CSR REPORT2018
NOK C O R P O R A T IO NENGLANDKOREAGERMANY

JAPAN
CHINA

NOK Group's
Global Operations

TAIWANINDIA
THAILAND

EuropeVIETNAMMALAYSIASINGAPORE
INDONESIAUNITED STATES OF
AMERICA

Asia

North
America
Table of Contents
NOK Charter of Corporate Behavior

2

Message from the President

3

Concept of CSR and Our Organization

5

O

FUKUSHIMA

Strategy & Management
F

Management Foundation

6

NOK Group Business Overview

8

NOK Group's Products Support Daily Lives9

NOK Group's Technology

10

O

TOTTORI

IBARAKINOK Group

KANAGAWA Head OfficeTOKYO
SHIZUOKA

Environmental Performance
Environmental Management

11

E

Input & Output of Our Business Activities
Results and Targets

14

E

Global Warming Countermeasures

15

E

Control and Reduction of Environmental Hazardous Substances
Commitment to Recycling-Oriented Society
Reports from NOK Group Sites

17

E

Bases of NOK CORPORATION

18

E

Environmentally Conscious in All Business Activities
Procurement Policy

KUMAMOTO

13

E

Bases of NIPPON MEKTRON, LTD.

19

E

Bases of SYNZTEC CO., LTD.

21

E

Bases of NOK KLUEBER CO., LTD.

22

E

Bases of UNIMATEC CO., LTD.

Social Performance
Custmer First

23

C

Social / Local Area Activities

Communication with Shareholders, Investors and External Organizations
Relations with Employees

H

25

I

L

Third-Party Opinion

C

27
28
30

Editorial Policy

The symbols next to chapter titles indicate the chapter's relevance to the seven core
subjects of social responsibility as defined by ISO26000.
O

Organizational GovernanceH

Human Rights

L

Labor Practices

E

The Environment

F

Fair Operating Practices

C

Consumer Issues

I

Community Involvement and Development

This report has been edited in reference to ISO 26000:2010Guidance on Social Responsibility.
●Period Covered
Most of the activities described in this report were carried out in FY2017(April 1, 2017, to March 31, 2018), but some took place in FY2018.
●Organizations Covered
All divisions of NOK Corporation and other NOK group companies inJapan and abroad.
●Date of Issue for Japanese Version: July 2018
●Date of Issue for English Version: August 2018

1

NOK Charter of Corporate Behavior
We, NOK Corporation, are committed not only to contribute toward the economic development of society by creating added value
through fair competition but also to being an entity that contributes to society at large, according to the Management Principles
under the NOK spirit, by developing the Management Policies in such a way that all its stakeholders are proud of us and chase their
dream with us. We will behave according to the Principles of Corporate Behavior of Ten Principles both domestic and overseas so as
to respect human rights, comply with related laws, regulations, and international rules as well as the spirit behind those, discharge
our social responsibility with a strong sense of ethical values.

Management Principles

Management Policies

1. The Management has to run the Company based on feelingsof love and trust in its employees.

1. We are committed to be a strong and unique parts supplier while
focusing its managerial resources on core business areas.

2. The Management has to run the Company while uniting toensure full ventilation without forming any cliques.

2. We are committed to be a profitable and robust company while
fulfilling company-wide cost reduction programs ranging fromfront-line sales to manufacturing floor.

3. The Management has to run the Company while making
absolutely incredible efforts against all odds and risks.

3. We are committed to continuously improving our quality
while producing and selling our products that are proven to betechnologically unique and socially on a global scale.

4. The Management has to run the Company while pursuing
dreams with management plan.

Principles of Corporate Behavior
1. Provision of Socially Useful Products

We will develop and provide socially useful and safe products, thereby gaining satisfaction and deeper
trust both from end users and customers.

2. Fair and Appropriate Trade

We will engage in fair, transparent, and free competition and ensure that transactions are appropriate
when selling products and purchasing materials.
Also, maintain a sound and proper relationship with political bodies and government agencies.

We will disclose accurate information about the Company timely and appropriately.
3. Proper Disclosure and Management
Also, protect and properly manage personal and customer data and other types of information as well asof Information
intellectual property rights.
4. Severance of all relations with
Antisocial Forces and Groups

We will resolutely confront any antisocial forces and groups that threaten the order and safety of civilsociety, and sever all relations with such groups.

5. Commitment to Environmental
Conservation

We will proactively initiate environmental conservation activities while taking into account the factthat commitment to solving environmental issues is a prerequisite for a company to engage in businessactivities as a going concern.

6. Promotion of Social Contribution
As a good corporate citizen, we will actively contribute to community activities and other similar activities.
Activities
As a global corporation, we will comply with laws and regulations of the countries and regions where ourbusiness operations are based, and respect human rights and other international norms of behavior (e.g.
7. Cooperation with the International
prohibition of child labor and forced labor). Also, conduct business by taking into consideration the local
Community
culture and customs as well as the interests of stakeholders, and contribute toward the development of thelocal economy and society.
8. Respect for Human Rights andProvision of a Safe and Comfortable
Working Environment

We will promote mutual respect diversity, character and personality among employees, draw a line
between public and private matters, maintain order in the workplace, and provide a clean, safe andcomfortable working environment.

9. Responsibilities of Directors

The Directors recognize that it is their role to realize the spirit of this Charter of Corporate Behavior,
and will take the lead in an exemplary manner to implement the Charter within entire the NOK Group,
while encouraging our business counterparts to follow the same example. In addition, the Directors
will constantly listen to opinions from both within and outside the company to effectively improve thecorporate system and ensure compliance with business ethics.

10. Response to Problems

In the event of noncompliance with this Charter, the Directors will commit themselves to solving the
problem, while identifying the cause, thus taking measures to prevent the recurrence of similar problems.
Moreover, they will publicly disclose relevant information promptly and appropriately, fulfill theiraccountability requirements, indicate those who are in authority and those who are responsible, andseverely punish those involved, including them.

2Message from the President

Reinforcing business structure forsustainable growth and becoming a highly
profitable corporate group in which all
stakeholders can take pride

President of
NOK CORPORATION

Kiyoshi Doi

Our Three-year Plan for Reinforcing Business
Structure for Sustainable Growthfrom the 2011 Great East Japan Earthquake and the 2016 Kumamoto

As of recently, global politics and the global economy are becoming

respects human dignity. Respect for human dignity is one of the

Earthquake.
Another priority for us is implementing management spirit that

increasingly uncertain. The acquisition of knowledge andManagement Principles of the NOK group. We aim to build adevelopment of new technologies, as well as economic globalization,

workplace where all employees can feel that they are growing

have benefited people but worsened some social problems, suchthrough their work, and that what they are doing is worthwhile andas poverty, inequality of educational opportunities, religious

helping to enhance their organization or company’s performance

conflicts and tensions related to immigration issues. Recognizing

directly or indirectly. Our policies for organizational operation,and preparing against such risks and uncertainties, the NOK

personnel systems and employee education will be reviewed andgroup strives to produce low-cost original products—backed by

improved from these perspectives.

technology—which are useful to society, and sell them at reasonable
prices all over the world.

Continuing Environmental Management

The NOK group launched a Three-year Plan (mid-term businessplan) in FY2017. Its underlying policy is Reinforcing Business

The NOK group is committed to environmental conservation

Structure for Sustainable Growth . In pursuit of becoming a highly

activities because we consume energy as a developer, manufacturer

profitable corporate group in which all stakeholders can take pride,and seller of components used in automobiles, machinery, electronic

NOK places top priority on steadily continuing business. As thedevices. Safety, environment and quality are key factors that we

automotive industry moves toward electrification and advanced

must focus on in order to remain a preferred parts supplier todriver assistance systems (ADAS), and as new technology trends

customers. This has become particularly true in the past several

emerge, including advances in artificial intelligence (AI), we seek toyears and is now a precondition for sustainable business activities.

optimize our customer base by expanding sales of existing products

Taking action on environmental issues is one of our top priorities,

and by boosting development and sales of new products.

and we implement environmental management with this resolve

Under the new plan, we will also emphasize better, more reliable

in mind because we are under scrutiny by the government andquality by making comprehensive efforts to prevent the occurrence

consumers regarding environmental issues and must respondand outflow of defective products. We will rebuild our businessto external requirements, including those from the customers.

continuity management (BCM) system based on the lessons learned

We intend to make sustained contributions to building

3

A Corporate Group in Which All Stakeholders
Can Take Pridea recycling-oriented society by cutting back on the use ofenvironmentally hazardous substances, reducing waste anddeveloping environmentally friendly products at the global level.

We believe that communicating with local communities as a good

The Paris Agreement was adopted by COP21, which is officially

corporate citizen is essential for the continuation of business

known as the 21st Conference of the Parties to the United Nations

activities. Among various social contributions we have made to date

Framework Convention on Climate Change, and entered into force

are implementing community support programs in districts wherelater in 2016. In this climate accord, Japan pledged to reduce its

our sites are located and sponsoring events relating to the education

greenhouse gas emissions by 26% from the 2013 levels by 2030. Inof younger generations. We also seek to build an organization that

response to this move, the Japan Auto Parts Industries Associationencourages open communication and a workplace where employees(JAPIA), of which NOK is a member, established a voluntary

can work with a sense of fulfillment. This is a part of our efforts toenvironmental action plan to pursue its targets to be achieved by

implement the management spirit that respects human dignity. The

FY2020 and FY2030. The NOK group has developed a medium- to

NOK group aims to be an enterprise that not only brings economic

long-term environmental plan in view of these goals.

benefits to stakeholders, but also makes them proud.

Our Environmental Policy for the three years starting FY2017 is toTake on Challenges for the Next-Generation Environment. Its three

CSR Reportpillars are prevention of environmental problems, which is forpractical and effective BCM actions; reduction of our environmental

NOK published its first Environmental Report in 2004 and has

impact for future generations, which seeks to help Japan fulfill

continued since then, with the title being changed to Environmental

its pledge under the Paris Agreement; and enhancement of the& Social Report in 2006. It was renamed again as the CSR Reportenvironmental hazardous substance management system to meetfrom last year to better describe our business and social activities

external requirements, which relates to environmental quality. We

in addition to environmental efforts. This report is an important

will also address the recently discussed topics of environmental

tool to improve the way we communicate with stakeholders andimpact on water and biodiversity conservation in the course of these

the public. We would look forward to receiving frank opinions andactivities.

comments on the report.

In FY2017, we have started deliberations to draw up a mediumto long-term environmental vision for NOK to strengthen ourenvironmental management. We are striving to share more of the
NOK group’s environmental activities with stakeholders.

Group
Three-year Plan (FY2017 to FY2019)
Slogan“Reinforcing Business Structure for Sustainable Growth”
Chairman’s Initiatives(1) Building well-balanced customer mix-Targeting sales expansion and new business creation(2) Achieving sustainable unrivalled quality(3) Establishing practical and effective BCM(4) Implementing management spirit that respects human dignity-Fostering vibrant people and workplace

4Concept of CSR and Our Organization
Concept of CSR
As stated in the Charter of Corporate Behavior, the NOK groupresponsibility (CSR) is an integral part of continuous businessnot only endeavors to contribute to the economic development ofactivities.

society, but wants to be a company with which all its stakeholders

We also value communication with stakeholders as an effective

are proud of us and chase their dream with us. All of our business

way to broadly examine the business climate and situation, as

activities are built on the NOK Charter of Corporate Behavior

well as to identify business risks and opportunities. The NOK(Management Principles, Management Policies and Principles ofgroup aims to be a company that not only brings benefits to

Corporate Behavior). We believe that fulfilling the environmental,

stakeholders, but also makes them proud.

social and corporate governance aspects of corporate social

Local
Community
and Society

Customers

Stakeholders

Suppliers

Shareholders
andInvestors

Financial
Institutions
To be a responsible developer,
producer and seller of products aswell as energy consumer, we strive
to reduce environmentally hazardous
substances and waste and develop
environmentally friendly products.

Quality Control
Occupational Healthand Safety
Employment Measures

Waste Reduction
Energy Conservation
Chemical Substances Control

Environmental
Consciousness
Green Procurement
Ecodesign
Resource Conservation

Employees

Contribution
to Society

NOK Group's
Business Activities

Compliance
Information Disclosure

Corporate
Governance

Cooperation with
Local Community
Social Contribution
Working Conditions

Corporate GovernanceRisk Management

We h a v e a n i n t e r n a lsystem that ensures fair
and appropriate business
transactions as wellas business activities
that respect laws andinternational rules,
and seek to disclose
information in a timely,
appropriate manner.

Principles of Corporate Behavior

NOK Charterof Corporate
Behavior

Management Policies
Management Principles

Our CSR Organization

We provide products that meetcustomer needs, endeavor to createa workplace where every employee
can work safely with a sense offulfillment, and contribute to the local
community and global society as agood corporate citizen.

Board of Directors

The CSR Committee was organized in October 2016 to increase theReports and Proposals

awareness of CSR throughout the company and to promote CSR

Approval

CSR Committee

activities more effectively.
Chair: Manager of Corporate Administration Office

Reports

Members: Representatives of the Environment Control Dept.,

Related Internal Organizations
Central Environmental Protection Committee
Internal Control Audit Committee
Risk Management Committee
BCM Committee
Information Security Committee
Divisions
Safety and Health Committee
Labor-Management Council

Corporate Planning Dept., Corporate Communication Dept.,
Procurement Control Dept., Business Management Dept., Personnel
Dept., Safety & Health Dept., Legal Affairs Dept., General Affairs
Dept., Corporate IT Office, Engineering Administration Dept. andSales Administration Dept.
The CSR Committee collects reports from related internal committees
and divisions and oversees company-wide CSR activities while
disseminating external information, such as issuing CSR reports.

5

Management Foundation
Corporate Governance System
NOK's head office divisions have established rules for the internalContinuously strengthening the corporate governance system iscontrol system. In accordance with the rules, these divisions give

one of our business management priorities, and we are committed

directions to NOK's operating divisions and subsidiaries, while theto this goal.

control system to determine the progress of improvement andcorporate auditors. In our organization, directors who are well-

implementation. In FY2017, there were no legal violations orversed in operations work together in harmony, while good

lawsuits against NOK that affected our performance critically.

governance is maintained through mutual monitoring by internaland external directors, as well as through management audits
conducted by statutory auditors, including external auditors.

2 Environment

Corporate Governance System
Shareholders’Meeting
Appoint/Remove

Board of Directors

Audit/Report

Appoint/Remove

Refer important
issuesReport executed
operations

Consult

Appoint/
Supervise

Independent Auditor

Exchange information
ReportInternal Control Audit Committee

Reply

Chairman and President/Representative Director
ReportReportReportCheck progress of business plans,Management Meetings and Management Reviews management policies and operating
plans

Central Labor Management Council, etc.

DirectDirectExplain or discuss business plans,
important organizational changes,
management policies, etc.
ReportHead Office Divisions
DirectRisk management, compliance, quality/environmental management, etc.

Operating Divisions/Group Companies

Audit
Audit

The numbers of directors and auditors are as of June 27, 2018.

Compliance System

Crisis Management

Pursuant to the NOK Principle of Corporate Behavior, the

Our Corporate Risk Management Office takes the initiative in

Behavioral Guidelines Concerning Employee Compliance set

building our crisis management system, setting the following basic

forth the rules that employees must observe in their business

policies:

activities.

(1) Give first priority to ensuring safety, protecting people and

The NOK Group has designated October of every year as

saving people's lives.

a compliance promotion month in order to regularly inform(2) In the event of a disaster in the local region, make proactive

employees of NOK's compliance initiatives and to help raise

contributions to the reconstruction of the region as a member

their awareness of compliance.

of the community.

We also continuously promote awareness. Efforts include(3) In an emergency, minimize the impact on our customers anddistributing a compliance guide to every employee, publishingother stakeholders by continuing business to the extent

a series of articles entitled An Introduction to Compliance inpossible in order to fulfill our responsibilities.

company newsletters, conducting compliance training during

To ensure quick information gathering in the event of a major

new employee orientation and providing workshops for new

disaster, we maintain a safet y confirmation system and an

managers.

emergency calling tree, and have emergency communication
devices in place. We also store supplies necessary to resume

Risk Managementbusiness smoothly.
The Central BCM Committee was formed with the mission of establishingTo effectively address diversifying risks, the NOK groupa more effective business continuity management (BCM) systempromotes an organization-wide risk management system withbased on our experience of past disasters. Under the initiative of thethe Risk Management Committee as its center.

committee, we are planning and implementing group-wide measures interms of facilities, systems and employee education, including reinforcing
production facilities against earthquakes, strengthening product supply
functions, reviewing the current business continuity plans and conducting
projects that encourage the reform of employee awareness. Through allthese endeavors, we maintain our robust business continuity system.

6

3 Society

5 Auditors (including three external auditors)

Appoint/Remove

ReportBoard of Statutory Auditors

9 Directors (including two external directors)

1 Strategy & Management

Internal Control Audit Committee periodically audits the internal

NOK has adopted the format of a company with a board of

Information Security Measures

Business Plan

To protect information received from customers, preserve

We intend to be a competitive, world-leading enterprise groupcompany assets such as proprietary technologies, and ensure

under the management principle of respect for human dignity.

1 Strategy & Management

appropriate use of information assets, we have established theIn the Three-year Plan that started in FY2017, the NOK group

2 Environment

divisions and group companies and allow the Information Security

NOK Group Information Security Policy. Also, the Information

seeks to achieve sustainable growth and development bySecurity Committee has been formed to closely coordinate our

optimizing its customer base through sales expansion and new

information security efforts with our business activities and tobusiness creation, further improving and stabilizing quality,

involve top management in this initiative.

establishing a BCM system, and developing human resources to

In FY2016, we revised our overall information security regulations.

drive these activities.

The aim was to rebuild the information security measures of ourReporting and Whistle Blowing System

Committee to audit them from objective, expert perspectives.

The NOK group provides a reporting and whistle blowing system

In FY2017, the Corporate IT Office was established to further

for the early detection and correction of compliance regulation

reinforce the system for dealing with IT-related threats.

violations.

We will review these activities repeatedly to maintain and improve

An employee who has noticed a violation can contact theour information security measures.

reporting hotline. If the violation continues even after the reporting

3 SocietyProtection of Intellectual Property

or the employee finds it difficult to report the case, he or she can

Our Behavioral Guidelines Concerning Employee Complianceconnects the employee to the Internal Control Audit Committee

raise awareness among employees by providing precautions

or an external lawyer. The whistle-blower is protected fromregarding adherence to laws related to intellectual property

disadvantages under the compliance regulations.

contact the whistle blowing hotline. The whistle blowing hotline

rights. This is one of our efforts to promote patent application andrights acquisition for our inventions. The Guidelines also advocate
respect for intellectual property rights of third parties. The NOKGroup endeavors to prevent infringement of other companies’
patents through patent search.
To protect NOK's brands, we combat counterfeiting, even outside
Japan, through our Anti-Counterfeit Committee. In FY2017, we
uncovered eight counterfeit factories in China and got 629 web
pages selling imitation products taken down from online sales sites.

NOK Group Reporting/Whistle Blowing System

1 Reporting Hotline

2 Whistle Blowing Hotline

Violation

Violation❸Investigation/
Correction

Employee

Employee❹Response❷Investigation/
Correction❸Response❶Reporting❶Reporting

Violation by an employee in the same section
Head of the section

Report to❹Response

ChooseInternal Hotline〈NOK〉

Violation by an employee in another section
Legal division

Secretariat of the Internal Control
Audit Committee(Legal Affairs Dept.)

When the division in charge is uncertain
Administration control division7❶Reporting

External Hotline〈Lawyer〉❷Cooperation

NOK Group Business Overview
Net Sales and Operating Income (FY2013 to FY2017)

Sales by Segment (FY2017)■ Net sales (Billions of yen) ■ Operating income (Billions of yen)
Billions of yen

693.7
591.4

729.3

32.6
2015

39.8

2016

44.9

Net Sales:
729.3 billion yen

40
20

2017 (FY)

49.5%
361.1

0

■ Seal Business

46.2%
336.9

■ Electronic Products
Business■ Roll Business■ Other Business

Seal Business

2 Environment

2014

80
60

48.3

2013

713.1

67.1

400

0

746.1

1.4%
10.5

1 Strategy & Management

100

600

200

2.9%
20.8

Billions of yen

800

Net sales: 336.9 billion yen

3 SocietyOperating income: 40.8 billion yen
Major products: Oil seals, O-rings, dust covers, industrial rubber
and resin products, rubber sound and vibration isolators
Major operating companies: NOK CORPORATION, UNIMATEC CO., LTD.
Founded in 1941, NOK is Japan's first oil seal manufacturer.
This functional part seals oil and is used in automobiles and manyother machines in a wide range of industries. Our synthetic rubber
processing technology is also used to produce items such as
O-rings and packings.

Electronic Products BusinessNet sales: 361.1 billion yen
Operating income: 3.0 billion yen
Major products: Flexible printed circuits (single-sided, doublesided, multilayer and component assembly FPCs)
Major operating company: NIPPON MEKTRON, LTD.
The flexible printed circuit (FPC) is a film-based soft circuit board.
FPCs are built in electronic devices that need compact, lightweight,
super-flexible electronic circuit boards. They are commonly found insmartphones, mobile phones, hard disk drives and digital cameras.
As automobiles are employing an increasing number of electricand electronic components, automotive FPCs are finding wider
applications including switches, sensors and lights.

Roll Business

Other BusinessNet sales: 20.8 billion yen

Net sales: 10.5 billion yen

Operating income: 0 billion yen

Operating income: 1.1 billion yen

Major products: Development and charge rollers, cleaning blades,
fixing belts, pressure rollers, products for financial terminals,
products for textile machinery,

Major products: Special lubricants (grease, oil and coatingproducts for automobiles, industrial machinery, electric
appliances, food machines, etc.)

Major operating company: SYNZTEC CO., LTD.

Major operating company: NOK KLUEBER CO., LTD.

Production of highly functional rollers for office equipment such

We manufacture and sell a range of lubricants that perform

as copiers and printers.

excellently in severe operating conditions, such as super-high or superlow temperatures, at high speed or under heavy loads. Comprehensive
services are available to help customers improve the productivity of
their facilities and machinery and to reduce maintenance costs.

8

NOK Group's Products Support Daily Lives

1 Strategy & Management

Automobile and Traffic Safety ProductsElectronic Devices

The NOK group's products for automobiles and motorcycles include seal products (such as

NOK's FPCs, precision rubber and resin

oil seals, O-rings and gaskets), flexible printed circuits (FPCs), rubber vibration isolators,

components are built into various electronic

dust covers and lubricants. We also offer lane control/guidance products and shock
absorbers.

devices, such as smartphones, mobile phones,
computer hard disk drives, and digital cameras.

2 Environment

General Industrial Machinery

3 Society

NOK's oil seals, O-rings, gaskets, packings, and belts areused in construction machinery (such as power shovels,
bulldozers and cranes), agricultural machinery (such as
tractors and grain combines) and plant machinery for

Aircraft andRockets
Our seal products are installed
in engines and turbo pumps foraircraft and rockets.

Marine Vessels
We offer seals for stern tubes andbearings in marine vessels.

various industries (such as steel, paper and food).

Power Generation Plants
Our oil seals, O-rings and lubricants are built
into equipment and auxiliaries for thermal power
plants and renewable energy power plants (suchas wind, hydroelectric, photovoltaic and solar
thermal plants).

Residential
Equipment
NOK's O-rings are found in watersupply systems, water purifiers andshower toilet seats, while CELLSEAL
and membrane humidifiers are usedin residential fuel cells.

Office Equipment andATMs
The NOK group's products are installed incopiers, printers and other office equipment,
including development rollers, charge rollers,
fixing belts and cleaning blades. Our billbeater rubber is used in ATMs and otherfinancial terminals.

9

NOK Group's Technology
The NOK Group comprises NOK CORPORATION as the Group's

on its wide-ranging technological capabilities to develop newcore company, NIPPON MEKTRON, LTD. (electronic products),

technologies in an effort to contribute to a sustainable society

SYNZTEC CO., LTD. (products for of fice machinery), NOK

through our products, which are used in our customers’products.

KLUEBER CO., LTD. (special lubricants) and UNIMATEC CO.,Initiative for E-Mobility to Contribute to a Sustainable Society
In recent years, the electrification of automobiles has been

its core technologies and products as solutions for EVs, HEVs andmaking rapid progress toward reducing fuel consumption andother next-generation vehicles, while aggressively pursuing theenvironmental impacts. Keeping pace with the significant anddevelopment of new technologies and products.

Batteries & Capacitors
Supply of sealing plates for secondary
battery capacitors; various types of sealing
parts that use electrolyte fluid resistantmaterials, such as explosive-proof valves;supersized gasket for batteries

Drive Motors & Power Transmission
Supply of oil seals for high-rpm motors,
high-speed rotary seals for reduction
gears, dust seals for motors and CVTcases, and rubber vibration isolators

3 Society

Fuel Cell Vehicles
Development and supply of critical componentsthat comprise the heart of fuel cell vehicles,
including cell seals, high-pressure hydrogengas seals, membrane humidifiers and gas
diffusion layers (GDL)

Cooling
Supply of water-resistant rubber gaskets
and plug tube seals with complex
configurations for coolant passages ofmotors2 Environment

rapid changes in auto industry trends, the NOK Group is offering

1 Strategy & Management

LTD. (synthetic chemical products). The NOK Group builds

Sensors
Development of sensors using various
functional rubber products, including
electroconductive rubber, thermal conductive
rubber and pressure-sensitive rubber

PCUs & Inverters
Development and supply of electromagnetic
shields made of electroconductive rubbermaterials, heat diffusing parts madeof heat conductive rubber for circuit
substrates, and large-sized gaskets forcontrol system housing

Hollow Fiber Membrane Business Contributes to Solving Environmental Problems
Since the early 1980s, NOK has actively promoted businesses that help solve environmental problems. NOK’s hollow fiber membrane
module business is intended to support the purification of water, and NOK independently established a spinning technique for hollow
fiber membranes for use in household water purifiers. Over the years, we have improved and sophisticated this technology and are
currently supplying various types of membrane modules to the industrial sector as well as household users. Braid-reinforced PVDF hollow
fiber membrane, in particular, employs the proprietary nonsolvent induced phase separation method that delivers high permeability,
high strength and a permanent hydrophilic property, which were unattainable with conventional methods. As the deterioration of water
purification and drainage conditions due to population increase has emerged as a serious social issue in countries in the Middle East andAsia, NOK’s products are arousing high levels of expectation as a hollow fiber separation membrane for membrane bioreactor (MBR)
systems, which are drawing considerable attention as a promising purification and drainage treatment technology.

PVDF membrane layer

Braid for reinforcement

Membranestructure

ＭＢＲ

10

2m

Braid layer

Environmental Management
Basic Policies on Environmental Conservation
1 Strategy & Management

On the basis that the company is a member of the society, we give all our employees full recognition to the fact that our businessactivities, products, and services have diverse relations to the environmental impact in the global scale. We set and implement
the Basic Environmental Policy from a longitudinal perspective in order to contribute to the realization of sustainable
development of a society toward future generations.

2 Environment
3 Society1

Based on our unique technology, we promote the improvement of technology and development of products withenvironmental considerations to reduce the negative environmental impacts.

2

We promote energy saving to prevent the global warming, and promote reuse and reproduction of resources andreduction of wastes corresponding to the recycling society.

3

Setting the goals by NOK central environmental protection committee, we will continue environmental improvement
cooperating with business partners including suppliers, strengthen the control of chemical substances, prevent global
environmental pollution and strengthen the effort to initiative of water environmental impact.

4

We comply with related laws and regulations, local government ordinances, and regional agreement, etc., and promote
activities for environmental conservation.

5

We comply with self-imposed restrictions by the industry and customers, and positively engage in the requirementsfrom our stakeholders toward environmental issues.

6

We disclose information on environmental conservation and social contribution activities, and positively communicate
with local and broader society.

7

As a good corporate citizen, we strive to continually improve the environmental management system, as well as
promoting all employees to recognize the importance of biodiversity and conservation of global environment andcultivate the awareness toward the global environment.

●Third revision on April 1, 2018

President of NOK Corporation
Chairman of Central Environmental Protection Committee

Kiyoshi Doi

Environmental Management System
To promote our environmental management activities smoothlyin our activities to reduce energy consumption, manage waste

and steadily, company-wide efforts are made under the following

and reduce VOC emissions. The Sub Committee for Promotion ofsystem. The Central Environmental Protection Committee, chaired

Environmental Management, launched in FY2017, formulated aby the President, sets the overall direction of our environmental

medium- to long-term environmental vision.

management and implements it. Sub Committee take the initiative

President（Supervisor of Environmental Management）

Central Environmental Protection Committee
Internal Audit Officer

Chairman (President)
General Manager of Corporate Quality &Environmental Control OfficeInternal Audit Team

General Control Secretariat ofEnvironment(Environmental Control Dept.)

Head of Plants(Director of Environmental Management at Plants)

Vice-Chairman(General Manager of Corporate Quality &Environmental Control Office)(Director of Environmental Management)

Committee forEnvironmental Protection
at Plants

All Sections

11

Environmental Protection
Sectional Meeting

Head of Each Office

Sub Committee for
Reduction of Energy Consumption

Head of Each Division

Sub Committee for
Waste Management

Internal Audit Officer

Sub Committee for
Reduction of VOC

General Control
Secretariat of Environment

Sub Committee for Promotion ofEnvironmental Management

NOK will establish a robust environmental management system by upholding the slogan, Kankyo
Gannen: The First Year of NOK’s Environmental Management (The Year for Groundwork).
To make a fresh start, we designated the fiscal year

NOK has set medium- to long-term goals regardingof 2018 as Kankyo Gannen or the First Year of NOK’s

the reduction of CO2 and VOC emissions and waste

Environmental Management (although it is the second

management. These goals are in line with Japan’s

year of the three-year plan) to promote group-wide

greenhouse gas reduction commitment under theendeavors to reform our environmental management
system. Each division will formulate specific goals tothis government pledge and the Japan Auto Parts

address respective challenges and work to achieve

Industries Association (JAPIA)’s eighth Voluntary

the goals with a sense of ownership.

Action Plan on the Environment.

At the same time, we formulated the NOK Twin

NOK recognizes that safety, the environment andGreen Plan 2030 as a vision that will guide ourquality are prerequisites for our business operation.

environmental initiatives toward 2030. By specifying

As for the environment, our policy is to Take on

Green Factory initiatives (activities at factories) and

Challenges for the Next-Generation Environment.

Green Product initiatives (activities for products),
the plan provides us with a roadmap for better

environmental problems (for BCM); reduction of ourenvironmental per formance. We are continuingenvironmental impact for future generations (forour untiring efforts to achieve the best possible

the Paris Agreement, etc.); and enhancement of theenvironmental performance as a corporate citizen.

environmentally hazardous substance management

To this end, we accurately identify and analyze thesystem to meet ex ternal requirements (forimpact of our operations on the environment whileenvironmental quality). To achieve these objectives,using a P-D-C-A cycle approach to ensure thatNOK Group companies, both in and outside Japan,

NOK’s technologies and products can have a positive

closely cooperated in implementing various initiatives

impact on the environment, over and above that oflast year. However, we were unable to produce

our efforts to reduce CO2 emissions.

satisfactory results.

3 Society

The three pillars of the policy are: prevention of

2 Environment

Paris Agreement, customer requirements based on

1 Strategy & Management

In its three-year plan that commenced in FY2017,

Operating Officer, General Manager of Corporate
Quality & Environmental Control Office(Director of Environmental Management)

Tomio Nakayama

Environmental Management System
NOK has built an environmental management system compliant
with ISO14001 and is implementing it. Given the significant
impact of our production activities, we have obtained integrated

F Y2 018 E nv i r o n m e nt a l Po l i c y

ISO14001 certification for all of our production sites. NOK thus

KANKYO GANNEN:

ensures that our manufacturing helps reduce environmental

The First Year of NOK’s Environmental Management(The Year for Groundwork).

impacts. Our system conforms to the revised standards of 2015.
To ensure compliance with environmental laws and regulations,－For establishing a robust environmental management system－

as is strictly required by ISO14001, NOK’s divisions and group

Pheriority Action Items

companies have identified laws and regulations that they must

● Maintain and improve an EMS

observe, along with key control items, and periodically check and・Stay compliant with ISO14001:2015
・Closer communication with external and internal stakeholders
・Foster an awareness of environmental conservation

evaluate the compliance status. We will continue our effort forearly detection of possible risks related to environmental accidents
and compliance and for prevention of nonconformities.

● Prevention of environmental problems (for BCM)

● Registration Agency: Japan Automobile Research Institute,

・Promote voluntary audits
・Prevent accidents and emergency situations from recurring by
sharing such irregularity information across the organization

Registration Body
● Certificate Number: JAER 0335

● Reduction of our environmental impact for the
next generation (for the Paris Agreement, etc.)

NOK Environment Mark・Improve our environmental performance
・Reduce our environmental impact through activities of Sub Committee

To raise employee awareness of environmental conservation, we
asked them to submit proposals for the company's environment● Enhancement of the environmentally hazardous
substance management system to meet externalrequirements (for environmental quality)

mark. The mark chosen as the best design has been used as the
symbol of NOK's environmental conservation activities.
The mark combines three letters that

・Increase the accuracy of investigation for environmentallyhazardous substances contained in products and promptly
respond to requests for investigations

read NOK , where N represents Nature , K

indicates Keep , and the O in the centeris designed in the shape of a globe. This
design effectively conveys the message

Protecting Nature on Earth.

12Input & Output of Our Business Activities
NOK Corporation and Production Subsidiaries in Japan during FY2017
1 Strategy & Management

INPUT
Raw Materials

2 Environment

Rubber………………………… 15,357 t
Additives & Adhesives… …… 11,498 t
Plastics…………………………… 1,183 t
Metals… ……………………… 62,994 t

PRTR*1Substances
Volatile Organic Solvents…… 1,479ｔ

3 Society

Energy (Production)
Electricity…………… 282,247 MWh
Gasoline… ……………………… 157 kL
Kerosene…………………………… 97 kL
Heavy Oil A……………………… 783 kL
Light Oil… ………………………… 35 kL
LPG…………………………… 917,228 kg
Utility Gas… …………… 365,767 N㎥

Water
City Water… ……………… 280,634 ㎥
Ground Water… …………… 29,224 ㎥
Industrial Water… ………… 60,048 ㎥

OUTPUT

DesignEmission to the Atmosphere● Environmental Assessment of Products● Environmental Impact Assessment

CO₂ (Production)………167,547 t-CO₂*2
PRTR Substances(Production)……… 246 t
CO₂ (Raw Materials) …… 172,895 t-CO₂*3

Procurement

Emission to Water● Environmental Impact Assessment

Returned Water… ………… 269,208 ㎥
Sewage System………………… 8,170 ㎥
PRTR Substances………………… 26 kg● Green Procurement● Environmental Audit of Facilities

and Machines

Waste
Industrial Waste… …………… 12,733 t(Waste Plastics)
（7,397 t）
Recycled Waste… …………… 12,278 t
Landfill Waste… …………………… 455 t
CO₂ … ………………………2,607 t-CO₂*4（Outsourced Waste Disposal）

Production● LCA (Life Cycle Assessment)● Pollution Control● Chemical Substances Control● Energy Saving● Waste Reduction● Environmental Impact Assessment

Units Sold

Energy (Logistics)
Diesel… ……………………… 3,777 kL
Rail………………………… 171,000 tkm
Ship… ………………… 1,098,000 tkm
Truck…………………… 3,330,000 tkm
The amount of diesel refers to the total amountpumped into trucks exclusively used for bothtransportation between production sites andlogistics centers and between logistics centers andcustomer sites.
tkm (ton-kilometer) = (Number of boxes transported)× (Mass) × (Kilometers driven)

8,335 Million Pieces

Logistics● Efficient Transportation

Emission to the Atmosphere (Logistics)● Promotion of Modal ShiftCO₂

10,321 t-CO₂*2

CO₂ emissions from exclusive trucks are calculatedby the fuel method. CO₂ emissions from cooperativetransport by truck, ship and rail are calculated by
the ton-kilometer method. The amount shown above
is a sum of both results.

Customers★Scope of coverage
The above input and output refer to the amounts from business activities
at NOK’s seven divisions (Fukushima/Nihonmatsu, Kitaibaraki, Shonan R&D
Center, Shizuoka, Tokai Environmental Products R&D Center, Tottori, andKumamoto) and 17 production subsidiaries in Japan (Tenei Seal Industry,
MIHARU Industry, SENPOKU Industry, MIYAZAKI Industry, Tohoku Seal
Industry, Nihonmatsu Seal Industry, Isohara Polyurethane Industry, ISSHIN
Industries, MYK, Kikugawa Seal Industry, TVC, SAGA SEAL Industry, Kumamoto
Seal Industry, KUSU Kogyo, Nichinan Seal Kogyo, Kawazu Kogyo and TOSU
Seal Industry). Exceptions are PRTR substances, water used and emission towater, for which the amounts refer only to NOK's seven divisions.

treatment in the form of waste. It brings together information about which
chemicals are being released, how much and from which sources. (Source:
Website of the Ministry of the Environment)＊1 PRTR＊4 CO2（Outsourced Waste Disposal）＊2 CO2CO₂ emissions are calculated in accordance with the greenhouse gas
emissions accounting and reporting manual under the Act on Promotion of
Global Warming Countermeasures.

＊3 CO2（Raw Materials）

CO₂ emissions are calculated from the mass data of purchased raw materials
while referring to the JAPIA LCI Guideline.

Pollutant Release and Transfer Register, a publicly accessible database ofhazardous chemicals released to the environment and transferred off-site forCO₂ emissions are calculated based on the emission factor database fororganizations calculating GHG emissions through supply chains.

13

Results and Targets
FY2017 Results and FY2018 Targets for Environmental Protection
FY2017

Environmental Policy

FY2018TargetPrevent environmental problems (Monitor and eradicate environmental problems by thoroughcompliance)

Promotion ofcompliance self-audit
in Japan and abroad

Compliance selfaudits conducted inJapan and abroad

Promotion ofcompliance self-audit
in Japan and abroad

Eliminate operational problems(Review the environmental aspects of changes and irregular
activities)

Sufficient quantityand quality of humanassetsSufficient quantityand quality of humanassets secured

Sufficient quantityand quality of humanassets51,82048,55852,986

Intensity (t-CO₂/million yen) at production divisions

1.71

1.56

1.630

Intensity per square meter (t-CO₂/m²) at development divisions

0.17

0.16

0.180

VOC emissions to the environment (t) from NOK's divisions

1,034

1,027

805

158

135

109

Absolute CO₂ emissions (t-CO₂)* from NOK group companies in Japan and abroad

834,851825,652

788,364

Intensity (t-CO₂/million yen) at NOK group companies in Japan and abroad

1.18

1.22

ー

VOC emissions to the environment (t) from NOK group companies in Japan and abroad

3,900

4,159

3,266

Comply with environment-related laws and regulations

Maintain and improve EMS

Absolute CO₂ emissions (t-CO₂)* from NOK's divisions

Reduce environmental
hazardous substances

CFC facilities (number of machines)

Create and expand useof efficient environmental
hazardous substances survey
system

Promptly respond to requests for investigation of environmental
hazardous substances contained in products

Creation of a database Made preparatory work for creation Creation of a databaseto manage productsof a database to manage products
to manage products
containing environmental containing environmentally containing environmental
hazardous substances
hazardous substances
hazardous substances

Plan for information sharing systems

Upgrading ofenvironmental quality
voluntary audits

Voluntary audit items
upgraded and audits
conducted

Continuing ofvoluntary audits onenvironmental quality＊ The CO₂ emission factor of electricity usage in FY2016 and FY2017 used for Japanese sites is 0.571 t-CO₂/MWh (actual CO₂ emissions factor of electricity usage at the generating end afterreflecting Kyoto mechanism credits during FY2012). For overseas sites, 0.642 t-CO₂/MWh (calculated from the weighted average of the group's global power usage for FY2012) is used.

Formulation of Long-term Environmental Vision for 2030
NOK Twin Green Plan 2030
As climate change and energy issues have become
increasingly serious problems, the Paris Agreement
entered into force to combat global warming and theSustainable Development Goals (SDGs) were adopted

by the United Nations. In line with such global initiatives,
NOK has formulated the NOK Twin Green Plan 2030 topromote our environmental conservation activities for asustainable society.

Green Factory

Green Product

NOK will reduce CO2 emissions from factories by
20%* from FY2007 through environment-friendly
manufacturing initiatives.

NOK promotes the development of productsthat contribute to next-generation environmentfriendly technologies.
Initiatives

Initiatives

・ Develop products that contribute topopularization of next-generation energy-saving
technologies, such as fuel cells

・ Develop production equipment that consumes
20% less energy than conventional equipment
・ Actively promote the use of renewable energy

・ Contribute to reducing environmental impact throughthe development of low-friction technologies
that help achieve greater fuel efficiency

・ Reduce waste and aim to achieve a recycling rate of 100%・ Reduce water consumption and ensure cleaner
wastewater・ Develop functional membranes that help recycle
water (supply of clean water and water circulation)

・ Control and reduce hazardous chemical substances
throughout processes

・ Rigorously manage chemical substances containedin products to improve their environmental quality●Relevant SDGs

●Relevant SDGs

14

3 Society

Result2 Environment

Target1 Strategy & Management

Action ItemGlobal Warming Countermeasures

Activities of Sub Committee for Reduction of Energy Consumption
1 Strategy & Management

N O K e n g a g e s i n c o n t i n u o u s a n d s t r a te g i c

speeding up operations. In addition, we reviewed

reducing energy consumption by at least 1% of
the previous year’s usage. This goal was set intechnologies to visualize power consumption.
We also analyzed airflows in plants and started

2 Environment

I n F Y2017, we c o n d u c te d o u r o n g o i n g key

energy conservation activities with the goal ofline with JAPIA’s target as defined in its eighth
Voluntary Action Plan: “a 20% reduction of CO 2

emission intensit y from the F Y20 07 level in
FY2030.”activities for eliminating wasteful facilities andope rations, such as replacing conve ntional
lights with LED lights, preventing heat loss andour energy management system and adopted IoT

to discuss how we should improve the working
environment and achieve energy conservation at
the same time.

We will expand the scope of this activity beyond
factories to the head office, sales offices andcenters. With the participation of all employeesof the Group, we seek to promote energy-saving
activities by implementing a P-D-C-A cycle.

3 Society200,000
150,000
100,000

1.95

1.33

1.37

1.37

99,55899,89847,379

2013

1.85

1.77

on the reduction of the amount of diesel oil used by

1.67

1.30

1.31

99,186

104,451

114,080

45,46042,96545,44046,694

2014

2015

2016

2017

Actual emissions from NOK s seven divisions
Emission intensity for NOK s seven divisions

is becoming more important, the committee is focusing

2.00

50,0000Being aware that energy conservation in transportation

Emission intensity (CO2-t/million yen)

1.99

Yushi Nakahata

Environmental Action in Transportation

CO2 Emissions and Intensity
Actual emissions (CO2-t)

Manager of Production Engineering Dept.,
Production Engineering Technology Office
Chair of the Sub Committee for Reduction of Energy Consumption

1.50

trucks. In FY2017, NOK reduced the annual diesel oil

1.00

consumption by 49,000 liters by improving transport

0.50

vehicles and enforcing eco-driving.

efficiency, reviewing transport routes, introducing new

0.00

Trend of CO₂ Absolute and Intensity Emissions from Transportation

Actual emissions from 17 production subsidiaries
Emission intensity for 17 production subsidiaries

Unit sales（million pcs.）
Intensity（t-CO2/million pcs.）
CO2 emissions（t-CO2）
12,0001.7
10,400 10,077
10,3219,814 10,074
1.6
10,000
8,335
7,946
8,053
7,739
7,485
1.5
8,000

An increase in CO2 emissions in FY2017 is attributable
to the increased production of seal products forauto m o biles in resp o nse to the increase d auto
production in Japan and China (a year-on-year increase

6,000

of 2.8% for NOK divisions; and a year-on-year increase

4,000

of 9.2% for production subsidiaries).

2,000

1.29

1.31

1.4
1.27

1.24

1.3
1.2

Emission intensity for NOK divisions decreased, while0that for production subsidiaries remained unchanged.

■ CO₂ emissions

NOK has been promoting energy-saving efforts with

1.30

2013

2014

2015

■ Unit sales

2016

1.1
2017（FY）■ CO₂ intensity emissions

Note: See ★ on page 13 for the details of NOK’s seven divisions and 17
production subsidiaries in Japan.

a view to simultaneously achieving better businessperformance and meeting global warming mitigation
goals. In addition to ongoing efforts to develop energyefficient production equipment, we improved theefficiency of existing hydraulic pumps at NOK divisions
and production subsidiaries.
Led by the Sub Committee for Reduction of Energy
Consumption, energy-saving activities are being
promoted by introducing solar panels, replacing
conventional lights with LED lights and upgrading air
conditioners to high-efficiency models.
15

Development of Energy-Saving Equipment
NOK continues the development of energy-saving production

them have been overhauled or replaced due to obsolescence inrecent years. NOK therefore examined the possible introduction

improvement of productivity and yield.

of hybrid electric motors and confirmed their effectiveness insaving energy. Having confirmed that rates of energy conservation

We believe that a single drastic reform and continuous, small(for a pump) of 40% and 63% were achieved by simulation andimprovements are both effective in achieving energy conservationby actual measurement, respectively, NOK decided to adopt thisfor facilities. Introduced here is a typical example of the approach

type of hydraulic pump as the standard model.

hydraulic pumps used for rubber vulcanization equipment.

In the coming years, we will promote the introduction of thisNOK has used energ y- ef ficient, variable capacit y t ypes ofhybrid type of hydraulic pump, while continuing the developmentof more energy-efficient equipment (for example, from hydraulichydraulic pumps to power vulcanization equipment. Withto electric pumps).

approximately 4,000 such units installed in Japan alone, many ofComparison of Power Consumption between
the Current and Energy-efficient Models

Energy-saving Hydraulic Unit

2 Environmentof accumulating small efforts in achieving energy conservation by

1 Strategy & Managemente q u i p m e n t , t a k i n g i n to a cco u n t i t s co n t r i b u t i o n to t h e︵ kWh︶Power consumption

8

3 Society

7

6
5
4
3
2
1
0
0
50
Time
（S）

100

150

200

250

300

Pump

ー Conventional model ー Energy-efficient model

Controller

Use of Renewable Energy
NOK has introduced renewable energy for emergency lighting (incase of power outage). For the purpose of BCM, we promote theSiteadoption of equipment powered by renewable energy sources
when plant buildings are constructed and renovated.
Solar panel

Skylight Tube

Solar panel

16

Annual Output

Fukushima Plant (Rooftop)

45MWh/year

Fukushima Plant (Exterior light)

15MWh/year

Kitaibaraki Plant (Rooftop)

22MWh/year

Kitaibaraki Plant (Guard gate)

4MWh/year

Kumamoto Plant Office Building

1MWh/year

Kumamoto Plant (Guard gate)

11MWh/year

Fukushima Plant (Exterior light)

10MWh/year

Kitaibaraki Plant (Isohara
Polyurethane Industry) (Roof)

61MWh/year

Kumamoto Plant (Roof)

24MWh/yearControl and Reduction of Environmental Hazardous Substances

Activities of Sub Committee for Reduction of VOC
1 Strategy & Management

NOK continues to promote the reduction of VOC

its use at the last overseas site in FY2017. As of

the re duction of VOC emis sions was almost
as planned (101% of the annual plan) at NOK’s

eliminated at 11 sites in Japan (including production
subsidiaries) and six sites outside Japan.

2 Environment

continue growing in FY2018, we are planning toemissions released into the atmosphere. In FY2017,

divisions. However, we failed to meet the plan on a
global basis, reaching merely 93% of the reduction

target, due to increased production exceeding theinitial forecast. While production is expected to

introduce combustion devices to further reduce
VOC emissions and are formulating a plan toreduce emissions to a level below the previous
year’s performance.
As a result of our reduction ef for ts focusing
specifically on dichloromethane, which has a highenvironmental impact, we completely eliminatedthe end of FY2017, dichloromethane was totally

Meanwhile, we started technical deliberations on

the next reduction target in FY2017. For example,
we explored how to improve the yield of organic
solvents used in adhesives and paints and found atechnique that seemed likely to achieve a roughly

25% reduction. In the next step, we will apply thetechnology to mass production.
Technical deliberations on other substances
are also underway. Once technical viability for a
substance is established, we will verify it in mass
production equipment.

3 Society

1,600
1,400
1,200
1,000
800
600

343

1,183

Chlorinated organic solvent（t）
120

Regulations concerning chemical substances are becoming stricter

100

kinds of laws and regulations, such as the European Union's ELV

357

88

302

あたり

79
1,171

307

299
967

895

0

2013

2014

20

0

2015

2016

year after year, with different countries establishing different
Directive, RoHS Directive and REACH Regulation. The NOK group80

keeps up with these changes in regulatory requirements and

60

1,027

400
200

Masashi Kudo

Activities to Control Environmental
Hazardous Substances

Amount of VOC Emissions
VOC
（t）
1,800

Manager of Material Engineering Dept.,
Corporate Technology Office
Chair of the Sub Committee for Reduction of VOC

0trends to manage chemical substances properly.

40

We have also obtained ISO14001 certification through external

20

audits and have built our own environmental management system.
The control criteria for environmental hazardous substances are02017 （FY）

incorporated into this system to prevent prohibited substances■ VOC from NOK ■ VOC from production subsidiaries in Japan■ Chlorinated organic solvent（included in VOC）

from adhering to, being mixed into or leaking into products or
packaging materials in any process from the acceptance of raw

Scope of coverage: NOK’s seven divisions and 17 production subsidiaries in Japan
Note: See ★ on page 13 for the details of NOK’s seven divisions and 17 production
subsidiaries in Japan

materials and manufacturing at production lines to delivery to thecustomer.
We ensure that the same level of chemical substance control(environmental qualit y control) as at our Japanese sites isCompliance with PRTR Law

implemented for products delivered to customers from any ofour production sites outside Japan. Relevant plants in JapanIn FY2017, we reported seven regulated substances under theand abroad are subject to self-auditing their management of raw

PRTR law, which mandates that companies submit information onmaterial procurement, production processes and other activities.

environmental release and transfer of specified toxic chemicals.

This allows us to prevent nonconformity of environmental quality(e.g., unintended entry of prohibited substances) and other●Results for FY2017

problems from occurring. The results of self-audits and follow-up

Transfer（kg）

Emissions（kg）

CabinetOrder
No.

Atmosphere

PublicWater

Landfill

Soil

Drainage

Off-site

Zinc Compounds(Water-Soluble)

1

0

26

0

0

0

1,695

for customers’ requests for investigation of environmentally

Ferric Chloride

71

0

0

0

0

0

258

deployed a system to respond to such requests quickly and

Xylene

80

192

0

0

0

0

26

N,N-Dimethylformamide

232

90

0

0

0

0 10,000

investigation framework.

Toluene300

245,175

0

0

0

0

42,137Moreover, we anticipate cases in the future where our customers

Methylnaphthalene

438

5

0

0

0

0

0

Methylenebis(4,1-Phenylene)
Diisocyanate

448

2

0

0

0

0

1,200

new regulatory requirements related to chemical substances. To

245,46526

000 55,316

us to rapidly respond to such customer needs, including our

Substance Name

Total

activities are shared through an internal database, which has been
made accessible to an increasing number of parties. To prepare
hazardous substances contained in delivered products, we haveaccurately as part of our efforts to build an efficient, effective

request the discontinuation of the use of certain substances, or
the replacement with other ones in order for them to comply withdeal with such situations, we are creating a system that enables
ability to answer whether or not we can meet customer requests.

Scope of coverage: NOK's seven divisions
See ★ on page 13 for the details of NOK's seven divisions.

17Commitment to Recycling-Oriented Society

Activities of Sub Committee for Waste Management
unfortunately dropped to 97.2% since we had arenamed the Sub Commit tee for Waste

new type of waste for which a method of recycling

Management. This committee has led activities

has not been established.

to reduce waste associated with production. In

While continuing activities to reduce materials

FY2017, waste from production increased roughly

to be discharged, we will work out new ways to

10% from the previous year due to favorable

reduce nonconforming products (especially heavy

production and sales performance as well as theitems), to promote recycling and to turn waste into

start of a new foundry at a production subsidiaryvaluables.

in Japan.

The Committee will continue to promote efforts to

T h e r e c yc l i n g r a te a t N O K ’s d i v i s i o n s a n denhance our compliance, aiming for more advanced

production subsidiaries in Japan reached near

waste management.

2 Environment

FY2013. However, the recycling rate for FY2017

e mis sions activitie s at the NOK G roup was

1 Strategy & Management

In F Y2014, the commit tee in charge of zero

Deputy General Manager of Corporate Quality & Environmental
Control Office and Manager of Environmental Control Dept.
Chair of the Sub Committee for Waste Management

the ceiling and stands at 99.8% or above since

Masayuki Kimura
3 Society

Trend of Industrial Wastes and Landfill Wastes●17 production subsidiaries in Japan●NOK's seven divisions
Amount（t）
12,00099.9%
10.000
8,000
6,000

8,895

99.9%

8,738

99.9%

7,945

8,842

8,786
28

4,000
9
2013

■ Industrial waste

6
2014

9

8

2015

2016

10,0008,000

30■ Landfill waste

11,95899.9%

11,642

30

4,000

11

2,000

0

0

■ Recycling rate

12,575

Recycling rate（%）
97.2% Amount（t）
50
15,107426
40
12,977
99.9%

22

6,000

10
2017（FY）

99.9%

12,000

40

20

2,000
0

Amount（t）
16,00099.8%
14,000Recycling rate（%）
Amount
99.9%
99.7%
（t）
50

2013

■ Industrial waste

2014

13

2015

■ Landfill waste

20
10
2016

10
2017（FY）■ Recycling rate

Breakdown of Industrial Waste●Total for NOK's seven divisions and 17 production subsidiaries in Japan
Amount（t）
25,00020,000

31

17

22

19
9,468

454
10,206

9,004

8,729

8,838

10,000

2,921

2,977

2,918

2,957

5,000

8,897

8,657

8,742

9,375

10,182

2013

2014

2015

2016

2017（FY）

15,0000■ Landfill waste■ Recycling of plastic waste, such as rubber waste■ Reduction and recycling of sludge, waste oil, etc.
■ Recycling of metal waste

3,051

Note: See ★ on page 13 for the details of NOK’s seven divisions and 17
production subsidiaries in Japan.

180Environmentally Conscious in All Business Activities
Environmental Impact Assessment for Design

Application of the Standard of Environmental Impact Assessment for Design in FY2017

We assess the environmental impact of designs of new products,

1 Strategy & Management

Division

new materials and new production machines in accordance with
NOK's Standard of Environmental Impact Assessment for Design.
During the design phase, we plan for the disuse of environmental

Applicable Cases Performance Improved

Fukushima

767

125

Kitaibaraki

1,116

21

hazardous substances, low energy consumption, high product

Shonan R&D Center

142

89

yields, downsizing, long service life, low friction and low wear

Shizuoka789

17

performance, as well as reuse, low waste and recycling of end-of-

Tokai Environmental Products R&D Center21

3

life products.

2 Environment

Tottori

83

71

Kumamoto

27

20

2,945

346

Total

Standard of Environmental Impact Assessment for Design

3 Society

Production

Spread ofEnvironmental
Hazardous Substances●Avoid use of environmental

hazardous substances●Design production processes
with low environmental
impactDisposal

Use

Material Consumption

Disposal of Waste● Improve the yield rate of products●Make products reusable● Save materials by downsizing●Adopt low emission or● Improve service life of products

recyclable designs thatare easy to disassemble

Energy Consumption● Minimize exhaust heat from molding

machines●Adopt machine designs that use energy

efficient components●Adopt low friction design to save energy

during use

Environmental Protection Cost

Trend of Environmental Investments and Costs●NOK's seven divisions

NOK calculates its environmental investments and expenses in
its business activities annually to fulfill its environmental social（Millions of yen）

2,000

responsibility and promote environment conservation activities
efficiently and effectively.

1,500

Our environmental investments in FY2017 include conserving
energy by installing high efficiency air-conditioning systems

700
840
792

1,000

and replacing conventional lights with LED lights, improving

636

wastewater treatment facilities, and reducing CFC facilities by
renewing the thermostatic bath.

500

We are introducing solar panels, which also serve a function
under BCM.

0

438

133

2013

2014

■ Environmental investments

788
73
2015

2016

698
149
2017 （FY）■ Environmental costs

Note: See ★ on page 13 for the details of NOK's seven divisions.

19Biodiversity
for NOK Biodiversity Conservation.

ecosystem services. Based on the results, we have confirmed

This standard defines the biodiversity-related actions wethe direction that NOK should take to conserve biodiversity andshould take in our business activities and promotes biodiversity

established a common internal regulation in FY2011, the Standard

conservation.

Head View of Relationship between NOK Business Activities and Biodiversity

Store

Protect
speciesProtect
biosystem

Rubber

Leather product

Metal

Detergent/degrease

Resin

GreaseChemicalTextileTransport

Customer
Product

Store

Protect
biosystem

Transport

Waste

Waste
disposal

Reuse

Protect
biosystem

RecycleLandfill

Business
Activities

Carrier

Manufacturer

Product/service
Discharge

Effluent treatment

Pipeline
Tanker

ＧＨＧ /ＣＯ２

Deodorize/dust removal

ChemicalTransport

Water

Transport
Mining

Bio Resource

Oil & Gas

Agriculture
Prevent fromdepletion

Sustainable useof bio resource

Transmission

Fuel

SupplyPump upgroundwater

Supplier

Use ofgroundwater

Coal

Forestry

Uranium

Oil

Fishery

Electricity

Gas

LivestockPrimary Energy

Electricity

Water

Air/water/soil
SOC
GHG emission

Protect
biosystem

Protect
biosystemNOK Business and Biodiversity
Activities

Related Ecosystem Services and Impact

1 Efforts to reduce CO₂ emissions and emission intensity

Impact on climate change

2 Promotion of water use reduction and water reuse

Impact on fresh water use and water purification ability

3 Reduction of nonconforming products, improvement of yields, reduction ofindustrial waste and improvement of the recycling rate

Use of wood, paper, textile, fuel, oils and fats, raw materials, genetic
resources, biochemical substances, natural medicines, etc., and collectionof biological resources

4 Prevention of entry of specified chemical substances into exhaust, andrestriction of volatile chemical substances, dust, etc.

Atmospheric quality and climate

5 Prevention of entry of hazardous substances, oil, etc., into drainage

Impact due to discharge of contaminants into waters

6 Management of nighttime outdoor lighting to limit leaked light and lighting hours Impact of nighttime lighting and noise
7 Compliance with applicable laws and regulations, including the Noise
Protection from natural disasters associated with water retention and soil
Regulation Act, Vibration Regulation Act, Soil Contamination Countermeasures erosion, recreation and spiritual wellness, and changes in habitats due toAct, Air Pollution Control Act, and Water Pollution Control Act
land use
8 Proper disposal of industrial waste

Protection from natural disasters associated with water retention and soil erosion,
recreation and spiritual wellness, and changes in habitats due to land use

9 Implementation of internal environmental education, participation in social
environmental activities, etc.

General20

3 Society

Wooden/paper productLand
providerLand use/
Construction

Protect
biosystem
Raw material

Carrier

Controlstorage

Carrier

Sub material

Constructor

2 Environment

Transfer ofnonnative
species

Air/water/soil
SOC
GHG emission

1 Strategy & Management

We assessed our impact and dependence on biodiversity andReports from NOK Group Sites
NOK Divisions

Group Companies

Fukushima and Nihonmatsu Plants

NIPPON MEKTRON, LTD. (MEK)

1 Strategy & Management

In cooperation with companies at the site, we promoted activities based on theenvironmental management system. We underwent a transition audit in February
and completed the transition to ISO14001:2015.

The MEKTEC group has been committed to minimizing its environmental impact
by saving energy and reducing waste, and also to conducting audits to ensure
regulatory compliance. We contributed to reducing CO2 emissions by replacing
old exterior lights (mercury lamps) in plants with solar-powered LED lights andupgrading steam boilers to more efficient models having less impact on theenvironment.

The Fukushima Plant is scheduled to expand plant buildings in FY2018 and iscurrently undertaking environmental assessments for the work.
The Nihonmatsu Plant is also planning to expand plant buildings and construct a
new one, and is undertaking environmental assessments for the work. The Plant
will introduce combustion equipment to reduce the release of VOCs to the air.
The start of operation is slated for October 2018.

Two sites underwent regulatory compliance audits and passed.
MEKTEC sites in Japan completed the transition to ISO14001:2015 in April 2017.

2 EnvironmentSYNZTEC CO., LTD.（SZT）

Kitaibaraki Plant

The SZT group engages in production at its group companies in Japan andabroad. Independent efforts by SZT are focused mainly on support for internal
sections in technology and quality control by initiating activities to reduce
nonconforming products and save more energy.

The Kitaibaraki Plant, together with its production subsidiaries and contractors, ispromoting energy and resource conservation activities, while taking into accountthe environment (E), quality (Q) and total cost reduction (T) in an integrated
manner, rather than considering E, Q and T separately.

Since a production function of other plants in Japan is scheduled to betransferred to the Yokosuka Plant, it is expected that the site’s energy
consumption and waste emissions will increase. Therefore, the SZT group will
make concerted efforts to further promote environmental conservation activities.

In FY2017, as part of energy conservation efforts, air-conditioning facilities
at the Plant were renewed, and solar panels were introduced to production
subsidiaries.

3 Society

UNIMATEC CO., LTD. (UMT)

Shonan R&D CenterWith the goal of mitigating global warming and building a recycling-oriented
society, UMT focuses on continuous improvement activities. In FY2017,
equipment that used CFC R-22 was replaced with a different model that uses a
CFC substitute, and production equipment with better energy-saving performance
was introduced. The company is also promoting the recycling of organic
sludge discharged from its wastewater treatment facilities by processing it into
compost, and is reducing noise from production equipment in consideration ofliving conditions for nearby residents. In addition, the company is engaged in the

The Center pursues environment-friendly development practice in basic

technology research and product and material development. We are also

developing production technologies to achieve further energy and resource

conservation, in addition to improving the efficiency of production equipment.
Moreover, the Center also emphasizes technical support for NOK plants to help

them promote their environment-friendly manufacturing. Our support contributes
to extending product lifetimes, reducing torque (saving energy) and improving
yield.

development and design of products that have a low environmental impact.

Tokai Environmental Products R&D Center

Wuxi NOK-Freudenberg Oil Seal Co., Ltd. (WNF)

The Center was renamed from the Tokai R&D Center for Membrane Technology

WNF continues to improve its environmental activities under the ISO14001
system. WNF achieved a reduction in power consumption by controlling thevolume of exhaust air with the use of valves during the second vulcanization
process. This enabled it to secure a proper volume of flow, and eliminate wastefulblow. As a result, power consumption was cut by 65,000 kWh annually. To raise
environmental awareness among employees, WNF provides new employeeswith basic environmental training every year. Persons in charge of environmental
management gather from all departments every month for mutual exchanges.

to the Tokai Environmental Products R&D Center in FY2017. As the leader of

NOK’s contribution to environmental conservation through seal technology, theTokai Environmental Products R&D Center has engaged in the development

and production of innovative products that have facilitated the popularizationof fuel cell vehicles and the effective use of water resources. With a high levelof awareness and motivation for the environment, we have consolidated thesystem to fulfill our corporate social responsibilities.

Shizuoka Plant

NOK Vibration Control China Co., Ltd. (NVCC)In FY2016, MYK’s second plant was closed as part of measures against possible
tsunami disasters associated with predicted earthquakes in the Tokai area.
Relocation and consolidation of the plant into the headquarters plant located on
the premises of the Shizuoka Plant was completed in April 2017.

Casting equipment that started full-fledged operation in FY2017 at NVCC
generates and releases substantially less dust as compared to the previous
model. As well as reducing the amount of dust released into the air outside,
the dust concentration inside the plant also significantly decreased, improving
working conditions to a remarkable degree. In recognition of this initiative, thecompany was commended as a dust control model company by the governmentof Wuxi City of Jiangsu Province in FY2017.

Moreover, preparations are underway to resume the operation of Kikugawa Seal
Industry Co., Ltd. at this site and will be completed in May 2018. In cooperation
with these companies that share its premises, the Plant will fulfill legal reporting
requirements incidental to the transfer of facilities to remain compliant with
relevant laws and regulations.

Thai NOK Co., Ltd. (TNC)

Tottori Plant

TNC has been implementing various initiatives for the environment, with theemphasis in recent years on energy conservation activities. In FY2017, lighting at
the plant was replaced with LED lights and chillers were also replaced with more
efficient, energy-saving models, which resulted in a total reduction of 3,343 tonsof CO2 emissions for the year.

In FY2017, Thai NOK Co., Ltd. completely eliminated the use of dichloromethane.
This means that all production sites of rubber vibration isolators completely

discontinued the use of dichloromethane.

Efforts to reduce paint and adhesive use have achieved better results thanTo realize a sustainable society, the company will continue promoting
environmental conservation activities and making social contributions.

planned through the reviewing of equipment. In tandem with the growth of therubber vibration isolator business, the Tottori Plant will continue its aggressive
environmental conservation activities as the mother plant.

P.T. NOK Indonesia (NIN)

Kumamoto Plant
The Kumamoto Plant periodically performs environmental measurements ofdrainage from the plant and groundwater on the premises to protect the
Aso region’s water resources, which have been conserved by local residents.
Such activities to contribute to local environmental protection are conducted
continuously.

NIN completed the transition to ISO14001:2015 in FY2016, and passed thesurveillance audit in FY2017. Its aggressive energy conservation initiatives include
replacing plant lighting with LED lights and installing Skylight Tubes (a systemthat brings sunlight into indoor space after cutting UV rays and heat). The system
added more light inside the plant and has helped reduce power consumption forlighting by roughly 50%.

In FY2017, ceiling lights in the Plant were replaced with LED lights to saveenergy. In view of BCM, photovoltaic power generators and storage batteries
were installed at the guard gate.

With a production increase expected for FY2018, NIN will improve its
wastewater treatment capacity to ensure compliance with environmental laws
and regulations.

21

Procurement Policy
The NOK group's procurement from suppliers complies with its Procurement Policy
The NOK Group believes that if we are to fulfill our
corporate social responsibility, it is essential that ourawareness is shared across the procurement supply

1 We comply with laws, regulations and social norms.
2 Based on the idea of free competition, we select suppliers ina stringent manner by providing fair and equal opportunities.
3 We share mutual interests and benefits with suppliers basedon the idea of mutual prosperity.

We are asking our suppliers to understand theProcurement Policy shown on the left and respect the
NOK Charter of Corporate Behavior and CSR Procurement
Guidelines in business transactions with us.

2 Environment

4 We engage in open communication and build a relationship oftrust with suppliers.

chain.

5 We conduct improvement activities proactively in collaboration
with suppliers.

To fulfill our corporate social responsibility, we carry out procurement activities in accordance with the following policies:
1. Compliance with laws andregulations

We comply with laws and regulations, including the competition laws, trade laws,
environmental laws and social norms of relevant countries.

2. Respect for human rights

We do not deal with business entities that would use forced or child labor, that would
engage in unlawful employment of foreign nationals or any other illegal employment andthat would not satisfy industrial safety and health requirements.

3. Safety

We prioritize the safety of customers and consumers and purchase products that satisfy
safety requirements.

4. Green procurement

We carry out procurement activities based on the NOK Group Green Procurement
Guideline with consideration for preserving the global environment .

5. Confidentiality

We deal with suppliers that can appropriately manage and control the confidentiality of
information on customers, individuals and technologies, etc. obtained through business
transactions.

6. Elimination of anti-social
forces

We do not deal with any organized crime groups, any of their members and related
individuals nor any other antisocial forces as well as any business entities associated withthem.

7. Activities regarding
conflict minerals

We strive to avoid purchasing minerals and products that use minerals from countries
where inhumane armed forces are active and mining minerals for their financial
resources.

8. Contribution to local
communities

We contribute to the development of local communities by promoting business
transactions with local suppliers.

9. Sharing awareness with
suppliers

We strive to ensure that the NOK Charter of Corporate Behavior and the CSR Procurement
Guidelines are respected throughout the supply chain.

N O K’s p ro d u c t i o n a c t i v i t i e s a re ce n te re d o n i n d u s t r i a lcontrols beyond production processes to procurement activities,

components made from polymeric materials, such as synthetic

we have established the N O K G roup G reen Procurementr u b b e r a n d re s i n . We a re c o m m i t te d to e n v i ro n m e n t a l

Guideline. Controlling environmental hazardous substances

co ns e r vati o n a c tiv iti es su ch a s m a na gi n g e nv i ro n m e nt al

and building a system to guarantee the non-inclusion of thesehazardous substances used in production processes, saving

substances throughout the supply chain are our priorities.

22

3 Society

CSR Procurement Guidelines

energy and resources, and reducing waste. To extend these

1 Strategy & Management

Procurement Policy

Customer FirstThe NOK Group continues its efforts to provide

high-quality products and services for customers.
1 Strategy & Management

Quality Management System

2 Environment

the quality assurance activities at the NOK group.

Corporate Quality & Environmental Control Office

We have expanded the scope of onsite audits by quality control

Quality & Environmental Control Officer

officers since FY2013. We strive to achieve a uniform quality level

Divisions
Quality Control Manager

To continually produce products that meet customer requirements,
we have been implementing and improving our quality management
system, which complies with international standards such as
ISO9001.

President

Our internal control rules for subsidiaries are revised to enhance

globally for NOK products through close exchange of informationon the quality management system both in Japan and abroad.

Group Companies in Japan
Group Companies Abroad

3 Society

Global Use of the Quality DojoNOK Group QC Circle Meeting

The Quality Dojo is NOK's school, and it aims to develop human

The NOK Group encourages employees to form QC circles:

resources who can communicate, practice and promote theautonomous small groups that engage in quality improvement

culture of“Quality First”in day-to-day work. Quality Leaders*1

activities.

guide their subordinates and colleagues while engaging in theirUnder the theme of pursuing down-to - earth improvements

own quality improvement activities as part of their work. We also

by going back to the starting point of QC circles, presentation

develop Quality Dojo Masters, who serve as trainers by opening

meetings are held at NOK divisions in Japan and global group

their own Quality Dojo to teach others.

companies every year. In FY2017, 1,302 QC circles took part

As it reaches its ninth anniversary, our Quality Dojo program has

globally. Eight circles, each selected at a regional presentation

trained more than 810 Quality Leaders in Japan. Quality Leaders

meeting, gathered and reported their activities at the NOK Group

have communicated what they have learned at the Quality Dojo

QC Circle Meeting, where the best QC circle in the NOK Groupto others in their workplace to build a Quality First Line*2. The

was decided.

program was converted into Asunaro activities*3 in FY2015, andWith more QC circles being formed throughout the NOK group,

continues in a different framework. Under the slogan of There is no

we can see wide-ranging QC circle activities at many of our sites,

end to improvement activities , we relentlessly pursue improvement

group companies and affiliated companies in Japan and abroad.

in an attempt to build Quality First Lines.
To further enhance improvement activities, NOK organizes
gatherings called N-Act, where Quality Leaders present the resultsof their initiatives.
We have al so opened Qualit y D ojos at our sites in China
and Southeast Asia. In China, five Quality Dojo Masters are
independently operating their own Quality Dojos and 72 Quality
Leaders are currently promoting their respective activities.

*1 Quality Leader: The title granted to a person who has graduated from the
Quality Dojo.
*2 Quality First Line: A production line that does not produce or releasenonconforming products.
*3 Asunaro activities: Asunaro is a Japanese word that literally means“itwill happen tomorrow,”and here it conveys the message,“We will build a
Quality First Line tomorrow.”This initiative encourages employees to continue
improvement activities with the goal of developing their production lines to alevel equivalent to that of Quality First Lines that were built previously.

23

Nonconformity Reduction Activities

Promotion of Products at Exhibitions

NOK strives to reduce nonconforming products to improve

NOK exhibits at many trade shows in Japan and elsewhere every

quality and cut back on waste. We have also been committed toyear. Through exhibitions, we seek to make our technologies andproducts known to a broader range of prospective and existing

In FY2011, the Zero Nonconformity Project was launched. In

customers, and to improve our understanding of market needs.

Japan, the project was extended to production subsidiaries in

We also organize in-office exhibitions in which our products are

FY2013 in an effort to make project activities“self-propelling,”or

displayed in a spare space at customers' sites. This provides us

autonomous, at each site. As a result, more than 200 initiatives

an opportunity to better understand the customer needs andwere carried out throughout the NOK Group during the three-encourage communication with them.

year period from FY2011 to FY2013, leading to the decline in theteams have enhanced their problem -solving capabilities as

Exhibition at Tokyo Motor Show 2017

they repeated checks based on observation and the principles
of gemba (actual place) and gembutsu (actual thing). This has

The NOK group joined many exhibitions in FY2017 as inalso helped develop leaders who can take the initiative in theprevious years.

activities. Our sites in China and Thailand adopted this project

2 Environment

nonconformity rate by 30%. Through these activities, production

1 Strategy & Management

developing human resources through these activities.

NOK participated in the 45th Tokyo Motor Show, which took

in later FY2012 and became the first overseas group companies

place in October 2017. We set up an experience-based display

to join the annual reporting session held at the end of FY2014.

games and quizzes, as well as watching and touching exhibits.

overseas sites.

At the booth, easy-to-understand explanations were provided

In and after FY2014, more than 80 initiatives were implemented

on the NOK Group’s products and proprietary technologies,

annually. The no nco nfo rmit y re duc tio n ac tivities are now

along with details of seal technology trends.

conducted at group companies in and outside Japan on a routine
basis and at the initiative of each company. We will further expand
this project and make it a standard activity across the Group.

In-house Quality Award System
Our quality award system was introduced in FY2008 to boost
quality improvement activities. All employees of the NOK groupin Japan are eligible. Following a nomination and selection
process that takes place every six months, organizations thathave accomplished excellent results through effective quality
improvement activities are honored. Articles on the outstanding
improvements they have achieved appear in company newsletters.
Nomination guidelines were revised in FY2012 so that theaward system can promote quality improvement activities more
effectively. The revised system encourages nominations of projects
that are feasible and implementation by teams to increase quality
awareness among employees.
Nine teams were nominated in the first half of FY2017, and the
Chubu Logistics Control Sect. of the Logistics Dept. under theBusiness Promotion Office won the award. In the second half of theyear, six teams were nominated and the Production 2 Sect. of the
Production Dept., Saga Seal Industry Co., Ltd. received the highest
award. The quality award system helps us to create a workplaceculture that encourages quality enhancements and improvements.

Quick Response Based on the 3G*

Establishment of Customer Support Center

When a product nonconformity is detected, the sales department

The Customer Support Center responds to various inquiries

and the divisions in charge of related products cooperate toabout NOK’s technologies and products. Questions and requests

respond quickly while being aware of the importance of initialreceived by the Customer Support Center and via the website

action. They make a concerted effort to resolve the problem as

are reported to relevant departments and receive a follow-up.

quickly as possible by following the 3G principle.

This input provides information used in resolving challenges that
customers face and in proposing new projects.

*3G: Gemba (actual place), gembutsu (actual thing) and genjitsu (actuality).
Respectively, these three Japanese words express important actions to take:going to the gemba and seeing where the problem happened, seeing the
gembutsu first-hand and checking things, and seeing genjitsu first-hand andlearning the facts.

24

3 Societyintended to encourage visitors to learn about NOK by enjoying

Nonconformity reduction activities are steadily taking root even at

Social / Local Area Activities

1 Strategy & Management
2 Environment

Sponsor for NHK Gakusei Robocon 2017

Sponsorship for Kids Engineer 2017

NHK Gakusei Robocon (Student Robot Contest) 2017, Japan’s

NOK was a cosponsor of Kids Engineer 2017, which was held

preliminary for the ABU Asia-Pacific Robot Contest, took place on

from August 4 to 5, 2017 at the Nagoya International Exhibition

June 11, 2017 at Ota City General Gymnasium in Tokyo. NOK has

Hall (Portmesse Nagoya). Organized by the Society of Automotive

been sponsoring NHK Robocon since 2015 as a way of supporting

Engineers of Japan, Kids Engineer provides a hands-on learning

the next generation of engineers. The theme for the 2017

opportunity for schoolchildren and is aimed at encouraging theircontest was“The Landing Disk.”The rules were as follows: Twointerest in various fields of science, technology and monozukuri

robots—each made by a different team of students—compete by(manufacturing skills), particularly around automobiles. NOK

throwing flying discs, with the object of landing them on sevenstarted sponsoring the event last year. For its second year, thepredesignated spots. Each spot is assigned points. The robot

company set up an exhibition booth for the first time with thethat earns the most points in three minutes or the one that is thetheme“Save the leaking world!”It developed a program to teachfirst to land a disc on each of the spots to reach“APPARE!”winschildren how oil seals work while having fun with card games

the game. The audience was thrilled by the performance of theand quizzes. We used creativity and ingenuity in designing therobots, each of which featured an original and ingenious design.

program to help participants readily understand the“big”roles

The bold and free-thinking ideas of student engineers on display

played by“small”parts in cars.

at this event, along with their hard work, never fails to generate
excitement among the audience. NOK will continue to sponsor
this event to encourage their development.

3 SocietySupport for“AICHI: No Longer the Worst”
Road Safety ProjectWith the highest rate of car ownership in Japan, Aichi Prefecture
has also had the highest rate of traffic fatalities in the country for
14 consecutive years＊. To reduce traffic fatalities by raising roadsafety awareness, Chunichi Shimbun Co., Ltd. launched the“AICHI:No Longer the Worst”Road Safety Project in 2016 in cooperation
with radio and television stations based in Nagoya City. As amanufacturer of auto parts, NOK has joined the project since
FY2017 in support of the project’s objective to eliminate traffic
accidents.
＊ As of 201725

Sponsor for 15th Student Formula Japan

Traffic Safety Campaigns at Plants
the safety of its employees and their families, the NOK Group

Formula is a competition organized by the Society of Automotive

sets a traffic safety management policy every year to ensure

Engineers of Japan. Teams of students race with small-sized

observance of traffic rules and the elimination of traffic accidents

formula racing cars that they have planned, designed and built

and violations. Each plant conducts a unique traf fic safet ythemselves. As well as the actual performance of the car, thecampaign suited to its local community. In cooperation with thecomprehensive monozukuri capability, including the concept,

relevant prefectural governments and local police stations, thedesign and cost of the car, is evaluated.

NOK Group thus helps employees raise their awareness of road

NOK has been a sponsor since 2008 and has provided NOK

safety.

Group products to some of the participating universities. NOK

The Kitaibaraki Plant was commended for its outstanding practicewill continue to sponsor this event and is proud to support youngof safe driving on June 30, 2017.

engineers who are enthusiastic about building cars.

2 Environment

As a manufacturer of automobile-related products and to ensure

at Ogasayama Sports Park ECOPA, Shizuoka Prefecture. Student

1 Strategy & Management

From September 5 to 9, 2017, Student Formula Japan took place

3 SocietySupport for Palette, a non-profit organization

Sponsorship of Street Rugby Alliance

We regul arly invite Palet te to sell their baked goods andStreet Rugby Alliance is organizing various events to increase theother items at our Head Office. Palette is a certified non-profit

recognition and popularity of rugby through the popularizationof street rugby＊

organization aimed at helping to create a society where people

with a view to ensuring the success of thewith disabilities can live how they want to and provides jobs and2019 Rugby World Cup in Japan. Aspiring to contribute to local

life-related assistance for the mentally challenged. NOK has beencommunities through sports, NOK started sponsoring the alliancesupporting the activities of Palette and will continue to organize

this year.

their sales events.

＊ Street rugby: Played by two teams each having three players. It isdevised to be easy and safe to play on the street.

26

Communication with Shareholders, Investors and External Organizations

1 Strategy & Management

Exhibition at Tokyo Stock Exchange IR Festa 2018

Financial Results Briefings

NOK exhibited at the Tokyo Stock Exchange IR Festa 2018, which

The NOK group holds two financial results briefings every year,

took place from March 16 to 17, 2018 at PACIFICO Yokohama.

one in May for annual results and another in November forThis event aims to offer an opportunity for individual investors

interim results. Securities analysts, institutional investors, research

to communicate with listed companies. NOK held a 10-minuteinstitutions, journalists and financial institutions are invited to thesecompany briefing session about twice an hour at our booth. We

sessions, where we explain financial results and forecasts, and also

explained our business activities, performance and growth strategy.

respond to questions.

Some of our products were displayed on the walls of the booth,Presentation materials used for financial results briefings arealong with information on application examples.

available at NOK's website.

We distributed questionnaires to visitors after every briefing session

2 Environmentand received responses from more than 500 of them. The event

IR Calendar

allowed us to obtain valuable feedback from individual investors.
1Q

2Q

3Q

4Q

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Announcement offinancial results

3 Society

Annual shareholders’meetingAnnouncement of
1Q results

Announcement of
2Q results

Announcement of
3Q results

Relations with External Organizations
The NOK group is a member of economic organizations andindustry associations and participates in their activities. We
cooperate with these external organizations by acting as a generalaffairs committee member of the Japan Auto Parts Industries
Association (JAPIA) and the chair of the Japan Electronics
Packaging and Circuits Association (JPCA).
At JAPIA, we seek to contribute to the development of theautomobile and automobile parts industries. NOK is a member ofsubcommittees on the environment and on conflict minerals, andexchanges views with other JAPIA members.

27

Relations with Employees
Respect for Basic Human Rights

Supporting People with Disabilities

One of NOK's Principles of Corporate Behavior is Respect for

NOK is eager to employ people with disabilities. As of April 2018,
there are 64 employees with disabilities working at NOK.

Compliance, work rules and other internal regulations explicitly

Re-employment System

Environment . Our Behavioral Guidelines Concerning Employee
prohibit discrimination and harassment. To address harassment, an

A system to rehire employees who have reached retirement

employee hotline is available at each division.

age was introduced in 2006. We seek to improve the system
so that healthy retired people who still wish to work can make

NOK provides childcare leave and other systems that help

through their career at NOK. For example, retired employees

full use of their rich work experience and advanced skills gained
can pass their work-related knowledge and techniques on toemployees work in ways that suits their lifestyles.

younger generations while improving their livelihood through re-

Recognizing that having systems in place is not enough, we seek

employment under the system.

to appropriately implement these systems so that employees
can make use of them more easily. The number of employees

2 Environment

Supporting Diverse Work Styles

1 Strategy & Management

Human Rights and Provision of a Safe and Comfortable Working

Employee Welfare

who took leave under the special leave systems during FY2017 isshown below.

NOK provides working conditions that are suitable for different
the company to post-retirement years. Major employee welfare

SystemNumber of EmployeesChildcare leave

54

Nursing care leave1benefit plans are as follows:(1) Housing benefits, such as company dormitories for singles,
company housing for families, housing allowances, and thepromotion of home ownership through a housing loan system(2) Asset accumulation support, such as an employee stock
ownership plan, ESOP trust, employee savings plan and employee

Work-Life Balanceloan program

Our efforts to reduce the total hours worked by employees(3) Retirement income support, such as a company pension plan,

focus mainly on cutting back overtime work through enhanced

defined-benefit retirement allowance and pension plan, subsidies

productivity and increasing the rate of annual paid holidays taken.

to support retired employees until they become eligible for public

To promote leisure activities, NOK's corporate pension fundpensions, and re-employment systemprovides subsidies for employees who spend their vacations at
designated resort facilities.

Human Resources Development Program

Mental and Physical Health

NOK's human resources development program consists of level-■ Employee Health Consultation

specific education and development/specialized education. Levelspecific education is mandatory for employees after specified

NOK provides a telephone health consultation service that isyears of service and for those in specified positions. Development/

available around the clock free of charge to help employees

specialized education is designed to train employees in skills thatmaintain and enhance their mental and physical health. We also

are considered necessary for their duties by their supervisors.

cooperate with industrial physicians and nurses to promote

Training records are kept and updated in the corporate training

employees’mental health at work.

management system. In FY2017, 849 employees received training
through the program.

Personnel Exchange with Overseas Group Companies
To ensure that the management spirit that respects human dignity■ Special-purpose training

is in place at overseas group companies, meetings are held with

Training programs meeting various needs are available, such

personnel departments of major overseas group companies

as those aimed at providing support for female employees andperiodically to discuss personnel systems and exchange

for employees rehired after retirement age, as well as those for

information.

improving workplace productivity.

Technical trainees from overseas group companies are also
accepted at our Japan sites.

■ Development of global human resources
This program seeks to develop employees who can actively apply
English at work rather than people who can simply speak English
well. Employees who pass preliminary interviews are assigned
duties individually, and receive on-the-job and off-the-job training
for a year.

28

3 Societystages of working life, covering a long period from entry into

Employees Who Took Special Leave in FY2017

1 Strategy & Management

NOK Group Safety Principles

Occaupational Health and Safety Management System“Safety is the foundation for implementing management spirit

We promote safety and health activities by forming a division-that respects human dignity, my desire and my mission”

level organization for safety and health management supervised

Respect for human dignity is one of the NOK Group’s

by the head of the division, who serves as the Supervisor of Safety
and Health Control. Company-wide activities are also conductedmanagement principles, and safety, which greatly affects the life

through coordination between the Safety & Health Dept. at theand wellbeing of employees, is well recognized as a top priority
in all operations. While upholding the safety principles, weHead Office and the secretariat in each division.

promote workplace safety management activities to establish a

To prevent the recurrence of workplace accidents through sharing

strong safety culture across the Group.

accident data to raise employee awareness, we have compiled
annual statistics on these accidents every year since FY1973. We

2 Environment

have used the statistics as a tool to promote safety and health

Activities during FY2017

activities at plants.

■ Activities for safety and health
Our safety and health policy for FY2017
was improvement of safety and healthHead of Divisioncontrol practices. We thoroughly identified

3 Societyand remedied unsafe conditions,Supervisor of Safety and
Health Control

conducted worksite patrols and observed

Safety & HealthDept.

work processes to provide guidance forcorrective actions. When conducting work

Michiaki Tanabeon the premises, together with contractors,

Deputy Manager of the
Safety & Health Dept.

we ensure the sharing of near miss incident
information, risk prediction training andDivision's Secretariat(Environment & Safety,
Administration Control,etc.)

Industrial
Physicianadherence to safe working procedures.
To better address employees’ mental health, we have added a new

Safety Manager

Division's Safety
and HealthCommittee

program to our existing effort, which consists of self-care, care bymanagers and care by internal experts. A toll-free telephone consultation
service provided by an external specialized organization is now available

Health Manager

Dept. Manager

24 hours a day, every day of the year. We are enhancing our capacity
to respond quickly to mental health problems and to help employees

Sect. Manager

smoothly return to work after a long absence.
■ Activities to improve the workplace environment

Group
Chief

We started activities to improve the workplace environment in FY1993
and implemented measures in two phases. The first phase focused on

Promotion
Committee
of Safety and
HealthForemanOperator

the working environment (noise, heat and cold), and the second on work

Work Chiefmanagement (working posture and handling heavy objects).
The third phase of the plan for workplace improvement was launchedin 2005 to address management of support systems, which refer toproviding facilities for employee relaxation and facilities essential toworkplace comfort. We have set up rest areas for employees.

Lost Time Injury Frequency Rate*1
1.2
1.0

0.94

1.06

1.06

1.15

Lost Time Injury Severity Rate*2
0.10

1.02

0

0.09
0.08
0.07
0.06

0.06

0.6

0.2

0.10

0.08

0.8

0.4

0.10

0.46

0.45

0.23

0.04

0.22

2013

2014

2015

■ National average among manufacturers

2016

0.014

0.02

0.00

0.000402017 （FY）■ NOK group

2012

2013

0.007
2014

0.003

0.0003

0.000

2015

2016

2017 （FY）■ National average among manufacturers■ NOK group*1 Lost time injury frequency rate: The number of deaths and injuries from workplace accidents per million hours worked. It represents the frequency of accidents.
*2 Lost time injury severity rate: The number of lost work days per thousand hours worked. It represents the gravity of accidents.
Scope of coverage: The figures for the NOK group refer to four companies: NOK, NIPPON MEKTRON, NOK KLUEBER and UNIMATEC.

29

Third-Party Opinion on CSR Report 2018
Mr. Masatoshi Ikari

Advisor, PDCA Co., Ltd
Representative, Sustainability Consulting
Part-time Teacher, Seikei University

NOK published its first Environmental Report in 2004 andhas issued it since then, although the title was changed toEnvironmental & Social Report in 2006 and to CSR Report in2017. I have thoroughly reviewed the report, the second issueof the CSR Report, and herein provide my opinions as a third
party.

Commendable Points●In the report, NOK clearly states: “Safety is the foundation for“NOK Group’s Technology” features the initiatives for E-Mobility

The company’s commitment is supported by the commendable

fiber membrane technology to address water resource risks.

implementing management spirit that respects human dignity.”(next-generation automobiles) and applications of the hollow

occupational health and safety performance in FY2017, that

These provide model examples of Green Product initiatives underis, the lost time injury frequency rate of 0.00 and the lost timethe vision.

severity rate of 0.000. However, the scope of the statistics●“Reports from NOK Group Sites” describes a wide range ofis limited to NOK Corporation and three group companies. I

environmental activities implemented at NOK plants and group

therefore expect that the coverage will be expanded.

companies in and outside Japan. In particular, activities by the●The NOK Group formulated the NOK Twin Green Plan 2030, aplant in Wuxi, China were recognized and commended by thelong-term environmental vision toward 2030, in line with thelocal government.

Paris Agreement and the Sustainable Development Goals (SDGs).

Opportunities for Improvement●NOK links the initiatives under the 2030 environmental vision

management, appropriate disclosure of procurement practices

17 SDGs. In the future, it is hoped that issues with social aspects●It is hard to find any external stakeholders’ “voices” or “opinions.”

mentioned above to some of the environment-related goals of thefrom these perspectives is required.

involving various stakeholders (other than the environment), such

I would suggest that the report contain comments and feedback

as employees, customers and supply chains, will also be related

from customers, schoolchildren who participated in Kids

to specific SDGs for continuous improvement of CSR activities.

Engineer 2017, college students who took part in Student●Although the report refers to the NOK Group Green Procurement

Formula, and individual investors at Tokyo Stock Exchange IR

Guideline and the CSR Procurement Guidelines, it describes

Festa 2018 to further boost the credibility of your company.

no actual achievements or future plans. Since ISO14001:2015
calls for a life cycle viewpoint and CSR focuses on supply chain

Response to Third-Party Opinion
Noriyuki Takahashi

Senior Operating Officer andManager of Corporate Administration Office
Chair of the CSR Committee

We highly appreciate the valuable opinions we have received.

“voices of stakeholders” into our future reports.

Your favorable evaluation of our safety and environmental activities has

I also believe that these aspects are what we should always keep in mind

given us great confidence in promoting future activities.

when promoting our CSR activities.

We will definitely incorporate the recommendations you provided in the

We will continue CSR activities in a manner that will make our stakeholders

Opportunity for Improvement section with regard to “relevance to the SDGs,”

proud.

“concrete plans and activities concerning the procurement guidelines” and30Company ProﬁleCompany Name： NOK CORPORATION
Registered Head Oﬃce : 1-12-15 Shiba Daimon, Minato-ku, Tokyo 105-8585, Japan
Head Oﬃce :3-13-12 Mita, Minato-ku, Tokyo 108-0073, Japan

Established :December 2, 1939

Capital :23,335 million yen

Business Details : Manufacture, purchase, import and sale of seals, industrial functional parts, hydraulicand pneumatic equipment, plant machinery, synthetic chemical products, electronic
products and various other products; and the provision of associated services such as
installation of machinery and devices

Contact●About the CSR report in general：
Corporate Communication Dept., Corporate Administration Oﬃce, NOK Corporation
3-13-12 Mita, Minato-ku, Tokyo 108-0073, Japan
TEL: +81-3-6891-0191 FAX: +81-3-6891-0067●About the Environment part of the report：
Environmental Control Dept., Corporate Quality & Environmental Control Oﬃce, NOK Corporation
4-3-1 Tsujido-Shinmachi, Fujisawa City, Kanagawa 251-0042, Japan
TEL: +81-466-35-4612 FAX: +81-466-35-4299©NOK CORPORATION. No part of this report, including any text, photograph and illustration contained herein,
may be reprinted or reproduced without prior permission of NOK CORPORATION.