Harmony with theenvironment

Environmental management

Environmental vision
INOAC respects the natural environment of ourirreplaceable earth and contributes to realizing anaffluent society that is comfortable to live in throughtechnology harmonized with our environment andenvironment-friendly corporate activities.

Environmental policy①We comply with environment-related laws and regulations
and other requirements, and implement businessactivities that society can trust.
②We promote reducing CO2 emissions such as by savingenergy to prevent global warming.
③We work on resource conservation, waste reduction andrecycling to contribute to a recycling-oriented society.
④We appropriately manage chemicals that may influence
the environment and reduce the risk to preserve ourenvironment.
⑤We actively develop products with less environmental
impacts, contributing to the conservation of nature
throughout the lifecycles of the products.
⑥We promote environmental management, educate
employees about the environment, implement
environmental audits and continue to improve.
⑦We contribute to establishinga sustainable society throughlocal environmental
preservation work as good
corporate citizens.

Environmental management system
In order to promote environmental activities in an organized fashion, the Person Responsible for Environmental
Management implements the integrated management of the environment under the direct control of topmanagement. In addition, the whole company also engages in environmental activities under the direction of theCommittee on Environment. We organized specific section committees to handle industrial waste and energy saving
to further improve the two areas and to promote environmental management in cooperation with each committee.
Furthermore, we are managing our objectives so that the activities conforming to ISO 14001:2015 that began in2017 are more closely integrated with our main business and will hopefully take deeper root in the company.
■ Environmental Preservation Promotion System

Environmental
Preservation
Promotion
SystemTopmanagement

ChairmanCommittee on
Waste Reduction

Person Responsible forEnvironmental Management

Committee on
Environment

Committee on Environment

ChairmanCommittee on
Energy Saving

Committee on Energy Saving(Energy Management Supervisor)

Internal environmental audits
We implement internal environmental audits tocheck the operational state of our environmental
management. The audit team consists of two tothree employees who have completed theauditor training prescribed by the company, andchecks if the environmental management system
is appropriately operated, maintained andimproved. Within these activities are also someinteractions with auditors from neighboring sites
and efforts to improve the quality of the audits
themselves that are conducted to reinforce
on-site checks.

(By sections)

Committee on Waste Reduction(Office)(Office)

Environmental
improvement
activities at
each workplace

External environmental examination
We ask the Japan Quality Assurance Organization (JQA),
which is an exter nal certification registration body, toimplement examinations to check if the environmental
management system is appropriately operating in accordancewith ISO 14001:2015.
In FY 2018, the audit expanded to include Higashi Nihon
INOAC Co., Ltd. No areas were found to be in need ofimprovement as a result, and the auditors determined that thesystem is being maintained. As a general opinion, theysuggested taking on the challenge of turning risks andopportunities into goals that conform to the work of eachindividual department.
INOAC CSR REPORT 201915

Harmony with theenvironment

Reducing the environmental burden 1［ Ef f o rts］

Reduction of energy consumption

Key efforts to promote energy saving in 2018

To help to prevent global warming, we have been engaged inefforts to reduce CO 2 emissions by promoting energy saving.
Specifically, we have been promoting the following activities:
reducing electricity use by equipping cooling towers with inverters
and placing shade films on windows; reducing the use of heavy oil
for controlling die temperatures by applying a thermal insulation
coating material to the die and preventing heat release; and taking
measures to insulate boiler room tanks and factory roofs. In 2018,CO 2 emissions resulting from energy use decreased a little—
approximately 9% in terms of intensity—compared to 2017.

Installing a low temperature drying room that uses waste
heat to reduce the amount of energy used for drying

Reducing electricity use by equipping cooling
towers with inverters

Reducing the use of heavy oil for controlling dietemperatures by applying a thermal insulation coating
material to the die and preventing heat release

Reducing the use of air conditioning electricity bylining windows with INOAC’s CELL SHADE

Measures to prevent air leakages by using ultrasonicair leakage detectors

Covering boiler room tanks with a thermal
insulation jacket

Insulating factory roofs using the cover construction
methodManaging LED illuminance with a control switch■ Energy use (CO2 emission (t-CO2))t70,00060,00050,00040,00030,00020,00010,000060,92359,28260,20959,563

2015

2016

2017

2018

year

■ Energy use intensity (CO2 emission (t-CO2)/production sum (million yen))

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0

0.749

2015

0.725

2016

0.710

2017

0.644

2018

Applying CELL SHADE to windows

Tank covered with a thermal insulation jacket

Die thermal insulation coating material

Other work for preventing global warming

year

INOAC is working on preventing global warming from otherperspectives too. During the summer, we hold a summer
eco-style campaign to educate our employees on how to saveenergy, such as by promoting cool biz, our energy saving attire
campaign. We also work on cooperative transportation andsmooth deliveries, a modal shift to railway and maritime

transport, and consolidation of distribution bases. In addition,
we participate in the CO2 Reduction and Lights Off Campaign
propelled by the Ministry of the Environment every year. In FY
2018, we implemented the campaign at 10 facilities, including
those of our group companies, on June 21 (summer solstice)and July 7 (Star Festival).
INOAC CSR REPORT 201917

Harmony with theenvironment

Reducing the environmental burden 2■ Waste treatment amountActivities to reduce waste
All Committees on Waste Reduction throughout our company
take the lead in promoting waste reduction activities. Theseinclude cutting back on losses by reducing defects andimproving yield; expanding on the use of recycled materials,
such as by separating and recycling used paper; andpromoting the sales of recycle mats produced by usingmaterial remnants (see article on the right for more details).
However, the market criteria for buying valued resources are
becoming stricter every year, which gives us no other choice
but to dispose of resources as industrial waste in many cases.

Activities to reduce the use of environmentallyhazardous substances

t

7,000
6,000
5,000
4,000
3,000
2,000
1,000
04,3322015* We completed a total switch-over from 1-bromopropane in May 2019.

2016

2017

6,766

2018

Development and sales promotion of therecycle mat “Pellemat”
year■ Waste treatment amount intensity(treated amount (t)/production sum (million yen))
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00

0.053

2015

0.061

2016

0.067

0.073

2017

2018year■ PRTR substance release and transfer amount (kg)kg

300,000

Pellemat is the name of a product we sell that is made using
the material remnants of rubber sponges produced at ourcompany. They are first crushed into chips and then hardened
into sheets. Since rubber sponges have an airy layer, the mat islightweight and demonstrates excellent thermal insulation in
addition to reasonable cushioning. Furthermore, the surface is
not slippery, which makes it the perfect work mat for factory
floors to alleviate foot fatigue while working. In this way, we arecontributing to waste reduction by utilizing what used to beunneeded material remnants that would have otherwise been
disposed of in landfills as industrial waste.

288,572
231,773

250,000
200,000

INOAC uses PRTR substances, such as tolylene diisocyanate(a raw material for polyurethane foam) as well as xylene andtoluene (used in coating processes). We are making efforts to
cut back on the amount of these substances we use, releaseand transfer, such as by promoting the use of an alternative to
1-bromopropane, which was continued to be used as acleaning agent. However, increases in production and thedemolition of old facilities resulted in having to dispose of waste
substances, raising the amount released and transferred byapproximately 8%. Output intensity remained mostly level.

4,988

5,685

150,000

175,450

188,6932017

2018

100,000
50,0000

2015

2016

year

Rubber sponge skins
Chips (after being crushed)(unneeded material remnants)

Product (after being formed)■ PRTR substance release and transfer amount intensity(release and transfer amount (kg))/production sum (million yen))
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

3.549
2.836
2.068

2.040
Examples of use: work mat(to reduce foot fatigue for standing work)

2015

2016

2017

2018

year

Business places from which environment data are collected on pages 17 and 18 are shown below.
◎INOAC CORPORATION/Anjo Plant, Sakurai Plant, Nanno Plant, Yana Plant, Ishimaki Plant, Ikeda Plant, Ikeda Second Plant, Ono Plant, Jinno Plant, Ukiha Plant, Headquarters (Nagoya/Tokyo), Osaka branch◎IINOAC Housing & Construction Materials Co., Ltd./Ibigawa Plant, Kofu Plant ◎Kyushu INOAC Co., Ltd./Kikuchi Plant, Ukiha Plant, Kita-Kyushu Plant ◎Techno Foam Japan Co., Ltd./Headquarters, Saitama Plant◎Kyushu Color Foam Co., Ltd. ◎Higashi Nihon INOAC Co., Ltd.
INOAC CSR REPORT 201918Harmony with theenvironment

Management of chemical substance information

Promoting IMDS, chemSHERPA and more

Establishment and execution of green procurement criteria

INOAC registers information on chemicals and reports it to our customers throughIMDS* 1 , especially in the automotive field, which is our main strength. We have amanagement system to obtain the necessary information via our supply chain and toregister the information into IMDS.
■ Information collection through IMDS in INOAC – reporting process and chemical management system
Component
supplier

INOAC

Components

Components list,
drawings, etc.

Communication about chemical substance management

IMDS data
Products
Composition parts
Materials

Material
supplier
Materials

In-house
database

In addition to listing chemical substances regulated by laws and regulations as well as ourcustomers, we also create a list of chemical substances that we should reduce after
understanding their content. We show the lists as green procurement criteria to suppliers
and use them to obtain information on chemical substances contained in raw materials tobe purchased.

Chemical
substances

Auto manufacturer,etc.

Chemical
substances

We are also prepared to collect information and report to our customers using thechemSHERPA* 2 format, which is widely used in the industrial world, especially theelectrical machinery industry. (The format was changed from the previously used JAMP
format to the above).

The Global Quality Assurance Division is a company-wide organization and leader
regarding environmental management. It brings together the chemical management
sections in each department once every two months for a meeting. They review the green
procurement criteria, check the management system, establish or change operation rules,and exchange opinions concerning the latest trends in chemical regulations, such as theREACH regulation and RoHS Directive. They also periodically audit the management
system in each department to maintain and improve an appropriate and reliable
management system.

*1 IMDS (International Material Data System): A database for transmitting and obtaining information on materials and chemicals
over the internet 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 of Economy, Trade and Industry took the initiative in developing.

Establishment of in-house database
The Automotive Division operates the in-house database through which information on
chemical substances contained in purchased parts and raw materials is managed in an
integrated manner. By updating this database and being able to flexibly adapt to changes
to legal regulations, we strive to improve quality, work efficiency and the reporting
accuracy of information we register in IMDS and when examining the chemicalsubstances contained in our products.

of regular meetings
Holding
Procurement
sections
Automotiveparts sections
Global Quality
Assurance
Division

Urethane products
sections
Rubber products
sections

Maintenance and improvementof the management system

Fintech & informationequipment sections

tions
Imple
mentation
he secof audits at each of t

INOAC CSR REPORT 201919