Environmental and Social Report

2008Environmental and Social Report 2008

Introduction
This report is being issued as an environmental and social report, focusing on describing the Company’s compliance, relationships with employees, and social activities such as involvement with society, while taking into account its environmental
activities and corporate social responsibility.
The purpose of this report is to have better communication with our customers, shareholders, business partners, local communities, employees and other parties, as wellas to further improve ourselves.

Scope of Description and Period Covered
This report covers Sawafuji Electric Co., Ltd.’s environmental and social activities,
the results of such activities for fiscal 2007 and related efforts made until immediately
before the issue of this report.

Guidelines referred to“Environmental Report Guideline (FY2003 edition)” issued by the Ministry of the Environment

1

Contents■ Top Message .............................................................................................................................. 	 3■ Company’s Business Principles, Management Philosophy and Slogan............. 	 4■ Sun Sun (3 X 3) Action and Code of Conduct................................................................ 	 4■ Corporate Profile and Main Products................................................................................. 	 5■ Economics Reporting............................................................................................................... 	 6■ Environmental Reporting
Environmental Policy............................................................................................................. 	 7
Environmental Management............................................................................................... 	 8
Environmental Efforts in Products Development........................................................ 12
Environmental Efforts in Production Activities............................................................. 14
Environmental Efforts in Logistics Activities................................................................. 17
Environmental Communication Activities...................................................................... 17
Environmental Data................................................................................................................ 18
History of Environmental Efforts and Activities............................................................ 19■ Social Reporting
Compliance................................................................................................................................ 20
For our Customers.................................................................................................................. 21
Together with our Employees............................................................................................. 22
Together with our Suppliers................................................................................................ 25
Together with Local Communities.................................................................................... 26

Sawafuji Electric Garden
Bower overlooked from thesecond floor of the head officebuilding

2

Message fromthe Top Management

Aiming to contribute to a sustainable society
and improve the global environment
Sawafuji Electric Co., Ltd. is a company with a long history.
This year marks the 100th anniversary since the foundation of the Company in 1908, and the74th anniversary since its renaming to the present name in 1934.
In 1960, the Company established its principles, “Let’s contribute to society by fulfilling our
duty to our customers and keeping our faith with them,” stressing the importance of CSR.
Under such foresighted philosophy, the Company has implemented management while giving
the highest priority to compliance with laws, regulations and social standards, coexistencewith customers, suppliers and local communities, and consideration of the global environment.
Of the main products that Sawafuji Electric develops, manufactures and sells, we are gratefulthat electrical equipment for large vehicles, portable generators, and onboard refrigerators areused by customers in more than 100 countries.

August 2008
President and Representative Director,
In full charge of environmental protection
Sawafuji Electric Co., Ltd.
Kiyoshi Takada

Overseas, the Company has production and sales subsidiaries in Australia and the U.K., andsales and service bases around the world.
Under such a global management environment, the Company aims to be an Earth-friendly
company that is trusted by society and customers in the next era. In line with this, the Company clarified “what it wants to become in five years,” and to realize that, we set targets andformulated an action plan under “Sawafuji Vision 2012.”
To achieve the said targets and reform each employee’s consciousness, the Company
launched activities, under the name of “Sun Sun (3 X 3) Action,” under which the Company
hopes all employees will engage in valuable and satisfying work; and individuals, workplaces
and the Company will continue to shine with great brilliance.
Today, the management stance that Sawafuji Electric should take toward global development,
production and sales activities is a forward-looking response to issues concerning the global
environment, the largest concern shared throughout the world.
In order to reduce CO2 emissions, Sawafuji Electric has been tackling the challenge of using
natural energy and clean energy, and introduced cogeneration and photovoltaic power generation systems.
Sawafuji Electric will continue to pursue its management philosophy “keeping nature clean.”To this end, the Company will promote technical development and production activities thatare friendly to the global environment, and all employees will do their utmost to conduct
such activities with lofty aspirations and enthusiasm. By making these efforts, we expect theCompany will become an entity that can respond to the needs of communities and customers
around the world, contribute to them and be loved by them.
We sincerely ask for your continuous understanding and encouragement.

3

Company’s Business Principles, Management Philosophy and Slogan
Business Principles
1. Let’s push ahead with research, improve technologies and leap forward brilliantly.
2. Let’s fulfill our duty to customers and keep our faith with them, and contribute to society.
3. Let’s establish an even more comfortable workplace through cooperation and mutual trust between employee
and management.

Management Philosophy
Sawafuji Electric will manufacture good products, fulfill its corporate social responsibility and provide prosperity
to all parties concerned.
* Making an impression on customers* Keeping nature clean* Provide prosperity to persons involved in the Company’s business(revised in April 2001)

Slogan (ﬁscal 2008)
To realize Sawafuji Vision 2012, make a unified effort toward revolution with courage!
“No growth in Sawafuji Electric without revolution”

Sun Sun (3 X 3) Action and Code of Conduct
Sun Sun (3 X 3) Action

Code of Conduct (ADSL)

Sawafuji Sun Sun (3 X 3) Action

Code of Conduct (ADSL)

Three parties (executive officers, managers andemployees) under a unified effort

1. Active

For three parties(the Company, workplace and individuals)

2. Dynamic

Implement three activities
Three pillars for activities:
1. FI activities (“Find” and “Identify” issues (or treasures))
2. KMKM activities (Decide, follow, record and monitor)
3. KRe activities (Review, renew and refresh what has
been decided.)

3. Speedy
4. Leadership4

Corporate Proﬁle and Main Products

Corporate ProﬁleCompany name:
Sawafuji Electric Co., Ltd.
Products:
The Company develops, manufactures and sells mainly the following products.
Electrical equipment:
Electrical equipment for diesel engine trucks and buses (starters, alternators and retarders),
electrical equipment for general and marine use engine, and small DC motors for hydraulic machines
Generators:
Portable engine generators and generators for them
Refrigerators:
Electric refrigerators for various vehicles and marine use
Ofﬁces:Headquarter and Nitta Plant:
3 Nittahayakawa-cho, Ota-shi, Gunma 370-0344, Japan
Tel : +81-276-56-7111 (main)
Fax: +81-276-56-6413
Tokyo Office:2-51-13 Ikebukuro, Toshima-ku, Tokyo 171-0014, Japan
Tel : +81-3-5391-1221 (main)
Fax: +81-3-5391-1228
Established:
June 10, 1934
Representative:
Kiyoshi Takada
President and Representative Director

Main ProductsElectrical equipment for diesel engine trucks and buses

Starters

Portable engine generators

Generators for outdoor-use
electric equipment

Alternators

DC motors

DC motors for outboard engines

Refrigerators

Refrigerators for outdoor use that can be used in vehicles

5

Report on Economics Potential

Highlights of Consolidated Financial Results
Trends in Net Sales

Trends in Net Income per Share(Yen)(Million yen)(fiscal year)(fiscal year)

Trends in Ordinary Income

Trends in Net Income(Million yen)

(Million yen)(fiscal year)(fiscal year)

Head officebuilding

6

Environmental Reporting
Environmental Policy

Established: May 1997
Revised: June 2005
(1) All the Company’s sections engaged in development and manufacture of products and provision of services
shall strive to appropriately reduce environmental impact in all their business activities, for example by promoting conservation of natural resources, energy and reducing waste.
(2) The Company shall strive to continuously improve the environment and prevent any contamination.
(3) The Company shall comply with environmental laws, regulations and other requirements, and shall be responsible for administering business activities based on its voluntary management standards.
(4) To carry out this policy, the Company shall establish the purpose and objectives of environmental protection, implement related activities in a carefully planned way, review the contents of such activities on its own,
receive audits by third parties, and confirm the results.
(5) The Company shall document this policy, implement and maintain this policy under the environment management system, and make this policy known to all people who work in and for its organization. In addition,
the Company shall strive to provide education and implement enlightenment activities in order to increasesuch people’s awareness of environmental conservation.
(6) The Company shall contribute to environmental conservation in local communities as much as possible, andstrive to live together with local communities.
(7) The Company shall disclose this policy and make it available to the public.

Kiyoshi Takada
President and Representative Director,
Sawafuji Electric Co., Ltd

7

Environmental Reporting

Environmental Management

Environmental Management Promotion Structure
In order to promote environmental conservation ac-

The Company has also established special commit-

tivities, Sawafuji Electric has established a company-

tees under the Environment Committee to promotewide organization called the “Environment Commit-

environmental conservation activities in respectivetee” under the chairmanship of the President. This

fields.

committee determines basic policies and promotes
various environmental activities.

President

Environment
Committee

Environment TechnicalCommittee

Production Environment
Committee

Social Activities Promotion
Committee

Affiliates Environment
Committee- To promote environmental
conservation from theperspective of product andtechnology development- To promote LCA- To devise measures forhandling substances that affectthe environment- Environmental conservation in
production activities- Promotion of environmental
events- Promotion of social contribution
activities- Support for voluntary activities- Promotion of environmental
activities by affiliates

Operations of Environmental Management System
Since it acquired the ISO 14001 Environmental

Environment audits

Management System certificate in 1997, Sawafuji

To check whether its environmental management

Electric has continuously improved operations of thesystem functions appropriately, Sawafuji Electric con-environmental management system by conducting

ducts internal audits and undergoes external exami-

internal environment audits and undergoing external

nations by ISO examination agencies, on a regularexaminations, on a regular basis every year.

basis every year.
Fiscal 2007 marked the 10th anniversary of obtaining ISO 14001 certification. The Company was ISO
14001 certified again after undergoing the examination for renewal by Japan Quality Assurance Organization.

1.
Environmental
policy2. Planning

ISO 14001
Environmental
Management
System6.
Continued
improvement
5.
Review by
management- Environmental aspect- Legal and other requirement
conditions- Purpose and objectives- Environmental management
program

3. Implementation and operations- System and responsibilities- Training, awareness and ability- Communication- Documents on the environmental
management system and their retention- Operational management- Preparation for a state of emergency andcoping with it

4. Inspection and remedy- Monitoring and measuring- Remedy measures in the case of
inappropriateness and preventive
measures- Recording- Environmental management
system audits

ISO 14001
Management System Registration
Document8

Allocated Resources and Environmental Impact of Emissions in Business Activities
Energy emitted by business activities of Sawafuji

In its environmental protection activities, the Com-

Electric and its products affect the environment in thepany identifies the processes that have an environ-form of CO2 and waste.

mental impact and reduces such impact.
Development anddesign- Increasing therecycling rate
- Reducing productmass

Materials and partsprocurement

Recycling anddisposal- Rebuilt service- Recycling of home
appliances- Reducing substancesthat haveenvironmental impact

Sawafuji Electric willcontinue environmental
conservation efforts andkeep nature clean.
Production- Energy-saving
activities- Reducing wastes- Means for energy
savingUse of products- Saving energy

Logistics- Fuel-efficient driving- Clean energy vehicles

Targets and Results
The following are targets and results for fiscal 2007.

Item

Policy for
efforts

Targets

Target Results
fiscal for fiscal
year
2007

Active promotion of
measures for reducing
CO2 emissions in
production activities

To reduce the ratio of CO2
emissions to net sales by 22
percent from fiscal 1990 levels

2010

20%
reducedMiniaturization of
products and savingenergy in the production
development phase

To reduce CO2 emissions in
manufacturing and operatingproducts by 25 percent from fiscal
1990 levels

2010

20%
reducedSubstituting four ELV
Directive substancesand six RoHS Directive
substances for othersubstances

To totally abolish four ELV Directive
substances and six RoHS Directive
substances

2008

Continued

Reduction in emissions of To reduce the ratio of PRTR-listed
PRTR-listed substances substances to net sales by 30
in production activities
percent from fiscal 2001 levels

2010

4%
reducedWaste reduction andenergy saving

Promotion of
economizing resourcesin production activities

To reduce the ratio of waste
dumping to net sales by 35 percent
from fiscal 2001 levels

2010

42%
reducedWater resource
economization

Promotion of reducing
water usage inproduction activities

To reduce the ratio of water usage
to net sales by 37 percent fromfiscal 2001 levels

2010

46%
reducedGlobal warming
prevention

Control and reduce
substances having anenvironmental impact

9

Environmental Reporting

Environmental Education and Enlightenment
To have the environment management system ef-

support for training of those who want to obtain

fectively function, Sawafuji Electric provides environ-

qualifications to engage in special operations. Fur-

mental education for all its employees and workers

thermore, the Company is continuously providingof companies which operate on the premises. The

training for dealing with emergencies and preventing

Company also has every employee carry an environ-environmental pollution.

ment card that describes the environmental policy aswell as his or her own objectives, targets and actions, aiming for every employee to conduct businessactivities while being highly aware of environmental
conservation. The Company commends offices fortheir improvement of energy and resources-saving
measures during its monthly energy-saving campaign
held in February every year, aiming to enlighten its
employees. In addition, the Company provides

Training for dealing with a state of emergency (oil spill)

Environmental Accidents and Complaints
To support its production activities at plants, Sawafuji

accidents, by identifying environmental risks, reas-

Electric operates a special high-voltage transformer

sessing such risks, and providing training for dealing

substation, a cogeneration system for independent

with any possible emergencies to prevent such emer-

power generation, boilers, water supply and drainage

gencies from affecting the environment.

systems, environment-related equipment such as

During fiscal 2007, there were no environmental ac-

waste storage facilities, and other apparatus, as wellcidents and complaints.

as over 2,000 manufacturing facilities. The Company
complies with related laws, regulations, prefecturalordinances, and the Environmental Pollution Prevention Agreement with Ota City. It also carries out
monitoring regularly, with respect to substances thatare generated by operating such facilities and equipment and that affect the environment. The Company
is also striving to prevent any environmental pollution

10

Environment Accounting
The Company has computed environmental con-

The Company put in management resources inservation costs and effects based on “Guidelines forcosts relating to environment conservation, such as

Identifying and Disclosing Environmental Conserva-

research and development, business investment,tion Costs” issued by the Ministry of the Environment.

recycling activities, and continuously promotes thestrengthening of environmental activities.
(Unit: Million yen; “-” represents costs below one million yen)

Environmental conservation costs
Item
Business area costs
Upstream and downstream
costs

Costs

Costs for preventing environmental pollution such as air pollution, water contamination
Costs for conserving the global environment through energy saving and other measures
Costs for recycling resources through waste recycling and appropriate disposal of waste

46

Costs for recycling, collecting and appropriately disposing of products
Additional costs for reducing environmental impacts through green purchase and othermeasures1

Costs for operating and maintaining the environment management system

Administration costs

Costs for monitoring environmental impact

R&D costs for environmentally conscious products
R&D costs for curtailing environmental impact

R&D costs

Social activity costs
Environmental remediation costs

Costs for contribution to society through environmental activities in local communities andother measures

Resources saving

1

Costs for restoring the nature

-

Total

374

(Unit: Million yen)

Item

Energy saving

288

Costs for supporting environmental improvement made through tree planting,beautification and other measures

Environmental conservation effects

Revenue38

Costs for disclosing environmental information and providing employees withenvironmental training

Effects

Gains from recycle-related sales

76

Improvement effects from the use of cogeneration systems and the implementation of energysaving activities

11

Improvement effects from the implementation of resources saving and recycling activities

4
91

Total

Sawafuji loves the Earth and is eco-friendly
Solar generation system (100 kW)

11Environmental Reporting

Environmental Efforts in Product Development

Prevention of Global Warming (reducing CO2 emissions)
Sawafuji Electric aims to develop products with lesson energy saving, and to this end it is continuously

environmental impact by tackling advanced technolo-

improving the efficiency of its products in operation.

gies, materials and methods. As part of its efforts toRefrigerator Generator

reduce product mass, the Company is continuously

Electrical equipment

miniaturizing and lightening electrical equipment andgenerators. By reducing product mass, CO2 emissions can be slashed when raw materials are manufactured and when products are assembled or manufactured at the Company.
In developing refrigerators, the Company focuses

results(fiscal year)
targets

Reducing Substances having an Environmental Impact
Substitute chloroﬂuorocarbons

Asbestos

In its refrigerators, Sawafuji Electric

Sawafuji Electric has used com-

Lead, mercury, hexavalent chromium,cadmium, and brominated substances areprohibitedhas completed switching to substi-

mutators, which contain asbestos,In order to meet the request oftute chlorofluorocarbons that do not

in its starters and DC motors since

our customers, Sawafuji Electric

deplete the ozone layer. HFC-134a

1979. However, it began to switch

is working on totally abolishingis used as a coolant, and HFC-

to asbestos-free components intargeted substances from all of its

245fa and HFC-365mfc are used

1995, and completed the abolition

products by setting a deadline foras insulation materials. Currently,

of asbestos in 1998.

each substance, in accordance

the Company is conducting R&D

with Europe’s ELV and RoHS direc-

on switching to non- chlorofluoro-

tives, and the voluntary regulations

carbon coolants.

of Japan Automobile Manufacturers
Association, Inc.

Development and Design of Environmentally Conscious Products
Reducing exhaust gas and fuel consumption

Response to 3R (reduce, reuse and recycle) program

Motors are increasingly used as a device to slash exhaust

To thoroughly promote its 3R program, Sawafuji Elec-gas from diesel commercial vehicles. Meanwhile, hybrid

tric has introduced resin quality marking as technicalsystems are effective in lowering fuel consumption. Electric-

standards.

powered auxiliary machinery also contributes to cutting fuel

The Company is also striving to improve the yield

consumption because such machinery can be operated only

rate of materials to cut CO2 emissions in the produc-

when needed. DC brushless motors are promising as motors

tion stage.

for electric-powered auxiliary machinery from the perspec-

3Rs
Keyword to building a recycling-based society where theenvironment and economics are compatible with each other.
1. Reduce: Reducing the amount of waste
2. Reuse: Using recyclable resources as products or parts
3. Recycle: Using recyclable resources as raw materials

tives of controllability and lifespan, just like the case of theabove-mentioned device to slash exhaust gas.
Sawafuji Electric is actively conducting R&D on the use of
hybrid systems and electric-powered auxiliary machinery for

LCA
LCA (life cycle assessment) is a method for assessing theenvironmental impact of a product throughout its lifespan.
Such environmental impact is gauged comprehensively over allphases of a product’s life cycle, from production to transport,
sales, use, disposal and reuse. The results of LCA are
sometimes represented by the amount of CO2 emissions.

construction and industrial machinery. Against this backdrop,
the Company expects electric power consumption to increase sharply from now on, and is developing and designing highly-efficient and high-power alternators.

12Environmentally Conscious Products
Sawafuji Electric’s products are used for trucks andbuses and contribute to reducing their CO2 emissions
and environmental impact substances.

Control unit for idling stop
Compliant with Europe’s ELV

Onboard refrigerator
Compliant with Europe’s ELV
DC motor for the wing
Compliant with
Europe’s ELVLight, high-power alternator
Compliant with Europe’s ELVLight, high-power starter for
idling stop
Compliant with Europe’s ELV

High-efficiency multipolar
generator
Compliant with Europe’s
RoHS directive

Product that uses substitutechlorofluorocarbons for coolants andinsulation materials
Compliant with Europe’s RoHS directive

13

DC motor for cab tilting
Compliant with Europe’s ELV

DC motor for outboard engines
Compliant with Europe’s ELVEnvironmental Reporting

Environmental Efforts in Production Activities

Prevention of Global Warming (reducing CO2 emission)

Reduction of CO2 Emissions by a Photovoltaic Power Generation System

Sawafuji Electric is implementing global warming

In February 2007, Sawafuji Electric began to operate

preventive measures with the goal of “reducing CO2

a 100 kW photovoltaic power generation system on

emissions by 22 percent from fiscal 1990 levels bya full-scale basis. This system enabled the Company
to slash CO2 emissions by 43 tons during the period

the end of fiscal 2010.”

between April 2007 and March 2008, which is equiv-

All the employees, highly aware of energy saving,are promoting a reduction in the electricity con-alent to 0.7 percent of the average annual amount ofsumed by lighting fixtures and OA equipment, ef-

CO2 emissions.

ficient operations of facilities and equipment, andless air leakage. Staff at the plant are also promoting
energy saving by recording daily power consumption
data from the electric meter installed in each section
within the plant, while checking the effects of each
workplace’s activities to improve energy saving.

Solar panels

In fiscal 2007, the Company reduced the amount of
CO2 emissions per 1-million-yen sales by 20 percent
compared with fiscal 1990.
CO2 emissions per 1-million-yen sales

Power Generation
Results forJune 2008 [1]Amount of solar radiation
Temperature
Generated energy

Today’s generated
energy: 219 kWh(fiscal year)
Results

Photovoltaic power generation monitor

TargetReducing Waste and Saving Resources
Sawafuji Electric is making efforts to reduce the

The Company established a recycling center in fiscal

amount of waste it produces with the goal of “slashing2007.

36 percent from fiscal 2001 levels by the end of fiscal

The amount of waste per 1-million-yen sales for2010.”

fiscal 2007 decreased 42 percent from fiscal 2001.

In fiscal 2000, the Company achieved zero landfill

The Company will continue to reduce the amount ofwaste, recycling all its waste.

waste by further minutely subdividing such waste at
the source.

CO2 emissions per 1-million-yen sales(fiscal year)
Results

Recycling center

Target14

Efforts to Protect the Soil and Ground Water
Sawafuji Electric previously used 1.1.1-trichloro-

The Company is continuously monitoring the effects

ethane, but totally abolished its use in 1995, andof 1.1-dichloroethylene on the soil outside the plantsince then it has investigated the state of pollution ofsite by constructing observation wells at the border ofsoil and ground water.

the plant site. Levels of 1.1-dichloroethylene are far

According to the above investigation, we have not de-

below the environmental standard value.

tected any 1.1.1-trichloroethane at the moment. How-

We will continue such monitoring.

ever, we found that the level of 1.1-dichloroethylene,
which is produced as a result of 1.1.1-trichloroethane
resolving, at a place within the plant site exceeds
the environmental standard value. In response, theCompany has implemented purification measures,in which gas in the soil on the site is sucked out andremoved using activated charcoal, since 1999.

Economization of Water Resources
Sawafuji Electric is striving to “reduce the total

Water consumption per 1-million-yen sales

amount of water used at plants by 37 percent fromfiscal 2001 levels by fiscal 2010.”
In fiscal 2007, such water consumption per 1-millionyen sales dropped 46 percent compared with fiscal
2001.
The Company reduces its use of water by reusing
water purified at a wastewater-treatment plant as(fiscal year)

cooling water for plants.
Results

TargetControl of Chemical Substances
Reducing emissions of chemical substances subject to PRTR

Emission of chemical substances subject to
PRTR per 1-million-yen sales

Sawafuji Electric is making efforts to “reduce theemissions of chemical substances subject to PRTR
by 30 percent from fiscal 2001 levels by the end of
fiscal 2010.” In fiscal 2007, emissions of such chemical substances per 1-million-yen sales dropped 4
percent compared with fiscal 2001. From now on, theCompany will endeavor to reduce the emissions of(fiscal year)

such chemical substances by further reusing paintResults

diluents.
Storage of PCB (polychlorinated biphenyl)

Target

PRTR
PRTR (Pollutant Release and Transfer Register) is a systemfor collecting, compiling and publishing data on various typesof hazardous chemical substances regarding their sources,
the quantity discharged into the environment and whether they
were contained in waste transferred off-site.

As of the end of fiscal 2007, we held five condensers
that contain PCB as insulating oil, which we appropriately manage.

15

Environmental Reporting

Reduction of VOC
Sawafuji Electric is reducing the amount of thinner

VOC
VOC (volatile organic compounds) is a general term for volatileorganic chemical compounds.
VOCs are organic compounds that are volatile and become
vapor in the atmosphere, and include various substances suchas toluene, xylene and ethyl acetate.

by extracting thinner from used paint in the painting
process and reusing it for other purposes.
The Company also abolished the use of styrene byswitching some impregnating varnish to solvent-freetype.

Efforts during the Energy-Saving Month Campaign
As part of our environmental efforts in production
activities, Sawafuji Electric promotes energy andCompany-wide Energy-Saving
Month Campaign for 2008

resources saving under the “Company-wide EnergySaving Month Campaign.”
In the Company-wide Energy-Saving Month Campaign for 2008, highest and excellence awards were
presented to the following among many candidate
improvement measures.
Highest Awardin the direct division

Highest Award in theindirect division

Improvement in drying paints formotor dip and prevention of farinfrared ray escape

Reduction in loss caused by spoiled
work of armature by changing themethod for modifying starter armaturebalancing machines

Excellence Award in
the direct division

Excellence Award in
the indirect division

Reduction of power consumption
through the introduction of far-infrared
heater for impregnated equipment

Reduction of gas consumption throughimprovement of a noodle boilingmachine16

Environmental Efforts in Logistics Activities

Reduction of CO2 Emissions in Product Transport
Sawafuji Electric is striving to “reduce CO2 emissions

CO2 emissions in product transport per 1-million-yen sales

in product transport by 45 percent from fiscal 2001
levels by the end of fiscal 2010.”
In fiscal 2007, the Company slashed CO2 emissionsin product transport per 1-million-yen sales by 49
percent compared with fiscal 2001, through switching
to low fuel-consumption vehicles and energy-saving(fiscal year)

driving.
Results

TargetReducing the Use of Packaging Materials
Sawafuji Electric is endeavoring to “reduce the use

Use of packaging materials per 1-million-yen salesof packaging materials when transporting finishedproducts and spare parts by 43 percent from fiscal
2001 levels by the end of fiscal 2010.”
In fiscal 2007, the Company cut down the use of
packaging materials per 1-million-yen sales by 46
percent from fiscal 2001 levels.

(fiscal year)
Results

Environmental Communication Activities

Environmental Communication
Sawafuji Electric has issued environmental reports
hoping that its environmental activities will be widely
understood among people.
To gain the understanding of local residents about
its environmental activities, the Company has participated in environment festivals hosted by local governments every year. Our corner has been always
popular among local people and various organizations.

Environment festival hosted by a local government
in November 200717

TargetEnvironmental Reporting

Environmental Data

Atmosphere
In addition to conventional boilers for heating sys-

This operation meets the Air Pollution Prevention

tems, a cogeneration system started operations inLaw, prefectural ordinances, and the Environmental

January 2003.

Pollution Prevention Agreement with Ota City.
Facility

Item

Unit

Regulation value

Measured value

NOx

ppm

180

68

SOx

K value

17.5

below 0.5

Soot and dustg / m3N

0.1

below 0.005

NOx

ppm

950

420

SOx

K value

17.5

below 0.5

Soot and dustg / m3N

0.1

below 0.005

Boiler (kerosene)

Cogeneration (fuel oil A)

Water Quality
Water used within the plant is treated at wastewater-

Air Pollution Prevention Law, prefectural ordinances,

treatment plants, and purified water is discharged

and the Environmental Pollution Prevention Agree-

into the Hayakawa River. This discharge meets thement with Ota City.

Item

Unit

Regulation value

Maximum value

Minimum valuePH-

6.5 - 8.0

7.3

6.9

BOD

mg / l10 or less5

below 1COD

mg / l10 or less

7.3

2.2

SS

mg / l15 or less2

below 1

NH oilmg / l3 or less1

below 1

Phenolmg / l0.2 or lessbelow 0.025

below 0.025

Copper content

mg / l1 or lessbelow 0.02

below 0.02

Zinc content

mg / l1 or less

0.93

0.19

Soluble iron content

mg / l4 or less0.03

below 0.02

Soluble manganese content

mg / l5 or less0.03

below 0.01

Chrome content

mg / l0.2 or lessbelow 0.02

below 0.02

Fluorine compoundmg / l1.5 or less0.38

below 0.2

Total phosphorus

mg / l8 or less

1.8

0.61

Total nitrogenmg / l60 or less

16

7.0

Lead content

mg / l１ or lessbelow 0.04

below 0.04

Measures for PRTR
( Unit: ton / year )AmountSubstance namehandledAmount discharged
Air

Amount transferred

Water area

Waste

Public sewerage

RemovalRecycleAmount ofAmount removed consumption

Styrene

28.1

28.1

0.0

0.0

0.0

0.0

0.0

0.0

Xylene

13.7

7.8

0.0

0.1

0.0

0.0

0.8

4.9

Toluene

15.8

8.4

0.0

0.9

0.0

0.0

0.1

6.2

Ethylbenzene

3.0

1.8

0.0

0.0

0.0

0.0

0.1

0.9

Lead compound

1.5

0.0

0.0

0.0

0.0

0.1

0.0

1.3

- Amount handled: 1 ton/year or more (500 kg/year or more for Class 1 Specified Chemical Substance).
- Amount removed: Amount removed through incineration treatment, decomposition treatment, etc.
- Amount of consumption: Amount of substances that have changed to other substances through reactions, or amount of substancesthat are contained in products transferred off-site or transferred off-site together with products.

18

Environmental Reporting

History of Environmental Efforts and Activities
1975 :

Completes construction of a new plant.
Establishes industrial wastewater treatment facility (coagulating sedimentation method).
Establishes domestic wastewater treatment facility (activated sludge combined process method).
Establishes rainwater (oil) separating tank.

1976 :

Moves to Nitta Plant, which starts operations.
Concludes Environmental Pollution Prevention Agreement with Nitta-cho (Note).
Establishes smokeless incinerator.

1984 :

Sets up Energy-Saving Committee.
Launches company-wide energy-saving activities.

1993: : Begins activities of Production Environment Committee of Hino Motors Ltd. affiliate.
Totally abolishes specified chlorofluorocarbon for refrigerator insulating materials (CFC11  HCFC-141b).
1994 :

Sets up Environment Committee.
Totally abolishes specified chlorofluorocarbon for refrigerator coolants (CFC12  HFC-134a).
Totally abolishes ethane for parts cleaning (Trichloroethane  Alkali cleaning).

1995 :

Totally abolishes specified chlorofluorocarbon for parts cleaning (CFC113  Alkali cleaning).
Starts removal of the plant ceiling’s asbestos insulating materials (continues until 1998).
Formulates Environmental Conservation Action Plan.
Reorganizes Environment Committee.

1996 :

Launches ISO 14001 Certification Acquisition Promotion Committee, and starts preparation for its
acquisition.

1997 :

Acquires ISO 14001 certification.

1998 :Starts energy and resources saving efforts.
Begins efforts to reduce mass of products developed.

1999 :
2000 :Starts waste zero emission efforts.
Begins efforts to reduce unit requirement of CO2 emissions.

2001 :

Achieves non-landfill waste.

2002 :

Abolishes incinerators.

2003 :Starts operations of the cogeneration system.
Launches recycling of cups and containers for beverage vending machines.
Totally abolishes specified chlorofluorocarbon for refrigerator insulating materials(HCFC-141b  HFC-245fa and HFC-365mfc).

2004 :

Introduces high efficiency air compressors.

2005 :

Installs air-supply valves for each plant area.

2006 :

Begins a study for introducing a photovoltaic generation system.

2007 :Starts operations of the photovoltaic generation system.

2008 :

Replaces office buildings’ lighting fixtures with energy-saving type.

(Note) Nitta-cho merges with Ota City in March 2005.

19

ng

Social Reporting

Social Reporting
Compliance

Ethics Principles; toward Establishment of a Workplace Culture
Aiming to establish a structure where no infringe-

This Corporate Ethics Principles is publicized onment of laws and regulations occurs, Sawafuji Elec-

Sawafuji Electric’s website.

tric enacted and implemented the “Corporate Ethics
Principles,” which provides for fundamental principles
that officers and employees should comply with invarious corporate activities.
Under these ethics principles, the Company is fostering and establishing corporate and workplacecultures through its business activities, in which each
Sawafuji Electric website

employee’s initiative and creativity are stressed.

Compliance Guide Book
To ensure that the Corporate Ethics Principles takes

Message from the Top Management

hold in-house, Sawafuji Electric prepared the book-

Sawafuji Electric Co., Ltd. is a company with a long history,
founded in 1934.
In 1960, the Company established its principles, “Let’scontribute to society by fulfilling our duty to our customers
and keeping our faith with them.” Thus, we have
implemented management with the emphasis on “corporatesocial responsibility” from early stages.

Compliance
Guide Book

let “Compliance Guide Book,” which explains briefly
about a further specific check of corporate ethics. In

Of the main products that Sawafuji develops, manufacturesand sells, electric equipment, generators and refrigerators
are exported to more than 100 countries.
Thus, the Company operates its business maintaining
deep, trusting relationships with customers worldwide, local
communities, business partners and public institutions, aswell as a deep relationship with the global environment.

April 2008, the Company distributed this booklet to all
employees and provided them with related education.

However, once scandals, such as infringement of laws,
regulations or ethics, occur in the Company, the trust that it
has earned over years will be lost immediately.
In this case, not only the Company will undergo social
sanctions, but also even its employees, their families, andour business partners will be damaged substantially.

We have also released a detailed version of thisbooklet on the intranet so that our employees can

I would like to ask the three parties of executive officers,
managers and employees to act in accordance with the
KMKM spirit, the basis of “Sun Sun Action.” Here, “K,” “M,”“K” and “M” mean “deciding firmly,” “never failing to follow
what has been decided,” “recording” and “monitoring,”
respectively.

read it anytime.

By doing the above, Sawafuji Electric will be able to continue
shining brilliantly in the world as a company that contributes
to society and is loved by customers.

Compliance Guide Book

April 2008
Kiyoshi Takada
President and Representative Director,
Sawafuji Electric Co., Ltd.

Message from Top Management

Installation of Corporate Ethics Help Line
Sawafuji Electric is monitoring unlawful and antisocial“Corporate Ethics Help Line” Structureacts by its employees and striving to prevent suchacts. As part of such efforts, the Company in Octo-

Board of Directors

ber 2004 formulated the “Corporate Ethics Help Line

Decision on measures

Reporting
ReportingRules,” which provides for the establishment of a

President

system that allows the persons involved to report andReportingInstructions on
measuresInternal Control Committee

engage in consultation regarding any act that is in

Instructions
on measuresviolation of or is suspected of violating relevant laws,

Reportingregulations or the “Corporate Ethics Principles.”Director in charge of general affairs
General Manager of General Affairs
and Personnel Department

We also do our utmost to protect related information

Notificationof measuresand personal information toReportingkeep those who report on

Contact point

Notificationof measures

acts from being placed at a

Reportingdisadvantage.

Reporting

LawyerNotificationof measures

Person who reports or consults

20

Instructions
on measures
ReportingContact point

General Affairs andPersonnel Department(Nurse)and consult about the said

Reporting

ReportingFor our Customers

Quality Assurance System

Efforts for ﬁscal 2008

Sawafuji Electric, which has established a quality
assurance system based on ISO 9001 certification

Quality target:

for quality management systems (acquired by the“Giving top priority to customer satisfaction, Sawafuji
Electric aims to realize one-digit higher, but matterof-course, quality.”

Company in 1996), is always implementing quality
improvement activities.

--- Quality indicators: from the world of % reallyto the world of ppm ---- Introduction of quality-by-design approach from theplanning and design phases- Quality control of parts incorporated into products- Product inspection- Quality assurance system thatmanages information on quality
from customers- Provision of after-sales service
to customers, particularly major
customers

Basic policy:

Sawafuji Electric will “identify its weak points andmake company-wide efforts to reform them, withquality as the top priority of corporate management.”
For key issues such as:- Identification of weak points in terms of quality andreform of them on a company-wide basis; and- In-house completion of quality improvement by theentire personnel

As described above, our quality
assurance system is operated by

The Company will assign Directors as the people responsible for
implementation and make company-wide efforts to supply productsthat satisfy our customers.

the whole company.
ISO 9001
Management System Registration Document

After-sales Service Structure
Giving the highest priority to customer satisfaction,

Hokkaido
Fukuda Parts
and its 15 agencies

Sawafuji Electric operates the Sawafuji service network, consisting of 261 companies, which provides
Shinetsu
Nagasaka Baroque Co., Ltd.
and its 12 agencies

speedy service to our customers in trouble round theclock, seven days a week.

Hokuriku
Hokuriku Office, Toyotsu
Auto Service Co., Ltd.
and its 16 agencies

The Company also holds technology seminars
and provides services while going round the

TohokuSendai Branch, EikoElectric Industrial Co., Ltd.
and its 31 agencies

country, aiming to improve
Chugoku
Nakayoshi Engineeringand its 28 agencies

its ability to handle consultations and complaints from ourcustomers, enhance its service

KyushuNachi Shokai
and its 27 agencies

Kanto
Eiko Electric IndustrialCo., Ltd.
and its 61 agencies

system and raise its service
quality.
Shikoku
Shikoku Densokiki
and its 11 agencies

Kinki
Hanshin Branch, Kansai
Densokiki Co., Ltd.
and its 30 agencies

Chubu
Toyotsu Auto Service Co., Ltd.
and its 30 agencies

Structure for Handling Product Defects
If there are any product defects, the Quality Assur-

market-related measures regarding defective prod-

ance Department collects information, and if neces-ucts, the Company will notify its customers and relatedsary, conducts a field investigation, recall and repair,agencies of the matter, while replacing, repairing, andwhile relevant departments improve such products.

supplementing the relevant products or otherwise

When determining that it is necessary to take somehandling the matter.

21

社会性報告Together with our Employees

Personnel System and Training
Overview of the personnel system

Training and enlightenment

Positioning personnel training as its core, Sawafuji Electric
strives to revitalize its organization, while considering individual employees’ initiative and creativity important. The
Company also makes a strong effort to develop employees’ abilities, hoping this will help them demonstrate theirinitiative and creativity in its business activities. Furthermore, it aims to build a system under which employee
performance is assessed fairly and impartially.

In order that its employees can demonstrate their ability in their positions, Sawafuji Electric formulates training
plans every year by rank and function, and holds training
for new employees, experienced and able employees as
leaders of work, new managers and supervisors.
For self-enlightenment of its employees, the Company
also implements education, through various education
courses by correspondence, meetings for presenting
research papers, and lectures.

Qualification system

Outline of
personnel system

Evaluation
Evaluation
system

Evaluation

Personnel training

Training

Education
Results
systemPersonnel who live up to
corporate expectations

Training
Treatment
Treatment
Wage system

Employment
Promoting the employment of disabled people

Reemployment system

Sawafuji Electric provides a work environment where disabled people can work without anxiety, and employs suchpeople in accordance with the Disabled Persons Employment Promotion Law. In fiscal 2007, the Company’s ratioof disabled people employment was 2.29 percent, exceeding the statutory employment ratio of 1.8 percent. For thisfiscal year, we will further promote employment of disabled
people.

Currently in Japan, employees are aging while the number of younger workers is decreasing rapidly. Against
this backdrop, Sawafuji Electric has introduced a retiree
reemployment system, aiming to provide a workplace
where eager-to-work elderly people can demonstrate theirknowledge, skills and experience to the maximum extent
possible, and pass on their knowledge, technologies andskills to the next generation.

Creation of Workplace that is Easy to Work in
Flextime system, child-rearing leave system and nursing-care leave system

Sawafuji Electric has established thefollowing support systems to help
employees balance work and life.
- “Flextime system” which supports
employees in working efficiently andunder their own initiative.
- “Child-rearing leave system” whichhelps employees bring up children
under one year of age.
- “Nursing-care leave system” whichallows employees to take leave sothat they can look after their family
member in need of care.

Promotion of a comfortable workplace
Sawafuji Electric is improving its workplace systematically, aiming to create
a comfortable workplace that is easy
to work in and where its employees
feel less tired and stressed at work.
To this end, the Company is striving
to accurately understand the present
state of the office environment, andasking for the staff’s opinions andrequests. In fiscal 2007, we inspected
ducts and carried out workplace patrols at night.

22

Improving bathrooms, establishing a smoking area, and improving luminous intensity

As part of its efforts to make the workplace comfortable, Sawafuji Electric
has improved its lavatories, established a smoking area, improved theintensity of illumination, and changed
canteen chairs to more comfortableones. Thus, the Company is striving tokeep the working environment comfortable.
Smoking area established as an effort to divide theworkplace into smoking and nonsmoking areas.

Safety and Sanitation
Safety philosophy and safety promotion system

Safety and sanitation management system

Under the slogan “Safety must come first,” Sawafuji Electric has established a safety and sanitation management
system, under which it is promoting the following.
- Promulgation of safety rules and reform of safety awareness- Implementation of prior safety measures against workplace risks and prevention of such risks, through identification and reduction of such risks- Review and improvement of safety rules- Promotion of creation of a happy and comfortable workplace

President- Disaster Prevention Measures
Subcommittee

Safety and Sanitation
General Manager- KYT Promotion Subcommittee- Health Promotion Subcommittee- Traffic Safety Subcommittee

Safety andSanitation Committee
Safety and Sanitation Committee
by Workplace- Department Safety and Sanitation
Committee- Section/Group Safety and Sanitation
Committee- Safety and Sanitation Promotion
Committee by Workplace

Workplace risk reduction activi-

Safety patrol activities

Work measurement and work en-ties and prevention of such risks

Members of the Safety and Sanitation Committee patrol within the plant,
identify items that need to be remedied, from the perspectives of disasterprevention, KYT promotion, healthpromotion, traffic safety, and other aspects, and take necessary measures.

vironment improvement

Through the FI activities (“Find” and“Identify” issues (or treasures)), Sawafuji Electric continuously identifies andreduces workplace risks, aiming toprevent such risks.
Once a month, the section head assesses risks presented by employees
in the incident report, and describes
the results in the risk assessment list,in order to reduce and prevent suchrisks.

Work measurement
Sawafuji Electric secures the qualityof products by checking key parts inthe lines and conducting two-minutechecks (to see whether things are kept
tidy and in order, tools are appropriate,things are put on proper places, parts
are measured correctly, and so on).
The Company also visualizes measurement results as a management
figure, aiming to prevent abnormalities
from occurring.

Work environment

Training activities

Work safety training

Opening of FI Training Hall

To ensure safe work, Sawafuji Electric

To secure safety and quality of theplant, Sawafuji Electric has opened
the “FI Training Hall,” where training isprovided to improve work skill levels
at each workplace. There, training on
micro measurement, thread fastening,
crimp, soldering, and other topics has
been implemented so far.

provides training to recognize danger
by showing trainees simulation of accidents and other mishaps that occurredin the past. So far, the Company has
implemented such training about thecase where workers are caught inequipment, are cut by chips, confirm
safety by wearing a helmet, and otherissues.

Sign of the FI Training Hall

Exhibition of protective devices

23

In fiscal 2007, Sawafuji Electric
installed spot air-conditioners in eachline as part of its efforts to improve theplant’s work environment.
The Company will improve the powder
coating line and provide workers with
T-shirts (bearing the Sawafuji logo).

Social Reporting

Maintaining Employees’ Health
Mental health training

Promoting employees’ healthIn recent years, workers have been increasingly

In order to promote its employees’ health, Sawafuji

stressed, and more and more workers feel anxious

Electric conducts health examinations in accordanceand stressed about their job. Under such circum-

with relevant laws, and secondary examinations

stances, mental health problems have been further

when needed. Employees can receive instructions

affecting workers, their families, offices and the over-from an industrial doctor.

all society. Hence, it has become an important issue

The canteen also offers a “healthy menu” among theto maintain and improve people’s mental health.

daily set meals so that employees can manage their

Against this backdrop, Sawafuji Electric has intro-

health.

duced a mental health care system, under which itis promoting self-care by employees, line-care bymanagers and supervisors, care by industrial doctors
and nurses, and care by outside specialist doctors.
The Company is actively making every effort to copewith these mental health problems, by distributing to

Measurement byelectrocardiogram

all employees a booklet called “Mental Health Measures,” publicizing its contents on the intranet, andproviding managers and supervisors with related
training provided by outside lecturers.

Mental healthseminarCanteen menu

Club Activities
Sawafuji Electric has organized the “Sawafuji Association,” which supports employees with the samehobbies or those sharing the same interest as clubs
and promotes such club activities. Under the Culture
and Sports societies, various clubs are formed, andthese clubs exchange activities with other offices andcompanies. Such activities are expected to refine

Fishing Club

employees’ human qualities.
Sawafuji Society organization
chart

Shogi (Japanese board game) Club
Culture Club,
Culture Society

Fishing Club
Amateur Radio Club
Baseball Club

Sawafuji Society

Table Tennis ClubSports Club,Sports Society

Bowling Club
Tennis Club
Soccer Club

Baseball Club

Track Club24

Together with our Suppliers

Basic Policy for Procurement
In our procurement activities, Sawafuji Electric con-

Procurement’s basic philosophy and purpose

ducts impartial and fair transactions with our suppli-

Basic philosophy

ers by fully implementing compliance and confidenti-- Mutual trust and coexistence and co-prosperity with

ality.

suppliers

To seek understanding and cooperation from our sup-Purposepliers, the Company holds a “briefing for procurement- Securing appropriate quality

policy” for them once every year, and an “information- Realizing and maintaining the industry’s lowest costexchange meeting” on a regular basis to explain its- Establishing a stable procurement systembusiness plan, procurement policy, and other issues.

- Smoothly implementing production activities

Briefing for procurement policy

Green Procurement Guideline
Sawafuji Electric’s business activities are supported

manner, and exchanges information regarding com-by parts and raw materials supplied by many busi-

pliance and suppliers’ environmental demands.

ness partners.

We have also prepared the “Green Procurement”

Given that it is necessary to cooperate with suchguide for office supplies used in-house, and are

partners in our efforts toward environmental protec-

promoting the use of products that comply with thetion, the Company holds a briefing for measures

Green Purchasing Law.

against environmental impact substances in a timely
Environmental efforts explained at brieﬁng forprocurement policy
Efforts to reduce substances that have an environmental impact

Response to future environmental regulations

Procurement Policy for 2008

Procurement Policy for 2008

Environment Efforts

Request for environmental efforts for fiscal 2008

(Lead, mercury, cadmium, hexavalent chromium, bromine, newly regulated substances)(1) Plan to switch from substances that have an environmental impact
Major customer
DN Co.

2006

2007

REACH-complied

T Co.

June 3 (switch completed)

Use of PFOS prohibited

H Co.

From June 6, July 1 (switch completed)

Use of PFOS prohibited

From July 4, For Europe

HO Co.
K Co.

(switch completed)Thank youfor yourcooperation.

1. “Response to LCA” and “Response to REACH regulations”
 To provide data and information at the request of surveyors

REACH-complied

From July 4, Hexavalent chromium Use of PFOS prohibited(switch completed)

2. Efforts toward environmental management

Being switched consecutively

 To acquire ISO 14001 or Eco Action 21 certification

From July 4, (being switched consecutively)

OthersSawafuji

Respond to future environmental regulations

2008

May 10 (switch completed)

From June 4, Refrigerators to Europe (compliant with RoHS), six substances abolished

Others To quantitatively recognize substances that have anenvironmental impact and reduce themBeing switched consecutively

Problems and requests concerning the prevention of recurrence of similar incidents:- Flowing out of products containing
regulated substances - Compliance with Sawafuji SC standard
 - Compliance with new rules

25Social Reporting

Together with Local Communities

Activities for Contributing to Local Communities
Sawafuji Electric promotes contribution to and com-

Company, plant tours, opening its gymnasium andmunication with local communities through various

grounds to local people, participating in industry fairs

activities, including a get-together meeting withhosted by local governments, and conducting clean-people of a sheltered workshop who visited theing activities around the plant.

Get-together meeting with people of a sheltered workshop

Playing balloon volleyball

Plant tour

Opening of the gymnasium and grounds

Sawafuji Gymnasium

Grounds

Social contribution and communication

Plant tour

Cleaning around the plant26

Sawafuji Loves the Earth!

Nittahayakawa-cho, Ota-shi, Gunma 370-0344, Japan
Inquiries

Environment Group,
Environment Safety Department
Tel : +81-276-56-7334
Fax: +81-276-56-6209
Websitehttp//www.sawafuji.co.jp
Issued in November 2008

Utilizing 100% post-consumer
recycled paper pulp