NGK SPARK PLUG CO., LTD.

Sustainability Data Book 2020

CSR and Sustainability Charter
We contribute to develop a sustainable society, thereby improving our corporate value.
• We build relations of trust with our stakeholders while making highly transparent decisions and actions.
• We cocreate and provide new value to solving social issues.

The Nittoku Way
Corporate
Philosophy

CSR andSustainability CharterLong-termManagement
Plan

Corporate
Codeof Conduct

Medium-termManagement
Plan

CSR Basic Policy

Quality
Products

Involvementby all• Risk Management Policy• Information Disclosure Policy• Compliance Policy• Environmental Policy• Human Rights Policy• Human Resource Policy• Quality Policy• Occupational Safety and Health Policy• Information Security Policy• Social Contribution Policy• Procurement Policy• Tax Policy

CSR and Sustainability Promotion System
CSR and Sustainability
Committee
Sustainability Promotion Dept.

Basic Traits
Shisei-Shinjitsu
Dokuritsu-Jiei

Shikai-Keitei
Risk
Management
Committee

Soshi-Kantetsu

Compliance
Committee

Quality
Committee

Information
Security
Committee

Environment
Committee

Safety and
HealthCommittee

Shared Values

CONTENTS
02 Environment

08 Social

Environmental burdens frombusiness activities
Material Balance

03

Environmental management

09

04

Providing Environmentally
Friendly Products
Responding to Climate Change

Diversity

06

Work-life balance

10

Human resource development

11

Occupational Safety and HealthCommunication with Stakeholders

Conservation of Water Resources

we mainly include the information

Nomination and Remuneration
for Directors

investors and research organizations from

Environmental Accounting

among non-financial information provided
in our Integration Report and CSR website.
For details about our CSR and

Political Donation

sustainability activities, please refer to our

R&D

CSR website:

Participation in Initiatives

https://www.ngkntk.co.jp/english/csr/

Information Verification Report

Period covered
Fiscal year ended March 31, 2020

Management of Chemical
Substances

07(numerical data) that attracts institutional

In-house Reporting System

15 Social and Environmental

Management of Waste

In this Sustainability Data Book,

Board of Directors and Board
of Auditors

14 Compliance

Social Contribution

12

Editorial policy

Corporate GovernanceStatus of employees

ISO14001 Certified Locations
Compliance with Environmental
Laws and Regulations

13 Governance

Global Human Resource
Management(From April 1, 2019 to March 31, 2020)*Unless otherwise indicated separately

NGK SPARK PLUG Communication
Summary

Organizations covered

NGK SPARK PLUG Integrated Report

Indicated separately

DetailSecurities
ReportFinancial information

Shareholder
Newsletter

Corporate Governance
ReportBusiness Results
Briefing Presentation
Materials

CSR website andSustainability Data Book

Non-financial information

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202001

Environment
Environmental burdens from business activities

Material Balance
Environmental burdens from business activities ( Fiscal year ended March 31, 2020 )454,178MWh
City gas
Used in offices and plants

11.34 million m

◯

◯

◯

◯

◯

Suppliers

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

◯

◯

◯

◯

◯

◯

◯

◯

◯

◯

1,480,000 m
Chemical substances (PRTR)
Released into waters and notified
by sites◯◯

Green house gas emissions
Energy-based Green House Gas
Emissions

◯

◯

◯

◯

7,253 tons◯◯

Research,
Design,Manufacturing,
Sales

2

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

Total

◯

◯

◯

Products

278 MWh
Tap water, well water, river water
Tap water, ground water andriver water used

313,800 tons-CO

Waste generated(and treated on commission)

◯

Waste

Renewable energy
Generated by solar power generatorsand small hydroelectric generators◯

86 tons

8,234 kL[crude oil equivalent]

21,874 tons

Effectively used(including waste sold)

19,212 tons◯

Not effectively used◯◯

2,662 tons

◯

3

PRTR
Handled and notified by sites

766 tons

965 kL[crude oil equivalent]

Logistics◯◯

Logistics

Water

◯

1.7 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

Overseas
groupcompanies *3◯

Electricity
Used in offices and plants

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

Wastewater

53,000 tons

1,480,000 m

Groupcompanies
in Japan *2

OUTPUTNGK SPARK
PLUG

Overseas
groupcompanies *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

2,567 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., 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., NGK SPARK 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 SPARK PLUG CO., LTD., NGK SPARKPLUGS (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 NGKDEL 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 FZENGK SPARK PLUG CO., LTD. Sustainability Data Book 202002

Environment

Environmental Management

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. As of the end of fiscal
2019, the ISO 14001 certification acquisition rate was 93% in terms of the rate of employees belonging to the certified sites.

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. 11

South Korea

NTK TECHNICAL CERAMICS KOREA CO., LTD.

06. 4

Malaysia

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. 10India

NGK SPARK PLUGS (INDIA) PVT. LTD.

10. 12South Africa

NGK SPARK PLUGS SA (PTY) LTD.

08. 4

NTK 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
ThailandSparkTec WKS CO., LTD.
04. 1

Head Office Plant

China
09. 12

Satsuma Plant

04. 1

NICHIWA KIKI CO., LTD.

Indonesia

SparkTec TONO CO., LTD.
Nino Headquarters Plant

15. 12

Tono Plant

04. 1

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. Against a violation or complaint that occurred, we take measures immediately, including those to prevent
recurrence.
(fiscal year)
Environment-related non-compliance (cases)
Environment-related complaints (cases)

2015

2016

2017

2018

2019

5

2

0

0

3

0

2

1

3

1

[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 202003

Environment

Providing Environmentally Friendly Products
We develop and supply environmentally friendly products, through which we aim to meet the expectations of customers across the world and also
contribute to the global environment.
(fiscal year)

2015

2016

2017

2018

2019

Sales ratio of precious metal plugs*

34

36

37

39

39

Sales ratio of wide range oxygen sensor + NOx Sensor*

22

24

26

34

41

*"Precious metal plug", "wide range oxygen sensor", and "NOx sensor " are types of environmentally friendly products and are selected as priority issues. We aim to increaseeach of the “sales ratio of precious metal plugs” and the “sales ratio of wide range oxygen sensor + NOx sensor” to not less than 50%

Responding to Climate Change
As a part of our activities to contribute to mitigating climate change, 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, thereby also curbing CO2 emissions from the use.

Energy consumption
2015

2016

2017

2018

2019

Total energy consumption（MWh）

736,928805,055

807,804

834,334

793,216

Total nonrenewable energy consumption（MWh）

736,735

804,709807,413

833,758

792,938

Fuels (MWh)333,321

365,433

357,555

366,880

338,760

Electricity (MWh)403,414439,276

449,858

466,878

454,178

193

346

391

576

278

(fiscal year)

Total renewable energy generation（MWh）[Scope of tabulation] NGK SPARK PLUG Group

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

2015

2016

2017

2018

2019

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

6.40

6.95

6.84

7.01

6.46

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

22.23

24.23

24.64

25.56

24.93

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

28.63

31.17

31.48

32.57

31.39

CO2 emission basic unit

1.30

1.27

1.18

1.15

1.15

[Scope of tabulation] Scope 1 , Scope 2 , Scope 1+2 : NGK SPARK PLUG GroupCO2 emission basic unit : NGK SPARK PLUG CO., LTD. and Groups in Japan (with integrated certification)[Calculation method] Scope 1 : Calculated by using the global warming potential as provided for in the Act on Promotion of Global Warming Countermeasures.
Scope 2 : Calculated by using the global warming potential as provided for in the Act on Promotion of Global Warming Countermeasures in Japan,
while in other countries calculated by using the emission factor given to each of the countries by the GHG Protocol.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202004

Environment

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

2016

2017

2018

2019

1

Purchased goods and services

7.24

7.91

8.07

7.75

2

Capital goods

11.77

12.54

17.13

17.01

3

Fuel- and energy-related emissions notincluded in scope 1 or scope 2

2.90

3.07

3.10

3.10

4

Upstream transportation and distribution

0.26

0.25

0.27

0.25

5

Waste generated in operations

0.08

0.10

0.39

0.01

6

Business travel

0.19

0.20

0.21

0.21

7

Employee commuting

0.69

0.71

0.74

0.76

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

62.52

12

End-of-life treatment of sold products

0.02

0.02

0.02

0.07

13

Downstream leased assets

N/A

14

Franchises

N/A

15

Investments

1.90

1.94

N/A

1.67

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：Extracted from the data notified (for products) by shippers specified under the Act on Rationalizing Energy Use
5：Calculated by totaling CO2 emissions from the transportation of the company’s waste (extracted from the data notified (for waste) by shippers specified
under the Act on Rationalizing Energy Use and CO2 emissions from the treatment of waste (calculated by multiplying the cost of waste treatment (forfiscal years up to fiscal 2018) or the amount of waste treated (for fiscal 2019) by the relevant value retrieved from the IDEA LCA database)
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 202005

Environment

Conservation of Water Resources
We contribute to the resolution of water resource issues by recognizing the water used in our business activities as water resources, and by
undertaking the effective usage, as measures to combat the depletion of resources.
(fiscal year)
Total water consumption (10,000 m )
3

2015

2016

2017

2018

2019

162

167

163

154

148

[Scope of tabulation] NGK SPARK PLUG GroupManagement of Waste
We contribute to society by improving our manufacturing processes to reduce the generation of waste and prevent the depletion of resources andfurthermore by treating waste in a manner that facilitates recycling.
(fiscal year)

2015

2016

2017

2018

2019

Total waste generated (tons)

17,552

20,522

19,966

21,451

21,874

Effectively used (tons)

16,16818,65017,447

19,49019,212Not effectively used (tons)

1,383

1,871

2,519

1,960

2,662

[Scope of tabulation] NGK SPARK PLUG Group(fiscal year)
On-site inspection at waste disposal company
facilities (cases)

2015

2017

2017

2018

2019

62

71

74

84

82

[Scope of tabulation] NGK SPARK PLUG CO., LTD. and Groups in Japan[Calculation method] On-site inspection at waste disposal company facilities : Number of waste treatment sites where inspection was carried out on-site

Management of 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)

2015

2016

2017

2018

2019

Amount of PRTR substances treated (tons)

863.8

856.2

862.7

920.0

765.7

Amount of PRTR substances released (tons)

140.6

141.2

136.0

132.3

88.1

Toluene (tons)

131.1

130.3

125.6

120.9

77.1

Xylene (tons)

3.2

3.1

3.2

2.9

1.6

Other (tons)

6.3

7.8

7.2

8.6

9.4

[Scope of tabulation] NGK SPARK PLUG CO., LTD. and Groups in Japan (with integrated certification)

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202006

Environment

Environmental Accounting
Environmental conservation cost

(Unit : million yen)Classification

Costs
withinthebusinessarea

Major efforts

Investment
2018
2019

Expense2018
2019

Pollution prevention cost

Air/water pollution prevention and noise reduction

95

624

699

644

Global environmental
conservation cost

Global warming prevention, energy conservation

50

70

521

229

Resource circulation cost

Effective resource utilization,industrial waste treatment/disposal

81

55

744

318

226

749

1,964

1,191

Sub-total
Upstream & downstream cost

Employee environmental education,
EMS construction and operation

0

0

6

5

Management activity cost

Employee environmental education,
EMS construction and operation

11

10

894

320

R&D cost

R&D of products promoting environment preservation

1,488

1,395

8,626

7,898

Social activity cost

Nature protection, afforestation, environmental ads

0

0

12

4

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

0

0

Other costs

−

0

0

0

0

1,726

2,153

11,502

9,417

Total

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

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

Area of recognized effect

2018

2019

Revenue

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

207.6

123.6

Energy cost saving achieved from energy conservation efforts

166.0

126.1

Reduction of water expenses through water saving

6.1

2.1

Waste disposal cost saving achieved by resource conservation and recycling efforts

9.1

0.8

388.8

252.6

Cost
saving

Total[Scope of tabulation] NGK SPARK PLUG CO., LTD. and Groups in Japan (with integrated certification)

Quantity of environmental conservation benefits
2018

2019

Purchased electricity (GWh)

35,23934,695-544

Gas (million m )

1,077

1,130

53

LPG (million m )

6,954

6,669

-285

Tap water (m )708,464

731,407

22,943Well water (m )421,390363,704‐57,686

920

764

‐156

251,549

249,023-2,526

11,376

11,161-215

Not effectively used (tons)

93

68

-25

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

132.3

86.3

-46.0

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] NGK SPARK PLUG CO., LTD. and 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 202007

SocialGlobal Human Resource Management

Status of employees
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(fiscal year)

2015

2016

2017

2018

2019

NGK SPARK PLUG Group (people)

14,524

14,92615,322

15,994

16,430NGK SPARK PLUG CO., LTD. (people)

5,829

5,719

5,851

5,863

5,883

[Calculation method] NGK SPARK PLUG Group : As of March 31 *Adopted IFRS for fiscal 2019 onwards
NGK SPARK PLUG CO., LTD. : Number of employees as of March 31, excluding those temporarily transferred from the company and those taking
a leave of absence, while including those temporarily transferred to the company, those reemployed after retirement, and contract employees

Number of temporary workers(fiscal year)

2015

2016

2017

2018

2019

Temporary employees (people)

313

346

303

505

649

[Calculation method] As of March 31

Status of employees
2015

2016

2017

2018

2019

Men (aged)

38.4

38.6

38.6

39.0

39.7

Women (aged)

35.5

35.9

35.9

36.9

37.6

Total (aged)

37.9

38.2

38.2

38.6

39.3

Men (years)

16.3

16.4

16.4

16.8

17.1

14.9

15.2

15.2

16.1

16.4

16.1

16.2

16.2

16.7

16.9

6,607,006

6,767,466

6,570,683

6,912,014

6,759,462

Total employee
turnover rate (%)

2.52

2.57

2.06

3.13

3.73

Voluntary employee
turnover rate (%)

1.09

1.08

1.42

1.83

2.27

(fiscal year)

Average age

No. of years of service Women (years)
Total (years)
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
Average annual salary Including bonuses and extra wages
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

Employee engagement
2015

2016

2017

2018

2019

Rate of employees with high work satisfaction (%)

ー

75.5

73.2

67.3

54.1

Response rate (%)

ー

89.6

70.4

88.1

90.9

(fiscal year)[Scope of tabulation] NGK SPARK PLUG CO., LTD. and Groups in Japan [Calculation method] 2016,2018,2019 : Targeted all employees
2017 : Targeted employees belonging to the business departments

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202008

SocialDiversity
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)

2015

2016

2017

2018

2019

Men (people)

4,786

4,641

4,701

4,730

4,784

Women (people)

1,001

1,012

1,028

1,037

1,045

Percentage of women (%)

17.3

17.9

17.9

18.0

17.9

8

10

12

15

18

0.84

1.05

1.24

1.53

1.83

28

28

27

26

37

Percentage of women (%)

2.87

2.77

2.49

2.28

2.94

Percentage of women (%)

14.2

14.2

14.7

14.8

15.4

Ratio of women, foreign nationals and career recruits inmanagerial positions (%)

9.9

10.7

11.7

12.5

13.6

Percentage of disabled employees (%)*

1.82

1.90

2.17

2.21

2.25

Reemployed (people)

229

251

223

204

190

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, excluding employees temporarily transferred to Group companies
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*We aim to increase the “ratio of women, foreign nationals and career recruits in managerial positions” to 25% in fiscal 2030.

Work-life Balance
In order to nurture a corporate culture that helps diverse employees fully display their abilities, we are fostering work style reforms and supporting
employees in keeping their work-life balance.

Maternity/child care/long-term nursing care leave
2015

2016

2017

2018

2019

44

62

35

61

47

Men (people)

2

2

6

4

5

Women (people)

46

56

42

46

53

100

96

95

100

96

25

36

35

42

30

2

1

1

2

3

0

0

0

0

1

(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 child care 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 : Number of employees who became users of the system in the fiscal year

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202009

SocialWorking hours(fiscal year)

2015

2016

2017

2018

2019

Prescribed working hours(hours/year and person)

1,899

1,899

1,899

1,899

1,899

Actual working hours(hours/year and person)

1,981

1,986

1,993

1,994

1,982

20

20

21

22

19

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)

2015

2016

2017

2018

2019

Paid holidays granted to employees (day(s))

19.19

19.23

19.31

19.63

−

Paid holidays taken by employees (day(s))

14.42

14.85

15.41

16.56

−

Rate of usage (%)

73.39

75.64

78.52

84.36

−

[Scope of tabulation] NGK SPARK PLUG CO., LTD.
[Calculation method] Calculated for a fiscal year from October to next September (example : fiscal 2018 was started in October 2018 and ended in September 2019),
excluding employees temporarily transferred to Group companies and those on leave

Labor union(fiscal year)

2015

2016

2017

2018

2019

NGK SPARK PLUG Group labor unionparticipation rate (%)

83

84

84

84

83

[Scope of tabulation] 2015-2017 : NGK SPARK PLUG CO., LTD. 2018-2019 : NGK SPARK PLUG CO., LTD., Ceramic Censor, Nittoku Supertech Tounou and Nittoku Supertech
WKS[Calculation method] As of March 31

Human resource development
We conduct a range of educational and training activities in a planned manner to provide employees with learning and growth opportunities.
(fiscal year)

2015

2016

2017

2018

2019

Total hours of training (hours)

82,05984,81686,252

81,632

87,613[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

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202010

Social

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)

2015

2016

2017

2018

2019

Total accident frequency rate

1.06

0.74

0.63

1.08

0.77

Frequency rate of accidents requiring leave from work

0.08

0.08

0.08

0.08

0.00

Employees

−

0.09

0.08

0.08

0.00

Temporary employees

−

0.00

1.20

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Frequency rate of occupational diseases[Scope of tabulation] NGK SPARK PLUG CO., LTD. (Including temporary employees)[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 of victims who took leave per 1million working hours
Frequency rate of accidents requiring leave from work=Number of victims 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

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.
(Unit : million yen)Type of contribution
Cash contributions

Total amount361.60Time: employee volunteering during paid working hours

7.6

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

51.3Management overheads

29.65[Scope of tabulation] NGK SPARK PLUG GroupNGK SPARK PLUG CO., LTD. Sustainability Data Book 202011

SocialCommunication with Stakeholders
To deepen mutual understanding, we are fostering dialogue with our stakeholders through various opportunities.
Stakeholder

Shareholders
and investors

Customers

Suppliers

Local
communities

Communication•Organization of the ordinary general meeting of shareholders•Dialogue with institutional investors and securities analysts
of briefings on our technologies for institutional•Organization
We disclose information in
investors and securities analystsr
compliance with the law andalso disclose information•Organization of briefings on the company for personal investors
promptly via the media and at
our website.
•Publication of the newsletters for shareholders•Publication of an annual integrated report•Provision of information via the website•Communication through sales activities
We offer information meaningful
to customers at our website•Provision of information via the website (on products, events, etc.)
and through exhibitions so thatthey can purchase and use our
products and services with
•Explanation about products and technologies at exhibitions
peace of mind.
•Communication at venues of events, such as racing events
We are working to build relationships of•Communication through daily procurement activities
trust with suppliers as their soundpartners and achieve growth together.
•Organization of briefings on the corporate principles
To this end we conduct activities acrossthe supply chain, such as holding briefing
sessions on our corporate policies.
•Organization of seminars on practical issues•Communication through social meetings and events•Participation in local events such as festivals•Local cleanup activity•Environment-related plant tours
We respect the local culture andcustoms at each of our bases
located across the world and•Environmental meetings
work for smooth communication
with local communities. We also•Communication through cultural and sport events
participate in various social
contribution activities to help
create a comfortable society asa corporate citizen.

Employees

Major activities in FY2019

To maintain safe and soundworkplaces and help employees
work with vigor, the management
team proactively visits work sites
to have dialogues with on-site
employees.

・2020 NGK SPARK PLUG Suzuka 2&4 Race

Frequency & no. ofparticipants per year
June
336 times
Not heldThree times (A total of 900 people)
Once
Aug.
From time to time
From time to time
From time to time
From time to time
From time to time
From time to timeMay
34 seminars
From time to time
From time to time
From time to time at each plant(A total of 931people)
From time to time at each plant(A total of 867people)
From time to time at each plant(A total of 302people)

Canceled due to the spread of
the novel coronavirus

・NGK SPARK PLUG FC Gifu football class for children

June・Musical for families held in the NTK Hall

Dec.

・Marathon Festival Nagoya Aichi

Mar.

•Provision of information via the website (environmental information, etc.)•Communication through daily operations and at workplaces•Publication of an in-house magazine•Organization of various labor-management meetings•Utilization of the corporate ethics helpline (for employees)•Organization of various training sessions•Employee satisfaction survey

From time to time
From time to time
Booklet : 8 times
Website : from time to time
From time to time
80 calls received
A total of 8,192 participants
All employees, Nov.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202012

GovernanceCorporate Governance

Board of Directors and Board of Auditors

Directors(fiscal year)

2015

2016

2017

2018

2019

Men (people)

9

9

9

9

10

Women (people)

1

1

1

1

0

Percentage of women (%)

10

10

10

10

0

Outside directors (independent officers) (people)

3

3

3

3

3

Percentage of outside directors (%)*

30

30

30

30

30

Percentage of female and non-Japanese directors (%)*

10

10

10

10

10

Average tenure (years)

ー

5.4

5.4

3.2

3.8

Men (people)

4

3

3

3

3

Women (people)

0

1

1

1

1

Percentage of women (%)

0

25

25

25

25

Outside directors (independent officers)(people)

2

2

2

2

2

Frequency (times)

16

13

14

12

12

99.5

97.8

98.5

99.4

98.3

14

13

14

13

13

98.2

94.2

96.4

100

100

Auditors

Board ofdirectors

Board ofauditors

Average attendance rate (%)
Frequency (times)
Average attendance rate (%)[Scope of tabulation] NGK SPARK PLUG CO., LTD.
We aim to increase the rate of outside directors and the percentage of female and non-Japanese directors to at least one-third and 30% of the total number of directors, respectively, by fiscal 2030.

Remuneration for Director and Auditor
Officer remuneration is intended to raise awareness regarding the contribution to improving corporate performance and maximizing corporate value over the
medium- to long-term and is based on a fundamental policy of officers sharing interests with shareholders through ownership of Company shares.

Remuneration and bonus paid to directors and auditors in fiscal 2019
Total remuneration of compensation by type (million yen)
Total remuneration(million yen)Fixed remuneration

Performance-linked remuneration
Bonus

Stock compensation

Number of eligible
executives(number of people)

Directors (excluding outside directors)

476

334

90

52

8

Auditors (excluding outside auditors)

50

50

ー

ー

3

Outside directors

42

42

ー

ー

4

Outside auditors

28

28

ー

ー

2

*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) .
*1 : 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(held on 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.
*2 : 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
*3 : The amounts above include remuneration paid to one outside director who retired due to passing away on May 2, 2 0 1 9 and one director and one auditor who
resigned at the conclusion of 119th annual shareholders meeting (held on June 25, 2019).
*4 : “Bonus” and “Stock compensation” are the amounts recorded as expenses in fiscal 2019.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202013

GovernanceCompliance

In-house Reporting System
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)

2015

2016

2017

2018

2019

Consultation requests/
reports made internally (cases)

50

54

65

73

80

[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.

2015

2016

2017

2018

2019

Political donations (cases)

0

0

0

0

0

Total amount (yen)

0

0

0

0

0

(fiscal year)[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)

2015

2016

2017

2018

2019

R&D expenses (millions of yen)

23,123

23,41625,28328,071

28,315

6.03

6.28

6.17

6.60

6.64

Ratio of R&D expenses to sales (%)

Including expenses for improving existing products and for applied research as well as the development cost recognized as the cost of an intangible asset

Participation in Initiatives

United Nations Global Compact
NGK SPARK PLUG CO., LTD. Participated in United Nations Global Compact in November 2016. We will uphold ten principles
consisted of four issues such as “Human rights, Labour, Environment, Anti-corruption” being advocated by the U.N. global
compact as good members of society, and will make every effort to promote activities.

Task Force on Climate-related Financial Disclosures (TCFD)NGK SPARK PLUG CO., LTD. has announced its endorsement of the recommendations of TCFD
in July 2020. Based on the TCFD recommendations, we will assess and proactively disclose thefinancial impacts of climate-related risks and opportunities.

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202014

Social and Environmental Information Verification Report

NGK SPARK PLUG CO., LTD. Sustainability Data Book 202015

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