Harmony withthe environment

Environmental management

Environmental idea
INOAC respects the natural environment of ourirreplaceable earth and contributes to realizing anaffluent society that is comfortable to live in throughtechnology harmonized with our environment andenvironment-friendly corporate activities.

Environmental policy① We comply with environment-related laws and regulations
and other requirements, and implement business activities that society can trust.
② We promote reducing CO2 emission such as energy
saving to prevent global warming.
③ We work on resource conservation, waste reduction andrecycling to contribute to a recycling-oriented society.
④ We appropriately manage chemicals that may influence
the environment and reduce the risk to preserve our environment.
⑤ We actively develop products with less environmental
impacts contributing to conservation of the nature
throughout the lifecycles of the products.
⑥ We promote environmental management, educate
employees about the environment, implement environmental audits and continue to improve.
⑦ We contribute to establishinga sustainable society
through local environmental
preservation work as good
corporate citizens.

Environmental management system
The person responsible for environmental management implements the integrated management of the environment under
the direct control of top management and implements environmental activities for the whole company in the activities of
the Environmental Committee, working to promote environmental activities in an organized fashion. We organized aspecific section committee to handle industrial waste and energy saving to further accelerate reduction and to promote
environmental management in cooperation with each committee.
We also started activities conformable to ISO 14001:2015 in January 2017 and are working to achieve our objectives
under a regime close to our main work by completely reviewing manuals.
■ Environmental preservation promotion

Waste Reduction
Committee

Chairperson

Environmental
preservation
promotion

Management

Person responsible forenvironmental management
Chairperson(energy management control officer)(Department by department)

Waste Reduction Committee(Business office)Environmental Committee

Environmental Committee

Energy Saving Committee

Energy Saving Committee(Business office)Environmental
improvement
activities
by workplace

Internal environmental audits

External environmental examination

We implement internal environmental audits tocheck the operational state of our environmental
management.
The audit team consists of two to three employees
who have completed the auditor training prescribedby the company, and checks if the environmental
management system is appropriately operated,maintained and improved. Regarding organizations
with inappropriate operations, additional audits are
implemented and followed by corrective action.

We ask the Japan Quality Assurance Organization (JQA), which isan external certification registration body, to implement
examinations to check if the environmental management system
is appropriately operating in accordance with ISO 14001:2015.
We also implemented an examination for shifting toISO14001:2015 whose activities started in January in FY 2017.
As the result, no items indicated for improvement were found, andthe system including shifting was determined to be sustained. Asan overall assessment, issues to be considered about influenceon management in expanding objectives and others were listed.

Harmony withthe environment

Environmental management

Summarization of major activities in FY 2017

Compliance with environmental laws and regulations

The results of INOAC's main work for the environment in FY 2017 are shown in thetable below.
We reduced energy consumption compared with the previous fiscal year eventhough we could not reach our reduction objectives due to insulation
countermeasures in our facilities. Although we moved forward on recycling, we did
not reach our objectives for reducing waste disposal because the market standards
for valued resources have become stricter year after year. About the releaseamount of PRTR substances, we introduced CO2 foaming equipment to reduce
methylene chloride as a foaming agent, promoted substituting a cleaning agent
with non-PRTR substances for a cleaning agent with PRTR substances, reachedour objectives and substantially passed it.

INOAC specifies the environmental laws andregulations related to our business and implements daily management. Each business facility
implements environmental risk management
such as preventing environmental pollution bymonitoring and measuring the responses on thebasis of laws and regulations concerning noise
and industrial waste treatment, evaluating themas part of the environmental management
system. We strictly comply with the agreements
about environmental preservation and otheritems with local governments and thoroughly
comply with environmental ordinances.

Items to be worked on

EnergyPolicy and objectives of activities in FY 2017

Factory-related site

Office-related site

Factory-related site

Intensity (used amount/production sum)337.2 and below

Used amount (crude oil equivalent)
28,244 kL (2017 result)

Used amount (crude oil equivalent):
92.9 kL or below

Used amount (crude oil equivalent):
91.6 kL

Intensity (treated amount/production sum)5.45 and below

Intensity
6.48

Treated amount:
4,634 t (2016 results)

PRTR substances
Reduction in release andtransfer amounts

Treated amount: 1,818 kg or below

Intensity (release amount + transfer amount)/production sum)
2.67 and below

Treated amount:
5,254 t (2017 results)
Treated amount: 1,553 kg
Intensity
1.64
Release amount + transfer amount
132,887kg (2017)

Release amount + transfer amount
187,930 kg (2016)

Environmental
improvement work

Environmental improvement cases (total in the entire company):
1,046 cases or more

1,726 cases

Environmental
communication

Issue CSR report

IssuedObjectives reached

Results

Intensity
348.5

Used amount (crude oil equivalent)
28,303 kL (2016 result)

Reduction in waste
Office-related site

Activity results in FY 2017

Objectives not reached but progress made■ Main environment-related laws and regulations in our businessAir

Air Pollution Prevention Law, Automobile NOx/PM Reduction Law,
Law Concerning Special Measures against Dioxins

Water quality and soil

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

Noise, vibration and malodor
Chemicals

Resource conservation and cycle

Noise Control Law, Vibration Regulation Law,
Malodor Prevention Law
PRTR and Promotion of Chemical Management Law,
Poisonous and Deleterious Substances Control Law
Energy Saving Law, Container and Packaging Recycling Law,
Freon Emission Control Law, Law Concerning Special Measures
Against PCB Waste, Waste Management and Public Cleaning Law

Disaster prevention

Fire Service Law, High Pressure Gas Safety Law

General and others

Factory Location Law, Law concerning the Improvement of
Pollution Prevention Systems in Specified Factories(Pollution Prevention Organization Law), Radio Law• Local government ordinances are omitted.
• Some of the laws are described in abbreviated forms.

Training for emergencies
We identify accidents and emergencies in accordance with the characteristics of each business facility,and periodically implement training to prevent environmental pollution such as fires and chemical leakage(oils, solvents, etc.) from facilities.
General disaster training was held on June 2 and November 30, 2017, and individual training is
implemented in accordance with the characters of departments including training for preventing raw
materials from flowing out and evacuation drills at night in the Anjo Plant. In other facilities, trainings for
emergencies are implemented as preparation.

Objectives not reached* Business places from which environment data are collected to summarize major activities are shown below:
INOAC CORPORATION

Anjo Plant, Sakurai Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda Second Plant,
Ono Plant, Jinno Plant, Ukiha Plant, Headquarters (Nagoya City), Tokyo branch, Osaka branch

INOAC Living Co., Ltd

Ibigawa Plant,

Techno Foam Japan Co., Ltd. Headquarters, Saitama Plant

Kyushu INOAC Co., Ltd. Kikuchi Plant, Ukiha Plant, Kita-Kyushu Plant,
Kyushu Color Foam Co., Ltd.

Anjo Plant: Water drainage by fire-fighting team

Sakurai Plant: Training in early fire extinguishment

Nanno Plant: Measures against raw material leakage

Harmony withthe environment

Reducing the environmental burden[Cases]Reduction of energy consumption

Significant implementation contents for energy saving promotion in 2017
INOAC has promoted reducing CO2 emissions and saving energy toprevent global warming. We implemented efficiency increases indryers and room heating by utilizing waste heat from boilers and fans,heat insulation measures on factory roofs, boiler piping, cure furnaces
and more, and promoted LED use.
The amount of energy used in FY 2017 almost leveled off incomparison with FY 2016, and was reduced by approximately 5
percent (crude oil equivalent) compared with FY 2014.

■Energy consumptionof our plants(crude oil equivalent)Comparison withthe previous fiscal year

Reduction by

Increase in air conditioning efficiency by removing waste
heat from rooms (summer) and bringing waste heat into
rooms (winter)

Curing furnace heat insulation with INOAC’s THERMAX,
a heat insulating material

Countermeasures to prevent air leakage by ultrasonic airleak detectors

Installation of insulation jacket on tank in boiler room

Heat insulation by covering plant roof

LED illumination management by control switch

Enhanced air conditioning efficiency by partition curtains

Power reduction by utilizing waste heat from boiler room

1%
Anjo Plant: Heat insulation cover on plant roofs

Affiliated companies: Installation of insulation
jacket on tanks

Kita-Kyushu Plant: Taking-out and taking-in of
waste heat from fans

Other work for preventing global warming

Year

INOAC is working on preventing global warming from otherperspectives too. We provide our employees with education on
power saving including cool biz, which is our energy-saving
attire campaign, with summer eco-style campaigns. We also
work on cooperative transportation and smooth deliveries, amodal shift to railway and maritime transport, and distribution

base intensiveness. In addition, we participate in the CO2
Reduction and Lights Off Campaign propelled by the Ministry of
the Environment every year, and implemented the campaign at
10 facilities including our group companies on June 21 (summer
solstice) and July 7 (Star Festival) in 2017 too.

Harmony withthe environment

Reducing the environmental burden

Waste reduction

NCV project participation■ Waste treatment amountThe NCV (Nano Cellulose Vehicle) project was launched by
the Ministry of the Environment to improve automobile fuelconsumption by weight and CO2 reduction by applying
cellulose nanofiber (CNF), which is a light-weight andhigh-strength next generation material, to the automotive
field. Kyoto University leads the project and more than 20
industrial, academic and governmental institutions participate.
INOAC CORPORATION has participated in this project fromthe beginning, evaluated moldability, physical properties andmore, and worked to implement practical realization.
http://www.rish.kyoto-u.ac.jp/ncv/

Regarding waste reduction, the companywide waste reduction
committee, as the leader, promotes reports of waste reduction
cases, application of such waste reduction to other facilities,
reductions in loss by detecting the reductions and improvements
in yields and expansion of utilizing recycled resources including
recycling by separating used paper and material recycling at eachbusiness place. However, the criteria for valued resources havebecome stricter; therefore, in many cases we had to disposal
resources as industrial waste.

Year

Reducing environmental burden substances
INOAC uses PRTR substances such as m-tolylene diisocyanate,
which is a raw material of polyurethane foams, xylene or toluene,
which are used in the coating process. We have promoted
increases in using paints with low solvent rates (high solid type)and stopped using 1-bromopropane at the cleaning process of aurethane injection machine as work for reduction in handlingamounts and the releasing amount of such target substances.
Thanks to this work, we achieved remarkable reductions in 2017
by approximately 29% compared with 2016 and by
approximately 50% compared with 2014.

■ Discharged andmoved quantity of
PRTR substances

Comparison withthe previous fiscal year

Reduction by

29%
CNF-contained foaming PP resin molded article(product picture)Year

Microphotograph of CNF-contained foaming PP resin molded article

Business places from which environment data are collected on pages 14 and 15 are shown below.
INOAC CORPORATION/Anjo Plant, Sakurai Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda Second Plant, Ono Plant, Jinno Plant, Ukiha Plant, Headquarters (Nagoya City), Tokyo branch, Osaka branch◎ Ibigawa Plant, INOAC Living Co., Ltd. ◎ Kikuchi Plant, Ukiha Plant, Kita-Kyushu Plant, Kyushu INOAC Co., Ltd. ◎ Headquarters, Saitama Plant, Techno Foam Japan Co., Ltd. ◎ Kyushu Color Foam Co., Ltd.

Harmony withthe environment

Management of chemical substance information

Promoting IMDS, chemSHERPA*2 and more

Establishment and execution of green procurement criteria

INOAC registers information on chemicals and reports it to our customers through IMDS* 1,
especially in the automotive field, which is our main strength, and has a management system
to obtain the necessary information via our supply chain and to register IMDS.

We list chemical substances regulated by laws and regulations, or customers, and list
chemical substances that we should reduce after understanding their content. We show themas green procurement criteria to suppliers; we use such lists to obtain information on chemical
substances contained in raw materials to be purchased.

■ nformation collection through IMDS in INOAC - reporting process and chemical management system
Component
supplier

INOAC

Components

Components list,
drawings etc.

Communication about chemical substance management

IMDS data
Products
Composition parts
Materials

Material
supplier
Materials

Chemical
substances

Auto manufacturer
etc.

In-house
database

Chemical
substances

Information collection and report to our customers using the chemSHERPA*2 format that has
been widely used in the industry, especially in the electrical machinery industry are supported(The format was changed from the previously used JAMP format to the above).

The global quality assurance headquarters that is a company-wide organization and leader
regarding environmental management gathers the chemical management section in eachdepartment and meets once every two months. At the meetings, they review the green
procurement criteria, check the management system, establish or change operation rules, andexchange opinions concerning the latest trends in chemical regulations such as the REACH
regulation and RoHS Directive, as well as periodically implementing auditing the management
system in each department to maintain and improve an appropriate and reliable management
system.

*1 IMDS (International Material Data System): A database for transmitting and obtaining information onmaterials and chemicals over the internet for the automotive industry, which was developed to comply
with the EU ELV Directive as a start*2 chemSHERPA: A unified format to transmit information on chemicals contained in products in the
supply chain, which the Ministry of Economy, Trade and Industry took the initiative in developing

Establishment of in-house database
The automotive division operates the in-house database through which information on
chemical substances contained in purchased parts and raw materials is managed in an
integrated manner, which contributes to improved work efficiency, the accuracy of thecontents to be reported in the registration with IMDS and the investigation of Substances ofConcern contained in the purchased parts and raw materials.

ing
Hold

of regular meeting
Procurement
division
Automotive
Parts Division

Global Quality
Assurance
Headquarters

Urethane
Products Division
RubberProducts Division
Fintech &Information
Equipment Division

Impl
n
ement
ation of audit at each divisio

Maintenance and improvement ofmanagement system

Environment-friendly products ①

Harmony withthe environment

Energy saving Residential heat insulator that can achieve both heat insulation and incombustibility

Resource saving Interior finishing material with strength and weight reduction“THERMAX SW-G”

Foam injection lightweight deck box

Recently, the demand for heat insulation materials has increased because of increasing interestin energy saving at residences; the demand for heat insulators for residences that can achieveboth heat insulation and incombustibility has also increased due to frequent large-scale fires.
We developed THERMAX SW-G to respond to this demand. THERMAX SW-G is a rigid
polyisocyanurate (PIR) foam board that prevents fire from entering inside due to a surface charlayer formed by the isocyanurate structure; THERMAX SW-G has extremely highincombustibility even when burning on a burner at the temperature of 1200°C for 5 minutes aswell as excellent thermal insulation performance.

■High heat insulation
Reflection

Thermax
Reflection

Hot air

Cool airCool insummer

THERMAX SW-G

The deck is placed on both sides of the automobile luggage area and the part where the tool
kit for repairing flat tires and other tools are stored. This was an injection molded article
previously made of normal resin, but we now use a resin material containing a chemical
foaming agent and have reduced the weight by approximately ten percent while retaining thesame strength with the high foaming method by opening the mold a little after filling gas
generated by the heat inside the cylinder in the mold. The foaming type usually needs coating
due to surface design, but this product does not need any coating and has the same level ofdesign, contributing to improving the operation environment at production.

Cold airWarm airReflection

Warm inwinterReflection■ 他の素材との性能比較

PF: Phenolic foam, XPS: Extruded styrene foam

THERMAX SW-G

General PIR

PF

XPS

Fiber-based heatinsulation material

Thermal conductivity
Fire protection andfireproof
performance

○

○

○

○

△

◎
Carbonization/Shape retaining△
Ignition/Combustion○
Carbonization/Decomposition△
Dissolution○
Shrinkage deformation

Oxygen index

○

△

○

○

◎

Moistureproof
performance

◎

◎

○

◎

△

■Molding process

Foam body

THERMAX SW-G
burning
Impenetrable in 6 minutes
Before burning

15 seconds later

3 minutes later

6 minutes later

Open the mold
Reference: Combustibility of generalheat insulation material
General PIR ... Penetrable in 15 seconds

PF ... Penetrable in 5 minutes 40 seconds

XPS ... Penetrable in 5 seconds

Fill initial amount thinlyEnvironment-friendly products ②

Harmony withthe environment

Clean

Energy saving Composite with excellence in heat insulation, processability and flexibility

Special resin material using clean supercritical foaming technique“TURBOFLEXⅡ”, a lightweight and highresilience material for shoes
TURBOFLEXⅡ is a special resin material with low specific gravity and high impact resiliencethat is manufactured by supercritical injection foam molding without any chemical foaming
agents that generate harmful gas. The material is used for the midsole heel ofhigh-performance sport shoes. For example, this material is used for SKY MID/SKY LO
volleyball shoes manufactured by DESCENTE LTD. and some players in the V Premier League
use these shoes.

“Flexible aerogel”, a next-generation heatinsulating material
Aerogel is a dried porous gel with low density and high porosity, which is notably weak as asimple substance. Therefore, impregnating a nonwoven fabric base material with it or the like isrequired for commercialization, as a heat insulation material, due to weak points such as gel
falling (powder falling) during use and insufficient heat insulation. Aerogel becomes an excellent
product featuring extremely rare powder falling, high heat insulation, processability andflexibility by making a composite (filling in cell) with a special foamed body with a skin layer
having a fine cell structure. Aerogel is expected to be utilized in various fields such as
automobiles and construction materials in the future.
Micro cellular foamed body, simple substance

TURBOLEXⅡ, the material
having both high resilience andimpact absorption capacity

Pore diameter＞50mm

Primary particle＞1mm

MidsoleTURBOFLEXⅡ

Aerogel composite (SEM image Χ200)

TURBOFLEX is a registered trademark of INOAC Corporation.
5~10mm“SKY MID”

Secondary particle,
Aerogel structure

Performance comparison withconventional models■ Impact resilience (ball reboundability)■ Adiabaticity■Thermal conductivity

80%
Item

Unit

Densitykg/cm3

Impactresilience%

C-rigidity°

Compression
permanent strain%

TURBOFLEXⅡ

300
70
53
49

Conventional
material:
EVA

Glass wool

60%

Item

71

* The values shown above are measures of central tendencies andare not guaranteed values.

Unit

40%
Thickness

48

0.050

Micro cellular foamed body,
simple substance130
40(W/m∙K)

20%

0%

TURBOFLEXⅡ Conventional material: EVA

Apparent
densitymm
g/cm3

Thermalconductivity W/m∙K

0.028
0.024

Air (at 20°C)

Foamedbody,
simplesubstance

Aerogelcomposite

1.75

1.75

Flexible aerogel

0.016

Aerogel

0.015

50

200

Vacuum heat insulation material,
general purpose

0.028

0.016

Nonwoven fabric aerogel

0.021

Rigid urethane

0.020

0.010

0.0025
Vacuum heat insulation material,high performance
0.000 0.010

0.020

0.030

As an independent material, thehighest heat insulation capability ofall substances

0.040

0.050