Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Environmental management

Environmental vision
INOAC respects the natural environment of our irreplaceable
earth and contributes to realizing an affluent society that isEnvironmental management system
In order to engage in environmental activities in an organized fashion, the Person Responsible for Environmental Management implements integrated
management related to the environment, under the direct control of top management. In addition, the company as a whole also engages inenvironmental activities under the direction of the Committee on Environment. We have organized specific section committees to handle industrial
waste and energy saving, and we coordinate environmental management through these committees while seeking further improvements in mitigating

comfortable to live in through technology harmonized with ourour environmental impact. As we strengthen the connection between environmental management and our main business in managing our objectives,environment and environment-friendly corporate activities.

we are also supporting the appropriate efforts where changes are taking place, such as newly built business locations, buildings, and production lines.

Environmental policy(1) We observe environmental laws and regulations, thoroughly ensurecompliance, and engage in business activities that society can trust.
(2) We work to reduce CO2 emissions such as by saving energy, to help
achieve a carbon neutral society and prevent global warming.

■ Environmental Preservation Promotion System
Environmental
Preservation
Promotion SystemTopmanagement

ChairmanCommittee onWaste Reduction

Committees on Waste Reduction

Person Responsible forEnvironmental Management

Committee on Environment

Committee on Environment

Chairman(Office)(Office)(Energy Management Supervisor)(3) We work on resource conservation, waste reduction and recycling tocontribute to a recycling-oriented society.

(by section)

Committee on Energy Saving Committee on Energy Saving

Environmental
improvement
activities
at each workplace(4) We properly manage chemicals that could impact the environmentand seek to preserve our environment by reducing risk.
(5) We actively develop products with less environmental impact,
contributing to the conservation of nature throughout the life cycles ofthe products.
(6) We engage in environmental management, educate employees about
the environment, implement environmental audits, and continue toimprove.
(7) We contribute to establishing asustainable society through local
environmental preservation work
as good corporate citizens.

Internal environmental audits
We implement internal environmental audits to check theThe Japan Quality Assurance Organization (JQA), an external certification body,operational state of our environmental management system.

conducts examinations to check if our environmental management system is

The audit team consists of two to three employees who havefunctioning properly in accordance with ISO 14001:2015.

completed the auditor training prescribed by the company. TheIn conjunction, expanded examinations were conducted in FY 2020 at the Kirateam checks if the environmental management system is being

Plant and the Kyushu INOAC Yukuhashi Plant. No areas were found to be in needproperly operated, maintained and improved. We create auditof improvement as a result, and the auditors determined that the system is being

guidance and take steps such as revising checklists tomaintained. Issues pertaining to legal and regulatory compliance efforts andemphasize efforts toward goal achievement and compliance incorrections to non-compliant matters were addressed in the overall findings.

order to improve the quality of the audits.

11CSR REPORT 2021

External environmental examinations

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Environmental management

Summary of major activities in FY 2020

Compliance with environmental laws and regulations

The results of INOAC’s major environmental efforts in FY 2020 are shown in the table below. In terms ofAt INOAC, we identify environmental laws andreducing CO2 emissions resulting from energy use, the Committee on Energy Saving continued to takeregulations that are relevant to our business activities,

the lead in various efforts. However, fluctuations in production volume due to the COVID-19 pandemic

and manage them on a daily basis. Throughresulted in lower production efficiency and we were unable to reach our targets. In terms of reducing

monitoring, measurement, and assessment at eachwaste disposal, we moved forward in reducing emissions, including recycling. However, we wereplant, we prevent environmental pollution andunable to reach our targets because market conditions for resalable waste have become stricter eachotherwise conduct environmental risk management

year. Volume of PRTR substances released decreased from the previous year due to progress in replacing

to ensure that we properly comply with laws andmaterials that contain these substances and other efforts, although not enough to achieve our goal.

regulations related to noise and industrial waste

InitiativeReduce energy
consumption

Targets in FY 2020

Factory-related

Office-related

Factory-related
Reduce waste
Office-related
PRTR substances
reduction in releaseand transferamounts
Environmental
improvement
activities
Environmental
communication

Achieved in FY 2020

ResultCO2 emissions
52,172 t-CO2 (2020 result)CO2 emissions
59,149 t-CO2 (2019 result)CO2 emissions
170,100 kg-CO2 or less

CO2 emissions
315,601 kg-CO2

Measured units (CO2 treated amount/production sum) 0.0573 or less

Measured units
0.0763Treated amount
7,245 t (2019 result)

Water quality and soil

Water Pollution Prevention Act, Purification Tank Act, Sewerage
Act, Soil Contamination Countermeasures Act

Noise, vibration & odor

Noise Regulation Act, Vibration Regulation Act, Offensive Odor
Control Act

Chemical substances

Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion ofImprovements to the Management Thereof, Poisonous andDeleterious Substances Control Act

Resource conservation & recycling

Act on the Rational Use of Energy, Act on the Promotion ofSorted Collection and Recycling of Containers and Packaging,
Act on Rational Use and Appropriate Management ofFluorocarbons, Act on Special Measures concerning Promotionof Proper Treatment of PCB Wastes, Waste Management andPublic Cleansing Acttoenvironmental

preservation agreements with local government,
Disaster prevention

Fire Service Act, High Pressure Gas Safety Act

General & others

Factory Location Act, Act on Improvement of Pollution
Prevention Systems in Specified Factories, Radio Act* Local government ordinances are omitted * Some are abbreviated209,635 kg (2019 result)

170,961 kg (2020 result)

1,763 cases

Issuance of CSR report

IssuedTraining for emergencies
We identify accidents and emergencies according to thecharacteristics of each business facility, and periodicallyconduct training to prevent environmental pollution resulting

Not yet reached but progressing

from earthquakes, fires and leakage of oils and raw materials.
Target not reached* Business locations from which environment data is collected to summarize major activities are shown below.
Anjo Plant, Sakurai Plant, Kira Plant, Nanno Plant, Yana Plant, Ishimaki Plant,
Ikeda Plant, Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Head Office (Nagoya/Tokyo),
Osaka Branch, Hanyu Plant, Jinno R&D Center

Disaster prevention trainings planned for spring and fall at theAnjo Plant (Aichi Prefecture) were cancelled due to the
COVID-19 pandemic, but spill prevention training wasconducted in manufacturing sections on November 12, 2020.

INOAC Housing & Construction Materials Co., Ltd. Ibigawa Plant, Kofu Plant

In other facilities, training for emergencies and urgent

Kyushu INOAC Co., Ltd.

Yukuhashi Plant, Kikuchi Plant, Ukiha Plant, Kitakyushu Plant

circumstances is conducted on a preparatory basis.

Techno Foam Japan Co., Ltd.

Head Office, Saitama Plant

Kyushu Color Foam Co., Ltd.

Higashi Nihon INOAC Co., Ltd.

* The Kira Plant and Yukuhashi Plant (Kyushu INOAC) were added to the data collection range

12adhering

CSR REPORT 2021

Air Pollution Control Act, Automobile NOx PM Law, Act on
Special Measures against Dioxins

Treated amount 570 kg

Cases of environmental improvements (total in entirecompany) 1,227 cases or more

INOAC Corporation

strictly

including environmental laws and regulations.

Measured units ((amount emitted + amount transferred) / Measured units
production sum) 2.09 or less
2.27
Amount emitted + amount transferred
Amount emitted + amount transferred

Target reachedcontinue

Treated amount
6,847 t (2020 result)

Treated amount 1,462 kg or lessAir

treatment as part of our environmental management
system. In accordance with business ethics, we will

Intensity (CO2 emission/production sum) Measured units
0.548 or less
0.581

■ Major environment-related laws and regulations pertaining
to our business

Anjo Plant / Training for emergencies

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Reducing our environmental footprint

Reduce energy consumption

Efforts

To help to prevent global warming, we have been engaged in efforts toreduce CO2 emissions by promoting energy saving. Specific measures being
taken include covering material drying ovens with heat insulation sheets toreduce energy loss from heat escaping, installing inverters into cooling
tower fans to reduce energy usage, and using thermal insulation boards toinsulate buildings. Our CO2 emissions resulting from energy use in FY 2020
decreased by approximately 10% compared to FY 2019, and decreasedslightly in terms of intensity.

■ Key efforts to promote energy saving in 2020
Insulating buildings using INOAC’s  thermal
insulation boards

Installing inverters into cooling tower fansto reduce energy usage

Reducing energy usage by utilizing heat exhaustfrom compressors to heat rooms

Curtaining off areas of large workspaces
to improve the efficiency of air conditioning

Conducting air leakage patrols and eliminating air leakages
at each business location

Reducing energy loss from heat escaping
by covering material drying ovens with heat insulation sheets

Lining windows with INOAC’s  heat insulation
sheetsInstalling demand meters and visualizing demand
as a measure to address peak energy usage■ Energy use (CO2 emission (t-CO2))t-CO2

70,00060,00061,22562,562

61,69362,669

2016

2017

2018

2019

56,52550,00040,00030,00020,00010,00002020 Year
Thermal insulation of worksites with ■ Energy use intensity (CO2 emission (t-CO2)/production sum (million yen))
0.8
0.720
0.710
0.7
0.641
0.575
0.568
0.6
0.5
0.4
0.3
0.2
0.1
0.013

2016

CSR REPORT 2021201720182019

2020 Year

Toyohashi Plant / Heat insulation sheets
as a measure for materials dryers

Curtaining off areas of workspaces■ Other efforts to prevent global warming
INOAC is working on preventing global warming from other(milk runs), a modal shift to railway and maritime transport,

perspectives as well. During the summer, we hold our Summer

and consolidation of distribution bases. Furthermore, we haveEco-style Campaign to educate our employees on how to saveinstalled and are operating solar power generation equipment

energy, such as by promoting “cool biz” energy saving attire.

(total installed capacity 5,417 kw/h) in unused spaces on 15

We are also engaged in cooperative transport and deliveries

different production plant sites throughout Japan.

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & compliance

Reducing our environmental footprint

Activities to reduce waste
In terms of waste reduction, the company-wide Committee on Waste
Reduction leads efforts to improve our rate of product commercialization
by reducing defects and increasing yield, and to reuse more material
cutoffs. Our waste treatment amount in 2020 was 5% lower than in 2019.
While our measured units of waste treated decreased, we were unable toreach our target. We are working toward reducing emissions by expanding
sales of the long cushion (see article at right) made from material cutoffs,
commercialization of products made from recycled materials, and othersuch efforts.

Activities to reduce the use of environmentallyhazardous substances
INOAC uses PRTR substances such as m-tolylene diisocyanate, a raw
material for polyurethane foam as well as xylene and toluene which are■ Waste treatment amount (t)
t

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

0.06
0.05
0.04
0.03
0.02
0.01
0.00

kg

300,000

With polyurethane in chip form, cushions exhibit less deformation over long-term
use, thus extending the life of the product. Products have longer replacement cycles
2016

2016

281,192

200,000

2017

2018

2019

2020 Year

2017

2018

2019

and produce less waste thanks to longer product life and the use of unneededmaterial remnants that had been treated as industrial waste.

2020 Year

213,638 229,332

247,807

Chips (after being crushed)

216,591

150,000
50,000to the previous year.

We are developing and manufacturing products with material remnants ofpolyurethane that we produce, crushed into chips to be used as filling for cushions.

250,000transferred of these substances, we have made progress in replacing

transfer amount as well as the output intensity of the substances compared

6,877

Development and manufacturing of the long cushion,a recycled product■ PRTR substance release and transfer amount (kg)

100,000

partially left over as foaming agent, and we were able to reduce release and5,799

7,086■ Measured units of waste treated (treated amount (t)/productionsum (million yen))
0.08
0.0715 0.0687 0.0712
0.070.0603 0.0658

used in coating processes. To reduce the amount handled, released, anddichloromethane and bis phthalate plasticizer (2-ethylhexyl) which is

5,129

7,47802016

2017

2018

2019

2020 Year■ PRTR substance release and transfer amount intensity(release and transfer amount (kg))/production sum (million yen))
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

3.307

2016

Finished product ()

2.425

2.383

2.275

2.175

2017

2018

2019

2020 Year* Business places from which environment data are collected on pages 15 and 16 are shown below.
◎ INOAC Corporation, Anjo Plant, Sakurai Plant, Kira Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Head Office (Nagoya/Tokyo), Osaka Branch, Hanyu Plant, Jinno R&D Center◎ INOAC Housing & Construction Materials Co., Ltd./Ibigawa Plant, Kofu Plant ◎ Kyushu INOAC Co., Ltd./Yukuhashi Plant, Kikuchi Plant, Ukiha Plant, Kitakyushu Plant ◎ Techno Foam Japan Co., Ltd./Head Office, Saitama Plant◎ Kyushu Color Foam Co., Ltd. ◎ Higashi Nihon INOAC Co., Ltd.
14CSR REPORT 2021

Harmony with the environment

Company profile

Feature Story

Harmony with the environment

Improving value

Communication with society

Producing an employeefriendly workplace

Supply chain management

Governance & complianceManaging information on chemical substances

Promoting IMDS, chemSHERPA and more

Establishment and implementation of green procurement criteria

INOAC registers information on chemicals and reports it to our customers through IMDS *1, particularly in theWe ascertain what chemical substances are regulated by laws, regulations, and by our customers, based on which

automotive field which is our main field of business. We have a management system to obtain the necessary

we create our green procurement criteria - a list of those chemical substances that we should work to reduce. We

information via our supply chain and to register the information into IMDS.

present these criteria to suppliers and use them to obtain information on chemical substances contained in raw
materials to be purchased. We are also consistently monitoring the latest regulatory developments, based on which■ Information collection through IMDS in INOAC – reporting process and chemical management system
Component supplier
Products

INOAC
Components list
drawings, etc.

Communication about chemical substance management

In-house database
Products

Material supplier

we revise these criteria once each year.

Component parts
Materials

IMDS data

Chemicalsubstances

Automanufacturer,etc.

Materials

The Global Quality Assurance Division is a company-wide organization for environmental stewardship, whichorganizes and leads meetings for the chemical substance management sections of each department once every
two months. They review the green procurement criteria, check the management system and establish or change
its operating rules, and exchange opinions concerning the latest trends in chemical regulations, such as the REACH

Chemicalsubstances

regulation and RoHS Directive. They also periodically audit the management system in each department in order tomaintain and improve management systems that are appropriate and reliable.

We also collect information and report it to our clients using the chemSHERPA format, which is widely used in*2

the industrial world, especially the electrical machinery industry.

gular meetings
Hold re*1 IMDS (International Material Data System): A database for transmitting and obtaining information on materials and chemicals
over the Internet for the automotive industry, which was originally developed to comply with the EU ELV*2 chemSHERPA: A unified format to transmit information on chemicals contained in products in the supply chain, which theMinistry of Economy, Trade and Industry took the initiative in developing

Procurement
sections
Automotive parts
sections
Global Quality
Assurance
Division

Creating an in-house database

Polyurethaneproducts sections
Rubber productssections
Plastic products
sections

The Automotive Division is creating an in-house database through which information on chemical substances
contained in parts and materials purchased from suppliers is identified based on information about chemical
substances, and centrally managed. This has allowed us to be certain of our compliance with laws and regulations
on chemical substances and client requirements which increase each year, while also helping to improve theefficiency and the reporting accuracy of information we register in IMDS and when examining the chemical
substances contained in our products.

15

CSR REPORT 2021sImpl
ction
ement
audits at each of the se

Maintain and improve
management systems