGK Spark Plug Co., Ltd. (excluding the sales offices andsales branch offices)
・9 consolidated domestic subsidiaries and 1 affiliate.
●Social aspects : NGK Spark Plug Co., Ltd.
However, this report may also cover activities of subsidiaries
and affiliates inside and outside Japan. In such cases,
specific company names are indicated.
【Publishing Director】Norio Kato, President【Editor in Chief】Yukashi Ukai,
General Manager of CSR Promotion Department【Published】October 2009
（The next report is planned to be published in September 2011.
/The previous report was published in September 2009.）

1

Environmental & Social Report 2010

Normal
35%
Good
65%

Satisﬁed
95%

OverallAmount of Information

Ｑ4

Poor 0%DesignPlease check the box or boxes that best
describe your situation and position.

■ 5．Environmental Conservation−Environmental declaration,
environmental policy, environmental
action plan

As a NGK Spark Plug Group
employee, family member,or ex-employee
10%−Environmental load from businessactivities

As a person working in CSR/
environmental aﬀairs
15%−Management

As a business associate
75%−Products

Editorial Policy

8. Civil Society ･･･････････････････････････････39

Too much
5%■ 6．Social Contribution

Products ･･･････････････････････････････････27

7. Employees ･････････････････････････････････33

Insuﬃcient 0%■Message from the President

Factory / Oﬃce ･･････････････････････････23

6. Social Contribution ･･････････････････････31

What did you ﬁnd particularly interesting?
(Top six)

Diﬃcult 0%

Easy
80%

A little50%

2. Consumers and Customers ････････････13

How did you ﬁnd our Environmental and Social
Report 2009?

Ｑ2

Importance and CompletenessWe have given consideration to the importance andcompleteness of the content of this document
giving reference to the“Environmental Reporting
guidelines (2007 version)” and “GRI Sustainability
Reporting Guidelines (Version 3)” issued by the
Ministry of the Environment of Japan.
Trustworthy
We have worked to improve the trustworthiness ofthe document by undergoing third party
examination, and verifying items including thecorrectness, neutrality, and verifiability of thecontent.
Application of Website
Places where you can look up more detailed
information on our website are marked with thismark: W eb . Please view the website data as well.
Information not marked with a URL within thisdocument can be viewed in the Environmental andSocial Report at our download corner.
http://www.ngkntk.co.jp/english/environment/
ecoreport.html

Ｑ5

Have you read any of our previously issued
reports?

Yes, every year
42%

No, this was
my ﬁrst time
37%

Yes, occasionally21%

Ｑ6

If you have any other comments or requests
regarding our environmental activities, pleasewrite them here.

■More and more people say that we need to reduce ourdependence on fossil fuels. Do you have any products
or technologies that can cope with this trend?
(Answer) See our feature article on the development
of SOFC (solid oxide fuel cell).
■I am concerned about the fact that the NGK Spark PlugGroup failed to meet noise requirements.
(Answer) We have already introduced eﬀective countermeasuresand have successfully reduced noise levels to meet requirements.
We will continue to implement appropriate noise control
measures to ensure that we will not cause disappointment again.

■Request to answer the questionnaire
Thank you for reading through our Environmental andSocial Report 2010. For the further improvement of thisreport, we kindly ask you to ﬁll in the foldout questionnaire.

Fax：＋81 52-872-9980
e-mail：csr@mg.ngkntk.co.jp＜Personal information protection policy＞ We will only use your personal information to delivery next year s report to you. Even when
we publish the results of thisquestionnaire, we will not show it in a form in which the

respondents can be identiﬁed.

Environmental & Social Report 201042

Environmental & Social Report 2010

Environmental & Social Report 2010NGK Spark Plug Group

During the preparation of this report
The purchase of the materials (paper, ink, etc.) comprising this report, and also
editing and printing related to this report, were carried out by an ISO14001certified company. Also, the materials (paper, ink, etc.) used do not containcadmium, lead, hexavalent chromium, mercury, polybrominated biphenyl (PBB),
or polybrominated diphenyl ether (PBDE).
Plate making: A CTP (Computer To Plate) method was used. As a result, film
and also developing fluid and fixing fluid accompanying the
manufacture of the film were rendered unnecessary, thus
reducing the consumption of resources and also waste.
Ink:

Paper:

Printing:

Ink that does not contain VOC (Volatile Organic Compound) wasused to minimize the generation of VOC. This ink also conforms
to the voluntary regulations (NL regulations) concerning ink ,which are voluntary regulations of the printing ink industry joint
association.
We used paper approced by FSC (Forest Stewardship Counsel).
This contributes to the conservation of the world s ongoing
forestation.
We incorporated a printing method that does not use dampening
solutions. No volatile organic compounds (isopropyl alcohol)
were used.

14-18 Takatsuji-cho, Mizuho-ku, Nagoya,
467-8525, Japan
http://www.ngkntk.co.jp■ Inquiries about this report
CSR Promotion Department
TEL : +81 52-872-6248 FAX : +81 52-872-9980
e-mail ： csr@mg.ngkntk.co.jp

日本特殊陶業は、
チャレンジ２５キャンペーンに参加しています。

This brochure uses recyclable paper.