Environmental Report 2021
(2020.4-2021.3)

Contents
Editorial Statement…p.2

Environmental Consciousness in
the Product Life Cycle …p.14

Management…p.3
Message from the President
Environmental Philosophy

After-Sales Service Initiatives

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.24

Environmental risk management

Eco-Friendly Products…p.11

Environmental conservation activities

Developing Products withHigh Environmental Performance

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 2021 (April 2020 to March 2021) 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 2021

2

Management
Contents
Message from the President…p.4

Environmental Philosophy…p.5

Environmental Policies…p.5

Environmental Management Structure…p.6

Environmental Targets and Achievements…p.7

Overview of Environmental Impact in the
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.
In FY2021, our daily lives changed dramatically as COVID-19 spread
globally, with the Japanese government declaring a state of emergency
and repeatedly advising people to stay home.
In the meantime, the government declared in October 2020 that Japan
would realize a decarbonized society. We have been frequently hearing
news associated with environmental issues in these days, such as thecommercialization of renewable energy and promotion of deplasticization. Many Sustainable Development Goals (SDGs) talk about
the global environment. People have become more conscious ofenvironmental issues as critical challenges that the whole world must
address together. As a member of society, we will contribute to theformation of a sustainable society through a proactive involvement inenvironmental activities and by developing environmentally friendly
products, such as introducing energy saving equipment while
researching and developing hydrogen products.
We appreciate your continued understanding and support.
October 2021
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

Contribute to society

FY2021 Target

FY2021 Achievements

FY2022 Target

Develop eco-friendly products
based on new proprietary
technologies

Develop welding machine with anautomatic idle stop feature

Develop eco-friendly products
based on new proprietary
technologies

By the end of FY2021, we will cut
the volume of industrial waste per
output by at least 13.5% comparedto FY2017 levels.

13.9％ year-on-year reduction per
outputcompared to FY2017 levels

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

5.1% increase per output in
FY2017*
By the end of FY2021, we will cut
the volume of crude oil equivalentenergy used per output by at least
7% compared to FY2017 levels.

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

*Increased due to reasons such as
preparation for operation and test
runs accompanying the
introduction of new production
equipment. Energy savings are
forecast for the following fiscal year
because of higher productivity.
・Carry out cleaning activities onroads surrounding the premises
・Plant flowers in season andincrease planters

By the end of FY2022, we will cut
the volume of crude oil equivalentenergy used per output by at least
7.5% compared to FY2017 levels.

Enhance maintenance in green
belts adjoining the areas aroundour business facilities.

7

Management
Overview of Environmental Impact in the Value Chain
Eco-Friendly Production

INPUT

Environmental Consciousness in the
Product Life Cycle

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

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

Procurematerials

Chemicals (Chemicals Subject to PRTR)
Waste water

OUTPUT

Solid Waste

Produce

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.)

3,708

Global environmental
conservation cost

CFC equipment disposal cost

2,039

Resource circulation
cost

Waste disposal cost

14,1030

Upstream/downstream cost
Environmental activities cost

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

7,645

Social activities cost0

Environmental remediation cost

0

Total

27,4959

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

Explanation of the emergency response manual

Fire extinguisher training10

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

Fuel Cell Portable Generator
Auto Pump Generator
Conservation of biodiversity andecosystem

…p.13

11

Eco-Friendly Products
Developing Products with High Environmental Performance◆ Fuel Cell Portable Generator◆ Auto Pump Generator

We have started developing portable fuel-cell
generators and demonstrated operations, considering
fuel cells for hydrogen-based power generation as aneffective means of reducing CO2 emissions, a cause of
global warming. These activities are based on adoptionof the Guided Technology Development and
Demonstration Project for Strengthening Measures to
Reduce CO2 Emissions by the Ministry of theEnvironment.
We are working to encourage the use of renewableenergy and realize a sustainable society through theuse of fuel cells.

Auto Pump Generator has the function to automaticallystart/stop a generator/submersible pump by turning on/off
the float switch according to the water level when asubmersible pump is used during wastewater treatment atconstruction sites.
The product is designed to reduce fuel consumption and CO2
emissions and even noise by decreasing unnecessary
operation.

Fuel Cell Portable Generator*The system employs thecell technology used in thefirst-generation MIRAI fuelcell vehicle (FCEV) fromToyota Motor

DCA-45LSKB
Auto Pump Generator

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 2016 2017 2018 2019 2020 2021

Fiscal year
Number of models

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 maintenance service
Training for service staff
Product knowledge lectures

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

Machine internal inspection at delivery
of a generator

Test run inspection at delivery of a generator◆ Periodical maintenance service
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

Practical training for service staff

Product knowledge lectures
for customers◆ Training for service staff◆ Product knowledge lectures

We provide education for the servicing staff working inthe service factories to ensure that high-quality services
are provided.

We give seminars about product knowledge sothat our customers can be equipped with theproper knowledge and use our products safety.

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 FY2021 were 4,375 tons, a decrease of 8.1% from the FY2017 levels.
Energy consumption increased from FY2020 due to the preparation and test runs of new production equipment. In
spite of this, converted CO2 emissions dropped from 2017 because of the changed CO2 emission coefficient ofpurchased electricity. Denyo will continue to reduce CO2 emissions.

CO2 emissions
Power
CO2 emission Net Sales (kg) / NonFuel consumption
consumption
after(Millions consolidated
(GJ)
sales
(thousand kWh)conversion (t) of yen)
(Millions of yen)

t-CO2
6,000
5,000

Total CO2 Emissions and CO2 Emissions
Per Non-consolidated Sales

135.6

141.7
116.6

4,000
FY2021

5,025.0

39,346.5

4,375 36,814

118.8

4,932.7

34,088.2

4,762 35,117

135.6

Changefrom
FY2017+ 1.9 %

+15.4 %

△8.1 % + 4.8 %△12.4%

107.9

118.8

3,000
2,000

FY2017kg-CO2/Net Sales

4,762

4,956

2017

2018

4,425

4,407

4,375

1,000
0

※Net sales is Denyo Non-consolidated Sales(t-CO2)(t-CO2)

2019
2020
2021
Fiscal year
(kg-CO2/売上高）(kg-CO2/Net Sales)18

Eco-Friendly Production
Formation of a Recycling-based Society◆ Energy Consumption reduction
The volume of crude oil equivalent energy used per output in FY2021 was 85.2L/million yen, which is an increase of
5.1% from the FY2017 levels.
This may have stemmed from the rapid rise in electricity and LPG consumption during the introduction and test runs of
new equipment. We forecast higher production efficiency and energy savings as a result, once the new equipment starts
to operate.
Breakdown of Energy Consumption(Crude Oil Equivalent)
Diesel6.3%

Kerosene
2.3%

L/Million Yen

kL
2,500

Gasoline
0.3%

LPG
17.7%
Electircity
52.4%
Fuel oil
21.1%

Energy Consumption and Crude Oil Equivalent per output

81.1
使
用
エ
ネ
ル
ギ
ー
量

86.1

2,000

75.8

75.7

1,934

2,012

85.2

1,500
1,000

1,922

2,008

2017

2018

2,104

500

原
油
換
算
／
生
産
高

0
2019
2020
2021
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 FY2021, we discharged about 232 tons of industrial waste, down by 13.9% 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
5.9%
Waste acid

Alkali waste
1.6%
OthersAmount of Solid waste and Solid waste per output
ｔ

0.1%

8.7%

300.0

kg/Million Yen
10.9

10.4

250.0

Plastic waste
11.5%

Sludge44.0%
Wood chips

200.0
廃棄 150.0物
量 100.0

257.6

241.8

2017

2018

8.9

227.4

9.1

9.4

240.6

232.0

50.0

28.2%

廃
棄
物
量
／
生
産
高

0.0
Breakdown of Total Solid Waste*Total for the Fukui and Shiga Plants

Solid Waste (t)

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

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 1,518 wooden pallets were recycled
in FY2021.
This resulted in a waste reduction of
approximately 26 t.

RecycleThe wood chips generated in the production
process were all recycled. 46% of sludge, waste
plastics, and waste alkali was recycled as cement
materials.
This resulted in recycling of approximately 128 tonsof waste, which is 55% of the total, 232 tons ofwaste, as new raw materials in FY2021.

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.
Substance

Amountreleased to theatmosphere

Amount oftransfer(A) Xylene

8.2

0.7

(B) Toluene

9.4

2.4

(C) Ethyl benzene

1.7

0.2

(D) Methylene chloride

1.0

5.3

(E) Tetrahydromethyl
phtalicanhydride

0.1

3.5

(F) Syrene

6.3

0.0

(G) 1,2,4-trimethylbenzene

0.9

0.1
( Unit： t )Amount of Release and Transfer of Chemicals
Subject to PRTR

t
25.0

20.0
15.0
10.0

0.7

2.4

5.0

8.2

9.4

0.0
(A)

(B)

0.2
1.7

5.3

3.5

1.0

0.1

(C)

(D)

(E)

Amount of release

0.0
6.3

0.1
0.9

(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 introducing the guideline to all of our employees.
We will try to utilize the guideline externally as well as internally to be more proactive in our environmental initiatives in22
the material procurement process.

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

Roof Greening
Water Quality Monitoring

Community contribution activities…p.25

Internship Programs

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 m2) 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
Community contribution activities◆ Internship Programs

Fukui Plant invites local high school students for internships. The internship system aims to encourage students to receive
practical experience in the production process to gain a deeper understanding of work, society and Denyo.
We will strive to become more familiar to our communities and strengthen local bonds by proactively holding such eventsas plant visits and internships for local elementary school children and high school students.

Panel repair process: Cutting out and bending

Assembly process: Drawing check25

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/