Environmental Report 2022
(2021.4-2022.3)

Contents
Editorial Statement…p.2

Environmental Consciousness in
the Product Life Cycle …p.14

Management…p.3
After-Sales Service Initiatives
Message from the President
Environmental Philosophy

Eco-Friendly Production …p.17

Environmental Policies
Environmental Management Structure

Global Warming Prevention

Environmental Targets and Achievements

Formation of a Recycling-based Society

Overview of Environmental Impact in the
Value Chain

Managing Chemicals

Environmental Accounting

Environmental conservation &community contribution activities…p.23

Environmental risk management

Eco-Friendly Products…p.11
Developing Products withHigh Environmental Performance

Environmental conservation activities
Community contribution activities

Conservation of biodiversity and ecosystem

1

Editorial Statement
Information Disclosure

Contact

Denyo Co., Ltd. will use the media shown below todisclose information to all stakeholders, including
customers and shareholders about its environmental
initiatives aimed at delivering a sustainable society.
【 Annual Environmental Report】

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

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

Reporting Period

Disclaimer

Fiscal 2022 (April 2021 to March 2022) and for somecontent, the periods before and after.

This Environmental Report may contain predictions orforecasts about the future. Actual results may vary fromforecasts due to a variety of factors.

Publication Date
October 2022

2

Management
Contents
Message from the President…p.4

Environmental Philosophy…p.5

Environmental Policies…p.5

Environmental Management Structure…p.6

Environmental Targets andAchievements…p.7

Overview of Environmental Impact inthe Value Chain…p.8

Environmental Accounting…p.9

Environmental risk management

…p.10
3

Management
Message from the President
Thank you very much for reading our Environmental Report.
COP26 was held in Glasgow, UK, in the fall of 2021.Prime Minister
Kishida attending from Japan set a new Greenhouse Gas Emissions
Reduction Target for FY2030, and all countries agreed on more
ambitious targets than those set by the 2015 Paris Agreement. Theinternational community as a whole is expected to remain actively
engaged in discussions in order to achieve these goals.
In addition, Russia's invasion of Ukraine in February 2022, and thedecision of the G7 nations, including Japan, to work toward phasing out
or prohibiting imports of Russian oil has brought into stark relief
geopolitical energy concerns. This has resulted in a greater focus
around the world on renewable energy.
Given this situation, we have established a new Sustainability
Promotion Committee, positioning climate change mitigation as one of
our key priorities and setting a CO2 emissions reduction target to reachby FY2030. To enable us to contribute to achieving a sustainable society
through the provision of power source products, we will continue toengage in ecologically responsible activities and develop eco-friendly
products, including the introduction of fuel cell vehicles and researchand development of hydrogen-related products.
We appreciate your continued understanding and support.
October 2022
Shoichi Shiratori,
President

4Management
Environmental Philosophy
As well as contributing to social infrastructure upgrades worldwide
through our power source products, Denyo is profoundly aware ofits corporate social responsibility to conserve the environment,
and tirelessly promotes environmentally sound business activities.
Fukui Plant

Environmental Policies
1.

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

2.

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

3.

As well as building a system of management which is based on the ISO14001:2015 to engage with environmental
conservation and finding ways to make 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 of thecompany, including the requirements of stakeholders, we disclose the information in the public domain on our
homepage.

5.

We strive to achieve environmental targets by continually improving the effectiveness and efficiency of the process.

5Management
Environmental Management Structure◆ Promotion System
Denyo is carrying out promotion activities
aimed at reducing the total environmental
impact by the following promotion Dept.
intensively.

◆ ISO14001 Certification
Denyo has established an environment management system (EMS) with the president as the system manager andobtained ISO14001:2015 certification. While ensuring smooth operation of the EMS, we evaluate the environmental
impact of our business activities, set concrete targets and an annual plan for important issues, and perform
environmental load reduction and environmental risk prevention activities through the promotion of resource andenergy saving.

6

Management
Environmental Targets and Achievements
To implement environmental management, we set targets for each fiscal year and carry out evaluations from time to time.
Item
Develop products withhigh environmental
performance

Formation of a recyclingbased society

FY2022 Target

FY2022 Achievements

Develop eco-friendly products
based on new proprietary
technologies

Developed 3 models in 1 series,
including an LED floodlight withlithium-ion battery

Develop carbon neutral products

By the end of FY2022, we will cut thevolume of industrial waste per
output by at least 15% compared to
FY2017 levels.

23.0％ year-on-year reduction
compared to FY2017 levels

Cut the volume of industrial waste
per output by at least 0.13
kg/million yen or more compared to
FY2022 levels

17.5% more than in FY2017*
By the end of FY2022, we will cut thevolume of crude oil equivalentenergy used per output by at least
7.5% compared to FY2017 levels.

*Internal production volume
increased as a result of bringing
outsourced processes in-house
after installing new coating
equipment.
・Planted trees and increased

Contribute to society

FY2023 Target

Enhance maintenance in green belts
adjoining the areas around ourbusiness facilities.

planters
・Pruned trees and managed areawith weeds
・Collected garbage

Cut the volume of crude oil
equivalent energy consumption per
output by 1.28 l/million yen or morecompared to FY2022 levels

・Carry out cleaning on a regularbasis at each business facility andschedule maintenance in green
belts・Community contribution activities

7

Management
Overview of Environmental Impact in the Value Chain
Environmental Consciousness in the
Product Life Cycle

Eco-Friendly Production

INPUT

Energy（Electricity, Fuel oil, LPG, Diesel, Kerosene, Gasoline）

Main Raw Materials (Iron, Copper)
Water Resources (Water supply, Ground water)
Develop/Design

Procurematerials

Produce

Chemicals (Chemicals Subject to PRTR)
Waste water

OUTPUT

Solid Waste

Distribute

Sell

Service

Main Products(Generators, Welders, Compressors)
Greenhouse Gas (CO2)

Denyo strives to reduce its environmental impact by understanding
the input and output of materials in its production and otherbusiness activities.（P.17～P.22）

Through product knowledge lectures andservices including inspections performed upondelivery and regular inspections, Denyo strives toreduce its environmental impact through theproper use of our products.（P.14～P.16）

8

Management
Environmental Accounting
We quantitatively manage the implementation our environmental conservation activities through environmental
accounting and use the results to ensure efficient and effective environmental conservation activities.
(We use a unique tabulation system for environmental accounting developed while referencing the Environmental
Accounting Guidelines 2005 from the Ministry of the Environment.)
Contents

Category

Business area cost

Expenses(thousands of yen)

Pollution
prevention cost

Cost of environmental measurements(water quality, odor, vibration, noise, smoke, etc.)

5,469

Globalenvironmental
conservation cost

CFC equipment disposal cost

5,588

Resource
circulation cost

Waste disposal cost

19,7000

Upstream/downstream cost
Environmental activities cost

Green maintenance and management costs,
environment-related equipment inspection andmaintenance costs

9,264

Social activities cost0

Environmental remediation cost

0

Total

40,0219

Management
Environmental risk management
Denyo assumes the environmental risks of a sudden accident or disaster, etc. that may occur during our businessactivities and implements regular education and training for the purposes of the prevention of, early action against,
and mitigation of such situations.
We are confirming the appropriate response and making continuous improvements while looking back on pastcases.
◆ The Emergency Response Education and Training

Explaining how to use mitigation materials
for emergency situations（Fukui Plant）

Training: checking status and extent ofwastewater leaks（Fukui Plant）

Fire extinguisher training（ Laboratory & Training Center ）10

Eco-Friendly ProductsContents
Developing Products with High
Environmental Performance…p.12

Battery LED floodlights
Emergency generator using city gas
Conservation of biodiversity andecosystem

…p.13

11

Eco-Friendly Products
Developing Products with High Environmental Performance◆Battery LED floodlights PL-241SLB◆Emergency generator using city gas

NEG POWER

PL-241SLB is an LED floodlight powered by the
Honda Mobile Power Pack (below "Mobile PowerPack").
Mobile Power Pack is highly versatile, allowing it to
be used in electric motorcycles and small heavymachinery. It can also be alternated with a charged
battery for extended operation.*1
LED split lights can be positioned freely to illuminate
large areas, as well as in situations that require
lighting without producing noise or emissions, suchas during nighttime construction or at events.

NEG POWER is an emergency generator for domestic usethat runs on city gas.*2
City gas is regarded as the most environmentally friendly of
all fossil fuels. Its CO2 emission coefficient is lower thanthat of LP gas or diesel oil, contributing to the reduction ofgreenhouse gases.
It is expected that its popularity will grow as anenvironmentally friendly BCP facility since it can be
operated for extended periods without the need to install
external fuel tanks, as is the case with power generationequipment that runs on diesel oil.

NEG-40UST

PL-241SLB*2 Natural gas (city gas 13A)
*１ Equipped with 2 batteries

12Eco-Friendly Products
Conservation of biodiversity and ecosystem
Denyo has enhanced its lineup of models incorporating Eco Base, which prevents oil and other leaks from the machinein unexpected situations.
60

50

50

40

40

30

30
20

20

10

10
0

0
2015 16

17

18

19

Fiscal year
Number of models

20

21

22

Eco Base Generators as a percentageof the yearly number of units sold (%)

「Eco Base」

If an oil or other leak of oil from themachine is prevented, it will reduce theburden on the environment and conserve
biodiversity and ecosystems.

Number of models with Eco BaseIt prevents fuel, oil or coolant inside themachine from leaking, because Eco Base canreceive it.

Eco Base Generators ratio

Our customers have selected these models,appreciating the strong lineup of Eco Base models as
the market becomes more aware of the environment.

13

Environmental Consciousness in the
Product Life Cycle
Contents
After-Sales Service Initiatives…p.15

Periodical inspection of generators
Technical training for service staff

14

Environmental Consciousness
in the Product Life Cycle
Approximately 90% of CO2 emissions in the life cycle of construction machinery is generated while the products are being used.
In addition, there is the risk that an unexpected accident during use may cause environmental pollution.
Denyo believes that it is important to promote eco-friendly products and provide after-sales services to ensure users have thecorrect knowledge to operate our products safely.

After-Sales Service Initiatives

Measuring insulation of generator

Tuning generator engine◆ Periodical inspection of generators
Emergency generators are becoming an increasingly important BCP measure for society.
Generators must undergo appropriate periodic inspections in order to ensure that generators are maintained in good working
order and ready for use in the event of emergency situations.Inspections are performed via the national network of service
factories*.
We work to maintain the products on customer sites in good condition.
* Service factory: Subcontracting companies that preform servicing operations such as the inspection and repair of Denyo products and sales of parts

15

Environmental Consciousness
in the Product Life Cycle
After-Sales Service Initiatives

Training in the latest product knowledge

Training in using measuring instruments
for inspection and maintenance◆ Technical training for service staff
After-Sales service requires a variety of skills and knowledge.
We provide education for the servicing staff working in the service factories to ensure that high-quality services
are provided.

16

Eco-Friendly Production
Contents
Global Warming Prevention…p.18

Reduce CO2 Emissions
Formation of a Recycling-based Society…p.19

Energy Consumption reduction
Reduce Solid Waste
3Rs Activities
Managing Chemicals…p.22

Managing Chemicals Subject to PRTR
Environmental awarenessin the material procurement process17Eco-Friendly Production
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 FY2022 were 4,876 tons.
From FY2020 to FY2021, CO2 emissions increased by 2.4% compared to FY2016 due to an increase in internal
production volume as a result of bringing outsourced processes in-house after installing new coating equipment, butemissions in terms of sales volume have been kept to 5.9%.
Denyo will continue to reduce CO2 emissions.
CO2
Power
Fuel
emission
Net Sales CO2 emissions (kg)consumption/ Nonconsumption
after(Millions of consolidated sales(thousand(GJ)
conversion
yen)(Millions of yen)
kWh)
(t)

t-CO2

Total CO2 Emissions and CO2 Emissions
Per Non-consolidated Sales

kg-CO2/Net
Sales

6,000
5,000

135

141

4,762

4,956

2017

2018

127

116

107

118

4,425

4,407

4,375

4,876

2019 2020
Fiscal year

2021

2022

4,000
FY2022

5,399

45,097

4,876

38,212

127

3,000
2,000

FY2017

4,933

34,088

4,762

35,117

135

Change from
FY2017+ 9.4 %

+32.3 %

+ 2.4 %

+ 8.8 %

△5.9%

※Net sales is Denyo Non-consolidated Sales

1,000
0

(t-CO2)(t-CO2)(kg-CO2/Net Sales)
Sales)(kg-CO2/Net

18

Eco-Friendly Production
Formation of a Recycling-based Society◆ Energy Consumption reduction
The volume of crude oil equivalent energy used per output in FY2022 was 95.3L/million yen, which is an increase of 17.5%
from the FY2017 levels.
This is attributed to an increase in electricity and LPG consumption due to increased internal production volume as a resultof bringing outsourced processes in-house after installing new coating equipment. We will continue working to improvethe energy efficiency of the new coating equipment.
Breakdown of Energy Consumption(Crude Oil Equivalent)
Kerosene
Diesel
2.3%
Gasoline
4.8%
0.3%
Fuel oil
13.1%

LPG
25.4%

Electircity
54.1%

Energy Consumption and Crude Oil Equivalent per output
L/Million Yen

kL
95.3

3,000
81.1
使
用
エ
ネ
ル
ギ
ー
量

86.1

2,500

75.8

75.7

1,934

2,012

85.2

2,000
1,500
1,000

1,922

2,008

2017

2018

2,104

2,515

原
油
換
算
／
生
産
高

500
0
2019
2020
2021
2022
Fiscal year
Energy Consumption（kL）
Curde Oil Equivalent/Output （L/Million Yen）

19

Eco-Friendly Production
Formation of a Recycling-based Society◆ Reduce Solid Waste
We manage and process solid waste appropriately and in compliance with all laws and ordinances.
In FY2022, we discharged about 221 tons of industrial waste, down by 23.0% per output compared to the FY2017 levels.
We are also working toward to implement initiatives to reduce a certain amount or more of Solid Waste stably.

Waste oil

6.1%

Alkali waste
3.3%

Amount of Solid waste and Solid waste per outputｔ350

Plastic waste
12.6%

300

kg/Million Yen
10.9

10.4

250

Wood chips

Sludge
49.1%

廃
棄
物
量

29.0%

8.9

9.1

9.4

8.4

240

232

221

200
150
100

257

241

227

2017

2018

2019
2020
2021
2022
Fiscal Year
Solid Waste/Output (kg/Million Yen)

廃
棄
物
量
／
生
産
高

50
0
Breakdown of Total Solid Waste*Total for the Fukui and Shiga Plants

Solid Waste (t)20Eco-Friendly Production
Formation of a Recycling-based Society◆ 3Rs Activities
In recent years, there have been problems with the depletion of resources such as petroleum, which areessential for our daily lives, and the shortage of final disposal sites for garbage. The importance of 3Rs (Reduce,
Reuse, Recycle) has been increasing.
Denyo implements a range of initiatives to make effective use of limited resources and minimize the impact on theenvironment. We will now introduce some of these activities.
Reduce ／ Reuse
Denyo changed from wooden pallets to ironpallets on the loading platforms used totransport products and other goods. The
disused wooden pallets were taken bycompanies that use wooden pallets, throughwhich 1,348 wooden pallets were recycled
in FY2022.
This resulted in a waste reduction of
approximately 23 t.

RecycleThe wood chips generated in the production
process were all recycled. 41% of sludge, waste
plastics, and waste alkali was recycled as cement
materials.
This resulted in recycling of approximately 123 tonsof waste, which is 56% of the total, 221 tons ofwaste, as new raw materials in FY2022.

21

Eco-Friendly Production
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
the environment 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

Amount oftransfer(A) Xylene

3.6

0.2

t
10.0

(B) Toluene

1.9

0.3

8.0

(C) Ethyl benzene

0.8

0.0

(D) Methylene chloride

2.0

4.0

(E) Tetrahydromethyl
phtalicanhydride

0.1

4.6

(F) Syrene

7.3

0.0

(G) 1,2,4-trimethylbenzene

0.1

0.0

Substance( Unit： t )Amount of Release and Transfer of Chemicals
Subject to PRTR

0.0

6.0
4.0

0.2

2.0

3.6

4.0
0.3
1.9

0.0
(A)

(B)

0.0
0.8

2.0

(C)

(D)

Amount of release

4.6

7.3
0.0
0.1

0.1

(E)

(F)

(G)

Amount of transfer◆ Environmental awareness in the material procurement process
Denyo has appealed to suppliers of parts and materials and contractors and asked them to consider the environment inchemical substance management and other fields. We summarized these initiatives in the Denyo Group Green
Procurement Guideline and began putting them into effect in FY2021.
We will continue to promote environmental awareness in the material procurement process.

22Environmental conservation &community contribution activities
Contents
Environmental conservation activities…p.24

Roof Greening
Water Quality Monitoring
Introduced LEDs in headquarters building

Community contribution activities…p.26

Held a plant/office tour

23

Environmental conservation &community contribution activities
Environmental conservation activities◆ Roof Greening◆ Water Quality Monitoring

Based on our environmental policy “promoting
environmentally sound business activities,” Denyo has been
implementing roof greening activities at the headquarters
building since 2012. Roof greening can reduce temperaturerise in a building, resulting in mitigation of the heat-island
phenomenon and improved cooling efficiency.
Thirty-eight percent (40.88 ㎡) of the headquarters building
rooftop area is part of the roof greening efforts, including
green planters. The light, artificial soil used withstands thedry summer air well. In addition, approximately 20 varieties,
mainly blooming plants, flourish throughout the year so thatthe four seasons can be sensed, and you can feel refreshed.
The area is used by many employees to relax.
The Fukui plant employs a method that collects
treated drain water in an on-premises balancing
reservoir before releasing it into a river.
We monitor water quality to ensure that anenvironment suitable for living creatures ismaintained. Even if contaminated water should
escape at the primary water discharge, the risk of
releasing contaminated water directly into theriver is minimized.

24

Environmental conservation &community contribution activities
Environmental conservation activities◆ Introduced LEDs in headquarters building
In January 2022, we replaced 1,365 fluorescent lamps in our headquarters building with LED lamps.
As a result, wattage per hour has reduced from 44.7kW to 17.0kW, which is expected to reduce power consumption byapproximately 64.1%.
LED lamps are not only better for the environment but also have a longer lifespan than fluorescent lamps, doing away with
the need for frequent replacement. This saves both time and expense, making them more cost-effective in the long run.
Employees, too, appreciate the new, brighter work environment.

25

Environmental conservation &community contribution activities
Community contribution activities◆ Held a plant/office tour
In July 2021, as part of its recruitment activities, the Fukui Plant hosted a tour of the workplace for local senior high school
students.
The tour began with a presentation in the conference room, where the students were provided with an overview of thecompany and information about the features of our products. They were then shown the product development site in the
prototype area and taken on a tour of the factory floor, during which they learned about the flow of the mass production
line and the operations involved in each process.

We will strive to become more familiar to our communities and strengthen local bonds by proactively holding such
events as plant visits and internships for local students.

26

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