Environmental Report 2020

Contents
Editorial Statement…p.3

Environmental Consciousness in
the Product Life Cycle …p.15

Management…p.4

Activities Promoting Eco-Friendly Products

Message from the President

After-Sales Service Initiatives

Environmental Philosophy

Eco-Friendly Production …p.18

Environmental Policies
Environmental Management Structure
Environmental Targets and Achievements
Overview of Environmental Impact in the
Value Chain
Environmental Accounting
Environmental risk management

Eco-Friendly Products…p.13
Developing Products withHigh Environmental Performance

Global Warming Prevention
Formation of a Recycling-based SocietyManaging Chemicals

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

2

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 2020 (April 2019 to March 2020) 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 20203

Management
Contents
Message from the President…p.5

Environmental Philosophy…p.6

Environmental Policies…p.6

Environmental Management Structure…p.7

Environmental Targets and Achievements…p.8

Overview of Environmental Impact in the
Value Chain…p.9

Environmental Accounting…p.10

Environmental risk management

…p.11

4

Management
Message from the President

Thank you very much for reading our Environmental Report.
During fiscal year 2019, a new Emperor was enthroned and the
new Reiwa era began. There were also other exciting news events,
like the Rugby World Cup, which featured the Japanese team's
outstanding performance as they finished in the best eight for the
first time.
On the other hand, much of the destruction caused by thetyphoons and heavy rains in Japan in September and October still
remains unrepaired. There has been no end to problems causedby the changing global environment, and it is the age when
individuals' and enterprises' abilities to address global
environmental issues are being questioned.
Based on this, to contribute to achieving a sustainable society
through the provision of power source products, we will continue
to actively conduct environmental-conscious activities, develop
eco-friendly products and focus on the resolution ofenvironmental issues.
We appreciate your continued support.
October 2020

Shoichi Shiratori,
President
Denyo Co., Ltd.
5

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 of Denyo Co., Ltd.

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.
6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.
Board of Directors
President■…Promotion Department

Internal Audit OfficePlanning & Coordination Office

Global Marketing Office

Administration Division

Sales Division

General Affairs
Dept.

International Sales
Dept.Ⅰ

East Japan Sales
Dept.

Personnel Dept.

International Sales
Dept.ⅡWest Japan Sales
Dept.

Finance Dept.

Plant & Project
Dept.

Sales Promotion
Dept.

Sales Planning
Dept.

Quality
Management
DivisonDevelopment Division

Production Division

Quality
Management
Dept.

PatentAdministration
Dept.

Manufacturing
Dept.

Development
Dept.

Production
Bases Control
OfficeTechnical
Support Dept.

Engineering
Dept.

Information
System Dept.

◎ 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.
7

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

FY2020 Target

Develop eco-friendly products
based on new proprietary
technologies

By the end of FY2020, we will cut
the volume of industrial waste per
output by at least 12% comparedto FY2017 levels.
By the end of FY2020, we will cut
the volume of crude oil equivalentenergy used per output by at least
6% compared to FY2017 levels

FY2020 Achievements

・Develop welding machine with anautomatic idle stop feature
・Development of Soundless Generator

FY2021 Target

Develop eco-friendly products
based on new proprietary
technologies

17.0% year-on-year reduction per
outputcompared to FY2017 levels

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

6.7% year-on-year reduction per output
compared to FY2017

By the end of FY2021, we will
cut the volume of crude oil
equivalent energy used per
output by at least 7% comparedto FY2017 levels.

・Cut down dead trees

Contribute to society

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

・Plant flowers in season and increase
planters
・Carry out cleaning activities on roads
surrounding the premises

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

8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

Distribute

Chemicals (Chemicals Subject to PRTR)
Waste water

OUTPUT

Solid Waste

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.18～P.23）

Through product knowledge lectures andservices including inspections performed upondelivery and regular inspections, Denyo strives
to reduce its environmental impact through theproper use of our products.（P.15～P.17）
9

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

Pollution prevention
cost

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

Global environmental
conservation cost

CFC equipment disposal cost

Resource circulation
cost

Waste disposal cost

Upstream/downstream cost
Management activities cost

Expenses(thousands of
yen)
3,564

196

24,2830

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

7,149

Social activities cost0

Environmental remediation cost

0

Total

35,19210

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 evaluate appropriate action procedures and continually improve activities.

The Emergency Response Education and Training
DetailReview past actions tovalidate the effectivenessof the internal system

Actions to take when fuel, oil, or chemicals flow out from a plant andhow to use mitigation materials

Date

2019/10/30

2019/11/20

2019/11/22

2019/11/26

2019/11/28

Place

Shiga Plant

Fukui Plant

Fukui Plant

Fukui Plant

Fukui Plant

Participants

20 persons

12 persons

11 persons

11 persons

4 personsConfirming methods for using
mitigation materials

Education for each department

Announcement of the Action Manual
to the departments on site11

Management
Environmental risk management【 Fire Drill 】
Denyo regularly conducts fire drill in case a fire occurs during its operations.

Fire Drill in
Fukui Plant

Fire Drillin Laboratory &Training Center

12

Eco-Friendly ProductsContents
Developing Products with High
Environmental Performance…p.14

Soundless Generator “Mālie”
LP Gas Standby Generating Set “LEG POWER”

13

Eco-Friendly Products
Developing Products with High Environmental Performance◎ LP Gas Standby Generating Set “LEG POWER”◎ Soundless Generator “Mālie”

The Mālie Soundless Generator is an engine
generator that is almost as silent as a library.
The DCA-45MZ added to the lineup now is a 45kVA
generator, a larger output generator than the 25kVA
DCA-25MZ released in 2017. Though the noise
reduction technologies were extremely hard todevelop, a 44 dB noise level was achieved, matching
the 25kVA generator.
This expansion of the lineup is expected to expand
the applications for these generators in late nightwork requiring silence as well as disaster prevention
and other professional uses.

LP gas is a resilient energy, whose supply is rarely
stopped even when electricity and urban gas are
cut off in a disaster. Our wide lineup of LP Gas
Standby Generating Sets, which use LP gas,
ranges from single-phase 9.9kVA to three-phase
54kVA generators and has earned a solid
reputation from the many customers using them.
The gasses they emit are clean, without
particulate matter (PM) or black smoke. In
addition, they are eco-friendly products that do
not stress their surroundings due to theirthoroughly designed acoustic insulation.

DCA-45MZ

LEG-9.9USXT

14

Environmental Consciousness
in the Product Life Cycle
Contents
Activities Promoting Eco-Friendly Products…p.16

Product training session

After-Sales Service Initiatives…p.17

Periodical maintenance service
Training for service staff

15

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.

Activities Promoting Eco-Friendly Products◎ Product training session
Denyo, which operates globally, is actively developing products and promoting its other business activities, with the goalof helping to resolve the deepening environmental issues. We also provide lectures to customers to promote eco-friendly
products.
Organizer
Date
Place
DetileDenyo United Machinery Pte. Ltd. ( Sales subsidiary in Asia )2019/11/6
VietnamIntroducing products of Ultra silence series

Introducing products

Introducing products by using
actual machines16

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

Machine internal
inspection atdelivery of agenerator

Test run inspection
at delivery of agenerator◎ Periodical maintenance service
Inspections are performed via the national network ofservice factories*. We work to maintain the products oncustomer sites in good condition.

Classroomtraining

Lecture using
actualequipment◎ Training for service staff
We provide education for the servicing staff working
in the service factories* to ensure that high-quality
services are provided.

* Service factory: Subcontracting companies that preform servicing operations such as the inspection and repair of Denyo products and sales of parts

17

Eco-Friendly Production
Contents
Global Warming Prevention…p.19

Reduce CO2 Emissions
Formation of a Recycling-based Society…p.20

Energy Consumption reduction

Reduce Solid Waste
3Rs Activities
Managing Chemicals…p.23

Managing Chemicals Subject to PRTR

18

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 FY2020 were 4,407 tons, an increase of 7.5% from the FY2017 levels.
Though energy consumption increased when compared with FY2018, CO2 emissions decreased due to the percentages of the typesof energy used. Denyo will continue to reduce CO2 emissions.

Power
consumption(thousandkWh)

FY2020FY2017

5,386.9
4,932.7

Fuelconsumption(GJ)

36,720.1
34,088.2

CO2
emission
after
conversion
(t)

4,407
4,762

Net Sales(Millions of yen)

40,83635,117CO2 emissions(kg) / Nonconsolidated
sales(Millions ofyen)

Total CO2 Emissions and CO2 Emissions
Per Non-consolidated Sales

t-CO2
6,000
5,000

135.6

141.7
116.6

107.9

4,000
107.9
135.6

3,000
2,000

kg-CO2/Net Sales

4,762

4,956

4,425

4,407

2016

2017
2018
Fiscal year

2019

1,000
Change from
FY2017+ 9.2 %

+ 7.7 %

△7.5 %+ 16.3 %△14.0%※Net sales is Denyo Non-consolidated Sales

0(t-CO2)(t-CO2)(kg-CO2/売上高）(kg-CO2/Net Sales)19Eco-Friendly Production
Formation of a Recycling-based Society◎ Energy Consumption reduction
The volume of crude oil equivalent energy used per output in FY2020 was 75.7L/million yen, which is a decrease of
6.7% from the FY2017 levels.
In FY2019, in addition to the replacement of indoor and outdoor lighting with LEDs and the renovation of high-efficiency
cubicles, which have been improved over multiple years, production efficiency was improved by the increase in production
volume and the crude oil equivalent of energy consumption per production volume decreased.

Breakdown of Energy Consumption(Crude Oil Equivalent)
Diesel6.0%

Kerosene
2.5%
Gasoline
0.3%

LPG
14.9%
Electircity
53.4%
Fuel oil
22.9%

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

kL
2,500.0
使 2,000.0
用エ 1,500.0
ネル
ギ 1,000.0
ー
量 500.0

81.1

86.1
75.8

75.7

1,921.5

2,007.8

1,934.4

2,011.9

2017

2018

2019

2020

原
油
換
算
／
生
産
高

0.0

Fiscal year
Energy Consumption（kL）

Curde Oil Equivalent/Output （L/Million Yen）

20

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 FY2020, we discharged about 241 tons of industrial waste, down by 17.0% per output compared to the FY2017 levels.
Though the total amount of waste increased due to the increase in production volume when compared with FY2018, the discharge ofwood chips decreased approximately 20% through 3R activities.

We are also working toward to implement initiatives to reduce a certain amount or more of Solid Waste stably.
Waste acid
Waste oil 4.2%
5.9%

Alkali
waste
1.0%

t
300.0

Amount of Solid waste and Solid waste per output

10.9

10.4

250.0

Plastic waste
8.9%

Wood
chips
25.3%

Sludge
54.7%

200.0
廃
棄 150.0物
量 100.0

257.6

kg/Million Yen

241.8

8.9

9.1

227.4

240.6

廃
棄
物
量
／
生
産
高

50.0
0.0
2016

Breakdown of Total Solid Waste

2017
2018
2019
Fiscal Year
Solid Waste (t)Solid Waste/Output (kg/Million Yen)

*Total for the Fukui and Shiga Plants21

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
the environment. We will now introduce some of these activities.
Reduce ／ Reuse

RecycleDenyo changed from wooden pallets to iron pallets
on the loading platforms used to transport
products and other goods. The disused wooden
pallets were taken by companies that use wooden
pallets, through which 1,842 wooden pallets wererecycled in FY2020.
This resulted in a waste reduction of approximately
32 t.

The wood chips generated in the production
process were all recycled. 35% of sludge, waste
plastics, and waste alkali was recycled as
cement materials.
This resulted in recycling of approximately 117
tons of waste, which is 49% of the total, 241
tons of waste, as new raw materials in FY2020.

22

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 totheatmosphere

Amount oftransfer(A) Xylene

11.8

1.7

20.0

(B) Toluene

14.4

6.7

15.0

(C) Ethyl benzene

2.4

0.4

(D) Methylene chloride

2.4

4.1

(E) Tetrahydromethyl
phtalicanhydride

0.3

3.6

(F) Syrene

7.5

0.0

(G) 1,2,4-trimethylbenzene

1.0

0.2

Substance

Amount of Release and Transfer of Chemicals
Subject to PRTR

t
25.0

6.7
1.7

10.0
5.0

11.8

0.0
(A)

0.0

14.4

(B)

0.4
2.4

4.1

3.6

2.4

0.3

(C)

(D)

(E)

Amount of release

7.5

0.2
1.0

(F)

(G)

Amount of transfer( Unit： t )23

Environmental conservation &community contribution activities
Contents
Environmental conservation activities…p.25

Roof Greening
Water Quality Monitoring

Community contribution activities…p.26

Participation in cleaning activities
Participation in the Self-Protection
Firefighting Team fire-extinguisher handlingtraining session

24

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

Based on our environmental policy “promoting environmentallysound business activities,” Denyo has been implementing roof
greening activities at the headquarters building since 2012. Roof
greening can reduce temperature rise in a building, resulting in
mitigation of the heat-island phenomenon and improved coolingefficiency.
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 the dry summer air
well. In addition, approximately 20 varieties, mainly blooming
plants, flourish throughout the year so that the four seasons can besensed, 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.

25

Environmental conservation &community contribution activities
Community contribution activities◎ Participation in cleaning activities

Denyo is also actively participating in the cleaning
activities, etc. hosted by Konan Industrial
Complex Association.
To improve the environment in consideration ofharmony with nature and to further strengthen
our connection with neighboring companies andthe local community, we will continue to actively
participate in these events.

Cleaning activity◎ Participation in the Self-Protection Firefighting Teamfire-extinguisher handling training session
In October 6, 2019, the Mikata Area Fire-Extinguisher
Handling Training Session by Wakasa-cho Self-protection
Fire-fighting Team was held.
This training session is intended for the Self-Protection
Fire-fighting Team to learn fire-extinguisher handlingtechniques and improve initial fire extinguishing actions,etc. Participating teams participate in initial fire
extinguishing technique training and compete.
From our company, four employees of the Fukui Plant
participated.

Self-Protection Firefighting Team fireextinguisher handling training session

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/