EnvironmentalReport2017Editorial Statement…p.3

Eco-Friendly Products…p.10
Developing Products withHigh Environmental Performance

Management …p.4

Eco-Friendly Production …p.12

Message from the President

Global Warming Prevention

Environmental Philosophy

Formation of a Recycling-based Society

Environmental Policies

Managing Chemicals

Environmental Management Structure
Environmental Targets and Achievements

Topics…p.15

Environmental Impact Overview

Environmental Measures for Production Base2

Information Disclosure
Denyo Co., Ltd. will use the media shown below to disclose
information to all stakeholders about its environmental initiatives
aimed at delivering a sustainable society.
【Annual Environmental Report】

http://www.denyo.co.jp/english/

Reporting Period
Fiscal 2017 (April 2016 to March 2017) and for some content,
the periods before and after.

Publication Date
October 2017

Guidelines
Environmental Reporting Guidelines (2012), Ministry of theEnvironment

Contact

Denyo Co., Ltd.
2-8-5, Nihonbashi-Horidomecho, Chuo-ku,
Tokyo 103-8566
Website: http://www.denyo.co.jp
Planning & Coordination Department:
Phone:+81-3-6861-1111
Facsimile: +81-3-6861-1185

Disclaimer
This Environmental Report may containpredictions or forecasts about the future. Actualresults may vary from forecasts due to a varietyof factors.

3

Management
Contents
Message from the President…p.5

Environmental Philosophy…p.6

Environmental Policies…p.6

Environmental ManagementStructure…p.7

Environmental Targets
and Achievements…p.8

Environmental Impact
Overview…p.9

4

Message from the President
In September 2015, at the United Nations summit, member countries adopted theSustainable Development Goals (SDGs), and in November 2016, the Paris
Agreement on climate change entered into force. This movement was inspired by
the urgent need to take global measures against the greenhouse gas emissions
caused by human activities, which affect climate change and result in serious
damage to the environment. As a company operating a global business, we, theDenyo Group, believe that we are responsible for dealing earnestly withenvironmental issues and positively carrying out activities and developing productsthat are environmentally friendly.
Given this situation, we have been introducing energy-efficient facilities, promoting
the 3R activities and greening, and making other efforts to reduce CO2 emissions
and waste materials in our business activities. In product development, we aredeveloping hybrid products and expanding the lines of products that are equippedwith automatic idling stop function, which reduces CO2 emissions, and Eco Base asstandard, which minimizes oil outflow if oil ever leaks.
All members of the Denyo Group will continue to carry out business activities while
addressing global environmental issues to contribute to building a rich society.
Meanwhile, we are taking steps to shift to the ISO 2015 standards. We are striving
to provide greater satisfaction and earn the enhanced trust of our stakeholders by
improving our quality assurance system and environmental efforts. We would
greatly appreciate your continued understanding and support.
October 2017

Shoichi Shiratori,President
Denyo Co., Ltd.

5Environmental Philosophy
As well as contributing to social infrastructure upgrades
worldwide through our power source products, Denyo is
profoundly aware of its corporate social responsibility toconserve the environment, and tirelessly promotes
environmentally sound business activities.

Environmental Policies
1.

In our business activities, we strive to prevent pollution and to promote eco-friendly products while seeking
ways to maintain a healthy environment by conserving materials and energy, cutting back on solid waste, andreducing odors and noise.

2.

We comply with environmental regulations and other agreed requirements, and we respect related demands
from society.

3.

As well as building a system of management to engage with environmental conservation and finding ways tomake continual improvements, we set environmental goals and targets, and improve environmental
performance by carrying out reviews.

4.

As well as documenting the environmental policies to inform employees and everyone who works on behalf ofthe company, we disclose the information in the public domain.

6Environmental Management Structure● Promotion System
Denyo is carrying out promotion activities aimed at reducing the total environmental impact by the following promotion Dept. intensively.
Chairman & CEO■… Promotion Department

PresidentInternal Audit Office

Administration Division

Sales Division

Quality
Management
DivisonDevelopment Division

Quality
Management
Dept.

PatentAdministration
Dept.

Production
Management
Dept.
Manufacturing
Dept.

Planning &Coordination
Dept.

International
Sales
Dept.Ⅰ

East Japan Sales
Dept.

Information
System Dept.

InternationalSales
Dept.ⅡWest Japan
Sales Dept.

Development
Dept.

Plant & Project
Dept.

EngineeringDept.

General Affairs
Dept.

Sales Promotion
Dept.

Sales Planning
Dept.

Production Division

Personnel Dept.

Finance Dept.

● ISO14001 Certification
We obtained ISO14001:2004 certification for our environmental management systems on October 19, 2006. And one of the Denyogroup companies, Denyo Vietnam Co., Ltd. also has obtained ISO9001, ISO14001 certification. We control CO2 emissions byconserving resources and energy. Through our business, we also carry out activities aimed at reducing the total environmental impact.

7Environmental Targets and Achievements
To implement environmental management, we set targets for each financial year and carry out evaluations from time to time.

ItemDevelop products with highenvironmental performance

Formation of a recycling-basedsociety

Contribute to society

FY2017 Target

FY2017 Achievements

FY2018 Target

We will develop eco-friendly
products.

We expanded the products that standardly equippedwith an environmentally friendly base and idling stopfunction, and developed the new products such assilent generator and hybrid power generator, etc.

We will develop eco-friendlyproducts.

By the end of FY2017, we will
cut the volume of industrial
waste per output by at least
15% compared to FY2012
levels.

-22.7% year-on-year reduction in discharge volume
compared to FY2012 levels-23.6% year-on-year reduction per output
compared to FY2012 levels

By the end of FY2018, we will
cut the volume of industrial
waste per output by at least 1%
compared to FY2017 levels.

By the end of FY2017, we will
cut the volume of crude oil
equivalent energy used peroutput by at least 30%
compared to FY2012 levels-21.6% year-on-year reduction in
consumption volume compared to FY2012 levels-22.8% year-on-year reduction per output
compared to FY2012 levels

By the end of FY2018, we will
cut the volume of crude oil
equivalent energy used per
output by at least 1.5%
compared to FY2017 levels.

Enhance maintenance ingreen belts adjoining the areas
around our business facilities.

-We carried out the first phase of planting on thesouth side of the entrance to the Fukui Plant andmowed the weed zones , increased theplanter ,created the green curtains made of bitter
melons, etc.
-We did the maintenance and cleaning in Shiga
Plant with the aim of creating harmony with nature.
- We did the planting,cleaned and mowedsurrounding the Laboratory & Training Center.

Enhance maintenance ingreen belts adjoining the areas
around our business facilities.

8

Environmental Impact Overview
At Denyo, we understand the material input for our business activities and we endeavor to reduce the environmental impact.

INPUT【Atmospheric Discharge】【Fuel】
Kerosene

73.3klFuel oil A

409.1kl

LPG

213.5tGasoline

9.6kl

Diesel111.6klPurchasedelectricity

Greenhouse Gas (CO2)4,762t・Xylene15.0t

・Toluene

21.2t

・Ethyl benzene

2.5t･Methylene chloride

2.3t

・Tetrahydromethylphth
alicanhydride

0.3t・Styrene

4.9t

・1,2,4-trimethyl benzene

1.4t

Chemicals↓
Procure materials↓
Produce

Water supply

8,296.3㎥

Ground water

42,475.0㎥↓【Water Discharge】 （2）50,771.3㎥

Waste water

Distribute* The figure indicates waste water that is not recycled.

【Solid Waste】【Main Raw Materials】

CopperDevelop/Design

4,932.7MWh【Water Resources】 （1）Iron

OUTPUT

Business Activities

1,746.3ｔ
368.4ｔN.B.
(1) and (2) are totals for the Fukui and Shiga Plants.

↓Industrial waste

262.3ｔ【Main Products】

Sell

Generators, Welders
Compressors
FY2017 Results9

Eco-Friendly
Products

Contents
Developing Products with High
Environmental Performance…p.11

Silent Generator “Mālie”
Hybrid Power Generator

10

Developing Products with High Environmental Performance● Silent Generator “Mālie”● Hybrid Power Generator

Mālie ※1 is the industry’s first silent generator with a noise value ofjust 43 dB ※2, which was developed in an effort to minimize noise
as much as possible in response to increasing demand for noisereduction functions in recent years.

Our hybrid power generator is an environmentally-friendly productthat combines a battery and power generated with a diesel engine.

To achieve quietness, we used various means such as removing
the engine fan, which was the source of the noise, and attaining
cooling with only two electric fans and creating a double structureof the muffler and resonator to maximize the effect of reducing thenoise from the intake and exhaust system in a limited space.
The noise value of 43 dB achievedthrough these efforts is almost
equivalent to the quietness of a library,which eliminates user stress. We willcontinue to actively develop productsthat offer not only high noise-reduction
performance, but also environmental
friendliness.

The battery supplies AC power when it is charged, and when thebattery power runs low, the generator automatically activates theengine and switches the power source to the generator and starts
charging the battery.
When the battery is fully charged, the engine stops and the powersource changes back to the battery. We have achieved low fuelconsumption based on the new idea of storing the efficiently
generated electricity in a battery and outputting it.
This has enabled continuous
operation for approximately twice aslong as conventional engine-based
generators. Additionally, the power
generation from the battery allows
silent operation, which can be usedat night time or in a housing area
without stress.

※1: Mālie is the Hawaiian word for “quiet” or “calm.”※2: Averaged value of 50Hz no-load machine with

7 meters of four directions.

DCA-25MZ

HYB-2000Ｅ

11Eco-FriendlyProduction
Contents
Global Warming Prevention…p.13

Formation of a Recycling-based Society…p.13

Managing Chemicals

…p.14

12

Global Warming Prevention● Reduce CO2 Emissions
Denyo endeavors to prevent global warming through initiatives to reduce CO2 emissions due to business activities.
CO2 emissions in FY2017 were 4,762 tons, a decrease of 1.8% from the FY2012 levels. After the Great East Japan Earthquake, due tothe conversion coefficients to CO2 emission increased, the numeric value has improved slightly compared to FY2012, but power
consumption before conversion to CO2 emissions coefficients decreased 20.8% from the FY2012 levels. The amount of the consumptionof fuels also decreased drastically,18.3% from the FY2012 levels. We will continue to implement initiatives to cut CO2 emissions during
FY2018.
Total CO2 Emissions and CO2 Emissions（kg-CO2/PowerFuel
CO2 emission
CO2 emissions (kg) /for Non-consolidated Sales（t-CO2 ）Net Sales）
consumption(thousand kWh)consumption
(GJ)

after
conversion (t)Non-consolidatedsales (Millions of yen)

FY2017

4,932.7

34,088.2

4,762

135.6

FY20126,224.341,736.6

4,850135.9

Change fromFY2012△ 20.8 %△ 18.3 %△ 1.8 %

△ 0.2 %

6,000
5,000
4,000
3,000
2,000
1,000018015012090603002012

2013

2014

Formation of a Recycling-based Society2015

Fiscal year

※Net sales is Denyo Non-consolidated Sales

2017(t-CO2)（t-CO2 ）(kg-CO2/売上高）（kg-CO2/Net Sales ）Plastic waste
8.1%

Waste oil
6.3%
Alkali waste
3.6%●Reduce Solid Waste
We manage and process solid waste appropriately and in compliance with all laws andordinances.
In FY2017, we discharged about 262 tons of industrial waste, down by 23.6% per
output compared to the FY2012 levels, which is far above the target.
We are also working toward to implement initiatives to reduce a certain amount or moreof Solid Waste stably.

2016

Sludge40.5%

others0.4%
Wood chips
41.1%

Breakdown of Total Solid Waste*Total for the Fukui and Shiga Plants

13

Managing Chemicals●Managing Chemicals Subject to PRTR
Based on the PRTR Law, we compile and release data on chemicals subject to the PRTR including amounts released into theenvironment or transferred as solid waste.

*A Pollutant Release and Transfer Register (PRTR) is a system for compiling and disclosing data on hazardous chemical
substances including their sources, how much is released into the environment or transferred off-site with solid waste.

Amountreleased to theatmosphere

Amountof transfer(A) Xylene

15.0

1.2(B) Toluene

21.2

4.9(C) Ethyl benzene

2.50.215.0(D) Methylene chloride

2.3

2.8

10.0

Substance(E) Tetrahydromethyl
phtalicanhydride

0.3

3.0(F) Styrene

4.90.0(G) 1,2,4-trimethylbenzene

1.40.2

Amount of Release and Transfer of Chemicals
Subject to PRTRt
30.0

25.0
20.0

5.0

4.9
1.2

21.2
15.0

0.0
(A)

(B)

0.2
2.5

2.8
2.3

3.0
0.3

0.0
4.9

0.2
1.4

(C)

(D)

(E)

(F)

(G)

Amount of release

Amount of transfer（Unit： t ）14

Topics

Contents
Environmental Measures for Production Base
Reduction of Waste Materials through theIntroduction of Iron Pallets…p.16

Planting on the South Side of the Entrance tothe Fukui Plant…p.16

Installation of Solar Panels

…p.17

15

Environmental Measures for Production Base●Reduction of Waste Materials through the Introductionof Iron Pallets●Planting on the South Side of the Entrance to theFukui Plant

We have installed iron pallets on the loading platforms used totransport products and other goods.
Conventional wooden pallets deformed every time they wereused and were disposable. Iron pallets, on the other hand, canbe used repeatedly and help reduce the amount of scrap wood.
The pallets can be piled up in the storage area when they are
not in use, which helps us to keep the storage area tidier thanbefore.
We will continue our efforts to reduce waste and actively
promote the 5S activities in the factories.

We have undertaken planting on a slope to the side of theentrance to our Fukui Plant from a road in the town of Wakasa.
We are improving the environment around the Fukui Plant withthe aim of creating harmony with nature, and we recently
completed the first phase of our planting.
We planted azaleas and dwarf azaleas, and we expect them tohave beautiful flowers from next year on.
We are planning the second phase of the planting in fiscal year
2018, and we will continue to improve the environment with afocus on harmony with nature.

Wooden pallets

Iron pallets

Slope where azaleas and dwarf azaleas were planted16

●Installation of Solar Panels
Our subsidiary in U.S., Denyo Manufacturing Corporation, has
extended and reconstructed its office building and installed 30
kW solar panels on its premises. This solar panel system
supplies all the power needed for the office building, and any
surplus energy can be used in the factory area.
In addition, numerous large windows have been installed in theoffice building and cafeteria, which allow natural light to enter thebuilding and help create a bright, comfortable space even with asmall amount of electricity.
The Denyo Group will continue to promote energy and power
conservation and work to reduce electricity consumption andCO2 emissions.

30 kW solar panels

New DMC office building

Training room with intake of natural light17

2-8-5, Nihonbashi-horidomecho, Chuo-ku, Tokyo 103-8566, Japan
Phone: +81-3-6861-1111, Facsimile: +81-3-6861-1181
http://www.denyo.co.jp