Supplementary Version

CSR REPORT 2019 Supplementary version

NOK CORPORATION CSR Report 2019
Supplementary Version
In this supplementary version of the CSR Report 2019,
we have included the items and information that we were unable topublish in the primary report.
We hope that you will read this document
through in addition to the main report.
December 2019<1>

Environmental Performance
Environmental Management
Environmental Management System
NOK has established a mechanism compliant with ISO14001 and is implementing an environmental management system,
while at the same time working to contribute to the reduction of environmental impacts as a manufacturer. To ensurecompliance with environmental laws and regulations, NOKʼ s production sites and group companies have identiﬁed thelaws and regulations that they must observe, along with key control items. They maintain control over such items andperiodically check and evaluate their compliance status. We will continue our eﬀort for early detection of possible risks
related to environmental accidents and compliance and for prevention of nonconformities.
●Registration Agency: Registration Body, Japan Automobile Research InstituteCertiﬁcate Number: JAER 0335

Compliance with Environmental Laws and Regulations
In FY2018, the NOK Group faced no ﬁnancial penalties, charges or lawsuits in relation to environmental accidents orcomplaints.

Environmental Communication
Providing suppliers and aﬃliates with environmental education

In order to foster the implementation of the environmental policy and activities for environmental impact reduction, NOK
held environmental seminars for its suppliers and aﬃliates during the period from FY2018 to FY2019. At these events

participants were briefed on international environmental trends, newly established laws and NOKʼ s future environmental
measures. The seminars provided NOK with a meaningful opportunity to communicate its environmental policy to its

partners. We will continue to conduct environmental activities in cooperation with our suppliers and aﬃliates, thereby
making more contributions to the reduction of environmental impacts across our supply chain.

Kyoei-kai

In FY2019, in order to communicate the environmental policy to suppliers and further reduce environmental impacts incooperation with them, NOK established a system to commend outstanding environmental initiatives. We rate theperformance of 28 suppliers comprising the “Kyoei-kai” group in terms of their contribution to NOKʼ s measures to deal

with CO2 emissions, waste and environmental impact. Based on the results, we give commendations to companies thathave made contributions to environmental impact reduction. For this ﬁscal year, Isshin-Kogyo Co., Ltd. received the highest
commendation in recognition of its outstanding energy conservation activities. We will continuously foster environmental
impact reduction activities based on cooperation across our supply chain.

Cooperation with other companies

For the creation of a sustainable society, NOK exchanges information about environmental issues with other companies.
Through this activity we learn about other companiesʼ environmental approaches and measures while also introducing

examples of NOKʼ s initiatives, thereby promoting cooperation for the reduction of environmental impact across multiple

supply chains. In FY2019 we joined a CO2 emission reduction management group organized by the cooperating companies
and visited nine of the members to learn about their situations, identify common problems and search for clues to ﬁnding
solutions. When members of the group visited NOKʼ s Shonan Development Center, we introduced a case in which we

made improvements on air leakage for energy conservation. We will continue to make exchanges with other companies forenvironmental impact reduction.

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Environment

Environmental Performance
Environmental Management
List of ISO14001-Certiﬁed Companies

Of global NOK Group companies, those engaged in the seal business are included in this list.

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Environment

Environmental Performance
Global Warming Countermeasures
Social Background
The issue of climate change has recently become more pronounced, with attendant global warming eﬀects including risingtemperatures, droughts and rises in sea level. This is an issue that threatens the very existence of humankind. In response, in
2016, the Paris Agreement was eﬀectuated by the United Nations toward the goal of keeping the increase in global averagetemperature to below 2 degrees Celsius above preindustrial levels and making eﬀorts to limit the rise to below 1.5 degrees
Celsius. Accordingly, countries are more proactively implementing measures to reduce greenhouse gases and conserve
energy, and companies are also required to focus on energy conservation and CO2 emissions reduction in their
management strategies.

NOKʼ s Policy
The NOK Group will work to reduce emissions of CO2, which is a major greenhouse gas, for the prevention of global

warming. Our manufacturing teams are developing energy-eﬃcient equipment to reduce the amount of energy used for
production, while our logistics arm is reducing the amount of fuel needed for transportation. We are also adopting

renewable energy across the company in our eﬀort to reduce CO2 emissions from our products throughout their life cycles.

NOKʼ s Targets and Results●FY2018 targets:

Refer to the CSR Report.

●FY2018 results:

Refer to the CSR Report.

●Long-term target:

Refer to the NOK Twin Green Plan 2030.

Progress made with NOKʼ s targets

The amount of CO2 emitted from NOKʼ s production sites totaled 50,243 tons for FY2018. Relative to the emissions target,
we achieved a reduction of 2,653 tons. Also, for emission intensity, we achieved a 5.8% reduction relative to the previous

ﬁscal year, exceeding the year-on-year target of a 1% reduction. Although we fostered the development of energy-eﬃcientequipment and use of renewable energy at the NOK group companies in and outside Japan, their total emissions came to821,341 tons against the target of 788,364 tons. We will continue to work tirelessly to reduce our CO2 emissions.

Breakdown of Scope 1 emissions in FY2018
Greenhouse gas
CO2
CH4
N2O
HFCs
PFCs
SF6
NF3

[t-CO2]
7256
0
0
0
0
0
0

Reference for GWPs

IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)
IPCC ﬁfth assessment report (AR5 – 100-year value)

Breakdown of Scope 3 emissions in FY2018
1
2
3
5
6
7
9

Category
Purchased Goods and Services
Capital Goods

Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2

Waste Generated in Operations
Business Travel
Employee Commuting
Downstream Transportation and Distribution<4>

CO2 emissions
282083
20045
14527
3703
444
1236
10542

Environment

Environmental Performance
Global Warming CountermeasuresNOK Groupʼ s Measures
Programmed activation of the fan for the cooling water tower (in China)
Wuxi NOK-Freudenberg Oil Seal (WNF) had been operating the fan for its

cooling water tower around the clock every day but stopped this practice inorder to conserve energy. The company installed a water temperature gauge

Installation of a watertemperature gauge

for the programmed activation/suspension of the fan, thereby making it

possible to use the fan only when it was truly necessary in light of the watertemperature and day-to-day weather. As a result, WNF reduced its annual
consumption of electricity by 59,000 kWh.

Installing a wind turbine at the vent of the dust collector

Thai NOK Co., Ltd. (TNC) installed a wind turbine at the vent of its dust

collector to make use of the ventilation wind for power generation. The
electricity thus generated is used for outdoor lighting, and the plant isfostering the reduction of CO2 emissions by energy circulation on its
premises.

Wind turbine forpower generation<5>

Environment

Environmental Performance
Resource Conservation and Recycling
Social BackgroundWe have been leading lives of aﬄuence and convenience in our society, which is based on the mass production, mass consumption andmass disposal of lots and lots of things. We are thereby consuming the Earthʼ s ﬁnite resources and energy in vast amounts and generatingmuch waste, and as a result are facing the depletion of natural resources and environmental destruction. In response, there are increasing
calls across the world for a shift away from mass production, mass consumption and mass disposal and toward a recycling-oriented society,and companies are required to make eﬃcient use of resources and foster 3Rs for the entire life cycles of their products, from theprocurement of materials through to product disposal. Moreover, there are concerns that the globally expanding demand for water
resources will cause a water crisis, necessitating that companies make eﬀective use of water for the conservation of water resources.

NOKʼ s Policy
The NOK Group is conducting “reuse, reduce and recycle” (3Rs) activities. In consideration of the entire life cycles of our
products, we are working to make eﬃcient use of materials, water and energy and to improve each of our processes toreduce and recycle waste, thereby contributing to a sustainable society and increasing our corporate value.

NOKʼ s Targets and Results●FY2018 target (Waste recycling rate: 99% or higher):●Long-term target:●FY2018 results:

Refer to the CSR Report.

Refer to the NOK Twin Green Plan 2030.

Refer to the CSR Report

Progress made with NOKʼ s targets

The NOK Group has changed the rubber product molding method in an eﬀort to save resources. As for waste, we worked toreduce the number of defective products and recycled the waste generated from our foundries. However, the average

recycling rate of seven NOK production sites and 17 satellite companies for FY2018 came to 97.3% and thus was below thetargeted recycling rate of at least 99%.

●Industrial waste generation and recycling rates
20000

100

18000

90

16000

80

14000

70

12000

60

10000

50

8000

40

6000

30

4000

20

2000

10

0

2013

2014

2015

Total generation of waste (seven NOK sites +産業廃棄物排出量(NOK7事業場＋
17 satellite companies)
衛星企業17社)
Final disposal (seven NOK sites + 17 satellite
最終処分量(NOK7事業場＋衛星企
companies)
業17社)
Recycling rate (seven NOK sites + 17 satellite
リサイクル率(NOK7事業場＋衛星企
companies)
業17社)
Targeted recycling rate (seven NOK sites + 17
目標リサイクル率(NOK7事業場＋衛satellite companies)
星企業17社)

0

Recycling rates: Calculated based on the internal criteria and in consideration of the amount of valuable waste.

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Environment

Environmental Performance
Resource Conservation and Recycling
NOK Groupʼ s Measures

For detailed results and speciﬁc activities, refer to the CSR Report.

Reuse of resources (in Vietnam)

Vietnam NOK Co., Ltd. (VNN) recycles used oil as part of resource recycling. In
the manufacturing process, VNN recovers and reuses processing oil by using
an internally made ﬁltering device. Also, in the process in which springs are

soaked in anti-rust oil, it uses an internally made separator to remove excess

oil from the springs for collection in the treatment tank, thereby reducing themonthly rate of oil consumption for the eﬀective use of resources.

Conservation of water resources (in Japan)

In FY2019, we participated in the groundwater protection project promotedby the Kumamoto Groundwater Foundation. Farmers having paddy ﬁelds inthe groundwater protection area and companies/groups that have concluded
ownership agreements with the farmers grow rice in the ﬁelds together sothat water stored in the paddy ﬁelds will permeate the ground to recharge

the groundwater. The project contributed to recharging groundwater by anamount of 3,043 m3 (estimate).

Water recycling (in Thailand)

Thai NOK CO., Ltd. (TNC) internally produces the RO water to be usedin the product manufacturing process. TNC then uses the brine water
generated in the process as toilet ﬂush water, thereby reducing its
overall use of water. By building this water recycling system, thecompany cut its annual water consumption by 73,920 m3<7>Environment

Environmental Performance
Measures against Environmentally Hazardous Substances
Social Background
Chemical substances are indispensable to our daily lives, but it is also true that these substances have been causing

problems such as the destruction of ecosystems and having harmful impacts on people. Toward the goal set at the World
Summit on Sustainable Development (WSSD) held in 2002, which is “by 2020, that chemicals are used and produced inways that lead to the minimization of signiﬁcant adverse eﬀects on human health and the environment,” each country has
been progressively enhancing regulations on environmentally hazardous substances. In order to protect the Earthʼ secosystems and protect people from the adverse eﬀects of these substances, companies are required to comply with theregulations and manage and reduce their use of chemical substances in consideration of the entire life cycles of theirproducts.

NOKʼ s Policy
We regard it as one of our corporate social responsibilities to comply with the regulations on chemical substances, which arebecoming stricter year by year, as well as with criteria set independently by our customers. To fulﬁll this responsibility, theNOK Group will work to reduce the use and release of environmentally hazardous substances in its manufacturing process,identify and manage the use of chemical substances throughout the life cycles of its products, and contribute to the
reduction of environmental impacts across the supply chain.

NOKʼ s Targets and Results●FY2018 targets:●Long-term target:

Refer to the CSR Report.

Refer to the NOK Twin Green Plan 2030.

NOK Groupʼ s Measures

For detailed results and speciﬁc activities, refer to the CSR Report.

Measures for VOCs
Introduction of exhaust gas combustion equipment (in Japan)

In order to reduce VOC emissions, NOK has been undertaking examinations toimprove the manufacturing process and replace certain materials with others.
We introduced exhaust gas combustion equipment for a substantial

reduction of VOC emissions and have reduced these emissions by 50%.

Green procurement

NOK has published the NOK Group Green Procurement Guideline for global use, in which NOKʼ s environmental andgreen procurement policies are described. With a view to increasing the awareness of NOKʼ s environmental approachand policy among suppliers and fostering the procurement of environment-friendly materials and components, we ask
each supplier to submit an agreement to cooperate with us in line with the Guideline. We are thus working forenvironmental impact reduction across our supply chain in cooperation with our suppliers.
Refer to the homepage on the Green Procurement Guideline.

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Environment

Environmental Performance
Environmentally Friendly Products
Social Background
Recently, environmental risks have been recognized and worried about across the world, including those related to climatechange, resource depletion, waste treatment and expanding demand for water resources. In order to reduce these risks andcreate a sustainable society, it is necessary to deal with the environmental impact of daily-use products. Accordingly,

companies are required to develop products and technologies that contribute to environmental protection in considerationof the life cycles of their products, from the procurement of materials through to manufacture, transportation, use anddisposal. Companies also need to make better use of renewable energy, thereby contributing to the solution ofenvironmental issues, such as climate change and resource depletion.

NOKʼ s Policy
In order to contribute to environmental impact reduction, the NOK Group is fostering the development of products that

contribute to the development of next-generation eco-friendly technologies, giving consideration to the entire life cycles of
its products, including the procurement of materials, manufacture, transportation, use and disposal.
For details, refer to the NOK Twin Green Plan 2030.

NOKʼ s Achievements

For details, refer to the CSR Report.

All NOK products support our customersʼ products, thereby contributing to the environment behind the scenes. The

functions of NOK products, backed by technology, range broadly from sealing, liquid control, and vibration and soundisolation to low friction, membrane separation and others. These NOK products are incorporated in customersʼ products,
and within their various ﬁnal products, demonstrate their functions for protecting the environment, such as “avoid

generating or leaking,” “convey eﬃciently,” “reduce loads” and “lengthen product lives.” NOK is determined to oﬀer

products that support the realization of a sustainable society and, moreover, push forward with the development of newtechnologies.

◆Avoid generating or leaking what adversely aﬀects the environment
Oil seals, O-rings, packings, electromagnetic shield rubber (EM guard), mechanicalseals, metallic bellows and others◆Convey energy eﬃciently

Le-μʼ s technology, iron rubbers, accumulators, solenoids, actuators, andheat-conductive rubbers and others◆Reduce loads on products and the environment
Vibration and sound isolators, special lubricants, coating products, membrane

modules for wastewater treatment, separation membrane modules and others◆Lengthen product lives

Le-μʼ s technology, special lubricant grease, special coating and others

Environment

Social Performance
Local Contribution
Hand in Hand with Local Communities“As a good corporate citizen, we will actively participate in communities and contribute to their development.” (Item 6,
Principles of Corporate Behavior)

The NOK Group includes local communities among its important stakeholders. We aim to become an organization that is

supported by local communities as a localized company in which local people can take pride and to achieve development
hand in hand with them.

Relations with Employees
Measures for Human Rights“We will carry out management that respects the human rights of all people.” (Item 8, Principles of Corporate Behavior)

The NOK Group upholds the following as one of its Management Principles: “Management that runs the Company based on
feelings of love and trust in its employees.” We believe that protecting human rights provides the basis for suchmanagement and are committed to respecting basic human rights in our business operations.

Human Resource Development and Creation of a Comfortable Working Environment
We will realize a work style that enhances the abilities of employees while respecting their diversity, character andpersonality, and by drawing a line between public and private matters, and maintaining order in the workplace, we willrealize a comfortable working environment that takes cleanliness, health, and safety into consideration. (Item 9, Principles ofCorporate Behavior)

Basic philosophy for human resource development: Valuable workers are developed at workplaces and they in turndevelop the workplaces.

Vision for human resource development: Develop valuable workers who take pride in their jobs and demonstrate mutual
respect“Management that runs the Company based on feelings of love and trust in its employees” shall be achieved at each

workplace for the beneﬁt of employees. Based on its basic philosophy and vision for human resource development, NOK
aims to create workplaces where employees can work with satisfaction and grow in recognizable ways. We are
implementing a range of human resource development programs to achieve this target.

Dialogue with Employees (Labor Union)
To achieve “Management that runs the Company based on feelings of love and trust in its employees” and ensure soundcorporate growth, it is essential for the company to engage in dialogues with employees. The NOK Group respects therights of workers, including the rights to organize and to collective bargaining, and has built sound relationships of trustwith workers. At the regular labor-management meetings held with the participation of top executives, the two sides share
information about the management situation and issues and discuss important corporate measures to cooperate for thedevelopment of the company and welfare of employees.

< 10 >

SocialSocial Performance
Measures to Shorten Total Working Hours
The NOK Group is striving to shorten the total working hours of employees based on labor-management cooperation. At

the annual labor-management committee meeting, participants make annual plans and check the results for the past year.

Based on the overtime work records and paid leave taken by employees, working hours are checked by department and byindividual for the identiﬁcation of any problems and formulation of countermeasures. Then the Central Labor Management
Council checks the details to reduce overtime work and encourage employees to take paid leave.

Moreover, priorities were clariﬁed for higher operational eﬃciency and the in-house decision-making organizations werereviewed. In FY2019 we set an internal upper limit of 70 hours for overtime work and have been making eﬀorts for thefurther reduction of overtime.

Human Resources-Related Data for FY2018< 11 >

SocialSocial Performance
Human Resources-Related Data for FY2018< 12 >

SocialSocial Performance
Human Resources-Related Data for FY2018< 13 >

Social