CSR Report 2018
Corporate
SocialResponsibility

Contents
3
4
7
9
10
12
14
17
19
21
22
24
25
26
31
33
37
40
43
45
47
51
53
56
57
60
72
73
76
78
79
82
86
88
90
90
95
97
98
99
101
103
104
107
111

CSR Report 2018-Editorial Policy, etc.
Top Message
Rinnai Group Profile
Corporate Mission and Vision
Rinnai Group CSR
The Rinnai Group’s Value Chain
Stakeholder Engagement
Identifying CSR Material Issues
Management Structure
Risk Management
Compliance
Information Security Policy
Outside Director’s Message
Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures
Special Issue 01:Energy-Efficient Water Heating Systems Mitigate Global Warming
Impact on the Environment of the Rinnai Group-Fiscal Year 2018
Global Warming Prevention
Waste and Water Resources
Pollution Prevention
Protecting Biodiversity
Environmental Education and Promotion of Awareness
Environmental Management
Basic Environmental Activities (“7E” Strategic Initiatives) and its Results
Environmental Accounting
Chronology of Environmental Activities at Rinnai
Supplemental Data: Major Site Report 2018
Certification Acquisition Status
Special Issue 02:Promoting a “Zero Defects” Policy to Ensure Customer Safety and Peace-of-Mind
Special Issue 02:Enhancing Maintenance and Inspection System of Long-term Use Products
Consumer Safety
Inquiry Response and Support System
Inspection and Repair Services
Communication with Customers
Communication with Business Partners
Communication with Employees
Personnel Training
Work-Life Balance
Industrial Relations and Human Rights
Fair and Diversified Employment
Occupational Health and Safety
Care for Health
External Acclaim and Recognition
Human Resource-and Personnel-Related Data
Communication with Local ragions and Communities
Communication with Shareholders and Investors

Major Site Report 2018
RinnaiOguchi Factory
Seto Factory
Akatsuki Factory
Asahi Factory

Domestic Group Companies
Yanagisawa Manufacturing Co., Ltd.
Rinnai Technica Co., Ltd.
GASTAR Co., Ltd.
RB Controls Co., Ltd.
Rinnai Precision Co., Ltd.
RT Engineering Co., Ltd.
Japan Ceramics Co., Ltd.
Noto Tech Co., Ltd.

2

CSR Report 2018

CSR Report 2018-Editorial Policy, etc.

CSR Report 2018-Editorial Policy, etc.
■ Editorial Policy
Rinnai puts out a CSR Report to convey to stakeholders management’s approach to CSR, to describe the activities undertaken
Groupwide, and to encourage a deeper understanding of the Group’s operations to as many people as possible.

■ Rinnai’s Activities
We produce an abridged version of our CSR Report in booklet form. Information not contained in the booklet—such as Company initiatives, specific details, and related data—is posted in the Company Information section of our website.

Highly important activities(stakeholder perspective)

Abridged version in
booklet form

CSR Report▶
◀Website(Company Information)
Comprehensive coverage ofGroup’s CSR activities

Highly important activities(Rinnai Group perspective)■ Scope
Rinnai Group (Rinnai Corporation and companies under the Rinnai Group umbrella in Japan and overseas)■ Reporting Period
This report focuses on events that occurred in fiscal 2017—April 1, 2017 to March 31, 2018—but also touches upon measures implemented and recent activities undertaken prior to fiscal 2017 as well as future business direction, targets, and plans.

■ Referenced Guidelines
GRI Standards, ISO 26000:2010
Environmental Reporting Guidelines (2012), issued by Japan’s Ministry of the Environment
Environmental Accounting Guidelines (2005), issued by Japan’s Ministry of the Environment■ Publication Schedule
July 2018 (Japanese version) Previous : August 2017, Next : July 2019 (planned)

3

CSR Report 2018

Top Message

Top Message
We contribute to sustainable societies by providing safe and comfortable lives topeople worldwide.
Rinnai has been promoting CSR and ESG management as the foundations of its business operations
and working toward the realization of better and more sustainable societies.
Since its founding in 1920, Rinnai
has contributed to creating
abundant livelihoods for all
people as an electrical appliancemanufacturer by providing
diverse products, such as kitchen
appliances, water heaters, andhome heaters, under our guiding
keywords of “safety and security,”“comfort,” and “environmental
responsibility.”
In recent years, goods such as
kitchen products, bathroom
heaters and dryers, and floor
heating systems have performed
favorably in Japan, and domestic
sales of high-efficiency gas water President Hiroyasu Naito
heaters have expanded. However, these markets are currently
shrinking somewhat, due to the impacts of market maturation and energy market deregulation. On the other
hand, we are promoting product development and Group collaboration overseas that makes use of our affiliates’
strengths and are conducting global development of common water heater and boiler models. Results are steadily
growing, particularly in China and the United States, where our instant gas water heaters are becoming widely recognized.
Against this backdrop, Rinnai is engaging in a variety of CSR activities in accordance with its goal of contributing to better
societies through its everyday business activities. In conducting these activities, we have identified two priority CSR
material areas: “environmental initiatives aimed at reducing energy consumption and CO 2 emissions” and “safety andpeace-of-mind initiatives to enhance consumer safety and product quality.”
Global awareness of environmental issues is rising, as can be seen through initiatives such as the Paris Accord andSDGs*1 . Through its own environmental initiatives, Rinnai aims to participate in new fields offering environmental solutions,such as ZEH*2, and contribute to the reduction of energy consumption and CO 2 emissions. We will accomplish this byoffering energy-saving products, including our hybrid water heater and heating system, ECO ONE, which combines ahigh-efficiency gas water heater and electric heat pump.
Through our safety and peace-of-mind initiatives, all our employees conduct manufacturing with quality as their highest
priority, under a set of common principles and high moral values. This style of manufacturing is in keeping with our fundamental concept, which states that “Quality is our destiny.”
We announced that we would conduct self-checks and part replacements on our bathroom heaters and dryers in February 2018. We believe that avoiding the release of products with defects, no matter how small, is the most fundamental
principle in our business. However, when flaws do occur, we strive to respond quickly and earnestly and are taking
prevention measures that extend beyond the scope of our organization so that customers feel safe and secure whenusing our products.
*1 SDGs: Sustainable Development Goals
The Sustainable Development Goals comprise 17 global goals and 169 targets adopted by the United Nations in September 2015.
*2 ZEH: Net Zero Energy HouseNet Zero Energy Houses balance income and expenditure for primary energy consumption by raising thermal insulation and energy-saving performance and utilizing renewable energy.

4CSR Report 2018

Top Message

Strengthening Environmental, Social, and Governance (ESG) Initiatives and Promoting ESG Management
Selected as Health and Productivity Company for Three Consecutive Years, Due to Efforts to
Improve Job Satisfaction and Health for All Employees
Recently, the keywords “SDGs” and “ESG*3” have been receiving attention as global trends. Under these circumstances,
the Government Pension Investment Fund (GPIF*4) has included Rinnai in all three of its ESG indexes and the Company
has also been selected as a Health and Productivity Company for three consecutive years.
Rinnai endeavors to create cheerful and satisfying work environments that allow its employees to feel motivated to
do their best when they wake up in the morning. We believe that being included in these lists shows that our ongoing
initiatives related to this goal are highly regarded. These initiatives include measures aimed at improving employee health,mental health care, diverse employment systems, and the promotion of women’s employment.
On the other hand, Rinnai has been steadily promoting measures connected with its corporate governance code and has
formulated and released a set of evaluation criteria and credentials for its independent outside directors. Our directors
have also conducted self-evaluations and have analyzed issues encountered when attempting to secure higher rates of
efficiency. We employ these measures in order to analyze and evaluate the effectiveness of our Board of Directors andour Audit & Supervisory Board. Rinnai feels that its Board of Directors is holding more fruitful discussions than ever before
thanks to the truly active participation of outside directors.
Furthermore, we will expand environmental activities with long-term numerical targets in terms of improving productlifecycles and offer products with high environmental performance. Rinnai will strongly reaffirm that these ESG initiatives
are the driving force behind medium- and long-improvement in corporate value and will intensify its focus on promoting
ESG management and increasing its brand value as a global company.

Global, Generation, Governance:
Aiming for Sustainable Growth by Advocating the “G-Shift 2020” Business Plan
We started our new three-year medium-term business plan, “G-Shift 2020,” in April 2018. The plan is focused on securing
sustainable growth for the Rinnai Group up until and beyond the 100th anniversary of its founding in 2020.
Three terms became keywords when we formulated our new medium-term business plan: “technological innovation for
the next generation,” “rapid progress toward becoming a global brand” with strengthened overseas growth strategies, andthe “ideal model of a company focused on the future up until 2030.” We consolidated these keywords into the “three Gs”:
global, generation, and governance. The Company is supporting G-Shift 2020 with the three Gs and is demonstrating its
determination to breathe new life into the Rinnai Group.
The Company is advancing five common themes (branding promotion, formulation and sharing of a long-term roadmap,
business field expansion, optimal allocation of management resources, and improvement of management and operational efficiency) and reforms to three processes (product planning processes, overseas business operational processes,
and just-in-time production processes) as specific themes for implementation. We are aiming for sales of ¥410.0 billion
and operating income of ¥42.0 billion in fiscal 2021.
Additionally, we established our new Business Planning Division out of the desire to offer products and services in new
areas that are not bound to conventional thinking, or perhaps even to change our very business model. Furthermore,
Rinnai is aiming to widely expand its possibilities by combining a new viewpoint, “health and lifestyles,” to its previous
viewpoint, “heat and lifestyles,” which had already been a point of strength for the Company.
In addition to China, North America, and Australia, demand for Rinnai’s products is growing in South America and invarious Asian countries. However, an extraordinary number of people in many overseas countries are forced to live underinconvenient circumstances in terms of heated water. Therefore, we believe that potential demand for comfort that our
products provide is anything but small. In particular, former Chairman Naito felt a strong sense of mission in our theme of“improving living standards overseas.” Moving forward, we will continue to contribute to sustainable societies and to theimprovement of life and culture by offering highly safe, convenient, and comfortable products with superior environmental
performance and delivering safe and comfortable livelihoods to people throughout the entire world.
*3 ESG : Environmental, Social, and GovernanceThree environmental, social and corporate governance-related elements deemed necessary for long-term corporate growth*4 GPIF : Government Pension Investment FundThe Government Pension Investment Fund possesses a larger volume of assets than any other pension fund in the world.

5

CSR Report 2018

Top Message

Medium-Term Business Plan “G-Shift 2020” (Global, Generation, Governance)
Medium- and Long-Term Vision“Three Gs” Shift to New Rinnai

Global Markets

Global shift means deploying the Group’s network topromote strategies and focus on developing Rinnai as aworld-renowned brand.

“Heat and Lifestyles”“Health and Lifestyles”

GlobalWe shall help improve people’s living standards
Contribute to the environment through our corebusiness activities (products and services)

Develop and provide original products and services
Rinnai Group
companies
shall shareand closely
coordinate
information

Combustion andheat utilization
technologies

Electronic
control
technologies

Fluid control
technologies

New
technologies

Recognize core technologies that
represent our strengths

Renewable Electricity
energyGas

Air｢G-Shift 2020｣

Rinnai Group
companies
shall shareand closely
coordinate
information

Water

Generation

Governance

Generation shift means shift to a newgeneration that breaks common
sense while inheriting the tradition
cultivated over 100 years.

Governance shift means building
management frameworks suited to thetimes and organizational structures thatencourage growth.

“G-Shift 2020” Medium-Term Business Plan

Five
Groupwide
Themes

1 . Branding promotion
2. Formulating and sharing ofa long-term roadmap
3. Business field expansion
4. Optimal allocation of management
resources
5. Improvement of management
and operational efficiency

Three
Process
Reforms

1 . Product planning processes
2. Overseas business operational
processes
3. Just-in-time production processes“G-Shift 2020” Medium-Term Business Plan Targets (April 2018–March 2021)

Net Sales
Overseas Sales Ratio
Operating Income
Operating Margin

Billions of yen

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

347.0
48.8%

360.0
50.0%

388.0
52.8%

410.0
54.9%

32.8
9.5%

36.0
10.0%

39.0
10.1%

42.0
10.2%

6

CSR Report 2018

Rinnai Group Profie

Rinnai Group Profile

Rinnai Group Profie
Rinnai Worldwide

Corporate Data (As of March 31, 2018)● Manufacturing and sales companies ◎ Sales companies ○ Other business □ Overseas representative office

Incorporated

September 1, 1920

Established

September 2, 1950

Paid-in capital

SOUTH KOREA● Rinnai Korea Corporation● Shanghai Rinnai Co., Ltd.

10,571 (consolidated), 3,665 (non-consolidated)
46 (domestic 15, overseas 31)◎ Rinnai Plus Corp.

● Shanghai RB Controls Co., Ltd.

◎

(From outside Japan): +81-52-361-8211● Mikuni RK Corporation

CHINA
Rinnai Italia s.r.l.

Telephone
Number of Group companies● RS Korea Ltd.

Rinnai UK Ltd.

2-26, Fukuzumi-cho, Nakagawa-ku,
Nagoya 454-0802, Japan

Number of employees● RB Korea Ltd.

◎¥6,459,746,974

Head Office◎ Shanghai Rinnai Thermo Energy Engineering Co., Ltd.
◎ Guangzhou Rinnai Gas and Electric Appliance Co., Ltd.

●Rinnai Corporation◎ Hainan Rinnai Minsheng Kitchen Appliances Sales Co., Ltd.

Tohoku, Kanto, Chubu, Kansai, and Kyushu
Rinnai Hong Kong Ltd.
◎□● Rinnai Taiwan Corporation

Rinnai (Malaysia) Sdn. Bhd.

●

P.T. Rinnai Indonesia

Kitchen appliances¥88.3 billion

Hokkaido, Kita-Tohoku, Sendai, Niigata,
Minami-Kanto, Tokai, Shizuoka,
Hokuriku, Nagano, Osaka, Keiji, Hyogo,
Chugoku, Shikoku, Fukuoka

Rinnai Holdings (Pacific)
Pte Ltd.

◎

Net Salesby Product(Year ended March 31, 2018)

Total

Tokyo, Kita-Kanto, Higashi-Kanto,
Rinnai Vietnam Co., Ltd.

◎

Rinnai America Corporation◎

・Domestic sales offices:

Dubai Representative Office
Rinnai (Thailand) Co., Ltd. ●Home heaters¥19.0 billion

Rinnai Canada Holdings Ltd.

・Branches:●

・Factories and related centers:● RT Engineering Co., Ltd.

South Korea¥34.7 billion● Rinnai Precision Co., Ltd.

● Techno Parts Co., Ltd.

Rinnai Brasil Heating Technology Ltd.
●◎ Rinnai Net Co., Ltd.

Seto Factory◎ RG Co., Ltd.

Asahi Factory● Brivis Climate Systems Pty Ltd.
○ Gas Appliance Services Corporation

Water heaters
and heating systems¥202.3 billion

Total

China
¥44.2 billion

347.0

¥

○ Rinnai Enterprises

Akatsuki Factorybillion(Year ended March 31, 2018)● Noto Tech Co., Ltd.

Oguchi Factory

347.0

¥

Net Salesby Region● Japan Ceramics Co., Ltd.

Rinnai Parts Center● Rinnai Australia Pty., Ltd.

● Gastar Co., Ltd.

● RB Controls Co., Ltd.

Integrated Logistics Center

AUSTRALIA● Rinnai Technica Co., Ltd.

Production and Technology
Development Center

Others ¥18.5 billion

Indonesia¥11.4 billion● Yanagisawa Manufacturing Co., Ltd.

Technology Development Center

Others ¥27.7 billion

Commercial-use equipment¥9.4 billion

◎

JAPAN

Australia¥23.4 billion

Rinnai New Zealand Ltd.
●billionUnited States¥27.7 billion

Japan¥186.7 billion

Water Heaters and Heating Systems

Kitchen AppliancesHome Heaters

Commercial-Use Equipment, Others

Water heaters, water heater with bath-filling systems,
water heater with heating systems, hybrid water heater with heating systems,
bathroom heater/dryer, floor heating systems, and others

Tabletop cookers, built-in hobs (stovetops), ovens,dishwashers, range hoods, rice cookers, andothersFan heaters, fanned flue heaters, infrared heaters, and others

Industrial ceramics machines, commercial-use ranges, commercial-use
cookers, Gas clothes dryers, components, and others

ECO ONE hybrid water heater with bath-fillingsystem, 50-liter model

DELICIA built-in gas hobs (stovetops)

Fanned flue heaters

JAPANElectric storage-type (tank-based)water heaters
AUSTRALIAJAPAN

Tabletop cookers with pilot safety shut-off
devices
VIETNAM

Duct-type air-conditioning and heating
systemUnited States

AUSTRALIA

Gas clothes dryers
JAPAN

SOUTH KOREA

For more information on our activities, please visit our website at https://www.rinnai.co.jp/en/corp/csr/report/.

78

CSR Report 2018

Corporate Mission and VisionCorporate Mission and VisionCorporate Mission and Vision
Fundamental Concept

Company Motto

Quality is our destiny
和 Harmony:
Develop personal character of the highest caliber

Based on our fundamental belief that “Quality is our destiny,”氣 Base your efforts on a consistent philosophy
Spirit:we serve as a comprehensive heat energy appliance

Sincerity:

manufacturer committed to creating safe, reassuring,

眞 Know the fundamentals and consider issues

prosperous, comfortable, and healthy lifestyles.

with precision and clarity

Rinnai’s Corporate Mission

Rinnai utilizes heating to provide society with a comfortable way of life.

Schematic Diagram of Company Ideals
The Philosophy that Rinnai positions
as the summit

Company
Motto
Rinnai
Corporate Mission
Rinnai Charter

Detailed regulations that each Rinnai group
executive and employee shall follow

The Charter which Company
Motto and Company Mission werebroken down into seven items

Rinnai Code of Conduct

Three Key Themes
Since its establishment, Rinnai has grown and developed through an
unshakable focus on three themes. Part and parcel of the Rinnai Spirit, these
themes are and always will be integral to our success.

Heat and
Lifestyles
Rinnai’s catchphrase—“Quality is ourdestiny”—epitomizes a corporate
obsession with quality. So it is only naturalthat we would keep production and othermonozukuri (manufacturing) efforts
in-house to sustain high-level standards.
This enables us to deliver safety andpeace of mind to our customers.

Quality

Contributing
to LocalCommunities

Rinnai’s corporate mission hinges on theuse of “heating” to provide society with“comfortable lifestyles.” Our strength is insophisticated heating technologies, andwe will utilize this capability to facilitate
the creation of pleasant living
environments.

At Rinnai, we firmly believe that contributing
to a better lifestyle culture in local
communities is vital to our role as a good
corporate citizen. Basic strategies for
expanding our presence abroad require thatsales and services are executed with local
conditions in mind and that manufacturing
takes place in the markets where theproducts will be sold.

9

CSR Report 2018

Rinnai Group CSR

Rinnai Group CSR■ Approach to CSR
The Rinnai Group’s corporate mission is to use heat to provide society with comfortable lifestyles. With this in mind,
we deliver heat-energy appliances with excellent features in terms of safety and peace of mind, comfort, and theenvironment. We seek to improve lifestyle cultures of people around the world and offer a better outlook for the planet.
The Group pursues CSR activities through core operations based on the three commitments it has emphasized since its
foundation—“heat and lifestyles,” “quality,” and “contributing to local communities”—complemented by “the environment,”
for a total of four key themes.
Heat and Lifestyles
We deploy our advanced heat-related technologies and know-how to develop products that people canuse in a safe, comfortable, and efficient manner. In this way, we help people lead abundant lifestyles.

Quality
We adhere to the fundamental concept that “Quality is our destiny.” To this end, we pursue a “zero defects”
objective when designing, making, and selling our products, to ensure they remain fault-free until they are
no longer used by the customer.

Contributing to Local
Communities
In principle, we focus on local production and local sales in advancing our overseas business. Our aim is tohelp improve the lives of local people around the world by delivering products and services that meet theclimates, lifestyle cultures, and customs of various nations and regions.

The Environment
By developing, manufacturing, and selling residential appliances, which are kitchen appliances, water
heaters and heating appliances, with exceptional energy efficiency.

■ Returning Added Value to All Stakeholders
Together with stakeholders, we will strive for continuous growth by returning the economic value obtained throughRinnai’s business activities to stakeholders, thus fostering sustained mutual advancement.
Government
Local
Communities

Customers

Sustainability

RinnaiGroup

We will contribute to therealization of a sustainable
society and planet as acomprehensive heat-energy

Business
Partners

Employees

appliance manufacturer.
Shareholders
Investors

10

CSR Report 2018

Rinnai Group CSR■ Quality Policy
Based on our fundamental concept of “Quality is our destiny,” our Group employees strive to improve design quality,
manufacturing quality, and sales quality in order to achieve our customer first Quality Policy.
Quality Policy
To provide products with satisfaction and a high level of safety to customers
Customer Orientation
・To offer products with safety and piece of mind
・To disseminate safe usage
・An enriched service body

■ Environmental Policy
For our environmental initiatives, we promote all-hands environmental activities with full participation based on anenvironmental action plan (”7E Strategic Initiatives”) aiming for its accomplishment in 2020, under the following basic
environmental philosophy.
Basic Philosophy on the Environment
Rinnai’s basic philosophy is to embrace environmental protection on a global scale and contribute to society throughthe pursuit of excellent, people- and planet-friendly technology, and product development, production, sales, andservice infused with a sense of humanity.
Environmental Slogan
Our actions are imbued by the wisdom of many and undertaken with due consideration to the sustainability of apeople- and earth-friendly environment.

■ Basic Environmental Activities (7E Strategic Initiatives)
Green Activities Involving All Employees in All Business Areas
1

Develop and provide environmentallyconscious products

2

Promote green procurement

3

Promote activities
with reduced
environmental impact

4

Sell environmentallyconscious
products;Encouragecustomers to be moreenvironmentally aware

5

Emphasize environmentallyconscious installation andrepair services

6

Promote activities with
reduced environmental impact
at our offices

7

Improvement of our employees’
environmental awareness andpromotion of social action
programs throughenvironmental education

E-Products(Products)
E-Service
E-Procurement (Installation(Procurement) and repair)
E-Factory(Factories)

E-Office(Offices)
E-Marketing(Sales)ac

E-Mind (Employees)tartivi B usin
al
tie s
e
m e nt e c
a s w hs s and enviro nc o r p o rat
e e l s of s a m e

7E Strategic Initiatives

11

CSR Report 2018

The Rinnai Group’s Value Chain

The Rinnai Group’s Value Chain
Environmental issues such as global warming and the depletion of resources cannot be solved by the efforts of one company
alone. We are striving to reduce our impact on the global environment throughout our entire value chain* by sharing value with all
our stakeholders, including customers and clients, without limiting ourselves to activities within our company group and by promoting our activities. We acknowledge the demands from society and the impact of our business activities on the global environment and that is why we conduct efforts with the environment in mind throughout all our operations.

* A string of business activities and value creation processes that companies conduct to offer customers value such as products and services
Demands andExpectations
from Society(Globally / Japan)

Handling procurement
risk through the supply
chain

INPUT

Main resources
consumed(raw materials and energy)

Rinnai’s Value Chain• Increased demand forheat-energy appliances
Water
Energymainly in the Asia region• Support for international • Ground water:
frameworks such as the269,397 m 3• Public water:
Paris Accord and otherenvironmental regula665,255 m 3
tions

Initiatives Rinnai conducts
through businessSupply chain management

Raw materials
Iron, copper, stainless steel,brass, aluminum, plastics,
rubber, etc.

OUTPUT

Rinnai’s environmental
impactCO 2 emissions

Procurement

816,828 t

CO 2 emissions

Procurement
Together with suppliers, we arepromoting improvement activities tomake the flow of products, from partsprocurement to commercialization,betterPursuit of environmental
performance andstreamlining of
manufacturing processes
Development

Development
and Manufacturing

Scope 1

Scope 240,313 t

67,977 t

Develop products with superior
environmental performance that meetthe climate and needs of the region
Manufacturing

Solid waste(Includes valuable substances)

28,664 t

Wastewater 881,174 m 3

We are pursuing efficient processes,
minimizing invested resources andenergy, and promoting activities that
contribute to emission regulations for
CO 2 , waste products, and chemical
substances.

Spread of environmentally friendly products
Sales

Provision of household
appliances that
contribute toenergy-efficient
homes such as Net Zero
Energy Houses

CO 2 emissions

EnergyWater

Sales, Logistics,
and Services

10,803 t

Strive to spread products that
contribute to energy-efficiency in thewater heater and heating fields
Logistics
We are promoting logisticalstreamlining
Services
Elevate the Rinnai brand with security
activities through a wealth of service
maintenance and inspections

12

CSR Report 2018

The Rinnai Group’s Value Chain
Proposal of reasonably
achievable ecologicallifestyles
Product Usage

Promotion of energy-efficiency in the “use stages”
with the largest amountof CO 2 emissions in the
product lifecycle

Measures for building
recycling societies

CO 2 emissions

Scope 3 (Category 11)

EnergyWater
Product Usage

11,204,402 t(Concerns emissions fromJapanese water heaters)

CO 2 emissions
Energy6,580 tWater

Disposal

We are teaching customers theenvironmental friendliness of our
products and promoting theirecological use through Companysponsored product events.
Proposal of sustainable, comfortable,
green lifestyles through use of energysaving products
Through various events, we willappeal to all of our end users theenvironmental performance of our
products and how to use them with theenvironment in mind.

Promotion ofenvironmentallyconscious design
DisposalApplication of design for the environment, e. g., to make products easy
to disassemble in accordance withproduct assessment standards

Rinnai’s estimates based on the “Basic Guidelines for Calculating Green House Emissions Through the Supply Chain”[Target scope] Rinnai Corporation and consolidated subsidiaries (development / manufacturing), Rinnai Corporation (procurement / sales / logistics / services / product usage / disposal)[Target period] Domestic: Fiscal 2017 (April 2016-End of March 2017) Overseas: January 2017-End of December 2017
The value chain is the chain of business activities and processes undertaken by a company to generate and deliver value (products and services) to the customer. Indicators marked with a check have received,
a third-party guarantee from Lloyd s Register Quality Assurance Ltd. (LRQA).

13

CSR Report 2018

Stakeholder Engagement

Stakeholder Engagement■ Stakeholder Engagement
Throughout the Rinnai Group, we place great importance on communication with customers, employees, shareholders, investors,
business partners, local communities, and the general public.
We take on board comments and requests from our customers through channels such as exhibitions and our online shopping site,
and use them to help us improve our
products and services. We exchange
information with our business partners
Customers(Users)on subjects such as management(Distributors)
policies and products, and also work
together to improve management
through activities such as our Level-Up
Employees
Workshop and Shipping SubcommitCommunication with Our Stakeholderstee.
We will continue to engage in communication with all our shareholders on adaily basis, so that we can evolve ourbusiness activities and improve levelsof satisfaction even further in the future.

Shareholders
Investors

Business
Partners

Community,
Society(including
government)

Main
Stakeholders

Means ofCommunication

・Customer Center・Exhibitions / Other
events・After-sales services(inspection and repairs)
・Official online shoppingsite “R.STYLE”
・New Year meetings(Policy presentations)C u s t o m e r s ・New product workshops
utilizing internal facilities(Users)(Distributors) ・Corporate site
・Product information site

Opinions and Issues Raised and Our Responses
・We conscientiously answer a range of inquiries from customers
concerning products and parts, and post frequently asked questions (FAQ) on our website.
・Customers who have had repairs done are surveyed to gauge
their satisfaction with elements of service such as “ease of getting
through by phone” and “politeness of operators.” Details of responses are then fed back to operators so that they can remedy
unsatisfactory areas.
・From November 2017, we will start sending out legal inspection
notifications for household products, in addition to legal inspection
notifications for commercial products, which have already been
implemented. We also send notifications for “safety inspections”
in accordance with the “long-term use product safety inspection
system” for products other than those subject to legal inspections,and strive to improve customers’ security.

14

CSR Report 2018

Stakeholder Engagement

・Rinnai conducts web-based questionnaires (customer satisfaction
surveys) with customers who make purchases on our website.
These questionnaires concern purchased products, service window support, the sales site itself, and product delivery and packaging. The Company provides all related offices with feedback
regarding questionnaire results and conducts initiatives to improveissues related to responses that indicate low customer satisfaction.
・We are expanding Hot.Lab, our hands-on product induction facility,
and working to increase customer knowledge and understanding
regarding our merchandise.
・Rinnai is working to encourage communication between superiors
and subordinates through measures such as requiring personal
interviews with employees at each step of childcare-related leave,
including during maternity leave before and after childbirth, childcare leave, and after returning to work.

Employees

・To respond to requests from employees in all departments, the・Individual discussions
Company regularly holds conferences between its Personnel
・Workplace meetings
Department and employee unions, the results of which are used to・Training / Events
revise internal systems and improve work environments.
・Corporate ethics advisory service
・Rinnai conducts factual surveys regarding nursing care with about
・ In-house intranet / In1,200 employees working in development or factory departments
house newsletterand holds nursing care seminars for interested parties. Moving
・ Information exchange
forward, the Company will continue to inform and provide support
with employee unions
for employees anxious about nursing care.
・Since 2005, we have been operating a corporate ethics advisory service. This internal reporting system enables employees toreport fraudulent activity and violations of laws, ordinances, orinternal regulations in cases when consulting with their superiors
is problematic.

Shareholders
Investors

Business
Partners

・We carefully explain our “Evolution and Succession 2017”
medium-term business plan at results briefings and individual IR
・ General shareholders’meetings, and endeavor to improve understanding of the Group’s
meetings
management policy and strategy.
・Results briefings
・We regularly organize facility and factory tours for institutional
・Factory tours
investors to give them a better understanding of our strengths and・ Investor relations (IR)competitive advantages, and to outline our approach to manufacmeetings
turing and technical capabilities.
・Questionnaires
・We hold results briefings and individual IR meetings to answer
inquiries and explain our underlying thinking on dividend policy.
・Rinnai responds to inquiries from suppliers regarding its production
system and trends as needed, informing them of important infor・New Year meetings
mation, such as changes in production plans, through the commu・ Policy presentations for
nication tool R-LINE. We also explain this information through our
suppliers
Supplier Liaison Group meetings.
・Level-Up Workshop
・ Online communication ・Responding to requests from suppliers for advice on, e.g., improvtool, “R-LINE”
ing quality and productivity, we organize Level-Up workshops andhelp suppliers to make improvements in the workplace.

15

CSR Report 2018

Community,
Society(including
government)

Stakeholder Engagement

・We are asked by people living near our plants and offices to assist
・Participation in local /with events and festivals aimed at enlivening their communities,
community development
and we actively assist and take part in such events as a member ofactivities
these communities.
・Support for culturalactivities and the arts
・We assist in cultural and artistic events in the Nakagawa Canal area
and other regions, and provide ongoing support for exchanges and・Employee volunteer
activities
creative activities at the grassroots level.
・Support for extracur・ In response to requests for assistance with community learning
ricular school activities
and school education, we organize events such as seminars on the(factory tours, etc.)
history of manufacturing at Rinnai and factory tours for schoolchildren.

CSR Report 2017 Questionnaire Results n ＝ 342
Sections of Interest (Printed Edition) (Multiple Answers / Top 10)
Evironmental Initiatives
Initiatives for Safety and Peace of Mind
Rinnai Group Business
Value Chains and Their Impacts on the Environment
Message from the Chairman
Rinnai Group CSR
Message from the President
Corporate Mission and Vision
Communication with Our Stakeholders
Identifying CSR Material Issues
0Comprehensiveness of Report
Very poor
1%
Average5%

Extremely40%

Fairly good
9%

Very good
45%

10

20

30

40

50

60
70
(Number of answers)

Overall Opinion of CSR Practice
Very poor
1%
Average4%

Extremely46%

Fairly good
10%

Very good
39%

Selected Questionnaire Feedback

・I realized that it is extremely important that Rinnai manufactures energy-saving water heaters because one third of householdprimary energy consumption comes from hot water. (Male, 50s, customer and individual consumer)
・I want Rinnai to continue conducting development in line with the contents of this report while prioritizing safety and security sothat we do not leave behind a burden for the next generation. (Female, 40s, customer and individual consumer)
・Personally, I think this year’s top keywords for Rinnai are “quality control.” I want Rinnai to focus on quality control so that people
can use their products safely and securely throughout the world. This is because I think that thorough quality control is essential
for CSR activities. I pray for Rinnai’s continued growth in the future. (Male, 20s, customer and individual consumer)
・I felt hopeful that Rinnai’s reduced working hour system and childcare support would contribute to creating comfortable working
environments for women. (Female, 50s, customer and individual consumer)

16

CSR Report 2018

Identifying CSR Material Issues

Identifying CSR Material Issues
We actively take on board the opinions and expectations of

We make every effort to identify social challenges relating to thevarious stakeholders and incorporate them into our CSR

Rinnai Group, through day-to-day communication activities withactivities, in the interests of the continued development of bothstakeholders coupled with study and analysis of applicable

the Rinnai Group and all its stakeholders. As well as enhancing

guidelines and socially responsible investment (SRI) indices. We

our corporate value, we believe that ongoing activities such asalso identify CSR material issues in relation to our management

these help our stakeholders to grow and contribute to thestrategies, revolving primarily around corporate planning divisions.

creation of a more sustainable society.

Identification
Process● Conduct stakeholder questionnaire withthe aim of reviewing our CSR report● Ascertain matters of interest to
stakeholders based on questionnaire
results and opinions expressed● Analyze trends such as changing perspectives
on ESG and matters of public interest(Dow Jones Sustainability Indices,
FTSE4Good Index Series, Toyo Keizai
Corporate Social Responsibility Survey, etc.)● Determine social challenges relating to the Rinnai
Group, and analyze their level of importance tostakeholders and Rinnai● Examine consistency with Rinnai management
strategy and identify CSR material issues

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Outline existingengagement

Review CSR report,(previous year s
version)Analyze international
standards andguidelines

Analyze ESG indicesand questionnaires

Study othercompanies

Determine social
challenges and identify
material issues● Outline communication activities withstakeholders● Ascertain opinions and matters of interest
to individual stakeholders● Study CSR management practices, key
stakeholders, and material issues● Analyze methods of reporting CSR activities● Analyze CSR-related international
standards and sustainability reporting
guidelines (ISO 26000, GRI G4 Guidelines,
etc.)

Determining and Identifying CSR Material Issues
We have determined social challenges relating to the Rinnai Group, analyzed their level of importance to stakeholders and theGroup, and identified CSR material issues.
As a change from the previous year, we have increased the importance level of the item “Work-life balance” to stakeholders
and the Rinnai Group by one level each.

Classification of CSR Issues
Very high◇ Customer issues□ Other issues□ Communicating with suppliers□ Investing in local communities○ Waste○ Harmful chemicals○ Drainage□ Industrial relations□ Work-life balance○ Energy consumption○ CO2 emissions◇ Consumer safety◇ Improving quality○ Biodiversity□ Child labor / forced labor□ Stable procurement□ Support for cultural activities andthe arts○ Conserving resources□ Occupational health and safety□ Protecting privacy◇ Repair and inspection services□ Wages and welfare□ IR communication activities□ Fair trade□ Diversity□ Support for school education /vocational training□ Preventing corruption○ Transport and transfer◇ Enhancing Customer Center
services□ Training and education□ Dividend policy□ Surveying and evaluating suppliers◇ Marketing communication〈〉
Importance to stakeholders
High
High

○ Environmental issues〈Importance to the Rinnai Group〉

Very high17

CSR Report 2018

Environmental Initiatives
Material Issues

Identifying CSR Material Issues

Deep Involvement with SDGs

Main Target Indicators

1.60 million tons
6.04 million tons
2020 target

Energy consumption

Amount it contributes

CO2 emissions

emissions by using

Social Challenges

to reducing CO2
the product2030 target

Rinnai’s Initiatives

CO2

Target Area and Stakeholders

Roughly half of all energy consumed by Japanese

We intend to develop and encourage households toTarget area: Global

households is used for hot water and heating.

use water heaters and heating units with an emphasis(Main focus of initiatives: Japan)

Reducing energy consumption and CO2 emissions

on energy saving and environmental performance, inTarget stakeholders: Allin the hot water and heating sector is therefore a top priority.

an effort to reduce energy consumption and reduce
household CO2 emissions.

Initiatives Delivering Safety and Peace-of-Mind
Material Issues

Consumer safety
Improving quality
Social Challenges

Deep Involvement with SDGs

Main Target Indicators

Number of defects that have led to
product recall announcements

Rinnai’s Initiatives

0 casesTarget Area and Stakeholders

Reducing kitchen fires and fatal bathroom accidents

We are working towards achieving “zero defects” byTarget area: Global

is naturally an important priority alongsideeliminating defects at every stage of the productTarget stakeholders: Customers

eliminating accidents resulting from product defects.

lifecycle—from development, production, and salethrough to obsolescence—and pursue a range ofactivities to publicize information and raise awarenessof preventing accidents in the home.

The Rinnai Group will contribute to the achievement of SDGs through all of its corporate activities.

18

CSR Report 2018

Management StructureManagement Structure■ Basic Policy
To hone the Group’s competitive edge and sustain improvement in corporate value, Rinnai has made efforts to augment
corporate governance practices and raise its profile as a management priority. We aim to conduct highly transparent
management by providing swift and precise disclosure of wide-ranging information to all of our diverse stakeholders while
endeavoring to enhance the functionality of internal bodies, such as our Board of Directors and Audit & Supervisory Board.

■ Basic Principles
01

Rinnai views reinforcement and enhancement of corporate governance as important management priorities
from the perspectives of strengthening competitiveness and continually improving corporate value of the Group.

02

Rinnai takes care to preserve equality of shareholders by ensuring that their rights are essentially protected
and that those rights can be exercised smoothly.

03

Rinnai views appropriate cooperation with all stakeholders as essential to improving corporate value and,through its business activities, strives for its own growth together with social and economic prosperity.

04

Rinnai emphasizes highly transparent management through the swift and appropriate disclosure ofwide-ranging information while stepping up efforts to ensure that disclosure of Company information is basedon legal regulations.

05

Rinnai's Board of Directors recognizes its fiduciary responsibilities to shareholders and strives to continually
improve corporate value though transparent, fair, swift, and resolute decision-making.

06

Rinnai encourages mutual communication through dialogue with shareholders and other stakeholders inorder to build relationships of trust with those stakeholders.

■ Basic Principles of the Internal Control System
Seeking to reinforce our management system and fulfill our social responsibilities, we established an internal control
system with the following aims:(1) To enhance the stability and efficiency of business operations;(2) To ensure the reliability of financial reports;(3) To comply with laws and regulations affecting business operations and internal regulations;(4) To Safeguard of assets
Rinnai is in the process of establishing an internal control system as a means of ensuring proper risk management,compliance, and internal auditing.

■ Audit & Supervisory System
There are four Audit & Supervisory Board member, two of whom are outside Audit & Supervisory Board members. Audit& Supervisory Board members attend Board of Directors, meetings and other important meetings, where they monitor
directors’ execution of their duties, the development of the internal control system, and the overall performance of duties.
In addition, an external account auditor audits the Company’s accounts and verifies from a third-party perspective thelegality of the internal control system as it relates to financial accounts.

■ Corporate Governance CodeJapan's Corporate Governance Code went into force in June 2015. Since then, committed to implementing all of theCode's principles, Rinnai has promoted efforts to deal with principles not adequately addressed to date, as well as
principles that have been partially addressed but require reassessment. Rinnai will continue in-house efforts to address
two remaining principles: “Balance of cash and stock as remuneration for directors” and “Involvement of outside directors

19

CSR Report 2018

Management Structure

in nomination and remuneration matters.” Rinnai will step up efforts to improve corporate value by implementing all of theCode's principles while further strengthening corporate governance.

■ Board of Directors
The Board of Directors consists of seven members and meets once a month in principle. The Board makes decisions on
major management issues and also oversees business execution by Board members. Some directors below Chairman
level are also corporate officers, whose role is to pass on the decisions of the Board to the head executives of the relevant
divisions. The Board checks on business operations and discusses issues at general business meetings and at otherbusiness meetings held on a quarterly basis.

■ Executive Structure
We have introduced an executive officer system in order to create a flexible management structure capable of responding
swiftly to changes in the business environment. Some directors, from the President down, serve concurrently as executive
officers, and their role is to convey the details of decisions made by the Board of Directors to the managers of the divisions responsible so that they can be implemented. Quarterly Company-wide management meetings and individual management
meetings are also held to confirm how business is progressing and to share information on the challenges faced.

■ Director Compensation
The limits of compensation for directors and auditors are determined in accordance with the resolution of the general
meeting of shareholders. Moreover, Rinnai’s internal regulations stipulate fundamental matters related to directors’ compensations including the method of determination, revision, and reduction. Based on these, amounts of compensation for
directors are resolved at Board of Directors, meetings and amounts of compensation for Auditors are determined throughdeliberations by auditors. Directors are paid a fixed amount commensurate with assigned duties. Please note that Rinnai
terminated the retirement benefit system for directors, following approval of a proposal put forward at the general meetingof shareholders held on June 27, 2008.

Fiscal 2018 Remuneration and Allowances for Directors and Auditors
Position

Number of people

Total remuneration and allowances

Directors (Outside directors)

7 (2)¥285 million (14)Auditors (Outside auditors)

4 (2)¥44 million (10)

Total

11

¥329 million■ Information Disclosure
Rinnai’s internal regulations set out the system and procedures for the timely disclosure of important internal company
information, including information concerning subsidiaries. The Information Disclosure Committee deliberates the timely
disclosure of information and, when deemed necessary, makes that information public.

■ Corporate Governance Structure,
Shareholders Meeting
Election and dismissal
Cooperation

Election and dismissal

Audit & Supervisory Board

Accounting Auditor

Cooperation

Internal Control OfficeElection and dismissal

Audit

AdviceElection, dismissal,
and administration
Direction

Audit

Internal
Audit

Election, dismissal,
and administration

President

ReportManagement

Audit

Corporate Lawyer

Board of Directors

AdviceReportReportReportExecutive Officers
ReportRelated Committee

Corporate Ethics Committee
Risk Management Committee
Disclosure Committee
ReportEnvironment Management Committee and other
Direction

Management

Business Divisions

20

CSR Report 2018

Risk Management

Risk Management■ Risk Management Policy
As social structures become more complex, the risks faced by companies are becoming more diverse. As the Rinnai
Group continues to expand its business globally within this environment, we are committed to risk management in orderto ensure stable business activities that sustain the trust of customers and society as a whole.

■ Risk Management Promotion System
A Risk Management Committee made up mainly of executive officers and divisional heads and chaired by the president
meets regularly to identify key risks with the potential to impact our survival, credibility, business activities, and assets.
It also determines the divisions with primary responsibility for each risk, develops mechanisms to prevent them frommaterializing, rapidly resolves crises, minimizes any damage that may occur as a result, and prevents recurrences. The
committee works with all divisions and Group companies to head off risks and enhance risk response capabilities.

■ Identified Risks (Examples)• Risk of non-compliance or management in violation of applicable legislation, etc.
• Risk of suspension or delays with raw material procurement activities• Risk relating to social media• Risks relating to the environment• Risk of fire and explosion accidents, natural disaster• Risk of bodily injury• Risks relating to information leaks• Risk of damage to mission-critical systems• Risks relating to infection from new strains of influenza, norovirus, etc.
• Risks related to overseas subsidiaries, etc.

■ Promotion of Businesses Continuity Plans (BCPs)
When companies have no sufficient measures for natural disasters such as earthquakes and storms and the prevalenceof infectious diseases, business operations may be suspended for a long time, resulting in significant damage andhaving a serious impact on stakeholders. As a company which produces thermal energy appliances to support people's
lifestyles, we believe it is our responsibility to maintain the stable supply of our products even under such circumstances.
We have positioned business continuity management as one of top priorities, in the event of any risks to the production
or supply of important products required by our customers, and are constantly working to formulate and review BCPs,
particularly for our domestic production divisions. Based on our experiences from the Great East Japan Earthquake on
March 11, 2011, and the Kumamoto earthquakes of April 14, 2016, we are exploring alternative raw material suppliers andprocurement sources, and continue to use multiple procurement sources on a daily basis, so that we are prepared for any
large-scale earthquakes in the future, including the Nankai Trough.

■ Stable Procurement
Please see page 89 “Measures for Risk Management and Stable Procurement.”■ Information Security Measures
Please see page 24 “Information Security Measures.”
While society becomes more demanding toward company security reinforcement issues, our Group as a whole promotes the adequate management of security systems by strengthening the awareness for proper information handlingthrough the establishment of rules for confidential information management and personal information management.
User authentication technology was adopted company-wide to manage access to its IT system and an entry/withdrawal
management system with ID cards has been introduced to various business locations including the Technology Development Center one by one.
In addition, to avoid information leakage, we have been enforcing a strict management of the external use of personal
computers (PCs), encryption of data stored in media to be used outside of the office, unauthorized access by outsiders,and virus and spam countermeasures.
21

CSR Report 2018

Compliance

Compliance■ Compliance Promotion System
To remain a sound corporate group that wins the trust of society, the Corporate Ethics Committee was established in
April 2004 headed by our President as its chairman. To promote compliance as part of our corporate culture, individual
employees strive to live up to their social responsibilities and create a workplace that encourages people to actively
engage in their work.

Corporate Ethics Committee
Chairman(President)

Measurements

Committee members(Selected from each headquarters)

Secretariat office(Legal Division)

・Draw basic examples to obey “Code of Ethics”
・Promote observance of corporate ethics
・Publish “Code of Ethics” booklets

Deployment

Each department■ Rinnai Group “Code of Ethics”
The Rinnai “Code of Ethics” is a small booklet which combines Rinnai’s Corporate Philosophy and Code of Conduct,
which embodies the detailed behavioral standards that all executives and employees are required to obey. The Compliance Committee member allocated to each workplace provides all employees in the workplace with “Code of Ethics”
training each year for its enforcement.
The English-version “Code of Ethics” was issued and distributed to the 18 overseas Group companies, andlocal-language versions were distributed to Group companies in countries which uses an official language other thanEnglish. Each company member in charge of education provides employees training sessions.

“Code of Ethics” booklets (from left: Japanese, English, Korean language versions)■ Compliance Education
Within the Company, the Legal Division is in charge of law regarding operations deeply related to business divisions,and conducts legal education every year. During fiscal 2018, a total of 745 people
in the Company Group took the course to deepen their knowledge of law. Also,
ethics education has been conducted every year during employee training for new
recruits and by rank; 318 people attended in fiscal 2018.
In addition, we share a variety of information with domestic Group employees via
our in-house intranet, on which we post data such as information regarding legal
reforms, legal commentary concerning our operations, and examples of violations
that occurred at other companies.

Employee training for new recruits

22

CSR Report 2018

Compliance■ Confirmation and Modification of Compliance Activities
Every year, we conduct employee questionnaires to ascertain how deeply ingrained elements of our Corporate Philosophy have become. In fiscal 2018, these showed that 99.6% of respondents were familiar with the Company Motto and99.2% understood our Corporate Mission. We will continue to actively promote compliance activities to maintain thesehigh levels.

■ Facilitation of Internal Reporting System
If, in the course of business activities, an employee at a domestic company under the Group umbrella suspects possible
breach of laws or the internal rules or unfair practices, and it is difficult to
A legal violation or someapproach a superior or the person responsible for the division with suchother issue occurs during
operations
suspicions, the employee may report the perceived infraction to the Cor● Breaches of laws, regulations,porate Ethics Helpline. The helpline system is available through telephone,internal rules, and ethics● Confirmation of illegal activities
e-mail, and letter, and has been in operation since November 2005.
In July 2016, we established the additional helpline system at the outside
lawyer office. In this system, we stipulated that the person who reported
the incident will not receive any unfair treatment by the fact that he or she
consulted the matter, and we also pay full attention to the protection ofprivacy of the person who made the report.
In fiscal 2018, the helpline received nine reports and requests for advice.
Appropriate measures have been taken, including investigation andconfirmation of the facts in these cases of alleged misconduct.

Consult with a supervisor or
the person responsible forthe division
SolvedFound it difficult
to consult witha supervisor

Not solved

Corporate Ethics Helpline
Internal reporting system procedure■ Disciplinary Committee
To maintain a fair working environment, we apply strict measures to any employee who breaches the internal rules, Codeof Ethics, or commits unfair practices based on the working rules under the guidance of the Disciplinary Committee.

■ Compliance Violations
There were no serious compliance violations in fiscal 2018.

■ Protecting Personal Information
Rinnai applies internal rules based on the Act on the Protection of Personal Information. In addition, our Privacy Policy was
instituted for the handling of personal information and posted on our website. Utilizing these, we strive to ensure appropriate storage, handling, and protection of customer data.
Accordingly, we established the position of chief privacy officer and privacy officer at the head office and require the appointment of privacy officers at all workplaces, including the offices of Group companies in Japan, to educate employees
who handle personal information, and to establish physical and technical systems to insure the safe management of personal information in each workplace. The privacy officers also conduct an internal audit once a year to verify the quality of
personal information management in each workplace.
There was no leakage of personal information in fiscal 2018.

23

CSR Report 2018

Information Security Policy

Information Security Policy
Of the many and varied risks faced in business, information risks have emerged as a serious and rapidly growing concern.
Firms must now protect themselves against new risks, such as cyber-attacks, as well as traditional risks, making it essential that they continuously strengthen their information security.
We have therefore appointed a chief information security officer (CISO), who has overall responsibility for information
security, and established an Information Security Office to promote action on information security. Together, they areleading and coordinating action in the following areas.

■ Establishment of Internal Regulations
We have introduced various sets of regulations on information security to ensure that information assets are handled withstrict care, including regulations on the management of trade secrets and regulations on the management of personal
information. We have also established a separate Privacy Policy to ensure that personal information is handled securely.

■ Arrangements to Promote Information Security
Information management officers are appointed at each of our plants and offices to ensure that good information security
practices are followed throughout the Company. Arrangements are in place to enable these officers to work closely with
the Information Security Office and facilitate action on information security.
An Information Security Committee consisting of the CISO and other employees involved in information security meetsregularly to discuss and share information on information security matters and raise the standard of information security.

■ Implementation of Information Security Measures
A variety of measures are implemented to prevent information leaks. These include protection against hacking fromoutside sources, anti-virus measures, encryption of data before information assets are removed from company premises,
control of devices such as USB memory sticks, and measures against spam. Access is rigorously controlled at all plants
and offices, and entry and access to sensitive areas is also controlled.
Regulations lay down the information security requirements that must be met when new information systems are installed,
and these requirements are revised whenever necessary to maintain and improve information security standards.

■ Awareness Raising and Training
Awareness raising and training activities are held on a continuing basis to ensure that all directors and employees are
fully aware of the importance of information security and handle the information assets used in business activities in an
appropriate manner. Regular training is also provided to ensure that information security issues are dealt with promptly
when they occur.

■ Response to Incidents, Accidents, and Failures
Regulations have been established to ensure that appropriate action is swiftly taken in the event of an incident, accident,
or failure affecting information security. If a problem occurs, we aim to respond swiftly to minimize the damage. We also
strive to prevent recurrences and reinforce countermeasures by identifying the causes of problems.

■ Continuous Improvement
The countermeasures needed to ensure information security will change as the environment surrounding information
security evolves. To keep pace with these changes, we regularly review our regulations, management systems, and otherarrangements concerning information security to check for problems and make continuous improvements.

24

CSR Report 2018 Outside Director’s Message

Outside Director’s Message
MESSAGE

Outside Director’s Message

Forming Organizations and Developing
Human Resources with an Eye on Overseas Strategies and ImprovTakashi Kamio
Outside director
ing Our Marketing
President and Chairman,
Specified Non-Profit Corporation Sasaeai

Positive Attributes of Rinnai’s Board of Directors

Improving Corporate Value and Maintaining Sustainable Growth in the Future

The Rinnai Board of Directors advances the Company’s
fundamental concepts, “Quality is our destiny,” at its assembly

Rinnai has always earned customer support by making goodhall, where every meeting starts and ends with a bow. I think thisproducts. However, in the future it will not be enough to simply

ongoing tradition creates a special sensation for participants, as

make good products, so I feel that it is important for Rinnai to

if the assembly hall were a sacred place. We are seeing variation

further heighten the functionality of its marketing.

in the processes through which each director in charge
introduces, explains and replies to measures, and as we expand

I want Rinnai, as a global company, to establish an ideal form forour appointment of outside directors, I feel that we haveitself that would be desirable for any company in any part of the

become able to conduct discussions with deeper substance.

world and would function as its Company brand. Then, I wantthem to use this brand to send out a message that will be

Issues Concerning Governance Moving Forward

accepted throughout the global market.
Finally, I expect Rinnai to focus more heavily on creating

Companies that disclose only favorable information live in aorganizations and developing human resources with an eye on

world of complacency and risk becoming out of touch with theboth its overseas strategies and on improving its marketing.

rest of the world. In order for the Company to accurately
comprehend what stakeholders want and expect, the Company must first make an honest effort to gather information. Only
once the Company has gathered this information can it securetransparency and improve its corporate governance.

Measures Related to Japan’s Corporate Governance CodeThe Rinnai Group has worked toward complete implementation

analyses concerning issues facing the Company in terms ofof all of the general principles of Japan’s Corporate Governancesecuring effectiveness. Moving forward, we will endeavor to

Code since it went into effect in June 2015. To this end, we havecoordinate internally so that we can enforce all of our basic

promoted initiatives related to principles that we have not yet

principles, including two that have not yet been implemented

been able to implement and to principles that we haveand those that were revised in June 2018. Furthermore, we will

implemented but need revision. From 2016 to 2017, wework to strengthen our governance and raise our corporate

formulated and released judgment standards and qualifications

value.

for our independent outside directors. Additionally, our directors
conducted self-assessments that served as an analyses andevaluations regarding the effectiveness of our Board of
Directors and Audit and Supervisory Board. We also performed

25

CSR Report 2018

Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures

Special Issue 01 [Initiatives to Environmental Preservation]

Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures
Connection with SDGs

■ Chinese Air Quality Improvement Initiatives
Currently, air pollution from fine particles having a diameter of 2.5µm or less (PM2.5) is becoming a major social issue in
China, which is undergoing considerable economic development. PM2.5 have negative effects on human health andcarry a risk for lung cancer. These particles can also affect daily life, causing low visibility and pain in the eyes and head.
PM2.5 air pollution is primarily caused by exhaust from automobiles and factories and emissions from coal-powered
boilers used in households. Particularly in China’s northern region, which includes Beijing, a large amount of low-quality
coal is used for indoor heating during the winter, contributing to serious PM2.5 air pollution. The Chinese government’s
Ministry of Ecology and Environment, which had prescribed a maximum average PM2.5 concentration level of 75µg/m3(class 2 standard) in February 2012*, announced new air pollution measures in July 2016. These ordinances are aimed atbringing PM2.5 levels in Beijing, Tianjin, and four cities in the province of Hebei (Baoding, Langfang, Tangshan, and Cangzhou) below standard values. The ordinances also prohibit the use of coal and promote conversion to heating poweredby alternative energy.
* Ambient Air Quality Standards (GB3095-2012)26

CSR Report 2018

Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures■ Meikaichi Project:

Conversion from Coal-Powered Boilers to Gas Boilers

Hot-water-based boilers are the main form of heating equipment in
China, particularly in the northern region, and provide heat by cycling
hot water through panel heaters installed in each room. Yeontan
coal briquettes had been a common heat source for these hotwater-based boilers but the soot produced during their combustion
generates PM2.5. For this reason, China has been promoting
conversion to boilers powered by natural gas, which has a high levelof combustion efficiency.
The Chinese government announced a policy that promoted the
expansion of gas pipelines in each major city and launched the
Meikaichi Project, which encourages conversion to gas boilers andgrants related subsidies. Rinnai Group company Shanghai RinnaiCo., Ltd. is working with gas companies in China to increase the useof gas boilers.

Gas Boiler Configuration
Heat

Gas boiler

Hot water
Panel heater
Gas

Low-temperature water

The gas boiler produces hot water that passes through the panel
heater, which then generates warm air that heats the entire room. When
the water’s temperature falls after passing through the panel heater, it isreheated by the gas boiler in a continuous cycle.

Coal prohibited foruse in heating

A gas boiler (top right) that replaced a coal-powered boiler used previously (bottom left)

27

CSR Report 2018

Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures

A quickly installed gas pipeline (yellow pipe) and a gas boiler flue protruding from the wall

■ Meikaichi Project Initiatives in Bazhou
Bazhou is a county-level city in Langfang, Hebei, China. Its populationof more than 500,000 people predominantly live in the city’s agricultural areas. Zhang Bingyan, general manager of the Bazhou Shunda
Combustion Sales Office, which offers gas boilers manufactured by
Shanghai Rinnai, commented as he looked back on Meikaichi Project
initiatives that “Gas pipeline installation has been rapidly progressing
since 2016 while the Chinese government promotes conversion fromcoal to gas in pursuit of a cleaner atmosphere. Yellow gas pipes wereinserted into the upper portion of exterior walls on each residence
and, in Bazhou, all of them were ready for use by the end of November
2017. About 154,000 residences converted from coal-powered boilers
and 16 gas boiler manufacturers in Bazhou are eligible for government
subsidies. We forecast that nearly half of them will make the switch
to boilers manufactured by Shanghai Rinnai. This is due to quality.
Shanghai Rinnai’s gas boilers perform with a very high level of stability.
The performance itself also has an excellent reputation and the boilers
are easy to use. In the future, I anticipate that Shanghai Rinnai will
increase the variety of the products it offers so that we can respond tovarious living environments and will also develop boiler models that fit
into a lower price range, lessening the burden placed on consumers,”
said Zhang, expressing his future expectations of the company.

Zhang Bingyan
General Manager
Bazhou Shunda Combustion Sales Office28

CSR Report 2018

Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures

Various types of gas boilers and water heaters on display at a distributor’s shop

■ Shanghai Rinnai’s Initiatives
Shanghai Rinnai was established as a joint venture in Pudong, Shanghai, in 1993. In addition to gas stoves and gas water
heaters, the company develops and manufactures gas boilers for use with hot-water heating systems based on technology that we developed in Japan. This Group company has sold high-quality gas appliances all over China.
In March 2017, Shanghai Rinnai began operating a new factory with twice the production capacity of its previous factory
in response to market expansion connected with economic development.
The Group company also began establishing interactive showrooms
all across China and conducting proposals regarding comfortable andenvironmentally conscious lifestyles for its many customers in China.
Shanghai Rinnai’s boilers were determined to be eligible for subsidies inmany regions under the Meikaichi Project, and the Group subsidiary isparticipating in initiatives aimed at improving air quality. Section Chief Qin
Xiaodong, who is responsible for boilers across China’s northern region,
reflected upon important points of this project.
“In 2017 alone, over 3,000,000 households converted from coal-powered
boilers to gas boilers, many of which were located in agricultural areas.
In order to appropriately respond to this massive demand, we needed asystem that could supply gas boilers quickly, in a large volume and overa wide area. To that end, we participated in the Meikaichi Project, forminga special new team that worked to provide proper support.” Additionally,
Section Chief Qin had the following thoughts about the strengths the Rinnai
Group exhibited through participation in this project, which requires a gas
boiler manufacturer’s total power, in terms of quality, price, and delivery speed.
“Shanghai Rinnai’s boilers have three main strengths. The first is theGroup’s characteristic quality. The Company maintains the quality of
every component through strict quality control, enabling it to provide
highly durable gas boilers. The second strength is that the boilers haveboth high energy-saving performance and high functionality because
they were designed using technology patented in Japan. In particular,
this high energy-saving performance allows us to contribute to air quality
improvement in a big way. Finally, the third strength is the Company’s
capacity for stably providing its products. Some manufacturers faced
delays when delivering products due to component shortages. Shanghai
Rinnai produces many of its components in-house and further increased its

Qin Xiaodong
Superintendent-General for the northern region ofChina and manager of the northern region water
heating systems office
Shanghai Rinnai

After-sales service system that provides peaceof-mind and support for our customers’ lives

29

CSR Report 2018

Special Issue 01:Rinnai’s Gas Boiler Contributes to Chinese Air Pollution (PM2.5) Countermeasures

production capacity when it completed construction on a new factory in March 2017. The Company makes it possible toquickly and smoothly provide gas boilers to customers.”■ Aiming for Both Better Air Quality and More Comfortable Lives for Our Customers
In March 2017, the Chinese government’s Ministry of Ecology and Environment expanded the area covered by its coalprohibition. In August of the same year, the ministry announced its “2017–2018 Comprehensive Fall and Winter Air Pollution Countermeasures Bill,” accelerating its efforts to improve air quality. This bill completely prohibits the use of coal forheating from November onward and targets Beijing, Tianjin, and 18 counties and cities in neighboring regions. However,
hot-water heating equipment is necessary for life during the coldest portion of the severe winters that visit China’s
northern region. For this reason, after-sales services become especially important when boilers break down or exhibit
defects. Shanghai will flexibly support conversion to gas boilers and work to strengthen its after-sales services so that
customers living in agricultural areas that are not accustomed to using gas boilers will be able to use them comfortably
and confidently during severe winters. Finally, the Rinnai Group will make use of its global strengths while participating inthis large-scale project and do its part to improve the environment in China.

30

CSR Report 2018

Special Issue 01:Energy-Efficient Water Heating Systems Mitigate Global Warming

Energy-Efficient Water Heating Systems Mitigate
Global Warming
Connection with SDGs

Aiming to Reduce CO2 Emissions by 1.6 Million Tons
Our water heaters emit more CO2 during use than at any other stage in,their lifecycles (see “The Rinnai Group s Value Chain” on page 12). We
consider global warming prevention one of our most important

CO2 Emission Reduction Amounts（Million tons）

6.04 million tons

6

corporate activities. Also, we believe we must develop and promote thespread of environmentally conscious products, and work to improvetheir energy efficiency. One example of these efforts is the work we aredoing to increase the combustion efficiency of our water heaters.
4

The Rinnai Group has set a medium-term target of reducing CO2
emissions by 1.60 million tons by 2020 as a part of its Basic
Environmental Activities (“7E Strategic Initiatives”). In pursuit of this goal,
we are promoting the spread of our energy-efficient water heating

1.60 million tons

2

systems, including ECO ONE, as well as household energy

1.00 million tons

conservation. We have been making steady progress, with a fiscal
2018 contribution of 1.00 million tons, using fiscal 2006 as a base year.
Additionally, in fiscal 2019 we announced our long-term goal of reducing

0

2005

CO2 emissions by 6.04 million tons by 2030. The Rinnai Group willcontribute to the United Nations’ 13th Sustainable Development Goal
(SDG), “Take urgent action to combat climate change and its impacts.”

2010

2017

2018

2020

2030 (Fiscal year)

emission reduction contribution: The reduction in CO emissions* CO
achieved through improved performance of Rinnai-brand water heaters,
22compared with fiscal 2006
[Calculation criteria] Target products: Water heaters sold by Rinnai
Corporation in Japan
Usage period: 10 years
Based on Rinnai standard (service conditions, etc.)

31

CSR Report 2018

Special Issue 01:Energy-Efficient Water Heating Systems Mitigate Global Warming

Evolution of the ECO ONE Hybrid Water Heater and Heating System
We created ECO ONE, the first-ever hybrid water heater and heating system forhousehold use, in 2010. This system provides thermal energy for water and floor
heating by combining gas and electric heat pumps. The system consists of threemain units: a heat pump, which uses electricity to boil water; a tank that stores the hotwater; and a high-efficiency Eco Jozu gas water heater that provides backup whenreheating water and using large volumes of water.
The Rinnai Group has worked to improve its energy conservation ever since it began
conducting sales in 2010. The ECO ONE with a 160L tank unit that we launched inAugust 2017 has met primary energy consumption standards for water heaters of
13.8 GJ per year. This system consumes 45% less energy than conventional water heaters.
In February 2018, the ECO ONE earned the first-place gold prize in the 2018 Aichi
Aichi Environmental Awards gold trophy

Environmental Awards (sponsored by Aichi Prefecture) for its high level of energy
conservation.

Comparison of Primary Energy Amounts Consumed by Water Heating Systems* (GJ/year)
Standard hot
water heating
systems

25.1

Computations were made using the* Energy
Consumption Performance

Mode thermal efficiency 92.5%

About

16.5

About

34%

13.8

About

45%

EcoCuteJIS3.614%

21.6

Eco Jozu

Calculator (home version, Ver.2.3.1,
available in six regions), which
conforms to the 2016 energy
standards in Technical Information
Regarding Building Energy
Consumption Performance (as ofDecember 2017). This publication
was through cooperation between
the Building Research Institute andthe National Institute for Land andInfrastructure Management.

160L type

In addition to improving its energy conservation,
the Rinnai Group has worked to expand its
product lineup, enabling it to respond to a varietyof housing environments. In May 2018, we beganselling our Plug-in LOWBOY model of ECO ONE,
which makes the construction of special powersources for heat pumps unnecessary. This
simplifies replacement construction and allows
for more flexibility when installing the system in adiverse range of placement areas in a wide variety
of existing houses.
Plug-in LOWBOY model of the ECO ONE hybrid water heater with bath-filling system, 50-liter model32

CSR Report 2018

Impact on the Environment of the Rinnai Group–Fiscal Year 2018

Impact on the Environment of the Rinnai Group–
Fiscal Year 2018
Rinnai is working to achieve full comprehension of all environmental impact related to its business activities.
In particular, we have identified three important issues involving environmental impact: Energy consumption, CO2 emissions (Scope 1 and 2) and use of sold products (Scope 3, Category 11), which produces overwhelmingly high emissions.
With regard to these three issues, we are implementing third-party inspections and are working to ensure the accuracy
and reliability of information disclosure.

■ Scope of Accounting
Rinnai Corporation and consolidated subsidiaries
Company Name
Rinnai Corporation

Rinnai Enterprises

Yanagisawa Manufacturing Co., Ltd.

Rinnai Australia Pty., Ltd.

Rinnai Technica Co., Ltd.

Rinnai America Corporation

Gastar Co., Ltd.

Rinnai Holdings (Pacific) Pte Ltd.

RB Controls Co., Ltd.

Rinnai New Zealand Ltd.

Rinnai Precision Co., Ltd.

Rinnai Hong Kong Ltd.

RT Engineering Co., Ltd.

Rinnai Taiwan Corporation

Japan Ceramics Co., Ltd.

Rinnai Korea Corporation

Noto Tech Co., Ltd.

Rinnai (Thailand) Co., Ltd.

Techno Parts Co., Ltd.

Shanghai Rinnai Co., Ltd.

Rinnai Net Co., Ltd.

Rinnai Viet Nam Co., Ltd.

RG Co., Ltd.

RB Korea Ltd.
Rinnai Canada Holdings Ltd.
Rinnai Brasil Heating Technology Ltd.
Shanghai Rinnai Thermo Energy Engineering Co., Ltd.
P.T. Rinnai Indonesia
Brivis Climate Systems
Gas Appliance Services Corporation■ Reporting Period
Domestic: From April 1, 2017 to March 31, 2018
Overseas: From January 1, 2017 to December 31, 2017
Third-Party Assurance• This icon indicates that a measure has been third-party assured by Lloyd’s Register Quality Assurance (LRQA).

33

CSR Report 2018

■ CO2 Emissions

Scope

Unit
tCO 2e1

Scope 1*

Scope 2*2
Scope 3*3

Impact on the Environment of the Rinnai Group Fiscal Year 2018

Purchased goods and1
services
2 Capital goods
3 Fuel- and energy-related activities
Upstream transportation4and distribution
5 Waste generated in operations
6 Business travel
7 Employee commuting
8 Upstream leased assets
Downstream transportation9and distribution
10 Processing of sold products
11 Use of sold products
End-of-life treatment of
12
sold products
13 Downstream leased assets
14 Franchises
15 Investments
Total of Scope 1, 2, and 3

Fiscal 201840,313

Percentage
0.33

Assurance

67,9770.56

816,828

6.75-

52,724
2,955

0.44
0.02

-

10,803

0.09

-

733
524
1,557
Included in Scope 1

0.01
0.00
0.01
-

-

-

-

-

Not applicable
11,204,402

92.62

-

6,580

0.05

-

Not applicableNot applicableNot applicable
12,205,395

100.00-

Scope 3, Category 1
Purchased goods and services

810 thousand tons (6.75%)

Supply chain CO2 emissions(Total of Scope 1,2, and 3)

12,200 thousand tons
Scope 3, Category 11
Use of sold products

11,200 thousand tons (92.62%)

Scope 1: The volume of greenhouse gases that are leaked directly into the Earth’s atmosphere from sources related to Rinnai’s business activities*21 Scope
volume of emissions that occur during electricity and heat generation phases when using electricity and heat supplied by third parties*3 Scope 2:3: The
Volume of emissions that occur during business activities conducted throughout Rinnai’s supply chain (excluding those in Scope 1 and 2)*■ Energy Consumption
ScopeElectricity
City gas
Methane gas

Use of equipment onpremises
Use of vehicles

Unit
MWh

Fiscal 2018
118,733.3

1,000 Nm3

11,096.6

1,000 Nm3

2.0

3

34.0

1,000 mAssurance

34

CSR Report 2018

Use of equipment onpremises
Use of vehicles

Impact on the Environment of the Rinnai Group Fiscal Year 2018t

3,171.0t

3.4

Butane gas

t

68.5

A-type heavy oil

kl

0.2

Kerosene

kl

20.7

kl

18 .1

kl

391.7

kl

6.4

kl

1,933.6

Unit
m3
m3
m3
t

Fiscal 2018665,255
269,397
881,174
28,664

LPG

Light oil

Gasoline

Use of equipment onpremises
Use of vehicles
Use of equipment onpremises
Use of vehicles■ Waste Material and Water
Scope

Public water
Ground water
Drainage
Waste material (including material with value)

Assurance■ Conditions for Calculations
Scope 1
CO 2 conversion factors
Emission factor
Heating value

Gas

Oil

MOE/METI, GHG Emission Calculation and Reporting Manual (Ver. 4.3.2)
3・City gas: 45 MJ/Nm
3
・Methane gas: 39.7 MJ/m
Town gas
MethaneLPG
ButaneHeavy oil
Kerosene
Light oil
Gasoline

2.24
2.02
3.00
3.00
2.71
2.49
2.58
2.32

tCO 2e/1,000 Nm3
tCO 2e/1,000 Nm3
tCO 2e/t
tCO 2e/t
tCO 2e/kl
tCO 2e/kl
tCO 2e/kl
tCO 2e/kl

Scope 2CO 2 conversion factors
Domestic emission factors
Overseas emission factors”Emission Factors by Electricity Utility (for FY2018 Reporting)” in MOE/METI, GHG

Emission Calculation and Reporting Manual (Ver. 4.3.2)
Latest figures published for electricity utilities, etc., in the countries concerned35CSR Report 2018

Australia (Adelaide)
Australia (Melbourne)
United States
Singapore
Hong Kong
TaiwanSouth Korea
ThailandChina (Shanghai)Vietnam
New ZealandBrazilIndonesia

Electricity

Impact on the Environment of the Rinnai Group Fiscal Year 2018

0.670
0.960
0.490
0 .4 31
0.790
0.525
0.459
0.544
0.704
0 . 815
0 .12 0
0.082
0.840

tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh
tCO 2e/MWh

Scope 3・Calculated in accordance with MOE/METI, Basic Guidelines on Calculation of Greenhouse Gas Emissions

Throughout the Supply Chain (Ver. 2.3)
・Conditions for all categories
Scope of calculation
Emission factors

Rinnai Corporation
・MOE, Emission Factor Database (Ver. 2.5)
・CFP Communication Program Secretariat, Carbon

Footprint Communication Program: Basic Database(Ver. 1.01) (Domestic Data)

・Conditions for category 11 (Use of sold products)
Products covered

Water heaters sold by Rinnai・Electricity: 0.570 kgCO 2e/kWhFederation of Electric Power Companies of Japan,

Environmental Action Plans in the Electricity Industry,
September 2015 (reference materials: collected data on
Emission factors

performance in FY2013)
3
・City gas: 2.21 kgCO 2e/m
Tokyo Gas Co., Ltd., City Gas CO 2 Emission Factors (13A, 45 MJ/m3 , ordinary households and other customers
receiving low-pressure supply)■ Third-Party Assurance Statement

36

CSR Report 2018

Global Warming Prevention

Global Warming Prevention
The effects of global warming are causing large fluctuations in climate patterns, which may hamper the construction ofsustainable societies. Rinnai is minimizing its energy consumption through its heat technology and expertise and throughvarious technological innovations. The Company is also promoting initiatives that contribute to reducing CO 2 emissions.
Contributing to Energy Conservation by Popularizing Environmentally Friendly Products
The vast majority of the CO 2 emitted during the lifecycles of Rinnai’s products occur during product use. In light of thisreality, the Company is conducting initiatives aimed at reducing the environmental impacts of its products while looking
ahead to 2020 and 2030. Additionally, we are making environmental contributions through our business activities.
Environmentally Conscious Design Initiatives (Product Assessment)
Rinnai is conducting environmentally conscious product development based on internal product assessment standards
beginning from the planning and design stages. We are working to develop devices with lower environmental impacts
than conventional models by reducing the amount of resources they use and improving their recyclability in addition totheir energy-saving capacities.
Reducing CO 2 Emission Rate*1 by 35%
In its Basic Environmental Activities (“7E” Strategic Initiatives), Rinnai established a fiscal 2018 target of lowering its CO 2
emissions rate by 8% (base-year comparison). By fiscal 2018, we had actually reduced our CO 2 emissions rate by 35%.
Total CO 2 emissions fell 0.7% year on year. We also further advanced our operational management. At the core of thismanagement strategy are our power-saving initiatives, which we conduct each summer at all our locations. These
initiatives encourage energy conservation and waste elimination in our production facilities and through our use of lighting
and air conditioning. By advancing our operational management, we were able to achieve major reductions in energy use
and meet our targets.
35% reduction in CO2 emissions
intensity relative to base year(tCO2e)30,000

100

(%)
100

84
76

78

20,000

80
65

63

60
40

10,000
20
0

2010

2014

CO2 emissions (tCO2e)

2015

2016

2017

0
2018 (Fiscal year)

CO2 emissions intensity (Fiscal 2010 = 100)

Note: CO 2 emissions intensity: CO 2 emissions intensity per standard unit defined by Rinnai. The target is to achieve a reduction of at least 1% per annum.
Scope of accounting: Rinnai Corporation

Efficiency-raising Activities through Rectification
Rinnai has established relevant management policies and targets as a business specified under the Act on the Rational
Use of Energy and is practicing logical energy use. Promoting rectification in our craftsmanship is leading to higher
productivity and lower total energy consumption. The Company is conducting loss-reduction activities from initial manufacturing to assembly and packaging stages supported by its integrated production system. With the awareness that“all kinds of losses lead to energy loss” we work to prevent loss incurred during transport, idle time, and through inventory,
among others.

37

CSR Report 2018Materials

Sheet
metal

Pressing

Transportation

MachiningStandbyGlobal Warming Prevention

Packaging

Assembly

Shipment

Inventory

Loss of time
All kinds of losses lead to energy loss
Primary Energy-conservation Initiatives
Upgrading and installation (with investment)

Optimizing operations (manufacturing)

Optimizing operations (office work)
Other

Upgrade to LED lighting and high-efficiency air conditioning, etc.
Integrate facilities, optimize compressor pressure settingsand starting and ending times, streamline furnace use toshorten operating times, recycle waste heat from boilers,eliminate air leaks, etc.
Run lighting on a curtailed schedule, manage air conditioner temperature and use, shorten usage times for tea
machines and air conditioners, use green curtains or reed
screens to reduce burden placed on air conditioners, etc.
Implement summer dress code early and expand its length

Use of Renewable Energy
The Rinnai Group encourages the use of renewable energy, including solar and wind power, at all its locations worldwide.
Its annual electric power output in fiscal 2018 was 50,000 kWh.

■ Improvements to Logistics
The Group’s products are produced at plants located mainly in Japan and then distributed around Japan and to othercountries in Asia, Europe, North America, and beyond.
Our Integrated Logistics Center monitors the status of energy usage through the distribution of products, and reviews
distribution efficiency in cooperation with outside distributors. In multilateral and creative way, we promote distribution
efficiency to reduce energy usage.
In fisical 2018, Rinnai opened its East Japan Logistics Center in Atsugi, Kanagawa,to strengthen its distribution in the East Japan region, which surrounds the Tokyo
metropolitan area. The Company is working to further shorten lead times and curtailenergy consumption with two distribution hubs, the East Japan Logistics Center in theeast and the Integrated Logistics Center in the west.
General Distribution Center

38

CSR Report 2018

Global Warming Prevention■ Trend of Shipping Volume and CO2 Emissions
Shipping volume(10 thousand tons /km)
CO 2 emissions
tons volume(tCO 2e)Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

6,587

6,836

6,763

6,429

6,228

6,952

10,44010,967

10,756

10,545

11,083

10,891■ Initiatives Being Pursued

・Expansion of consolidated shipping within the Group・Review and adjustment of product delivery routes
・Effective use of round-trip shipments
・Modal shift*・Increase in stacking per pallet
・Encouragement of eco-driving* Modal shift: Shift of transportation from roads to other forms of bulk transportation (rail or sea).

■ Safe and Eco-Friendly Driving Initiatives
We have introduced a system for quantifying and centrally managing fleet operationsat our sales offices and other relevant operations, and are also working to makeemployees more aware of how they can drive in a safer, more efficient, and eco-friendly
manner. The system is designed to automatically email managers if a driver drives too
fast, accelerates rapidly, or brakes suddenly. This has improved average fuel efficiency
by approximately 5% per annum since it was introduced. The system is also helping to
reduce traffic accidents and violations on public roads, and we plan to roll out similar
initiatives Companywide in the future.

Anti-idling reminder (Chugoku Sales Office)

Eco-Drive Excellent Activity Certificate
In the general division of the 2017 eco-drive activity competition sponsored the Foundation for Promoting Personal Mobility and Ecological Transportation, Rinnai's Kansai
Branch was awarded with the Eco-Drive Excellent activity certificate.

Eco-Drive Excellent activity certificate

39CSR Report 2018

Waste and Water Resources

Waste and Water Resources
In response to resource depletion, Rinnai is working to reduce waste and maintain zero emissions*1 (zero landfill waste) targets.
The Company acknowledges that water is a vital resource and conducts investigations regarding risk conditions forwater at each of its locations. Additionally, we endeavor to reduce the volumes of clean water or groundwater used at our
locations, depending on the area.
*1 Zero emissions: More than 99.5% of waste is recycled (including heat recovery)■ Reducing Waste Emission Rate*2 by 21%
In its Basic Environmental Activities (“7E” Strategic Initiatives), Rinnai established a fiscal 2018 target of reducing its waste
emission rate by 7% (base-year comparison). By the target year, the Company reduced its waste emission rate by 21%.
Total volume of waste emissions fell by 7.6%, in accordance with benchmarks. By keeping the daily elimination of waste(cost-reduction activities) at all our plants and offices in mind, we have greatly curtailed waste emissions at our businesslocations.

21% reduction in waste emissions
intensity relative to base year

(t)
100
85

(%)
100

80

83

10,000

79

79

80
60
40

5,000

20

0

2011

2014

2015

Waste emissions (t)

2016

2017

0
2018 (Fiscal year)

Waste emissions intensity (Fiscal 2011 = 100)

Note: Waste emissions intensity: Waste emissions per standard unit defined by Rinnai. The target is to achieve a reduction of at least 1% per annum.
Scope of accounting: Rinnai Corporation■ Primary Waste-Reduction Initiatives
Manufacturing

OfficeBoth・Raise the effective utilization rate for pressed components to increase yields
・Effectively use “dropped materials”
・Reduce failure rates
・Raise recovery rate of residual medicinal agents・Make transport materials returnable
・Eliminate excessive packaging
・Promote a shift to paperless correspondence
・Curtail the use of disposable and consumable materials
・Raise awareness by informing employees of how many copies they make and how muchthey cost・Improve accuracy of material separation
・Consign industrial waste processing to a reputable company■ Efforts to Improve Packaging
We use packaging made from easy-to-recycle cardboard, and are also expanding our use of returnable packaging topromote reuse of packaging materials and are reducing the weight and volume of packing by making more effective useof packaging components.

40

CSR Report 2018

Fiscal year

MonthAward Name

2003

Oct.

Electric Equipment Packaging Award

2004

Oct.

Logistics Award

2008

Oct.

Electric Equipment Packaging Award

2012

Oct.

Large-sized Equipment Packaging Award

2014

Aug.

Large-sized Equipment Packaging Award

2016

Aug.

Appropriate Packaging Award

Waste and Water Resources

Title
Glass-top built-in gas stove’s environmentally friendly packaging
Bathroom heater/dryer’s environmentallyfriendly packaging
Compact packaging for gas fan heaters
Environmentally responsive packaging for
the ECO ONE hybrid water heater withheating systems
Improved, environmentally friendly returnable packaging for gas-powered bath water
heaters
Component box with bottom tray for
packaging important accessories with main
articles■ Component Box with Bottom Tray Wins the 2016 Japan Packaging Contest
Appropriate Packaging Award

Rinnai’s component box with bottom tray, which allows theCompany’s instant hot water pump unit (principal product) to
be packaged together with heavy component parts that weighas much as three kg, won the 2016 Japan Packaging Contest’s
Appropriate Packaging Award. This packaging method, whichuses all cardboard, was praised for its high functionality and its
low use of packaging components.

■ Recycling Initiatives
At least 80%-90% of the materials used to make gas appliances consist of recyclable materials such as iron and copper.
Gas appliances that have reached the end of their useful lives are collected and disposed of through two channels: by
local authorities in the case of appliances that require no installation work, and by contractors in the case of appliancesthat do require such work.
The Environmental and Recycling Action Committee formed by the Japan Industrial Association of Gas and Kerosene
Appliances, of which we are a member, regularly surveys the state of disposal of end-of-life gas and oil appliances. In
addition to using questionnaires, the committee conducts recycling verification tests at recycling plants, as necessary,and confirms and shares information on the status ofdisposal. Surveys confirmed that end-of-life gas and oil
appliances are being properly disposed of and that therecycling rate remains high. These results will be useful inproduct design and improvement activities.
Recycling Household Electrical Appliances
Japan’s Home Appliance Recycling Law went into effect in 2001 with the goals to reduce the amount of waste going tolandfills and incinerators and to promote more effective use of resources. Since then, old appliances thrown out by consumers have been recycled into new products. Rinnai now has two products—a unit-style airconditioner and a clothes
dryer—that fall under the category of recycled products.
Recycling Containers and Packaging
Under the Containers and Packaging Recycling Law, which seeks to make more effective use of resources, manufacturers and businesses that use the products are required to recycle product containers and packaging discarded byhouseholds. In accordance with the law, Rinnai has outsourced the recycling of containers and packaging to designatedbusinesses that undertake associated services on the Company’s behalf.

41

CSR Report 2018

Waste and Water Resources■ Industrial Waste Processing
When reaching agreements with waste processing subcontractors, Rinnai conducts strict investigations involving
elements such as financial evaluations and on-site confirmations. We visit our processing subcontractors each year toverify that they are conducting appropriate waste disposal. Once there, we manage manifests that contain information
regarding different varieties of waste, their disposal methods, and processing statuses. We also conduct on-site
confirmations regarding waste processing and exchange relevant information with the subcontractor. In fiscal 2018, theCompany visited 43 locations to verify that proper waste management was being conducted.

■ Management of Polychlorinated biphenyl (PCB) Waste
The Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes requires that companies suchas Rinnai upgrade their storage of PCB, a substance used in transformer oil, and dispose of it by the end of March 2027.
We are promoting measures aimed at expedient disposal. Until PCB disposal is complete, the Company will implement
leakage prevention measures in preparation for possible equipment failures during storage. We will also diligently lockup facilities to prevent loss and conduct proper labeling. Additionally, Rinnai will work to enable appropriate disposal of
discarded electrical equipment confirmed to be contaminated with minute amounts of PCB. This disposal will be performed at facilities certified by the Minister of the Environment that enforce appropriate storage and began conducting
disposal in fiscal 2011.

■ Reducing Rate of Water Use by 28%
In its Basic Environmental Activities (“7E” Strategic Initiatives), Rinnai established a fiscal 2018 target of reducing its water
usage rate by 7% or more. By the target year, we reduced our water usage rate by 28%. Total volume of water used fell by
28.3%. We achieved major reductions in water usage by encouraging improved water conservation in line with our yearlong forecasts and efficient water utilization.
28% reduction in water consumption intensityfrom base year

(m3)

(%)

100

300,000
100

250,000

81
69

75

75

200,000

72

80
60

150,000

40
100,000

20

50,000
0

0
2011

2014

2015

Water consumption

2016

2017

2018 (Fiscal year)

Water consumption intensity (Fiscal 2011 = 100)

Note: Water consumption intensity: Water consumption per standard unit defined by Rinnai. The target is to achieve a reduction of at least 1% per annum.
Scope of accounting: Rinnai Corporation

Primary Water-Conservation Initiatives
As the world’s population increases and urbanization and industrialization continue to progress, the concern that humanity may face water shortages also spreads. To respond to business risks associated with water, Rinnai is identifying
business locations with high water risk both domestically and internationally. We are also starting to conduct response
initiatives tailored to these risk conditions.

■ Managing Drainage Water Quality
To ensure that the water we dispose of at drainage
treatment facilities does not impact aquatic
ecosystems, such as those in rivers, we conduct
wastewater management with voluntary standards
that are more stringent than those required by law.
The Company disposes of water while continuously
monitoring pH levels.

Water monitoring unit

Analyzing wastewater

42

CSR Report 2018

Pollution Prevention

Pollution Prevention
Some chemical substances can have a negative impact on ecosystems and human health if they are not managed
appropriately and accumulate as environmental pollution over long periods of time. Aiming to minimize the use of chemical substances that may affect people and global environments, Rinnai conducts management in accordance with bothcustomer demand and each individual country’s regulations throughout the lifecycles of its products.

■ Promoting Management of Products Containing Potentially Harmful Chemical Substances
Rinnai appropriately manages information concerning products containing potentiallyharmful chemicals along with its suppliers. The Company conducts this management
based on its Green Procurement Standards Guide (E-Procurement Standards Guide)
and its Chemical Substance Management Guidelines, which address regulatory
concerns regarding green procurement and chemical substances contained in
procured materials, respectively.
Principal regulations (examples from the EU)
RoHS : Directive on the restriction of the use of certain hazardous substances inelectrical and electronic equipment
REACH: Registration, Evaluation, Authorization and Restriction of Chemicals

Training a training session for business partners■ Management of Usage Amount of Chemical Substances
At each production site, we check and manage the amounts handled, released, and transferred of the 462 Class 1 chemical substances designated under the PRTR Law, for which 500 kg or more is handled each year.

Flows of Release and Transfer of Chemical
Substances (PRTR Substances)
Atmosphere
Products

Chemical
substances

Water areas

Waste

Soil

■ Lowering Usage Rate of Hazardous Chemicals*1 by 31%
In its Basic Environmental Activities (“7E” Strategic Initiatives), Rinnai established a fiscal 2018 target of reducing its usage
rate of hazardous chemicals by 7% compared to the base year. By the target year, it reduced this rate by 31%. Overall
reductions in hazardous chemical volume have been strong, totaling 36.1%.

43

CSR Report 201831% reduction in hazardous chemical
usage intensity from base year(t/year)
120

100

(%)
100

79

100

Pollution Prevention

76

79
71

80

69

80

60

60
40

40

20

20
0

2011

2014

PRTR usage (t)

2015

2016

2017

0
2018 (Fiscal year)

PRTR usage intensity (Fiscal 2011 = 100) (%)

Note: Hazardous chemical usage intensity: Usage of hazardous chemicals per standard unit defined by Rinnai.The aim is to achieve a reduction of at least 1% per annum.
Scope of accounting: Rinnai Corporation■ Preparing for Emergencies

All offices run annual drills premised on adverse events, such as environmental accidents.
To minimize environmental pollution risk, we have also reviewed procedures setting out
actions to take in the event of a crisis and have prepared emergency provisions.

■ Facility Inspections Centered on the Environment

Emergency response drill

Each year, Rinnai conducts environmentally focused facility inspections that prioritize
facilities it has designated as having potentially negative environmental impacts.We
are working to prevent major environmental accidents by conducting individual facility
inspections, operational checks on measuring instruments, and emergency simulations.
Emergency response drill

44

CSR Report 2018

Protecting Biodiversity

Protecting Biodiversity
Protecting the biodiversity that underpins social sustainability has become an urgent priority for humankind. Recognizingthat business activities and biodiversity are interwoven, we support the Declaration on Biodiversity by Japan Business
Federation (Keidanren) and are working to protect the environment.

■ Approach to Protection of Biodiversity
We have incorporated “consideration for biodiversity” into our ISO 14001:2015 environmental policy and are pursuing
action in accordance with the following principles.

Rinnai Principles on Biodiversity
1. Recognition of the issues
2. Cultivation of awareness

3. Pursuit of business activities
contributing to biodiversity
4. Disclosure of information

Rinnai regards protection of biodiversity as a priority for corporate survival andincorporates it into its environmental policy.
Rinnai is committed to deepening understanding and cultivating awareness of
biodiversity by creating opportunities for contact with nature, including throughpreservation and greenification activities undertaken around Company premises.
Rinnai recognizes that business activities and biodiversity are interwoven, and aims
to develop conditions that allow biodiversity to be preserved through greater action
to reduce environmental impacts.
Rinnai will publish details, both internally and externally, of its policy on and initiatives
to protect biodiversity, and aims to develop cooperation with local communities.

■ Cultivation of Awareness
Please see page 48 “Participation in the My Action Declaration project backed by UNDB-J.”■ Protection of the Environment around Company Sites
Please see page 47 “Nature Ramble” and “Eradication of Invasive Species.”■ Ties between Business Activities and Biodiversity
Action is being taken at all our plants and offices to protect diversity through initiatives to reduce the impact on theenvironment on a day-to-day basis (by reducing CO 2 and waste emissions, preventing atmospheric and water pollution,and so on).

45

CSR Report 2018

Protecting Biodiversity

Relationship between the Rinnai Group’s Business Activities and Biodiversity
Input

OutputDesign, manufacturing

Greenhouse effect gas
Chemicals
NOx

Use of biologicalresources

Raw materials
procurement

Transportation,
sale

Soot and dust
Waste

Use of water
resources

Collection, disposal, Use of products by
and recycling
customers

Impact on Biodiversity

Use of energy(fuels, electricity)

CO2

Release into theatmosphere

Dependence on Ecosystem Services

OutputUse of mineral
resources

Drainage
Noise, vibration

Use of land46

CSR Report 2018

Environmental Education and Promotion of Awareness

Environmental Education and Promotion of AwarenessTo promote ongoing environmental activities, it is essential to improve environmental awareness of each employee. At
the Rinnai Group, every June is designated “Environment Month,” during which time various participatory environmental
awareness-raising activities are organized.

■ Exchange Events (Visits) to Learn from Corporate Environmental Pioneers
Once per year, to coincide with Environment Month in June, we organize an exchange
event (visit) with a corporate environmental pioneer in order to learn about othercompanies’ environmental technologies and facilities, and to create opportunities
for personnel involved in environmental matters to share ideas and information.

Introduction of other companies’ initiatives■ Rinnai Group Environmental Awards Programs
The Rinnai Group Environmental Awards are held annually to recognize outstanding
environmental activities and stimulate more action on the environment throughout theGroup. These awards recognize major contributions to the environment and society,and are open to all our operations in Japan and around the world. The eighth awards
ceremony was held at the Rinnai Group Convention.
A record 117 entries were received in fiscal 2018, from which 11 prize winners in categories including manufacturing, offices, sales, and contribution to society were selected.
Award ceremony■ Protection of the Environment around Company Sites
Discovering more about local nature is the first step in preserving biodiversity. A nature ramble around our Oguchi Factoryin Niwa-gun, Aichi Prefecture, was therefore organized, and 46 species of plant were discovered during the two-hour
walk. A native species of burnet was found to be surviving on a regularly mown embankment, while a species of tickseedcalled Coreopsis lanceolate , which has been designated an invasive species that takes over the habitat of native species,
was discovered in the asphalt joints of a national highway. The ramble around a familiar landscape gave the participants
fresh insights into nature and will contribute to future preservation work. In fiscal 2018, the same survey was conductedaround the Seto Factory in Seto City.

Observing the flora of a paddy field

Native species of burnet discovered

Marking the locations of plants discovered on a map

47

CSR Report 2018

Environmental Education and Promotion of AwarenessMap of flora and fauna around Rinnai’s Oguchi Factory (map data courtesy of Google
and DigitalGlobe)■ Extermination of Coreopsis Lanceolata , a Specified Invasive Species (Biodiversity Conservation)
In June, which is Environment Month, we conducted an extermination of Coreopsis lanceolata , a specified invasive
species of plant.
Specified invasive species are living organisms that the Japanese government has determined to pose a risk of harm toecosystems when they are introduced from other regions. Their cultivation, preservation, import, transport, and breeding
are prohibited. Many commuters’ cars as well as trucks transporting products and other materials pass through the roads
surrounding the Company. The possibility exists that Coreopsis lanceolata seeds that adhered to these vehicles werecarried into and began inhabiting the land nearby. If left alone, the plant could spread to other locations in the same way,leading to wide-ranging habitation. Rinnai feels that it has a responsibility to prevent crises that threaten biodiversity inareas in which it does business.
In fiscal 2018, we collected and properly disposed of 180 kg of Coreopsis lanceolata in areas surrounding our Oguchi andSeto factories that spanned a total of about 2,000 m2. A total of 63 representatives from the government, neighboring
companies, and Rinnai staff participated in this activity, which Rinnai intends to expand moving forward.

Extermination work

Extermination work

Coreopsis lanceolata (a specified invasive species)■ Signing of the My Action Declaration
3,922 of our employees (equivalent to a 93% participation rate) have signed the “My Action Declaration”
backed by the Japan Committee for the United Nations Decade on Biodiversity (UNDB-J), and this hasenhanced their understanding of how to protect biodiversity.
We will pursue measures to mainstream biodiversity and encourage employees to think about andengage in protecting biodiversity in their daily lives and work by following the five actions specified in
the “My Action Declaration” (eating, touching, communicating, protecting, and selecting).

■ Publication of In-house Environmental Newsletter Eco no Coe
We publish a regular in-house environmental newsletter ‘Eco no Coe ’ to keep our employees around the world up todate with the Group’s own environmental activities and environmental trends elsewhere in Japan and other countries.
This newsletter has been published since 1999 as a means of raising environmental knowledge and awareness andencouraging communication on the subject among employees.

48

CSR Report 2018

Environmental Education and Promotion of AwarenessIn fiscal 2018, we included information regarding supply chain management andbiodiversity conservation.

Eco no Coe , Vol. 52, Winter Issue■ Activities to Raise Environmental Awareness through Cultivation of Heirloom Vegetables*1
We planned and held an “Heirloom Vegetable Seed Application Campaign” in which we distributed a variety of heirloom
vegetable seeds from Aichi, which have been popular in Japan since the Edo era (1603–1868), to a total of 604 applicants.
All applicants also participated in a survey regarding regional food culture. This campaign provided each participant
with the opportunity to try his or her hand at growing heirloom vegetables while learning about regional food culture andnature and becoming more familiar with greenery in general.
We collected photographs of heirloom vegetables at harvest time, as well as of cuisine made using them, and publishedthem in Eco no Coe (“Eco Voice”). This campaign was developed within the Company and modeled after initiatives
implemented by the Environmental Partnership Organizing Club (EPOC)*2.
vegetables*1 Heirloom
Vegetables such as Kyo-yasai and Kaga-yasai that have long been grown locally2
Environmental
Organizing Club (EPOC)* companies workPartnership
together on activities to build a recycling-oriented economy and society.

Entry photographs from employees■ Factory Tours
Rinnai is conducting factory tours to inform the public about its various endeavors,
including its environmental activities. We are providing tour participants with theopportunity to understand more about our environmental initiatives, quality control,
safety policies, and manufacturing by allowing them to view our facilities and by
conducting Q&A sessions afterward.
A total of 3,422 customers, suppliers, students, and members of government participated in our factory tours in fiscal 2018.
Factory tour in progress■ Environmental Exhibition
Rinnai Holds an Environmentally Friendly Product Event
We are working to promote our environmentally friendly products through eco-festivals
held at Rinnai sales branches all over Japan.
In fiscal 2018, a total of 35,000 customers attended our eco-festivals, which were held at all
branches nationwide, and learned about the environmental soundness of our products.

49

CSR Report 2018

Environmental Education and Promotion of Awareness■ Exhibit at Eco Products 2017
The Company has taken part in the Eco Products exhibition since 2013, the environmental exhibition hosted by Nikkei
Inc. and the Japan Environmental Management Association for Industry. A characteristic of this exhibition is that it is often
visited by business people and the general public, and also elementary and junior high school students on field trips.
During Eco Products 2017, nearly 2,000 elementary and junior high school students visited our booth to learn about theenergy used in homes and our environmental and energy-saving products.

■ Encouraging Eco-Friendly Commuting
The Technology Development Center encourages employees to voluntarily commutein an eco-friendly manner by designating certain days as “no car days.” On thesedays, employees come to work by public transport or bicycle in order to reduce CO2
emissions and the noise pollution caused by traffic congestion near the center. Thisnot only reduces impact on the environment but also provides employees with healthy
moderate exercise.
Bike racks at the Technology Development Center■ Cleanup and Greenification Activities around Company Sites
Group employees periodically engage in cleanup and greenification activities aroundthe Group’s factories and along their commuting routes to help look after the naturalenvironment around its operations. A total of 3,156 employees took part in fiscal 2018.

Cleanup activity

50

CSR Report 2018

Environmental Management

Environmental Management■ Approach to the Environment
Rinnai has adopted an environmental basic philosophy, environmental slogan, and “7E” Strategic Initiatives environmental
action plan (fiscal 2016 to fiscal 2018) in accordance with its Environmental Basic Policy, and these guide the implementation of environmental activities undertaken with the involvement of the entire workforce in all business domains.
Please see page 1 1 “Environmental Policy” .
Please see page 53 “Environmental Action Plan and Performance”.

■ ISO 14001:2015 Certification
To underpin the systematic and continuous development of environment-oriented activities in line with our statedbasic environmental policy, we encourage all members of the Rinnai Group to embrace efforts to acquire and maintain
ISO14001:2015 certification.
Please see page 72 “Environmental Management System Certification Acquisition Status”.

■ Promotional Framework for Environmental Activities
Headed by the President, the Environment Management Committee guides corporate efforts to achieve targets of the“7E” Strategic Initiatives environmental action plan. This committee is chaired by the executive officer responsible for theenvironment and has the participation of representatives from all divisions. Its mandate is to promote environment-oriented
activities from a “big picture” view.

Environmental Management Promotion System
President
Environment Management committee
Chairman of the Committee: Executive officer in chargeof environmental issue
Execution and improvement of environmental
management systems

Technology
Development
Center

Factories

Head OfficeEnvironment Division
Planning and administration(meeting and Committee)
of environmental activities

Sales Offices

Other Offices

The Environment Management Committee discusses and decides important items including the basic environmental
basic policy, the goal, and a medium to long-term plan. The committee thoroughly informs individual divisions of decisions
made by the committee and promotes concrete activities in line with annual plans. We review our objectives as necessary
and diligently strive to meet our targets. To perform specific activities, each division has a liaison group and holds routine
meetings to make issues known to everyone in the respective division and continue improvement activities.

■ External and Internal Environmental Audits
The ISO 14011 Certification Division undergoes a routine audit, once a year, by an external
screening/registration body to verify that the environmental management system is being
properly applied. In fiscal 2018, the routine audit reviewed the migration to ISO 14001:2015
version, and did not turn up any major non-conformances.

External audit

51

CSR Report 2018

Environmental Management■ Environmental Training
Raising each employee’s environmental awareness is important for promoting environmental activities. To provide as many employees as possible with opportunities
to raise their environmental awareness, we plan and offer training programs fordeveloping and fostering human resources who will actually engage in environmental
activities, as well as new employee training and rank-specific training programs.

Environmental training for staff in charge of environmental activities

Internal Auditor Education
Internal auditors play a significant role over and above their efforts to continuously improve the environmental management system. The execution of an audit requires highly specialized knowledge and communication skills. To upgrade
the skills of internal auditors, we conduct regular training by in-house instructors on such topics as laws and ordinances,internal regulations, internal audit observations and improvement measures, and environment-oriented trends. In fiscal
2018, a total of 36 employees participated in training workshops.

■ Compliance with Legal Regulations
In addition to complying with legal regulations, the Rinnai Group sets even more stringent voluntary environmental standards for itself. We conduct daily monitoring, regular measurements, and environmental audits to prevent the dischargeof chemical substances hazardous into the atmosphere or to water systems. The Company aims for thoroughness in its
environmental management. To this end, we are strengthening our management of facilities. If we discover the possibility
that chemical discharge could exceed our voluntary standards, we conduct countermeasures in advance to ensurecompliance. In the rare event that a chemical discharge exceeds regulation values, we identify the source, fix it, andimplement improvement measures.
In fiscal 2018, we were fully compliant with environmental regulations, including anti-pollution laws.

■ Supply Chain Management
Rinnai engages in global environmental conservation activities based on its basic philosophy on the environment
and works to provide environmentally friendly products. Environmental activities that extend beyond the scope of ourCompany and into our supply chain are important for sustaining our business moving forward. We include examples andsuggestions that we believe could contribute positively to the environment and green procurement in our Green Procurement Standards Guide, to which we request all of our suppliers comply. Rinnai is working to advance environmental
initiatives along with its suppliers.

52

CSR Report 2018

Basic Environmental Activities (“7E” Strategic Initiatives) and its Results

Basic Environmental Activities(“7E” Strategic Initiatives) and its Results
Rinnai promotes participation in environmental activities from all employees in all businesses. These activities are basedon the goals of the Company’s Basic Environmental Activities (“7E” Strategic Initiatives), which the Company hopes toachieve by 2020. Below is a report regarding targets, results, and estimated results for each of the Basic Environmental
Activities’ seven Es (E-marketing, E-services, E-products, E-procurement, E-minds, E-factories, and E-offices).
(Criteria for self-assessment of fiscal year target attainment)
Degree of attainment: 100 ▲ 70% or more × less than 70%
Scope: Rinnai Corporation
Basic Environmental Activities and Targets for Fiscal 2019–2021

Field
Environmental management

Environment
marketing (Sales)
Environmental services(Construction and repair)
Environmental products (Product development)

Environmental procurement

Environmental minds (Regional communities and employees)

Basic Environmental Activities(“7E Strategy”) (2018–2020)
Promote continued implementation ofenvironmental management systems at
all domestic and international locations
and obtain new certifications
Expand sales of highly efficient products
Set a 2020 goal of 1.6 million tons of
avoided CO 2 emissions in the hot watersupply system field*1
Energy consumption and CO2 emissions
levelsContinuously develop high-efficiency
equipment for Zero-Energy Homes(ZEH) and products that use less power
during both standby and use
Conserve and recycle resources
Continuously evaluate each product’s
environmental impact from its design
stage through its lifecycle and develop
smaller and lighter products
Promote supply chain management
Continuously promote green procurement management compliant withenvironmental regulations in eachcountry and engage in environmental
preservation activities along with our
suppliers to raise environmental performance throughout the supply chain

Share information and contribute to
local areas
Biodiversity conservation measures at
each location
Hold factory tours and showroom tours
at all sales branches nationwide
Participate in environmental exhibitions
Information transmission consciousof environmental, social, andgovernance(ESG)

Fiscal 2019 Targets
Receive ISO 14001:2015
certification at Minami-Kanto
sales office1.53 million tons of avoided
CO 2 emissions

・Develop a high-efficiency
gas water heater・Reduce standby power
consumption

・Product assessment
・Develop resource-saving(smaller and lighter)equipment
・Ensure suppliers
comprehend and manage
environmental load data
・Procure and use materials
in accordance with Rinnai’s
green procurement
standards
・Enhance chemical
substance management inresponse to regulations inindividual countries
・Exterminate specified
invasive plant species atseveral locations
・Publish CSR Report2018 and release ESG
information

53

CSR Report 2018

Environmental factories*2

Environmental offices

Basic Environmental Activities (“7E” Strategic Initiatives) and its Results

Environmental training and education
Aim to raise environmental awarenessand encourage communication
regarding the environment throughenvironmental events and educationfor employees
Reduce energy consumption rate bymore than 4% compared to fiscal 2017
by fiscal 2021
Reduce rate of waste discharge bymore than 4% compared to fiscal 2017
by fiscal 2021
Maintain and advance zero-emissions
initiatives
Reduce rate of water use by more than
4% compared to fiscal 2017 by fiscal 2021

Reduce rate of harmful chemicals
handled by more than 4% compared tofiscal 2017 by fiscal 2021

・Plan and conduct environmental training appropriate
for participants
・Stimulate environmental
activities with our internal
commendation system
Reduce by more than 2%
compared to fiscal 2017
Reduce by more than 2%
compared to fiscal 2017

Reduce by more than 2%
compared to fiscal 2017 by
fiscal 2021
Reduce by more than 2%
compared to fiscal 2017 by
fiscal 2021

Basic Environmental Activities and Targets for Fiscal 2019–2021
Field
Environmental management

Fiscal 2018 Targets
Acquire ISO 14001:2015
certifications at domestic andinternational locations

Environmental marketing (Sales)
Environmental services(Construction and repair)
Environmental products(Product development)

1.02 million metric tons of
avoided CO 2 emissions*4

Fiscal 2018 Results
ISO 14001:2015 certificationsacquired at the newly
established Akatsuki and East
Oguchi factories
1.00 million metric tons of
avoided CO 2 emissions*4

Assessment▲

・Hybrid water heater withheating system
・High-efficiency gas water
heater (domestic and international)
・Kitchen appliances andclothes dryers for overseas use
・Gas fan heater (reduction
in fuel consumption due
to circulation)
Conserve and recycle resources Conducted product assessments
・Continue to conduct productassessments
Developed lighter products
・Promote development of・Tabletop cooker for use
lighter products and products
overseasthat save water・Gas water heater
Simplified packaging
Energy consumption and CO 2
emissions levels
Develop high-efficiency
equipment

54

CSR Report 2018

Environmental procurement

Environmental minds(Employees)

Environmental factories*2
Environmental offices

Basic Environmental Activities (“7E” Strategic Initiatives) and its Results

・Conducted initiatives in pursuitof supplier comprehension
regarding environmental load
data
・Procured and used materials
in accordance with Rinnai
green procurement standards
・Established a foundation forchemical substance management and strengthened
collaboration with suppliers
Share information and contrib- ・Exterminated specified
ute to local areas
invasive plant species in thearea surrounding the Oguchi・Show consideration forbiodiversity at each location
Factory
・Release information regarding ・Published CSR Report 2018
CSR and the environment
・Released environmental
information on our corporatewebsiteEnvironmental training and・Conducted environmental
education
training at each location
・Enacted an internal commendation system (117 applications
for commendation received)
・Provided opportunities to become acquainted with various
plant life through traditional
heirloom vegetable growing(604 total participants)
Reduce CO 2 emissions rateby more than 8% compared to
Reduced by 35% compared tofiscal 2010
fiscal 2010
Maintain and advancezero-emissions initiatives
Reduce rate of waste discharge
by more than 7% compared to
Reduced by 21% compared tofiscal 2011
fiscal 2011
Maintained and advanced
zero-emission initiatives
Reduce water consumption rateby more than 7% compared to
Reduced by 28% compared tofiscal 2011
fiscal 2011
Reduce rate of harmful chemicals handled by more than 7%
Reduced by 31% compared tocompared to fiscal 2011
fiscal 2011
Promote supply chain
management

Notes: 1. CO 2 reduction contribution = Reduction in CO 2 emissions compared to products sold in 2005 resulting from improved performance of Rinnai water heaters (estimated)
Concerns emissions produced through markets in Japan and the United States
2. Intensity = Load per standard unit defined by Rinnai
3. Hazardous chemicals = Class I designated chemical substances as defined by the PRTR Act
4. Concerns only emissions produced through the Japanese market

55

CSR Report 2018

Environmental Accounting

Environmental Accounting
To promote environmental management moving forward, Rinnai is working to identify and understand the expenses andeffects necessary for its environmental conservation activities.
Scope of accounting: Rinnai Corporation
Period of accounting: From April 1, 2017 to March 31, 2018
Environmental Conservation Costs and Effects
Breakdown of Costs forEnvironmental Protection
Pollution prevention
Environmental protection
In the scope of operations
Resource recycling
Upstream/downstream
Management activities

Research and development

Community efforts

Key Activities

Costs

Mainly efforts to prevent air and water pollution
Mainly efforts to save energy
Recycling as well as treatment and disposal ofindustrial waste
Collection/recycling and volume/weight reduction of materials such as product packaging
Mainly monitoring and surveillance of environmental impact
R&D on environmentally conscious products
addressing energy- and resource-savingfeatures and reduction and/or elimination of
hazardous chemical substances
Environmental communication with local
regions and beautification/greening at placesof business and surrounding areas

Total

2,528
3,646
4,500
218
13,672

108,012103
132,679(Unit: tCO 2 e)Environmental protection effect

Item

Content

On-site results

CO 2 emissions reductions achieved
through improved energy conservation

Environmental
Impact Reduction
281(Unit: Ten thousand yen)

Economic EffectAccompanying
Environmental
Protection Measures

Key Content
Reduced expenses through energy conservation and waste
curtailment

Economic Effect
5,365

・R&D costs are associated with the development of environment-related, leading-edge technologies and products for the heat-energy appliance market as well as products that,based on Rinnai’s standards, mark an improvement over existing products.
・Costs covering other applications, which include non-environment-oriented activities, are apportioned according to internal rules.
・The calculations above exclude depreciation and amortization expense.
The economic effects achieved through energy-savings and waste reduction are not increases or decreases in overall costs but rather an effective amount regarded for its economic
benefit through the associated activities.
・Deemed effects, such as avoiding risks and enhanced product sales, fall outside the scope of economic effects because the standard for evaluation is too vague.
・External economic effects, derived mainly through products that reduce environmental impact, also fall outside the scope of economic effects because the results are too difficult
to pinpoint.

56

CSR Report 2018

Chronology of Environmental Activities at Rinnai

Chronology of Environmental Activities at Rinnai
March
1993

December

1994

July

1996

March

1997

March
June
October
December
April

1998
October

1999

June
July
September
October
February

2000

2001
2002
2003

2004

2005

May
June
August
June
June
June
October
June
October
December
June
September
June

2006
October
2007

June
June

2008

September
October

Drafted Environmental Preservation Action Plan; established Environment Committee
Won prize at 4th Energy Conservation Vanguard 21 for gas-blast type high-heat griller
RGM-4, 6, 8
Market debut: Low-NOx burner built-in water heater (NOx at less than 60 ppm)
Won top prize at 1st Eco-Design Awards, sponsored by Tokyo Gas, Osaka Gas andToho Gas for water heater, fan heater and small hot-water heater
Won special prize at 2nd Eco-Design Awards for tabletop cooking stove
Market debut: Absorption-type gas air conditioner (non-CFC)
Acquired ISO 14001 certification at Oguchi Factory
Won prize at 8th Energy Conservation Vanguard 21 for tabletop oven RSBN-096
Won top prize for gas clothes dryer and special awards for small hot-water heater and forabsorption-type gas air conditioner at 3rd Eco-Design Awards
Market debut: Yukko V Series, featuring no styrene packing, low stand by power
consumption and low NOx emissions
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Established Environment DivisionMarket debut: Ecomax burner and Eco burner-equipped gas cooking stove
Market debut: Condensing water heater boasting 95% heat efficiency and NOx emissions
under 30 ppm
Won Minister of Economy, Trade and Industry Award for condensing water heater at
Ministry's 10th Energy Conservation Awards
Drafted Rinnai Environmental Action Principles
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Published inaugural issue of Environmental Report
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Won Electric Equipment Packaging Category Award in the Good Packaging division at
Japan Packaging Contest 2003 for built-in 75 cm-wide glass-top gas cooking stove
Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
Won Logistics Prize at Japan Packaging Contest 2004 for bathroom heater/dryer
Created the Green Procurement Standards Guide (first edition)
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Participated in Team Minus 6%, a national movement to prevent global warming
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Won Electric Equipment Packaging Category Award in the Good Packaging division
at Japan Packaging Contest 2006
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneerGas tankless water heater sold in the United States captured 2008 Super Nova Star Award(Stars of Energy Efficiency) in the United States from the Alliance to Save Energy
Won Electric Equipment Packaging Category Award in the Good Packaging division at
Japan Packaging Contest 2008 for gas fan heater

57

CSR Report 2018

February
2009

June
January2010

February
June
September
April
May

2011

June
September
December
June
September

2012

October
December
June

2013

September
DecemberJanuary
June
August2014

September

December

April
2015

June
September

Chronology of Environmental Activities at RinnaiMarket debut: Eco-Jozu hot-water/heating unit RVD-E Series
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Market debut: Eco-Jozu water heater with bath-filling systems RUF-E SeriesParticipated in Challenge 25 campaign, a national movement to prevent global warming
Won Silver Award at Aichi Environmental Award 2010 sponsored by Aichi Prefecture for
global promotion of high-efficiency combustion appliances and systems, including latent
heat recovery water heaters
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the first Rinnai Group Environmental Awards ceremonyMarket debut: Eco One hybrid water heater with heating systems for colder regions
Won Technology Grand Award from Japan Gas Association for development of gas
hot-water system SOLAMO to use solar heat
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the second Rinnai Group Environmental Awards ceremony
Won the Resource Recycling Manufacturing Research Group Chairman’s Award at the
IMS 16th Resource Recycling Manufacturing Symposium for energy-saving measuresconcerning enamel combustion furnaces
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the third Rinnai Group Environmental Awards ceremony
Won Large and Heavy Good Packaging Prize at Japan Packaging Contest 2012 for
Eco One hybrid water heater with heating systems
Won the Resource Recycling Manufacturing Research Group Chairman’s Award at the
IMS 17th Resource Recycling Manufacturing Symposium for our development of ahome-use hybrid water heater with heating systems
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the fourth Rinnai Group Environmental Awards ceremony
Won the Chairman Award of Nagoya Industries Promotion Corporation at the IMS 18th
Resource Recycling Manufacturing Symposium for improvement of logistic
efficiency and reduction of waste disposal by reviewing of packing production process
Won top energy conservation award at METI Award in the fiscal 2013 Energy
Conservation Awards for Eco One hybrid water heater with heating systems
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Won Large and Heavy Good Packaging Prize at Japan Packaging Contest 2014 for
returnable package
Held the fifth Rinnai Group Environmental Awards ceremony
Won 2014 Energy Saving and New Energy Grand Prize in Kitaguni (northern area inJapan) for Eco One hybrid water heater with heating systems for the Hokkaido region
Won the Chunichi Shimbun Award at the IMS 19th Resource Recycling
Manufacturing Symposium for our development of an eco-friendly water heater withbath-filling systems
Market debut: Eco One third-generation hybrid water heater with heating systems
Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the sixth Rinnai Group Environmental Awards ceremony

58

CSR Report 2018

May
June

2016

July
AugustSeptember
DecemberJanuary
March
2017
June

NovemberJanuary
February
2018

April
June

Chronology of Environmental Activities at Rinnai

Acquired a certificate of a low-carbon building as Japan’s first residential complex inwhich all units have ECO ONE and floor heating
Environment Month events:
Issued new environmental cards to all Rinnai employees
Organized an exchange event (visit) with a corporate environmental pioneer
Participated in COOL CHOICE campaign, a new national movement to global climaticchanges and reducing greenhouse effect gas
Won Good Packaging Prize at Japan Packaging Contest 2014 for a bottom tray with parts
box for important attachments
Held the seventh Rinnai Group Environmental Awards ceremony
Won Nagoya Municipal Industrial Research Institute Director’s Award (for improvements
targeting paper use along the supply chain) at 21st Resource Recycling Monozukuri
Symposium IMS
Presented a talk on Rinnai’s environmental activities at the 20th Dialogue and Exchange
Event hosted by EPOC
Won the Energy Center Director’s Award at the Energy Conservation Awards forthird-generation ECO ONE hybrid water and space heating system
Conducted inspections regarding conversion to ISO 14001:2015 standards
Environment Month events:
Organized action to eradicate a specified invasive species (Coreopsis lanceolata )Organized an exchange event (visit) with a corporate environmental pioneer
3,922 Rinnai employees participated in the My Action Declaration’s five actions to protect
biodiversity backed by the Japan Committee for the United Nations Decade on
Biodiversity (UNDB-J)
Rinnai Kansai branch office received Eco-Drive Excellent activity certificate in the generaldivision of the 2017 Eco-drive Activity Concours, sponsored by the Foundation for Promoting
Personal Mobility and Eco-Drive Ecological Transportation
Held the eighth Rinnai Group Environmental Awards during our New Year’s celebration
Won first prize in the Aichi Environmental Awards for our development of the ECO ONE ,which is an extremely energy-efficient water heater and heating system that cleverly andoptimally uses diverse energy
Published fourth edition of our Green Procurement Standards Guide
Environment Month events:
Removed Coreopsis lanceolata coreopsis plants, an invasive species, and held an Environmentally Progressive Company Inspection Council (exchange meeting)59

CSR Report 2018

Supplemental Data

Supplemental Data 1: Major Site Report 2018
Oguchi Factory

Target period: April 1, 2017–March 31, 2018

Location

Kaechi, Oguchi-cho, Niwa-gun, Aichi

Business

Manufacture of gas equipment

Commenced operations

1964

Major production items

Gas stoves, Built-in ranges, Dishwashers, and others

Acquisition of ISO 14001 certification

October 1997

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

4,543.4

792,389.6

0.0

5.2

0.0

0.0

0.0

22.3

4.8

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,862

2,204

2.8

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)

5,000.25

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

5,000.2

100.0

Substances Subject to the PRTR Law
NumberClass I designatedchemical substance
name*(Unit: kg)

Amount of emission/discharge
Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers

53

Ethylbenzene

1,400.0

1,400.0

0.0

0.0

0.0

0.0

16.0

71

Ferric chloride

1,500.0

0.0

0.0

0.0

0.0

0.0

1,500.0

80

Xylene2,500.02,500.0

0.0

0.0

0.0

0.0

49.0

296

1,2,4-trimethylbenzene

1,500.0

1,500.0

0.0

0.0

0.0

0.0

0.0

300

Toluene2,000.01,800.0

0.0

0.0

0.0

0.0

190.0

309

Nickel compounds

1,000.0

0.0

0.0

0.0

0.0

0.0

33.0

405

Boron compounds

3,000.0

0.0

0.0

0.0

0.0

0.0

140.0

*As regulated by the Pollutant Release and Transfer Register (PRTR) Law
Water Discharge
Substance

Regulation value

Actual value

Voluntary

Maximum

standard:* Water discharge
Sewer discharge standard
Theamountofdischarge:
m /day* pH: Concentration of hydrogen
ions* BOD: Biochemical oxygen demand*(mg/l)
of aqueous* SS: Concentrationsuspended solids (mg/l)
3

Mean

pH

5.7 - 8.7

5.8 - 8.7

7.0

6.8

BOD

300

240

130.0

79.1

SS

300

240

42.0

27.9

60

CSR Report 2018

Supplemental Data

Supplemental Data 2: Major Site Report 2018
Seto Factory

Target period: April 1, 2017–March 31, 2018

Location

Anada-cho, Seto-shi, Aichi

Business

Manufacture of gas equipment

Commenced operations

1979

Major production items

Hybrid water heaters with heating systems,
Heating source for gas water heaters,
Gas water heaters, and others

Acquisition of ISO 14001 certification

December 2000

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

7,567.3

593,109.8

357.0

25.4

0.1

0.0

0.1

14.9

4.8

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,458

3,670

3.4

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)2,038.3

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

2,038.3

100.0

Substances Subject to the PRTR Law
NumberClass I designatedchemical substance
name*(Unit: kg)

Amount of emission/discharge
Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers

53

Ethylbenzene

1,800.01,600.0

1.6

0.0

0.0

0.0

170.0

80

Xylene2,400.0

2,200.0

1.6

0.0

0.0

0.0

170.0

87

Chromium andchromium (III)compounds

5,900.0

0.0

0.0

0.0

0.0

0.0

0.0

300

Toluene1,200.0

740.0

0.0

0.0

0.0

0.0

450.0

308

Nickel

10,000.0

0.0

0.0

0.0

0.0

0.0

0.0

*As regulated by the Pollutant Release and Transfer Register (PRTR) Law

Water Discharge
Substance

Regulation value

Actual value

Voluntary

MaximumpH

5.8 - 8.6

6.0 - 8.4

Mean
7.6

discharge to: Yatoko River* Waterstandard:* Water discharge
River discharge standard
amount of discharge: m /day
* The
Concentration of hydrogen ions
* pH:
BOD:
Biochemical oxygen demand*(mg/l)
oxygen demand* COD: Chemical(mg/l)
SS:
Concentrationof aqueous*
suspended solids (mg/l)* ( ) Daily average
3

7.4

BOD

25 (20)

20

2.5

1.2

COD

25 (20)

20

3.3

2.0

SS

30 (20)

20

2.0

2.0

61

CSR Report 2018

Supplemental Data

Supplemental Data 3: Major Site Report 2018
Akatsuki Factory

Target period: April 1, 2017–March 31, 2018

Location

Seto, Aichi

Business

Gas appliance production

Commenced operations

2017

Major production items

Hybrid water heater with heating systems,
clothes dryers, and other appliances

Acquisition of ISO 14001 certification

June 2018

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

1,949.1

180,140.9

0.0

1.2

0.1

0.0

0.0

2.0

0.7

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

415

945

0.9

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

819.6

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

819.6

100.0

62

CSR Report 2018

Supplemental Data

Supplemental Data 4: Major Site Report 2018
Asahi Factory

Target period: April 1, 2017–March 31, 2018

Location

Nishiyama-cho, Owariasahi-shi, Aichi

Business

Manufacture of gas equipment

Commenced operations

1960

Major production items

Gas fan heaters, Gas clothes dryers,
Bathroom heaters/dryers, Fan-forced gas heaters,
Infrared heaters, and others

Acquisition of ISO 14001 certification

January 2003

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

1,318.1

191,715.4

0.0

1.1

0.0

0.0

0.1

3.0

1.3

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

444

639

0.7

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

458.1

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

458.0

100.0

Substances Subject to the PRTR Law
NumberClass I designatedchemical substance
name*(Unit: kg)

Amount of emission/discharge
Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers

53

Ethylbenzene

5,300.0

600.0

0.0

0.0

0.0

6.0

1,200.0

80

Xylene12,000.0

1,200.0

0.0

0.0

0.0

6.0

1,200.0296

1,2,4-trimethylbenzene

1,500.0

120.0

0.0

0.0

0.0

6.0

260.0

300

Toluene7,300.0

1,500.0

0.0

0.0

0.0

6.0

4,800.0*As regulated by the Pollutant Release and Transfer Register (PRTR) Law

Water Discharge
Substance

Regulation value

Actual value

Voluntary

Maximum

standard:* Water discharge
Sewer discharge standard
Theamountofdischarge:
m /day* pH: Concentration of hydrogen
ions* BOD: Biochemical oxygen demand		*(mg/l)
SS:
Concentrationofaqueous*suspended solids (mg/l)
3

Mean

pH

5.7 - 8.7

5.9 - 8.5

7.5

7.2

BOD

300

210

190.0

73.7

SS

300

210

140.0

44.5

63

CSR Report 2018

Supplemental Data

Supplemental Data 5: Major Site Report 2018
Yanagisawa Manufacturing Co., Ltd.

Target period: April 1, 2017–March 31, 2018

Location

Yanagi-machi, Kadoma-shi, Osaka

Business

Manufacture of gas equipment

Commenced operations

1936

Major production items

Commercial-use kitchen units,
Commercial-use high-speed ovens,
Gas rice cookers,
Floor heating systems (hot-water mat)

Acquisition of ISO 14001 certification

June 2004

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

1,837.7

359,907.9

0.0

0.1

0.0

0.0

0.0

0.0

5.9

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

821

935

0.6

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

396.3

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

396.3

100.0

Water Discharge
Substance

Regulation value

Actual value

Voluntary

Maximum

standard:* Water discharge
Sewer discharge standard
amount of discharge: m /day
* The
Concentration of hydrogen ions* pH:
oxygen demand 		* BOD: Biochemical(mg/l)
SS:
Concentrationof aqueous
*
3

Mean

pH

5.0 - 9.0

5.9 - 8.5

7.3

7.0

BOD

600

300

98.0

52.7

SS

600

300

110.0

55.1

suspended solids (mg/l)

64

CSR Report 2018

Supplemental Data

Supplemental Data 6: Major Site Report 2018
Rinnai Technica Co., Ltd.

Target period: April 1, 2017–March 31, 2018

Location

Sakagawa, Kakegawa-shi, Shizuoka

Business

Manufacture of gas equipment

Commenced operations

1970

Major production items

Gas water heaters,
Gas instant-heating hot-water heaters,
Gas water heaters for overseas markets, and others

Acquisition of ISO 14001 certification

December 2003

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

3,166.5

0.0

0.0

516.3

5.6

0.0

0.0

1.0

6.5

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,584

1,536

2.5

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)

1,133.0

5.6

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

1,127.4

99.5

Water Discharge
Substance

Regulation value

Voluntarydischarge to: Ohta River* Water* Water discharge standard:

Actual value
Maximum

River effluent standard

Mean

pH

5.8 - 8.6

6.3 - 8.1

7.8

7.4

BOD

25 (20)20 (15)

16.0

7.0

COD

160 (120)

20 (15)

9.9

8.0

SS

50 (40)30 (20)

9.0

4.7* The amount of discharge: m 3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand
* SS:
*(

)

(mg/l)
Concentration of aqueous
suspended solids (mg/l)
Daily average65

CSR Report 2018

Supplemental Data

Supplemental Data 7: Major Site Report 2018
GASTAR Co., Ltd.

Target period: April 1, 2017–March 31, 2018

Location

Yamato-shi, Kanagawa

Business

Water heater business, TES business,and housing equipment business

Commenced operations

1959

Major production items

Heating source for water heaters,
Water heater with bath-filling system,
Japanese-style balance-type bath heating systems

Acquisition of ISO 14001 certification

October 2001

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

4,497.6

684,109.9

5,432.0

21.8

0.1

0.0

0.0

3.3

61.7

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,763

1,906

3.1

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

637.0

0.3

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

636.7

99.9

Water Discharge Yamato Area (Head office and Factory)
Substance

Regulation value

Actual value

Voluntary

MaximumMeanpH

5.0 - 9.0

5.2 - 8.8

7.8

7.1

BOD

600

480

22.0

8.4

Yamato Area (Laboratory building)
Substance
pH

Regulation value

Actual value

Voluntary

5.8 - 8.6

Maximum

Mean

to: Tutumi River* Water discharge standard:* Water discharge
River effluent standard
amount of discharge: m /day
* The
Concentration of hydrogen ions* pH:
oxygen demand* BOD: Biochemical(mg/l)
COD:
Chemical
oxygendemand*(mg/l)
of aqueous* SS: Concentrationsuspended solids (mg/l)
36.0 - 8.4

8.3

7.8

BOD

15

12

5.0

5.0

COD

25

20

5.0

5.0

SS

40

32

5.0

5.0

66

CSR Report 2018

Supplemental Data

Supplemental Data 8: Major Site Report 2018
RB Controls Co., Ltd.; Head office, Kanaiwa Factory, and Tsurugi Factory
Location

Head office: Kannondo-machi, Kanazawa-shi, Ishikawa
Kanaiwa Factory: Kanaiwa Higashi, Kanazawa-shi, Ishikawa
Tsurugi Factory: Oyanagi-machi, Hakusan-shi, Ishikawa

Business

Manufacture of gas equipment components

Commenced operations

1971

Major production items

Electronic control units, High voltage units,
Bathroom waterproof TV,
Bathroom LED lights, and others

Acquisition of ISO 14001 certification

March 2006

Target period: April 1, 2017–March 31, 2018

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

5,776.8

24,852.4

0.0

311.4

0.0

0.0

0.0

3.0

16.2

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,035

3,697

1.9

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

403.4

21.2

Amount ofintermediate
processing of waste(t)
4.5

Amount of recycled
waste
(t)

Recycling
percentage
(%)

377.7

93.6

Water Discharge Head office and Kanaiwa Factory(Unit: kg)

NumberClass I
designatedchemical
substance
name*Amount of emission/discharge

31

Antimony andits compounds

2,600.0

0.0

0.0

0.0

0.0

0.0

2,600.0265

Tetrahydromethylphthalicanhydride

17,500.0

0.0

0.0

0.0

0.0

0.0

0.0

448

Methylenebis (4,1-phenylene)
diisocyanate

3,000.0

0.0

0.0

0.0

0.0

0.0

0.0

460

Tritolyl phosphate

3,500.0

0.0

0.0

0.0

0.0

0.0

3,500.0

Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers*As regulated by the Pollutant Release and Transfer Register (PRTR) Law

Tsurugi Factory(Unit: kg)

NumberClass I
designatedchemical
substance
name*Amount of emission/discharge

448

Methylenebis (4,1-phenylene)
diisocyanate

34,000.0

0.0

0.0

0.0

0.0

0.0

0.0

460

Tritolyl phosphate

47,000.0

0.0

0.0

0.0

0.0

0.0

47,000.0

Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers*As regulated by the Pollutant Release and Transfer Register (PRTR) Law

67

CSR Report 2018

Supplemental Data

Supplemental Data 9: Major Site Report 2018
Rinnai Precision Co., Ltd.; Head office, Komaki Factory, and Kani Factory
Location

Head office and Komaki Factory: Shimobata,Oaza Honjo, Komaki-shi, Aichi
Kani Factory: Himegaoka, Kani-shi, Gifu

Business

Manufacture of gas equipment components

Commenced operations

1979

Major production items

Gas cock parts, Gas valve parts, Gas control units,
Solenoid water valve, and others

Acquisition of ISO 14001 certification

December 2005

Target period: April 1, 2017–March 31, 2018

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

14,683.4

1,446,932.2

0.0

90.0

55.2

0.0

0.0

0.0

6.8

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

3,698

7,121

7.2

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)2335.5

14.3

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

2321.2

99.4

Water Discharge Head office and Komaki Factory
Substance

Regulation value

Actual value

Voluntary

MaximumMeanstandard:* Water discharge
Sewer discharge standard
Theamountofdischarge:
m /day* pH: Concentration of hydrogen
ions* BOD: Biochemical oxygen demand		*(mg/l)
SS:
Concentrationofaqueous*suspended solids (mg/l)
3pH

5.8 - 8.6

6.0 - 8.4

7.2

7.0

BOD

300

300

190.0

177.0

SS

300

300

20.0

7.3

Kani Factory
Substance
pH

Regulation value

Actual value

Voluntary

5.8 - 8.6

MaximumMean

5.8 - 8.6

6.8

discharge to: Kani River* Waterstandard:* Water discharge
River effluent standard
amount of discharge: m /day
* The
Concentration of hydrogen ions
* pH:
BOD:
Biochemical oxygen demand*(mg/l)
oxygen demand* COD: Chemical(mg/l)
SS:
Concentrationof aqueous*
suspended solids (mg/l)
3

6.2

BOD

15

15

3.4

1.9

COD

30

30

2.4

2.4

SS

30

30

14.0

4.2

68

CSR Report 2018

Supplemental Data

Supplemental Data 10: Major Site Report 2018
RT Engineering Co., Ltd

Target period: April 1, 2017–March 31, 2018

Location

Kamiike-cho, Toyota-shi, Aichi

Business

Manufacture of gas equipment and components

Commenced operations

1950

Major production items

Machined copper pipe parts,
Machined stainless steel parts,
Machined iron pipe parts, and others

Acquisition of ISO 14001 certification

March 2006

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

2,319.0

122,882.1

0.0

2.6

0.0

0.0

1.4

1.9

3.7

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

301

1,125

0.9

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

535.0

8.3

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

526.7

98.5

Water Discharge
Substance

Regulation value

Actual value

Voluntary

Maximum

standard:* Water discharge
Sewer discharge standard
amount of discharge: m /day
* The
Concentration of hydrogen ions
* pH:
BOD:
Biochemical oxygen demand 		*(mg/l)
of aqueous* SS: Concentrationsuspended solids (mg/l)
3

Mean

pH

5.7 - 8.7

5.7 - 8.0

7.4

6.8

BOD

300

150

6.4

2.9

SS

300

150

6.0

1.8

69

CSR Report 2018

Supplemental Data

Supplemental Data 11: Major Site Report 2018
Japan Ceramics Co., Ltd

Target period: April 1, 2017–March 31, 2018

Location

Himegaoka, Kani-shi, Gifu

Business

Manufacture of gas equipment components

Commenced operations

1981

Major production items

Ceramic plates for burners, Industrial burners,
Functional coatings, and others

Acquisition of ISO 14001 certification

January 2006

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

2,199.3

0.0

0.0

555.7

0.0

0.0

0.0

0.0

4.1

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

1,677

1,067

2.3

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

267.5

58.4

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

209.1

78.2

Substances Subject to the PRTR Law
NumberClass I designatedchemical substance
name*(Unit: kg)

Amount of emission/discharge
Handling
amountDischarge
into public
watersEmissions
into the air

Discharge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers

53

Ethylbenzene

1,700.0

1,400.0

0.0

0.0

0.0

0.0

80

Xylene2,500.0

2,200.0

0.0

0.0

0.0

0.0

180.0
1.4

300

Toluene12,000.0

12,000.0

0.0

0.0

0.0

0.0

54.0

412

Manganese andits compounds

1,800.0

4.0

0.0

0.0

0.0

0.0

950.0

*As regulated by the Pollutant Release and Transfer Register (PRTR) Law

Water Discharge
Substance
pH

Regulation value
5.8 - 8.6

Actual value

Voluntary

MaximumMean

5.8 - 8.6

7.4

discharge to: Kani River* Waterstandard:* Water discharge
River discharge standard
Theamountofdischarge:
m /day* pH: Concentration of hydrogen
ions* BOD: Biochemical oxygen demand*(mg/l)
oxygen demand* COD: Chemical(mg/l)
SS:
Concentrationof aqueous*
suspended solids (mg/l)
3

7.0

BOD

15 (10)

15

9.9

5.1

COD

160 (120)

30

7.0

7.0

SS

30 (25)

30

4.0

2.9

*(

)

Daily average70CSR Report 2018

Supplemental Data

Supplemental Data 12: Major Site Report 2018
Noto Tech Co., Ltd.

Target period: April 1, 2017–March 31, 2018

Location

Nakanoto-machi, Kashima-gun, Ishikawa

Business

Manufacture of gas equipment components

Commenced operations

1990

Major production items

Enamel components, Gloss enamel countertop,
Resin components,
Remote controllers for bath filling systems

Acquisition of ISO 14001 certification

January 2007

Energy Use
Electricity(MWh)City gas (13A)(Nm 3)

Methane gas(m 3)

LP gas(t)

Butane gas(t)A-type heavy oil(kl)Kerosene(kl)Light oil(kl)Gasoline(kl)

2,533.7

0.0

0.0

922.6

0.0

0.0

0.0

0.0

6.8

Emissions into the Air
Scope 1(tCO 2 e)

Scope 2(tCO 2 e)

NOx emissions
(t)

2,779

1,622

3.4

Discharge of Waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)1,985.4

314.6

Amount ofintermediate
processing of waste
(t)
50.6

Amount of recycled
waste
(t)

Recycling
percentage(%)

1,620.2

81.6

Substances Subject to the PRTR Law(Unit: kg)

NumberClass I designatedchemical substancename*Amount of emission/discharge

31

Antimony andits compounds

11,100.0

0.0

0.0

0.0

0.0

0.0

0.0

71

Ferric chloride

4,700.0

0.0

0.0

0.0

0.0

0.0

0.0

309

Nickel compounds

1,300.0

0.0

2.0

0.0

0.0

0.0

660.0

405

Boron compounds

9,600.0

0.0

160.0

0.0

0.0

0.0

5,100.0

Handling
amountEmissions
into the air

Discharge
into public
watersDischarge into
the soil at therelevant office

Amount of transfer
Landfill at
the relevant
officeTransferoutside therelevant officeTransfer
to sewers*As regulated by the Pollutant Release and Transfer Register (PRTR) Law
Water Discharge
Substance
pH

Regulation value
5.8 - 8.2

Voluntary
6.0 - 8.2

Actual value
Maximum

Mean
7.1

discharge to: Nagaso River* Waterstandard:* Water discharge
River effluent standard
Theamountofdischarge:
m /day* pH: Concentration of hydrogen
ions* BOD: Biochemical oxygen demand*(mg/l)
oxygen demand* COD: Chemical(mg/l)
of aqueous* SS: Concentrationsuspended solids (mg/l)* ( ) Daily average
3

7.0

BOD

40 (30)36 (27)

6.0

4.7

COD

160 (120)140 (100)

14.0

10.8

SS

40 (30)36 (27)

2.0

1.5

71

CSR Report 2018

Certification Acquisition Status

Certification Acquisition Status
Environmental Management System International Standard [ISO 14001:2015]

Rinnai

DomesticGroup
companies

OverseasGroupcompanies

Location
Research and Development Headquarters
Production Engineering Division
Oguchi Factory
Seto Factory
Environment Division
Quality Assurance Headquarters
Head OfficeKansai Branch
Logistic Control Office
Kanto Branch
Chugoku sales office
Rinnai Parts Center
Kyushu Branch
Hokkaido sales officeNiigata sales office
Tohoku Branch
Shikoku sales office
Higashikanto sales office
Kitakanto sales office
Akatsuki Factory
Gastar Co., Ltd.
Rinnai Technica Co., Ltd.
Yanagisawa Manufacturing Co., Ltd.
Rinnai Precision Co., Ltd.
Japan Ceramics Co., Ltd.
RT Engineering Co., Ltd.
RB Controls Co., Ltd.
Noto Tech Co., Ltd.
Rinnai Korea Corporation
RB Korea Ltd.
Shanghai Rinnai Co., Ltd.
Rinnai Brasil Heating Technology Ltd.
Rinnai New Zealand Ltd.

Certified Year/Month
October 1997
October 1997
October 1997
December 2000
December 2000
November 2003
December 2008
May 2010
May 2010
May 2011
May 2011
May 2011
April 2012
April 2012
April 2012
May 2013
May 2013
April 2014
April 2016
March 2018
October 2001
December 2003
June 2004
December 2005
January 2006
March 2006
March 2006
January 2007
July 1997
October 2006
December 2008
June 2011
July 2013

Environmental Management System "Eco Action21"
Location Name
DomesticGroup
companies

Techno Parts Co., Ltd.

Certified Year/Month
August 201172

CSR Report 2018

Special Issue 02:Promoting a “Zero Defects” Policy to Ensure Customer Safety and Peace-of-Mind

Special Issue 02 [Safety and Peace-of-Mind Initiatives]

Promoting a “Zero Defects” Policy to Ensure Customer Safety and Peace-of-Mind
Connection with SDGs

■ For Continued Safety and Peace-of-Mind
Large mishaps can occur when heat-energy appliances such as gas appliances have even small defects or breakdowns.
The Rinnai Group believes that “Quality is our destiny.” Accordingly, we employ quality craftsmanship to offer our customers safe and secure products.
We also aim to create products that ensure safety and peace-of-mind throughout their lifecycles. Accordingly, eachdepartment is intensifying its quality-improvement initiatives in a groupwide effort to produce zero defect products.
The Rinnai Group considers consumer safety and product quality improvement to be two priority CSR material issues
and is promoting a target of zero defects that result in recalls. In fiscal 2018, we announced one recall due to a productdefect and, since February 2018 have been conducting free inspections and component replacement on some models
of our bathroom heater and dryer systems produced between June 2001 and January 2009.
We are thorough in our efforts to prevent recalls due to defects but in the event that a recall does occur, we will makecustomer safety and peace of mind our highest priority while we aim for a swift solution and share information regarding
issues between departments to prevent a recurrence.

Free Inspections and Component Replacements for Our Bathroom Heaterand Dryer Systems
An extremely remote but possible fire hazard was detected in 33,147 units of bathroom
heater and dryer systems that we produced between June 2001 and January 2009.
When this defect was identified, we conducted free inspections and component
replacement on those systems.

Bathroom heater and dryer system subject
to recall73

CSR Report 2018

Special Issue 02:Promoting a “Zero Defects” Policy to Ensure Customer Safety and Peace-of-Mind

The Rinnai Group notifies customers about products affected by recalls through press releases and announcements
printed in major morning newspapers. We also establish toll-free hotlines and publish recall information on our website. If
we know where possibly defective units are installed, we let customers know about recalls via direct mail or by delivering
flyers. With these free services, we thoroughly inform our customers and ensure that they can use our products safely.

■ Developing Products to Ensure Safety and Peace-of-Mind
Gas appliances entail various risks, such as gas leaks, incomplete combustion, burn injuries, and fire disasters. It is
important to understand how gas appliances can be made safe by eliminating these risk factors. Rinnai’s appliances areequipped with many types of safety equipment including the safety shut-off devices and frying oil fire-preventing temperature sensors in its gas burners and the CO sensors installed in its water heaters with special installation conditions.
The Rinnai Group’s design division prioritizes safety starting from the design stage. With prevention as our foundational
mindset, we strive to create products that are safe throughout their lifecycles. Related efforts include creating safety
equipment that functions in a variety of operating environments, manufacturing products that maintain safe performanceover long periods of use, and producing “fail-safes” that shut off devices should they happen to break down. Additionally,
we conduct many different kinds of product tests based on strict evaluation criteria as well as analyses utilizing simulations. The Company has constructed a system in which it verifies the results of these tests and analyses via conference
and then proceeds to the next step, aiming to completely eliminate defects caused by flaws in design.

■ Ensuring High Quality with Our Craftsmanship
Rinnai concentrates on enhancing manufacturing quality by emphasizing quality control activities and quality-oriented proposals. We
search for unnecessary or wasteful manufacturing processes andsystematically work them out, aiming to improve our manufacturing
efforts on a day-by-day basis. In addition, the Rinnai Group bases its
craftsmanship on its philosophy of developing human resources. We
train human resources that can continue implementing the ideologies,
techniques, and technologies that Rinnai requires from its employees.
Rinnai distributes its ZD Manufacturing Activities brochure, which
consolidates the Company’s basic rules concerning quality, to all Group
employees involved with domestic manufacturing. We continuously
revise our quality assurance rules and countermeasures when we
discover flaws or defects and create new rules to prevent mistakes
from recurring. In addition, we promote the transmission of ourtechnology from generation to generation and push for stable quality
assurance. Finally, we also offer long-term training in Japan for local
employees working at our overseas bases. By offering this instruction,
we have created a system through which employees can study theCompany’s craftsmanship and create high-quality products that offer
safety and peace of mind both domestically and internationally.

ZD Manufacturing Activities brochure74

CSR Report 2018

Special Issue 02:Promoting a “Zero Defects” Policy to Ensure Customer Safety and Peace-of-Mind

VOICE
Implementing Our Fundamental Concept of “Quality is Our Destiny” and Our Responsibilities as a Global Company

Kenji Endo

General Manager, Quality Assurance
Headquarters
Executive Officer

We promote the fundamental belief that “quality is our destiny,” and all employees undertake their
daily tasks with high moral values and a strong sense of responsibility. We continuously strive forself-improvement while maintaining a sense of pride in our work so that all employees conduct
themselves with professionalism and fulfill all of the responsibilities of their respective workplaces.
The Rinnai Group asks all employees to maintain this professionalism, including manufacturingpersonnel, who are involved directly with craftsmanship, and the people in sales, development,
and other divisions that are involved indirectly.

The Group strives to create a workplace culture in which employees perform their duties with quality as their top priority.
We pursue this goal both in theory and by improving skills training to achieve consistently high quality. Rinnai tailors quality
training, implementing diverse and varied quality improvement activities that help employees perform their duties reliably
and release better products.
Manufacturing critical components internally is a cornerstone of our craftsmanship and we equip our products withthem after fully applying our specific skills and technologies. We also uniquely customize our manufacturing facilities sothat they can be used with masterful efficiency and do not produce defects. Of course, we use equipment to create our
products but it is people that control this equipment and maintain it in top condition. Indeed, we ultimately achieve humanresource cultivation through the pursuit of quality.
Moving forward as a global company, we will continue to offer even safer and more convenient products to customers
worldwide. All of our divisions and employees will continue working together to ensure the highest possible quality.

75

CSR Report 2018

Special Issue 02:Enhancing Maintenance and Inspection System of Long-Term Use Products

Consumer Safety Initiatives:

Enhancing Maintenance and Inspection System ofLong-Term Use Products
Connection with SDGs

■ Measures Aimed at Securing Product Safety for Our Customers
In April 2009, Rinnai put its product safety inspection system for long-term use into effect to comply with revisions to theConsumer Product Safety Act. We have begun offering notifications regarding (fee-based) legal compliance inspections
for customers who registered their products in accordance with this system once they reach their 10th year of use.
This system aims to encourage customers to have their products appropriately inspected and maintained before they
deteriorate and failure rates rise. In accordance with laws and ordinances, we provide guidance regarding optional safety
inspections for products that are not targets of legal inspections, such as our outdoor water heaters. Additionally, we
recommend that customers who regularly use target prodMaintenance and Inspection
ucts receive inspections and make sure they understand
System of Long-Term Usethat these products have standard lifespans.
Products
Rinnai began notifying customers about inspections andtheir timings in February 2018, when this system enteredits 10th year. We conduct notifications through postal mail,email, and with time stamp* features in our products.
As we begin full-scale inspections in accordance with our
product safety inspection system for long-term use, we arealso striving to enhance our maintenance check initiatives
and working to improve operational environments so that
our customers can utilize our products safely.

Product safety inspection
system for long-term use
Legal inspections
conducted in accordancewith the Consumer Product
Safety Act

Safety inspections
conducted under the
product safety inspection
system for long-term use

Heat source device for water heating systems(FF-type) added to target products in July 2011

The Consumer Product Safety Act requires
owner registrations and (fee-based)
inspections of products marked as “specified
maintenance products” to prevent mishaps
due to degradation.

To prevent product mishaps due todegradation, we recommend that ourcustomers register and receive (fee-based)
inspections for products with “safety
inspection marks,” in accordance withlaws and ordinances.

* Time stamps: A lamp display or similar feature installed on devices that notifies customers it is time for an inspection after 10 years or an equivalent amount of general use.

76

CSR Report 2018

Special Issue 02:Enhancing Maintenance and Inspection System of Long-Term Use Products

Rinnai Products Affected by the Product Safety Inspection System for Long-Term Use

Indoor instant gas water heater

Indoor bath heater with gas burner

Built-in dishwasher

Course of Events Leading up to Inspections under the Product Safety Inspection System for LongTerm Use
Customer receives an explanation
regarding the system at time ofpurchase

1

2

Explanation
regarding thesystemOwnerregistration

A notification regarding inspection
timing is mailed to the customer (viastandard mail or email)3
Notification of
inspection

Owner registration conducted by thecustomer (via standard mail or online)

4
Application
for inspection

Staff member records necessary
information when the customer
applies for an inspection via
telephone5
Processing of
application

Customer requests inspection via a
postcard enclosed with the inspection
notification or by Internet or telephone.

6
Inspection

Personnel visit thecustomer’s homeand conducts
inspection on theappointed day

The Rinnai Group aims to enhance its maintenance check system, which employs qualified personnel to conduct appropriate inspections. At the same time, we offer unique services, such as extending product warranties for customers who
registered their household hot-water equipment with us for an additional three
years. We are also striving to make it possible to inform even more customers
about inspections.
From 2016 until 2017, before full-scale inspections began, we performed
updates on our maintenance check management system. These updates
improved our system, allowing us to smoothly respond to customer demandby creating a central management that can handle individual customers’ needs.
Full-fledged inspections begin in fiscal 2019, and we plan to work to achieveeven further customer understanding regarding product inspections. To thisend, we have created an Inspection System Handbook and released it publicly
through our website.
Additionally, the Company will further inform customers about its inspection
system by offering consultations through a maintenance check call center.
This initiative will help prevent mishaps caused by product degradation.
Inspection System Handbook

77

CSR Report 2018

Consumer Safety

Consumer Safety■ Making Possible Safe and Healthy Lifestyles
Tabletop with Si Temperature Sensors Prevent Fires
Tabletop gas stoves are the source of most fires that occur in the home, and it
is said that in Japan many such fires are caused when using oil to deep fry theJapanese dish tempura. Kitchen fires caused by tempura oil sometimes spread toother rooms. They not only destroy precious assets, but in a worst-case scenario
they can lead to fatalities.
To help prevent kitchen fires in Japan, it has been legally mandatory for all burners
on gas tabletop stoves made after October 2008 to be fitted with safety sensors.
These gas tabletop stoves with sensors are called “Si sensor stoves.”

SensorSi sensor stove

As a manufacturer with a large share of the gas stove market, Rinnai believes it has fulfilled its responsibility by promoting
the widespread adoption of such products that offer enhanced safety. Because of the long replacement cycle for gas
stoves, many customers are unfamiliar with the safety provided by Si sensor stoves.
To encourage customers to consider replacement, we provide information on the safety of Si sensor stoves throughvarious means, including exhibitions, catalogs, and the Rinnai website.

Information about Si sensors on gas built-in hob (stovetops) catalog

Providing Information Smoothly through the Internet
With the proliferation of smartphones and tablets, we provide various information via our corporatewebsite and product information website.
In 2016, our corporate website was renewed and improved to modify the Inquiry and Support pagein a simple format, and to display those pages frequently visited such as Office List as a top page,etc. We also implement optimal display for viewing on mobile devices such as smartphones, andstrive to provide information smoothly in consideration of the Internet use environment.

■ Disclosure of Information on Safety
Notice Regarding Product Safety
The wear and deterioration of parts that occurs
when products are used for a long time can lead tofires and injuries. Incorrect use is also dangerous
as it can cause breakdowns and injuries to users.
To ensure safe use by our customers, we label
our products and provide information in user
manuals to warn about incorrect use and how to
avoid accidents arising from careless use. Specificexamples are also published on our website, where
we provide clear, easy-to-understand information
on how to prevent accidents.
Important notice regarding product safety

Problems that could be caused by incorrect usage

78

CSR Report 2018

Consumer Safety

Disclosure of Information on Accidents Involving Our Products
In the event of a serious accident involving one of our products, we immediately inform theauthorities as required by law. We also actively disclose information directly to customers on
our website in order to alert them as soon as possible and keep them appropriately informedin light of the severity and frequency of the type of accident concerned.

Information on accidents
involving our products

CSR Report 2018 Inquiry Response and Support System

Inquiry Response and Support System■ Customer Satisfaction Policy
In keeping with our corporate philosophy that “Quality is our destiny,” we aim to respond sincerely, promptly, and appropriately to customer requests and queries, and to provide reliable services that deliver satisfaction and peace of mind to thecustomer.
Fundamental Policy
1 . We—that is, any department of our Company— identify comments and requests from our customers as our top
priority.
2. We understand that customers’ complaints are addressed to the entire Company and the whole organization shallbe responsible for them until the cases are closed.
3. We take customers’ comments seriously and share them within the Company to utilize as precious information to
improve our products and services.
4. We always abide by laws and regulations and we do not give in to unreasonable demands.
5. We strictly protect the personal information of our customers by observing related laws, regulations, and Rinnai’s
Personal Information Protection Regulations.

■ Customer CenterWe established the Customer Center in an effort to improve customer satisfaction even further, by accepting a range ofinquiries, comments, and requests, either directly from customers or via channels such as telephone or our website. The
numerous invaluable comments we receive are then fed back to the relevant division so that they can be used to identify
and rectify issues, in areas such as product development, quality control, sales, and service standards.
Customers● Repair / servicing request● Technical advice

Helpdesk● Product inquiries overall● Customer consultation

Customer Center

Daily reports

Analysis units

Analyze customer comments
Pinpoint and analyze key quality issues

EnrichservicingsystemResults of pinpointing and analysis

Corporate officers andrelated divisions

Use feedback to enhance monozukuri ,Promote information sharing

We strive to incorporate customer comments into our products and services on a daily basis.

The Customer Center handles requests received from customers via our toll-free telephone number, website, and otherchannels. In fiscal 2018, we received approximately 960,000 calls from customers and around 8,000 comments via our
website.

79

CSR Report 2018 Inquiry Response and Support System

In fiscal 2018, 78% of customer survey respondents left comments praising our quick and courteous response to customer
inquiries.
In response to critical comments, we will provide guidance based on customer feedback and work to make improvements.

Criticism
22%

Praise 78%
Customer Center

Customer Feedback
Breakdown of fiscal 2018 customer inquiries by category
Others12%Components
1%

Kitchenappliances35%

Air-conditioning
appliances
6%
Industrial-use
equipment0%Commercial-use
equipment
1%

Water
heaters
45%

Together, water heaters (45%) and kitchen appliances (35%) accounted for 80% of customer inquiries.

Content of Fiscal 2018 Customer Inquiries
Other commentsor requests
7%
Replacement
purchases
12%
Catalog requests
1%Complaints
0%Construction
5%

Products
30%

Repair andcomponent
parts
45%

Breakdown of fiscal 2018 customer inquiries by content(1) Inquiries regarding repairs or expendable parts: 45%(2) Inquiries regarding product function: 30%(3) Inquiries regarding replacement purchases: 12%
The top three items accounted for 87% of all inquiries.

80

CSR Report 2018 Inquiry Response and Support System

Inquiries by Type of Equipment(1) Water heaters with heating systems: 34%(2) Dishwashers: 32%
Cocotte3%Campaigns
1%

Dishwashers
32%
Commercial-use gas
water heaters (No.50)
5%Range hoods
7%
ECO ONE
4%

Water heaters withheating system
34%
Clothes dryers
14%

Homepage Enhancement
Responding to customers who have told us that they want to be able to troubleshoot some issues for themselves, wehave added a Frequently Asked Questions (FAQ) section to our website.
81.1% of respondents praised our website FAQ. In particular, page hits rose for FAQ information regarding repairs.
Moving forward, we will further enrich our FAQ information and make it more informative, enabling customers to resolve
issues on their own.
Evaluation on Our Inquiry Handling
5,000

4,282
4,000

3,000

2,000

997

1,000

0

Favorable

Not favorable■ After-Sales Service
Our after-sales services are geared toward delivering peace of mind to users and ensuring everyday comfort for all ourcustomers.
Speeding Up After-Sales Service
We have around 630 service engineers repairing products across Japan. To ensure minimum disruption to our users,
customer service requests are confirmed via mobile terminal and we aim to complete inspections the same day or the
day after a service request has been made.
Evaluating Performance Based on Service Specialist Questionnaire Cards
We place a strong emphasis on customer satisfaction and are committed to meeting customer requests and answering
their inquiries precisely, swiftly, and faithfully in order to “deliver safe, reliable, and satisfying service.” When repairs are
performed, consumers are asked to fill in a customer feedback questionnaire to tell us how satisfied they were with the81CSR Report 2018 Inquiry Response and Support System

experience, and the results are fed back to the relevant departments. In fiscal 2018, a total of 24,000 questionnaires werecompleted by consumers, and average satisfaction was 94.5 (out of 100).
Customer Satisfaction after Repair Services
98.4

Condition of appliance after repairs

93.3

Pre-visit phone calls

94.7

Manners, attitude, and language

91.8

Greeting and presentation of ID card

92.4

Preliminary explanation of problem

98.3

Explanation of repair problem

91.6

Tidying up after repairs

95.0
94.6

Timeframe from the reception of to the completion of the repair
Comprehensive evaluation

88

90

92

94

96

98

100 (%)■ Supplies of Service Parts
As a rule, we keep gas appliance parts for 5-10 years (and in some cases for longer) after production ends. Being able todeliver these parts promptly when needed is essential to good after-sales service and ensuring that customers can get
safe, pleasant, and long use out of their purchases.
At the Rinnai Parts Center that stores and supplies parts, the process of picking, packing, and sending out parts is heavily
systematized due to the large numbers of parts handled. It is crucial that the right types and numbers of parts be supplied
on time. Improvements in quality are pursued in a range of ways, including by ensuring that work is performed in accordance with standard operation manuals that document work and pamphlets that lay down basic rules on quality.

CSR Report 2018 Inspection and Repair Services

Inspection and Repair Services■ Inspections Like a Yearly Medical Check-Up for Appliances
For a Long-Term Use Without Accidents
In April 2009, the Consumer Product Safety Act was revised and a safety inspection system for products in long-term
use went into effect. Some accidents linked to the deterioration of our products over long-term use have been reported.
To make customers realize that appliances, like most products, have a particular service life and to encourage customers
to have their Rinnai products inspected regularly, we send out the necessary information and extend advice through themaintenance and inspection call center. These efforts are aimed at preventing unforeseen accidents.
We enhance our maintenance inspection system with our qualified service specialists. In addition, we provide our original
services extending a warranty period to three years for the customers who purchased our home-use hot-water unit andcompleted customer registration. In April 2011, we also introduced a voluntary inspection system (Safety Inspection) for
our outdoor hot-water units, in accordance with the law. This system has been gradually expanded; for instance, indoor
hot-water and heating units were added to the subjects of legal inspection in July 2011. Currently, we began putting inplace an extended inspection framework in preparation for full-scale inspections in the near future.

■ Approach to Relations with Suppliers
Through inspections, we will enhance our customer support services.
Five Focused Points of Our Fundamental Stance
1. Good inspection (Good inspector, good handling, legal knowledge, and inspection report)
2. Look through our customer’s eyes (Usage of aged products, and reflection of customers’ comments on products)
3. Customer satisfaction (Appropriate and caring information offering)
4. Proposal to assure peace of mind (Proposal to bring peace of mind before a product breaks, not after it has broken)
5. Trust building (Showing our appreciation for our customers’ long patronage)82

CSR Report 2018 Inspection and Repair Services■ Efforts to Coordinate an Inspection System
To adequately implement inspection, our Product Inspection Center keeps improving its inspection system. In addition to
the legally required check points of an inspection system, we also set up voluntary monitoring items to facilitate a reliableinspection system.

■ Voluntary System Action Items and the Current Status
Action Items

Enhancement of provision of information
Enhancement of items
to be inspected
Inspection quality
improvement
Warning after theinspection

Rinnai’s Current Status
We post the detailed information on maintenance and inspection system for our products
for a long period of time on our website. The information includes the products that are out of
scope of legally mandatory products (specified products that require maintenance).
In addition to the items of which inspection is legally required (specified products that require
maintenance), we set safety inspection products including home-use outdoor gas hot-water
units, built-in-stoves, and gas fan heaters.
The inspection results of all items are checked to see if there is any judgment error to assure
the technology standards. The inspection completion rate is monitored all the time not todelay the inspection schedule.
When an inspection result concludes the prohibition of the use of a product, we will provide
the follow-up of the inspection by calling or writing to the user.

■ Overview of Our Maintenance and Inspection System
Maintenance and Inspection System
for Long-Term Use Products“Legal inspection” provided basedon the long-term
use product safety inspection system
Water heater withheating system (FF) typeadded in July 2011

“Safety Inspection”
provided based on thelong-term use product safety
inspection system

Under the Consumer Product Safety Act,
products with a Specified Maintenance Productmark require owner registration and paid
inspection service to prevent serious accidents
due to the deterioration of the product caused
by long-term use.

In accordance with laws and regulations, Rinnai
recommends owner registration and paid
inspection service for products with a Safety
Inspections mark to prevent serious accidents
due to the deterioration of the product caused
by long-term use.

For the safe use of products, we recommend an inspection 9-11* years after production.
* For home-use appliances (Professional use: 2.5-4.5 years)
DesignedStandard
Service Life*
10-year product3-year productTarget Product
Home-use gas
hotwater units
Electric dishwasher and dryer
Commercial-use
indoor-type gas
hot water heaters

Inspection
PeriodProduction
Purchase

9-11 years
after
production

Registration

2.5-4.5
years after
production

1

0-6 Months
in Advance

Inspection
PeriodNotification2

Inspection

Suspensionof useWhen you receive a notice, please apply for an inspection.
You can also request an inspection during the time of 1 and 2.

“Designed standard service life” is a period that a product should be safely used without any problems under normal circumstances with proper handling and maintenance. This isdefined for each appliance. Please note that this is not the same as free warranty period. In addition, products that fall outside the scope of legal inspection (specified maintenanceproducts) use the terminology, “Standard service life as designed.”

Users are encouraged to have their equipment inspected during the two-year inspection period. If we do not receive a
reply in response to the initial inspection notice, the user will be sent a repeat inspection notice by mail when there is one

83CSR Report 2018 Inspection and Repair Services

year remaining before the end of the inspection period, so that they can continue to use their equipment safely.
The period for legal inspection of commercial-use equipment produced in April 2009 started in October 2011, so webegan sending notices on the inspection to applicable customers. About 70% of customers who responded to thenotices applied for the inspection, suggesting their high interest in the inspection system. Accordingly, we will strengthen
measures for informing customers of the system, aiming for (1) a higher registration rate and (2) a higher rate of inspection
applications.

■ Maintenance and Inspection System of Long-Term Use Products
The Maintenance and Inspection System
of Long-Term Use Products started in April
2009 is a system to encourage the registration of users and charged inspection
for "specified maintenance products" that
may cause problems due to age-related
deterioration and may damage and may
give serious damage to the life or health of
consumers.

Rinnai Products Corresponding to Safety Inspection System
Indoor-type gas instant hotIndoor-type bath water
Dishwashers
water heaters
heaters with gas burners(built-in)(for city gas and LP)(for city gas and LP)

Flow of Maintenance and Inspection System of Long-Term Use Products
Suppliers

Owners

Always explain thesystem at time of saleor delivery

Listen to the
explanation
about the system

Owners (and Suppliers)
Registration

Owner’s Card
(packed withproduct)

RINNAI
Mail

OnlineRegistrationof changes
Registration

By phone

Information
management

Inspection
reminders sent
by mail toregistered

By card enclosed with notification
By phone
By card enclosed with notification

On-siteinspection■ Recommendation of Anshin Tenken (Safety Inspection)
In consideration of the Maintenance and Inspection System of Long-Term Use Products, we recommend Anshin Tenken(safety inspection) for products that fall outside the scope of the system.
Scope of the Anshin Tenken (Safety Inspection)• Outdoor-type gas water heaters
and bath water heaters (including• Gas heaters• Built-in-gas stoves
hot water and heating units, andheat sources only for heaters)
Gas water heaters
Gas fan heaters
Gas bath heating systems
Gas fan-forced heaters
Built-in-gas stoves
Gas heat source for water heaters
Gas stoves
Built-in-gas ovens
Gas heat source only for heaters
Gas dryers* Some products are out of scope.

84

CSR Report 2018 Inspection and Repair Services■ From Registration to Inspection
Based on data provided by registered users, we mail inspection notices* to the designated address when the relevant
inspection period approaches. We also carry out inspections for products that are already in use, with orders taken via our
Product Inspection Center.
* Products subject to inspection notices: Any gas hot-water unit with a user registration card attached■ Promotion of Owner Registration
User registration is the important “first step” to connect customers with Rinnai. Information regarding inspections is contained in our catalogs and on our website. We also actively encourage customers to register with us during repair visits
and other situations in which our staff have the opportunity to interact directly with customers.
Inspection Reminders Provided by Remote Controls and Indicator Lamps
We posted information on our website about the inspection reminder function that some of our products* come with. Thisfunction reminds users of legally designated “specified maintenance products” that their products are due for inspection
after the equivalent of 10 years of normal use, and users are alerted to this fact by their remote control, a blinking indicatoron the product, or similar means. This function also serves to encourage unregistered users to register and request an
inspection. This is just one example of our commitment to developing products that deliver peace of mind to the customer.
* Specified maintenance products other than water heaters for commercial use
In the Case of Registered Users
The user is sent an inspection notice through the mail shortly before an inspection is due.
In the Case of Unregistered Users
The inspection function notifies the user that an inspection is due. (Users can inquiry about user registration and inspection by telephone.)■ Customer Trends in Response to Inspections
Inspections are used as an opportunity to enhance customer support. When our engineers visit, for example, users are
asked to fill in a questionnaire to help us constantly monitor customer opinion of our inspection services and identify areas
for improvement.

■ Free Inspection of Small Open-Type Water Heaters
In 2007, one of our small open-type water heaters malfunctioned and caused an accident. To prevent a reoccurrence of
this kind of accident, we continue to offer free inspections to customers using small open-type water heaters, including
the RUS-5RX, produced between July 1991 and January 1995, and the RUS-51BT, produced between May 1994 andJanuary 1997.
Expanding eligibility for inspections: We carry out inspections for small open-type water heaters that do not have an“inspected” sticker affixed, even if they were manufactured before April 2009 (including two models that have experienced problems).
Precautions after inspections: In cases where usage of a product is prohibited as a result of an inspection, we follow up on
the relevant inspection at a later date, by telephone or in writing.
Information on affected products and contact details for inquiries are provided on our website.

85

CSR Report 2018

Communication with Customers

Communication with Customers■Developing More Intimate Communication through the Living Information Column
The Rinnai Group established R.STYLE column (“Rinnai-style column” site) in November 2017. This site provides pertinent
living information with the goal of achieving ongoing communication with customers who use Rinnai products. In creating
the site, the Company placed particular importance on making it easy to read on smartphones and while moving around,so its columns can be freely read during periods of relaxation in between household chores.
The site provides wide-ranging content closely related to our daily lives, containing diverse information related to cleaning,tidying up and storage, cooking, and laundry and ironing. It also contains columns that aim to eliminate concerns regarding housework, and to share specialized expertise and information
regarding new discoveries.
Aiming to raise reader satisfaction, we have adopted new indicatorsthat allow us to analyze the degree of satisfaction for every article
in each column on the site. By analyzing each article, we are able toseparate those with high degrees of reader satisfaction and those withlow degrees and determine the differences between them.
The Group will continue to endeavor to operate a column site that offers
rewarding and satisfying articles which will always bring its readers
back for more.

■ Customer Satisfaction Review, and Improvement of Products and Services
Through communication with users, we strive to improve our products and services by understanding customer satisfaction, complaints, and points of improvement toward our products.
We receive many inquiries from customers on our website requesting a high powered yet simple stove. In December
2015, we released the Vamo., tabletop gas stove available exclusively on the Internet to meet this need. We ask customers
who have purchased the product to complete a survey to help us improve our products and services.
Among the results of the survey regarding “Reason for purchasing,” “I like the simple designs” and “I like burners withstronger heat power” were the answers given most, showing that this product planning was successful in gaining customer acceptance.
Reason for Purchasing Vamo. (Single Answer) Top 10
0

50

100

150

200

250 (Number of respondents)

I like the simple designs.
I like burners with stronger heat power.
I like the industrial designs.
I like a stove without the grill.
I like the material (stainless steel) of the body.
Function was simple
Seemed like it’s easy to clean
Similar to the previously used stove
It fits the atmosphere of the kitchen (coordination).
Seemed like it’s easy to adjust from high to low heat[Population subjected to survey] Customers who have purchased Vamo. through dedicated website[Survey period] November 17, 2015 to March 31, 2016 (Initial sales period: November 17, 2015 to November 30, 2015)■ Taking Advantage of the Internet to Enhance Customer Support
We supply care products and user replaceable parts via our R.STYLE online shopping site to help our customers get themost out of their purchases for as long as possible.
The site started in October 2006 an online shopping site for genuine parts for Rinnai products. The range of offerings isbeing constantly expanded in response to direct customer feedback and now includes cleaning and kitchen supplies

86CSR Report 2018

Communication with Customers

that are highly compatible with our products and original products available only
through R.STYLE.
In March 2017, the number of registered members exceeded 550,000, providing
even more opportunities for contact with users of our products. To keep in touchwith members’ needs, we conduct online questionnaires (annually more than
20 times) and use the data obtained to design products that meet these needs
and resolve issues that they raise. We will continue to expand direct contact withcustomers in our quest to deliver better service.

R.STYLE online shopping site

■ Using Online Customer Feedback Internally to Make Improvements
The extensive feedback provided by customers using the R.STYLE shoppingsite is shared between divisions via our internal Sunflower Messenger site sothat it can be analyzed and addressed to enhance quality, expand service andsupport, and drive other improvements. As of the end of fiscal 2017, we havereceived a total of 67,248 comments to date.

Sunflower Messenger■ Providing Useful Everyday Information via Social MediaWe also launched an official R.STYLE Facebook page in June 2014. The aim
is to create more points of contact with new customers, by providing usefuleveryday information in areas such as cleaning and storage, as well as theaforementioned daily recipes.

The R.STYLE Facebook page87

CSR Report 2018

Communication with Business Partners

Communication with Business Partners■ Rinnai Group Purchasing Policy
To grow along with our suppliers, we emphasize transactions based on a fair and impartial assessment and selection
process and respect for laws and regulations and corporate principles, in accordance with the Rinnai Group Purchasing Policy.
Rinnai Group Basic Policy“We will give equal opportunity to all companies at home and abroad and undertake fair evaluations
to procure excellent parts that meet our requirements.”■ Rinnai’s Stance on the Relationship with Its Business Partners
Our suppliers provide us with the raw materials andmany of the components that go into the products wemake. They are business partners indispensable tothe creation of products that attract consumers to the
Rinnai name. At Rinnai, we believe that building stable,
long-term relationships with our suppliers and growing
with them as they grow with us is vital to the creation of
better products.

Rinnai

Rinnai’s Stance on the Relationshipwith Its Business Partners
Provideappropriate
information

Monozukuri
support

Re s
a
ate

t t racti

u lt s

ro
ve p

p
Coo

C re
Improve quality,
reduce costs

duc

e ra

Co-existence,
co-prosperity(Win-Win)ts

ti o nProducts, monozukuri
proposals
Suppliers■ Realization of Fair-and-Square Transactions
In accordance with the Rinnai Code of Conduct in the Rinnai Group Code of Ethics, our supplier acceptance process isapplied uniformly, whether the company is a long-time supplier or seeking to become a supplier.
Our evaluations are fair, giving equal opportunity to any and all companies with the right stuff, whether at home or abroad.
Essentially, the divisions involved in procurement—that is, divisions responsible for technology, quality, and purchasing—consider all factors, including quality, price, and delivery as well as the potential supplier’s technological capabilities, safety,
and its environment-oriented activities, in reaching an impartial, well-considered decision.

■ Communication with Our Business Partners
We provide opportunities for suppliers to learn more about our perspective on
quality and the basis of monozukuri at Rinnai through annual events including a
get-together at the beginning of the year and policy information meetings andregular meetings of the Supplier Liaison Group. These meetings are also ideal
for gathering information through suggestions from suppliers and promoting
dialogues based on submitted questions. Indeed, these meetings promote astronger commitment to teamwork.
We are similarly committed to using online resources to effectively and quickly
coordinate information with as many suppliers as possible, using an interactive
information-sharing tool called R-LINE to enhance our preparedness forbusiness risk during a disaster.

Policy information meeting88

CSR Report 2018

Communication with Business Partners■ Improvement Activities with Business Partners
We organize Level-up workshop events with our business partners to provide
guidance on improving capabilities and training next-generation leaders. The
aim is for business partners to appreciate the benefits of improvements, throughdirect guidance with on-site operations for instance, and to improve their level ofmonozukuri (manufacturing).

Level-Up Workshop■ Measures for Risk Management and Stable Procurement
We are committed to risk management and stable procurement of parts and materials, so that we can ensure customer
satisfaction and reliably supply the safest possible products. With changes in demand and market globalization, however,
our supply chain is increasingly expanding all over the world, making it virtually impossible to reduce risks on our own. It istherefore essential to take joint measures with our business partners.
We are currently implementing joint measures such as dispersing production sites to guard against unforeseen circumstances, gathering information on secondary processors and companies carrying out later processing, maintaining
information on dies, leased equipment, and other assets, and formulating business continuity plans (BCPs) with ourbusiness partners.
We are also able to quickly arrange alternative production and equivalent parts in the event of a natural disaster or othersuch unforeseen circumstances, so that we can minimize any impact on production activities.

■ Promotion of Acquisition of ISO 9001 and ISO 14001 Certifications
To ensure the provision of high-quality, safe, environmentally friendly products, all our domestic factories acquired ISO 9001
certification (for quality management systems) and ISO 14001 certification (for environmental management systems).
We also ask our business partners to understand our approach to quality and the environment and to obtain ISO 9001
and ISO 14001 certifications or establish equivalent management systems, and we help them to operate the systems.

■ Communication with Logistics Partners
We hold a logistics policy information meeting to help service providers gain deeper insight into the logistics policy, andtargets and measures of the Company and logistics department. In addition, we arrange partnership meetings to reduce
environmental impact in relation to the transportation and storage of products and to improve quality. We also visit
partners’ working sites regularly to share issues with them and help them make improvements.

■ Forklift Contest
We have been hosting in-house events such as a Lift Competition and Screw Competition for some of our business
partners to participate, expecting an improvement of their skills andmutual exchange opportunities.
The seventh forklift contest was held at our Integrated Logistics
Center in May 2017, and a total of 32 competitors from the Rinnai
Group and our logistics partners took part.

Forklift contest

89

CSR Report 2018

Communication with Employees

Communication with Employees■ Basic Policy
We are working to develop a cheerful and satisfying work culture that motivates employees and helps them maximize
their potential, and a workplace environment that keeps employees safe and healthy.
We offer both personnel system support and various health and family-friendly fringe benefits to motivate employees andprovide them with greater job satisfaction. We also strive to create a homely atmosphere and to improve and maintain asafe and healthy workplace so that every single employee can get the most out of his or her abilities.
We believe that motivation, job satisfaction, and space for growth hold the keys to employees’ development and maximization of their potential. To further raise employee satisfaction, therefore, we are pursuing action in the following four areas.
( 1 ) Provision of opportunities for personal growth (level-specific training, specialist training, practical on-the-job (OJT)
training, optimal placement, rotation)(2) Fair and acceptable assessment and remuneration (performance evaluation, face-to-face interview system, improvement of salaries and allowances)(3) Development of a homely working environment (improvement of Company buildings and environment, regular events,
support for club activities, inter-division collaboration)(4) Fringe benefit support including family-friendly benefits (optional fringe benefits, health support, Company pension,
events arranged with employees’ union)

CSR Report 2018

Personnel Training

Personnel Training
We defined our fundamental human resources policy as “Nurture and encourage our employees to have a high level ofmorality and keep challenging their own goals continuously making effort.” We guide and train our employees to be able
to demonstrate their initiative to drive the Company while giving priority to our Corporate Philosophy embodied in our
Company Motto, “Harmony, Spirit, and Sincerity”, which Rinnai has been pursuing since its establishment in 1920, and ourCorporate Mission, “Rinnai utilizes heating to provide society with a comfortable way of life.”
We provide our employees with numerous opportunities to grow as an individual, such as rank-specific training programs,
specialization courses, OJT training, and a rotation training program, which covers workplaces at home and abroad.

■ OJT Personnel Training
We position human resources as our most important management resource, and offer personnel training to assist
employees to fully demonstrate their capabilities.
Our main training is OJT, wherein a supervisor guides his or her teammember through an actual job. In addition, we provide a rank-specifictraining program, which supports the improvement of each employee
as an individual by grouping them according to job responsibility, anda specialization course, which promotes our employees to be highly
specialized in their area. These three programs form three pillars of
Rinnai’s training system. Moreover, we are conducting a level-up training
program for Group leaders who have been promoting our business plansince fiscal 2011.

Three Pillars of Rinnai’s
Training System

OJT

Rank-Specific

Specialization
CourseThe Rinnai Spirit

90

CSR Report 2018

Personnel Training<Major Rank-specific Training Programs>
Training

New employee training program

New employee follow-up training

S4 level-qualified employee training

M6 level-qualified employee training

M6 level-qualified
employee follow-up training

Reviewer training follow-up training

Subject

Content
Basic training for professionals(manners, awareness as aprofessional), Fundamental training
for Rinnai employees (Company
New employees
overview, the Rinnai Spirit, corporate
ethics, personnel system, policy on
quality and environment), IT skills andmental healthTraining for increasing motivation
Generalists (Clerical and sales
to work and raising professional
employees)
awarenessin their 1st year, Generalists(Reconsolidation of what was(technical employees)
learned in the new employee training
in their 2nd year, clerical employees
program; employees who joined the(technical employees) in their 1st year Company in the same year gather
and share information about theircurrent status)
Reconsolidation of fundamentals(corporate ethics and management
policy), Recognition of his or her
S4 level-qualified employees
characteristics (to improve thestrength) and the reinforcement ofawareness of management (creationof management plans)
Reconsolidation of corporate
ethics and management policy
Understanding duties of managerial
M6 level-qualified employeessupervisors (rules of employment,
Labor Standards Act, handling of
problematic employees), Understanding of management
Reaffirming shared goals
M6 level-qualified
Reconsolidation of values concerning
employees
managers’ actions, Reviewing theefficiency of the entire workplace
Review of personnel systems
Employees whose duties require・Understanding of objectives andthem to interview subordinates andmethods of performance reviews
review their performance
・Improvement of interview skills
through interview practice

New employee training program

President’s speech■ Career Development Review and Support
Visualizing skills of individual employees and guiding their growth (capability evaluations and feedback of the results in
one-on-one interviews)

91

CSR Report 2018

Personnel Training

For each training program to function effectively, it is essential to match the capability required by the organization and thegoals set by the employees.
Therefore, Rinnai prepares a “Skills Map” and a “Capability Evaluation Sheet” to define the skills and capabilities requiredby each department and to clarify the goals and capabilities the Company expects the employees to achieve. Basedon these tools, our employees understand their current roles and responsibilities. Employees also have a one-on-one
interview with their supervisor, during which they receive the results of their performance evaluation and are informed of
the Company ,s future expectations of them. They then set up their own goals to challenge every year.
,
Supervisors, to actively perform the responsibility to navigate the growth of their staff, carefully review each staff s progress and contribution (performance evaluation) and adequately inform the staff of the results of the evaluation throughone-on-one interviews or performance appraisal feedback meetings.

■ Support for Self-directed Development
To support each employee to acquire higher specialist knowledge, skills, and culture and support their growth as anindividual, we actively provide programs including foreign language education, correspondence courses, external open
seminars, technical proficiency examinations, license acquisition courses, and communication with people in different
companies/industries. We provide rank-specific training programs to create opportunities to be aware of aspects forstrengthening one’s sense of humanity. To employees who wish to develop themselves, we actively provide programs
including foreign language education, correspondence courses, external open seminars, technical proficiency examinations, support for attending national license acquisition courses, and communication with people in different companies/
industries.
In addition, for young employees who have a strong desire to work overseas, we arrange and operate a short-term
overseas working and training program that is available for them via application. This is to develop human resources thatcan globally demonstrate their capabilities working at our overseas locations. Currently, a total of six young engineers areworking under this program in the United States, Australia, Brazil, and Thailand. By providing our employees with opportunities to work at our overseas locations in this way, we promote development of human resources that can demonstrate
their abilities at a global level.

■ Development of Global Human Resources
We aim to develop human resources who can demonstrate their abilities beyond national boundaries and improve thecapabilities of Rinnai Group employees all over the world. Therefore, the management divisions, product development
divisions, and manufacturing divisions are developing their own training courses and OJT programs implemented via
employee exchange. We provide opportunities for Japan-based employees in their 20s (at the earliest) to be assigned
to overseas Group companies, which improves their ability to adapt to foreign cultures and their international businesssense through actual overseas work experience.
(1) Management Department
At the management division of the Head Office, we regularly visit our overseas locations to provide instruction on
management and accounting and to develop human resources. We also launch business reform projects when speciallyrequested. Under such projects, specialists from Japan develop local executives through planned visits to overseas
location that provide them with instruction on methods for improvement in a way that allows them to achieve results
through practical operations.
(2) Product Development, and Production Department
We actively promote human resource exchanges between Japan and overseas locations, with about 20 employees
participating each year. Staff members from our overseas Group companies receive OJT in Japan for about one year,
learning practical skills and what to improve at their own companies at the development divisions, factories, and management divisions in Japan. Japan-based employees assigned overseas practice product marketing and handling of
quality issues, as well as improvement of factories’ manufacturing and production systems. Through these activities, they
hand down the key themes that constitute our corporate culture and expertise on Japanese-style monozukuri and quality
assurance to local managerial staff.

92

CSR Report 2018

Personnel Training

From Our Employees Seconded Overseas (1)For about nine years, I primarily participated in the development of water heaters foroverseas use in the Water Heater System Development Office within the Research &Development Headquarters. After that, I was transferred to Rinnai America in March 2017and have been here since then. Over here, I mainly handle new product development
and provide support when product designs are changed. Other than that, I also engage
in a wide range of work not related to technical details, such as investigations ensuring
compliance with standards and regulations in the United States and collecting information
regarding other companies and markets. Responding to different ways of thinking
can sometimes be a struggle, but I always place great importance on communication
between Japan and the United States, so that we can smoothly develop our products.
Through my work and private life here, I am able to understand the local ways of thinking,markets, cultures, and customs by experiencing them firsthand. I have also been able to
Naoto Mase
Rinnai America Corporation
make new discoveries and learn many new interesting things. Moving forward, I want touse my overseas experience to contribute to Rinnai’s growth by striving to conduct thebest possible development, so that we can provide customers all over the world withappealing products.
From Our Employees Seconded Overseas (2)Two years have passed since I transferred to Shanghai Rinnai from the Overseas
Business Headquarters. This is my second assignment to Shanghai Rinnai. During myfirst, I studied management as a private secretary for the CEO (company president).
Now, I work in Shanghai Rinnai’s Sales and Planning Division and conduct property
sales, marketing, and AS support aimed at Chinese and Japanese developers. In
addition, I provide guidance and explanations for Chinese and Japanese customers
and conduct sales and integrated management with regard to imported products inthe largest six cities in which Shanghai Rinnai directly operates. These activities allow
me to feel fulfilled each day. Chinese business is complicated and sometimes requires
one to rely on connections. In many cases, what might be common practice in Japan is
not acceptable here. Furthermore, China has a large number of competing companies
with rising technological capabilities. In recent years, competition has grown more
Keita Ochikami
and more intense. Under these conditions, each day I study and think about how to
Shanghai Rinnai, Co., Ltd.
explain our products and proposals more clearly. Being a resident worker has given me
many opportunities to interact with and learn from management, superiors, and senior
employees. I want to make every possible contribution to improving results growing
our brand in the Chinese market, which holds many possibilities and inspires large
expectations.
From Our Employees Seconded Overseas (3)After entering the Company, I spent about 10 years in the Production Technology
Division, producing manufacturing equipment. Since September 2016, I have beenworking as a resident manufacturing employee at Rinnai Australia. When I wastransferred here, a full-scale internal production project for enamel storage-type water
heaters was under way and I arrived right in the middle of startup activities for the
project’s production line. I familiarized myself with the local area using the work experience I gained in Japan. At present, I am collaborating with the Australian staff daily tohelp further improve production profits. Moving forward, I want to experience different
cultures firsthand and find an optimal method of working that combines what I learnedin Japan with what I have learned here. I am conducting my work with this mindset, andAtsushi Noda
am keenly aware that this has largely contributed to my own personal growth.
Rinnai Australia Pty., Ltd.
In the future, I want to continue to grow together with the local staff, so that our production style in Australia becomes a model for others worldwide.

■ Succession of Monozukuri , the Spirit of Manufacturing
Training at the Production Technology Center
The Production Technology Center was established in March 2010 is a place to pursue leading-edge monozukuri , withand an emphasis placed on delving into core technologies. It is also a hub for developing human resources involved inmonozukuri activities at Group companies at home and abroad.

93

CSR Report 2018

Personnel Training

To pass Rinnai's monozukuri to the next generation, over 30 booklets of “Visual manual” were produced as a talentdeveloping support tool. Utilizing this tool, our staff who are qualified in various technical areas provides detailed training
on Rinnai's manufacturing technique accumulated from the past, for employees including trainees from overseas Group
companies.

Training

Visual manualTraining at the Production Technology Center
We have set up “monozukuri legacy stations” at each of our facilities to accumulate and maintain intangible assets, inthe form of existing processing technologies, newtechnologies and “frontline insights” established byexperienced employees. As well as giving newly
assigned employees the opportunity to learn thebasics of monozukuri (manufacturing), we use
stations as a means of sharing and conveying theessence of monozukuri and training employees inareas such as improving efficiency and reinforcing
Employee conduct display (Oguchi Factory) Coating training station (Seto Factory)
production management.
New Engineer Training
New employees, before their actual allocation to each department, receive on-site training at the Research andDevelopment Headquarters and Production Engineering Division as well as practical manufacturing training at factories
and production Group companies, and sales training at the nationwide sales offices to learn about the importance ofmonozukuri including product and technology development.

Studying the structure of a dishwasher

Studying the structure of plug of gas appliances Studying about gas combustion

94

CSR Report 2018

Work-Life Balance

Work-Life Balance■ Support for Work-Life Balance
For all Rinnai employees to perform well, attaining a sense of accomplishment and fulfillment balancing work andpersonal life for each lifestyle, we continue to enhance our personnel system to support all employees of any gender andnationality throughout their lives.
<Major Programs and Measures>
Program and MeasureChildcare leave

Childcare shortened work hours

Sick or injured childcare leave program

Extended family care leave

Family care shortened work hours

Family care leave
Work from home program

Come Back program
Measure to reduce working hours(Flexible working hours)
Measure to reduce working hours(No overtime day)Content
Employees living with and raising a child or children less than one year ofage may take a leave of absence from work until the child or children reachone year or one year and six months of age. (The leave of absence may be
extended until the child or children reaches two years of age, dependent
upon the conditions of the application for leave.)In the event that an employee is the caregiver of a child that hasnot beenenrolled in an elementary school, or is the caregiver of a family member that
requires nursing, the employee in question will be exempt from working late
shifts (10:00PM-5:00AM) with the exception of cases wherein the employ,ee s absence would preclude or inhibit the continuation of normal business
operations.
Employees may take a maximum of 10 days (20 days for employees with
two or more applicable children) of leave per year in half-day units to care forsick or injured children.
Employees may take a maximum of 10 days (20 days for employees with
two or more applicable family members) of leave per year in half-day units tocare for a family member in need of long-term care.
Any employee who is responsible for a family member that requires full-timeor nursing care may shorten his or her daily working hours, provided that aminimum of 6 hours are worked each day. This provision is possible for morethan once during three years from the starts of use of this program per suchfamily member.
An employee can take up to 10 days leave per year (20 days per year if two
or more family members require care).
The longest duration of “Work from home program” shall be one year per
application. Utilizing IT equipment, an employee may work partially or
entirely at home.
This program offers an employment opportunity to our former employees
who had to leave the Company for unavoidable reasons such as marriage,
childcare and familycare, or on his or her discretion.
Depending on work plan, working hours and work start/end time can be
negotiated.
Every Wednesday is set as “No overtime day” to encourage employees toleave early.

General Employer Action Plan
We draw and implement the general employer action plan (the fourth plan, from fiscal 2016 to fiscal 2020) based on the
Act on Advancement of Measures to Support Raising Next-Generation Children.

■ Working to Enrich the Lives of Our Employees’ Families
Rinnai aims to create workplace environments and climates that allow its employees to feel glad to be working for theCompany. We collect opinions regarding the Company from each workplace and hold regular joint labor management
conferences along with employee unions. The goal of these conferences is to make improvements to the Rinnai Group.
We move forward with improvements by sharing issues unique to each business location and conducting system revisions.

95

CSR Report 2018

Work-Life Balance

The Company has conducted activities aimed at promoting the use of paid leave, established a new regional allowancesystem, and held nursing care seminars. Rinnai also provides financial support for health enhancement events held byemployee unions, such as sport or bowling competitions and walking festivals. Finally, we collaborate with employee
unions to provide workplace tours to employees’ families at our development locations and factories. Through these
tours, we educate employees’ families about what we and their employee family members do.
< Major Programs in Rinnai Employees’ Association>
Item
Nationwide events in Japan

Training seminars by age group

Overview
Various events to promote health of our employees andtheir family members and communication including
bowling competition, barbecue picnic, and sports festivals
Training seminars focusing on “Education for the soul”
that supports employees to develop attractive personalities as members of society

Nationwide Events in Japan・Chubu Regional Sports Festival (Oguchi Comprehensive Sports Ground)・Walking Festival (Higashiyama Zoo and Botanical Gardens)
・Kanto Festival (Kasai Seaside Park)・Nationwide Barbecue (Hokkaido, Tohoku, Niigata, Hokuriku, Nagano, Shizuoka, China, Shikoku, and Kyushu)
Training seminars by age group
・Personal design training
・Life design training
・Self-management seminars
・Communication training for new employees

Promoting Activities that Value Relationships between People
Rinnai’s employee unions hold workshops, conduct recreational activities, and publish newsletters with the fundamental
concept of “strive for Company prosperity and pray for employee happiness.” In particular, the employee unions promote
activities that value relationships between people, engaging in initiatives aimed at allowing all employees and their family
members to feel glad they are part of the Rinnai Group.
In recent years, more Company locations have been holding workplace tours (familydays), which have received favorable reviews from participants. We feel that by introducing
workplace environments to family members, we can deepen their understanding regarding
the Company. Moving forward, Rinnai wishes to raise the motivation of all its employees and,through its daily activities, to build workplace environments that allow them work energetically.
Michihiro Hashimoto
Chairman of Rinnai Employees’
Association

96

CSR Report 2018

Industrial Relations and Human Rights

Industrial Relations and Human Rights
At the Rinnai Group, aiming to provide a work environment and culture where employees feel “I am happy to work at
Rinnai,” the Rinnai Employees' Association and the Personnel Affairs Division regularly convene the Labor-management
Council to confirm and share information on management policy, actual results, and comments from each workplace as aperiodic improvement activity.
Moreover, our basic stance toward human rights, the respect for each other,s personality, and the prevention of harassment is compiled as the Rinnai Group “Code of Ethics” to educate and enforce all employees in the Group. In addition, we
also established the Corporate Ethics Helpline to maintain the sound environment of our workplaces.

■ Establishment of Good Labor Relations,
Employees of the Company are members of the Rinnai Employees Association, which functions as the organization to,represent the entirety of the Company s employees.
Based on mutual understanding and trust, the Company and the Association establish healthy and sound labor relations,
openly exchanging opinions on management issues, labor conditions, workplace environments, and compensation anddiscussing improvement plans.
Moreover, the Company makes effort to provide a safe working environment without any concern to the employees ofour business partners, etc., in addition to our employees. We also actively arrange and offer welfare programs and various
events and programs for our employees and their families.

■ Respect for Human Rights and Individuality
The Rinnai Group considers respect for human rights and individuality as one of its main pillars for performing its social
responsibilities as a company. We therefore strictly prohibit any form of discriminatory treatment based on gender, age,nationality, physical characteristics, or any other attributes of individuals. We also refer to the ideas of the United Nations
framework and ISO 26000 and reflect them in the Rinnai Group “Code of Ethics”.
To promote and enforce the contents of the Rinnai Group “Code of Ethics” among all Group employees, a Compliance
Committee member is allocated to each workplace to regularly conduct education on corporate ethics.
At rank-specific training programs, we also educate our employees based on their roles and job responsibilities.

■ Measure to Prevent Child and Forced Labor
As a measure to prevent child and forced labor, the Rinnai Group “Code of Ethics, Rinnai Code of Conduct, Article 11 The
respect for human rights and each other’s personality (4)” stipulates that “The Company should not allow any inappropriate labor including harmful and exploitative child labor which lets under-aged children to work, and slavery against the willof employees.” The entire Group abides by and acts on this rule.

■ Measures to Prevent Harassment
To maintain a working environment that our employees find comfortable, we take measures to prevent any infringementof human rights including sexual harassment and power harassment.
To assist our employees in avoiding to commit any harassment without intention and knowledge, we produced a checklist of detailed examples of harassment that is posted on the Companywide intranet for self-assessment.
Each year, we also provide newly assigned section chiefs with harassment-prevention education to reinforce this prevention.
In accordance with the revision of the Equal Employment Opportunity Law and Child Care and Family Care Leave Law,
we revised our in-house rule to prevent any harassment related to pregnancy, childbirth, or family care leave. We clearly
determined the detailed act of prohibiting harassment and disciplinary action based on the rules of employment if an
employee violates any of these.

97

CSR Report 2018

Fair and Diversified Employment

Fair and Diversified Employment■ View toward Employment
We respect the diversity of individuals and provide employees with various job opportunities and a working environment
where they can demonstrate their various capabilities.
The Rinnai Group Code of Ethics stipulates that “Any discriminatory act toward an individual based on gender, age,nationality or physical characteristics, etc. is prohibited.” Based on this, we maintain fair and equitable hiring practices, inline with prevailing business plans and recruitment needs.
In addition, we actively engage in mid-career hiring to capitalize on the accumulated experience and knowledge ofindividuals who showed they can make a contribution to our success. We hire approximately 25 skilled mid-career
employees every year.

■ Increase of Female Employment and Support for Their Active Role
Ideas and comments from women are absolutely crucial to our products, particularly as
they use so many of our products on a daily basis. We have female employees playing
key roles and demonstrating their individual abilities across a wide range of areas,
especially in product planning and design departments, sales planning and promotion
departments, fixed customer sales departments, and production departments.
At Hot.Lab, our interactive facility, female employees called Life Creators demonstrate
and promote our products to customers.
Life Creators across the country gather every year to exchange their opinions. They share their opinions on productfunctions, designs, and methods of demonstration to contribute to the development of new products and the improvement of product promotion.
We also actively employ female science and engineering graduates. The Production Engineering Division began
to employ more female graduates for career-track positions from fiscal 2014. Currently, three female employees incareer-track positions are working in various projects in the Production Engineering Department, contributing new ideas
and opinions while deepening their understanding of manufacturing.
Our division produces metal dies for use in factories. While many people may think metal
dies are heavy, dangerous, and may be the last option for women to work with, I analyze
the workability of products prior to production using CAE simulation.
My work directly impacts the form of products, so I actively propose ideas to improve
workability, ease of use, and design from the viewpoint of customers. My proposals havebeen reflected in many of our products, which has given me a sense of accomplishment.
There are more opportunities for female employees in the Production Engineering
Division. I continue to strive to deliver good products to customers by incorporating
Satoko Miwa
Die Machinery Office, Production Engineering
ideas from a perspective that is distinctly female.
Division<Major Programs>
Career track conversion system

Reemployment system (Come Back program)Childcare leave and Family care long leave

A system which allows employees to convert from generalists
to clerical employees (when they do not wish to relocate for job
assignment or if there is a request for shortened working hours), orfrom clerical employees to generalists (because of superior work
performance)
A program that enables former employees to return to work as afull-time employee
Programs to support employees to raise children

98

CSR Report 2018

Shortened work hour system
Work from home program

Fair and Diversified Employment

A program to support employees to raise children and care for theirfamily members
A program to support employees to raise children, care for theirfamily members, and recover from diseases

Action Plan to Support Programs for Working Women
From fiscal 2017, we implemented an action plan based on the Act on Promotion of Women,s Participation and Advancement in the Workplace.

■ Reemployment of Retired Employees and Support for Demonstration of Their Abilities
Rinnai promotes a reemployment program for employees who retired due to the age limit in order to continuously utilize
technology and skills that skilled employees possess and to smoothly pass on the skills and the Rinnai Spirit to following
generations. There are currently many employees working under this program. We offer one-year contracts until the ageof 65, with a choice of three options, enabling employees to work full time, alternate days, or reduced hours. We also havea system in place to extend employment to the age of 68 in the case of employees with outstanding specialist skills or
abilities, to fit in with a wide range of individual lifestyles.
This reemployment program provides employees with purpose and motivation in life as a leader/mentor and maintains
and improves the corporate culture and dynamics within the workplace.

■ Promoting the Employment of People with Disabilities
Rinnai is collaborating with the Public Employment Security Office and schools for handicapped children to systematically promote the employment of people with disabilities. The Company independently holds job fairs for people withdisabilities and continuously conducts campus recruiting at schools for handicapped children. Additionally, we havebegun concentrated employment of workers with disabilities. In this system, we select work appropriate for those withdisabilities from each workplace and employ applicants with disabilities for work in specified locations. Finally, we arepromoting environmental improvements at all facilities, such as the installation of wheelchair-accessible toilets, ramps
and elevators.

CSR Report 2018

Occupational Health and Safety

Occupational Health and Safety
The Group gives priority to the assurance of the health and safety of its employees and stakeholders and abides by laws
related to health and safety. In addition, all the employees in the Group strive to create, maintain, and manage a working
environment which is safe and sanitary and develop an active organizational culture which encourages its employees tobe physically and mentally healthy.

■ Basic Policy on Safety and Hygiene
An essential requirement in business is the assurance of the health and safety of employees, via the provision of a hazard-free and hygienic work environment. As Rinnai constantly strives to protect the life and health of all employees, wegive top priority to the sanitary conditions and safety of the workplace. This corporate mantra extends to our customers,
to whom we strive to provide “safety and peace of mind.”Fiscal 2018 Basic Policy on Safety and Hygiene(1) Create safe and reliable work environment(2) Maintain and improve work environment(3) Promote measures to support for health improvement(4) Promote crisis management(5) Personnel training through safety education and workshops(6) Promote traffic safety activities

99

CSR Report 2018

Occupational Health and Safety■ Promoting Safety and Health Activities
Rinnai has established the Rinnai Companywide Safety and Health Committee as a governing body for domestic Group
companies and is working with safety, health, and disaster prevention officers at each business location to promote
occupational safety and health activities.
These activities include informing employees about examples of work-related injuries and corresponding recurrence
prevention measures, establishing safety and health committees that include members from both labor and management levels, creating safety and health patrols, and implementing the Company’s five fundamentals of safety and health(regulation, arrangement, cleaning, sanitation, and training). Through these activities, we are working to create workplaceenvironments that are secure, safe, and confortable.

■ Accident Prevention Measures
To give our No. 1 priority to work safety and peace of mind, the Group promotes various accident prevention measures
under the guidance of the Risk Management Committee, headed by the President.
With the rising frequency of large-scale disasters at home and abroad, the Rinnai Group, aiming to build a strong corporate structure to withstand crisis situations, establishes BCPs for, quick recovery at the time of disaster.
( 1 ) Activities to prevent fire and explosion: Enforcement of safety inspection of environmental safety equipment (gasfeeders and furnaces, etc.) and test and evaluation equipment, and the improvement and renewal of equipment as our
top priority(2) Reduction of risk of earthquake damage: Preventing objects in factories and office buildings from falling over, dropping,and scattering(3) Production site on-site guidance: Horizontal development of the production sites under the guidance of the Safety and
Health Committee of the Production Group(4) Training for clerical work staff and new employees: KYT* training for new employees including a monthly information
sharing session regarding OJT accidents, designed to promote work-safety awareness.
(5) Implementation of emergency drill:Earthquake and fire drills more than once a year

*KYT: Kiken Yochi (danger prediction) Training
With the rising frequency of large-scale disasters at home and abroad, the Rinnai
Group, aiming to build a strong corporate structure to withstand crisis situations,establishes business continue plans for a quick recovery at the time of disaster.

Emergency drill■ Promotion of Traffic Safety
To raise employee’s awareness of traffic safety, various measures and education programs are provided. As a traffic
accident “zero day” activity, our employees call for traffic safety in the streets. As a new employee training, we executepractical training, a risk prediction course, and an aptitude test at a driving school. We obtain a certificate of driving record
for each employee who is granted permission to drive a company car or commute by car. This is to accurately gauge
the number of employees’ traffic accidents and violation of
traffic rules to improve self-awareness for compliance. We
introduced Telematics, a safe driving eco-drive promotion
system, and check daily driving status and then analyze
the data efficiently from the viewpoint of safety and ecology.

Driver education at a driving school100

CSR Report 2018

Care for HealthCare for Health
To promote the creation of a vibrant corporate environment wherein people can work healthily-both physically andmentally-it is a precondition that each employee be health conscious and promote sound self-management and healthenhancement.
To maintain and improve the health of our employees and their families, through collaboration with the Rinnai Health
Insurance Society, the Company encourages 100% of employees to undergo a medical checkup and receive consultation from an industrial doctor if the employee requires further examination. Various measures including mental healthcare workshops, medical checkup support, and support for special medical checkups (complete medical checkups andcancer screening).As well subsidized sporting events are also actively implemented.

■ Support for Health Promotion
We work with the Rinnai Health Insurance Union to provide a wide range of support for employees and their dependent
family members including regular health checkups, complete medical checkups, and various screenings for stomach
cancer, colon cancer, breast cancer, cervical cancer, and prostate cancer. We officially introduced a Data Health Planin fiscal 2017, in which employees at the age of 35 and older are subject to guidance for the prevention of metabolic
syndrome, and dedicated health guidance and personalized support are provided for diabetic patients who have notreceived any treatment. We also lowered the starting age eligible for the health visit to 55 for parents of employees in order
to raise health awareness for employees’ families as well as the employees themselves.

■ Expanding Health Promotion Activities
We have established a Health Support Office and organize
employee health promotion activities overseen by specialist
health nurses. We offer health guidance and consultations
for individual employees and run health seminars, to provide
information on subjects such as preventing lifestyle-relateddiseases.
We also organize mental health seminars and run a support
program to help employees who have been on long-term leave to return to work. We provide rehabilitative work-based
support so that employees can return to the workplace as smoothly as possible.
To prevent those working long hours from experiencing health problems, we set out standards that go beyond legallyrequired standards, and also arrange consultations with health nurses and industrial physicians.
In our employee cafeteria , we work with nutritionists to provide menu options that are designed to keep our employees
healthy.

■ Mental Health Care
Rinnai promotes the creation of health workplaces through mental health care designed to prevent mental health conditions and discover stress-related issues at an early stage. In fiscal 2018, Rinnai increased the number of consultations
provided for employees while they are taking leave for mental disorders and after they
return to work by three times compared to fiscal 2017. This strengthened our support
system, which aims to help employees struggling with mental disorders before they mustresort to taking leave and to facilitate smooth returns for those who do take leave. The
Company also increased the scale of its mental health seminars, aiming for workplaceenvironments that do not contribute to the stress that can cause mental disorders. We also
increased the number of seminars for management-level employees, raising the numberof participants by about 200 compared to fiscal 2017.

101

CSR Report 2018

Self-careLine careInternal care
External care

Care for Health

New employees
All employees
Basic program
Basic program
Applied program
Managerial supervisor
Basic program
Applied program
Advanced program
Listener program
Industrial doctors, public health nurse, health supervisors, labor managers
Mental health counseling service (telephone/face-to-face)■ Holding Nursing Care Seminars Based on Field Studies
The Rinnai Group aims to create workplace environments and climates that make employees glad to work for Rinnai. We
regularly team up with the Employees’ Association to hold labor-management councils with the goal of eliciting employee
viewpoints regarding the Company from each workplace. These councils provide an opportunity for us to share issues
that are unique to each office and to make improvements based on these issues, such as system revisions.
From March through April 2017, the Rinnai Group collaborated with the Employees’ Association to conduct a fact-finding
survey regarding nursing care that targeted about 1,200 employees. The results indicated that more than 90% of respondents felt anxiety toward nursing care and that morethan half of respondents who may face nursing care within the next five years were notaware of details regarding the nursing care insurance system. Based on these results,
we held a nursing care seminar in August 2017. The many employees who attended thisseminar indicated positive impressions, saying they were “able to personalize nursing
care for themselves” and “thoroughly understand nursing care insurance details.”
Additionally, attendees accorded the seminar a satisfaction rate of over 90%.

102

CSR Report 2018

External Acclaim and Recognition

External Acclaim and Recognition■ Selected as 2018 Health and Productivity Company for Three Consecutive Years
Rinnai was selected in February 2018 by the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange as a 2018 Health and Productivity Company.
Those selected as a Health and Productivity Company are companies with excellent health andproductivity management* which strategically practice the management of employee’s healthand well-being from a management perspective. This is a project started in 2015 to introduce
attractive companies to investors that place a focus on improving company value from a longterm perspective.
Our company was selected as a Health and Productivity Company for the third year in a row in the metal products category of the Tokyo Stock Exchange for our support for promoting employees’ work and life balance through mental healthcare and personalized health support and activities.
* Health and Productivity Company is a registered trademark of the NPO Workshop for the Management of Health on Company and Employee.

■ Certified by the City of Nagoya as a “Company Promoting Women’s Activities”
Rinnai was certified as a “company promoting women’s activities,” as part of a scheme
operated by the City of Nagoya (Aichi Prefecture) in fiscal 2014. Certification is granted
to companies that are making a concerted effort to ensure that women play an activerole, with commendations presented to companies engaging in particularly outstanding
initiatives. We have been certified in recognition of three key initiatives aimed at expanding
frameworks, assigning duties, and changing attitudes, to support female employees so thatthey play a greater role in the workplace.

■ Registered by Aichi Prefectural Government as a “Family Friendly Company”
In March 2014, Rinnai was registered by the Aichi prefectural government as a “family friendly company,”
based on its commitment to ensuring that employees strike a balance between their work and private
lives. The Aichi prefectural government has created this registration scheme in order to encouragecompanies to focus more on work-life balance, and to promote initiatives on a broader scale.

■ Certified as a “General Business Owner Meeting Standards”
In May 2014, Rinnai was certified by the Aichi Labour Bureau of the Ministry of Health, Labourand Welfare as a “general business owner meeting standards” in accordance with the Act on
Advancement of Measures to Support Raising Next-Generation Children, and was awarded the“Kurumin” next-generation certification mark. This serves as recognition of our efforts to formulate
and implement action plans based on targets such as employing specialist health nurses, securingchildcare leave for male employees, and encouraging employees to take annual paid leave.

■ Certified as a “Parent-Friendly Company”
In fiscal 2015, we were recognized as a parent-friendly company under Nagoya’s parent-friendly
company accreditation scheme. The purpose of such schemes is to certify or recognize companies that are working to create parent-friendly environments. At Rinnai, we are developing a
range of programs to facilitate work-life balance, including telecommuting arrangements and
our Come Back reemployment program.

103

CSR Report 2018

Human Resource-and Personnel-Related Data

Human Resource-and Personnel-Related Data
We disclose human resource-and personnel-related data including the number of employees and the status of full-time
employees.
Number of Full-time Employees by Region (Consolidated, Year-end)

Japan

Asia, excluding Japan

North America and Europe

Other(Oceania and SouthAmerica)

Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal

Total

Fiscal 2016
(At March 31,
2016)
3,607
1,646
5,253
2,592
1,171
3,763
123
46
169
516
239
755
9,940

Fiscal 2017
(At March 31,
2017)
4,007
1,809
5,816
2,604
1,143
3,747
138
51
189
535
225
760
10,512

Fiscal 2018
(At March 31,
2018)
4003
1805
5808
2626
1133
3759
167
57
224
562
218
780
10571

Composition
54.9%
35.6%
2.1%
7.4%
100%

Number of Full-time Employees (Consolidated, Year-end)

Rinnai Corporation
Domestic Group companies
Overseas Group companies

Male
FemaleMale
FemaleMale
FemaleTotal

Fiscal 2016
(At March 31, 2016)
2,495
1,084
1,112
562
3,231
1,456
9,940

Fiscal 2017
(At March 31, 2017)
2,520
1,122
1,487
687
3,277
1,419
10,512

Fiscal 2018
(At March 31, 2018)
2,540
1,125
1,463
680
3,355
1,408
10,571

Fiscal 2016
(At March 31, 2016)
82
47
129
7
3
10
16.2
11.3
14.7
38.2
32.5
36.5
2.3

Fiscal 2017
(At March 31, 2017)
57
35
92
7
8
15
16.6
11.7
15.1
38.6
32.9
36.8
2.1

Fiscal 2018
(At March 31, 2018)
81
50
131
4
10
14
16.8
12.1
15.4
38.8
33.3
37.1
2.5

Number of Employees (Non-consolidated)

Newly recruited employees

Mid-career recruitment

Average working years

Average age(Years old)
Separation rate (%)

Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal

104

CSR Report 2018

Paid leave utilization ratio (%)
Employment rate of persons with disabilities (%)
Number of OJT accidents
Number of employees who used childcare leave
Male
Number of employees who
took childcare leaves ofFemaleabsence
Subtotal
Male
Proportion of employees
who return to work after
Femaletaking parental leave (%)
Subtotal
Male
Number of employees who
Femaleused shortened work hours
Subtotal
Male
Number of employees who
Femaleused familycare leave
Subtotal
Male
Number of employees who
Femaleused nursing leave
Subtotal
Male
Number of employees who
took nursing leaves ofFemaleabsence
Subtotal
Male
Number of employees who
used our reemployment
Female(Come Back) system
Subtotal
Male
Number of employees who
Femaleused the work from home
program

Subtotal

Human Resource-and Personnel-Related Data

42.3
1.8
38.0
64
1
89
90
100
97
98
0
69
69
0
15
15
0
3
3
0
1
1
0
0
0
0
3

50.3
1.9
32.0
61
1
94
95
100
99
99
0
106
106
0
16
16
0
2
2
0
0
0
0
0
0
0
2

53.3
1.9
25
90
1
106
107
100
100
100
0
96
96
0
36
36
2
2
4
0
1
1
0
0
0
0
3

3

2

3

Fiscal 2016
(At March 31, 2016)
2137
227
18.5

Fiscal 2017
(At March 31, 2017)
2129
225
18.3

Fiscal 2018
(At March 31, 2018)
2126
219
17.5

¥318,950¥309,150¥303,750¥253,600¥252,950¥253,950¥284,875¥284,930¥283,761

Fiscal 2016
(At March 31, 2016)
698
512
1210

Fiscal 2017
(At March 31, 2017)
669
495
1164

Fiscal 2018
(At March 31, 2018)
656
481
1137

Working Hours, and Average Wages

Annual total actual working hours per employee
Annual non-scheduled working hours per employee
Average overtime per month (Hours)
Highest wage
at 30
Average wages at
Lowest wage
30 years old
at 30
Average wageat 30
Employee Ages

Under 30

Male
FemaleSubtotal

105

CSR Report 2018

30–39

40–49

50–59

60 or older

Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal
Male
FemaleSubtotal

641
328
969
693
176
869
455
65
520
8
3
11

Human Resource-and Personnel-Related Data

677
352
1029
677
203
880
483
69
552
14
3
17

697
347
1044
654
217
871
523
79
602
10
1
11

106

CSR Report 2018

Communication with Local ragions and Communities

Communication with Local ragions and Communities
The Rinnai Group engages in a variety of voluntary and community-based activities in Japan and around the world inorder to make a sustainable contribution to society.

■Teaching “the Strength of Industry” to Children Who Will Lead the Next Generation

In November and June of 2017, the Rinnai Group participated in the Nagoya Chamber of Commerce’s Mono+Gatari
Project. In connection with this project’s goals, the Company conducted on-site lectures at elementary schools in Aichi inorder to teach children who will lead the next generation about the fun and possibilities inherent in “the strength of industry.”
Rinnai has production facilities in four areas in Japan and produces high-quality gas stoves and water heaters through its
production system. Always aiming to maintain and improve this high quality, we conduct quality control group activities
and collect suggestions for improvement in pursuit of increasing each individual employee’s problem-solving ability.
Recently, two employees from our Oguchi Factory, which produces gas stoves and other products, conducted lectures
regarding “karakuri (string puppet) improvement,” one of the reform initiatives being undertaken at our production areas.
This “karakuri improvement” gets its name from the principles of leverage and pulleys that were used in ancient Japanesemechanical dolls called karakuri ningyo and that we now use to improve our equipment. For example, the principle of thepulley allows us to deliver component supply
boxes to workers without using electricity.
These recent on-site lectures utilized improved
equipment actually used in production areas toteach children that principles they learn about inscience class, such as the principle of leverage,
are actually being applied at manufacturinglocations.
Reactions from the children were impressive.
They were surprised by the way the “karakuri
improvement” equipment operated and showed107

CSR Report 2018

Communication with Local ragions and Communities

considerable amount of interest in the related principles. They also learned a lot about “karakuri improvement” throughworkmanship and games that involved the principle of leverage.

VOICE
Using “Karakuri (String Puppet) improvement” to Learn about Ecological Ideas
Involving Natural Principles
Seeing innovative constructions move without the use of electricity produced genuine surprise in
the children. They also had fun playing games based on the principle of leverage.

Kazuki Anzo

Honami Elementary School,
Teacher in charge

Afterward, one participant said that they “realized that factories are not just supported by complicated machinery but also by ecological ideas that combine the power of people and naturalprinciples.” The children appear to have sufficiently learned about the importance of applying
natural principles.

■ Rinnai Brasil:

Cherry Tree Planting in the Centennial Park of Japanese Immigration

Rinnai Brasil Heating Technology Ltd. was established in 1975 and is located in Mogi das Cruzes, São Paulo, Brazil. This
Group company produces and sells products, such as gas water heaters, and conducts various regional contribution
activities each year for Mogi das Cruzes, which
is home to many descendants of Japaneseimmigrants.
On September 21, 2017, Rinnai Brasil employees
took part in a cherry tree planting event at theCentennial Park of Japanese Immigration. Alongwith the mayor of Mogi das Cruzes, personnel
from the city’s Department of the Environment,
and local children, our employees planted 20
cherry tree saplings that were grown within the
grounds of Rinnai Brasil.
This park, located within Mogi das Cruzes,

108

CSR Report 2018

Communication with Local ragions and Communities

contains elements of Japanese culture, such as torii gates and Japanese arched bridges, and was created in 2008 incommemoration of the 100th anniversary of Japanese immigration to Brazil. The planting event was conducted in cooperation with the city of Mogi das Cruzes, which was promoting improvement measures for the park’s 10th anniversary in
2018.
Marcus Melo, the mayor of Mogi das Cruzes, expressed gratitude toward participants from Rinnai Brasil as well as towardelementary school children and instructors who also participated in the memorable event.
Rinnai Brasil will continue to grow cherry tree saplings and conduct plantings in various locations each year out of thehope that cherry tree scenery will one day spread throughout many parts in Brazil.

■ Relation to the Nakagawa Canal
The Company has been headquartered in Nakagawa-ku, Nagoya-shi, Aichi for 97 years. Nakagawa Canal near ourheadquarters once served as an important logistic waterway linking the heart of Nagoya and the port. The Company iscommitted to contributing to the community through involvement in the Nakagawa Canal to appreciate the local people
with warm support.

View north from Nagara-bashi Bridge on the Nakagawa Canal

Participation in Nakagawa Canal Dragon Boat Race Tournament
In September 2017, the 8th Nakagawa Canal Dragon Boat Race Tournament (sponsoredby the Nakagawa Canal Dragon Boat Race Festival Executive Committee) took placein the Nakagawa Canal. The Company sponsored this tournament and 58 employees
participated in the boat race. As a part of this event, we participated in a friendship racein which we boated with local children, and built a good relationship with residents and local
businesses.
The 8th Nakagawa Canal Dragon Boat
Race Tournament

Support for Nakagawa Canal Restoration and Culture/Artistic Assistance Project
We are donating ¥10 million every year for 10 years (¥100 million in total) to the Nakagawa Canal Restoration andCultural/Artistic Assistance Project (known as “Nakagawa Canal ARToC10”) set up in fiscal 2012 to restore the canal andsurrounding area.
The aim of the program is to revive the district and make it a cultural and artistic hot
spot by turning the canal into a venue for modern contemporary art.

109

CSR Report 2018

Communication with Local ragions and Communities■ Major Financial Contributions and Sponsorships
The Group supports events that foster international exchange in the arts and culture as well as sporting events.
Rinnai Corporation, Actual Results in Fiscal 2017
・Nagoya Urban Development Public Corporation (support for restoration project on the Nakagawa Canal)・Nagoya Philharmonic Orchestra
・Nagoya School of Music, The Music Competition of Japan, Award-winning Celebration Concert
・Campus Venture Grand Prix, Chubu Area
・Nagoya Shonen Shojo Hatsumei Club (Invention and Innovation Youth Club)・Haruhime Dochu (Spring Queen Parade) at Honmaru Network
・Youngsters’ Science Festival 2017
・Chinese Spring Festival in Nagoya
・Misonoza Kinshu Nagoya Kaomise Kabuki
・Tokugawa Art Museum
・Vietnam festival Ho Chi Minh in Aichi, Nagoya
・Korea Festival 2018 in Nagoya

110

CSR Report 2018

Communication with Shareholders and Investors

Communication with Shareholders and Investors■Policy on Information Disclosure
We disclose information in an appropriate, timely, fair, and impartial manner, and engage in IR activities with an emphasison two-way communication, in order to improve mutual understanding and build trusting relationships with shareholders
and investors.
In accordance with the Rinnai Group Code of Ethics and our Disclosure Policy, we adhere to the principle of disclosing
corporate information in an appropriate, timely, and fair manner, including details of the Group’s management and business activities.

■IR Activities–Communication with Shareholders and Investors
In an effort to provide our shareholders and investors with direct updates on ourbusiness activities, and to ensure that information in disclosed quickly and fairly, we
provide information via channels such as results briefings for analysts and institutional
investors (twice a year), biannual shareholder reports, press releases and presentation materials on our website, and our IR calendar. We also post IR information,
including results and shareholder reports, on the English version of our website in theinterests of timely disclosure.
Investor Relations section of our website■General Shareholders’ Meetings
We held the general shareholders’ meeting for our 67th term at the Meitetsu New Grand Hotel in Nakamura-ku, Nagoya,on June 27, 2018. To encourage more shareholders to get involved in discussions and attend meetings, we send out
notices to convene earlier than the legally required date. We also make these notices as easy to read and navigate as
possible by, for example, printing them in large format and providing indexes to them. We strive to provide information toshareholders on the current state of our business in an easy-to-understand manner using business reports with slides
and other media at general shareholders’ meetings. Shareholders that have difficulty attending the general shareholders’meetings are able to exercise their right to vote on the Internet. We also make every effort to communicate the Company’s
current situation to shareholders in a straightforward manner, through shareholders’ reports featuring photos, graphs, andcharts for instance.

■IR Activities for Institutional Investors and Analysts
We have been proactively providing business performance reviews and opinion
exchange opportunities through financial results briefings (twice a year), small
meetings, individual visits, and telephone interviews for institutional investors
and analysts. We also participate in conferences held by securities companies
to expand IR activities.

Factory tour

111

CSR Report 2018

Communication with Shareholders and Investors■ Internal Seminary on Fair Disclosure of Information
On April 6, 2018, we invited the Daiwa Institute of Researchand held an internal seminar on fair disclosure (FD) rules.
Through these FD rules, which came into effect in April
2018, the Japanese Financial Services Agency requiresthat companies who present important information, such as
financial closing information, to investment analysts or otherreviewing authorities quickly and fairly to make the same
information available to other investors. The FD rules also
apply to the Rinnai Group, so we gathered all related departments together for the internal seminar. The lecturer was
Mr. Jun Yokoyama of the Daiwa Institute, an organization
familiar with the FD rules. Thanks to the seminar, we wereable to raise our own awareness regarding the maintenanceof fair disclosure.

In-house study session■ Our Policy on Dividends
One of our top management priorities is to sustain a stable return of profits to shareholders. Several factors play into thecalculation of dividends, such as consolidated performance, return on equity, and financial status.
Share Information (As of March 31, 2018)
Number of authorized shares: 200,000,000 shares
Number of outstanding shares: 51,616,463 (Including treasury stock)
Number of shareholders: 3,750
Securities
companies
0.4%

Foreigninvestors
27.5%

Own shares
0.4%

Individuals andothers
14.5%

Financial institutions
28.1%
Corporations
29.1%■ International Reputation of Rinnai’s CSR
The Rinnai Group has been selected for inclusion in the FTSE4Good IndexSeries, a worldwide ESG investment index, for 15 consecutive years since 2004.
In June 2018, we were included in three indices listed by the Government
Pension Investment Fund (GPIF). These indices were the FTSE Blossom
Japan Index and the MSCI Japan ESG Select Leaders Index, for which
we were selected for the second consecutive year, and the MSCI Japan
Empowering Women Index (WIN) .

112