Rinnai Corporation
http://www.rinnai.co.jp/

CSR Report

17

20

Corporate
SocialResponsibility
R e p o r t 2 017

Printed in Japan
using “waterless”
printing, reducing
water usage andeliminating industrial
wastewater2017.10

Contents
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CSR Report 2017 ― Editorial Policy, etc.
Message from the President
Rinnai Group Profie
Corporate Mission and Vision
Medium-Term Business Plan, “Evolution and Succession 2017”
Rinnai Group CSR
The Rinnai Group’s Value Chains and Their Impacts on Environment
Stakeholder Engagement
Identifying CSR Material Issues
Management System
Major Award Winning History
Environmental Initiatives
Evolution of ECO ONE hybrid water heater with heating systems
Environmental Special Feature: Special Discussion
Efforts to Make Products Better
Environmental Management System with Suppliers
Environmentally Conscious Monozukuri
Measures to Improve Logistics
Environment Education and Promotion of Awareness
Environmental Management System“7E Strategic Initiatives” Environmental Action Plan and Fiscal 2017 Targets
Environmental Accounting
Chronology of Environmental Activities at Rinnai
Certification Acquisition Status
Scope of Calculation for Environmental Data
Initiatives for Safety and Peace of Mind
Aiming for the proliferation of safe and reliable gas stoves, with smiling families
Realizing a “safe and reliable,” “comfortable,” and “useful” cooking environment
with a gas stove called delicious, DELICIA
Measures for Quality
Consumer Safety
Inquiry Response and Support System
Inspection and Repair Services
Communication with Stakeholders
Communication with Customers
Communication with Shareholders and Investors
Communication with Business Partners
Communication with Employees
Communication with Our Communities and Society

Supplemental Data:
1. Oguchi Factory
2. Seto Factory
3. Asahi Factory
4. Yanagisawa Manufacturing Co., Ltd.
5. Rinnai Technica Co., Ltd.
6. GASTAR Co., Ltd.

7. Rinnai Precision Co., Ltd.
8. Rinnai Precision Co., Ltd.
9. RT Engineering Co., Ltd.
10. Japan Ceramics Co., Ltd.
11. Noto Tech Co., Ltd.
12. Techno Parts Co., Ltd.

CSR Report 2017┃Editorial Policy

CSR Report 2017
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 aspossible.

Rinnai’s Activities
To provide an overview of our CSR activities in an easy-to-understand way, we produce an abridged version of our
CSR Report in booklet form. Information not contained in the booklet—such as case studies, specific details, andrelated data—is posted on the website.

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, 2016, to March 31, 2017—but also touches
upon measures implemented and recent activities undertaken prior to fiscal 2016 as well as future businessdirection, targets and plans.
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CSR Report 2017┃Editorial Policy

Referenced Guidelines
Sustainability Reporting Guidelines (G4), the fourth and most recent generation of guidelines by the Global
Reporting Initiative (GRI)
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
August 2017 (Japanese version), previous: September 2016, next: August 2018 (planned)

Contact
For information on the Rinnai Group’s social and environmental activities,
please contact the Corporate Communication Division at Administration Headquarters
2-26, Fukuzumi-cho, Nakagawa-ku, Nagoya,
Aichi 454-0802, Japan
Telephone (from outside Japan): +81-52-361-8211
Fax (from outside Japan): +81-52-361-8529

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CSR Report 2017│Top Message

Message from the President
As a comprehensive heat-energy appliance manufacturer, we will help create a sustainable
society while promoting transparent management.
Performance impacted by yen’s appreciation despite
healthy results overseas
Looking at world markets in recent years, economic growth inChina and other emerging nations has continued to slow down.
In Europe, moreover, the outlook is hard to predict since theUnited Kingdom’s decision to exit the European Union and theelection of President Trump in the United States. As for Japan,
the economy is showing a moderate recovery trend, buoyed by
improved employment and income conditions and a turnaroundin personal consumption.
Fiscal 2017, ended March 2017, was the second year of our
medium-term business plan, entitled “Evolution and Succession
2017”, which began in April 2015. For the year, consolidated
net sales amounted to ¥330.2 billion, up 3.2% from fiscal 2016,
and operating income totaled ¥34.0 billion, down 1.6%.
Unfortunately, we did not reach our targets for the year.
In Japan, we reported increased sales of standalone water
heaters, rather than the high-value-added water heaters that had
generated sales growth in the past. We believe our performance
was impacted by intensified competition among manufacturers
due to energy market deregulation. Overseas, however, foreignexchange factors stemming from the yen’s appreciation had anegative impact on our performance. This was despite steadybusiness growth in various regions. In the United States, forexample, we benefited from the ongoing shift fromconventional tank-based water heaters tohigh-efficiency gas tankless models, and in China we enjoyedhealthy sales of gas appliances thanks to the development ofgas infrastructure in regional cities.
In fiscal 2018, the final year of the medium-term businessplan, we are targeting consolidated net sales of ¥340 billion (up3.0% year on year) and operating income of ¥37 billion (up8.6%).

Hiroyasu Naito, President

Promoting spread of ECO ONE high-efficiency gas water heaters to reduce CO2 emissions from homes
In fiscal 2017, we focused on two priority CSR areas: (1) environmental initiatives aimed at reducing energy
consumption and CO2 emissions; and (2) safety and peace of mind initiatives to enhance consumer safety andproduct quality.
During the year, we sought to expand sales and further increase the efficiency of our ECO ONE systems,
which combine a high-efficiency gas water heater with an electric heat pump, while focusing on proliferation of
Eco Jozu and other high-efficiency gas water heaters. We first launched ECO ONE in 2010. In 2014, the modelsold at that time received the top energy conservation award (METI Award) in the Energy Conservation Awards
hosted by the Energy Conservation Center, Japan (ECCJ). Since then, we have made improvements in various
areas, such as environmental performance, construction, and ease of installation, and in January 2017 ECO ONE
received the ECCJ Chairman’s Award. Moreover, we have been receiving inquiries about ECO ONE from people
who have not dealt with us in the past, due to expansion of sales channels associated with deregulation of Japan’s
electricity and gas sectors. This is a good sign for ECO ONE’s popularization. We will continue working to help
reduce CO2 emissions from homes.
Regarding safety and peace of mind initiatives, we have stepped up our response to Japan’s “long-term use
product safety inspection system” and taken action to reduce bathroom accidents caused by the “heat shock”
phenomenon. We will continue these efforts going forward.

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CSR Report 2017│Top Message

The aforementioned initiatives are not limited to Japan. In the United States, for example, we are working to
expand sales of high-efficiency gas water heaters, and in China we are implementing rigorous maintenanceeducation programs for local installation companies. In Vietnam, as well, we are pursuing initiatives based on
local considerations, such as selling gas stoves equipped with self-extinguishing safety devices.
In other initiatives, our various operations in Japan and overseas conduct their own community-focused
activities, and since 2012 we have provided ongoing support for the Nakagawa Canal Restoration andCultural/Artistic Assistance Project (Nakagawa Canal ARToC10) in Nagoya as part of our community
contribution efforts.
Focus on establishing environments conducive to correct human and organizational behavior to ensure
thorough corporate governance and legal compliance
In recent years, excessive employee working hours and internal governance have become major issues in Japan.
From an early stage, the Rinnai Group has focused on reducing overtime hours, supporting the mental health of
employees, promoting the advancement of female employees, and other areas. These efforts have been highly
acclaimed. For example, Rinnai Corporation has been included in the 2017 Health and Productivity Company.
With respect to governance, we have also worked to strengthen our management structure by appointing
two outside directors. In addition to simply establishing mechanisms for governance, compliance, and employee
workability, however, it is important to ensure that the systems in place are functioning properly. We aim toadvance our company by promoting management transparency and emphasizing operational functionality. Goingforward, the Rinnai Group will continue working to create prosperous, comfortable lifestyles and help protect theenvironment through its core business. Committed to meeting the expectations of communities, we will also strive
to create a sustainable society.

ECO ONE hybrid water heaterwith heating systems

High-efficiency gas water heater(United States)

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Rinnai Group Profile

R i n n a i C S R R e p o r t 2017

Rinnai Worldwide

Corporate Data (As of March 31, 2017)
Incorporated: September 1, 1920

● Manufacturing and sales companies ◎ Sales companies ○ Other Business □ Overseas representative Office

Established: September 2, 1950
Paid-in capital: ¥6,459,746,974

JAPAN

Head office: 2-26, Fukuzumi-cho,
Nakagawa-ku, Nagoya 454-0802, Japan●Rinnai Corporation

Number of employees: 10,512 (consolidated),
3,642 (non-consolidated)

・ Branches:

Tohoku, Kanto, Chubu, Kansai,
KyushuSOUTH KOREA●Rinnai Korea Corporation

Hokkaido, Kita-Tohoku, Sendai,
Niigata, Tokyo, Kita-Kanto,
Higashi-Kanto, Minami-Kanto,
Tokai, Shizuoka, Hokuriku,
Nagano, Osaka, Keji,
Hyogo, Chugoku,
Shikoku, Fukuoka●RB Korea Ltd.
◎Rinnai UK Ltd.

●RS Korea Ltd.

CHINA

●Mikuni RK Corporation◎Rinnai Plus Corp.

●Shanghai Rinnai Co., Ltd.
●Shanghai RB Controls Co., Ltd.

◎

Rinnai Italia s.r.l.

Technology Development Center,
Production and Technology,
Development Center,
Integrated Logistics Center,
Rinnai Parts Center,
Oguchi Factory,
Seto Factory,
Asahi Factory,
Akatsuki Factory◎Guangzhou Rinnai Gas and Electric Appliance Co., Ltd.
◎Hainan Rinnai Minsheng Kitchen Appliances Sales Co., Ltd.

Rinnai Hong Kong Ltd.◎□

Rinnai (Thailand) Co., Ltd.●Net Sales by Product (Year ended March 31, 2017)(Billions of yen)

◎Rinnai Canada Holdings Ltd.

●Rinnai Taiwan Corporation●Rinnai Vietnam Co., Ltd.

Total

¥330.2billionRinnai America Corporation
Kitchen appliances¥88.4 billion

Net Sales by Region (Year ended March 31, 2017)(Billions of yen)
Indonesia¥10.7 billion●Rinnai Technica Co., Ltd.

◎Rinnai Holdings (Pacific) Pte Ltd.

●Gastar Co., Ltd.

●P.T. Rinnai Indonesia●RB Controls Co., Ltd.

AUSTRALIA●RT Engineering Co., Ltd.
●Japan Ceramics Co., Ltd.
●Noto Tech Co., Ltd.

●Brivis Climate Systems Pty Ltd.

●Techno Parts Co., Ltd.

○Gas Appliance Services Corporation

RinnaiNew Zealand Ltd.
●

Others
¥17.0 billion
Japan¥189.0 billion

South Korea¥32.4 billion●Rinnai Precision Co., Ltd.

●Rinnai Australia Pty., Ltd.

Water heaters¥188.2 billion

Commercial-use equipment¥9.1 billion◎●Yanagisawa Manufacturing Co., Ltd.

◎Rinnai (Malaysia) Sdn. Bhd.

Others¥26.5 billion

Home heaters¥17.9 billion

・ Factories and related centers:◎Shanghai Rinnai Thermo Energy Engineering Co., Ltd.

Dubai Representative Office

Number of Group companies: 45 (domestic 15,
overseas 30)

・ Domestic sales offices:

Rinnai Brasil
Heating Technology Ltd.
●

China
¥35.9 billion
Australia¥21.4 billion

Total¥330.2billionUnited States¥23.5 billion◎Rinnai Net Co., Ltd.
◎RG Co., Ltd.
○Rinnai Enterprises

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, clothes dryers,
infrared burners, components, and others

Wiz gas fan heater with
air purifier

Eco Jozu commercial-use gas water heater(responding to remote control system)

Lisse gas built-in hob(stovetops)

ECO ONE hybrid water heater withheating systems, 160-liter model05

Eco Jozu heat source for water
heater with heating systems(slim type in cramped spaces)

Built-in dishwasher(slim type)06

CSR Report 2017│Corporate Mission and VisionCorporate Mission and Vision
Fundamental Concepts

Quality is our destiny
Company Motto
Harmony:
Develop personal character of the highest caliber
Spirit:Base your efforts on a consistent philosophy
Sincerity:
Know the fundamentals and consider issues with precisionand clarity

Rinnai’s Corporate Mission
Rinnai utilizes heating to provide society with a comfortable way of life.

Schematic Diagram of Company Ideals

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CSR Report 2017│Corporate Mission and Vision

Rinnai Charter, Seven-Point Commitments
The Rinnai Charter frames the company motto and mission into a seven-point commitment structure
1. We are committed to keeping our customers first and foremost in our minds with our policy of “Quality is
our destiny.”
2. We are committed to pursuing safety, comfort, and convenience, and to providing products that help topreserve the global environment.
3. We are committed to acquiring and utilizing expertise in heating to improve our customers’ quality of life.
4. We are committed to strengthening the relationship between Japanese and overseas Rinnai Group members
and to working for each other’s prosperity.
5. We are committed to enhancing the prosperity of the communities that we belong to and to building
a reputation as trustworthy and responsible members of society.
6. We are committed to operating under the principles of harmony, spirit and sincerity, and to growing ourcompany by ensuring the prosperity of society.
7. We are committed to acting in compliance with the law and to adhering to ethics as responsible membersof society.

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

Quality

Contributing
to LocalCommunities

Rinnai’s corporate mission hinges on the use of “heating” to provide society with“comfortable lifestyles.” Our strength is in sophisticated heating technologies, and we will
utilize this capability to facilitate the creation of pleasant living environments.
Rinnai’s catchphrase—“Quality is our destiny”—epitomizes a corporate obsession withquality. So it is only natural that we would keep production and other monozukuri(manufacturing) efforts in-house to sustain high-level standards. This enables us to deliversafety and peace of mind to our customers.
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 that sales and services are executed with local conditions in mind and that
manufacturing takes place in the markets where the products will be sold.

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CSR Report 2017│Medium-Term Business Plan

Medium-Term Business Plan, “Evolution and Succession 2017”(April 2015–March 2018)“Evolution and Succession 2017” is our medium-term business plan that began in April 2015. Under the plan, eachof the Rinnai Group companies will ensure the “succession” of our commitment to product quality and monozukuri(craftsmanship)—based on the spirit of our founder and fundamental belief that “Quality is our destiny”—whileemphasizing our “evolution” toward a new era. In the process, we will target major progress as a comprehensive heat
energy appliance brand as we approach Rinnai’s 100th anniversary in 2020.

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CSR Report 2017│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 inmind, we deliver heat-energy appliances with excellent features in terms of safety and peace of mind, comfort,
and the environment. 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 as emphasizedsince its foundation—“heat and lifestyles,” “quality,” and “contributing to local communities”—complemented
by “the environment,” for a total of four key themes.

Environment

Hot water and heating appliances account for much of the energy used in the averagehome. By developing, manufacturing, and selling appliances with exceptional energy
efficiency, Rinnai helps reduce emissions of greenhouse gases from homes.

Heat and Lifestyles

We deploy our advanced heat-related technologies and know-how to develop products thatpeople can use in a safe, comfortable, and efficient manner. In this way, we help people
lead abundant lifestyles.

Quality

We adhere to the basic tenet that “Quality is our destiny.” To this end, we pursue a “zerodefects” objective when designing, making, and selling our products, to ensure they remainfault-free until they are no longer used by the customer.

Contributing toLocal Communities

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

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

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CSR Report 2017│Rinnai Group CSR

Quality Policy
Based on our fundamental concepts, “Quality is our destiny,” our group employees strive to improve design quality,
manufacturing quality and sales quality in order to achieve "Quality Policy" with the customer first.
Quality Policy
To provide products with satisfaction and a high level of safety to customers
Customer-orientation
To offer products with safety and peace of mind
To disseminate safe usage
An enriched service body
We are embedding a culture of safety throughout the Group by rigorously promoting customer-centric thinking,product safety, and legal compliance through initiatives guided by our voluntary action plan on product safety.

Environmental Policy
Rinnai’s environmental initiatives are underpinned by the “Basic Philosophy on the Environment,”“Environmental Slogan,” and “Basic Environmental Activities” (“7 E Strategic Initiatives” set out below. Our
efforts extend beyond the development of environmentally responsible products that reduce energy consumption
when in use and initiatives aimed at reducing greenhouse gases.
We recognize how our diverse activities—including the development, procurement, production, sale, anddisposal of products—are inextricably linked to the global environment. Accordingly, all Group employees
engage in environmental initiatives across all business domains.
Basic Philosophy on the Environment
Rinnai’s basic philosophy is to embrace environmental protection on a global scale and contribute to society
through the pursuit of excellent, people- and planet-friendly technology, and product development, production,
sales and service 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.”

Environmental Policy (March 28, 2016)
1. We will promote activities to protect the environment by accurately identifying the effects that heating
appliances, including hot-water units, kitchen appliances and room heating appliances, as well as associatedproduct development and production activities and sales and service activities have on the environment and by
establishing environmental objectives and targets as well as programs that consider biodiversity, prevent
environmental pollution, mitigate the effects of climate change and adapt to climate change, and reduce
environmental impact.
2. We will abide by environment-related laws and regulations in addition to our own self-established standards.
3. We will conduct eco-minded materials procurement (E-Procurement) and manufacture environmentallyconscious products (E-Products) at environmentally sustainable factories and offices—E-Factory and EOffice—underpinned by a high level of environmental awareness among employees (E-Mind), and throughproduct sales and service activities that minimize impact on the environment (E-Marketing and E-Service), we
will implement initiatives to prevent global warming—that is, save energy—and also effectively utilize
resources, reduce waste and boost recycling, while working with communities and contributing to society.
4. We will set up a review committee at the management level and implement internal environmental audits, andwe will maintain a self-monitored environmental management system and strive for constant improvement.
5. We will make this environmental policy known to employees and all people who work within our organizationand disclose content to all stakeholders, that is, any interested parties.

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CSR Report 2017│Rinnai Group CSR

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CSR Report 2017│The Rinnai Group’s Value Chains and Their Impacts on Society

Our Value Chains and Their Impacts on Environment
The Impact of Rinnai’s Value Chain on the Global Environment
and Rinnai’s Ideal Goal
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 chainby sharing value with all of 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 theimpact of our business activities on society and that’s why we conduct efforts with the environment in mind
throughout all of our operations.
Demands andExpectations
from Society(Globally /Japan)

Handling
procurement
risk through the
supply chain- Increased
demand for heat
energyappliances
mainly in the
Asia region- Support forinternationalframeworks
such as the Paris
Accord andotherenvironmental
regulations

Input
Main resources
inputted(raw materials
and energy)

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

Rinnai’s
Value Chain

Procurement

Energy•Electricity:
108,370,000
kWh•Gas:10,950,000㎥•LP gas: 3,043 t•Other materials:
2,123 kl
(Conversion to
crude oil)

Water
• Ground water:
320,000㎥• Public water:
650,000㎥

OutputMain emissions

CO2 emissions
780,000t

CO2 emissions
100,000t

Solid waste(Includes valuable substances)
28,000tDevelopment
andManufacturing

30,000t
Wastewater
880,000 ㎥

Rinnai’s Ideal
Goal[Procurement]
To make the flow of
products from partsprocurement tocommercialization
better, share thevalue of initiatives
together with clientsand provide support
to solve issues while
thinking andgrowing together[Development]
Develop productswith superior
environmental
performance thatmeet the climate
and needs of theregion[Manufacturing]Pursue efficient
processes,
minimize invested
resources andenergy andpromote activities
that contribute toemission
regulations for
CO2, waste
products andchemical
substances

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CSR Report 2017│The Rinnai Group’s Value Chains and Their Impacts on Society

Provision ofhouseholdappliances that
contribute toenergy-efficient
homes such as zeroenergy houses

Promotion ofenergy-efficiency
in the “use stages”
with a largest
amount of CO2
emissions in the
product lifecycle[Sales and Logistics]
Strive to spread
products that
contribute toenergy-efficiency inthe water heater andheating fields
EnergySales,
Logistics,
and Services

CO2 emissions
11,000 t[Product Usage]
Proposal ofsustainable,
comfort-able, green
lifestyles through useof energy-saving
products

Product
Usage
EnergyCO2 emissions
10,960,000 t
Water

Achieve a
recycling-oriented
society[Services]
Improve the Rinnai
brand with security
activities through awealth of service
maintenance andinspections

CO2 emissions
7,000 tEnergyDisposalThrough various
events, we will appeal
to all of our end users
the environmental
performance of our
products and how to
use them with theenvironment in mind

[Disposal]
Application of designfor the environment,e.g., to make products
easy to disassemble inaccordance 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] Fiscal 2017 (April 2016 - End of March 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.

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CSR Report 2017│Stakeholder Engagement

Stakeholder Engagement
The Rinnai Group places great importance on communication with a variety of stakeholders and applies the valuable feedback
and requests we receive in our business activities.

Two-Way Communication Initiatives
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 fromour 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 on subjects
such as management policies and products, and also
work together to improve management throughactivities such as our Level-Up Workshop andShipping Subcommittee.
We will continue to engage in communication
with all of our shareholders on a daily basis, so that we
can evolve our business activities and improve levelsof satisfaction even further in the future.

Main
Stakeholders

Customers

Means ofCommunication•Customer Center•Official online
shopping site
“R.STYLE”•Exhibitions•Other events•After-sales services(inspection and repairs)

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 ofgetting through by phone” and - “politeness of operators.”
Details of responses are then fed back to operators so that they
can remedy unsatisfactory areas.
•In October 2016, the Maintenance and Inspection Call Center
opened as a contact for inquiries about inspection notices andinspection notification functions, and inspection appointments.
We also explain the inspection system clearly to thosecustomers who have not yet completed their owner registration,and encourage them to have a safety inspection.

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CSR Report 2017│Stakeholder Engagement

Employees

・In-house intranet
・In-house newsletter
・Training・Events
・Individual discussions
・ Corporate
ethicsadvisory service
・Workplace meetings

Shareholders,
Investors•General shareholders’meetings•Results briefings•Investor relations
meetings•Factory tours•Questionnaires

Business
Partners•New Year meetings /Policy presentations
for suppliers•Supplier liaison group•Online communication
tool, “R-LINE”*•Level-Up Workshop

Community,
Society(including
government)•Participation in local/
community
development activities•Support for culturalactivities and the arts
•Employee volunteer
activities•Support for
extracurricular school
activities (factory
tours, etc.)•From November 2017, we will start sending out legal inspection
notifications for household products, in addition to legal
inspection notifications for commercial products, which havealready been implemented. We also send notifications for“safety inspections” in accordance with the “long-term use
product safety inspection system” for products other than thosesubject to legal inspections, and strive to improve customers’
security.
•We have established a number of programs to create a more
pleasant working environment, including our Come-Backprogram, reduced working hours, and telecommuting
arrangements.
•Responding to requests from employees to be given feedback on
their personnel evaluation results, we have introduced
arrangements for one-to-one meetings with superiors andencourage headquarters to provide such feedback.
•In order to adjust the “cost of living difference” in respective
work locations, an urban allowance has been newly established.
•In cooperation with employee unions, we will create andimplement “interview guidelines for maternity/childcare leave.”•We are continuously committed to providing parental support
and promoting women's employment, and are enhancing ourprograms beyond statutory requirements.
• We carefully explain our “Evolution and Succession 2017”
medium-term business plan at results briefings and individual
IR meetings, and endeavor to improve understanding of theGroup’s management policy and strategy.
• We regularly organize facility and factory tours for institutional
investors to give them a better understanding of our strengths
and competitive advantages, and to outline our approach to
manufacturing and technical capabilities.
• We hold results briefings and individual IR meetings to answer
inquiries and explain our underlying thinking on dividend
policy.
• We receive inquiries from suppliers on our most recent
production levels and provide production data for individual
products and details of future production plans via regular
Supplier Liaison Group meetings.
• Responding to requests from suppliers for advice on, e.g.
improving quality and productivity, we organize level-up
workshops and help suppliers to make improvements in theworkplace.
• We are asked by people living near our plants and offices toassist with events and festivals aimed at enlivening theircommunities, and we actively assist and take part in such events
as a member of these communities.
• We assist in cultural and artistic events in the Nakagawa Canalarea and other regions, and provide ongoing support for
exchanges and creative activities at the grassroots level.
• In response to requests for assistance with community learningand school education, we organize events such as seminars on
the history of manufacturing at Rinnai and factory tours forschoolchildren.

*R-LINE is our online channels for sharing information and communicating with suppliers.

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CSR Report 2017│Stakeholder Engagement

CSR Report 2016 Questionnaire Results (n=424)

Selected Questionnaire Feedback
Q. What do you expect from the Rinnai Group in terms of energy?
・I think it is essential to switch energy to a more eco-friendly energy source. I hope the Rinnai Group to introduce
products that are simple, yet more generalized and reasonable for anyone.
・I don’t think many people can actually take action even if they have an interest in environmental issues. Under
such circumstances, if products such as the water heater that we use daily are environmentally friendly, many
people can participate in contributing to an environmental activity through their products. I hope the Rinnai
Group's further development of environmentally friendly products.
・Since I think renewable energy is unstable, it is important for companies that provide machines enabling us to
use energy effectively to make efforts to save energy. I hope for your company's further development.
Q. General opinions and impressions
・I feel that there seems to be too much text for the number of pages. I thought it would be understood intuitively
or be more explicit if you use graphics more, by replacing text with graphics.
・This report is easy to read and understand, even for non-experts. I felt that it does not have much data.
・I think it would be better to show KPI and its achievement status. I also feel that I want the Rinnai Group to havegoals set for global development, diversity and female management.
・I want you to create something easy for everyone to use, being conscious of universal design.

17

CSR Report 2017│Identifying CSR Material Issues

Identifying CSR Material Issues
Process of Identifying CSR Material Issues
We actively take on board the opinions and expectations of various different stakeholders and incorporate theminto our CSR activities, in the interests of the continued development of both the Rinnai Group and all of its
stakeholders. As well as enhancing our corporate value, we believe that ongoing activities such as these help our
stakeholders to grow and contribute to the creation of a more sustainable society.
We make every effort to identify social challenges relating to the Rinnai Group, through day-to-day
communication activities with stakeholders coupled with study and analysis of applicable guidelines and SRI
indices. We also identify CSR material issues in relation to our management strategies, revolving primarily
around corporate planning divisions.

18

CSR Report 2017│Identifying CSR Material Issues

Determining and Identifying CSR Material Issues
We have determined social challenges relating to the Rinnai Group, analyzed their level of importance tostakeholders and the Group, and identified CSR material issues.
These issues not only deeply affect and concern our stakeholders, but they are also identified as key
priorities under the Group’s management strategy.

*We have identified issues that are thought to be particularly important at the current time.
*We intend to review identified issues as necessary in line with changes in society.

19

CSR Report 2017│Identifying CSR Material Issues

Focus of Initiatives
Environmental Initiatives
CSR Material Issues- Energy consumption- CO2 emissions

Roughly half of all energy consumed by Japanese households is used for hot
water and heating. Reducing energy consumption and CO2 emissions in the
hot water and heating sector is therefore a top priority.

Target Area and Stakeholders
Target area: Global (Main focus of initiatives: Japan)
Target stakeholders: All
Details of Initiatives
We intend to develop and encourage households to use water heaters and heating units with an emphasis onenergy saving and environmental performance, in an effort to reduce energy consumption and reduce household
CO2 emissions.
Target Indicators
Amount it contributes to reducing CO2 emissions by using the productInitiatives Delivering Safety and Peace of Mind
CSR Material Issues- Consumer safety- Improving quality

Reducing kitchen fires and fatal bathroom accidents is naturally an
important priority alongside eliminating accidents resulting from productdefects.

Target Area and Stakeholders
Target area: Global
Target stakeholders: Customers
Details of Initiatives
We are working towards achieving “zero defects” by eliminating defects at every stage of the product lifecycle—
from development, production, and sale through to obsolescence—and pursue a range of activities to publicize
information and raise awareness of preventing accidents in the home.
Target Indicators
Improvements in the service person questionnaire evaluation results and number of certified service persons

20

CSR Report 2016│Management System

Management System

Corporate Governance
Basic Policy
From the perspective of a sharper competitive edge for the Group and sustained improvement in corporate value,
Rinnai has made efforts to augment practices and enrich the scope of corporate governance top management priorities.
We aim to reinforce the functions of corporate structures, such as the Board of Directors and the Audit & Supervisory
Board, and seek a higher level of management transparency, which will be achieved through quick and accurate
disclosure of pertinent information to various stakeholder groups and through access to a wide range of information.

Board of Directors
The Board of Directors has decision-making authority for important management issues affecting Rinnai andoversees the execution of duties by directors. The Board has seven members (including two outside directors) andas a rule meets once a month. Moreover, to clarify the management responsibilities of each business year and gain
trust from shareholders, Rinnai regulates the term of director to be one year.

Executive Structure
We have introduced an executive officer system in order to create a flexible management structure capable ofresponding 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.

Structure for Monitoring Management Performance
Audit & Supervisory Board has four Board Members, two of whom are outside members. Audit & Supervisory
Board Members attend important meetings, including those of the Board of Directors. They also monitor internal
control status—that is, progress on the establishment of internal controls and implementation of associatedpractices—with a focus on the results achieved by directors and executive bodies, and they check on the status ofoperations and asset management at the head office and principal branches. In addition, Deloitte Touche Tohmatsu
LLC undertakes accounting audits and verifies the soundness of accounting-oriented internal controls from a thirdparty perspective.

Reason for Choice of Current Corporate Governance Structure
The Company appoints two outside members to both the Board of Directors and the Audit and Supervisory Board.
We consider neutral and objective monitoring of management by outside parties to be an important element of good
corporate governance, and believe that outside directors and auditors fulfill this role and ensure that managementmonitoring by outside parties functions properly.

Development and Strengthening of Internal Controls
Internal controls are developed in accordance with our “Basic Policy on Development of Internal Control System,”
which was adopted by the Board of Directors to ensure that business is executed appropriately and efficiently. The
state of implementation is confirmed by means including risk management and internal audits, and the content of thebasic policy is revised regularly every year.
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CSR Report 2016│Management System

To respond to the internal control reporting requirements under the Financial Instruments and Exchange Act, theInternal Control Office (an independent division) reviews the Company’s basic policy of internal controls, andassesses the effectiveness of development and functioning of controls to ensure the reliability of financial reports.

Director and Auditor Compensation
The maximum amounts of compensation paid to directors and auditors and other related matters are determined byresolutions of general meetings of shareholders. Our internal regulations provide for basic matters concerning
directors’ compensation, including method of determination, revisions, and reductions, and the amounts paid aredetermined in accordance with these provisions by resolution of the Board of Directors in the case of directors’compensation, and through deliberations by the auditors in the case of auditors’ compensation. At Rinnai, directors
are paid a fixed amount commensurate with their assigned duties. (We did have a retirement benefit system fordirectors, but this was terminated at the general meeting of shareholders held on June 27, 2008.)
Any directors or auditors who receive total consolidated compensation of ¥100 million or more are listed individuallyin the financial statements. Note that the details of compensation paid to directors of the company in fiscal 2016,
ended March 31, 2016, are for compensation paid to the six internal directors, and compensation in that year came to¥383 million. (This figure does not include salaries paid to directors who serve concurrently as employees.)

Information Disclosure
For timely and appropriate disclosure of important information on the Group, we facilitated the internal regulations
and established “Disclosure Policy”, which is listed on our website, as the guidelines for information disclosure.

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 inorder to 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 thepresident meets regularly to identify key risks with the potential to impact on our survival, credibility, businessactivities, and assets. It also determines the divisions with primary responsibility for each risk, develops
mechanisms to prevent them from materializing, rapidly resolves crises, minimizes any damage that may occur as aresult, and prevents recurrences. The committee works with all divisions and group companies to head off risks andenhance risk response capabilities.

22

CSR Report 2016│Management System

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
Risks 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 Plan
When companies have no sufficient measures for natural disasters such as earthquakes and storms and theprevalence of infectious diseases, the business operations may be suspended for a long time, result in a significant
damage and give a serious impact on stakeholders. As a company which produces thermal energy appliance tosupport people's lifestyles, we believe it is our responsibility to maintain the stable supply of our products evenunder such circumstances.
We have positioned business continuity management as our 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 andreview business continuity plans (BCP), 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 and procurement 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
See page 97 “Measures for Risk Management and Stable Procurement”.

Information Securities Measures
See page 26 “Information Securities Measures”.
While society becomes more demanding toward company’s security reinforcement issues, our Group as a wholepromotes the adequate management of security systems by strengthening the awareness for proper information
handling through the establishment of the rules for confidential information management and the personal
information management. User authentication technology was adopted company-wide to manage accesses to IT
system and an entry/withdrawal management system with ID cards has been introduced to various businesslocations including 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, encryption of data stored in media to be used outside of the office, unauthorized access byoutsiders and virus and spam countermeasures.

23

CSR Report 2016│Management System

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

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,
and local language versions were distributed to Group companies in countries which uses other official language
than English. Each company member in charge of education provides employees training sessions.

“Code of Ethics” booklets (from the left: Japanese,
English, Korean language versions)“Code of Ethics” training sessions at Shanghai Rinnai Co., Ltd. (left),and Rinnai (Thailand) Co., Ltd. (right)

24

CSR Report 2016│Management System

Compliance Promotion Activities
Compliance Education
In the Company, the Legal Division is in charge of law regarding the operation deeply related to business divisions,and conducts legal education every year. During fiscal 2017, a total of 501 people in the Company group took thecourse to deepen their knowledge of law.
Also, ethics education has been conducted every year during employee training for new recruits and byrank; 325 people attended in fiscal 2017.
We also provide compliance-related information to employees at group companies in Japan via otherchannels, including the Group’s intranet, which we use to publish information on topics such as legal revisions andarticles explaining law that applies to our operations.

Number of compliance training participants in fiscal 2017
CourseParticipants
Legal training
501
Ethical training
325
Legal education

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 2017, these showed that 99.8% of respondents were familiar with the corporatemotto and 99.7% understood our corporate mission. We will continue to actively promote compliance activities tomaintain these high 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 approach a superior or the
person responsible for the division with such suspicions, the employee may report the perceived infraction to the
Corporate Ethics Helpline. The helpline system is available through telephone, e-mail, and letter, from October
2015.
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/she
consulted the matter and we also pay a full attention to the protection of privacy of the person who made thereport.
In fiscal 2017, the helpline received eight reports and requests for advice (five at inhouse helpline office and threeat outside helpline office). Appropriate measures have been taken, including investigation and confirmation of thefacts in these cases of alleged misconduct.

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CSR Report 2016│Management System

Disciplinary Committee
To maintain fair working environment, we apply strict measures to an employee who breached the internal rules,
Code of Ethics or committed unfair practices based on the working rules under the guidance of the Disciplinary
Committee.

Compliance Violations
There were no serious compliance violations in fiscal 2017.

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 inJapan, to educate employees who handle personal information, and to establish physical and technical systems toinsure the safe management of personal information in each workplace. The privacy officers also conduct aninternal audit once a year to verify the quality of personal information management in each workplace.
There were no leakage of personal information in fiscal 2017.

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 are leading 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 arehandled with strict 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 meets regularly to discuss and share information on information security matters and raise the standard of
information security.

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CSR Report 2016│Management System

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 businessactivities in an appropriate manner. Regular training is also provided to ensure that information security issues aredealt 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 thedamage. We also strive to prevent recurrences and reinforce countermeasures by identifying the causes ofproblems.

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 other arrangements concerning information security to check for problems and make continuous
improvements.

27

CSR Report 2017┃Major Award Winning History

Major Award Winning History
Rinnai received following awards from April 2016 to March 2017.

Rinnai Corporation
2016

AugustAppropriate Packaging Award of Japan Packaging Contest 2016

September

Good Design Award 2015

January

ECO ONE received the ECCJ Chairman’s Award in the Energy Conservation Awards
hosted by the Energy Conservation Center, Japan (ECCJ).

February

Selected as 2017 Health and Productivity Company by the Ministry of Economy, Tradeand Industry and the Tokyo Stock Exchange

2017

Rinnai Korea Corporation
2016

June

2017

February

Korean Standard-service Quality Index (KS-SQI) by Korean Standards Association:
No.1 at the service (Boiler) section
Brand Survey by KMAC: Korea’s Most Admired Companies
No.1 at the residential boiler section

P.T. Rinnai Indonesia
September

Platinum Award in the gas tabletop cooker category of the 2016 Indonesia Best Brand
Awards sponsored by SWA

NovemberIndonesian Customer Satisfaction Award 2016 in the Gas Stove category

2016

Rinnai Holdings (Pacific) Pte Ltd.
2016

May

Regional Award of BEI ASIA AWARDS

Rinnai New Zealand Ltd.
2016

May

Rinnai Carton Submarine received Gold Winners in Pride in Print 2016

Rinnai Brazil Heating Technology Ltd.
2016

December

Top of Mind Award by Casa & Mercado: No.1 at the gas water heater section

28

CSR Report 2017│Environmental Initiatives

Environmental Initiatives

Evolution of ECO ONE hybrid water heater with heating systems

Targeting proliferation of energy-efficient water heater withheating systems that help prevent global warming

The Paris Accord*1, a new set of regulations aimed at preventing
global warming, came into effect in November 2016, and many
countries around the world are taking action to counter warming,
which is becoming a serious problem.
Construction of energy-efficient homes and buildings has become
an inevitable trend in Japan, where the government has set an objectivethat calls for the majority of custom-built detached houses constructedby home builders and others to conform to net zero energy house(ZEH*2) specifications by 2020.
Hot water supply and room heating together account for more thanhalf of energy consumed by homes, and our ECO ONE hybrid water
heater with heating systems is attracting attention because it
contributes to a dramatic reduction of CO2 emissions in both areas. In
this section, we introduce the evolutionary process of ECO ONE,
which has continued to undergo environmental performance
improvements, as well as our efforts to popularize it.
*1 Paris Accord: Set of international rules to counter global warming. The Accord’s target is to keep the increase in average global
temperature to within 2˚C higher than it was before the Industrial Revolution. Achieving this target will require a zero emissioncommitment to balancing emissions and absorption of greenhouse gases in the second half of the century.
*2 ZEH (net zero energy house): A house that ultimately emits zero net energy by eliminating waste of energy used and creating
new energy through solar power generation and the like.
*3 Source: Energy White Paper 2017 (Agency for Natural Resources and Energy)29

CSR Report 2017│Environmental Initiatives

Targeting 1.6-million-ton reduction in CO2 emissions by 2020
Heat-energy appliances, such as water heaters, emit the greatest
volume of CO2 during the actual consumer usage stage of their life
cycles. Suppression of global warming, therefore, requires two
important goals—improvement of energy efficiency (including
combustion efficiency of the appliances themselves) andproliferation of environmentally friendly products.
Rinnai’s medium-term environmental target for 2020 (fiscal
2021, ending March 31, 2021) is a 1.6-million-ton reduction in
CO2 emissions, using fiscal 2006 as the base year, and to this end
we will pursue initiatives aimed at saving energy in homes andcutting CO2 emissions. We have been making steady progress,
with a 250,000-ton contribution in fiscal 2011 and a 980,000-ton
contribution in fiscal 2017.
In all aspects of our core business—product development,
manufacture, and sales—we will pursue efforts to prevent global
warming.
*4 CO2 reduction contribution: The amount of CO2 emissions reduced thanks to improved performance of Rinnai-brand water
heaters, compared 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.)

ECO ONE: World’s first system to combine a high-efficiency gas water heater withheating systems and a heat pump
ECO ONE, which supplies thermal energy for water and floor heating, is the world’s first residential-use hybrid
water heater with heating systems that uses gas and an electric heat pump. It consists of three main units: a heatpump, which uses electricity to boil water; a tank, which stores the hot water; and a high-efficiency Eco Jozu gas
water heater that provides backup when reheating water and using large volumes of water.

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CSR Report 2017│Environmental Initiatives

Evolution of ECO ONE improving environmental performance and installation
flexibility
Birth of world’s first residential-use hybrid water heater with heating systems
Rinnai’s ECO ONE hybrid water heater with heating systems, theworld’s first residential-use hybrid water heater with heating
systems, was first launched in April 2010, based on a new concept
of combining gas and a heat pump.
The first generation used R410 as its heat pump refrigerant. It
efficiently captured atmospheric heat using minimal electricity tofill its 50-liter tank in around 45ºC. When using large amounts ofwater, where heat pumps struggle, or when reheating bathwater,
gas provides the required backup. By exploiting the strengths ofelectricity and gas in this way, we achieved a primary hot-watersupply energy efficiency of 112%, well above the 100% figure thatwas considered the limit at that time.

First generation ECO ONE

Primary energy efficiency:
Refers to the amount of energy (hot water) received as a ratio of the amount of primary energy (such as coal,petroleum, and natural gas) consumed. Larger ratios mean greater energy efficiency of the appliance.
The second generation, launched in 2012, had a 100-liter tank added
to the lineup and boasted a primary hot-water supply energy
efficiency of 129%. It also marked the debut of the double hybrid
system, which uses hot water made by the heat pump to handle both
hot water supply and room heating. Its primary hot-water supply
energy efficiency was highly evaluated, with ECO ONE receiving
the top energy conservation prize, METI Award, at 2013 Energy
Conservation Awards, hosted by the Energy Conservation Center,
Japan (ECCJ).
Second generation ECO ONE

Improved installation flexibility and upgraded lineup for diverse housing
environments
The third generation, unveiled in April 2015, used R32*1, an
alternative to CFCs, as the heat pump refrigerant, and delivered a
primary hot-water supply energy efficiency of 138%. To encourage
the proliferation of energy-efficient housing, we stepped up ouremphasis on “ease of installation,” which we had tackledrepeatedly since the second generation. To this end, we improved
the installation method for the tank and gas heat source device aspart of a rigorous design reassessment. We also upgraded our
lineup, with one model having the tank and gas heat source
separated from each other to permit installation in condominiums
and other multiple-dwelling complexes, and another portable model
especially for urban areas that can be installed in cramped spaces orunder windows. We also enhanced convenience by developing a
dedicated smartphone application enabling operation fromanywhere in the home.
These improvements in environmental performance andinstallation flexibility made ECO ONE very popular, and the third
generation received the Energy Conservation Center Chairman’s
Awards at 2016 Energy Conservation Awards.

Third generation ECO ONE

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CSR Report 2017│Environmental Initiatives

Split-system model for condominium installation

Portable model that can be installed under windows (50-liter type)

Achieved primary hot-water supply energy efficiency of 156%, the highest in theindustry
Since the release of the first generation, we have sought to improvethe energy-saving performance of ECO ONE, while working toenhance ease of installation to accommodate diverse housing
environments and expand our lineup.
In August 2017, the eighth year since the birth of ECO ONE, we
added a model with a tank capacity of 160 liters to the thirdgeneration lineup. This 160-liter model has a primary hot-watersupply energy efficiency of 156%*2, the highest in the industry, andis strongly expected to contribute to the proliferation of ZEHs andother energy-efficient houses.
Reduction of CO2 emissions in the residential sector will be
crucial to achieving the targets of the Paris Accord for preventing
global warming after 2020. We will continue enhancing ECO ONE
in order to satisfy these social demands and expectations.

Third generation ECO ONE(160-liter model)*1 R32: Refrigerant with zero ozone depletion coefficient and extremely low global warming potential (GWP)*2 Rinnai estimate (as of May 2017)32

CSR Report 2017│Environmental Initiatives

Environmental Special Feature: Special Discussion

Expectations of Rinnai with respect to making homes energyefficient, key to preventing global warming, and realizing asustainable society

For this environmental special feature, we had a conversation with Mr. Takao Sawachi, Director at the Building
Research Institute, National Research and Development Agency, which has been involved in formulating energy
efficiency standards for housing. We spoke about Rinnai’s future environmental initiatives under theme of “making
homes energy-efficient,” which will be key to preventing global warming.

Proliferation of energy-efficient equipment is indispensable for achieving
greenhouse gas reduction targets
Nakao: The Paris Accord came into effect at the 2015 United Nations Climate Change Conference (COP 21). Under
the Accord, Japan promised to achieve a 26% reduction in its greenhouse gas emissions by 2030, compared with the2013 level. In this regard, please tell us about the relationships with housing equipment manufacturers like Rinnai,
as well as future trends.
Sawachi: Under the ParisAccord, Japan is targeting a 40% reduction in the business sector and a 39% reduction in
the residential sector by 2030. Reducing CO2 emissions in the residential sector is not difficult, as we can achieveenergy savings in new houses, but the 39% target is a challenging goal because it also includes existing houses.
The key is to reduce primary energy consumption in homes, and hot water supply accounts for around one-thirdof such consumption. Here, I believe that high-energy-efficiency water heaters will deliver great benefits.
Nakao: One example of energy-efficient water heaters is Eco Jozu, a latent-heat-recovery type of gas water heaterthat recycles exhaust heat to achieve a water-heating efficiency of 95%. We are promoting the spread of Eco Jozu
water heaters in existing houses, as well as new houses of course. Due to diversification of sales channels, including
the Internet, there is a sense that the proliferation of Eco Jozu models, which are more expensive than others, isstalling a little.
Sawachi: Is that true? Looking at running costs, however, available figures show that users can recover the extra costin around eight years, so there are considerable benefits. Conserving energy in existing houses is indispensable forachieving the 2030 target. For this reason, we need provide information to give customers an understanding about
environmentally friendly products and their cost benefits. I would also like Rinnai will work on fostering the spreadof energy-efficient appliances, notably Eco Jozu.

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CSR Report 2017│Environmental Initiatives

Takao Sawachi
Director,
Building Research Institute,
National Research and Development Agency

Nakao: I agree. Since global warming is a worldwide issue, we are striving to develop and popularize energy-saving
water heaters, especially in high-CO2-emitting nations, such as China and the United States, in addition to Japan.
In the United States, storage-type (tank-based) models account for a large share of the water heater market. If we
can encourage customers to switch to instant-heating (tankless) models, we can help reduce CO2 emissions.
Sawachi: How large is the U.S. market?
Nakao: The water heater market is around 9 million units per year, of which storage-type models account for 95%.
Sawachi: While latent-heat-recovery water heaters are good, even the use of regular instant-heating models will leadto considerable energy savings. Storage-type models require space for the tank, so instant-heating models are
beneficial with respect to compactness. You have many challenges ahead, including establishment of maintenancesystems, but I have high expectations that Rinnai will contribute to the popularization of energy-efficiency appliances.

“Reliable energy-saving performance evaluation” is important for the proliferationof energy-efficient housing
Nakao: Right now, we are witnessing the spread of net zero energy houses (ZEHs), primarily new homes. Please tell
us about the issues and initiatives for future energy-efficient housing, including ZEHs.
Sawachi: Energy-saving renovations of existing houses are not making much progress, and for this reason we needto enhance the energy-efficiency performance of new houses. Proliferation of solar power is also necessary to achieve34

CSR Report 2017│Environmental Initiatives

a low-carbon electricity supply, so we need to apply higher ZEH standards than those currently adopted for existinghouses. I think the benefits of high-efficiency water heaters will play a part in the spread of ZEHs in Japan, which
consumes large amounts of energy for water heating.
Nakao: We began selling our ECO ONE hybrid water heater with heating systems, which combines a heat pump and
Eco Jozu, in 2010. Thanks to its top-class energy-saving performance, ECO ONE is attracting attention in the
campaign to promote ZEHs and other energy-efficient houses in the nation. I am keen to foster the spread of ZEHs
by providing products that deliver high energy-saving performance and comfortable hot-water-based heating.
However, the energy-saving performance of hybrid-based room heating is impacted by the housing environment inwhich the system is installed. Accordingly, there are issues with evaluation methods, so we are working withknowledgeable people to establish such methods.

Kimiatsu Nakao
General Manager, Sales Planning Division,
Marketing & Sales Headquarters
Rinnai Corporation

Sawachi: The establishment of appropriate energy performance evaluation criteria is important to the spread ofenergy-efficient homes in the future. The most important aspect in evaluating primary energy consumption is theoperating efficiency of the equipment, so it is important to establish reliable energy-saving performance evaluation
criteria. This includes using actual operating efficiency as an evaluation benchmark, as well as conducting evaluation
tests by third-party entities as required.
In addition to equipment development, we must consider design factors that encourage users to select and install
our products. In the case of hot-water-based floor heating, factors other than heat source are very important, notably
hot water panel specifications, installation area, heat insulation of piping, and other aspects related to installation andsetup. Even if the rated efficiency is high (thanks to a heat source with large capacity, for example), the actual
efficiency can decline depending on the installation environment. In order to save energy in homes, it is very
important to take into consideration the environment and other conditions affecting the equipment to be installed.
Nakao: It is important to have evaluation criteria based on actual efficiency, including installation environment andreliable evaluation by third-party entities, it seems.
Sawachi: Knowledge obtained through development of new evaluation methods can be reflected in the developmentof products with high energy-saving performance. It will be challenging, but I really want Rinnai to do its best to
establish methods for evaluating the performance of hybrid-based heating, and I look forward to your ongoingdevelopment of products with high energy-saving performance.

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CSR Report 2017│Efforts to Make Products Better

Efforts to Make Products Better
With awareness of global warming and other social challenges spreading, consumer demands are moving beyond simply physicalaffluence in search of value that contributes to the quality of life. In recognition of these evolving demands, we are working to develop
and popularize products tailored to local climates and needs that make life much more environmentally friendly.

Strong Start to Achieving Our Mid-term 2020 Environmental Targets
We are working to raise energy efficiency and popularize the use of environmentally friendlier products to achieve our
medium-term environmental target of making a 1.6 million ton contribution to reducing CO 2 emissions produced during
use of products by 2020. This “CO2 reduction contribution” we define as the reduction in CO2 emissions resulting fromthe improved performance of our water heaters compared with the emissions that would have been produced by products
offering a 2005 level of performance. The CO2 reduction contribution in fiscal 2017 was 980,000 tons.

Environmentally Friendly Products for the Bathroom, Living Room, andKitchenECO ONE Hybrid Water Heater with Heating System
ECO ONE supplies hot water (thermal energy) for the bathroom and livingroom floor heating. It is the world’s first hybrid water heater and heating system
for the home that makes combined use of gas and an electric heat pump, and thelatest model’s primary energy efficiency is a world-beating 156%.
The second-generation ECO ONE won the METI Award in the Productand Business Model category of the 2013 Energy Conservation Awards, while
the third-generation model won the Energy Conservation Center Chairman’s
Award in the same category. The ECO ONE remains the industry leader forenvironmental performance and good design.

Eco Jozu High-Efficiency Gas Water Heater
Eco Jozu is a high-efficiency gas water heater that works by condensing thewater vapor in exhaust gas to capture its latent heat. This raises water heating
efficiency from the 80% achieved by conventional models to almost 95%. It canheat copious amounts of water without using much gas. Like the ECO ONE, asingle Eco Jozu can supply all the hot water needed for kitchen, bathroom, andfloor heating use.

Yuka Hotto E Hot Water Floor Heating System
Hot water floor heating systems heat entire rooms from the feet up by circulating hot water produced by a heatsource (such as an ECO ONE or Eco Jozu) through underfloor pipes. Conventional systems need water that has
been heated to 60oC to heat a room. Thanks to its use of insulated piping to minimize heat loss, however, the Yuka
Hotto E can warm a room using water that is only 40oC. Used in tandem with an ECO ONE, the Yuka Hotto E
produces approximately 30% lower CO2 emissions than conventional products.

Bath Hotto Bathroom Heater/Dryer
Depending on the region and the season, Japanese bathrooms can be much
warmer or colder than other rooms in the home, and this can be both unpleasantand potentially harmful to health. The warm air from a bathroom heater/dryer
eases the physical discomfort by eliminating the difference in temperature
between the bathroom and other rooms, which can be especially marked in
winter.
After bathing, Bath Hotto can also be used as a clothes dryer to reduce the36CSR Report 2017│Efforts to Make Products Better
formation of mold and condensation in the bathroom. It features an eco-drying
mode, which slowly dries clothes with cool air before running a drying cycle, as
well as an energy-efficient heat-saving function to keep the bathroom warm.
These features reduce running costs by about 32% compared with our previous
model.

Kanta-kun Gas Clothes Dryer
Both in Japan and other countries, more and more households are becoming
reluctant to dry washing outside due to the risk of it becoming covered in dust
and particulate matter from the atmosphere. Our gas clothes dryers contain alarge-capacity drum that can dry up to 5 kg of laundry per load. The powerfulcurrent of warm air generated by gas combustion dries loads in an instant,leaving fibers soft and fluffy through and through.

Fan Heaters
Our fan heaters ensure that greener lifestyles are also comfortable
lifestyles. They feature a “green comfort mode” that controls combustion for acertain period once a preset temperature has been reached to prevent rooms
from becoming overheated, thus reducing gas consumption by up to 16%, andthe latest model has a revamped, resource-saving design that makes it 1-1.5 kg
lighter than previous models.

Growing Popularity of Rinnai’s Environmentally Friendly Products Around
the World
Rinnai does business in 80 countries and underpins lives all over the world. Having become an integral part of so many
people’s homes and diets, we are committed to continuing to develop our presence in order to improve people’s lives andhelp tackle environmental issues in a manner suited to local environmental conditions.

United States
Most households in the U.S. use storage water heaters,1 which can potentiallyrun out of water in the middle of a shower. Our water heaters allow the watertemperature to be controlled in 1oC increments, which means you instantly get
as much hot water as you need, when you need it.
Their water heating efficiency can reach almost 96%, and Rinnai
America is working hard to raise awareness of their energy-saving credentials,
both by generating publicity through the media and by providing training
throughout the U.S. for some 200,000 installation engineers. Launched in 2000,
cumulative unit sales as a result passed the 2 million mark in 2016.
*1Storage water heaters achieve poor thermal efficiency of 59%-62%. They store water in a tank and supply hot water that has beenheated by a heating element or similar means. Heat radiation loss occurs constantly. The U.S. water heater market comprises
approximately 9 million units, 95% of which are storage water heaters.

China
In northern China where the winters are harsh, most heating appliances burncoal. Driven by concerns about worsening air pollution caused by emissions of
PM2.5 and other pollutants, a major government-led project2 is now underway
in some parts of the country to encourage people to switch to using natural gas
as a fuel for home heaters.
Natural gas emits no sulfur oxides (SOx) and less carbon dioxide(CO2) and nitrogen oxides (NOx) when combusted than other fossil fuels,
making it an extremely environmentally friendly energy source.
Shanghai Rinnai is promoting the replacement of old boilers withnew ones that use natural gas as an energy source as part of its efforts to protect
the global environment.
37

CSR Report 2017│Efforts to Make Products Better*2This national project to promote use of natural gas currently covers the cold region of Beijing and its surrounding cities andprovinces, including the city of Tianjin and provinces of Hebei, Henan, Shanxi, and Shandong. It is being promoted particularly
strongly in Beijing and Hebei.

Australia
The southern hemispheric landmass of Australia covers a vast 7.7 million
square kilometers and receives a high volume of solar radiation. To takeadvantage of all this sunlight, Rinnai Australia sells solar water heating systems
that are manufactured in Australia. Solar water heating systems capture solar
heat by means of heat collection panels to produce warm water. Used inconjunction with electric water heaters and tankless gas water heaters, they can
supply water at a constant, moderately warm temperature.

BrazilElectric showers that consist of an electrically heated wire in a shower head
are widely used in Brazil. Showers of this kind consume a great deal ofelectricity during use and are also vulnerable to short circuiting.
The precarious balance of supply and demand for electricity in the
country is also a serious social problem, and Rinnai Brazil is working todevelop and popularize safer, more environmentally friendly gas water heaters
to make Brazilians’ lives more comfortable.

South Korea
As Korean winters are extremely cold, use of boilers (similar to the
combined room and water heaters sometimes used in Japan) predominates,
rather than the tankless water heaters typically found in Japanese homes. In
Korea, as in Japan and the U.S., condensing boilers are growing in popularity
and we are continuing to pursue improvements to make water heaters moreenergy efficient.

Example: Development of products tailored to environments in Southeast Asia
As part of our strategy of developing environmentally friendly products forthe rapidly growing Southeast Asian market, Rinnai Vietnam has reduced
the weight of the cooking stoves that it manufactures by cutting the amountof plating and other materials used to make them. The number of screws
used, for example, has been reduced from 20 to eight. Although just as
strong as the old models, the new stoves are approximately 0.3 kg lighter
and also cost less to manufacture (a cost reduction of 8% compared with theprevious model).

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CSR Report 2017│Efforts to Make Products Better

Compliance with Design for the Environment Principles
We follow Design for the Environment (DfE) principles in accordance with our own rules on product evaluation in orderto make appliances more recyclable and energy and resource efficient. Environmental assessments are made at every
stage of the product lifecycle from planning and design onward to ensure that every model is more environmentallyfriendly than its predecessor.

Our Key DfE Principles
・Save resources.
・Reduce the impact on the environment at the production stage.
・Reduce the impact on the environment at the use stage.
・Increase the potential for recycling.
・Ensure safety.
・Streamline collection and transportation.

Efforts to Improve Packaging
We use packaging made from easy-to-recycle cardboard, and we are also expanding our use of returnable packaging topromote reuse of packaging materials and reducing the weight and volume of packing by making more effective use of
packaging components.

All-in-One Product and Accessories Packaging Tray Wins Appropriate Packaging Award
Made solely from cardboard, this tray is capable of holding a product (an instant hot water pump unit) and 3 kg ofaccessory parts. Judges at the 2016 Japan Packaging Contest were impressed by its excellent functionality and economic
use of packaging materials, and awarded it the Appropriate Packaging Award.
How our all-in-one packaging tray fits together

39

CSR Report 2017│Efforts to Make Products Better

Recycling Initiatives
Product 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, andconfirms and shares information on the status of disposal. Surveys confirmed that end-of-life gas and oil appliances arebeing properly disposed of and that the recycling rate remains high. These results will be useful in product design andimprovement activities.

Recycling Household Electrical Appliances
Japan’s Home Appliance Recycling Law went into effect 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 air-conditioner and aclothes 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 by households.
In accordance with the law, Rinnai has outsourced the recycling of containers and packaging to designated businesses
that undertake associated services on the Corporation’s behalf.

40

CSR Report 2017│Environmental Management System with Suppliers

Environmental Management System with Suppliers
CO2 emissions, threats to water systems, chemicals, and all kinds of other risks along supply chains necessitate
mitigative action by companies. We continuously practice green procurement management in accordance withnational regulations wherever we do business and work with our suppliers to protect the environment.

Promoting Management of Chemical Substances Present in Products
The Rinnai Group practices strict management of chemical substance present in products with its suppliers not
only in order to comply with all relevant legislation monitoring regulatory developments around the world, butalso to minimize use of chemicals that might affect people and the environment at all stages of the productlifecycle so as to supply products that are both safe and environmentally friendly.
We manage the chemicals present in products by following “Chemical substance management policy”
that regulate the chemicals present in materials procured by us in accordance with “E-Procurement Standards” forgreen procurement. We are committed to practicing stricter chemical management in collaboration with othermembers of the Rinnai Group and our suppliers.

E-Procurement Standard [Ver.3] (left)
and Policy on Chemical Substance Management [Ver.3.0]

Practical training for our suppliers

Principal EU regulations
・RoHS: Directive on the restriction of the use of certain hazardous substances in electrical and electronicequipment
・REACH: Registration, Evaluation, Authorization and Restriction of Chemicals

Making Our Supply Chains More Environmentally Friendly
We share information on the value of initiatives to protect the environment, improve quality, and so on with our
suppliers to facilitate action to solve the challenges faced. These initiatives also help reduce energy costs, shorten
lead times, and improve quality.

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CSR Report 2017│Environmental Management System with Suppliers

Example 1: Improvements to printed materials
User manuals and other printed materials that are directly handled by thecustomer are sorted, packed, and shipped to factories with the utmost care, bothto avoid getting them creased or dirty and to make sure that they do not become
mixed up with other printed materials.
Working with 13 plants and offices, including the printers that produce
user manuals and wiring diagrams, we are making improvements to printing andlogistics processes too, as a result of which we reduced CO2 emissions byapproximately 42 tCO2/year, and waste (paper) emissions by approximately 22ｔ/year.
These improvements were awarded the Nagoya Municipal Industrial
Research Institute Director’s Award at the 21st Resource Recycling Monozukuri
Symposium IMS.

Adoption of simpler packaging

Example 2: Development of next-generation connectors
Connectors are the parts needed to electrically connect one function to another.
Large numbers are used in products such as water heaters and gas cooking
stoves, and they come in a variety of sizes depending on how and where they areused.
We worked with connector, harness, and wire manufacturers to brainstorm
possible solutions to the problems faced, resulting in the development of aconnector that reduces the impact on the environment throughout supply chains.
Thanks especially to the improved coating method and simpler packaging used
for the new connector, we reduced waste emissions by approximately 21 tons andwater use by approximately 19,000 liters per year.

Increased range of connector
colors to prevent mis-connections
during assembly work

Example 3: Design of environmentally friendly screws
Having taken a closer look at the tens of thousands of tiny screws we use at thefactory every day, we worked with suppliers to devise screw specifications to suit
our products.
We have managed to improve thread fastening performance while savingenergy (by speeding up the fastening process) and resources (by using fewer
materials). We reduced CO2 emissions by approximately 2 tons per year andmaterial use by approximately 2 tons per year.
Screw design change andreturnable

packaging

Example 4: Packing production method revised
We have rethought how we make and distribute the packing used in water heaters, resulting in improved
workability and reductions of around 2 tons per year in CO2 emissions and 7 tons per year in waste emissions.
Main changes
・Cutting layout optimized
・Gluing and cutting processes integrated (to reduce lead time)・Packaging specifications changed (to streamline sorting and shipping work)

Steps in packing production process

42

CSR Report 2017│Environment-Conscious Monozukuri

Environmentally Conscious Monozukuri
Global environment is affected by the worldwide population growth and consumer spending than ever before.
Rinnai is committed to emissions regulations of CO2, solid waste and chemicals by controlling input resourcesand energy, and pursuing all kinds of technological innovations and exercising all the manufacturing expertisethat it has accumulated since its inception.

Production and Technology Development Center

Impact on the Environment of the Rinnai Group
Quantitatively monitoring environmental impacts is crucial to environmental protection work.
The Rinnai Group monitors energy consumption and CO2 emissions (scopes 1 and 2) associated with businessactivities throughout its supply chains, and places a particular focus on reducing impacts arising from “use of soldproducts” (category 11 of scope 3), which generates significant emissions.
The Group also has its performance independently verified to ensure the accuracy and reliability of
information that it publishes.
*Scope 1: All direct emissions into the atmosphere from sources of greenhouse gas by business activities of thereporting company.
*Scope 2: Emissions from the generation of purchased or acquired electricity or heating consumed by the reporting
company.
*Scope 3: All indirect emissions (not included in scope 2) that occur in the business activities through value chainof the reporting company.

Scope of Accounting
Rinnai Corporation and consolidated subsidiaries
Company name
Rinnai Corporation
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.
Techno Parts Co., Ltd.
Rinnai Net Co., Ltd.
RG Co., Ltd.
Rinnai Enterprises
Rinnai Australia Pty., Ltd.
Rinnai America Corporation

Rinnai Holdings (Pacific) Pte Ltd.
Rinnai New Zealand Ltd.
Rinnai Hong Kong Ltd.
Rinnai Taiwan Corporation
Rinnai Korea Corporation
Rinnai (Thailand) Co., Ltd.
Shanghai Rinnai Co., Ltd.
Rinnai Viet Nam 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, 2016, to March 31, 2017
Overseas: From January 1, 2016, to December 31, 201643

CSR Report 2017│Environment-Conscious Monozukuri

Third-Party AssuranceThis icon indicates that a measure has been third-party assured by Lloyd’s Register Quality Assurance(LRQA).

CO2 Emissions
Scope
Scope 1
Scope 2Unit

1
2Purchased goods and services
Capital goods
Fuel- and energy-related3
activities
Upstream transportation and4
distribution
5
Waste generated in operations
6
Business travel
7
Employee commuting
Scope 3
8
Upstream leased assets
Downstream transportation9and distribution
10 Processing of sold products
11 Use of sold products
End-of-life treatment of sold12
products
13 Downstream leased assets
14 Franchises
15 Investments
Total of Scopes 1, 2, and 3

tCO2e

Fiscal 2017
38,663
61,843
778,284
41,246Percentage
0.3
0.5
6.5
0.3

2,937

0.0

ー

10,953

0.1

ー

630
597
1,783
Included in scope 1

0.0
0.0
0.0
ー

ー
ー
ー
ー

ー

ー

ー

Not applicableー

10,964,072

ー
92.1

6,891

0.1

ー

Not applicable

ー
ー
ー
100

ー
ー
ー

Not applicableNot applicable

11,907,900

Assuranceーー44CSR Report 2017│Environment-Conscious Monozukuri

Energy Consumption
ScopeElectricity

Unit
MWh
Use of equipment onpremises
Use of vehicles

City gas
Methane gas

Use of equipment on premise
Use of vehicles

LPG
Butane gas
A-type heavy oil
KeroseneUse of equipment on premise
Use of vehicles
Use of equipment on premise
Use of vehicles

Light oil
Gasoline

Fiscal 2016
108,748

1,000 Nm3

10,7351,000 Nm3
1,000 m3
t
t
t
kl
kl
kl
kl
kl
kl

3.1
24.3
3,043
3.6
68.8
0.2
25.6
26.2
315.7
10.6
1,810

AssuredConditions for Calculations
Scope 1CO2 conversion factors
Emission factor:
MOE/METI, GHG Emission Calculation and Reporting Manual (Ver. 4.3.1)
Heating value:

Gas

Oil

・City gas: 45 MJ/Nm3
・Methane gas: 39.7 MJ/m3
Town gas

2.24

tCO2e/1,000 Nm3

Methane2.02

tCO2e/1,000 Nm3

LPG

3.00

tCO2e/tButane3.00

tCO2e/tHeavy oil

2.71

tCO2e/kl

Kerosene

2.49

tCO2e/kl

Light oil

2.58

tCO2e/kl

Gasoline

2.32

tCO2e/kl

Scope 2CO2 conversion factors
Domestic emission”Emission Factors by Electricity Utility (for FY2017 Reporting)” in MOE/METI, GHG
factors
Emission Calculation and Reporting Manual (Ver. 4.3.1)
Overseas emission
Latest figures published for electricity utilities, etc. in the countries concerned
factors

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CSR Report 2017│Environment-Conscious Monozukuri

Electricity

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

0.670
0.960
0.490
0.431
0.790
0.525
0.459
0.544
0.704
0.815
0.120
0.082
0.840

tCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/MWhtCO2e/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:

Rinnai Corp.
・MOE, Emission Factor Database (Ver. 2.3)

Emission factors:

・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 kgCO2e/kWh

Emission factors:

Federation of Electric Power Companies of Japan, Environmental Action Plans in theElectricity Industry, September 2015 (reference materials: collected data on performancein FY2013)
・ City gas: 2.21 kgCO2e/m3
Tokyo Gas Co., Ltd., City Gas CO2 Emission Factors (13 A, 45 MJ/m3, ordinary
households and other customers receiving low-pressure supply)

Third-Party Assurance Statement

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CSR Report 2017│Environment-Conscious Monozukuri

Efforts to Prevent Global Warming
Action to Conserve Energy
As a “specified business operator” under the revised Act Concerning the Rational Use of Energy, we are pursuingenergy efficiency improvements in line with an established energy management policy and targets.
We believe that streamlining the manufacturing process improves productivity and slashes total energy
needs. Adopting an end-to-end approach to production that embraces every process from pressing to assembly andpackaging, we are working to reduce the time that products and supplies are at a standstill somewhere, whether
when being transported, awaiting work on the production line, or being stored in a warehouse, in recognition of thefact that all kinds of losses lead to energy losses.

CO2 Emission Intensity *1 Reduced by 22% (Scope: Rinnai)
Our “7E Strategic Initiatives” environmental action plan set a target of reducing CO2 emission intensity by at least
7% relative to fiscal 2010, ending March 31, 2010, by fiscal 2017, ended March 31, 2017, and in fiscal 2017 weachieved a 22% reduction.

(*1) CO2 emission intensity: CO2 emission 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

Results of Activities
Upgrades/new
installations(investments)

Upgrading to high-efficiency lighting and air conditioning systems, upgrading tohigh-efficiency vending machines, etc.

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CSR Report 2017│Environment-Conscious Monozukuri

Optimization(administration)

Reducing lighting, controlling temperature and limiting usage of air conditioning,
introducing a voluntary ban on using elevators, configuring office equipment to turnoff or switch to standby mode if left unused for prolonged periods, reducing usageof photocopiers (double-sided printing, using condensed printing settings), reducing
usage of drinks machines, etc.

Optimization(manufacturing)

Consolidation of production facilities, optimizing set pressure and start/stop times
on compressors, improving furnace efficiency in order to reduce operating times,
reusing exhaust heat from boilers, etc.

OthersIntroducing early-morning overtime scheme and reducing late-night overtime (noneed for air conditioning in early morning), issuing peak alerts via powermonitoring system, bringing forward and extending “Cool Biz” operations,eliminating air leaks, organizing “waste patrols”, using green curtains and bamboo
screens to reduce strain on air conditioning, etc.

Replacement of conventional lights with
LED ones at warehouse(Rinnai Parts Center)

Improving furnace efficiency(Noto Tech Co., Ltd.)A green “curtain” of plants
at one of our offices

Use of Renewables
The Rinnai Group is working to increase use of renewable energy sources, such as solar and wind power, at all its
operations in Japan and around the world. In fiscal 2017, we generated 50,000 kWh from renewable sources.

Wind and photvoltaic system(head office parking area)

Photovoltaic system(Technology Center)

Improvements to Logistics
We are pursuing action to improve logistics operations in accordance with a plan for rationalization of energy use
formulated as a “specified consigner” under the Act on Rational Use of Energy.

Action to Promote Eco-Driving

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CSR Report 2017│Environment-Conscious Monozukuri

Please see page 57 “Safe and Eco-Friendly Driving Initiatives”

Action on Waste and Water Resources
Reduced Waste Output and Zero Emissions
We strive to maintain zero emissions*1 and reduce waste output.
*1 Definition of zero emissions: More than 99.5% of waste is recycled (including heat recovery)

Efforts to Curb Generation of Waste [waste reduction
activities]- Don’t buy something that will end up as garbage: abolition of theexcessive packing in cooperation with clients- Return reusable items to respective point of purchase: usage of returnable
materials for transportation in cooperation with clients- Reuse: improvement of reuse ratio of residual chemicals- Don’t make waste: improvement of available percentage of materials- Recycle/ reduce volume: improvement of fractionation method, transaction
with superior waste disposers

Returnable packaging (Rinnai Brazil)

Waste Emission Intensity (*2) Reduced by 20.7% (Scope: Rinnai)
Our “7E Strategic Initiatives” environmental action plan set a target of reducing waste emission intensity by 6%
relative to fiscal 2011, ending March 31, 2011, by fiscal 2017, ended March 31, 2017, and we achieved a reductionof 20.7% in fiscal 2017. Total waste emissions are down 5.3% from fiscal 2011, and are being steadily reduced
compared to the base year.

(*1) Waste emission 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

Improvement of Production Process Yields
We are working to increase effective utilization of pressed parts (materials) as a measure for waste sources.
These include:- Modification of pressing processes and die constructions to enable stable production of quality products- Use of computer-aided engineering (CAE) to minimize scrap emissions and trim the dimensions of materials
usedImprovement of Recycling Quality
We are working to raise the “quality” of our recycling in order to make more effective use of waste as fuel and otherresources. We are doing this in several ways, including by revisiting how materials are sorted and collected, and by49

CSR Report 2017│Environment-Conscious Monozukuri

shifting from thermal recycling to material recycling.

Industrial Waste Disposal
We rigorously screen waste disposal contractors before signing contracts,
including checking business conditions and making onsite visits. To
ensure that waste is being disposed of properly, we send representatives
to visit contractors every year, to carry out visual confirmation andexchange information on matters such as types of waste, waste manifest
management for disposal methods and conditions, and standards of waste
disposal. In fiscal 2017, we confirmed that 30 contractors wereconducting waste management in an appropriate manner.

Visiting disposal sites

Polychlorinated Biphenyl Waste Management
Polychlorinated biphenyls (PCB) are used for purposes such as insulating oils and are subject to the Act on Special
Measures concerning Promotion of Proper Treatment of PBC Wastes, which requires companies to reinforce storage
and safely dispose of PCB by the end of March 2027. Although we are continuing with measures aimed at disposingof PCB as soon as possible, in the meantime, we are taking steps to prevent leaks in the event of equipment failure
during storage, keeping PCB under lock-and-key to prevent loss or damage, and monitoring equipment using
nameplates, until disposal of PCB can be completed.
We are also taking measures to ensure that scrap appliances found to contain trace elements of PCB are
adequately stored and appropriately disposed of at facilities certified by the Minister for the Environment fromfiscal 2011 onwards.

Protecting Water Resources
We recognize that water resources are an important resource, and are taking steps to reduce use of utility water andgroundwater. We routinely take active steps to save and recycle water, and also strive to manage wastewater so thatemissions do not harm the environment.

Water Consumption Intensity (*2) Reduced by 24.9% (Scope: Rinnai)
Our “7E Strategic Initiatives” environmental action plan set a target of reducing water consumption intensity by atleast 6% relative to fiscal 2011, ending March 31, 2011, by fiscal 2017, ended March 31, 2017, and we achieved a
24.9% reduction in fiscal 2017. Total water consumption is down 13.5% from fiscal 2011, and is being steadily
reduced compared to the base year.

(*2) 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

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CSR Report 2017│Environment-Conscious Monozukuri

Reducing Environmental Impact by Improving Pretreatment Systems
Improvements such as the following have been made to paint processes to make them more environmentallyfriendly, resulting in water savings and also reduced use of chemicals to treat wastewater.
Treated wastewater is also recycled as water for flushing toilets.

Key improvements include:- Changes to methods used to feed water to head-end processes- Installation of systems for recirculating and filtering virtually all chemicalsolution in tanks- Use of treated wastewater in office washrooms, etc.
- Regular checks for and in-house repair of leaks from pumps, etc.
Effects of environmental improvements made by group companies involvedin manufacturing:- Reduction in water consumption: Approx. 22,000 m3/year- Reduction in waste emissions: Approx. 40 t/year

Wastewater treatment plant(Yanagisawa Factory)

Wastewater Quality Management
To ensure that the water treated at wastewater plants causes no harm to rivers, it is constantly monitored before
discharge to ensure that its pH is kept to within even stricter limits than required by law.

Water monitoring unit

Analyzing wastewater

Efforts to Prevent Pollution
Reducing or Eliminating Use of Harmful Chemical Substances
Accumulation of such substances over a long period may also affect the health of people and the ecosystem. To
minimize the impact of such substances on the environment, we take measures for reducing or eliminating use ofharmful chemical substances in our production processes, such as reviews of materials containing certain
substances and improvement of processing facilities.

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.

51

CSR Report 2017│Environment-Conscious Monozukuri

Hazardous Chemical Usage Intensity (*1) Reduced by 29.1% (Scope: Rinnai)
Our “7E Strategic Initiatives” environmental action plan set a target of reducing hazardous chemical usage intensity
by at least 6% from fiscal 2011, ending March 31, 2011, by fiscal 2017, ended March 31, 2017, and we achieved a
29.1% reduction in fiscal 2016.

(*1) 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

Example: Reduction of paint use and improvement of production efficiency
Improvements made to the paint process for clothes dryers made at our Asahi
Factory have reduced the environmental impact by improving painting
efficiency.
A study was first conducted to determine the optimum processing
conditions (such as the best distance, angle, and speed of movement relative tothe painting area) given production capacity and the shape of the part being
processed. Based on the findings, the paint process was then modified so as topaint two panels suspended from a single hanger.
This has minimized paint loss and reduced the amount of paint used.
Effects (approximate):
・Reduction in use of hazardous chemicals:
630 kg/year
・Reduction in quantity of paint used: 15%
13t/year・Reduction in CO2 emissions:・Reduction in waste emissions:
200 kg/year

Clothes dryer madeat the Asahi Factory52

CSR Report 2017│Environment-Conscious Monozukuri

Efforts to Prevent Pollution
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 crisisand have prepared emergency provisions.

Emergency response drill

Protecting Biodiversity
Protecting the biodiversity that underpins social sustainability has become an urgent priority for humankind.
Recognizing that 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 withthe following principles.

Rinnai Principles on Biodiversity
1. Recognition of the issues

Rinnai regards protection of biodiversity as a priority for corporate survival andincorporates it into its environmental policy.

2. Cultivation of awarenessRinnai 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.

3. Pursuit of businessactivities
contributing to biodiversity

Rinnai recognizes that business activities and biodiversity are interwoven, andaims to develop conditions that allow biodiversity to be preserved throughgreater action to reduce environmental impacts.

4. Disclosure of information

Rinnai will publish details, both internally and externally, of its policy on andinitiatives to protect biodiversity, and it aims to develop cooperation with local
communities.

53

CSR Report 2017│Environment-Conscious Monozukuri

Cultivation of Awareness
Please see page 58 “Participation in the My Action Declaration project backed by UNDB-J”

Protection of the Environment around Company Sites
Please see page 59 “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 CO2 and waste emissions, preventing atmospheric and waterpollution, and so on).

54

CSR Report 2017│Environment-Conscious Monozukuri

Status of Legal Compliance
Naturally, we comply with laws and regulations, but we seek to do better than the minimum required and have set
our own benchmarks as targets to achieve. We also perform checks, mainly daily monitoring, routine evaluations
and environmental audits, and strive to reduce the release of hazardous chemicals and other pollutants into the airand local water systems. We reinforce equipment operation and maintenance practices and take preemptive action if
facility status looks as though it may exceed the level we deem permissible. If we can meet our own toughstandards, we will surely meet the levels required by government.

From the left, measurement of soot and smoke, water quality, and odor measurement

Status of Compliance with Laws and Regulations
In fiscal 2017, at a manufacturing group company, BOD (biochemical oxygen demand) of the waste water
exceeded the standard level of Pollution Control Agreement value determined by the city. We specified thepollution source and implemented measures in cooperation with the measurement company. By the water quality
analysis results after the measures, the BOD is within the regulatory limits.

55

CSR Report 2017│Measures to Improve Logistics

Measures to Improve Logistics
We are taking to steps to improve our logistics operations in accordance with the energy-use rationalization planthat we formulated as a specified shipper under the Act on the Rational Use of Energy.

Improvements to Logistics
The Group’s products are produced at plants located mainly in Japan and then distributed around Japan and toother countries in Asia, Europe, North America, and beyond.
Our Integrated Logistics Center monitors the status of energy usage through the distribution of products, andreviews distribution efficiency in cooperation with outside distributors. In multilateral and creative way, we
promote the distribution efficiency to reduce energy usage.
In 2014, we merged our logistics operations in Aichi Prefecture, where our manufacturing operations areconcentrated, into two centers. Since then, we have been systematically consolidating core warehouses dispersed
across Japan, and as a result have succeeded in reducing holdings of overlapping inventories, non-essential andnon-urgent production, and “horizontal transportation.”**”Horizontal transportation”: transportation that doesn’t include final destination (customer site), such as the route between Rinnai
factory and its warehouse

Trend of Shipping Volume and CO2 Emission
Fiscal year ended
March 31

Shipping volume(10 thousand
ton x km)CO2 emission
volume (tCO2e)

Fiscal
2012

Fiscal
2013

Fiscal
2014

Fiscal2015

Fiscal2016

Fiscal
2017

6,687

6,587

6,836

6,763

6,429

6,228

10,23810,44010,967

10,756

10,545

11,083

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 ofbulk transportation (rail or sea).
Improve carry efficiency by the shape change
of a corrugated cardboard

56

CSR Report 2017│Measures to Improve Logistics

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

Safe and Eco-Friendly Driving Initiatives
We have introduced a system for quantifying and centrally
managing fleet operations at our sales offices and other relevant
operations, and we are also working to make employees moreaware of how they can drive in a safer, more efficient, andeco-friendly manner. The system is designed to automaticallyemail managers if a driver drives too fast, accelerates rapidly,or brakes suddenly, and this has improved average fuelefficiency 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 company-wide in the future.

Anti-idling reminder(Chugoku Sales Office)57

CSR Report 2017│Environmental Education and Promotion of Awareness

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

Rinnai Group Environment Awards Programs
The Rinnai Group Environmental Awards are held annually to recognize outstanding environmental activities andstimulate more action on the environment throughout the Group. These awards recognize major contributions to theenvironment and society, and are open to all our operations in Japan and around the world. The seventh awards
ceremony was held at the Rinnai Group Convention.
A record 103 entries were received in fiscal 2017, from which 10 prize winners in categories including
Manufacturing, Offices, Sales, and Contribution to Society were selected.

Award ceremony (left), and panel display showing outstanding achievements

Signing of the My Action Declaration
3,922 of our employees (equivalent to a 93% participation rate) havesigned the “My Action Declaration” backed by the Japan Committee
for the United Nations Decade on Biodiversity (UNDB-J), and thishas enhanced their understanding of how to protect biodiversity.
We will pursue measures to mainstream biodiversity and encourage
employees to think about and engage in protecting biodiversity intheir 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.
Published since 1999 as a means of raising environmental knowledge and awareness and encouraging
communication on the subject among employees.

Eco no Coe, Vol. 50, Summer Issue

58

CSR Report 2017│Environmental Education and Promotion of AwarenessEco no Coe’s Campaign:
Activities to Raise Environmental Awareness through Cultivation of Heirloom Vegetables
We have organized an “Heirloom Seed Campaign” incorporating a questionnaire on regional food culture, and seeds for growing
heirloom vegetables that have been traditionally grown in Aichi Prefecture were sent to 150 questionnaire respondents. The idea
behind the campaign is that by growing these heirloom vegetables, participants will have the opportunity to learn about andrediscover the value of food culture and the natural environment at the local level. Showcasing the cultivation of these vegetablesfrom seeds and the recipes that can be made using them in Eco no Coe was found to generate more communication on
environmental activities. This inhouse campaign was undertaken referring to a “Green Echo Activity” by the Environmental
Partnership Organizing Club.

Growing Aodai cucumbers

A crop of Aodai cucumbers

A crop of Yabuwase onions* Heirloom vegetables
Vegetables such as Kyo-yasai and Kaga-yasai that have long been grown locally.
*Environmental Partnership Organizing Club (“EPOC”)
A private organization involving leading companies in the Chubu region around
Nagoya. Spanning a range of different industries and lines of business, thesecompanies work together on activities to build a recycling-oriented economy andsociety.
*Goal of Green Echo Activities
To expand environmental action by developing environmental awareness in threesteps: “feeling,” “thought,” and “action.” Green Echo Activities commenced infiscal 2015.

Protection of the Environment around Company Sites
Nature Ramble
Discovering more about local nature is the first step in preserving biodiversity. A nature ramble around our Oguchi
Factory in Niwa-gun, Aichi Prefecture, was therefore organized, and 46 species of plant were discovered during thetwo-hour walk. A native species of burnet was found to be surviving on a regularly mown embankment, while a
species of tickseed called Coreopsis lanceolate, which has been designated an invasive species that takes over thehabitat 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.

Observing the flora of a paddy field

Native species of burnet discovered

Marking the locations of plants
discovered on a map

59

CSR Report 2017│Environmental Education and Promotion of AwarenessMap of flora and fauna around Rinnai’s Oguchi Factory (map data courtesy of Google and DigitalGlobe)

Eradication of Invasive Species (Coreopsis Lanceolate)
Our employees joined personnel from the Environment and Economy Section of Oguchi-cho’s Industry and Construction Department
and members of the Environment Group of the Environmental Promotion Office in the Facilities and Environment Department of the ,Ltd., a local firm, in removing Coreopsis lanceolate, a species of plant that has been designated an invasive plant, from along a section
discovered there during a nature ramble organized by Rinnai. Approximately 30 kg of the plant was collected and appropriately
disposed.

Eradication work

Coreopsis lanceolate(a specified invasive species)

Bags of Coreopsis lanceolate for
disposalCleanup and Greenification Activities around Company Sites
Group employees periodically engage in cleanup and greenification activities around the Group’s factories andalong their commuting routes to help look after the natural environment around our operations. In fiscal 2017, a
total of 2,855 employees took part in cleanup activities.

60

CSR Report 2017│Environmental Education and Promotion of AwarenessGreen Purchasing
Plants’ and offices’ procurement managers are encouraged to buy “green” by purchasing environmentally friendly
office supplies such as recycled paper. Our “7E Strategic Initiatives” environmental action plan adopts the “green
purchasing rate” as an indicator of offices’ environmental performance, and we are working to keep this rate at 91%
or over every year.
* “Green procurement” and “Green purchasing”: “Green procurement” is to acquire goods directly related to our production activity,and “Green purchasing” means purchase of office-related supplies and facilities. We define products that are covered by the Green
Purchasing Act or that bear the Eco Mark, Energy Star Mark, etc. as “green supplies,” and encourage their purchase and procurement.

Encouraging Eco Friendly Commuting
The Technology Development Center encourages employees tovoluntarily commute in an eco-friendly manner by designating certain
days as “no car days.” On these days, employees come to work by
public transport or bicycle in order to reduce carbon dioxide
emissions and the noise pollution caused by traffic congestion near
the center. This not only reduces the impact on the environment, butalso provides employees with healthy moderate exercise.
Bike racks
at the Technology Development Center

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

Learning about other companies’
environmental initiatives

Participation in Environmental Exhibitions
Please see Page 116 “Exhibit at Eco Products”.

61

CSR Report 2017│Environmental Management System

Environmental Management System
Rinnai maintains an environmental management system based on ISO 14001. We effectively utilize thismanagement system and constantly strive to promote environment management practices aimed atenvironmentally conscious monozukuri and to raise environmental performance. Our goal is to contribute to
the formation of a society capable of sustainable development.

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 theseguide the implementation of environmental activities undertaken with the involvement of the entire workforce in all
business domains.
Please see page 11 “Environmental Policy”
Please see page 64 “Environmental Action Plan and Performance”

ISO 14001 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 andmaintain ISO14001 certification.
Please see page 73 “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“7E Strategic Initiatives” environmental action plan. This committee is chaired by the executive officer
responsible for the environment and has the participation of representatives from all divisions. Its mandate is topromote environment-oriented activities from a big-picture view.

62

CSR Report 2017│Environmental Management System

Environment Management Activities
The Environment Management Committee discusses anddecides important items including the basic environmental
basic policy, the goal and a medium to long-term plan. The
committee thoroughly informs individual divisions ofdecisions made by the committee and promotes concrete
activities in line with annual plans. We review our objectives asnecessary 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 therespective division and continue improvement activities.

Environmental Management Committee

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 2017, the routine audit reviewed the migration to
ISO 14001:2015 version, and did not turn up any major
non-conformances.

External audits

As part of internal audits, Auditing team, comprising impartial internal auditors chosen from within the
Corporation who have no direct connection to the division under audit, assess conformity to the establishedenvironmental management system and review division activities. Auditors visit worksites of divisions tapped foran audit and perform detailed inspections. Direct contact between auditors and divisions facilitates greater
understanding of division activities and auditor concerns. Internal audits in fiscal 2017 identified no major
non-conformances, four areas for minor improvements, and 37 observations. The areas for minor improvements
and observations were immediately addressed.

Environmental Training
Raising each employee’s environmental awareness is importantfor promoting environmental activities. To provide as many
employees as possible with opportunities to raise theirenvironmental awareness, we plan and offer training programs fordeveloping and fostering human resources who will actuallyengage in environmental activities, as well as new employee
training and rank-specific training programs.
Environmental training for person
in charge of environmental issues

Internal Auditor Training
Internal auditors play a significant role over and above their efforts to continuously improve the environmental
management system. The execution of audit requires highly specialized knowledge and communication skill. To
upgrade the skills of internal auditors, we conduct regular training by in-house instructors on such topics as laws andordinances, internal regulations, internal audit observations and improvement measures, and environment- oriented
trends. In fiscal 2017, totally 30 employees participated in the training workshops.

63

CSR Report 2017│Environmental Action Plan and Results“7E Strategic Initiatives” Environmental Action Plan and Results
We have formulated a “7E Strategic Initiatives” Environmental Plan that guides our ongoing efforts to improve
environmental performance through environmental activities involving all our employees in every field of
business. The following describes the targets, performance, and assessment of results in each area of 7E activity(E-Products, E-Factories, E-Marketing, E-Services, E-Offices, and E-Mind).
■Key to self-assessment of annual target attainment○100％ △at least 70% ×under 70％
Scope: Rinnai Corporation

Fiscal 2018 Environmental Action Plan and Targets (Fiscal 2018, ending March 31, 2018)
Field of
Activity“7E Strategic Initiatives” Environmental Action Plan
(Fiscal 2016 – fiscal 2017)

E-Marketing(Sales)
E-Service(Installation &Repair)Expansion of sales of high-efficiency products
Contribution to 1,600,000 tCO2 reduction in CO2emissions in water heater segment1

E-Products(Product
Development)

Energy consumption and CO2 emissions
Development of high-efficiency appliances for “zeroenergy homes,” ongoing action to reduce power
consumption by products in standby mode and use

Fiscal 2018 Targets

Contribution to reduction of CO2
emissions: 1,020,000 tCO2/year

・Development of high-efficiency
water heaters
・ Development of gas fan heatersthat consume less gas due to thecirculator effect

Energy conservation and recycling
Awareness of environmental impact at each stage of the
product lifecycle from the planning and design stages,
ongoing development of lighter, more compact products

・ Product assessment(of all new products for theJapanese market)
・ Development of resource-saving
appliances (by making themlighter and more compact, etc.)

E-Procurement

Promotion of supply chain management
Collaboration with suppliers on environmental protection
to improve environmental performance throughout the
supply chain and ongoing green procurement
management in compliance with applicable national
regulations

・ Exploration of ascertainment ofenvironmental impact data (onCO2 emissions, etc.) at suppliers
・ Procurement and use of materials
in accordance with Rinnai’s EProcurement Standards (green
product development)
・ Maintenance and strengtheningof management of chemical
substances in compliance withapplicable national standards

64

CSR Report 2017│Environmental Action Plan and Results

E-Mind(Employees)

Disclosure of information on environmental activities
and products・CSR reports
・CSR website
・Tours of factories and sales showrooms nationwide

・ Publication of fiscal 2018 CSR
Report・ Disclosure of environmental
information on website (CSR,
society, environment), etc.

・Environmental exhibitions, etc.

E-Factory(Production)2

E-Offices

Environmental training and awareness raising
Active environmental training of employees andcontinued raising of environmental awarenessVarious training activities
conducted in accordance withcompany and plant/office-level
annual plans

Reduction of CO2 emission intensity
At least -8% relative to fiscal 2010 by fiscal 2018

At least -8% relative to fiscal
2010 by fiscal 2018

Reduction of waste emission intensity
At least -7% relative to fiscal 2011 by fiscal 2018
Maintenance of zero emissions (recycling rate of
99.5%+)At least -7% relative to fiscal
2011 by fiscal 2018
Maintenance of zero emissions(recycling rate of 99.5%+)

Reduction of water consumption intensity
At least -7% relative to2011 by fiscal 2018

At least -7% relative to fiscal
2011 by fiscal 2018

Reduction of hazardous chemical3 usage intensity
At least -7% relative to 2011 by fiscal 2018 (excluding
brazing material)

At least -7% relative to fiscal
2011 by fiscal 2018(excluding brazing material)

Green purchasing rate
Continued maintenance at 91%+

Green purchasing rate of at least
91% at offices(based on value)

65

CSR Report 2017│Environmental Action Plan and Results

Fiscal 2017 Environmental Action Plan and Performance(Fiscal 2017, ended March 31, 2017)

Field of
Activity

Fiscal 2017 Target

Fiscal 2017 Results

Assessment

E-Marketing(Sales)
E-Service(Installation &Repair)

CO2 reduction contribution
1,200,000 tCO2/year1

CO2 reduction contribution
980,000 tCO2/year1△

E-Products(Product
Development)

Development of high-efficiency
water heaters
Reduction of standby electricity
consumption in standby mode

High-efficiency products developed◯・High-efficiency gas water heaters
for overseas markets
・Kitchen appliancesStandby electricity consumption
reduced・Clothes dryers for overseas
markets
・Gas water/space heating heatsourcesResource conservation andrecycling

Products assessed
Lighter products developed

・Continued product assessment

・Tabletop cookers for overseas

・Promotion of weight reduction

markets

and water conservation◯

・Gas fan heaters
・Gas water/space heating heatsources
Packaging simplified

EProcurement

Promotion of environmental
management throughout the
supply chain
・Green product development
・Green procurement
management

・ Investigated ways of ascertaining◯

environmental impact data at
suppliers (CO2 emissions, etc.)
・ Materials procured and usedfollowing our E-Procurement
Standards
・ Infrastructure for managing
chemical substances developed andcollaboration with suppliers
strengthened

E-Mind(Employees)

・ Publication of fiscal 2017 CSR
Report・Fiscal 2017 CSR Report published◯・ Environmental information
published on website

66

CSR Report 2017│Environmental Action Plan and Results

・ Disclosure of environmental
information on website (CSR,
society, environment)

E-Factories(Production)2

E-Offices

Planning and provision of various
training in accordance withcompany and plant/office-level
annual plans

Internal auditors trained, etc.

◯

Reduction of CO2 emission
intensity
At least -7% relative to fiscal 2010

Reduced by 22% from fiscal 2010◯

Reduction of waste emission
intensity
At least -6% relative to fiscal 2011
Maintenance and improvement ofzero emissions

Reduced by 20.7% from fiscal 2011
Zero emissions maintained andimproved◯

Reduction of water consumption
intensity
At least -6% relative to fiscal 2011

Reduced by 24.9% relative to fiscal
2011◯

Reduction of hazardous chemical3
usage intensity
At least -6% relative to fiscal 2011

Reduced by 29.1% relative to fiscal
2011◯

Attainment of green purchasingrate of 91%+ at offices (based onvalue)

Green purchasing rate (based onvalue): 96%◯

Notes: 1. CO2 reduction contribution = reduction in CO2 emissions compared to products sold in 2005 resulting from improved
performance of Rinnai water heaters (estimated)
2. Intensity = load per standard unit defined by Rinnai
3. Hazardous chemicals = Class I designated chemical substances as defined by the PRTR Act

67

CSR Report 2017│Environmental Accounting

Environmental Accounting
To realize continuous growth while promoting environmental management, we must accurately quantify thecost of environmental protection and the results achieved. We must also ensure that our approaches are
effective through appropriate allocation of management resources. We utilize guidelines set by Japan’s
Ministry of the Environment as the tools in executing these tasks.
Scope of accounting: Rinnai Corporation
Period of accounting: April 1, 2016 to March 31, 2017

Cost of Environmental Protection(Unit: Ten thousand yen)
Breakdown of Costs forEnvironmental Protection

Key Activities

Costs

Pollution
prevention

Mainly efforts to prevent air and water pollution

2,209

Environmental
protection

Mainly efforts to save energy

1,045

Resource
recycling

Recycling as well as treatment and disposal of industrial waste

8,537

Upstream/downstream

Collection/recycling and volume/weight reduction of materials
such as product packaging

706

Management activities

Mainly monitoring and surveillance of environmental impact

11,136

Research and development

R&D on environmentally conscious products addressing
energy- and resource-saving features and reduction and/or
elimination of hazardous chemical substances

103,767

Community efforts

Mainly community activities and beautification/greening at
places of business and surrounding areas

167

In the scope ofoperations

Total

127,567

Item
Environmental
Protection
EffectOn-site results

Content
Saving energy
reduced greenhousegases(Unit: Ten thousand yen)
Environmental Impact
Reduction
241 t /year(Unit: Ten thousand yen)
Economic Effects
Accompanying
Environmental Protection
Measures

Item
Costs cut through energy-savings and waste reduction

Economic Effect
1,220

68

CSR Report 2017│Environmental Accounting

About Environmental Protection Costs• 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.

Economic Effect• The economic effects achieved through energy-savings and waste reduction are not increases or decreases inoverall 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.

69

CSR Report 2017┃Chronology of Environmental Activities at Rinnai

Chronology of Environmental Activities at Rinnai
March

Drafted Environmental Preservation Action Plan; established Environment Committee

DecemberWon prize at 4th Energy Conservation Vanguard 21 for gas-blast type high heat griller
RGM-4, 6, 8

1993
1994

July

Market debut: low-NOx burner built-in water heater (NOx at less than 60ppm)

1996

March

Won top prize at 1st Eco-Design Awards, sponsored by Tokyo Gas, Osaka Gas and Toho
Gas for water heater, fan heater and small hot-water heater

March

Won special prize at 2nd Eco Design Awards for tabletop cooking stove

June

Market debut: absorption-type gas air-conditioner (non-CFC)

October

Acquired ISO 14001 certification at Oguchi factory

DecemberWon prize at 8th Energy Conservation Vanguard 21 for tabletop oven RSBN-096

1997

April

Won top prize for gas clothes dryer and special awards for small hot-water heater and forabsorption-type gas air-condition at 3rd Eco-Design Awards

OctoberMarket debut: Yukko V Series, featuring no styrene packing, low stand-by power
consumption and low NOx emissions

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

July

Established Environment Division

1998

1999

SeptemberMarket debut: Ecomax burner and Eco burner-equipped gas cooking stove

OctoberMarket debut: condensing water heater boasting 95% heat efficiency and NOx emissions
under 30ppm

February

Won Minister of Economy, Trade and Industry Award for condensing water heater atministry's 10th Energy Conservation Awards

May

Drafted Rinnai Environmental Action Principles

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

AugustPublished inaugural issue of Environmental Report

2001

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

2002

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

October

Won Electric Equipment Packaging Category Award in the Good Packaging division at
Japan Packaging Contest 2003 for built-in 75cm-wide glass-top gas cooking stove

June

Environment Month event: Talk given at Rinnai by a corporate environmental pioneer

October

Won Logistics Prize at Japan Packaging Contest 2004 for bathroom heater/dryer

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

SeptemberParticipated in Team Minus 6%, a national movement to prevent global warming

2000

2003

2004

2005

70

CSR Report 2017┃Chronology of Environmental Activities at Rinnai

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

October

Won Electric Equipment Packaging Category Award in the Good Packaging division at
Japan Packaging Contest 2006 for gas fan heater

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

2006

2007

2008

September

Gas 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

October

Won Electric Equipment Packaging Category Award in the Good Packaging division at
Japan Packaging Contest 2008 for gas fan heater

February

Market debut: Eco-Jozu hot-water/heating unit RVD-E Series

2009
June

2010

January

Market debut: Eco-Jozu water heater with bath-filling systems RUF-E SeriesParticipated in Challenge 25 campaign, a national movement to prevent global warming

February

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

June
September

2011

2013

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer
Held the first Rinnai Group Environmental Awards ceremony

AprilMarket debut: Eco One hybrid water heater with heating systems for colder regions

May

Won Technology Grand Award from Japan Gas Association for development of gas
hot-water system SOLAMO to use solar heat

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

SeptemberHeld the second Rinnai Group Environmental Awards ceremony

December

Won the Resource Recycling Manufacturing Research Group Chairman’s Award at the
IMS2011 16th Resource Recycling Manufacturing Symposium for energy saving measuresconcerning enamel combustion furnaces

June

2012

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 pioneer

SeptemberHeld the third Rinnai Group Environmental Awards ceremony

October

Won Large and Heavy Good Packaging Prize at Japan Packaging Contest 2012 for Eco
One hybrid water heater with heating systems

December

Won the Resource Recycling Manufacturing Research Group Chairman’s Award at the
IMS2012 17th Resource Recycling Manufacturing Symposium for our development ofhome-use hybrid water heater with heating systems

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

71

CSR Report 2017┃Chronology of Environmental Activities at Rinnai

SeptemberHeld the fourth Rinnai Group Environmental Awards ceremony

December

Won the Chairman Award of Nagoya Industries Promotion Corporation at the IMS2013
18th Resource Recycling Manufacturing Symposium for improvement of logistic
efficiency and reduction of waste disposal by reviewing of packing production process

January

Won top energy conservation award at METI Award in the fiscal 2013 Energy
Conservation Awards for Eco One hybrid water heater with heating systems

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

AugustWon Large and Heavy Good Packaging Prize at Japan Packaging Contest 2014 for
returnable package

SeptemberHeld the fifth Rinnai Group Environmental Awards ceremony

DecemberWon 2014 Energy Saving and New Energy Grand Prize in Kitaguni (northern area inJapan) for Eco One hybrid water heater with heating systems for Hokkaido region
Won the Chunichi Shimbun Award at the IMS2014 19th Resource Recycling
Manufacturing Symposium for our development of an eco-friendly water heater withbath-filling systems

2014

2015

April

Market debut: Eco One third generation hybrid water heater with heating systems

June

Environment Month event: Organized an exchange event (visit) with a corporate
environmental pioneer

SeptemberHeld the sixth Rinnai Group Environmental Awards ceremony

May

Acquired a certificate of a low-carbon building as Japan’s first residential complex inwhich all units have ECO ONE and floor heating

June

Environment Month events:
Issued new environmental cards to all Rinnai employees
Organized an exchange event (visit) with a corporate environmental pioneer

July

Participated in COOL CHOICE campaign, a new national movement to global climaticchanges and reducing greenhouse effect gas

AugustWon Good Packaging Prize at Japan Packaging Contest 2014 for a bottom tray with parts
box for important attachments

SeptemberHeld the seventh Rinnai Group Environmental Awards ceremony

2016

DecemberJanuary2017
June

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
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)72

CSR Report 2017│Certification acquisition status

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

Rinnai

DomesticGroup
Company

Overseas
Group
Company

Certified year/month

Research and Development Headquarters

October 1997

Production Engineering Division

October 1997

Oguchi Factory

October 1997

Seto Factory

December 2000

Environment DivisionDecember 2000

Asahi Factory

November 2003

Quality Assurance Headquarters

November 2003

Head Office

December 2008

Kansai Branch

May 2010

Logistic Control Office

May 2010

Kanto Branch

May 2011

Chugoku sales office

May 2011

Rinnai Parts CenterMay 2011

Kyushu Branch

April 2012

Hokkaido sales office

April 2012

Niigata sales office

April 2012

Tohoku Branch

May 2013

Shikoku sales office

May 2013

Higashikanto sales office

April 2014

Kitakanto sales office

April 2016

Gastar Co., Ltd.

October 2001

Rinnai Technica Co., Ltd.

December 2003

Yanagisawa Manufacturing Co., Ltd.

June 2004

Rinnai Precision Co., Ltd.

December 2005

Japan Ceramics Co., Ltd.

January 2006

RT Engineering Co., Ltd.

March 2006

RB Controls Co., Ltd.

March 2006

Noto Tech Co., Ltd.

January 2007

Rinnai Korea Corporation

July1997

RB Korea Ltd.

October 2006

Shanghai Rinnai Co., Ltd.

December 2008

Rinnai Brasil Heating Technology Ltd.

June 2011

Rinnai New Zealand Ltd.

July 2013

Environment Management System "Eco Action21"
Location Name
Domestic Group Company

Techno Parts Co., Ltd.

Certified year/month
August 201173

CSR Report 2017┃Scope of Calculation for Environmental Data

Scope of Calculation for Environmental Data
Target period: Fiscal 2017 (Japan: From April 1, 2016 to March 31, 2017,
Other countries than Japan: From January 1, 2016 to December 31, 2016)
Disclosed page

Data name

Impact on the Environment of
the Rinnai Group

Environmentally
Conscious
Monozukuri

・CO2 emission
・Energy use

Scope of calculation

・Rinnai Corporation and its
consolidated subsidiaries

Efforts to Prevent Global
Warming

Action on Waste and Water
Resources

Energy volume and consumption rate
・CO2 emission
・Waste emission
・Water consumption
・Hazardous chemical usage

・Rinnai Corporation

Efforts to Prevent Pollution
Measures to
Improvements to Logistics
Improve Logistics

・CO2 emission intensity
・Waste emission intensity
・Water consumption intensity
・Hazardous chemical usage intensity
・Green purchasing rate

E-Factories

E-Offices

Environmental
Accounting―

・Rinnai Corporation
Reports by main
office・Rinnai Corporation

・Reduction in CO2 emissions, etc.

E-Marketing“7E Strategic
Initiatives”
Environmental
Action Plan

・Shipping volume
・CO2 emission

・Consolidated subsidiaries（Manufacturing companies
in Japan）

・Rinnai Corporation

・Cost of Environmental Protection
・Environmental Protection Effect・Economic Effects Accompanying
Environmental Protection Measures

Rinnai Corporation
・Oguchi Factory
・Seto Factory
・Asahi Factory・Rinnai Parts Center
・Production Engineering
Division・Research & Development
Headquarters
・Environment Division

・Energy use
・Emissions into the air (CO2, NOx)
・Discharge of waste・Substances subject to the PRTR law
・Air・Water discharge

・Rinnai Corporation and its
domestic consolidated subsidiaries（Manufacturing companies
in Japan）

74

CSR Report 2017│Initiatives for Safety and Peace of Mind

Initiatives for Safety and Peace of Mind

Aiming for the proliferation of safe and reliable gas stoves,with smiling families

Our group, whose fundamental belief is, “Quality is our destiny,” manufactures products on the basis of “safety andpeace of mind.” Minor failures or malfunctions in heat energy appliances, including gas appliances, could lead toserious accidents. We introduce initiatives for products to always be safe and reliable after their manufacture whenin use by customers and until the end of their use.

Initiatives for fire accident prevention through proliferation of gas stoves with Si sensors
Many fire accidents in the home start from stoves in the kitchen,
and among them it is said that many accidents occur when frying
with oil. An accidental fire in the kitchen caused by cooking oilsometimes becomes a large fire, and not only valuable assets will
be lost, but also it can lead to a fatal accident in the worst case.
In order to prevent such accidental fires in the kitchen, it
has been required by law*1 since 2008 that all gas burners are fittedwith safety sensors. We strive to prevent accidental fires throughone-step advanced intelligent “stoves with Si sensors” fitted withnational-standard safety functions of “oil overheating prevention
devices” and “flame-failure devices,” both to prevent fire, and also
fitted with useful functions to support cooking.
*1 Household gas stoves have become subject to government-designatedregulations (indication of PSTG or PSLPG) by the Gas Business Act, and
the Act on Securing Safety and Optimization of the Transaction ofLiquefied Petroleum Gas. From this, it has been required that all burners
are fitted with an “oil overheating prevention device” and a “flame-failure
device” since October 1, 2008.

Proliferation of gas stoves with Si sensors and a decrease in the number of fire cases
caused by gas stoves
The number of fire cases caused by gas stoves is steadily decreasing every year thanks to the increasing popularityof gas stoves with Si sensors. The number of cases of fire caused by gas stoves before 2008 was over 5,000 per year,
but that had decreased to approximately 3,000 per year in 2015. The proliferation of gas stoves with Si sensors
increased to a 49% share of the entire industry.*2
We conduct activities to have people deepen their understanding about the safety of gas stoves with Si sensors
through various exhibitions, a catalogue and website, etc. during 2017 as well, which is the 10th year since the birthof gas stoves with Si sensors.
*2 The number of fire cases from the White Paper on Fire Service, Ministry of Internal Affairs and Communications
We prepared the adoption rate of gas stoves with Si sensors based on the shipping statistics of the Japan Industrial Association of
Gas and Kerosene Appliances and the number of households in the basic resident register.
75

CSR Report 2017│Initiatives for Safety and Peace of Mind

Rinnai gas stove with Si sensors by pursuing safety and user-friendliness
Rinnai gas stove with Si sensors has its original features, such as
an extinguishing function by detecting burning and temperatureadjustment function in addition to functions set by national
standards and industrial standards.*3 We offer more comfortable
and reliable stoves.
*3 Standards for gas stoves with Si sensors by the Safe Advanced Gas
Appliances Proliferation And Development Study Group76

CSR Report 2017│Initiatives for Safety and Peace of Mind

Initiatives for Safety and Peace of Mind

Realizing a “safe and reliable,” “comfortable,” and “useful”
cooking environment with a gas stove called delicious,
DELICIA
The top priority for gas appliances is safety. However, it cannot be said to be a good cooking device if the cooking
method is restricted by the pursuit of too much “safety.” The “gas stove called delicious, DELICIA” realizes a“comfortable” and “useful” cooking environment by securing “safety functions” that enhance safety, while fittedwith various functions that enable a wide range of cooking, and also enhanced “cleanability.”

DELICIA was born in 2007, the year
before all gas burners were required to be
fitted with safety sensors. DELICIA is a
top-ranked gas stove model that has kept
enhancing safety from its birth until today,and continues to evolve and add userfriendly functions in response to customer
feedback.

Safety and reliable function
Added a “pan detection function” and “extinguishing function by
detecting burning” to a traditional Si sensor
In addition to the basic functions of an Si sensor, such as the “oil overheating
prevention device” that enables frying with peace of mind by preventing thepan from overheating, and the “flame-failure device” which stops gas upondetecting flame failure caused by cooking spills and wind, etc., it is fitted witha “pan detection function” that prevents the ignition without a pan in place andreduces the flame when lifting the pan, and an “extinguishing function by
detecting burning” that automatically extinguishes the flame before a pan isdamaged by burning while cooking a stewed dish, etc.
“Stop function upon detecting an earthquake” automatically extinguishes
the flame during an earthquake of intensity 4 and above
One of the causes that increases damage during an earthquake is fire. We
added a “stop function upon detecting an earthquake” which automaticallyextinguishes the flame if a gas stove itself detects a tremor with a seismic
intensity of 4 and above.
In order to prevent an accident at the time of ignition, prevent setting fire to one’s sleeve by using a
medium flame
If it flares up when lighting the stove, there is a possibility that the sleeve might catch fire. To prevent such an
accident at the time of ignition, we introduced a system to start with a medium flame on the high heat burner. In
addition, it is fitted with an “ignition disable function” to prevent ignition by incorrect operation and/or mischiefby children, and an ignition confirmation display function so that ignition and extinguishing can be seen without
seeing the burner area of the stove.

77

CSR Report 2017│Initiatives for Safety and Peace of Mind

Linked with a range hood in order to ensure ventilation and reduce
electricity consumption
In igniting or extinguishing the flame of a gas stove, it is fitted with a function
to automatically operate/stop a range hood fan. Ventilation that is essential
when using a gas appliance proceeds.

Comfortable and useful functions
Professional technique at home with cooking automatically linked toapplication
We started DELICIAPP, an application for smartphones, with abundant
recipes overseen by food specialists, such as a food coordinator andnutritionist, on August 1, 2016. After selecting the dish you want to cook,
you prepare the ingredients according to the recipe, and set them in the
cooker. Tap the smartphone and send the data to the stove, which starts
cooking automatically. Leave the strength of the heat, timing of heating
and turning off the flame to the stove. You can also know the remaining
cooking time through the application’s screen. Since a dish can be readyalmost automatically, anyone can cook without failure. Recipes are
updated weekly according to seasons and trends. No more struggle to plan
menus, and your cooking repertoire will widen.
Prevent burning by dissipating and radiating the glass-top heat, andimproved cleanability
The glass top of a gas stove traditionally tended to get hot from the stove’s
flame, so we adopted our unique easy-clean structure. By installing an
aluminum panel on the back of the glass-top plate, heat around the gas
burner is dissipated and radiated to constrain a glass-top surface
temperature increase. Compared to the traditional glass-top, temperaturearound the burner is reduced by approximately 66Cº. When cooking is
spilled or oil is splashed, it can be wiped immediately, and it eliminatesburning of the cooking and improves cleanability. You can keep it clean
with simple care.
Propose a Cocotte dish, which increases the range of cooking andmakes cleaning easy, in order to use a grill effectively
A grill is not only for grilled fish but also a cooking device that can beutilized for various dishes. However, it is pointed out that cleaning inside
the grill is tedious after use, so we have proposed a Cocotte with a lid to
use inside the grill. Because it has a lid, splashing oil is slight, and the easeof cleaning inside the grill has improved remarkably. When using the
Cocotte, the oil splashed is only 1 mg*. It was traditionally necessary toclean the gridiron, grill plate, grill door, etc., but you only need to wash the
Cocotte in DELICIA. It significantly reduces the labor of cleaning. The
range of cooking has expanded to cakes, non-fry cooking, gratin, andstews. It also has a smoke-off function that burns out oil and smells
generated during cooking. By installing an exclusive burner at the rearinside the grill, smoke emitted from the exhaust port and smell can be cut
by 81% and 99%, respectively, compared to those grills that do not havethis function.
* Testing method: Grill two Pacific sauries on a gridiron and Cocotte, and leave them after cooking them for 30 seconds in the grill,
keeping the door closed. Measure the splashing to the cleaning parts inside the grill (excluding gridiron and Cocotte) five times andcalculate the average. Use auto grill “broiled with the shape intact, standard mode” for the gridiron and “Cocotte, fish, strong mode”
for the Cocotte. (Rinnai estimate)78

CSR Report 2017│Measures for Quality

Measures for Quality
Basic Stance on Quality
Rinnai is focused on manufacturing safe products that provide peace of mind for customers because we view gas
appliances in the same way as airplanes. If a problem occurs with either, it could lead to a major accident. Heating
appliances such as gas appliances have the capability of causing burns, carbon monoxide poisoning, a fire, explosion
and more if there is even a slight defect or problem or if they are mishandled. In the worst case scenario, an accident
may even lead to death. In the past tabletop stoves have been the cause of fires and more recently deaths caused by
the rapid change in temperature (“heat shock”) in the bath tub have become a major problem. There is no way wecan maintain sustained growth as a manufacturer unless we fulfill our basic mission as a manufacturer to deliver safe
products that provide peace of mind for customers.
In order to not have any defective products go out into the world and prevent any accidents caused by our
products, it is necessary for us to ensure our product’s safety and peace of mind from their creation, to their use andultimate disposal. That is why we are moving forward with our own unique product manufacturing that focuses onsafety and peace of mind while proactively teaching consumers how to use our products safely even after the products
are in their hands.

Basic Philosophy on Quality

Policy on Quality"Quality is our destiny"

We provide highly safe productsthat meet customers' requirements.

Pursuit of “Zero Defects”
Our basic policy for manufacturing includes “in-house product design,” “in-house development and manufacturingof critical maintenance parts” and “in-house design of production equipment.” The most significant points are the inhouse development and in-group production of core heat technologies and critical maintenance parts and the in-house
design of production equipment. During the design phase, we not only ensure the safety and peace of mind of our
products but also are able to quickly get down to the root cause of a defect or problem to fix it in the event a problem
does occur. We are also making an effort to not produce any defects (zero defects) in all phases from manufacturing(development and production), to the sale, use and after-sales service for products and their ultimate disposal.
When we say quality, that doesn’t simply mean no defects or problems. We believe we can provide more
comfortable lifestyles for our customers through heating appliances such as gas appliances and this is another facetof the quality we offer.

Product Development in Pursuit of Safety and Peace of Mind
There are a variety of dangerous events that can occur with gas appliances such as gas leaks, incomplete combustion,burns, fires, etc. The mission given to development divisions is how well they can eliminate the causes of these
dangers and create a safe gas appliance. Up until now our appliances have been equipped with a number of different
safety devices. Examples would be a flame-failure device and a temperature sensor for gas tabletop stoves to prevent
fires when cooking tempura, and a CO sensor equipped to water heaters with special installation conditions.
Design divisions ensure from the design phase that safety is incorporated into the product by making surethe safety functions operate correctly in the use environment, the safety performance is maintained throughout thelife of the product, and the fail-safe features to safely stop the appliance in the event it not working correctly basedon the concept of proactive prevention of unforeseen accidents so that the safety features are maintained from firstuse until the end of the products life. Design divisions also conduct various analysis using simulations and tests using
strict evaluation standards and after the results are confirmed during a meeting the structure for moving on to the next
set is established. This is the method currently being used to eliminate all defects that occur during the design phase.
We are also actively sharing product development information and training employees on safe product development
by holding quality meetings to never reproduce past defects again and holding study sessions to convey past knowhow to the next generation of employees.

79CSR Report 2017│Measures for Quality

Check the state of use in various environments, using the actual
appliance, and utilize it for development
The important point in the development and design of gas stoves with Si
sensors is to consider the impact of the external environment. Flamescome directly from a gas stove, and it is difficult to eliminate the dangerof fire and burn injury through improper use. However, we resolve
problems by assuming all sorts of situations, such as in what situation it
is used, and how customers use it, in order to ensure safety. Therefore,
we check flame shape and color, the effect of wind, impacts due to gas
stove structure and installation location, by using the actual applianceand by conducting diverse verification, such as actually cooking invarious ways.

Kazushi Nishiguchi
Kitchen Appliance Design Office, ProductDevelopment Division II, Research &Development Headquarters

Manufacturing Technology which Assures High Quality
Rinnai’s basic philosophy regarding production technology is to produce a sound product instantaneously after the
fabrication phase. We utilize an in-house completion model to manufacture quality products.
Manufacturing divisions are involved from the product planning and design phases to utilize their wealth of knowhow related to fabrication and manufacturing to ensure that development from our in-house technology andproduction equipment achieves the intended performance, the product is safe and provides peace of mind forcustomers and the product is designed to be easy to manufacture for employees. Production starts after production
processes are carefully established and reviewed with development divisions. The production equipment is designed
and manufactured within the company with the 5M in mind (Man, Machine, Material, Method and Measurement).
We work to prevent defects that are caused by inadequate equipment. The manufacturing scene is currently putting
effort into improvement activities such as QC and improvement proposals with the aim of creating a strong
manufacturing scene. We aim to create a work environment than is better each day by finding excess and waste in
manufacturing processes and solving them one by one through the continuation of steady efforts. We believe
manufacturing starts with creating great people and we place a focus on developing talented individuals who can
succeed the concepts, skills and technologies of our manufacturing process.
Meanwhile, manufacturing at overseas locations must take into account the local market in that country
or region. Japan’s level of quality is one of the highest in the world and is highly thought of abroad. For example,
when the production of gas cocks at Rinnai Indonesia started, local staff visited Japan to thoroughly learn ourphilosophy behind manufacturing. They prepared the production line with Japanese staff members and launched theirown production line in Indonesia. We will continue to build a high quality manufacturing system that is safe andprovides peace of mind for our customers both in Japan and abroad based on our philosophy that “Quality is ourdestiny.”
Ensuring “safety and peace of mind” through inspection by machines and humans[Inspection by machines]
Automatic inspection is conducted by equipment in the factory to check if a gas
stove with Si sensors correctly detects the temperature of the bottom of a pan.
The inspection device applies a heated heater to “the part of the temperature
sensor that detects the heat,” and it is automatically inspected if a gas stove
flaming condition changes correctly from a small flame mode to an
extinguishing mode by temperature sensor. On the assembly line, this inspection
is conducted for the entire number of stoves.
Inspection of the entire number oftemperature sensors on theassembly line of gas stoves[Inspection by humans]
For an area in which the machine cannot determine, a human performs inspections in the product inspection process
on the assembly line. They inspect if it flames normally and that gas is not leaking at the time of dynamic pressure
by actually lighting a gas stove. It is necessary to have a high level of knowledge about gas stoves when conducting
this product inspection; such an inspection is conducted only by those employees who have passed the exam forproduct inspectors, conducted in the company.
80

CSR Report 2017│Measures for Quality

Making Improvements with Our Suppliers
See page 92 “Communication with Business Partners”

Invigorating Quality Improvement Activities
We operate a system of small-group quality control circles as a means of raising every single employee’s problemsolving skills and stimulating groups as a whole. These are being actively promoted at group companies too, and agroup-wide “QC Circle Convention” is held every September to recognize the best circles.

Company-wide QC circle conference81CSR Report 2017│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 todeep fry the Japanese dish tempura. Kitchen fires caused by tempura oilsometimes spread to other rooms. They not only destroy precious assets,
but in a worse-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 withsensors are called “Si sensor stoves.”
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 thelong 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 Sensor 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 corporate website and product information website.
In 2016, our corporate website was renewed and improved tomodify the Inquiry and Support page in 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, and strive to provide information smoothly inconsideration of the Internet use environment.

82

CSR Report 2017│Consumer Safety

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 to fires 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. Specific examples are also published on our website, where we provide clear, easy tounderstand information on how to prevent accidents.

Important Notice Regarding Product Safety

Problems that could be caused by incorrect usage

Disclosure of Information on Accidents Involving Our Products
In the event of a serious accident involving one of our
products, we immediately inform the authorities 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
informed in light of the severity and frequency of thetype of accident concerned.

Information on Accidents
Involving Our Products

83

CSR Report 2017│Inquiry Response and Support System

Inquiry Response and Support System
CS Policy
In keeping with our corporate philosophy that “Quality is our destiny,” we aim to respond sincerely, promptly, andappropriately to customer requests and queries, and to provide reliable services that deliver satisfaction and peaceof mind to the customer.

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
shall be 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 don’t give in to unreasonable demands.
5. We strictly protect the personal information of our customers by observing related laws, regulations andRinnai’s Personal Information Protection Regulations.

Customer CenterWe established the Customer Center in an effort toimprove customer satisfaction even further, by
accepting a range of inquiries, comments and requests,
either directly from customers or via channels such as
telephone or our website. The numerous invaluablecomments we receive are then fed back to the relevant
division, so that they can be used to identify andrectify issues, in areas such as product development,
quality control, sales and service standards.
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 number, website and otherchannels. In fiscal 2017, we received approximately 786,000 calls from customers and around 5,959 comments
via our website.
In fiscal 2017, we received the following scores based on customer questionnaires.
- Ease of contacting Customer Center via toll-free number
79.0 points- Politeness of telephone operator
83.1 points- Overall score
81.0points

Customer center

84

CSR Report 2017│Inquiry Response and Support System

Our Customers’ Comments (Customers’ comments and inquiries through our website in fiscal 2017)

The breakdown of inquiries from customers is 79% from individuals and 21% from companies.

There are the three major topics: (1) Product in use: 45.8%, (2) Product that a customer is considering purchasing:
31.7%, (3) Parts & products: 12.6%

Many inquiries were kitchen appliances-related.: (1) Kitchen appliances: 44.6%, (2) Water heater and bath-related
products: 22.3%

85

CSR Report 2017│Inquiry Response and Support System

Enhancement of Online Support
Responding to customers who have told usthat they want to be able to troubleshootsome issues for themselves, we haveadded a Frequently Asked Questions
section to our website.

83.3% of users have expressed satisfaction
with the content of our FAQs, and thenumber of visitors accessing the FAQs
page is rising constantly. Content willcontinue to be frequently updated andexpanded to further assist our customers.

After-Sales Service
Our after-sales services are geared to delivering peace of mind to users and ensuring everyday comfort for all ourcustomers.

Speeding Up After-Sales Service
We have around 700 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.

86

CSR Report 2017│Inquiry Response and Support System

Evaluating Performance Based on Service Specialist Questionnaire Cards
We place a strong emphasis on customer satisfaction and are committed to meeting customer requests andanswering 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 “customer feedback questionnaires” to tell us how
satisfied they were with the experience, and the results are fed back to the relevant departments. In fiscal 2017, a
total of 18,000 questionnaires were completed by consumers, and average satisfaction was 94.6 (out of 100).

Supplies of Service Parts
As a rule, we keep gas appliance parts for 5 to 10 years (and in some cases for longer) after production ends. Being
able to deliver 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 numbersof 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.

87CSR Report 2017│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, 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 beenreported. To make customers realize that appliances, like most products, have a particular service life and toencourage customers to have their Rinnai products inspected regularly, we send out the necessary information andextend advice through the maintenance 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 homeuse hot-water unit and completed 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 inspectionin July 2011. Currently, we began putting in place an extended inspection framework in preparation for full-scaleinspections 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)

Efforts to Coordinate an Inspection System
To adequately implement inspection, 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 reliable inspection system.

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CSR Report 2017│Inspection and Repair Services

Voluntary System Action Items and the Current Status
Action items

Rinnai’s current status

Enhancement ofprovision of
information

We post the detailed information on maintenance and inspection system for our products for along period of time on our website. The information includes the products that are out of
scope of legally mandatory products (specific products that require maintenance).

Enhancement of
items to beinspected

In addition to the items of which inspection is legally required (specific products that require
maintenance), we set safety inspection products including home-use outdoor gas hot-water
units, built-in-stoves and gas fan heaters.

Inspection quality
improvement

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.

Warning after theinspection

When an inspection result concluded 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

For the safe use of products, we recommend an inspection in 9 - 11* years after the production.
*For home-use appliances (Professional use: 2.5 to 4.5 years)
Designedstandard
service life*

Target product

Home-use gas hotwater units
Electric dishwasher
and dryer
Commercial-use
3-year product indoor-type gas hot
water heaters
10-yearproduct

Inspection
period9-11 years
after
production
2.5-4.5 years
after
production

0-6 months
in advance

Production Purchase

Registration1

Notification

Inspection
periodInspection2

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 the normal
circumstances with proper handling and maintenance. This is defined 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 (specific maintenance products)
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 receivea reply in response to the initial inspection notice, the user will be sent a repeat inspection notice by mail when
there is one year remaining before the end of the inspection period, so that they can continue to use their equipment
safely.
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CSR Report 2017│Inspection and Repair Services

The period for legal inspection of commercial-use equipment produced in April 2009 started in October 2011, so
we began sending notices on the inspection to applicable customers. About 70% of customers who responded to
the notices 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) ahigher rate of inspection applications.

Maintenance and Inspection System of Long-Term Use Products
Rinnai products corresponding
to safety inspection system

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

Indoor-type bathwater heaters
with gas burners(for city gas,and LP)

Indoor-type gas instant
hot water heaters(for city gas, and LP)

Dishwashers(built-in)●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 at thetime of purchase

Owners (and Suppliers)
RegistrationRegistratio
n ofchanges
Inspection

Owner’s Card
(packed withproduct)
Onlineregistration
By phone

Rinnai
Mail

Information
Management

By card enclosed with notification

Inspection
reminders sent
by mail toregisteredappliance
On-siteinspection

By phone
By card enclosed with notification

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.

The scope of the Anshin Tenken (safety inspection)•Outdoor-type gas water heaters and bath water heaters(Including hot-water and heating units, and heat sources
only for heaters)
Gas water heaters
Gas bath heating systems
Gas heat source for water heaters
Gas heat source only for heaters• Gas heaters
Gas fan heaters
Gas fan-forced heaters
Gas stove
Gas dryer•Built-in-gas-stoves

Built-in-gas-stoves
Built-in-gas-oven* Some products are out of scope.

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CSR Report 2017│Inspection and Repair Services

From Registration to Inspection
Based on data provided by registered users, we mail inspection notices* to the designated address when therelevant 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* comewith. This function reminds users of legally designated “specified maintenance products” that their products aredue for inspection after the equivalent of 10 years of normal use, and users are alerted to this fact by their remotecontrol, a blinking indicator on the product, or similar means. This function also serves to encourage unregisteredusers to register and request an inspection. This is just one example of our commitment to developing products thatdeliver 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 andinspection 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 andidentify 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 areoccurrence of this kind of accident, we continue to offer free inspections to customers using small, open-typewater heaters, including the RUS-5RX, produced between July 1991 and January 1995, and the RUS-51BT,
produced between May 1994 and January 1997.
Expanding eligibility for inspections: We carry out inspections for small, open-type water heaters that do not havean “inspected” sticker affixed, even if they were manufactured before April 2009 (including two models that haveexperienced 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.

91

CSR Report 2017│Communication with Customers

Communication with Stakeholders

Communication with Customers
Customer Satisfaction Review, and Improvement of Products and Services
Through communication with users, we strive toimprove the products and services by understanding
customer satisfaction, complaints, and points ofimprovement 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 theInternet to meet this need. We ask customers who
have purchased the product for a survey to help us
improve our products and services.
Among the results of the survey regarding“Reason for purchasing,” “I liked the simple designs”
and “I liked burners with stronger heat power” were
the answers given most, showing that this productplanning was successful in gaining customer
acceptance.

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
the most out of their purchases for as long as possible.
The site started in October 2006 as online shopping site for the genuine exchangeable parts of Rinnai products.
The range of offerings is being constantly expanded in response to direct customer feedback, and now includes
cleaning and kitchen supplies 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 forcontact with users of our products. To keep in touch with 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 with customers in our quest to deliver better service.

92

CSR Report 2017│Communication with Customers

R.STYLE online shopping site

Using Online Customer Feedback Internally to Make Improvements
The extensive feedback provided by customers using the
R.STYLE shopping site is shared between divisions via ourinternal Sunflower Messenger site so that it can be analyzed andaddressed to enhance quality, expand service and support, anddrive 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 MediaIn May 2014 we launched “Goto-kun’s Daily Recipes,” a recipe site for smartphones to help people decide what tocook. The site provides a daily selection of seasonal recipes, along with detailed instructions and lots of photos, toassist people struggling to decide what to cook on any given day.
We 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 useful everyday information in areas such as cleaning and storage, as well as theaforementioned daily recipes.

Goto-kun’s Daily Recipe site, andRinnai Style Face Book site (right).

93

CSR Report 2017│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 anemphasis on 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 theprinciple of disclosing corporate information in an appropriate, timely and fair manner, including details of theGroup’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 our business activities, and to ensurethat information in disclosed quickly and fairly, we provide information via channels such as results briefings foranalysts and institutional investors (twice a year), biannual shareholder reports, press releases and presentationmaterials 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 the interests of timely disclosure.

“Information for Shareholders and Investors” on our website, presentation materials, and our shareholder report

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 28, 2017. 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 readand navigate as possible by, for example, printing them in large format and providing indexes to them. We strive
to provide information to shareholders on the current state of our business in an easy-to-understand manner usingbusiness reports with slides and other media at general shareholders’ meetings. Shareholders that have difficultyattending the general shareholders’ meetings are able to exercise their right to vote on the Internet. We also makeevery effort to communicate the company’s current situation to shareholders in a straight-forward manner,
through shareholders’ report featuring photos, graphs, and charts for instance.

Communication with Institutional Investors and Analysts
In addition to biannual presentations outlining our results, we discuss our
performance and actively exchange opinions with institutional investors andanalysts through activities such as small meetings, visiting individual investors
and accepting telephone interviews. We also take part in conferences organized
by securities firms, in an effort to expand our IR activities. We organize factory
tours every year as an opportunity to provide a better understanding of ourcommitment to monozukuri (manufacturing).
Factory tour

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CSR Report 2017│Communication with Shareholders and Investors

Factory Tour and Talk Session forPrivate Investors
On June 23, 2017, we held a factory tour and talk session with Commons Asset Management, Inc. for private
investors. A Seto Factory tour was to deepen understandings of manufacturing as well as our initiatives such as
corporate philosophy, management policy, business strategy, and overseas deployment through interactive sessions.

Sharing “Invisible values” through factory tour
We had a tour at the Seto Factory, the main factory producing water heaters. It
was a very valuable experience as an investor to be able to tour the factory, theheart of the Rinnai whose philosophy is “Quality is our destiny.” The factory
was managed under 4S (Seiri, Seiton, Seiso, Seiketsu—sorting, setting-inorder, cleaning, cleanliness) in every hole and corner, and I was impressed withthe commitment toward manufacturing. The smiles of the guides were
especially memorable. I felt that they were feeling proud of their work and theircompany. At Rinnai, where “everyone participates” with a “handmade-feel” asa very attractive culture, “Invisible values” was there to support continuous
value creation that cannot be read from the financial statements.

Ken Shibusawa,
Chairman, Commons AssetManagement, Inc.

Our Policy on Dividend
One of our top management priorities is to sustain a stable return of profits to shareholders. Several factors playinto the calculation of dividends, such as consolidated performance, return on equity and financial status.

Share Information (As of March 31, 2017)
Number of authorized shares: 200,000,000 shares
Number of outstanding shares: 52,216,463(Including treasury stock)
Number of shareholders: 4,002

International Reputation for CSR
Rinnai has been selected for inclusion in the FTSE4Good Global Index, a worldwide socially responsible
investment (SRI) index, for 14 consecutive years since 2004. Also, in July 2017, we were selected for the FTSE
Blossom Japan Index and MSCI Japan ESG Select Leaders Index, which are ESG investment indexes.

95

CSR Report 2017│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 andselection 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 Our 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 to thecreation of products that attract consumers to the Rinnainame. At Rinnai, we believe that building stable, longterm relationships with our suppliers and growing withthem as they grow with us is vital to the creation of
better products.

Realization of Fair-and-Square Transactions
In accordance with the Rinnai Code of Conduct in the Rinnai Group Code of Ethics, our supplier acceptanceprocess is applied uniformly, whether the company is an old-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 athome 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, wellconsidered decision.

96

CSR Report 2017│Communication with Business Partners

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 and regular 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 a stronger 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 for business risk during a disaster.

Policy information meetings

Improvement Activities with Business Partners
We organize workshop events with our business partners, toprovide guidance on improving capabilities and training next-generation
leaders. The aim is for business partners to appreciate the benefits ofimprovements, through direct guidance with onsite operations for
instance, and to improve their level of monozukuri (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 is therefore 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(BCP), with our business partners.
We are also able to quickly arrange alternative production and equivalent parts in the event of a natural
disaster or other such unforeseen circumstances, so that we can minimize any impact on production activities.

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CSR Report 2017│Communication with Business Partners

Promotion of Acquisition of ISO9001 and ISO14001 Certifications
To ensure provision of high-quality, safe, environmentally friendly products, all our domestic factories acquired
ISO9001 certification (for quality management systems) and ISO14001 certification (for environmental
management systems).
We also ask our business partners to understand our approach to quality and the environment and toobtain ISO9001 and ISO14001 certifications or establish equivalent management systems, and we help them
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, targets 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
the quality. We also visit partners’ working sites regularly to share issues with them and help them make
improvements.

Forklift Contest
We stage a regular forklift contest for employees of our group companies and logistics partners. The aim of the contest
is to make the workplace safer and more secure by driving home the basic rules on forklift truck operation and raisinghandling skills. The fifth forklift contest was held at our Integrated Logistics Center in May 2016, and a total of 26
competitors took part: 14 from the Rinnai Group and 12 from our logistics partners.

Forklift contest

98

CSR Report 2017│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 tomotivate employees and provide them with greater job satisfaction. We also strive to create a homely atmosphereand to improve and maintain a safe and healthy workplace so that every single employee can get the most out of hisor 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-thejob 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)

Personnel Training
We defined our fundamental human resources policy as "Nurture and encourage our employees to have a highlevel of morality 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 our Corporate 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-specifictraining programs, specialization courses, OJT trainings 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 we offer personnel training to assist employees to fully demonstrate
their capabilities.
Our main training is on-the-job training (OJT), wherein asupervisor guides his/her team member through an actual job. In addition,
we provide a rank-specific training program, which supports the
improvement of each employee as an individual by grouping themaccording to job responsibility, and a 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 ourbusiness plan since fiscal 2011.

99

CSR Report 2017│Communication with Employees<Major Rank-specific Training Programs in Fiscal 2016>
Training

Subject

Content

Numberoftrainees
92 people

90
peopleNew employee
training programNew
employees

Basic training for professionals (manners, awareness as aprofessional), Fundamental training for Rinnai employees(company overview, the Rinnai Spirit, corporate ethics,
personnel system, policy on quality and environment), IT
skills and mental health

New employee
follow-up training

Generalists(Clerical andsales
employees)
in their 1st
year,
Generalists(technicalemployees)
in their 2nd
year, clericalemployees(technicalemployees) intheir 1st year

Training for increasing motivation to work and raisingprofessional awareness(Reconsolidation of what was learned in the new employee
training program; employees who joined the company inthe same year gather and share information about theircurrent status)

S4 level qualified
employee training

S4 levelqualified
employees

M6 level qualified
employee training

M6 levelqualified
employees

M6 level qualified
employee followup training

Reviewer training
Follow-up training

M6 levelqualified
employees
Employees
whose duties
require them tointerview
subordinates
and review
theirperformance

Reconsolidation of fundamentals (corporate ethics andmanagement policy), Recognition of his/her characteristics(to improve the strength) and the reinforcement ofawareness of management (creation of management plans)
Reconsolidation of corporate ethics and management policy
Understanding duties of managerial supervisors (rules of
employment, Labor Standards Act, handling of problematic
employees), Understanding of management
Reaffirming shared goals
Reconsolidation of values concerning managers’ actions
Reviewing the efficiency of the entire workplace
Review of personnel systems
・Understanding of objectives and methods of performance
reviews
・Improvement of interview skills through interview
practice

New employee training program90
people47 people

47 people

79 people

President’s speech

100CSR Report 2017│Communication with Employees

Career Development Review and Support
Visualizing skills of individual employees and guiding their growth (capability evaluations andfeedback of the results in one-on-one interviews)
For each training program to function effectively, it is essential to match the capability required by theorganization and the goals set by the employees.
Therefore, Rinnai prepares a "Skills Map" and a "Capability Evaluation Sheet" to define the skills
and capabilities required by each department and to clarify the goals and capabilities the company expects
the employees to achieve. Based on these tools, our employees understand their current roles andresponsibilities. Employees also have a one-on-one interview with their supervisor, during which theyreceive the results of their performance evaluation and are informed of the company's future expectations ofthem. 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 theresults of the evaluation through one-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 an individual, we actively provide programs including foreign language education, correspondence
courses, external open seminars, technical proficiency examinations, license acquisition courses, andcommunication with people in different companies/industries. We provide rank-specific training programs tocreate opportunities to be aware of aspects for strengthening one’s sense of humanity. To employees whowish 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 the young employees who have a strong desire to work overseas, we arrange andoperate a short-term overseas working and training program that is available for them via application. This is
to develop human resources that can globally demonstrate their capabilities working at our overseas
locations. Currently, a total of six young engineers are working 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 andimprove the capabilities 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 theirability to adapt to foreign cultures and their international business sense 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 reformprojects when specially requested. 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 Japanfor about one year, learning practical skills and what to improve at their own companies at the development
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CSR Report 2017│Communication with Employees

divisions, factories, and management divisions in Japan. Japan-based employees assigned overseas practiceproduct marketing and handling of quality issues, as well as improvement of factories’ manufacturing andproduction 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.

From Our Employees Seconded Overseas (1)I was posted from the Overseas Business Headquarters to our Dubai
Representative Office 18 months ago. The Dubai office is responsible
for sales, marketing, and technical support targeted at customers in the
Middle East and Africa, which Rinnai sees as major growth markets
going forward. There also remain untapped markets for us in theseregions, and establishing a foothold in these markets is another of theDubai office’s missions. We do business with customers of all
ethnicities, and what is normal practice in Japan often does not apply
here. I believe my experience here has taught me how to convey ourposition better while respecting local approaches through daily
communication. Although being responsible for a market with suchconsiderable potential puts you under pressure, I aim to transform thispressure into a sense of fulfilment and make my own contribution to thedevelopment of the Rinnai brand.

Koji Teramoto
Dubai Representative Office

From Our Employees Seconded Overseas (2)I have been working for Shanghai Rinnai since February 2017, after being
engaged in the development of water heaters for the Water Heater System
Development Office in the Research & Development Headquarters. At
Shanghai Rinnai, I provide overall support for water heaters and boilers
being developed in Shanghai both for domestic and overseas destinations
by applying my experience in Japan.
As the market in China is expanding, there are many competitors andthe market is evolving quickly. Even in such a challenging environment, I
would like to continue to provide support in order to timely develop
products that customers need.
Although it is sometimes difficult to deal with our differences inlanguage, culture, and attitude toward work, I would like to do my best in
product development, believing that an attitude of working patiently is of
the utmost importance.

Yasutaka Ueda,
Shanghai Rinnai Co., Ltd.

From Our Employees Seconded Overseas (3)I joined Rinnai as a mid-career hire and spent my first five years or soworking on agency sales, marketing, distributor sales, and productplanning. I was then posted to Rinnai America, where I have now been forthe past six months. Here, I work with local hires from a range of
departments in areas including business management, supply chain
management, finance, internal controls, and product planning. My
assignment here has involved me in a wide range of such work with ouroverseas distributors, and I feel that I have grown as a result. Although I
had previously worked overseas in a regional headquarters, I get a real thrill
now from being involved in implementing strategy at an overseas
distributor and having more contact with customers nearer the marketplace.
Looking ahead, I want to contribute to accelerating the Rinnai Group’s
development of operations overseas by being closely involved in the
distributor business.

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CSR Report 2017│Communication with Employees

Succession of Monozukuri, the Spirit of Manufacturing
Training at Production Technology Center"Production Technology Center" established in March 2010 is a place to pursue leading-edge monozukuri,
and an emphasis is placed on delving into core technologies. It is also a hub for developing human resources
involved in monozukuri activities at Group companies at home and abroad.
To pass Rinnai's monozukuri to the next generation, over 30 booklets of “Visual manual” were
produced as a talent developing support tool. Utilizing this tool, our staff 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 Production Technology Center
We have set up “monozukuri legacy stations” at each of our facilities to accumulate and maintain intangible
assets, in the form of existing processing technologies, new technologies and “frontline insights” established byexperienced employees. As well as giving newly assigned employees the opportunity to learn the basics ofmonozukuri (manufacturing), we use stations as a means of sharing and conveying the essence of monozukuri andtraining employees in areas such as improving efficiency and reinforcing production management.

Employee conduct display(Oguchi Factory)

Coating training station(Seto Factory)

New Engineer Training
New employees before their actual allocation to each department, receive onsite training at the Research andDevelopment Headquarters and Production Engineering Division as well as practical manufacturing training atfactories and production Group companies, and sales training at the nationwide sales offices to learn about theimportance of monozukuri including product and technology development.

Studying the structure ofdish washer

Studying the structure ofplug of gas appliances

Studying about gas combustion

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CSR Report 2017│Communication with Our Employees

Work-Life Balance
Support for Work-life Balance
For all Rinnai employees to perform well attaining the sense of accomplishment and fulfillment balancing
work and personal life for each lifestyle, we continue to enhance our personnel system to support all
employees of any gender and nationality through their lives.
In fiscal 2013, we are planning to extend the period of childcare leave and childcare shortened work
hours, which many employees use, to strengthen support for working women. We will also actively develop
and apply measures for supporting health management.
< Major Programs and Measures in Fiscal 2017>
Number of users
Program and measureChildcare leave

Childcare shortened
work hours

Child nursing leave

Content
An employee who lives with and is the caretaker of a childyounger than 12 months of age can take leave until the child turns
1, or alternatively until the child is aged 1 year and two months.
In the event that an employee is the caregiver of a child that hasn't
been enrolled in an elementary school, or is the caregiver of afamily 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 employee's absence would
preclude or inhibit the continuation of normal business operations
An employee can take up to ten days leave per year (20 days per
year if nursing two or more children)

Fiscal2017

Fiscal
2016

95

90

106

69

16

15

0

1

0

0

2

3

Family care leave

In principle, total 93 days of leave (more than once, up to threetimes) may be granted per one family member who falls in to thesubject of the care.
Any employee who is responsible for a family member that
requires full-time or nursing care may shorten his/her daily
working hours, provided that a minimum of 6 hours are worked
each day. This provision is possible for more than once during
three years from the starts of use of this program per such family
member.
An employee can take up to 10 days leave per year (20 days per
year if two or more family members require care)

Work from home
program

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.

2

3

Come Back program

The program offers an employment opportunity to our former
employees who had to leave the Company for unavoidable
reasons such as marriage, child-care and family-care, or on his/her
discretion.

00Measure to reduce
working hours (Flexible
working hours)

Depending on work plan, working hours and work start/end time
can be negotiated.

Measure to reduce
working hours (Noovertime day)Every Wednesday is set as “No overtime day” to encourage
employees to leave early.

Extended family care
leave
Family-care shortened
work hours

Production
divisionsManagement
divisionsApplicable tocertaindepartments

General Employer Action Plan

We draw and implement the general employer action plan (The fourth plan, from fiscal 2016 to fiscal 2020) basedon Act on Advancement of Measures to Support Raising Next-Generation Children.
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CSR Report 2017│Communication with Our Employees

Measures to Enrich Our Employees’ Family Lives
Rinnai regularly holds a labor-management council in order to share the opinions of each company workplace, andto find ways to improve in an effort to nurture workplace environments and a corporate climate that our employees
are proud of working in.
We share challenges specific to each business location and review existing systems to promote improvement. In
fiscal 2017, we encouraged employees to take paid leave, introduced a new allowance called Urban Allowance, andheld nursing care seminars. We also help to support the cost of health promotion events held by the Employees’
Association, including the sports event, the bowling competition, and the walking festival. In development bases andfactories, we work with the Employees’ Association to host workplace tours to help employees’ families better
understand our work.

<Major Programs in Fiscal 2017>
Item

Overview

Nationwide events in Japan

Various events to promote health of our employees and their family
members and communication including bowling competition, barbecue
picnic, and sports festivals

Training seminars by age group

Training seminars focusing on the “Education for the soul” that supports
employees to develop attractive personalities as members of society

Nationwide Events
Chubu Sports Festival (Oguchi Sogo Ground)
Walking Festival (Higashiyama Zoo)
Kanto Festival (Kasai Rinkai Park)
Nationwide BBQ event, in Hokkaido, Tohoku, Niigata, Hokuriku,
Shizuoka, Chugoku, Shikoku, and Kyushu

Chubu Sports Festival

Number of participants
1,521
1,516
216
668

Nationwide BBQ event (Hokkaido)

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CSR Report 2017│Communication with Our Employees

34th Walking Festival
This annual walking event is designed to let employees enjoy time with their families and raise their awareness ofhealth. The venue this time was the Higashiyama Zoo and Botanical Gardens where, participants enjoyedenvironmental quizzes and games while walking the 10,000-step (approx. 4.1 km) course. A total of 1,516
employees and family members participated in the 34th annual event.

Training Seminar by Age
Personality design seminar
Life design seminar
Self-realization seminar
New employee communication seminar

Life design seminar

Number of participants
90
99
107
90

New employee communication seminar

We value the connection of people to promote our activities
The Rinnai Employees’ Association holds various training sessions, hosts
recreational events, and issues corporate magazines advocatingthe ”company’s prosperity and well-being of employees” as a basic
principle. We particularly place importance on the connection of people
for our activities so that employees as well as their family members canfeel glad that they or their family members work for Rinnai.
Following the rising trend of the percentage of female
employees in recent years, we continue to work to improve corporate
systems and workplace environments to flexibly deal with upcomingchanges in employment environments, such as declining birthrate,
promotion of female workers, and nursing care demands.

Michihiro Hashimoto,
Chairman of
Rinnai Employees’ Association

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CSR Report 2017│Communication with Our Employees

Industrial Relations and Human Rights
At the Rinnai Group, aiming to provide the work environment and culture that employees can feel as "I am happy
to work at Rinnai.", the Rinnai Employees' Association and Personnel Affairs Division regularly convene theLabor-Management Council to confirm and share the information on management policy, actual results, andcomments from each workplace as a periodic improvement activity.
Moreover, our basic stance toward human rights, the respect for each other's personality and the prevention ofharassment is compiled as "Rinnai 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 the workplaces.

Establishment of Good Labor Relations
The Employees of the Company are "members of the Rinnai Employees' Association" which functions as theorganization to represent entire 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 condition, workplace environment andcompensations and discussing improvement plans.
Moreover, the Company makes effort to provide safe working environment without any concern to theemployees of our 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
Our 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 ideasof the United Nations framework and ISO26000 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, acompliance 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, “Rinnai Group Code of Ethics, Rinnai Code of Conduct, Article
11 The respect for human rights and each other’s personality (4)” stipulates as “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 will of employees.” Entire Group abides by and acts on this rule.

Measures to Prevent Harassment
To maintain working environment that our employee find comfortable, we take measures to prevent any
infringement of human rights including sexual harassment and power harassment.
To avoid our employee to commit any harassment without any intention and knowledge, we produced a checklist of detailed examples of harassment case that is posted on the company-wide 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 Equal Employment Opportunity Law and Child Care and Family Care
Leave Law, we revised our inhouse rule to prevent any harassment related to pregnancy, childbirth, family careleave. We clearly determined the detailed act of prohibiting harassment and disciplinary action based on the rulesof employment if an employee has violated.

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CSR Report 2017│Communication with Our Employees

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.
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, in line with prevailing business plans and recruitment needs.
In addition, we actively engage in mid-career hiring to capitalize on the accumulated experience andknowledge of individuals who showed they can make a contribution to our success. We hire about 25 skilled midcareer 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 anddemonstrating their individual abilities across a wide range of areas,
especially in product planning and design departments, sales planningand promotion departments, fixed customer sales departments andproduction 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 theiropinions. They share their opinions on product functions, 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 in the career-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 the CAE simulation.
My work directly impacts the form of products, so I actively
propose ideas to improve workability, ease of use, and design from theviewpoint of customers. My proposals have been reflected in many ofour 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 ideas from a perspective that is distinctly female.

Satoko Miwa,
Die Machinery Office,Production Engineering Division107

CSR Report 2017│Communication with Our Employees<Major Programs>
Career track conversion system
Reemployment system (Come Back
Program)Childcare leave and Family care longleave
Shortened work hour system
Work from home program

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),
or from 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
A program to support employees to raise children and care theirfamily members
A program to support employees to raise children, care theirfamily members and recover from diseases(3) Action Plan to Support Programs for Working Women
From fiscal 2017, we implemented the action plan base on the Act on Promotion of Women's Participation andAdvancement 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 171 employees working under this program. We offer oneyear contracts until the age of 65, with a choice of three options, enabling employees to work full time, alternatedays or reduced hours. We also have a 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 andmaintains and improves the corporate culture and dynamics within the workplace.

Promotion of Recruitment of Handicapped Employees
Since fiscal 2009, we have promoted recruitment of handicapped employees in a planned manner by cooperatingwith the public employment security office and schools for the disabled. In the initial year, the employment rate ofpersons with disabilities at the Company was only 0.79%, so out of a sense of social responsibility (sense ofurgency) we took a more active stance toward recruiting handicapped people.
In July 2008, the public employment security office greatly assisted us with recruitment of handicappedpeople. The office allowed us to hold an exclusive job interview meeting at which we interviewed a total of 28
applicants and employed 15. We later began to recruit new graduates from schools for disabled students andimplemented an internship program for second-year students of those schools. The number of newly recruited
disabled employees has been increasing each year.
The Customer Center we established in fiscal 2011 has toilets and ramps for wheelchair users, and barrier-freeelevators; thereby improving the Company’s internal facilities for handicapped employees. The employment rateof persons with disabilities at the Company has consequently been significantly improved to 1.87%. We willcontinue to promote recruitment activities and improve the workplace environment toward achievement of thelegally mandated minimum employment rate of 2.0%.

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CSR Report 2017│Communication with Our Employees

Occupational Health and Safety
The Group gives priority to the assurance of the health and safety of our employees and stakeholders andabides by the 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 our employees to be 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 ahazard-free and hygienic work environment. As Rinnai constantly strives to protect the life and health of all
employees we give top priority to the sanitary condition 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

Status of On-the-Job Accidents and Injuries
In fiscal 2017, we made efforts to achieve the goal of zero accidents under the Rinnai Companywide Health and
Safety Committee, serving as the administrative organization of Group companies in Japan. We recorded a total of
32 on-the-job accidents (6 decrease comparing to the previous year).
In response, under the improvement plan for fiscal 2018, we will implement “ job accident analysis andrelapse prevention” and “implementation of the safety patrol at the workplace which job accidents often
occurred” as priority measures.
With regard to the on-the-job accidents occurring in the previous year, each Group company will as soon as
possible take measures for preventing their recurrence. The entire group will thus make concerted efforts toensure prevention of accidents toward achieving the goal of zero accidents.

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 astrong corporate structure to withstand crisis situations, establishes business continue plans for a quick recovery at
the time of disaster.

109

CSR Report 2017│Communication with Our Employees(1) Activities to prevent fire and explosion: Enforcement of safety inspection of environmental safety equipment(gas feeders and furnaces, etc.) and test and evaluation equipment, and the improvement and renewal ofequipment 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 onsite guidance: Horizontal development of the production sites under the guidance of the
Safety and Health Committee of Production Group(4) Training for clerical work staff and new employees: KYT training for new employees including a monthly
information sharing session regarding on-the-job accidents, designed to promote work-safety awareness.
(5) Implementation of emergency drill: "Earthquake and fire drill" 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 thetime of disaster.

Emergency drill

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

chDriver education at a driving school110

CSR Report 2017│Communication with Our Employees

Care for Health
To promote the creation of a vibrant corporate environment wherein people can work healthily -bothphysically and mentally, it is a precondition that each employee to be health conscious and promote soundself-management and health enhancement.
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 health care workshops, medical checkup support, support for special
medical checkups (complete medical checkups and cancer screening) and introduction of 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 theirdependent 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 officiallyintroduced a Data Health Plan in fiscal 2017, in which employees at the age of 35 and older are subject toguidance for the prevention of metabolic syndrome, and dedicated health guidance and personalized support areprovided for diabetic patients who have not received 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 wellas 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-related diseases.
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 workplaceas smoothly as possible.
To prevent those working long hours from experiencing health problems, we set out standards that go beyond
legally required standards, and also arrange consultations with health nurses and industrial physicians.
In our employee cafeteria meanwhile, we work with nutritionists to provide menu options that are designed tokeep our employees healthy.

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CSR Report 2017│Communication with Our Employees

Mental Health Care
We strive to promote a healthy work environment by providing mental healthcare to prevent any sort of mental health issues before they occur and to quickly
discover any stress-related issues.
During fiscal 2017, we held 16 different self-care seminars andseminars for administrators that included 321 employees with the goal of having
employees notice when they are stressed and how to cope with it best.
Following the system to check employees’ stress instituted in 2016, webegan holding seminars in this fiscal year on how to utilize the results of thestress check in a group level. Three new locations have been added for theseseminars to disseminate the importance of mental health to more employees.
Self careLine care

New employees
Basic program

All employees
Basic program

Applied program

Managerial supervisor
Basic program

Applied program

Advanced program

Listener program

Internal care

Industrial doctors, public health nurse, health supervisors, labor managers

External care

Mental health counseling service (telephone/face-to-face)

External Acclaim and Recognition
Selected as 2017 Health and Productivity Company for Two Consecutive Years
Rinnai was selected in February 2017 by the Ministry of Economy, Trade andIndustry and the Tokyo Stock Exchange as a 2017 Health and Productivity
Company.
Those selected as a Health and Productivity Company are companies withexcellent health and productivity management* which strategically practice themanagement of employee’s health and wellbeing 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 long term
perspective.
Our company was selected as a Health and Productivity Company for thesecond year in a row in the metal products category of the Tokyo Stock
Exchange for our support for promoting employees’ work and life balancethrough mental health care and personalized health support and activities.
* Health and Productivity Company is a registered trademark of workshop for the Management of Health on Company and Employee(nonprofit organization).

Certified by the City of Nagoya as a “Company Promoting Women’s Activities”
Rinnai was certified as a “company promoting women’s activities”, as partof 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 can play an active role, 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 that they can play a greater role in the workplace.
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CSR Report 2017│Communication with Our Employees

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

Certified as “General Business Owner Meeting Standards”
In May 2014, Rinnai was certified by the Aichi Labour Bureau of the
Ministry of Health, Labour and 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 toformulate and implement action plans based on targets such as employing
specialist health nurses, securing childcare leave for male employees, andencouraging employees to take annual paid leave.

Certified as “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 ofprograms to facilitate work-life balance, including telecommuting
arrangements and our “Come-Back” reemployment program.

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CSR Report 2017│Communication with Our Employees

Human Resource and Personnel Related Data
We disclose human resource and personnel related data including the number of employees and the status of fulltime
employees.
Number of full-time employees (consolidated, year-end)
Fiscal 2015

Fiscal 2016

Fiscal 2017

(At March 31, 2015)(At March 31, 2016)(At March 31, 2017)

Male

2,536

2,495

2,520

Female

1,094

1,084

1,122

Domestic Group
Companies

Male

1,107

1,112

1,487

Female

567

562

687

Overseas Group
Companies

Male

3,032

3,231

3,277

Female

1,346

1,456

1,419

9,682

9,940

10,512Rinnai Corporation

Total

Number of full-time employees by region (consolidated, year-end)89
Fiscal 2015
Fiscal 2016

Japan

Asia excluding
Japan
North America, andEuropeOther(Oceania, SouthAmerica)
Total

Fiscal 2017

Composition(At March 31, 2015)(At March 31, 2016)(At March 31, 2017)

Male

3,643

3,607

4,007

-

Female

1,661

1,646

1,809

-

Sub-total

5,304

5,253

5,816

55.3%

Male

2,549

2,592

2,604

-

Female

1,141

1,171

1,143

-

Sub-total

3,690

3,763

3,747

35.6%

Male

106

123

138

-

Female

43

46

51

-

Sub-total

149

169

189

1.8%

Male

377

516

535

-

Female

162

239

225

-

Sub-total

539

755

760

7.2%

9,682

9,940

10,512

100%

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CSR Report 2017│Communication with Our Employees

Number of employees (non-consolidated)

Male
FemaleMale
Mid-career
recruitment
FemaleAverage working years
Average age (years old)
Separation rate (%)
Paid leave utilization ratio (%)
Employment rate of persons withdisabilities (%)
Number of employees who usedchildcare leave
Proportion of employees who return
to work after taking parental leave(%)
Number of employees who usedshortened work hours
Number of employees who used thework-from-home program
Annual non-scheduled working
hours per employee
Annual total actual working hours
per employee
Number of on-the-job accidents
Newly recruitedemployees

Fiscal 2015

Fiscal 2016

Fiscal 2017

(At March 31, 2015)(At March 31, 2016)(At March 31, 2017)

73
39
7
6
14.2
36
2.4
41.6

82
47
7
3
14.7
36.5
2.3
42.3

57
35
7
8
15.1
36.8
2.1
50.3

1.72

1.82

1.87

81

90

95

96

90

95

68

69

106

2

3

2

216

227

225

2012

2028

2019

26

38

32

115

CSR Report 2017│Communication with Our Communities and Society

Communication with Our Communities and Society
The Rinnai Group engages in a variety of voluntary and community-based activities in Japan and around theworld in order to make a sustainable contribution to society.

Exhibit at Eco Products 2016
The Company has taken part in the EcoPro exhibition since 2013, theenvironmental 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 generalpublic, and also elementary and junior high school students on field trips.
During EcoPro 2016, nearly 2,000 elementary and junior high school
students visited our booth to learn about the energy used in homes and ourenvironmental and energy-saving products.

Clothes Drying Services for Typhoon Victims
Rinnai Korea conducted a free repair of products and free clothes drying
service using gas clothes dryers for typhoon victims when Typhoon No. 18
in 2016 flooded the rivers affecting Ulsan, a southeastern city in Korea. The
service was carried out for four days from October 6, 2016 to October 9,
2016; a total of 45 units of products were repaired and approximately 408
kg of clothes were dried.

Central Italy Earthquake Relief Efforts
Rinnai Italy bought food directly from the local small to medium-sizedbusinesses and donated them to customers to help areas devastated by theM6.2 Central Italy earthquake in August 2016 to support the locals. Webought approximately 6,000 euros (about 750,000 yen) worth ofamatriciana spaghetti and sauce, a pasta that originated in Amatrice, which
was near the epicenter that had devastating damage, and assorted
ingredients (ham and cheese) and recipes as well as cheese and chocolates,
canned as a gift, and delivered to customers.

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CSR Report 2017│Communication with Our Communities and Society

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 is committed to contribute 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 2016, The 7th Nakagawa Canal Dragon Boat Race
Tournament (sponsored by the Nakagawa Canal Dragon Boat Race Festival
Executive Committee) took place using Nakagawa Canal. The Company
sponsored this tournament and 45 employees participated in the boat race.
As a part of this event, we participated in a friendship race in which weboated with local children, and built a good relationship with residents andlocal businesses.
The 7th Nakagawa Canal Dragon
Boat Race Tournament

Support for Nakagawa Canal Restoration and Cultural/Artistic
We are donating ¥10 million every year for 10 years (¥100 million in total)
to the Nakagawa Canal Restoration and Cultural/Artistic Assistance Project(known for short as “Nakagawa Canal ARToC10”) set up in fiscal 2012 torestore the canal and surrounding area.
The aim of the program is to revive the district and make it a culturaland artistic hot spot by turning the canal into a venue for modern
contemporary art. Now in its fifth year, the project has drawn steadily
growing awareness among local residents and artists and triggered interestin the Nakagawa Canal.
Photo caption: Navigational Chart “artery of sound” by Yoko Takayama x Yasuda Nao(ARToC10 granted artist)

117

CSR Report 2017│Communication with Our Communities and Society

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
* Chubu High-tech Center (CHC)* 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 2016
* Chinese Spring Festival in Nagoya* Misonoza Kinshu Nagoya Kaomise Kabuki* International Children’s Art Contest at Expo 2017 in Astana, Kazakhstan* RoboCup 2017 World Championship Nagoya* Exhibition of Mural Paintings in the Miei-do at Toshodaiji* Project to Preserve Traditional Japanese Culture118

CSR Report 2017│Supplemental Data 1

Supplemental Data 1: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Oguchi Factory
Location
Number of employees
Business
Land area
Total floor space
Commenced operations:
Acquisition of ISO14001
certification:

Kaechi, Oguchi-cho, Niwa-gun, Aichi
858
Manufacture of gas equipment
48,352 m2
37,093 m2
1964
October 1997

Major production items

Gas stoves

Built-in ranges

Dishwashers and others

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

446.9

77.4

5.4

Other fuels(kl)(crude oil equivalent)
29.0

Emissions into the air
CO2 emissions(tCO2e)3,311.0

NOx emissions(t)
2.7

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

5,318

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

5,318

100.0

Substances subject to the PRTR Law*
NumberClass I designatedchemical substance
nameHandling
amount

53
80
296
300
309
405

Ethyl benzene
Xylene1,2,4-trimethylbenzene
TolueneNickel compounds
Boron compounds

1,500.0
2,300.0
1,200.0
2,000.0910.02,600.0

Amount of emission/discharge
Emissions
Discharge Discharge into Landfill at
into the air into public the soil at the the relevant
watersrelevant office
office1,400.0
0.0
0.0
0.0
2,300.0
0.0
0.0
0.0
1,200.0
0.0
0.0
0.0
1,800.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

(Unit: kg)
Amount of transfer
Transfer
Transfer
to sewers
outside therelevant office
0.1
16.0
0.1
50.0
0.0
0.0
0.0
200.0
1.9
46.0
2.2
130.0

*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

Air
Equipment
Baking furnace
BoilerSubstance
Soot and dust
NOx
Soot and dust
NOxRegulation
value
0.25
180
0.10
150

Voluntary
0.16
150
0.08
96

Actual value(Maximum)
0.001
82.2
0.002
68.2

*Soot and dust: g/m3N*NOx: ppm

Oguchi Factory 1

CSR Report 2017│Supplemental Data 1

Water discharge
Substance
Amount of discharge
pH
BOD
SS

Regulationvalue‒
5.7 - 8.7300
300

Voluntary‒
5.8 - 8.7240240Actual value
Maximum
Mean
421.0
112.2
7.1
7.0
150.0
73.0
94.0
34.0

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand* SS:
Concentration of aqueous
suspended solids

Oguchi Factory 2

CSR Report 2017│Supplemental Data 2

Supplemental Data 2: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Seto Factory
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Anada-cho, Seto-shi, Aichi
793
Manufacture of gas equipment
42,649 ㎡
27,351 ㎡
1979
December 2000

Major production items

Gas water heaters
and others

Heating sourcefor gas water heaters

Hybrid water heaters withheating systems

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

698.5

67.2

26.2

Other fuels(kl)(crude oil equivalent)
15.6

Emissions into the air
CO2 emissions(tCO2e)4,313.0

NOx emissions(t)
3.3

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)

1,788.5

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

1,788.5

100.0

Substances subject to the PRTR Law
Number
53
80
87
300
308

Class I designatedchemical substancenameEthylbenzene
XyleneChromium andchromium (III)compounds
TolueneNickelAmount of emission/discharge
Discharge
Discharge into
Landfill at
into public
the soil at thethe relevant
watersrelevant office
office
1.0
0.0
0.0
1.0
0.0
0.0

(Unit: kg)
Amount of transfer
Transfer Transfer outside
to sewers
the relevant
office
0.0
190.0
0.0
190.0

Handling
amountEmissions
into the air

1,700.0
2,200.0

1,500.0
2,000.0

3,000.0

0.0

0.0

0.0

0.0

0.0

0.0

1,300.0
5,100.0

800.0
0.0

1.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

510.0
0.0

*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

Air
Equipment
BoilerSubstance
Soot and dust
NOxRegulation
value
0.10
150

Voluntary
0.05
79

Actual value(Maximum)<0.002
32.5*Soot and dust: g/m3N*NOx: ppm

Seto Factory 1

CSR Report 2017│Supplemental Data 2

Water discharge
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 - 8.6
25 (20)25 (20)30 (20)Voluntary‒
6.0 - 8.420
20
20

Actual value
Maximum
Mean
76.0
50.3
7.6
7.4
1.9
1.1
6.0
2.4
2.3
1.6

* Water discharge to: The Yatoko River* Water discharge standard:River discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)*( )Daily average

Seto Factory 2

CSR Report 2017│Supplemental Data 3

Supplemental Data 3: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Asahi Factory
Location
Number of employees
Business
Land area
Total floor space
Production started
Acquisition of ISO14001 certification

Nishiyama-cho, Owariasahi-shi, Aichi
286
Manufacture of gas equipment
17,772 m2
7,619 m2
1960
January 2003

Major production items

Gas fan heaters

Gas clothes
dryersBathroom
heaters/dryers

Fan-forced
gas heaters

Infrared heaters
and others

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

151.1

18.8

2.7

Other fuels(kl)(crude oil equivalent)
4.4

Emissions into the air
CO2 emissions(tCO2e)
938.0

NOx emissions(t)
0.8

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

601.7

0.0

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

601.7

100.0

Substances subject to the PRTR Law*
NumberClass I designatedchemical substance
nameHandling
amountEmissions
into the air

53
80
296
300

Ethylbenzene
Xylene1,2,4-trimethylbenzene
Toluene5,300.0
12,000.0
1,700.08,500.0570.0
1,300.0150.0
1,800.0

Amount of emission/discharge
Discharge Discharge into Landfill at
into public the soil at the the relevant
watersrelevant office
office
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

(Unit: kg)
Amount of transfer
Transfer
Transfer
to sewers
outside therelevant office
6.0
940.0
6.0
1,000.0
6.0
340.0
6.0
5,700.0*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

Asahi Factory 1

CSR Report 2017│Supplemental Data 3

Air
Equipment

Substance

Drying furnaces

Soot and dust
NOxRegulation
value
0.20
230

Voluntary
0.108
200

Actual value(Maximum)
0.009
48.0

*Soot and dust: g/m3N*NOx: ppm

Water discharge
Substance
Amount of discharge
pH
BOD
SS

Regulationvalue‒
5.7 - 8.7300
300

Voluntary‒
5.9 - 8.5210
210Actual value
Maximum
Mean
90.0
16.0
7.4
7.1
140.0
103.9
62.0
45.3

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Asahi Factory 2

CSR Report 2017│Supplemental Data 4

Supplemental Data 4: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Yanagisawa Manufacturing Co., Ltd.
Location
Number of employees
Business
Land area
Total floor space
Production started
Acquisition of ISO14001 certification

Yanagi-machi, Kadoma-shi, Osaka
330
Manufacture of gas equipment
20,098 m2
19,314 m2
1936
June 2004

Major production items

Gas rice cookers

Commercial-use
high-speed ovens

Commercial-use
kitchen units

Floor heating systems(hot-water mat)

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

194.8

35.9

0.1

Other fuels(kl)(crude oil equivalent)
6.3

Emissions into the air
CO2 emissions(tCO2e)1,543.0

NOx emissions(t)
1.2

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

442.5

0.0

Equipment

Substance

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

442.5

100.0

Air

BoilerBaking furnace

Soot and dust
NOx
Soot and dust

Regulation
value
0.10
150
0.10

Voluntary
0.10
150
0.10

Actual value(Maximum)0.002049.0
0.0020*Soot and dust: g/m3N*NOx: ppm

Water discharge
Substance
Amount of discharge
pH
BOD
SS

Regulation
value‒
5.0 – 9.0600
600

Voluntary‒
5.9 - 8.5300
300

Actual value
Maximum
Mean
63.7
53.0
7.3
7.0
98.0
52.7
110.0
55.1

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
(mg/l)* BOD: Biochemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Yanagisawa Manufacturing Co., Ltd. 1

CSR Report 2017│Supplemental Data 5

Supplemental Data 5: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Rinnai Technica Co., Ltd.
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Sakagawa, Kakegawa-shi, Shizuoka
603
Manufacture of gas equipment
28,610 m2
19,314 m2
1970
December 2003

Major production items:

Gas waterheaters

Gas instant-heating
hot-water heaters

Gas water heaters foroverseas market
and others

Energy use
Electricity(10,000 kWh)LP gas
(t)

313.3

500.7

Other fuels(kl)(crude oil equivalent)
15.0

Emissions into the air
CO2 emissions(tCO2e)2,722.4

NOx emissions(t)
2.4

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)

1,144.0

5.6

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

1,138.4

99.5

Water discharge
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 – 8.6
25 (20)160 (120)
50 (40)Voluntary‒
6.3 - 8.1
20 (15)20 (15)30 (20)

Actual value
Maximum
Mean
82.0
49.3
7.5
7.3
19.0
6.4
5.5
4.9
7.8
3.5

* Water discharge to: The Ohta River* Water discharge standard:River effluent standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)*( )Daily average

Rinnai Technica Co., Ltd. 1

CSR Report 2017│Supplemental Data 6

Supplemental Data 6: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

GASTAR Co., Ltd.
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Yamato-shi, Kanagawa
814
Water heater business, TES business,and Housing equipment business
17,358 m2
21,120 m2
1959
October 2001

Major production items:

Heating source forwater heaters

Water heater withbath-filling system

Japanese-stylebalance-type bathheating systems

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

325.2

64.5

15.2

Other fuels(kl)(crude oil equivalent)
2.0

Emissions into the air
CO2 emissions(tCO2e)2,695.6

NOx emissions(t)
2.1

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

618.0

0.0

Equipment

Substance

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

617.6

99.9

Air

BoilerBaking furnace

Soot and dust
NOx
Soot and dust
NOxRegulation
value
0.10
150
0.20
180

Voluntary
0.08
120
0.16
144

Actual value(Maximum)<0.001229.0<0.0014
51.0* Soot and dust: g/m3N* NOx: ppm

Water discharge; Yamato Area (Head office and Factory)
Substance
Amount of discharge
pH
BOD

Regulation
value‒
5.0 – 9.0
600

Voluntary‒
5.2 – 8.8480Actual value
Maximum
Mean
229.0
147.7
8.0
7.0
16.0
8.7

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Rinnai Technica Co., Ltd. 1

CSR Report 2017│Supplemental Data 6

Water discharge; Yamato Area (Laboratory building)
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 - 8.6
15
25
40

Voluntary‒
6.0 – 8.41220
32

Actual value
Maximum
Mean
1,108.0
355.3
8.1
7.9
5.0
5.0
5.0
5.0
5.0
5.0

* Water discharge to: The Sakai River* Water discharge standard:River discharge standard* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Rinnai Technica Co., Ltd. 2

CSR Report 2017│Supplemental Data 7

Supplemental Data 7: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

RB Controls Co., Ltd.; Head office, Kanaiwa Factory, and Tsurugi Factory
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001
certification

Head office: Kannondo-machi, Kanazawa-shi, Ishikawa
Kanaiwa Factory: Kanaiwa Higashi, Kanazawa-shi, Ishikawa
Tsurugi Factory: Oyanagi-machi, Hakusan-shi, Ishikawa
685
Manufacture of gas equipment components
Head office:3,691 m2, Kanaiwa:6,587 m2, Tsurugi: 17,636 m2
Head office:2,892 m2, Kanaiwa:5,890 m2, Tsurugi: 10,495 m2
1971
March 2006

Major production items

Electronic
control units

Bathroomwaterproof TV

High voltage
units

Bathroom LED lights
and others

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

554.4

2.5

297.5

Other fuels(kl)(crude oil equivalent)
17.2

Emissions into the air
CO2 emissions(tCO2e)3,087.7

NOx emissions(t)
2.6

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

397.0

13.8

Amount ofintermediate
processing of waste(t)
4.6

Amount of recycled
waste
(t)

Recycling
percentage
(%)

378.5

95.3

Substances subject to the PRTR Law*; Head office and Kanaiwa Factory
Number
31
186
265
448
460

Class I designated chemical
substance nameHandling
amountAntimony and its compounds
Methylene dichloride
Tetrahydromethylphthalicanhydride
Methylenebis (4,1-phenylene)
diisocyanate
Tritolyl phosphate

3,300.0
1,200.0(Unit: kg)
Amount of emission/discharge
Amount of transfer
Emissions Discharge Discharge into Landfill at Transfer toTransfer
into the air into public the soil at the the relevant
sewersoutside thewatersrelevant office
officerelevant office
0.0
0.0
0.0
0.0
0.0
3,300.0
0.0
0.0
0.0
0.0
0.0
1,200.0

18,000.0

0.0

0.0

0.0

0.0

0.0

18,000.03,400.0

0.0

0.0

0.0

0.0

0.0

0.0

3,800.0

0.0

0.0

0.0

0.0

0.0

3,800.0*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

RB Controls Co., Ltd. 1

CSR Report 2017│Supplemental Data 7

Substances subject to the PRTR Law*; Tsurugi Factory
Number186
448
460

Class I designated chemical
substance nameHandling
amountMethylene dichloride
Methylenebis (4,1-phenylene)
diisocyanate
Tritolyl phosphate

1,100.0(Unit: kg)
Amount of emission/discharge
Amount of transfer
Emissions Discharge Discharge into Landfill at Transfer toTransfer
into the air into public the soil at the the relevant sewers
outside thewatersrelevant office
officerelevant office
0.0
0.0
0.0
0.0
0.0
1,100.0

34,000.0

0.0

0.0

0.0

0.0

0.0

0.0

47,000.0

0.0

0.0

0.0

0.0

0.0

47,000.0*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

RB Controls Co., Ltd. 2

CSR Report 2017│Supplemental Data 8

Supplemental Data 8: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Rinnai Precision Co., Ltd.; Head office, Komaki Factory and Kani Factory
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001
certification

Head office and Komaki Factory: Shimobata,Oaza Honjo, Komaki-shi, Aichi
Kani Factory: Himegaoka, Kani-shi, Gifu
674
Manufacture of gas equipment components
Head office and Komaki Factory:20,303 m2
Kani Factory: 10,341 m2
Head office and Komaki Factory:20,202 m2
Kani Factory: 5,944 m2
1979
December 2005

Major production items

Gas cock partsGas valve parts

Solenoid water valve
and others

Gas control units

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas(t)

1,420.5

140.1

88.1

Other fuels(kl)(crude oil equivalent)
82.9

Emissions into the air
CO2 emissions(tCO2e)8,899.4

NOx emissions(t)
7.0

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)2,298.0

11.1

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

2,287.0

99.5

Water discharge; Head office, Komaki Factory
Substance
Amount of discharge
pH
BOD
SS

Regulationvalue‒
5.7 - 8.7300
300

Voluntary‒
6.0 - 8.4300
300

Actual value
Maximum
Mean
18.0
12.0
7.9
7.1
140.0
81.0
26.0
12.3

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Rinnai Precision Co., Ltd. 1

CSR Report 2017│Supplemental Data 8

Water discharge; Kani Factory
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 - 8.6
15
30
30

Voluntary‒
5.8 - 8.6
1530
30

Actual value
Maximum
Mean
18.0
12.0
7.5
6.9
5.0
2.0
2.4
2.4
5.0
3.0

* Water discharge to: The Kani River* Water discharge standard:River discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand (mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

Rinnai Precision Co., Ltd. 2

CSR Report 2017│Supplemental Data 9Supplemental Data 9: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

RT Engineering Co., Ltd
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Kamiike-cho, Toyota-shi, Aichi
148
Manufacture of gas equipment
and components
12,119 m2
7,026 m2
1950
March 2006

Major production items

Machined copper pipe parts

Machined stainless steel parts

Machined iron pipe parts and others

Energy use
Electricity(10,000 kWh)City gas(10,000 m3)

LP gas
(t)

213.2

13.5

4.0

Other fuels(kl)(crude oil equivalent)
19.4

Emissions into the air
CO2 emissions(tCO2e)1,163.6

NOx emissions(t)
1.0

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

559.6

5.8

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

553.7

99.0

Water discharge
Substance
Amount of discharge
pH
BOD
SS

Regulationvalue‒
5.7 - 8.7300
300

Voluntary‒
5.7 - 8.0150
150Actual value
Maximum
Mean
16.5
16.0
7.3
7.0
8.0
3.4
11.0
2.3

* Water discharge standard:
Sewer discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)

RT Engineering Co., Ltd. 1

CSR Report 2017│Supplemental Data 10

Supplemental Data 10: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Japan Ceramics Co., Ltd
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Himegaoka, Kani-shi, Gifu
90
Manufacture of gas equipment components
8,030 m2
5,756 m2
1981
January 2006

Major production items

Ceramic plates
for burners

Industrial burners

Functional coatingsand others

Energy use
Electricity(10,000 kWh)LP gas
(t)

198.6

517.5

Other fuels(kl)(crude oil equivalent)
3.6

Emissions into the air
CO2 emissions(tCO2e)2,312.3

NOx emissions(t)
2.1

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill
(t)

272.8

67.3

Amount ofintermediate
processing of waste(t)
0.0

Amount of recycled
waste
(t)

Recycling
percentage
(%)

205.5

75.3

Substances subject to the PRTR Law*
Number
53
80
300
412

Class I designatedchemical substancenameEthylbenzene
XyleneTolueneManganese and its
compounds

Handling
amount1,800.02,500.0
11,700.0(Unit: kg)
Amount of emission/discharge
Amount of transfer
Emissions Discharge Discharge into Landfill at the Transfer to Transfer outside
into the air into public the soil at the relevant officesewersthe relevant
watersrelevant office
office1,400.0
0.0
0.0
0.0
0.0
350.0
2,000.0
0.0
0.0
0.0
0.0
460.0
10,000.0
0.0
0.0
0.0
0.0
1,400.0

1,700.0

0.0

0.0

0.0

0.0

0.0

1,700.0*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

Air
Equipment

Substance

Baking furnace

Soot and dust
NOx
SOx

Regulation
value
0.125
90
0.25

Voluntary
0.125
90
0.25

Actual value(Maximum)
0.017
10.0
0.02

* Soot and dust: g/m3N* NOx: ppm* Sox: m3N/h

Japan Ceramics Co., Ltd. 1

CSR Report 2017│Supplemental Data 10

Water discharge
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 - 8.6
15 (10)160 (120)
30 (25)

Voluntary‒
5.8 - 8.6
1530
30

Actual value
Maximum
Mean
10.8
8.9
7.5
7.1
19.0※
6.5
12.0
12.0
6.0
2.9

* Water discharge to: The Kani River* Water discharge standard:River discharge standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)*( )Daily average※

Wastewater analysis detected BOD levels in excess of the pollution control agreement with Kani-shi.
We implemented measures, including steps to remove sludge, as we believed higher BOD levels was due to samples being
taken after long consecutive holidays when no inflow occurred and a build-up of sludge. Since then, water analysis has
shown water quality is within stated limits.

Japan Ceramics Co., Ltd. 2

CSR Report 2017│Supplemental Data 11

Supplemental Data 11: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Noto Tech Co., Ltd
Location
Number of employees
Business
Land area
Total floor space
Commenced operations
Acquisition of ISO14001 certification

Nakanoto-machi, Kashima-gun, Ishikawa
196
Manufacture of gas equipment components
23,152 m2
13,773 m2
1990
January 2007

Major production items

Enamel components

Gloss enamel countertop

Remote controllers forbath filling systems

Resin components

Energy use
Electricity(10,000 kWh)LP gas
(t)

226.8

886.2

Other fuels(kl)(crude oil equivalent)
6.7

Emissions into the air
CO2 emissions(tCO2e)3,533.2

NOx emissions(t)
3.2

Discharge of waste
Amount of waste
generated(t)

Amount of waste
into landfill(t)2,093.0

360.5

Amount ofintermediate
processing of waste
(t)
47.8

Substances subject to the PRTR Law*
NumberClass I designated chemical
substance nameHandling
amount

31
71
309
405

Antimony and its compounds
Ferric chloride
Nickel compounds
Boron compounds

10,800.0
4,500.01,600.0
10,600.0

Amount of recycled
waste
(t)

Recycling
percentage(%)

1,684.7

80.5(Unit: kg)
Amount of emission/discharge
Amount of transfer
Emissions Discharge Discharge into Landfill at the Transfer toTransfer
into the air into public the soil at the relevant officesewersoutside thewatersrelevant officerelevant office
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.0
0.0
0.0
0.0
850.0
0.0
260.0
0.0
0.0
0.0
6,000.0*The Class I Designated Chemical Substance regulated by Pollutant Release and Transfer Register (PRTR) Law.

Air
Equipment

Substance

Baking furnace

Soot and dust
NOxRegulation
value
0.25
180

Voluntary
0.22
160

Actual value(Maximum)<0.001
24.0* Soot and dust: g/m3N* NOx: ppm

Noto Tech Co., Ltd. 1

CSR Report 2017│Supplemental Data 11

Water discharge
Substance
Amount of discharge
pH
BOD
COD
SS

Regulationvalue‒
5.8 - 8.2
40 (30)160 (120)
40 (30)Voluntary‒
6.0 - 8.2
36 (27)140 (100)
36 (27)

Actual value
Maximum
Mean
70.0
60.0
7.1
7.0
7.0
4.0
12.0
11.0
2.0
1.8

* Water discharge to: The Nagaso River* Water discharge standard:River effluent standard* The amount of discharge: m3/day* pH: Concentration of hydrogen ions
* BOD: Biochemical oxygen demand(mg/l)* COD: Chemical oxygen demand(mg/l)* SS:
Concentration of aqueous
suspended solids (mg/l)*( )Daily average

Noto Tech Co., Ltd. 2

CSR Report 2017│Supplemental Data 12

Supplemental Data 12: Major Site Report 2017
Target period: April 1, 2016 - March 31, 2017

Techno Parts Co., Ltd.

Location

Number of employees
Business
Acquisition of Eco
action 21 certification

Ichinomiya Office: Nishiougaido Aza Toukouji,
Ichinomiya-shi, Aichi
Land area: 2,003 m2, building floor space: 1,455 m2
Ida Office: Ida-cho, Owariasahi-shi, Aichi
Land area: 4,127 m2, building floor space: 2,549 m2
Akatsuki Office: Akatsuki-cho, Seto-shi, Aichi
Land area: 33,333 m2, building floor space: 3,029 m2
Komaki Office: Oaza Mitsubuchi, Komaki-shi, Aichi
Land area: 2,611 m2, building floor space: 1,776 m2
Asahi Office: Nishiyama-cho, Owariasahi-shi, Aichi
Land area: 206.69 m2 *In Asahi Factory (assembly section)
400
Assembly and processing of components of heat-energy
appliance
August 2011

Major production items

Ichinomiya Office

Akatsuki Office

Ida Office

Komaki Office

Energy use
Electricity(10,000 kWh)City gas (13A)(10,000 m3)

LP gas
(t)

59.2

4.6

0.5

Other fuels(kl)(crude oil equivalent)
0.0

Emissions into the air
CO2 emissions(tCO2e)
328.0

NOx emissions(t)
0.2

Discharge of waste
Amount of waste
generated(t)
55.0

Techno Parts Co., Ltd. 1