ENVIRONMENTAL REPORT 2023
（2022.4～2023.3）

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
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.11
Developing Products withHigh Environmental Performance

Eco-Friendly Production …p.17
Global Warming Prevention
Formation of a Recycling-based SocietyManaging Chemicals

Environmental conservation &community contribution
activities…p.23
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

Denyo Co., Ltd.

to disclose information to all stakeholders,

2-8-5, Nihonbashi-Horidomecho, Chuo-ku,

including customers

Tokyo 103-8566

its environmental

and shareholders about
initiatives aimed atdelivering a sustainable society.

Website: https://www.denyo.co.jp/english/
Planning & Coordination Office:Phone:【 Annual

Environmental Report】【HP】
https://www.denyo.co.jp+81-3-6861-1111

Facsimile: +81-3-6861-1185

Reporting Period

Disclaimer

Fiscal 2023 (April 2022 to March 2023) and forThis Environmental Report may containsome content, the periods before and after.

predictions or forecasts about the future.
Actual results may vary from forecasts due to

Publication Datea variety of factors.

October 2023
2

Management
Contents
Message from the President…p.4

Environmental Philosophy…p.5

Environmental Policies…p.5

Environmental Management
Structure…p.6

Promotion System
ISO14001 Certification

Environmental Targets andAchievements…p.7

Overview of Environmental Impact
in the Value Chain…p.8

Environmental Accounting…p.9

Environmental risk management…p.10

The Emergency Response Education
and Training
3

Management

Message from the President
Thank you very much for reading our Environmental Report.
With the recategorization of COVID-19 as a Class 5 infectious
disease in May this year, people’s lives and corporate activity
are returning to normal.
On the other hand, due to the Russia-Ukraine issues and otherissues, the energy situation has been unstable, which, coupledwith worldwide initiatives for carbon neutrality, is increasing
the focus on renewable energy.
In this situation, we have reviewed the scope of theapplicability of CO2 emissions reduction initiatives for FY2030
as well as the targets for these initiatives while successful

working on the development and commercialization of hydrogen cofiring generators to promote the initiatives for the realizationof carbon neutrality and a hydrogen-based society.
With a view toward the creation of new added value for theestablishment of a sustainable society through the provision of

power sources, we will continue to engage in ecologically
responsible activities and develop eco-friendly products.
We appreciate your continued understanding and support.
October 2023

Takanori Yoshinaga,
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 toprevent pollution and to promote ecofriendly products while seeking ways tomaintain a healthy environment by conserving
materials and energy, cutting back on solid
waste, and reducing odors and noise.

４.

As well as documenting the environmental
policies to inform employees and everyone
who works on behalf of the company,
including the requirements of stakeholders,
we disclose the information in the publicdomain on our homepage.

２.

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

５.

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

３.

As well as building a system of management
which is based on the ISO14001:2015 toengage with environmental conservation andfinding ways to make continual improvements,
we set environmental goals and targets, andimprove environmental performance bycarrying out reviews.

5Management

Environmental Management Structure◆ Promotion System

Denyo is carrying out
promotion activities aimed at
reducing the total
environmental impact by thefollowing promotion Dept.
intensively.

◆ ISO14001 Certification
Denyo has established an environment management system (EMS) with the president as the systemmanager and obtained ISO14001:2015 certification. While ensuring smooth operation of the EMS, weevaluate 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 and energy 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.

FY2023 Target
Develop productswith highenvironmental
performance

Develop carbon neutral
products（Develop at least one line ofenvironmentally friendly
products）

FY2023 Achievements
Develop a welding machine thatcomplies with China’s fourth
restriction of exhaust gas
emissions which includes stricter
emissions restriction conditions.

FY2024 Target
Develop carbon neutral
products（Develop at least one lineof environmentally friendly
products）

10.8L/million yen reduction*

Formation of arecycling-basedsociety

Contribute tosociety

Cut the volume of crude oil
equivalent energy consumption
per output by 1.28 l/million
yen or more compared to FY2022
levels* The amount of LPG decreased
due to the improved production
efficiency of new coating
equipment and energy-saving
measures.

Cut the volume of crude oil
equivalent energy
consumption per output by
1.28 l/million yen or morecompared to FY2023 levels

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

0.34kg/million yen reduction

Cut the volume of industrial
waste per output by at least
0.13kg/million yen or morecompared to FY2023 levels

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

・Planted trees and increased
planters
・Pruned trees and managed areawith weeds
・Engaged in the cleaning of
the areas surrounding ouroffices.

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

7

Management

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

Environmental Consciousness in the Product
Life Cycle

Denyo strives to reduce its environmental impact by

Through product knowledge lectures and services including

understanding the input and output of materials in its

inspections performed upon delivery and regular

production and other business activities.

inspections, Denyo strives to reduce its environmental

impact through the proper use of our products.

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
Solid Waste

Sell

Service

Main Products(Generators, Welders, Compressors)
Greenhouse Gas (CO2)OUTPUT
8

Management

Environmental Accounting
We quantitatively manage the implementation our environmental conservation activities throughenvironmental 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.)
Category

Business area costContents

Expenses(thousands of yen)

Pollution prevention
cost

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

4,259

Global environmental
conservation cost

CFC equipment disposal cost

5,198

Resource circulation
cost

Waste disposal cost

18,311

Upstream/downstream cost
Environmental activities cost0Green maintenance and management costs,
environment-related equipment inspection andmaintenance costs

8,818

Social activities cost0

Environmental remediation cost

0

Total

36,5869

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 past cases.
◆ The Emergency Response Education and Training（Fukui Plant）（Fukui Plant）（Laboratory & Training Center ）Checked mitigation materials for
emergency situations and explained
how to use them.

Emergency response training forhazardous substances (Absorbing leaked
oil using an oil absorption mat)

Fire extinguisher training10

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

250 kW hydrogen co-firing power generator
Start of the development of a 100%hydrogen-fueled power generator
Conservation of biodiversity andecosystem

…p.13

11

Eco-Friendly Products

Developing Products with High Environmental
Performance◆ 250 kW hydrogen co-firing power generator
Hydrogen co-firing power generation is a technologythat reduces the generation of carbon dioxide (CO2) bymixing hydrogen with fuel.
The 250 kW hydrogen co-firing power generator recently
developed using technology licensing from Komatsu andHitachi, Ltd. is able to, by raising the hydrogen cofiring ratio to 50%, reduce CO2 emissions by 50%
compared to when using only diesel oil as fuel.
By promoting the sale of this product going forward,
Denyo will contribute to the realization of ahydrogen-based society with an eye toward carbon
neutrality.

A hydrogen co-firing power generator
introduced by Komatsu’s Oyama Plant.

◆ Start of the development of a 100% hydrogenfueled power generator
Denyo started developing a dedicated hydrogengenerator equipped with an industrial hydrogen engine
pioneered by the Kubota Corporation, which eliminates
CO2 emissions by using only hydrogen as a fuel.
The development is making progress in a high-volume
zone for portable generators by using a 45kVA diesel
generator as a base. Denyo aims to release thisdedicated hydrogen generator in or after 2025.

Kubota 3.8L
Denyo 45kVA DedicatedHydrogen Engine*
Hydrogen Generator*※These two images are for illustrative purposes only.

12

Eco-Friendly Products

Conservation of biodiversity and ecosystem
Denyo has enhanced its lineup of models incorporating Eco Base, which prevents oil and otherleaks from the machine in unexpected situations.

Base can receive it.

If an oil or other leak of oil from themachine is prevented, it will reduce theburden on the environment and conserve「Eco Base」

biodiversity and ecosystems.

70

Eco Base Generators as a percentage ofthe yearly number of units sold (%)

the machine from leaking, because Eco

Number of models with Eco BaseIt prevents fuel, oil or coolant inside

60
50
40
30
20
10

0

Fiscal year
Number of models
Eco Base Generators ratio
Our customers have selected these models,appreciating the strong lineup of Eco Basemodels as the market becomes more aware of theenvironment.

13

Environmental Consciousness in the Product Life Cycle

Contents
After-Sales Service Initiatives…p.15

Training for the service staff ofdomestic group companies and rental
companies
Training sessions for the service
staffs of overseas subsidiaries andoverseas rental companies

14

Environmental Consciousness in the Product Life Cycle

After-Sales Service Initiatives
Approximately 90% of CO2 emissions in the life cycle of construction machinery is generated while theproducts 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 toensure users have the correct knowledge to operate our products safely.

Training in product knowledge(special arc welding training session)

Guidance on product maintenanceand use after delivery◆ Training for the service staff of domestic group companies and rental companies

Providing after-sales services requires a variety of skills and knowledge.
We have been working to establish a robust service network that consists of not only ourservice staff but the staffs of our group companies and rental companies.
15

Environmental Consciousness in the Product Life Cycle

After-Sales Service Initiatives

Operation of an installed welding machine(Singapore)

Introducing a customer to a power generator(Singapore)◆ Training sessions for the service staffs of overseas subsidiaries and overseas rental companies
Since our products are used in more than 150 countries worldwide, we have been working toenhance after-sales service programs overseas.
We will continue to provide training to the service staffs of overseas subsidiaries and rental
companies while also seeking to build trust-based relationships to increase sales.
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 awareness in thematerial procurement process17Eco-Friendly Production

Global Warming Prevention◆ Global Warming Prevention

Power consumption(thousand kWh)

Fuel consumption (GJ)

5,399

45,097

Denyo endeavors to prevent global warming throughinitiatives to reduce CO2 emissions generated by its
business activities. In FY2023, 4,305 tons of CO2 was

5,108

41,821emitted. Thanks to the improvement of production
efficiency achieved by new coating equipment thatbegan fully operating in FY2023, as well as energysaving measures, CO2 emissions decreased 11.7% fromthe level in the previous year and emissions in termsof sales volume declined 18.1%.

FY2022

FY2023

FY2022

FY2023

Change fromFY2022 −5.39％

Change fromFY2022 − 7.3％

CO2 emission afterconversion (t)Net Sales (Millions of yen)

Denyo will continue to reduce CO2 emissions.

4,876
t-CO2

Total CO2 Emissions and CO2 Emissions
Per Non-consolidated Sales

6,000
5,000

135

kg-CO2//Net
Sales

FY2022

141
116

107

118

127
104

4,000
3,000
2,000

4,762 4,956 4,425 4,407 4,375 4,876 4,305

1,000

FY2023

Change fromFY2022− 11.7％

38,212
FY2022

41,170
FY2023

Change fromFY2022 +7.7％

CO2 emissions (kg) / Nonconsolidated sales(Millions of yen)

127

0

4,305

104

2017 2018 2019 2020 2021 2022 2023
(t-CO2)(t-CO2)

Fiscal year
(kg-CO2/売上高）(kg-CO2/Net Sales)

FY2022

FY2023

Change fromFY2022− 18.1％18

Eco-Friendly Production

Formation of a Recycling-based Society◆ Energy Consumption reduction
The volume of crude oil equivalent energy used per output in FY 2023 was 84.5 L/million yen, which
is a decrease of 10.8 L/million yen from the level in the previous year. This reflected theimprovement of production efficiency due to the new coating equipment, as well as a decrease in LPG
and electricity consumption due to energy saving measures.
We will continue working to improve by increasing the efficiency of production equipment operations.
Breakdown of Energy Consumption(Crude Oil Equivalent)

Diesel5.8%

Kerosene
1.8%
Gasoline
0.3%

Fuel oil
13.3%
LPG
24.2%

Electircity
54.6%

Energy Consumption and Crude Oil Equivalent
per output
ｋＬ
L/Million Yen
3,000
95.3
2,500

使
用
エ 2,000
ネル
ギ 1,500ー
量 1,000

81.1 86.1

75.8

75.7

84.5

85.2

1,922 2,008 1,934 2,012 2,104

2,515 2,378

原
油
換
算
／
生
産
高

500
0
2017

2018

2019

2020

2021

2022

2023

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 FY2023, our solid waste per output was 8.0 kg/million yen, down by approximately 0.4
kg/million yen compared to the previous year.
We are also working toward to implement initiatives to reduce a certain amount or more of Solid
Waste stably.
waste acid
1.1%
Waste oil
9.9%
Plastic waste

12.9%

ｔ

Alkali waste scrap metal
1.0%
0.1%

Amount of Solid waste and Solid waste
kg/Million Yen
per output

350
300

Sludge

10.9

10.4
8.9

9.1

9.4

8.4

8.0

250

46.7%
廃
棄
物
量

200
150

257

241

227

240

232

221

226

2017

2018

2019

2020

2021

2022

2023

100

Wood chips
28.3%

廃
棄
物
量
／
生
産
高

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

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

20

Eco-Friendly Production

Formation of a Recycling-based Society◆ 3Rs Activities

ＲｅｃｙｃｌｅIn recent years, there have been problems with

The wood chips generated in the production

the depletion of resources such as petroleum,process were all recycled. 45% of sludge,

which are essential for our daily lives, andwaste plastics, and waste alkali was recycled

the shortage of final disposal sites foras cement materials.

garbage. The importance of 3Rs (Reduce, Reuse,

This resulted in recycling of approximately

Recycle) has been increasing.

127 tons of waste, which is 57% of the total,

Denyo implements a range of initiatives to

224 tons of waste, as new raw materials inmake effective use of limited resources and

FY2023.

minimize the impact on the environment. 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 by companies
that use wooden pallets, through which 2,035
wooden pallets were recycled in FY2023.
This resulted in a waste reduction of
approximately 35 t.

wooden pallets

iron pallets
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 ortransferred off-site with solid waste.
Amountreleased to theatmosphere

Amount oftransfer(A) Xylene

3.2

0.2

(B) Toluene

2.0

0.3

8.0

(C) Ethyl benzene

0.8

0.2

6.0

(D) Methylene chloride

1.6

5.6

4.0

(E) Tetrahydromethyl
phtalicanhydride

0.1

5.1

2.0
0.0

Substance(F) Syrene

5.7

0.0

(G) 1,2,4-trimethylbenzene

0.1

0.0

t
10.0

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

0.0
5.6

0.2
3.2

(A)

0.3
2.0

(B)

5.1
5.7

0.2
0.8

1.6

(C)

(D)

0.0
0.1

0.1

(E)

(F)

(G)

Amount of release
Amount of transfer◆ Environmental awareness in the material procurement process
Denyo requested that its parts and materials suppliers and contractors consider the environment intheir management of chemical substances and in other areas of their businesses. These initiatives,
which are summarized in the Denyo Group Green Procurement Guidelines, are being implemented now.
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
Introduction of the MIRAIIntroduction of solar power generating
facilities at a new service site

Community contribution activities…p.26

Participation in cleaning activities
Participation in anti-crime patrols

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 theheadquarters building since 2012. Roof greening canreduce temperature rise 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 the dry summer air

well. In addition, approximately 20 varieties, mainly
blooming plants, flourish throughout the year so that

The Fukui plant employs a method thatthe four seasons can be sensed, and you can feelcollects treated drain water in an on-refreshed. The area is used by many employees to relax.

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, therisk of releasing contaminated water directly
into the river is minimized.

24

Environmental conservation & community contribution activities

Environmental conservation activities◆ Introduction of the MIRAIIn May 2022, we introduced the MIRAI, a hydrogen-◆ Introduction of solar power generating
facilities at a new service site

powered fuel cell electric vehicle, to the public
for the first time.
The MIRAI, which does not emit CO2 when running, isequipped with an air cleaner featuring enhanced air
purifying functionality. Specifically, it filters
air that it takes in and emits purified air, a dust
removing feature and a chemical filter that reduces
the generation of PM 2.5 by removing chemical
substances. Due to these features, it is considered
an eco-friendly vehicle.
Denyo will continue to deepen its knowledge ofWe established Service Center Kanto in Sakura City,

hydrogen-related products, using these products to

Chiba as an East Japan base for large equipment

work towards the realization of a hydrogen society

maintenance. This facility began operating in March,2023.
To facilitate initiatives for decarbonization, we
installed solar power generating equipment on therooftop of the maintenance factory. The equipment iscapable of providing all of the electricity used by
the office.
We will continue to actively implement capital
investments with an eye toward carbon neutrality.

25

Environmental conservation & community contribution activities

Community contribution activities◆ Participation in cleaning activities◆ Participation in anti-crime patrols
An anti-crime patrol was carried out in December

2022 by the Fujimi Industrial Park Industrial
Association in Saitama, where our Laboratory &Training Center is located. As part of regional
contribution efforts, the association conducts
the patrol at the end of every year. Two of ouremployees participated in the 2022 patrol.

Denyo will strive to contribute to local anticrime activities by continuing to participate inactivities like this every year while
simultaneously strengthening relationships withneighboring companies and residents.
Denyo has been actively participating incleaning and other activities organized byan association based in the Konan
Industrial Complex where the Shiga Plant islocated.

We will continue to participate in cleaning
activities like these to make sure thateach employee is always aware of theimportance of environmental conservation.

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/