NGK SPARK PLUG CO., LTD.

Sustainability Data Book

2019

Our CSR
We view CSR not just as a responsibility but as an opportunity to be accountable through review of the NGK SPARK PLUG’s GROUP’s economic,
environmental and social activities from a global perspective, to enhance corporate value, and to contribute to the sustainable development of societyin accordance with our Corporate Philosophy.

• Risk Management Policy• Human Resource Policy• Compliance Policy• Occupational Safety and• Information Security Policy

Health Basic Policy• Corporate Quality Policy• Social Contribution Policy• Information Disclosure Policy• Environmental Policy• Procurement Policy

CSR promotion system
CSR Committee
Chairman : President

Risk Management Dept.
(Secretariat)

Safety and
HealthCommittee

Quality
Committee

Environment
Committee

Confidentiality
Management
Committee

ExportControlCommittee

Compliance
Committee

CONTENTS
02

03

Corporate Governance

For Environmental Protection

Board of Directors and Board of Auditors

ISO14001 Certified Locations

Nomination and Remuneration for Directors

Compliance with Environmental
Laws and Regulations

Compliance
Political Donation
R&D

04

09

With Our Employees
Basic Philosophy
Diversity

06

Workplace Where Every Employee is Able to
Work Energetically07

Occupational Safety and Health08

With Our Shareholders and Investors

In this Sustainability Data Book, we

1516 Environmental Accounting

mainly include the information (numerical

1618 Social and Environmental

data) that attracts institutional investors

11

Prevention of Global Warming

non-financial information provided in our

13

Reducing the Amounts of Water Used

Integration Report and CSR website.

Reduction of Waste Generated

For details about our CSR activities,

Information Verification Reportand research organizations from amongplease refer to our CSR website:
https://www.ngkntk.co.jp/english/csr/
NGK SPARK PLUG Communication
Period covered
NGK SPARK PLUG Integrated Report

Fiscal year ended March 31, 2019
(From April 1, 2018 to March 31, 2019)

Inclusion in SRI Indexes
DetailSocial Contribution Activities

Editorial policy

Material Balance

Dialogue with Investors

With Local Communities andInternational Society

Environmental Communication

10

Summary05

1414 Hazardous Chemical Substances

Securities
ReportFinancial information

Shareholder
Newsletter

Corporate Governance
ReportBusiness Results
Briefing Presentation
Materials

CSR website andSustainability Data Book

*Unless otherwise indicated separately
Organizations covered
Indicated separately

Non-financial information

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201901

Corporate Governance

Board of Directors and Board of Auditors
Meetings of the Board of Directors are held regularly once a month as well as whenever necessary for deliberation and determination with respect toissues as prescribed in applicable laws and regulations or articles of incorporation as well as other managerial key issues, and also for supervision ofbusiness execution status in response to reports from the directors.
The Board of Auditors is composed of 4 auditors, 2 of which are outside auditors. Two full-time auditors serve to audit execution of duties by the
directors through regular opinion exchange with the representative director, and auditing of major offices and subsidiaries. Meanwhile, the outside
auditors serve to audit execution of duties by the directors through attendance at the Board of Directors.

Directors(fiscal year)

2014

2015

2016

2017

2018

Men (people)

10

9

9

9

9

Women (people)

0

1

1

1

1

Percentage of women (%)

0

10

10

10

10

Outside directors (independent officers) (people)

2

3

3

3

3

Percentage of outside directors (%)

20

30

30

30

30

Men (people)

4

4

3

3

3

Women (people)

0

0

1

1

1

Percentage of women (%)

0

0

25

25

25

Outside directors (independent officers)(people)

2

2

2

2

2

Frequency (times)

15

16

13

14

12

97.3

99.5

97.8

98.5

99.4

13

14

13

14

13

98.1

98.2

94.2

96.4

100

Auditors

Board ofdirectors

Average attendance rate (%)
Frequency (times)

Board ofauditors

Average attendance rate (%)[Scope of tabulation] NGK SPARK PLUG CO., LTD.

Nomination and Remuneration for Directors
We have established optional nomination/remuneration committee on April 2017 for rationality and transparency of nomination/determination of remuneration for the director. Since June 2017, targeting the directors and the corporate officers, we have introduced the share-based remuneration system of
performance-based type as the executive remuneration system with high transparency and objectivity based on business performance for the purposeof raising awareness of contribution to improvement of business results on the medium- to long-term basis, and enhancement of the corporate value.

Compensation for directors and auditors
Total amount ofcompensation(millions of yen)

Basic compensation

Bonus

Stock compensation

Number of targeted
officers

Directors(excluding outside directors)

468

312

100

55

10

Auditors(excluding outside auditors)

50

50

ー

ー

2

Outside directors

43

43

ー

ー

3

Outside auditors

28

28

ー

ー

3

Category of officers

Total amount by type (millions of yen)

*The amounts listed above include the amounts of compensation paid to three directors and one auditor who resigned following the end of the 118th Ordinary General
Meeting of Shareholders (held on June 26, 2018) .
*The amount of compensation to be paid to directors has the following limits based on the resolution made at the 117th Ordinary General Meeting of Shareholders (heldon June 29, 2017).
Total amount of compensation (excluding the total amount of bonuses): Up to 60 million yen a month
Total amount of bonuses: Up to 180 million yen a year
Also based on the resolution made at the 117th Ordinary General Meeting of Shareholders, performance-linked stock compensation of up to 1,000 million yen in total
will be paid to directors and corporate officers over four fiscal years from April 1, 2017 to March 31, 2021.
The amount of compensation paid to auditors has the following limits based on the resolution made at the 106th Ordinary General Meeting of Shareholders (held on
June 29, 2006):
Total amount of compensation (excluding total amount of bonuses): Up to 10 million yen a month
Total amount of bonuses: Up to 10 million yen a year
NGK SPARK PLUG CO., LTD. Sustainability Data Book 201902

Corporate GovernanceCompliance
We have opened the “Corporate Ethics Helpline” as an in-house reporting system that encourages employees to consult regarding compliance.
Regarding consultations and reports received, facts are investigated with discretion, so the reporting employee is not identified and does not feel
uncomfortable, and if problems are confirmed, they are dealt with promptly.
(fiscal year)

2014

2015

2016

2017

2018

Consultation requests/
reports made internally (cases)

25

50

54

65

73

[Scope of tabulation] NGK SPARK PLUG Group [Calculation method] Number of cases of consultation requests/reports received through the Corporate Ethics Helpline

Political Donation
In order to maintain sound and normal relationships with the political circles, we ensure compliance with the Political Funds Control Act and will nevermake donations to individual politicians. In principle we will also make no donations to political parties and political fund-managing organizations.
(fiscal year)

2014

2015

2016

2017

2018

Political donations (cases)

0

0

0

0

0

Total amount (yen)

0

0

0

0

0

[Scope of tabulation] NGK SPARK PLUG CO., LTD.

R&D
By making use of optimal technologies and our past experiences, we are widely conducting R&D activities to propose new value to people across theworld.
(fiscal year)

2014

2015

2016

2017

2018

R&D expenses (millions of yen)-

23,123

23,41625,28328,071

Ratio of R&D expenses to sales (%)

-

6.03

6.28

6.17

6.60

[Calculation method] Annual R&D expenses including those for improving existing products and for applied research

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201903

With Our Employees

Basic Philosophy
Human resources are the most important management resource. We promote the sustainable growth of the NGK SPARK PLUG Group by striving forhuman resources development that respects the diversity and individuality of our employees and by encouraging individual employees to reach theirown full potential, to grow and to participate actively in a state of physical and mental health.

Total number of employees

Total number of employees(fiscal year)

2014

2015

2016

2017

2018

NGK SPARK PLUG CO., LTD.
(people)

5,823

5,829

5,719

5,727

5,767

NGK SPARK PLUG Group(people)13,197 14,524 14,926 15,322 15,994■■ NGK SPARK PLUG CO., LTD. ■■ NGK SPARK PLUG Group（Number of persons）

20,00016,000[Calculation method] NGK SPARK PLUG CO., LTD. : Regular employees as of March 31
NGK SPARK PLUG Group : As of March 31

12,00013,197

14,524

14,92615,322

15,994

8,000

5,823

5,829

5,719

5,767

5,727

4,000

0

2014

2015

2016

2017

2018 （fiscal year）

Temporary employees(fiscal year)
Temporary employees (people)

2014

2015

2016

2017

2018

−

313

346

303

505

[Scope of tabulation] NGK SPARK PLUG CO., LTD. [Calculation method] As of March 31

Status of employees
2014

2015

2016

2017

2018

Men (aged)

38.3

38.4

38.6

38.6

39.0

Women (aged)

35.5

35.5

35.9

35.9

36.9

Total (aged)

37.8

37.9

38.2

38.2

38.6

Men (years)

16.3

16.3

16.4

16.4

16.8

Women (years)

14.8

14.9

15.2

15.2

16.1

Total (years)

16.1

16.1

16.2

16.2

16.7

6,440,671

6,607,006

6,767,466

6,681,684

6,912,014

Total employee
turnover rate (%)

2.60

2.52

2.57

2.06

3.13

Voluntary employee
turnover rate (%)

1.46

1.09

1.08

1.42

1.83

(fiscal year)

Average age

No. of years of service

Average annual salary (yen)Turnover rate

[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Average age/No. of years of service : Calculated based on the number of regular employees as of March 31
Total employee turnover rate : Calculated based on the number of employees who retired / quit the company
Voluntary employee turnover rate : Calculated based on the number of employees who quit the company for personal reasons

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201904

With Our Employees

Diversity
We consider diversity to be one of our most important management strategies as we believe that diversity and inclusion are essential for companies toattain sound growth and ensure happiness for all employees. We strive to promote diversity in order to utilize new values and ideas coming from an
employee-friendly workplace that accepts different people regardless of their gender, age, disabilities or nationality.
(fiscal year)

2014

2015

2016

2017

2018

Men (people)

4,906

4,909

4,822

4,699

4,730

Women (people)

917

920

897

1,028

1,037

Percentage of women (%)

15.7

15.8

15.7

18.0

18.0

6

8

10

12

15

0.66

0.81

1.07

1.24

1.52

26

28

28

27

26

Percentage of women (%)

2.68

2.81

2.68

2.49

2.28

Percentage of women (%)

4.91

5.54

5.87

6.68

7.20

Percentage of disabled employees (%)

1.80

1.82

1.90

2.17

2.21

Reemployed (people)

228

229

251

223

204

Regular employees

Women (people)
Manager
Percentage of women (%)
Women (people)
Supervisor
Generalist(Classified, Considered)[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Regular employees : As of March 31
Manager,Supervisor,Generalist : As of April 1, including employees temporarily transferred to Group companies
Percentage of Disabled Employees : As of March 31, including employees temporarily transferred to Group companies and the special subsidiary in Japan
Reemployed : As of March 31, including employees temporarily transferred to Group companies

Number of female employees in a managerial posts■■（Number of persons）

Supervisor

Manager■■

50

Supervisor

32

8

10

6.68

41

39

38

36

Manager

12

15

4.91

5.54

28

28

27

26

0

2.68

2.81

0.66

0.81

2015

2016

2017

2.68

2.49

1.07

1.24

2016

2017

2

0

2014

5.87

4

20
26

7.20

6

6

10

Generalist (Classified, Considered)

（%）

8

40
30

Proportion of female employees

2018（fiscal year）

2014

2015

Percentage of disabled employees

Number of reemployed under the system（%）（Number of persons）

3

2.28

1.52

2018（fiscal year）

300
251
2.17

2
1.80

1.82

228

2.21

229

223

200

204

1.90

1

100

0

0

2014

2015

2016

2017

2018（fiscal year）

2014

2015

2016

2017

2018（fiscal year）

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201905

With Our Employees

Workplace Where Every Employee is Able to Work Energetically
We are promoting initiatives improve the work-life balance of employees. As a part of it, we have launched a “Labor Reform Committee” with both
employees and employers and reviewed the work-life balance of our employees aimed at becoming a company where every employee is able to work
energetically.

Working hours(fiscal year)

2014

2015

2016

2017

2018

Prescribed working hours(hours/year and person)

1,899

1,899

1,899

1,899

1,899

Actual working hours(hours/year and person)

2,016

1,981

1,986

1,993

1,994

22

20

20

21

22

Average overtime working hours(hours/month)[Scope of tabulation] NGK SPARK PLUG CO., LTD. [Calculation method] Excluding employees temporarily transferred to Group companies and those on leave

Paid holidays(fiscal year)

2014

2015

2016

2017

2018

Paid holidays granted to employees (day(s))

19.24

19.19

19.23

19.31

−

Paid holidays taken by employees (day(s))

14.20

14.42

14.85

15.41

−

Rate of usage (%)

72.12

73.39

75.64

78.52

−

[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Calculated for a fiscal year from October to next September (example : fiscal 2017 was started in October 2017 and ended in September 2018),
excluding employees temporarily transferred to Group companies and those on leave

Labor union(fiscal year)

2014

2015

2016

2017

2018

The number of NGK SPARK PLUG
Group labor union members (people)

5,413

5,373

5,486

5,590

6,438

[Scope of tabulation] 2014-2017 : NGK SPARK PLUG CO., LTD. 2018 : NGK SPARK PLUG CO., LTD., Ceramic Censor, Nittoku Supertech Tounou and Nittoku Supertech WKS[Calculation method] As of April 1

Human resource development(fiscal year)

2014

2015

2016

2017

2018

Total hours of training (hours)

88,33382,05984,81686,252

81,632[Scope of tabulation] NGK SPARK PLUG CO., LTD. [Calculation method] Calculated for the training (level-specific, global, etc.) provided by the Strategic Human Resources
Department by multiplying the number of hours with the number of trainees

External evaluation
We were selected to be one of
the companies excellent in
women’s empowerment in theNadeshiko Brand program
implemented jointly by the
Ministry of Economy, Trade andIndustry and the Tokyo Stock
Exchange.

In 2019, we were included in the“Corporate Health Achievement
Award Winners – White 500” forthe third year in a row under the
program implemented jointly by
the Ministry of Economy, Tradeand Industry and Nippon Kenko
Kaigi.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201906

With Our Employees

Maternity/child care/long-term nursing care leave
2014

2015

2016

2017

2018

56

44

62

35

61

Men (people)

4

2

2

6

4

Women (people)

49

46

56

42

46

96

100

96

95

100

39

25

36

35

42

1

2

1

1

2

0

0

0

0

0

(fiscal year)
Employees who took maternity leave (%)
Employees who tookchild care leave

Percentage of employees who returned towork after taking child care leave (%)
Users of the short working hour systemfor child care (people)
Employees who took
nursing care leave (people)
Users of the short working hour system
for nursing care (people)[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Employees who took maternity leave : Number of employees
whose maternity leave started in the fiscal year
Employees who took child care leave : Number of employees
whose child care leave started in the fiscal year
Percentage of employees who returned to work after taking childcare leave : Percentage of employees who returned to work among
those whose child care leave period expired in the fiscal year
Users of the short working hour system for child care : Number of
employees who became users of the system in the fiscal year
Employees who took nursing care leave : Number of employees
whose nursing care leave started in the fiscal year
Users of the short working hour system for nursing care : Numberof employees who became users of the system in the fiscal year

Number of employees using the leave schemes■■Child care leave (woman)Child care leave (man)■■（Number of persons）

60
50

58
53
4

48

Nursing care leave

2
50

48

2

4

6

40
30
20

■■

56
49

46

42

46

2

10
1

2

1

1

2014

2015

2016

2017

0

2018（fiscal year）

Occupational Safety and HealthWith a view to providing comfortable workplaces with zero occupational accidents, we have been conducting various safety activities for theprevention of accidents other than recurrence prevention. Aiming at the establishment of a safety culture from the viewpoint of “personnel,” “object,”and “mechanism,” we are taking the initiative to assign the first priority to safety.
(fiscal year)

2014

2015

2016

2017

2018

Total accident frequency rate
(Including temporary employees) (%)
Frequency rate of accidents requiring leave from work
(Including temporary employees) (%)
Frequency rate of occupational diseases(Including temporary employees) (%)

0.65

1.06

0.74

0.63

1.08

0.16

0.08

0.08

0.08

0.08

0

0

0

0

0

Frequency rate
1.5

NGK SPARK PLUG (all accidents)
NGK SPARK PLUG (accidents requiring leave from work)
Electrical machinery and appliance manufacturing business (accidents requiring leave from work) [reference]

1.08

1.06

1.0

0.74

0.65
0.5

0.63
0.51

0.08

0.08

0.08

0.08

2015

2016

2017

2018（fiscal year）

0.45

0.16

2014

0.58

0.54
0.41

0

[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Total accident frequency rate : Total number of victims per 1million
working hours
Total accident frequency rate=Number of victims of all occupational
accidents÷Total working hours×1million hours
Frequency rate of accidents requiring leave from work : Number ofvictims who took leave per 1million working hours
Frequency rate of accidents requiring leave from work=Number ofvictims of accidents requiring leave from work÷Total working
hours×1million hours
Frequency rate of occupational diseases : Number of employees who
took leave due to occupational diseases per 1million working hours
Frequency rate of occupational diseases=Number of employees who
took leave due to occupational diseases*÷Total working 		hours×1million hours*Occupational diseases include heatstroke, backache, poisoning bychemical substances and other diseases as defined by the Ministry of
Health, Labour and Welfare.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201907

With Our Shareholders and Investors

Dialogue with Investors
We attribute importance to having opportunities to make dialogue with our shareholders and investors with a focus on “active communication” and“fair information disclosure” so that we can meet a variety of their needs.
(fiscal year)

2014

2015

2016

2017

2018

Dialogue with institutional investors (times)

205

204

259

303

294

Dialogue through overseas investor roadshow meetings(times)Number of participants in briefing sessions
for individual investors (people)

57

49

56

88

89

925

489

1,148

1,117

1,195

[Scope of tabulation] NGK SPARK PLUG CO., LTD.

Inclusion in SRI Indexes
The NGK SPARK PLUG Group is a member of the following indexes related to SRI (social responsible investing) : (As of March 31, 2019)

With Local Communities and International Society

Social Contribution Activities
The NGK SPARK PLUG Group respects local culture and customs in our established sites of the respective regions in the world while engaging insmooth communication with local communities. As members of those communities, we aim to work together in building a comfortable society, while
striving to participate in regional development, environmental preservation, and other activities that contribute to society.
Type of contribution

Total amount (millions of yen)

Cash contributions

248.47

Time: employee volunteering during paid working hours

13.35

In-kind giving: product or services donations, projects / partnerships or similar

1.66

Management overheads

35.20[Scope of tabulation] NGK SPARK PLUG GroupNGK SPARK PLUG CO., LTD. Sustainability Data Book 201908

For Environmental Protection

ISO14001 Certified Locations
In order to make progress with systematic, effective environmental preservation activities, we have established an environmental management systemthat is based on our Group-wide environmental policy. Under this system, all Group companies strive to achieve the Eco Vision.

Certification covering multiple units (Scope of applicability)
Country

Name of factories and companies

Certification obtained individually

Certified initially in:Country

NGK SPARK PLUG CO., LTD.

Japan

Headquarters and Nagoya Plant

99. 8

Komaki Plant, Miyanojo Plant, Ise Plant

00. 12

Takenami Plant

07. 1

Inuyama Logistics Center

99. 8

NITTOKU ALPHA SERVICE CO., LTD.
CERAMIC SENSOR CO., LTD.

Name of factories and companies

Certified initially in:
04. 10NTK CERATEC CO., LTD.
NGK SPARK PLUGS (U.S.A.), INC.

U.S.A.

00. 7

WV Plant
WELLS VEHICLE ELECTRONICS, L.P.

03. 3

MexicoBUJIAS NGK DE MEXICO S.A. DE C.V.

12. 11

99. 8

BrazilCERAMICA E VELAS DE IGNICAONGK DO BRASIL LTDA.

01. 1200. 12

FranceNGK SPARK PLUGS (FRANCE) S.A.S.

00. 5

U.K.

NGK SPARK PLUGS (UK) LTD.

01. 12NGK SPARK PLUG EUROPE GmbH04. 11SIAM NGK SPARK PLUG CO., LTD.

02. 11NGK SPARK PLUGS (THAILAND) CO., LTD.

12. 10NGK SPARK PLUGS (ASIA) CO., LTD.

16. 11WOOJIN INDUSTRY CO., LTD.

05. 4

NTK TECHNICAL CERAMICS KOREA CO., LTD.

06. 4

NGK SPARK PLUGS MALAYSIA BERHAD

06. 3

NGK SPARK PLUG〔SHANGHAI〕CO., LTD.

07. 4

CHANGSHU NGK SPARK PLUG CO., LTD.

13. 3

PT NGK BUSI INDONESIA

07. 10NTK CERAMIC CO., LTD.
Komaki Plant

00. 12Iijima Plant, Kani Plant

02. 12

CS NAKATSUGAWA CO., LTD.

16. 12NANSEI CERAMIC CO., LTD.

02. 12

KAMIOKA CERAMIC CO., LTD.

04. 1

GermanyJapan
ThailandSouth Korea
SparkTec WKS CO., LTD.
Head Office Plant

04. 1

Satsuma Plant

09. 12

Malaysia

China
04. 1

NICHIWA KIKI CO., LTD.

Indonesia

SparkTec TONO CO., LTD.
Nino Headquarters Plant

15. 12India

NGK SPARK PLUGS (INDIA) PVT. LTD.

10. 12

Tono Plant

04. 1

South Africa

NGK SPARK PLUGS SA (PTY) LTD.

08. 4

Compliance with Environmental Laws and Regulations
To ensure compliance with environmental laws and regulations as well as agreements with local municipalities, we set stringent voluntary standards
to prevent violations and complaints.When violations or complaints occurred, we took measures to prevent recurrence immediately.

2014

2015

2016

2017

2018

Environment-related non-compliance (cases)

3

5

2

0

0

Environment-related complaints (cases)

2

0

2

1

3

(fiscal year)[Scope of tabulation] Environment-related non-compliance : NGK SPARK PLUG Group
Environment-related complaints : NGK SPARK PLUG CO., LTD. and Groups in JapanNGK SPARK PLUG CO., LTD. Sustainability Data Book 201909

For Environmental Protection

Material Balance
Environmental burdens from business activities ( Fiscal year ended March 31, 2019 )

466,878 MWh
City gas
Used in offices and plants

19.64 million m

◯

◯

◯

◯

◯

Suppliers

Released into sewerage systems and public
waters; consumption volume of tap water andwell water.

◯

◯

◯

◯

◯

◯

◯

◯

◯

◯

1,540,000 m
Chemical substances (PRTR)
Released into waters and notified
by sites◯◯

Green house gas emissions
Energy-based and non-energy-based
Green House Gas Emissions

◯

◯

◯

◯

7,595 tons◯◯

Research,
Design,Manufacturing,Sales

325,700 tons-CO

2

Chemical substances (PRTR)
Released into air and notified
by sites

Waste generated(and treated on commission)

◯

Total

◯

◯

◯

Products

576 MWh

Waste

Renewable energy
Generated by solar power generatorsand small hydroelectric generators◯ *4

133 tons

1,102 kL[crude oil equivalent]

20,103 tons

Effectively used(including waste sold)18,262 tons◯

Not effectively used

Tap water, well water
Tap water and groundwater used◯◯

1,840 tons

◯

3

PRTR
Handled and notified by sites

923 tons

1,031kL[crude oil equivalent]

Logistics◯◯

Logistics

Water

◯

0.6 tons

Output into air

EnergyLPG
Used in offices and plants and fortesting, travel and transportation

Other fuels
Used in offices and plants andfor testing, travel and transportation

Chemical substances

◯

3

3

Logistics

Overseascompanies *3◯

Electricity
Used in offices and plants

Fuels used for transportation(outsourced)
Fuels used for transportation bytrucks, ships, and aircraft◯

Wastewater

55,000 tons

1,540,000 m

Groupcompanies
in Japan *2

OUTPUTNGK SPARK
PLUG

Overseascompanies *3

NGK SPARK
PLUG

Ceramic and metal materials
Ceramic andmetal materials purchased

Scope covered *1

OutputOutputinto
intowaters
water

原材料

Raw materials

INPUT

Group
companies
in Japan *2

Scope covered *1CO2 emitted by external transporters
CO2 emissions due to externallycommissioned transportation

2,742 tons-CO

2

Product shipment◯◯

Customers

Customers*1 The covered scope of each amount reported in INPUT and OUTPUT is indicated with ○.
*2 Domestic group companies: (scope of consolidated certification) NITTOKU ALFA SERVICE CO., LTD., CERAMIC SENSOR CO., LTD., NTK CERAMIC CO., LTD., CERAMIC SENSOR NAKATSUGAWA CO.,LTD., NANSEI CERAMIC CO., LTD.,
KAMIOKA CERAMIC CO., LTD., Spark Tec WKS CO., LTD., NICHIWA KIKI CO., LTD., Spark Tech TONO CO., LTD., (outside the scope of consolidated certification) NITTOKU Smile NITTOKU DENSHI CO., LTD., NTK CERATEC CO., LTD.
*3 Overseas group companies: (manufacturing & sales organization) NGK SPARK PLUG [ SHANGHAI ] CO., LTD., CHANGSHU NGK SPARK PLUG CO., LTD., WOOJIN INDUSTRY CO., LTD., NTK TECHNICAL CERAMICS KOREA CO., LTD.,NGK SPARK PLUGS (THAILAND) CO., LTD., SIAM NGK SPARK PLUG CO., LTD., NGK SPARK PLUGS (ASIA) CO., LTD., NGK SPARK PLUGS MALAYSIA BERHAD, PT NGK BUSI INDONESIA, NGK SPARK PLUGS (INDIA) PVT. LTD., NGKSPARK PLUGS (U.S.A.), INC., Wells Vehicle Electronics, L.P., CERAMICA E VELAS DE IGNICAO NGK DO BRASIL LTDA., NGK SPARK PLUGS (FRANCE) S.A.S., NGK SPARK PLUGS SA (PTY) LTD, (sales organization) TAIWAN NGK SPARKPLUG CO., LTD., NGK SPARK PLUGS (VIETNAM) CO., LTD., NGK SPARK PLUGS (PHILIPPINES), INC., NGK SPARK PLUG (AUSTRALIA) PTY. LTD., NTK TECHNOLOGIES, INC., NGK SPARK PLUGS CANADA LIMITED., BUJIAS NGK DE
MEXICO S.A. DE C.V., BUJIAS NGK DEL ECUADOR CIA LTDA., NGK SPARK PLUG EUROPE GmbH, NGK SPARK PLUGS (UK) LTD., LIMITED LIABILITY COMPANY NGK SPARK PLUGS (EURASIA), NGK SPARK PLUG MIDDLE EAST FZE*4 Overseas companies only collect results of CO2 emissions.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201910

For Environmental Protection

Prevention of Global Warming
As a part of our activities to aid in mitigating climate change from medium and long-term perspectives, we set targets for CO2 emission basic unit in
fiscal 2020 under Global Eco Vision 2020. To attain these targets, we are working to reduce our energy use.

Energy consumption
2014

2015

2016

2017

2018

387,476

403,414439,276

449,858

466,878

203

193

346

391

576

City gas (GJ)

714,190

726,808

819,167

866,965

904,294

LPG (GJ)

399,553379,269

390,941

390,751

385,837

Other fuels (GJ)

89,92581,65875,39439,07742,597(fiscal year)
Nonrenewable electricity purchased (MWh)Renewable energy generated (MWh)[Scope of tabulation] NGK SPARK PLUG Group[Calculation method] Other fuels : Gasoline,Diesel,Kerosene and Heavy oil

Greenhouse gas emissions (Scope 1,2)
(fiscal year)

2014

2015

2016

2017

2018

Total direct GHG emissions [Scope 1] (10,000 tons-CO2)

6.51

6.40

6.95

6.84

7.01

Total indirect GHG emissions [Scope 2] (10,000 tons-CO2)

21.10

22.23

24.23

24.64

25.56

Scope 1+2 (10,000 tons-CO2)

27.61

28.63

31.17

31.48

32.57

CO2 emission basic unit

1.33

1.30

1.27

1.18

1.15

[Scope of tabulation] Scope 1 . Scope 2 . Scope 1+2 : NGK SPARK PLUG GroupCO2 emission basic unit : Groups in Japan (with integrated certification)[Calculation method] Scope 1 : As for emissions by overseas Group companies, the amount was calculated by using the emission factor used in Japan.
Scope 2 : Calculated by using the CO2 emission factor of 0.579 kg CO2/kWh in Japan, while in other countries calculated by using the CO2 emission
factor given to each of the countries by the GHG Protocol.

Trend in CO emissions from energy use
2（10,000 tons-CO2）

40

30

27.61

28.63

3.28

31.17

31.48

3.69
1.29

5.04
1.51

5.37
1.29

23.65

24.63

24.82

32.57
6.06
1.36

Asia
36.1%

20

24.33

Africa
1.2%

25.15

10

Europe
8.2%

0

2014

2015

2016

2017

Regional
composition ofemissionsoutside Japan

North
America
34.7%
South America
19.8%

2018（fiscal year）

Groups in Japan (with integrated certification)■ Groups in Japan (without integrated certification)■ Outside Japan■NGK SPARK PLUG CO., LTD. Sustainability Data Book 201911

For Environmental Protection

Greenhouse gas emissions (Scope 3)(10,000 tons-CO2)(fiscal year)

2016

2017

2018

1

Purchased goods and services

7.24

7.91

8.07

2

Capital goods

11.77

12.54

17.13

3

Fuel- and energy-related emissions not included inscope 1 or scope 2

2.90

3.07

3.10

4

Upstream transportation and distribution

0.26

0.25

0.27

5

Waste generated in operations

0.08

0.10

0.39

6

Business travel

0.19

0.20

0.21

7

Employee commuting

0.69

0.71

0.74

8

Upstream leased assets

9

Downstream transportation and distribution

―

―

―

10

Processing of sold products

―

―

―

11

Use of sold products

57.75

54.44

63.31

12

End-of-life treatment of sold products

0.02

0.02

0.02

13

Downstream leased assets

N/A

14

Franchises

N/A

15

Investments

N/A

1.67

1.90

1.90

[Scope of tabulation] NGK SPARK PLUG Group[Calculation method] 1：Calculated by multiplying the figures shown in the material balance sheet by the relevant values retrieved from the database of emissions unit values
built for the calculation of organizations’ greenhouse gas emissions across their supply chains
2：Calculated by multiplying the cost of acquiring tangible fixed assets (shown in the financial statements) by the relevant value retrieved from thedatabase of emissions unit values built for the calculation of organizations’ greenhouse gas emissions across their supply chains
3：For power consumption, calculated by multiplying the amount used by the relevant value retrieved from the database of emissions unit values built forthe calculation of organizations’ greenhouse gas emissions across their supply chains. For gases, etc., calculated by multiplying the amount usedwith the relevant value retrieved from the IDEA LCA database.
4：Data notified (for products) by shippers specified under the Act on Rationalizing Energy Use
5：Calculated by totaling CO2 emissions from the treatment of waste (calculated by multiplying the cost of waste treatment by the relevant value retrieved
from the IDEA LCA database) and CO2 emissions from the transportation of the company’s waste (data on waste to be notified by shippers specified
under the Act on Rationalizing Energy Use).
6：Calculated by multiplying the number of employees by the relevant value retrieved from the database of emissions unit values built for the calculationof organizations’ greenhouse gas emissions across their supply chains
7：Calculated by multiplying the result of multiplying the number of employees by the number of their working days by the relevant value retrieved fromthe database of emissions unit values built for the calculation of organizations’ greenhouse gas emissions across their supply chains
1 1：Calculated by multiplying the amount of CO2 emissions per one ton of products calculated by using the Japan Auto Parts Industries Association’s
LCA tool by the weight of shipped products
12：Calculated by multiplying the weight of shipped products by the relevant value retrieved from the IDEA LCA database
15：Calculated by multiplying the amount of CO2 emitted by the five companies that are ranked in the top five in terms of the monetary value of the stocks
owned by NGK SPARK PLUG by the stockholding ratio

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201912

For Environmental Protection

Reducing the Amounts of Water Used
As measures to combat the depletion of water resources, we recognize the amount of tap and well water used in our business activities as water
resources, and make efforts to reduce usage.
(fiscal year)
Total water consumption (10,000 m )
3

2014

2015

2016

2017

2018

162

162

166

163

154

[Scope of tabulation] NGK SPARK PLUG Group

Trend in tap and well water used
（10,000㎥）

200

162
150

166

162
26

28
4

163
38

38

5

4

36
5

100

50

136

130

124

2015

2016

Regional
composition ofusage
outside Japan

Asia
59.6%

113

120

0

2014

Africa
0.5%

154

North
America
5.9%
SouthAmerica
32.0%
Europe1.9%

2018（fiscal year）

2017

Groups in Japan (with integrated certification)■ Groups in Japan (without integrated certification)■ Outside Japan■

Reduction of Waste Generated
We contribute to society by lowering defect rates in our manufacturing processes, reducing generated waste, and further treating waste to enable
recycling.
(fiscal year)

2014

2015

2016

2017

2018

Total waste generated (tons)

18,427

17,552

19,756

19,031

20,103[Scope of tabulation] NGK SPARK PLUG Group

Trend in waste generated（tons）

20,00018,427

15,00019,756
17,552

7,065

6,453

697

595

11,974

10,823

11,993

0

2014

2015

2016

20,103

7,305

6,134

10,0005,000

19,031

2017

7,966

773

667

10,953

11,469Africa
1.4%
Asia
34.9%
Europe5.1%

Regional
composition of
outputsoutside Japan

North
America
25.4%

South
America
33.2%

2018（fiscal year）

Groups in Japan (with integrated certification)■ Groups in Japan (without integrated certification)■ Outside Japan■NGK SPARK PLUG CO., LTD. Sustainability Data Book 201913

For Environmental Protection

Hazardous Chemical Substances
To respond appropriately to increasingly strict chemical substance regulations worldwide, we perform non-containment management for products andusage management within plants. For substances subject to the PRTR law, we are managing them appropriately by identifying the relevant amounts,
including treatment, release, and transfer amounts.
(fiscal year)

2014

2015

2016

2017

2018

Amount of PRTR substances treated (tons)

939.4

863.8

856.2

862.7

920.0

Amount of PRTR substances released (tons)

147.7

140.6

141.2

136.0

132.3

Toluene

140.3

131.1

130.3

125.6

120.9

Xylene

3.9

3.2

3.1

3.2

2.9

Other

3.5

6.3

7.8

7.2

8.6

[Scope of tabulation] Groups in Japan (with integrated certification)

Trend in PRTR substances released（tons）

160

148

141

3.5
3.9

120

6.3
3.2

141

7.8
3.1

136

132

7.2
3.2

8.6
2.9

80

140

131

130

121

126

40

0

2014
■

Toluene■Xylene

2015
■

2016

2018（fiscal year）

2017

Other

Environmental Communication
We are committed to fostering communication with local communities through environmental meetings and local cleanup activities to enhancecooperation with communities and earn more trust.
(fiscal year)
Number of participants in
our environment-related plant tours (people)
Number of participants in
our environmental meetings (people)
Number of participants in
our local clean-up activities (people)
On-site inspection at waste disposal company
facilities (cases)

2014

2015

2016

2017

2018

−

1,296

1,194

1,447

1,075

−

24

28

252

237

−

871

694

520

563

−

62

71

74

84

[Scope of tabulation] NGK SPARK PLUG Group[Calculation method] On-site inspection at waste disposal company facilities : Number of waste treatment sites where inspection was carried out on-site

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201914

For Environmental Protection

Environmental Accounting
Environmental conservation cost

(Unit : million yen)Classification

Costs
withinthebusinessarea

Investment
2017
2018

Major efforts

Expense2017
2018

Pollution prevention cost

Air/water pollution prevention and noise reduction

108

95

807

699

Global environmental
conservation cost

Global warming prevention, energy conservation

32

50

567

521

Resource circulation cost

Effective resource utilization,industrial waste treatment/disposal

58

81

711

744

198

226

2,086

1,964

Sub-total
Upstream & downstream cost

Employee environmental education,
EMS construction and operation

0

0

9

6

Management activity cost

Employee environmental education,
EMS construction and operation

19

11

961

894

R&D cost

R&D of products promoting environment preservation

1,331

1,488

10,272

8,626

Social activity cost

Nature protection, afforestation, environmental ads

0

0

283

12

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

9

0

Other costs

−

0

0

5

0

1,548

1,726

13,624

11,502

Total*Any inconsistency between an aggregate of all itemized ﬁgures and a “Total” ﬁgure is due to rounding of fractions.
[Scope of tabulation] Groups in Japan (with integrated certification)

Economic benefits associated with environmental conservation activities(Unit : million yen)

Area of recognized effect

2017

2018

Revenue

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

133.6

207.6

Energy cost saving achieved from energy conservation efforts

104.0

166.0

Reduction of water expenses through water saving

5.0

6.1

Waste disposal cost saving achieved by resource conservation and recycling efforts

12.0

9.1

254.6

388.8

Cost
saving

Total[Scope of tabulation] Groups in Japan (with integrated certification)

Quantity of environmental conservation benefits
2017

2018

Purchased electricity (GWh)

34,57235,239667

Gas (million m )

1,099

1,077

-22

LPG (million m )

7,149

6,954

-195

Tap water (m )725,635

708,464-17,171

Well water (m )475,779

421,390-54,389

863

920

57

248,216

251,549

3,333

10,683

11,376694

Not effectively used (tons)

270

93

-177

Amount of PRTR substances released into air
and water (tons)

136.0

132.3

-3.7

Energyconsumption33Effect measured with respect toresource input into operations

3

Water
consumption

3

Amount of PRTR substances treated (tons)
CO2 emission from energy consumption (tons)
Effect measured with respect toenvironmental load and waste frombusiness activities

Difference from theprevious fiscal year

Types of effect

Effect measured in the business area

Waste

Effectively used (tons)[Scope of tabulation] Groups in Japan (with integrated certification)[Calculation method] Energy consumption . CO2 emission from energy consumption : Excluding the amount used for and CO2 emitted from the transportation activities

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201915

Social and Environmental Information Verification Report

NGK SPARK PLUG CO., LTD. Sustainability Data Book 201916

NGK SPARK PLUG CO., LTD.
14-18 Takatsuji-cho, Mizuho-ku, Nagoya 467-8525

https://www.ngkntk.co.jp/
Public Relations Dept., Corporate Strategy Gr.
Phone: 81-52-872-5896 Fax: 81-52-872-5951