Harmony with the environment
Environmental management
Reducing our environmental footprint
Managing information on chemical substances

12CSR REPORT 2020

Environmental management

INOAC respects the natural environment of our irreplaceable
earth and contributes to realizing an affluent society that isenvironment and environment-friendly corporate activities.

Environmental policy(3) We work on resource conservation, waste reduction and recycling tocontribute to a recycling-oriented society.

environmental activities under the direction of the Committee on Environment. We have organized specific section committees to handle industrialwaste and energy saving, and we coordinate environmental management through these committees while seeking further improvements inmitigating our environmental impact. As we strengthen the connection between environmental management and our main business in managing
our objectives, we are also supporting the appropriate efforts where changes are taking place, such as newly built business locations, buildings, andproduction lines.

■ Environmental Preservation Promotion System
Environmental
Preservation
Promotion
SystemTop
management

ChairmanCommittee on
Waste Reduction

Person Responsible forEnvironmental Management

Committee on EnvironmentChairman

Committee on Energy Saving(Energy Management Supervisor)

Committees onWaste Reduction (by section)(Office) Committee on

Environment(Office) Committee on

Environmental
improvement
activities at each
workplace

Energy Saving

Internal environmental audits

External environmental examinations

We implement internal environmental audits to check theWe ask the Japan Quality Assurance Organization (JQA), an external certification
body, to conduct examinations to check if our environmental management

The audit team consists of two to three employees who havesystem is functioning properly in accordance with ISO 14001:2015.

completed the auditor training prescribed by the company.

In FY 2019 examinations were conducted at the Jinno R&D Center (AichiThe team checks if the environmental management system isPrefecture) and Hanyu Plant (Saitama Prefecture) along with change reviews for(7) We contribute to establishing asustainable society through local
environmental preservation work
as good corporate citizens.

being properly operated, maintained and improved. We create

expanding the scope of activities. No areas were found to be in need ofaudit guidance and hold advance workshops for auditors atimprovement as a result, and the auditors determined that the system is being

some locations in order to improve the quality of the audits.

maintained. As a general opinion, they pointed out the need to improve thecapabilities of each location as the applicable scope of the system is expanding
year by year.

13

CSR REPORT 2020

Governance & compliance

operational state of our environmental management system.

(6) We engage in environmental management, educate employees about
the environment, implement environmental audits, and continue toimprove.

Supply chain management(5) We actively develop products with less environmental impact,
contributing to the conservation of nature throughout the life cyclesof the products.

Producing an employee-friendly
workplace(4) We properly manage chemicals that could impact the environmentand seek to preserve our environment by reducing risk.

Communication with society(2) We work to reduce CO2 emissions such as by saving energy, to help
prevent global warming

management related to the environment, under the direct control of top management. In addition, the company as a whole also engages in

Improving value(1) We comply with environment-related laws, regulations, and otherrequirements, and engage in business activities that society can trust.

In order to engage in environmental activities in an organized fashion, the Person Responsible for Environmental Management implements integrated

Harmony with the environment

comfortable to live in through technology harmonized with ourEnvironmental management system

Feature story

Environmental vision

Company profile

Harmony withthe environment

Company profile

Environmental management

Harmony withthe environment

Compliance with environmental laws and regulations

Reduce energy
consumption

Factory-related

Office-related

Reduce waste
Office-related

Intensity (CO2 emission/production sum) Intensity
0.612 or less
0.578
CO2 emissions
59,563 t-CO2 (2018 result)CO2 emissions
212,993 kg-CO2 or less

CO2 emissions
322,345 kg-CO2

Measured units (CO2 treated amount/production sum) 0.0607 or less

Measured units
0.0708Treated amount
6,766 t (2018 result)

Treated amount 1,524 kg or lessenvironmental management system. In accordance withenvironmental preservation agreements with local
government, including environmental laws and regulations.

Noise, vibration & odor

Noise Regulation Act, Vibration Regulation Act,
Offensive Odor Control Act

Chemical substances

Resource conservation& recycling

Act on Confirmation, etc. of Release Amounts ofSpecific Chemical Substances in the Environmentand Promotion of Improvements to the Management
Thereof, Poisonous and Deleterious Substances
Control Act
Act on the Rational Use of Energy, Act on thePromotion of Sorted Collection and Recycling ofContainers and Packaging, Act on Rational Use andAppropriate Management of Fluorocarbons, Act on
Special Measures concerning Promotion of Proper
Treatment of PCB Wastes, Waste Management andPublic Cleansing Act

Disaster prevention

Fire Service Act, High Pressure Gas Safety Act

General & others

Factory Location Act, Act on Improvement ofPollution Prevention Systems in SpecifiedFactories, Radio Act* Local government ordinances are omitted

Training for emergencies
characteristics of each business facility, and periodicallyIssued

conduct training to prevent environmental pollution from fires
Target not reachedother facilities. General disaster training was held at the Anjo
Plant (Aichi Prefecture) on May 29 and November 26, 2019 andother training is also conducted according to thecharacteristics of each department, including training for

Kikuchi Plant, Ukiha Plant, Kitakyushu Plant

preventing outflows of raw materials and evacuation drills at

Techno Foam Japan Co., Ltd.

Head Office, Saitama Plant

night. In other facilities, training for emergencies is conducted

Higashi Nihon INOAC Co., Ltd.

* The Hanyu Plant (factory-related) and Jinno R&D Center (office-related) were added to the data collection range

on a preparatory basis.

Governance & compliance

Anjo Plant, Sakurai Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant,
Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Ukiha Plant, Head Office (Nagoya/Tokyo),
Osaka Branch, Hanyu Plant, Jinno R&D Centerand chemical leakage (oils, solvents, etc.) from equipment andKyushu INOAC Co., Ltd.

CSR REPORT 2020

Water Pollution Prevention Act, Purification
Tank Act, Sewerage Act, Soil Contamination
Countermeasures Act

business ethics, we will continue strictly adhering toINOAC Housing & Construction Materials Co., Ltd. Ibigawa Plant, Kofu Plant

Kyushu Color Foam Co., Ltd.

Water quality & soil

We identify accidents and emergencies according to the1,479 cases

Target reached14

related to noise and industrial waste treatment as part of ourTreated amount 1,133 kg* Business locations from which environment data is collected to summarize major activities are shown below.
INOAC Corporation

ensure that we properly comply with laws and regulations

Air Pollution Control Act, Automobile Nox PM
Law, Act on Special Measures against Dioxins

Supply chain management

Issue CSR reportand otherwise conduct environmental risk management toTreated amount
7,245 t (2019 result)Measured units ((amount emitted + amount transferred) Measured units/ production sum) 1.86 or less
2.05
Amount emitted + amount transferred
Amount emitted + amount transferred
209,635 kg (2019 result)
188,693 kg (2018 result)

Environmental
Cases of environmental improvements
improvement activities (total in entire company) 1,123 cases or more
Environmentalcommunication

CO2 emissions
59,149 t-CO2 (2019 result)assessment at each plant, we prevent environmental pollution

Air

Producing an employee-friendly
workplace

PRTR substances
reduction in releaseand transfer amounts

Resultdaily basis. Through monitoring, measurement, and■ Major environment-related laws andregulations pertaining to our businessCommunication with society

Factory-related

Achieved in FY 2019are relevant to our business activities, and manage them on aImproving value

Policies & targets in FY 2019

Initiative

At INOAC, we identify environmental laws and regulations thatHarmony with the environment

The results of INOAC’s major environmental efforts in FY 2019 are shown in the table below. In termsof reducing CO2 emissions that result from energy use, the Committee on Energy Saving continued totake the lead in various efforts, which enabled us to reach our targets. In terms of reducing waste
disposal, we moved forward in reducing emissions, including recycling and measures against defects.
However, we were unable to reach our targets because market conditions for resalable waste havebecome stricter each year. In terms of reducing emissions of substances subject to the Pollutant
Release and Transfer Register (PRTR) system, we were unable to reach our target by a small margin
because we transferred and closed several facilities, which resulted in the disposal of waste
substances.

Feature story

Summary of major activities in FY 2019

Anjo Plant: Firefighting team spraying waterReducing our environmental footprint

Reduce energy consumption

Company profileHarmony withthe environment

To help to prevent global warming, we have been engaged in efforts toreduce CO2 emissions by promoting energy saving. We made significant
revisions to our INOAC Energy Saving Standards, and made efforts toincluded thorough heat insulation measures, utilizing heat exhaust fromcompressors, eliminating air leakage, and applying heat shields to windows.
In 2019, our CO2 emissions resulting from energy use decreased a little—
approximately 10% in terms of intensity—compared to 2018.

■ Key efforts to promote energy saving in 2019
Installing inverters into cooling tower fansto reduce energy usage

Reducing energy usage by utilizing heat exhaustfrom compressors to heat rooms

Curtaining off areas of large workspaces
to improve the efficiency of air conditioning

Conducting air leakage patrols and eliminating air leakages
at each business location

Switching to LEDs for fluorescent lights andusing individual ON/OFF pull switches to save energy

Lining windows with INOAC’s heat insulation sheet,
CELL SHADE

Installing demand meters and visualizing demand
as a measure to address peak energy usaget59,282

60,20959,56359,149

2016

2017

2018

2019

Producing an employee-friendly
workplace

70,00060,00050,00040,00030,00020,00010,0000Communication with society■ Energy use (CO2 emission (t-CO2))

Year
Utilizing heat exhaust from compressors

Curtaining off areas of workspaces■ Energy use intensity (CO2 emission (t-CO2)/production sum (million yen))

2016

CSR REPORT 2020

0.710

2017

0.644

2018

■ Other efforts to prevent global warming
0.578

2019

YearINOAC is working on preventing global warming from othermodal shift to railway and maritime transport, and consolidation ofperspectives as well. During the summer, we hold our Summer

distribution bases. Furthermore, we have installed and are operating

Eco-style Campaign to educate our employees on how to savesolar power generation equipment (total installed capacity 5,417

energy, such as by promoting “cool biz” energy saving attire. We arekw/h) in unused spaces on 15 different production plant sites

also engaged in cooperative transport and deliveries (milk runs), a

throughout Japan.

Governance & compliance150.725

Supply chain management

Thermal insulation of worksites with THERMAX0.80.7
0.6
0.5
0.4
0.3
0.2
0 .1
0.0

Improving value

Insulating buildings using INOAC’s thermal insulation board,
THERMAX

Harmony with the environmentvisualize the progress of our energy-saving activities. Major activities in 2019

Feature story

Efforts

All Committees on Waste Reduction throughout our company take the leadin promoting waste reduction activities. These include cutting back onlosses by reducing defects and improving yield; expanding on the use ofpromoting sales of the  produced from material remnants (seearticle on the right for more details); and developing recycled materials.

t

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

amount of these substances we use, release and transfer, such as byimplementing alternatives to replace the use of 1-bromopropane as acleaning agent which we were able to fully accomplish. Conversely,from new coatings for automotive purposes, so output intensity remained
mostly level.

the life of the product. Products have longer replacement cycles and produce less
2016

2017

2018

2019

Year

waste thanks to longer product life and the use of unneeded material remnants that
had been treated as industrial waste.

2016

2017

2018

2019

Year

■ PRTR substance release and transfer amount (kg)kg

300,000
250,000

231,773

200,000

175,450 188,693

Chips (after being crushed)

209,635

150,000
100,000
50,0000

2016

2017

2018

2019

Year

■ PRTR substance release and transfer amount intensity(release and transfer amount (kg))/production sum (million yen))
2.836

2016

2.068

2.040

2.048

2017

2018

2019

Finished product ()Year* Business places from which environment data are collected on pages 15 and 16 are shown below.
◎ INOAC Corporation, Anjo Plant, Sakurai Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda 2nd Plant, Ohno Plant, Jinno Plant, Ukiha Plant, Head Office (Nagoya/Tokyo), Osaka Branch, Hanyu Plant, Jinno R&D Center◎ INOAC Housing & Construction Materials Co., Ltd./Ibigawa Plant, Kofu Plant + Kyushu INOAC Co., Ltd./Kikuchi Plant, Ukiha Plant, Kitakyushu Plant + Techno Foam Japan Co., Ltd./Head Office, Saitama Plant + Kyushu Color Foam Co., Ltd. + Higashi Nihon INOAC Co., Ltd.
16

CSR REPORT 2020

Governance & compliance4.03.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

Supply chain management

however, there were also increases in the use of such substances arisingin chip form, cushions exhibit less deformation over long-term use, thus extending

Producing an employee-friendly
workplaceused in coating processes. We are making efforts to cut back on thethat we produce, crushed into chips to be used as filling for cushions. With urethane

Communication with societymaterial for polyurethane foam as well as xylene and toluene which are

We are developing and manufacturing products with material remnants of urethane

Improving value

INOAC uses PRTR substances such as m-tolylene diisocyanate, a raw

6,766■ Measured units of waste treated(treated amount (t)/production sum (million yen))
0.08
0.073
0.071
0.067
0.07
0.061
0.06
0.05
0.04
0.03
0.02
0.01
0.00

Activities to reduce the use of environmentally hazardous
substances

4,988

5,685

7,245

Harmony with the environment

recycled materials, such as by separating and recycling used paper;

Development and manufacturing of the long cushion,a recycled product■ Waste treatment amount (t)Feature story

Activities to reduce waste

Company profile

Reducing our environmental footprint

Harmony withthe environment

Company profile

Managing information on chemical substances

Harmony withthe environment

Establishment and implementation of green procurement criteria

INOAC registers information on chemicals and reports it to our customers through IMDS*1, particularly in theWe ascertain what chemical substances are regulated by laws, regulations, and by our customers, based on which

automotive field which is our main field of business. We have a management system to obtain the necessary

we create our green procurement criteria - a list of those chemical substances that we should work to reduce. We

information via our supply chain and to register the information into IMDS.

present these criteria to suppliers and use them to obtain information on chemical substances contained in raw■ Information collection through IMDS in INOAC – reporting process and chemical management system
Component supplier
Products

INOAC

Communication about chemical substance management

In-house database
Products

Material supplier

Component parts
Materials

IMDS data

Chemicalsubstances

Automanufacturer,etc.

Materials

The Global Quality Assurance Division is a company-wide organization for environmental stewardship, whichorganizes and leads meetings for the chemical substance management sections of each department once every
two months. They review the green procurement criteria, check the management system and establish or change
its operating rules, and exchange opinions concerning the latest trends in chemical regulations, such as the REACH

Chemicalsubstances

maintain and improve management systems that are appropriate and reliable.
We also collect information and report it to our clients using the chemSHERPA format, which is widely used in theular meetings
Hold regindustrial world, especially the electrical machinery industry.

Procurement
sections
Automotive parts
sections
Urethane products
sections

Global Quality
Assurance Division

Plastic products
sections

The Automotive Division is creating an in-house database through which information on chemical substanceson chemical substances and client requirements which increase each year, while also helping to improve theefficiency and the reporting accuracy of information we register in IMDS and when examining the chemical

17

CSR REPORT 2020

ions
ement
audits at each of the sectGovernance & compliancesubstances, and centrally managed. This has allowed us to be certain of our compliance with laws and regulations

Impl

Maintain and improve
management systems

Supply chain management

Rubber products
sections

Creating an in-house database
contained in parts and materials purchased from suppliers is identified based on information about chemical

Producing an employee-friendly
workplace*1 IMDS (International Material Data System): A database for transmitting and obtaining information on materials and chemicals over theInternet for the automotive industry, which was originally developed to comply with the EU ELV Directive.
*2 chemSHERPA: A unified format to transmit information on chemicals contained in products in the supply chain, which the Ministry ofEconomy, Trade and Industry took the initiative in developing.

Communication with society

regulation and RoHS Directive. They also periodically audit the management system in each department to*2

substances contained in our products.

Improving value

Components list,
drawings, etc.

we revise these criteria once each year.

Harmony with the environment

materials to be purchased. We are also consistently monitoring the latest regulatory developments, based on whichFeature story

Promoting IMDS, chemSHERPA and more