CSR Report 2019
Rinnai Corporate Social Responsibility Report 2019C o r po rate Me ss ag e

Aiming for the Realization of
Healthy and Comfortable Lifestyles
and Sustainable Societies
Since its founding in 1920, the Rinnai Group has contributed to comfortable lifestyles for people around the world
through the provision of gas stoves, water heaters andheating systems. At present, the Rinnai Group has bases in
17 countries and regions, and deploys products in over 80
countries throughout the world.
Rinnai offers optimal solutions suitable for lifestylecultures, climate conditions and energy requirements ineach country of the world to contribute to the realization ofhealthy and comfortable lifestyles and sustainable societies for people throughout the world.

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CSR Report 2019
C o r p o rate
S o c i al
Re s p o n s i b i l i t y

Fundamental Concept

Quality is our destiny

Contents

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

Rinnai’s Activities

Company Motto

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

01 Aiming for the Realization of Healthy
and Comfortable Lifestyles andSustainable Societies
03 Corporate Mission and Vision
Editorial Policy / Contents
05 Top Message

Highly important activities(stakeholder perspective)

和 Harmony:
Develop personal character of the highest caliber
氣 Spirit:
Base your efforts on a consistent philosophy
眞 Sincerity:
Know the fundamentals and consider issues with
precision and clarity

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

Highly important activities(Rinnai Group perspective)

Brand Promise —Rinnai’s Corporate Mission—

Creating a healthier way of living

Abridged version
booklet form

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 2019—April 1, 2018, to March 31,
2019—but also touches upon measures implemented and recent activities undertaken since fiscal 2019 as well as future business direction, targets, and plans.

09 Rinnai Group Profile
1 1 Rinnai Group CSR
13 Environmental Impact within Rinnai’s Value Chain
15 Stakeholder Engagement
17 Value Creation Process

Special Issue 01[Healthy lifestyles]
21 Contributing to healthy and comfortable lifestyles
through the diffusion of gas clothes dryers

Special Issue 02[Approaches to environmental protection]
27 Initiatives to prevent global warning throughenergy-saving water heaters
33 Environmental Initiatives

Schematic Diagram of Company Ideals

Referenced Guidelines
GRI Standards, ISO 26000: 2010
Environmental Reporting Guidelines (2018), issued by Japan’s Ministry of the Environment
Environmental Accounting Guidelines (2005), issued by Japan’s Ministry of the Environment
IIRC, The International Integrated Reporting Framework

Company
Motto
Brand Promise—Rinnai’s Corporate Mission—

Rinnai Code of Conduct

03

Spiritual support of Rinnai

Publication Schedule
Expectations and attractiveness that
we keep promising with our customers

Specific rules of day-to-day corporate activities

September 2019 (Japanese version)
Previous: July 2018, Next: July 2020 (planned)

Important Points Regarding Future Outlook
This report includes descriptions of earnings forecasts and outlooks for Rinnai andGroup companies.
These descriptions are based on currently available information and forecasts asdetermined by Rinnai. Actual results may differ from forecasts depending on various
external factors going forward.

Special Issue 03[Approaches to safety and peace of mind]
51 Approaches to providing customers with safety
and peace of mind by improving the safetyfunctions of our gas stoves
57 Safe and Secure Initiatives

69 Communication with Stakeholders
77 Communication with Employees

93 Management Structure
102 Data Collection

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Top Message“Health & Lifestyles” are our new keywords for the realization of better andmore sustainable societies
Rinnai has been supporting better lifestyles since its

Japan, sales in the United States have risen steadily as afounding in 1920, offering a wide range of products

result of proactive launching of new products, while inincluding water heaters, kitchen appliances, and home

Asian countries competition remains fierce.
Under such conditions, during fiscal 2019 (ended

heaters, and expanding as a company with a focus on
the keywords of “safety and peace of mind,” “comfort,”

March 31, 2019), the initial year of our “G-shift 2020”and “environment.” Today, the Rinnai Group has officemedium-term business plan, Rinnai pursued newlocations in 17 countries and regions including Japan,

measures focusing on the keywords of “Heat &and sells products in more than 80 countries worldwide.

Lifestyles” and “Health & Lifestyles,” helping to raise the

We provide optimal solutions to fit the culture andstandard of living in global markets, and incorporating

lifestyles, climate, and energy situation in each country,

and applying new technologies to our core expertise

conducting business under a policy of contributing toto create original products and services. In terms ofbetter lifestyles for local societies.

business results, sales rose steadily on expansion ofoverseas businesses in such markets as China and the

The business environment for Rinnai has changed
in recent years. Greater awareness of environmental

United States, though operating income declined on

responsiveness and energy efficiency in Japan has

sluggish sales of high-value-added products in Japan,

driven expanded sales of high-efficiency gas waterand higher sales promotion costs overseas. As a result,heaters. Sales have also been positive for kitchen

net sales in fiscal 2019 amounted to ¥348,022 million (upproducts and gas clothes dryers. Overall, however,

0.3% year on year), with operating income of ¥30,879

business conditions remain strained due to the impact of

million (down 6.0%).

energy liberalization and higher material costs. Outside

President

05

Hiroyasu Naito

Medium-Term Business Plan “G-shift 2020”(Global, Generation, Governance)
Targets of the Plan

GlobalGlobal shift means deploying the Group’s
network to promote strategies and focus ondeveloping Rinnai as a world-renowned brand.

“G-shift 2020”
Generation shift means shift
to a new generation thatbreaks common sense while
inheriting the tradition
cultivated over 100 years.

Governance shift meansbuilding management
frameworks suited to the times
and organizational structuresthat encourage growth.

Generation

Governance(Billions of yen)

Fiscal 2019
(Results)

Fiscal 2020
(Targets)

Fiscal 2021
(Targets)

348.0

356.0

372.0

Domestic

172.5

176.0

178.5

Overseas

175.5

180.0

193.5

50.4%

50.6%

52.0%

Operating income

30.8

32.0

34.0

Operating income ratio

8.9%

9.0%

9.1%

Consolidated
Net sales
Breakdown“We deliver high-value-added productsthat support the environment andbetter health, aiming to be thepreferred brand throughout the world.”

Overseas sales ratio06

R i n n a i C S R Re p o r t 2 0 1 9

Top Message

A mission to deliver more comfortable and convenient lives for customers, andsupport the realization of sustainable societies

A new corporate logo for a new Rinnai, to be a globally recognized brand
Rinnai has designated “branding promotion” as a priority

improvements to systems that reward forward-thinking

Along with creating products that are safe, trusted,measure in the “G-shift 2020” medium-term businessemployees, and implementing job rotations to foster

Development Goals (SDGs) and environmental, social,

and reliable, Rinnai also focuses on making housework

plan, aiming to enhance its value as a global brand. We

broader knowledge and flexible thinking. At the sameand governance (ESG) criteria, we believe that theeasier by developing new products that enhance

adopted a new corporate logo from April 2019, updatingtime, we of course retain the values Rinnai has held up to

exceptional environmental performance of Rinnaicomfort and convenience, such as gas clothes dryers

the basic design elements (visual identity) to express thenow, the stance that “Quality is our destiny,” a strictproducts offers a major advantage in terms of realizingthat shorten laundry times, and built-in hobs (stovetops)

Rinnai brand worldview. We also formulated a “brandadherence to compliance, and an “at home” corporate

better and more sustainable societies. Our ECO ONE

with automatic cooking functions. Of these, gas clothes

promise” to our customers and society, “Creating aculture, while also aiming to promote diverse work styles

hybrid water heater and heating system, using bothdryers that quickly dry clothes using air warmed with gas

healthier way of living,” clarifying our commitment toand enhance productivity.

natural gas and electricity as heat sources, received thehave been particularly popular in two-income

building a brand recognized worldwide. The new logo

Environment Minister’s Prize at the Cool Choice Leaders

households. In fiscal 2019, we added 3 kg and 8 kg types

symbolizes a new-born Rinnai, aiming to foster an image

on September 1, 2020. We have designated a three-year

Award 2018 sponsored by Japan’s Ministry of theto the lineup along with the standard 5 kg type, in order toof a brand that creates healthy and comfortable lifestyles.

period before and after that date, from 2019 to 2021, as

Environment, earning praise for the exceptional energy

meet diverse home needs. We also hope to expand use

We also adopted “Health & Lifestyles” as a new theme

an “anniversary period” during which we will conduct a

efficiency of its hot water supply. Rinnai also pursuesof these dryers in commercial facilities struggling withalongside the established “Heat & Lifestyles,” showing

variety of activities to express gratitude to our manyenvironmental measures apart from productlabor shortages, such as nursing care homes and beauty

that we provide innovative products and services beyond

customers and stakeholders, and pave the way for thedevelopment, such as holding seminars to support theparlors.

just heating equipment, and expressing our desire tonext 100 years.

Amid the current focus on the UN’s Sustainableestablish a strong brand that is preferred and chosenwidespread adoption of the net zero energy house (ZEH).

Looking toward the 100th anniversary approachingin 2020 and the future beyond, by providing convenient

by customers.

Expanding our business domain in anticipation of future growth

Rinnai will mark the 100th anniversary of its founding

To strengthen our brand power, we are relying on ourand accessible products of exceptional safety and quality,

employees to take the initiative and freely express ideas,

Rinnai will contribute to comfortable lives for its

Considering the current business environment, Rinnai

product designs and technologies of Japan provides aembracing the challenge of creating exceptional products

customers, and the realization of a sustainable society.

is pursuing measures in Japan to expand its businesssolid foundation for growth. In the United States, we

without fear of failure. To encourage this desire, we are

I deeply appreciate your continued support of the Rinnai

domain in anticipation of future growth. Our Businessbegan local manufacturing of gas tankless water heaters

actively pursuing such measures as making

Group.

Planning Division, newly established in 2018, focusesin April 2018, with a new factory scheduled to begin

on marketing to uncover latent needs, developing new

operations in 2021. By strengthening our local production

business opportunities outside the conventional

structure, we are aiming for steady growth worldwide.

framework, and product planning from a longer-term
perspective. Completely separate from the sales anddevelopment divisions and accumulating information in
non-conventional ways, this division works to expand
Rinnai’s business domain from among a wide range ofConventional logo

New logo

100th Anniversary slogan and logo

options, including developing original business models,
Anniversary slogan

technical innovation in partnership with other companies,
and application development for new technologies.
Outside Japan, despite the uncertainty in the
Chinese economy that has continued since the end of
2018 due to trade friction with the United States, we

The new Rinnai logo is rendered in a robust, modern gothic
font, with a slightly wider shape. The sharp edges havebeen rounded to create a design with a relaxed, friendly,
human atmosphere, expressing the Rinnai brand as “Creatinga healthier way of living” for the world of tomorrow.

Anniversary logo

Connected in passion
for the next 100 years

believe that our manufacturing incorporating the sensible

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R i n n a i C S R Re p o r t 2 0 1 9

Rinnai Group Profile
Rinnai Worldwide

Corporate Data (As of March 31, 2019)● Manufacturing and sales companies ◎ Sales companies ○ Other business □ Overseas representative office (As of April 1, 2019)

Incorporated

September 1, 1920

Established

September 2, 1950

Paid-in capital

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

◎◎◎ Shanghai Rinnai Thermo Energy Engineering Co., Ltd.

46 (domestic 15, overseas 31)●Rinnai Corporation◎ Hainan Rinnai Minsheng Kitchen Appliances Sales Co., Ltd.

・Branches:Home heaters¥19.6 billion

Rinnai Canada Holdings Ltd.
Rinnai America Corporation●

Tohoku, Kanto, Chubu, Kansai, Kyushu
Rinnai Hong Kong Ltd.
◎□

Dubai Representative Office
Rinnai (Thailand) Co., Ltd. ●Rinnai Vietnam Co., Ltd.
●◎
Rinnai (Malaysia) Sdn. Bhd.

● Rinnai Taiwan Corporation◎

Rinnai Holdings (Pacific)
Pte Ltd.

Hokkaido, Kita-Tohoku, Sendai, Niigata,
Minami-Kanto, Tokai, Shizuoka,
Hokuriku, Nagano, Osaka, Keiji, Hyogo,
Chugoku, Shikoku, Fukuoka
・Factories and related centers:
Technology Development Center
Production and Technology
Development Center●
P.T. Rinnai Indonesia

Integrated Logistics Center
East Japan Logistics Center
Rinnai Parts Center

AUSTRALIA

Kitchen appliances¥88.3 billion

・Domestic sales offices:Tokyo, Kita-Kanto, Higashi-Kanto,

Oguchi Factory● Rinnai Australia Pty., Ltd.

Seto Factory○ Gas Appliance Services Corporation

Akatsuki Factory●

Others ¥28.9 billion

Commercial-use equipment¥8.4 billion

JAPAN◎ Guangzhou Rinnai Gas and Electric Appliance Co., Ltd.

● Yanagisawa Manufacturing Co., Ltd.
● Gastar Co., Ltd.

● RB Controls Co., Ltd.

South Korea¥32.9 billion● Rinnai Precision Co., Ltd.
● RT Engineering Co., Ltd.
● Noto Tech Co., Ltd.
◎ Rinnai Net Co., Ltd.
○ Rinnai Enterprises

Rinnai Brasil Heating Technology Ltd.
●

348.0

¥

billionWater heaters andheating systems¥202.6 billion(Year ended March 31, 2019)

China¥46.0 billion

Total

348.0

¥
Australia¥24.9 billion

Rinnai New Zealand Ltd.

Total

Net Salesby Region● Japan Ceramics Co., Ltd.
● Techno Parts Co., Ltd.

Net Salesby Product(Year ended March 31, 2019)

Others ¥20.7 billion

Indonesia¥12.1 billion● Rinnai Technica Co., Ltd.

billionUnited States¥30.3 billion

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10,613 (consolidated), 3,702 (non-consolidated)◎ Rinnai Plus Corp.

● Shanghai RB Controls Co., Ltd.

Rinnai Italia s.r.l.

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

CHINA
Rinnai UK Ltd.

Telephone
Number of Group companies● RS Korea Ltd.
◎

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

Number of employees● RB Korea Ltd.

¥6,459,746,974

Head officeJapan¥180.8 billion

Water Heaters and Heating Systems

Kitchen AppliancesHome Heaters

Commercial-Use Equipment, Others

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

Tabletop cookers, built-in hobs (stovetops), ovens, dishwashers, range hoods,
rice cookers, and others

Fan heaters, fanned flue heaters, infrared heaters, and others

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

Eco Jozu, gas water heater with bath-fillingsystem(JAPAN)DELICIA built-in gas hob (stovetop)(JAPAN)Gas fun heater A-style(JAPAN)Gas clothes dryer 8 kg type
(JAPAN)

High-efficiency gas tankless water heater(UNITED STATES)

Drop-in gas hob (stovetop)(INDONESIA)

Fanned flue heater(UNITED STATES)

Commercial-use connected water heating
system(AUSTRALIA)

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Rinnai Group CSRWith the creation of healthy and comfortable lifestyles as its corporate mission, Rinnai promotes CSR activities
through business focused on ESG throughout the entire Group.

Heat and Lifestyles

Quality

We deploy our advanced heat-related technologies andWe adhere to the fundamental concept that “Quality

know-how to develop products that people can use in a

is our destiny.” To this end, we pursue a “zero defects”

safe, comfortable, and efficient manner. In this way, weobjective when designing, making, and selling ourhelp people lead abundant lifestyles.

products, to ensure they remain fault-free until they
are no longer used by the customer.

Quality Policy

Based on our fundamental concept, “Quality is our destiny,” under our Quality Policy, our Group
employees strive to improve design quality, manufacturing quality, and sales quality with acustomer-oriented approach.

Quality Policy

Customer Orientation

To provide products with satisfaction and ahigh level of safety to customers

To offer products with safety and peace of mind; To disseminate safe
usage; An enriched service bodyour environmental initiatives, we promote all-hands environmental activities with full
Environmental For
participation based on an environmental action plan (”7E Strategic Initiatives”) aiming for its
Policyaccomplishment in 2020, under the following basic environmental philosophy.

Approach to CSR
The Group pursues CSR activities basedon the three commitments it hasemphasized since its foundation—“heat and lifestyles,” “quality,” and“contributing to local communities”—
complemented by “the environment,”

Basic Philosophy on the Environment

Environmental Slogan

Rinnai’s basic philosophy is to embrace environmental protection on a global
scale and contribute to society through the pursuit of excellent, people- andplanet-friendly technology, and product development, production, sales, andservice infused with a sense of humanity.

Our actions are imbued by the wisdomof many and undertaken with due
consideration to the sustainability of apeople- and earth-friendly environment.

7E Strategic Initiatives
Green Activities Involving All
Employees in All Business Areas

1for a total of four key themes.

Develop and provide environmentallyconscious products
5 Emphasize

2 Promote green procurement

E-Service
E-Procurement (Installation(Procurement) and repair)

3 Promote activities

with reduced
environmental
impactE-Factory(Factories)

Contributing to Local Communities

The Environment

In principle, we focus on local production and local sales

We reduce greenhouse gas emissions by developing,in advancing our overseas business. Our aim is to help

manufacturing, and selling residential appliances, which

improve the lives of local people around the world by

are kitchen appliances, water heaters and heating

delivering products and services that meet the climates,

appliances, with exceptional energy efficiency.

E-Office(Offices)
E-Marketing(Sales)4 Sell environmentallyconscious products;
Encourage customers
to be moreenvironmentally aware

environmentallyconscious installation
and repair services

E-Products(Products)acE-Mind (Employees)tartivi B usinaltie s
e s s a n d e n v i ro n m e n t r a t e c
as whoe e l s of s a m e c o r p

6 Promote activities with

reduced environmental
impact at our offices

7

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

lifestyle cultures, and customs of various nations andregions.
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Environmental Impact within Rinnai’s Value Chain
Rinnai promotes environmental impact reduction initiatives through the value chain (see Note 1) in consideration ofsocietal demands and impact on the environment. In particular, the largest amount of CO2 emissions come fromproduct usage, with environmental impact occurring in the procurement phase being the next largest factor.
Focusing efforts on these two points, we are engaged in reducing environmental impact.
Note 1: A series of business activities and value creation processes that companies conduct to provide customers value in the form of products and services.

Rinnai’s Value Chain

Demands andExpectations from Society(Overseas / Japan)

INPUT
Main resources consumed(Raw materials and energy)

Procurement

Development and Manufacturing

Sales, Logistics, and Services

Product Usage

Disposal

Handling procurement risk
through the supply chain• Increased demand for heat-energy
appliances mainly in the Asia region• Support for international frameworks
such as the Paris Accord and otherenvironmental regulations

Provision of household appliancesthat contribute to energy-efficient
homes such as Net Zero Energy
HousesPromotion of energy efficiency in the“use stages” with the largest amountof CO2 emissions in the productlifecycle

Promotion of activities that
contribute to building recycling
societies, including compliancewith plastic regulations

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

EnergyWater• Energy; 1,192,078 GJ• Ground water: 233,140 m3

EnergyWater

EnergyWater

EnergyWater• Public water: 625,939 m3

CO2 Emissions (Emissions Ratio)

OUTPUT
Rinnai’s environmental
impactInitiatives Rinnai
conducts throughbusiness

866,847 t(7.31%)—

40,254 t (0.34%)
Scope 2
73,181 t (0.62%)
Scope 1

Solid waste(Includes valuable substances)

Wastewater

31,352 t 846,122 m³(0.07%)

Scope 3 (Category 11)

10,825,493 t (91.34%)(Concerns emissions from Japanese water heaters)

5,414 t(0.05%)———

Supply chain management

Pursuit of environmental
performance and streamliningof manufacturing processes

Spread of environmentallyfriendly products

Proposal of reasonably
achievable ecological lifestyles

Promotion of environmentallyconscious design

Procurement: We work with suppliers to promote
improvement activities that makethe flow of products, from partsprocurement to commercialization,better.

Development: Develop products with superior
environmental performance thatmeet the climate and needs ofthe region

Sales: Strive to spread products that
contribute to energy efficiency in thewater heater and heating fields

Product Usage: We are teaching customers the environmental
friendliness of our products and promoting theirecological use through Company-sponsored
product events.
Proposal of sustainable, comfortable, and green
lifestyles through use of energy-saving products
Through various events, we will appeal to all of ourend users the environmental performance of our
products and how to use them with theenvironment in mind.

Disposal: Application of design for theenvironment, e. g., to make products
easy to disassemblein accordance with productassessment standards

Manufacturing: We are pursuing efficient processes,
minimizing invested resources andenergy, and promoting activities that
contribute to emission regulations for
CO2, waste products and chemical
substances.

Rinnai’s estimates based on the “Basic Guidelines for Calculating Green House Emissions Through the Supply Chain”[Target scope]	Rinnai Corporation and consolidated subsidiaries (development / manufacturing), Rinnai Corporation (procurement / sales / logistics / services / product usage / disposal)[Target period] Domestic: Fiscal 2019 (April 2018–End of March 2019)
Overseas: January 2018-End of December 2018
[CO2 emissions (units)]: tCO2e, (%) represents the emissions ratio within each process.

13

8,838 tLogistics: We are promoting logisticalstreamlining.
Services: Elevate the Rinnai brand with security
activities through a wealth of service
maintenance and inspections

The value chain is the chain of business activities and processes undertaken by acompany to generate and deliver value (products and services) to the customer.
Indicators marked with a check have received a third-party guarantee from,
Lloyd s Register Quality Assurance Ltd. (LRQA).

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Stakeholder Engagement
Means of Communication
Rinnai places great importance on daily communication with customers, employees, shareholders, investors,• Customer Center• Exhibitions / Other events• After-sales services(inspection and repairs)• Official online shopping site
“R.STYLE”• New Year meetings(policy presentations)• New product workshops
utilizing internal facilities• Corporate site
• Product information sitebusiness partners, local communities, and the general public in an effort to further evolve our business activities
and improve levels of satisfaction. Comments and requests from customers through channels such as exhibitions
and our online shopping site are used to help improve our products and services. We exchange information withour business partners on subjects such as management policies and products and work together to mutually
improve quality through our Level-Up activities.

Employees

Shareholders
Investors

Business Partners

Community, Society(Including government)

CSR Report 2018 Questionnaire Results n=323
Sections of Interest (Printed Edition)
Chinese Air Pollution (PM2.5) Countermeasures

Corporate Mission and Vision

Global Warming Countermeasures

Message from the President

Customer Safety and Peace-of-Mind

Rinnai Group Business

Consumer Safety Initiatives

Rinnai Group CSRWith Employees

The Rinnai Groups Value Chain

Communication with Stakeholders

Stakeholder Engagement

Management Structure

Identifying CSR Material Issues

15

10

20

• Customers who have had repairs done are surveyed to gauge their satisfaction with elements of service such as “ease of getting through by phone” and“politeness of operators.” Details of responses are then fed back to operators so that they can remedy unsatisfactory areas.
• The Maintenance Check Call Center was established to handle inquiries regarding inspection notifications, inspection notice functions, and schedule
inspections. A simple explanation of the inspection system is provided to customers who are not registered owners and guidance is provided to receive
inspections for safety.
• We provide guidance on legal compliance inspections for customers who registered their products in accordance with the “long-term use product safety
inspection system” as they reach their 9th year of use. For products not applicable under legal compliance inspection regulations, we strive to improvecustomer safety by sending safety inspection notifications based on the “long-term use product safety inspection system.”• Rinnai conducts web-based questionnaires (customer satisfaction surveys) with customers who make purchases on our website. These questionnaires
concern purchased products, service window support, the sales site itself, and product delivery and packaging. The Company provides all related offices
with feedback regarding questionnaire results and conducts initiatives to improve issues related to responses that indicate low customer satisfaction.

• Individual discussions• Workplace meetings• Training / Events• Corporate ethics advisory
service• In-house intranet / In-housenewsletter• Information exchange with
employee unions• In addition to regular interviews targeting all employees, we conduct feedback interviews regarding personnel evaluations, pre-partum and postpartum
childcare leave, and interviews when returning to work. By creating rules for interviews with employees in Japan and those transferred overseas, we arestrengthening our support for individual growth and workplace communication to create a better work environment.

• General shareholders’ meetings• Results briefings• Factory tours• Investor relations (IR) meetings• Questionnaires• 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 the Group’s management policy and strategy.

• New Year meetings• Policy presentations for
suppliers• Level-Up Workshop• Online communication tool,“R-LINE”• Rinnai responds to inquiries from suppliers regarding its production system and trends as needed, informing them of important information, such aschanges in production plans, through the communication tool R-LINE. We also explain this information through our Supplier Liaison Group meetings.

• Participation in local / community
development activities• Support for cultural activities
and the arts
• Employee volunteer activities• Support for extracurricular school
activities (factory tours, etc.)• We are asked by people living near our plants and offices to assist with events and festivals aimed at enlivening their communities, and we actively assist
and take part in such events as a member of these communities.

• To collect and accurately respond to requests from employees in all departments, the Company regularly holds conferences between its Personnel
Department and employee unions, the results of which are used to revise internal systems and improve work environments.
• Rinnai conducts nursing care seminars and provides nursing care-related information based on nursing care questionnaire results. The Health Support
Office plays a central role in promoting employee health through health campaigns that check blood vessel age, bone density, iron content, and skin age
as well as walking seminars for weight loss and physical fitness.
• Since 2005, we have been operating a corporate ethics advisory service. This internal reporting system enables employees to report fraudulent activity
and violations of laws, ordinances, or internal regulations in cases when consulting with their superiors is problematic.

• 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.

• Responding to requests from suppliers for advice on, e.g., improving quality and productivity, we organize Level-Up workshops and help suppliers tomake improvements in the workplace.

• Rinnai continues to support exchanges with citizens and creative activities by collaborating with cultural and artistic activities conducted in the areasurrounding the Nakagawa canal, where our head office is located.
• In response to requests for assistance with community learning and school education, we organize events such as seminars on the history of
manufacturing at Rinnai and factory tours for schoolchildren.

Selected Questionnaire Feedback (Excerpt)

Realizing a Better Society0• We conscientiously answer a range of inquiries from customers concerning products and parts, and post frequently asked questions (FAQ) on our
website.

• We are expanding Hot.Lab, our hands-on product induction facility, and working to increase customer knowledge and understanding regarding ourmerchandise.

Customers (Users) (Distributors)

Communication with
Our Stakeholders

Opinions and Issues Raised and Our Responses

30

40

50 (%)

0

10

20

30

40

50 (%)• I think that setting and evaluating targets in terms of basic units is good, but I
would like you to make efforts to regulate and reduce total amounts.
(Male, 60s, customer and individual consumer)• This is good because I think companies that value their employees takegood care of their customers. I hope complaints from customers are taken
seriously within even greater response. (Male, 50s, customer and individual
consumer)• I would like to see a graph on the ratio of female employees and executives.
Regarding the issue of disabled employment numbers, it is necessary toprovide the private sector with a fair number, so I think that this point needs
special consideration. (Female, 40s, customer, individual consumer)• As with most companies, the internal relationship between partner
employees and non-regular employees was unclear. In terms of creating a
corporate culture of products selling safety, I would like a little more
information regarding flat and direct communication and the flat,
comfortable relationship between employees and partner employees.
(Female, 30s, customer, individual consumer)• I think that women’s opinions should be emphasized based on their work
content, but data such as the ratio of women in managerial positions was notprovided. (Female, 50s, customer, individual consumer)16

R i n n a i C S R Re p o r t 2 0 1 9

Value Creation Process
The Rinnai Group attempts to conduct corporate management with a focus on ESG indicators to ascertain theenvironmental impact of various social issues and business activities as well as the opinions and expectations ofrelated stakeholders. We strive to realize sustainable corporate growth and contribute to international initiatives
such as the SDGs through the implementation of a value creation process driven by strategic management focusedon ESG indicators.

Rinnai Group Value Creation Process

External Environment / Social Issues

Business Activities

Climate change /global warming

Rinnai handles water heaters and heating units that utilize a large
proportion of residential energy.

Product usage risks

Company-related product usage risks include fires caused by gas
stoves and “heat shock” occurring in the bathroom.

Work style changes
cause decrease inquality of lifestyle

Demand for products that reduce time required for household chores
due to decrease in quality of lifestyle as a result of a rise in dual income
households, declining birthrates and an aging population

Value Provided

Main products and services

Creation of products
and services that are safe,
secure, andenvironmentally friendly

Environmental
contribution(local production / in-house production)

Providing lifestyles that
reduce consumption of
everyday lifestyle energy
usage and impact on
the environment

Invested Capital (Fiscal 2019)
Human capital

Employees*1:
Employed (Rinnai non-consolidated) *1:
Training and development expenses:(Rinnai non-consolidated) *1
Overseas trainees (Rinnai non-consolidated):

10,613 people
131 people¥159 million

Intellectual capital

Development headquarters staff:(Rinnai non-consolidated) *1
R&D expenses (Rinnai non-consolidated):ISO 9001 certification acquisition:(number of companies) *1
ISO 14001 certification acquisition:(number of companies) *1

336 people

13 people

Manufactured
capitalRinnai Group production bases:(number of companies) *1
Production group staff (Rinnai non-consolidated) *1:
Capital expenditure (Rinnai non-consolidated):Natural capital

Input energy:
Water used: Ground water:
Public water:

Social andrelationship capital

Rinnai brand, external evaluations, stakeholder engagement,
Rinnai Group Code of Ethics[Domestic] Declining birthrates, an aging
population, and a decreasing in the numberof households
Decreasing working hours and intensifying
competition for securing human resources

17¥348,022 million
Operating income¥30,879 million

8.90%

7.0%
4.8%
69.4%
24 companies
1,856 people¥6,602 million

Promoting business under
the slogans “Heat &Lifestyles” and “Health &Lifestyles”

1,192,078 GJ
233,140 m3
625,939 m3

Safety andpeace of mind
Supporting lifestyles thatenable the prevention andavoidance of various
potential risks in the home

Net income attributable toowners of the parent company¥20,480 million
Net assets (equity ratio)¥320,696 million (69.4%)
Dividend per share(annual) ¥94*1 As of March 31, 2019

[Domestic] Price reduction of gas
appliances due to customer requests

Consolidated net sales

Operating income ratio

14 companies

ROE
ROA
Equity ratio[Domestic] Expansion of thermal energy
systems centered on electric powerGas stoves, range hoods, water heaters,
hot water floor heaters, gas clothes
dryers, dish washers¥7,031 million
17 companies

Financial capital

Risks

Fiscal 2019 Achievements

Opportunities
Growing demand for energy-saving
products by strengthening environmental
policies
Increasing needs for safety and accident
prevention as social issues[Overseas] Expansion of natural gas use[Overseas] Improving living standards
Progress in evaluation of corporate ESG
initiatives

Quality of life
Development of technologies
useful for people’s lives

Contribute to raising
standards of living globally(Combustion / heat utilization, electronic control,
fluid control, new technologies)

Social issue recognition

Proposing lifestyles that
reduce the burden andtime required to perform
household chores

Amount contributed toreducing CO2 emissions byusing the product2.54 million tons
Announcements of productrecalls due to defects: 0 case18

R i n n a i C S R Re p o r t 2 0 1 9

Value Creation Process: Identifying CSR Material Issues
We make every effort to identify social challenges relating to the Rinnai Group, through day-to-day communication

CSR Material Issue Targets and Results

activities with stakeholders coupled with study and analysis of applicable guidelines and ESG indices. We also

Deep Involvementwith SDGs

identify CSR material issues through the Rinnai Group value creation process in relation to our management
strategies, revolving primarily around our Corporate Planning Division.

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

Material Issues

Main Target Indicators

Energy consumption
CO2 emissions

Amount contributed toreducing CO2 emissions
by using the productWe intend to develop and encourage
households to use water heaters andheating units with an emphasis on energy
savings and environmental performance,
in an effort to reduce energy consumption
and reduce household CO2 emissions.

Target area: Global(Main focus of initiatives: Japan)
Target stakeholders: All2020 target

3.32(see Note 1)

million tons

2030 target

6.04

million tons

CO2

2018 results: 2.54 million tons

Note 1: The target range was revised from 1.6 million tons to 3.32 million tons. (Added U.S. market)

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Outline existingengagement

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

Analyze ESG indicesand questionnaires

Study othercompanies

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

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

High<Importance to stakeholders>

Very highClassification of CSR Issues○ Environmental issues◇ Customer issues

Main Target Indicators

Consumer safety
Improving quality

Number of defects that have
led to product recall
announcements

We are working toward achieving zero
defects by eliminating defects at every
stage of the product lifecycle—fromdevelopment, production, and salethrough to obsolescence—and pursue
a range of activities to publicize
information and raise awareness of
preventing accidents in the home.

Target area: Global
Target stakeholders: Customers

Deep Involvementwith SDGs

0case2018 results: 0 cases

VOICE
Creating Sustainable Value with the Rinnai Spirit□ Other issues

To increase the convenience of using heat, water and air, which are basic elements of people’s lifestyles,○ Waste○ Harmful chemicals○ Drainage□ Industrial relations□ Work-life balance◇ Housework time reduction○ Energy consumption○ CO2 emissions◇ Consumer safety◇ Improving quality○ Biodiversity□ Child labor / forced labor□ Stable procurement□ Support for cultural activities
and the arts

○ Conserving resources□ Occupational health and safety□ Protecting privacy◇ Repair and inspection services□ Wages and welfare□ IR communication activities□ Fair trade□ Work style reforms□ Diversity□ Support for school education /vocational training□ Preventing corruption○ Transport and transfer◇ Enhancing Customer Center
services□ Training and education□ Dividend policy□ Surveying and evaluating suppliers□ Communicating with suppliers□ Investing in local communities

Material Issues

Rinnai has a long history of ongoing technological innovations and the provision of world-first productsthat place the highest priority on quality and safety.
As we insist on quality and safety, we have developed our own core technologies. We are also
focused on manufacturing innovations and contribute to modern society through activities rooted in the

Masao Kosugi
Director and Senior Managing
Executive Officer,
General Manager of Corporate
Planning Headquarters

countries that need our products and services. Our unwavering pursuit of this spirit with a sense of unity
throughout the Group and collaboration among departments since our founding is the essence of
Rinnai’s corporate stance. We will never compromise our dedication to maintaining this spirit as thedriving force behind our value creation.
To ensure eternal symbiosis between the earth and humans, we will deepen our consideration for
the environment in the product lifecycle. We want to change people’s lifestyles around the world using◇ Marketing communication

innovation to provide more comfort and health in line with the joys and preferences of each person’s
individual lifestyle. This is our wish, and we will continuously evolve the value creation process andenhance our ongoing ability to design services that will continue to provide value to our customers
throughout their lives and in line with environmental changes, innovate the proprietary development,

High

19

<Importance to the Rinnai Group>

Very highproduction, sales, logistics, and management business models we have cultivated up to now.

20

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

01 [Healthy lifestyles]

Contributing to healthy andcomfortable lifestyles through the
diffusion of gas clothes dryers

Linkage with SDGs

Gas clothes dryers are helping to solve social issues
In recent years, people’s lifestyles in Japan have grown more diverse in line withchanges in the social environment. Yet these changes have also brought new issues
to the fore. The advancing trends of declining birthrates, an increase in the percentage
of elderly citizens, and a decline in the working population have created labor
shortages in a variety of industries. This is particularly apparent in long-term carefacilities due to the rise in the elderly population. In addition, the number of dualincome households has increased with the advent of more working opportunities for
women as well as uncertainty in the future outlook. This has led to many households
having to use their limited free time for household chores and child rearing, whichleaves little extra time in their lifestyles. Against this backdrop, Rinnai’s gas clothes
dryers are attracting attention as a means of helping to alleviate labor shortages andcontribute to reducing the time spent on housekeeping.
Rinnai’s gas clothes dryers use air heated to over 80°C by gas flames to quickly
dry clothes that have been washed and spun. Drying times are cut to one-third
compared with electric dryers, so 5 kg of laundry can be dried in approximately 52
minutes. The dryers thus reduce time spent on household chores and boost work
efficiency at workplaces where there is high demand for washing and drying clothes.
Moreover, the hot air produced by gas flames imparts the same antibacterial effect asdrying clothes in the sun (see Note 1) and also eliminates concern over particles of dust or
exhaust gases affixing to the articles being dried. We therefore expect our gas clothes
dryers to be used widely in medical and long-term care facilities where clothing andbedding must be kept clean.
Note 1: T he number of E. coli counted per dried article (diaper) after drying was zero according to a study by Tokyo Food
Technology Research Institute, Tokyo Food Hygiene Association.

Comparison of drying times (see Note 2)
Gas clothes dryer(Kanta-Kun)
Fully automaticwasher-dryer withelectric heat pump
Fully automaticwasher-dryer
with electric heater

Gas clothes dryer (Kanta-Kun)

5 kg 8 kg 5 kg: c52 minutes, 8 kg: c80 minutes
5 kg: c162 minutes
5 kg: c281 minutes

Note 2:	Conditions: Everyday clothing 8 kg (50% cotton, 50% synthetic textiles) /70% dehydration. Calculated with model RDT-80 and standard course.
Gas type: c80 minutes in the case of LPG, everyday clothing 5 kg (50%
cotton, 50% synthetic textiles) / 70% dehydration.
Calculated with model RDT-54S-SV and standard course. Gas type: c52
minutes in the case of LPG.

Konuma Circle Home Special Nursing Care Home for the
Aged, where Rinnai’s gas clothes dryers have been installed21

22

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

01 [Healthy lifestyles]

The contribution of gas clothes dryers at long-term care facilities

installed in the laundry rooms of each unit, which
improved the workflow of the caregivers.
By building an environment for quickly drying smalllaundry loads, unit care tailored to the needs of eachresident is achieved. In addition, clothes are dried freefrom the impact of pollen season, yellow sand, andPM2.5 and other forms of air pollution, creating anenvironment such that both residents and caregivers
alike can wear clothes and use towels with a sense ofassurance.
In recent years, there has been a shortage of laborin the long-term care field. According to a survey by theCare Work Foundation, 67.2% of respondents noted“they feel there is a shortage of care providers” and thehighest concern they had with labor conditions at 54.2%
was “there is not enough staff” (see Note 2). Going forward,
through its commercial-use gas clothes dryers, Rinnai
will contribute to resolving the issue of labor shortages at
the front lines of long-term care and the creation of carefacilities that make life easier for their residents.

Gas clothes dryers installed in each laundry room

Note 2:	Source: “Results of Fact-Finding Survey on Long-term Care Work 2018,” Care
Work Foundation

Special Nursing Care Home for the Aged Konuma Circle Home
Two units are used efficiently to quickly dry residents’ clothing

23

VOICE
Efficient washing and drying was achieved to match residents’lifestyle rhythms

Private room

Private room

Laundry room

Private room

KitchenPrivate room

Puramouto Circle Club Social Welfare Service Corporation, which operates Special Nursing Care Home for the Aged
Sakado Circle Home, in Sakado City, Saitama Prefecture, opened in the same city Special Nursing Care Home for the
Aged Konuma Circle Home in February 2018. The new facility is equipped with Rinnai’s commercial-use gas clothes
dryers, which are helping improve labor shortages at theNote 1:	Unit care is long-term care that provides individual care that respects thefront lines of long-term care.
individuality and lifestyle rhythm of the resident while supporting them to live
Konuma Circle Home is a three-story senior caretheir daily lives by building relationships with other residents in the common
spaces that have been provided.
home with a 100-person capacity, with all residents
occupying private rooms. The residents are divided into
Private roomgroups of 10 and each group has common spaces andPrivate room
caregivers assigned to provide unit care (see Note 1). However,there was concern as to whether adequate individual care
Private room
could be provided since the washing and drying of clothes
Common space
Changing
area
Private roomand towels is done to accommodate each resident’s
Bathlifestyle rhythm and traditional large-scale dryers or sun
room
Private room
drying require a lot of time and labor to be spent on
washing and drying. To overcome this, at Konuma Circle
Private room
Home, two gas clothes dryers (22 machines in total) were

Konuma Circle Home is a special nursing care home for the aged established in February 2018 thathouses up to 100 residents all in private rooms. With unit care, we provide care that addresses thelifestyles of each resident, and this means timing the washing and drying of residents’ laundry to match
their lifestyle rhythms. As a result, we do laundry five or six times per day in the mornings alone, so gas

Ayako Kokubu
Deputy Manager, Special Nursing
Care Home for the Aged Konuma
Circle Home,
Puramouto Circle Club Social Welfare
Service Corporation

clothes dryers that dry quickly are very suited to unit care. In addition, regularly washing clothes in smallloads allows for quickly washing clothes that have been soiled and thus prevents lingering odors, which
in turn contributes to maintaining a sanitary environment in the facility.
Gas clothing dryers also contribute to improving the labor shortages at the front lines of long-termcare and create time for caregivers to communicate with residents.

24

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

01 [Healthy lifestyles]

Gas clothes dryers cut time spent on housekeeping at dual-income households

to install gas clothes dryers to help reduce the time they
spend on housework. Chuo Jutaku Co., Ltd., a designerand seller of housing in the Polus Group, developed a22-unit built-for-sale housing community called Mind
Square Narimasu Growrich Hills. Each house in thesubdivision is equipped with a 3 kg gas clothes dryer, sothat dual-income households can find extra time to enjoy
life thanks to the time saved on household chores withgas clothes dryers. In addition to saving time on drying,
the compact 3 kg units provide leeway in the living space
and are particularly suited for low-rise housing in theTokyo metropolitan area where floor space is limited.
In 2018, Rinnai launched a compact 3 kg model anda large-capacity 8 kg type to match large-capacity
washing machines to augment its existing standard 5 kg
models. Rinnai will contribute to lifestyles that make work
rewarding by expanding its lineup of gas clothes dryers
to fit a variety of lifestyles.

Mind Square Narimasu Growrich Hills

Rinnai’s gas clothes dryer installed as standard in the built-for-sale houses of the Mind Square Narimasu Growrich Hills community

The number of dual-income households in Japan has been on aconsistent increase in recent years owing to diversification in lifestyles
brought on by a variety of changes in the social environment. As of
2018, there were 12.19 million dual-income households, far more than
the 6.06 million households where only males were working outside
the home (see Note 1).
In Japan, which is known for long working hours, dual-income
couples answered they had approximately 1.3 hours per day of “freetime not spent at work or on housekeeping,” which was lower thanother countries surveyed (see Note 2). In this connection, Rinnai’s gas
clothes dryers are being closely watched as a way of reducing timespent on housework.
Dual-income families find it difficult to do frequent laundry loads,
so they tend to wash and dry large loads in a single session and dry
clothes at night. It takes a long time to complete the process fromwashing through drying and thus they find it difficult to find leeway intheir lives. Such conditions have led many new homebuyers to look25

A 3 kg model gas clothes dryer that gives the feeling of extra room in the changing
areaFree time not spent at work or on
housekeeping by dual-income couples（N=100）(Time)
3.5
3.0
2.5

VOICE

3.19
2.55

Holding expectations for product development that supports daily
2.45

life and families’ growth

2.0

1.5

1.5

Debuting in Narimasu, in Tokyo’s Itabashi Ward, Mind Square Narimasu Growrich Hills proposes lifestyles

1.31

of comfort. The project is based on the concept “the evolving lifestyle of the future” by linkage to home

1.0

energy management systems and securing amenity through apps that use Internet of Things (IoT)

0.5

technologies while at the same time cutting time spent on housework with gas clothes dryers.

0.0

Denmark Germany

USA

Republic of Japan
Korea

Juichi Fukunaga
Manager, Tokyo West Office,Mind Square Division, Chuo
Jutaku Co., Ltd.

Notes: 1.	Source: “White Paper on Gender Equality 2019,” Gender
Equality Cabinet Bureau
2.	Survey of perceptions of dual-income households in fivecountries in “Netsu to Kurashi Tsushin (Heat & Life
Newsletter)” conducted by Rinnai

In this project, we decided to install gas clothes dryers as standard equipment in all 22 units
because demand for this equipment is on the rise. In the past, I had lost sales because the customer was
told that gas clothes dryers could not be installed in that home and I realized that gas clothes dryers are anecessity for working couples. Mind Square Narimasu Growrich Hills is located within convenient reachof central Tokyo, so we envisioned purchases by dual-income families and decided to install gas clothes
dryers as standard equipment. I would like to see Rinnai develop products that contribute creating extra
time in the daily lives of homeowners and an environment in which they can grow and thrive.

26

Special Issue

02 [Approaches to environmental protection]

Initiatives to prevent global warning throughenergy-saving water heaters
Linkage with SDGs

Aiming to contribute a 6.04 million ton reduction in CO2 by 2030
Looking at the breakdown of energy consumption by Japanese households, water heating and heating
account for over 50%, and water heating alone accounts for the largest percentage at 29.1%. In addition,
CO2 emissions of water heaters throughout their lifecycles are highest at their usage stage (please refer topage 13). As a result, to contribute to preventing global warming through its business activities, Rinnai
believes it is important to boost energy efficiency and develop and promote the adoption ofenvironmentally conscious products that help accomplish this through improving the combustion
efficiency of its hot water heaters and the like. Rinnai is working toward the prevention of global warming by
setting “energy consumption and CO2 emissions” as CSR material issues and the “amount contributed toreducing CO2 emissions by using the product” as a target indicator (*1).
Toward this end, Rinnai in Japan is promoting energy savings in the home by contributing to thedevelopment of net zero energy houses (ZEHs) through such energy-saving water heating systems as the
ECO ONE hybrid water heater with heating system. In overseas markets, Rinnai has been promoting theconversion of storage tank-type water heaters to gas tankless water heaters. In fact, Rinnai was able tocontribute a 2.54 million ton reduction in CO2 in fiscal 2019. Rinnai’s long-term target is a 6.04 million ton
contribution to CO2 reduction by 2030, which will contribute to the achievement of Goal 13 of the SDGs,
which is to take specific action to combat climate change.
*1: Reduction in CO2 emissions (estimated) resulting from improvements to performance in Rinnai’s water heaters compared with products sold in 2005

CSR materiality target indicator
Power & lighting, etc.
33%

Heatingwater
29%

Percentage ofhousehold energy
consumption by usage(2017)
Cooling2%

Cooking10%

Heating
26%

Source: “Energy White Paper 2019,” Agency for Natural Resources and Energy

27

Amount contributed to reducing
CO2 emissions by using the product2030 

3.32 million tons
6.04 million tons

Fiscal 2019 (actual)2.54 million tons

2020 

28

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

02 [Approaches to environmental protection]

Rinnai’s activities aimed at diffusion of Net Zero Energy Houses

An energy-saving home designed by Yawata HomeAs a part of measures to prevent global warming, in Japan energy-saving efforts in housing and buildings are progressing
along with the government’s target to have over 50% of built-to-order housing built by housing makers be ZEHs by 2020.
The Ministry of Economy, Trade and Industry (METI), the Ministry of Land, Infrastructure, Transport and Tourism(MLIT), and the Ministry of the Environment are coordinating to promote the spread of ZEH through subsidies for ZEH
buildings. As of the end of October 2018, however, 57.1% of ZEH builders and planners (*1) had no track record with ZEHs.
We therefore believe more intensive efforts will be necessary to achieve the government’s target for 2020.

The top reasons cited by builders for having no
track record in ZEHs were “customer’s budget,” “could
not gain the understanding of customers,” and“inadequate systems”(*2). In this connection,
Rinnai is developing energy-saving gas water heaters
and has started “Club GREEN,” a series of support
activities for ZEH builders. We hold ZEH seminars forbuilders and assist with applications to receive subsidies
and support with the calculations of utility cost
reductions gained from installing ECO ONE and other of
Rinnai’s energy-saving water heating systems. In theseways, we not only support builders but also promote
understanding among customers. We have held ZEH
support seminars with increasing frequency since 2016,
and convened such seminars 37 times in fiscal 2019.
Furthermore, MLIT’s “Regional housing greening
project” promotes ZEH among small- and mid-sizedbuilders by forming groups among business operators
involved in wooden housing and builders and creating
applications for subsidies at the group level. Rinnai also
assists in preparing the documentation necessary for
applying for subsidies and therefore contributes toreducing the burden on small- and mid-sized builders
with the aim of increasing the number of ZEHs.

ECO ONE installed in an energy-saving house

A seminor for ZEH builders*1: Housing manufacturers, builders, architectural offices, renovation companies, built-for-sale housing sales companies, etc., that have set adoption targets for ZEH.

Net Zero Energy House (ZEH)
In addition to ZEHs achieving major improvements to the insulation
performance of the exterior finish, such houses achieve considerable
improvement in energy savings by installing highly efficient equipment
and systems that maintain the quality of the interior living environments.
Furthermore, by adopting renewable energy, ZEHs aim for zero annual
expenditure for primary energy consumption.
Minimize the requirement Using energy adeptlyfor energy with
with high-performancehigh insulationequipment(houses that are cool in summer
and warm in winter)

Heating
CoolingExhaustLighting

Heating water

29

Reduction

Track record of ZEH builders and planners(as of October 2018) (*2)

VOICE
Expectations for the development of energy-saving equipment

Track record of 50% or higher
No report of track record

14.1%

8.1%

that contributes to ZEH adoption and product promotion

567 companies

988 companies

Track record of 1-49%
or higher

Working together with Rinnai, we participate in MLIT’s “Regional housing greening project” and propose

20.7%

Registered
ZEH builders
and planners
6,996
companies

Generatingenergy1,448 companies

Track record of 0%

57.1%

3,993 companies*2: Source: Results of Survey of Supporting Businesses for Net Zero Energy
Houses (2018 edition) from data announced publicly by Sustainable Open
Innovation Initiative

energy-saving housing and zero energy housing that is easy for customers to adopt. Since the initialcosts of ZEHs and other energy-saving houses are higher than that for general housing, subsidies that
help control such initial costs are extremely effective in promoting the diffusion of ZEHs.
We have boosted our track record in ZEH by applying for subsidies in collaboration with Rinnai

Kenji Sohma

since 2016. Yet, showing the benefits of a reduction in customers’ utility bills is necessary when proposing

General Manager, Sales Division,
Yawata Home, Co., Ltd.

ZEH and other types of energy-saving homes to customers. Toward this end, I would hope that Rinnai
develops equipment that saves even more energy and conducts public relations (PR) activities toconvey the attractiveness of such products to even more customers.

30

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

02 [Approaches to environmental protection]

The ECO ONE hybrid water with heating system wins the 2018 Cool Choice
Leaders Award (Environment Minister’s Award)
Rinnai’s ECO ONE debuted in 2010 as the world’s first hybrid water with heating system for residential use to combine gas
and electric heat pumps to provide thermal energy for heating water and heated flooring. The system comprises threeunits: a heat pump to boil water with electricity, a tank to store hot water, and an Eco Jozu high-efficiency gas water heater
to support high volumes of hot water usage such as when bath water needs to be reheated.
Since the start of sales in 2010 through today, Rinnai has worked to improve the energy efficiency of its water heatersystems. In fact, the 160l type ECO ONE tank unit launched in August 2017 achieved 13.8 GJ/year in primary energy
consumption for water heating, which is the standard for evaluating energy-saving equipment. This is an impressive 45%
energy savings compared with conventional water heaters. In February 2019, ECO ONE received the Cool Choice
Leaders Award 2018 (Environment Minister’s Award), which is sponsored by the Ministry of the Environment, in
recognition of its high energy-saving capabilities.
In May 2018, Rinnai launched the ECO ONE Plug-in LOWBOY model that does not require dedicated electricalconstruction for the heat pump. This simplifies installation of replacement equipment and allows flexible installation
in a variety of existing homes. It therefore will contribute to energy savings, particularly in smaller homes in the Tokyo
metropolitan area.

Hybrid bath water heating system ECO ONE Plug-in LOWBOY(50l tank unit)

Cool Choice Leaders Award 2018 award ceremony(from left, Minoru Kiuchi, Deputy State Minister of the Environment(at the time of the photo); and Kinji Mori, General Manager of Environment
Department, Rinnai)

Approaches in the U.S. market to promote adoption of gas tankless water heaters

Comparison of primary energy consumption ofheating waters (*1) (GJ/year)
Standard
water heater
Eco Jozu
Mode thermal
efficiency 92.5%

Eco Cute

25.1

14%

21.6

Approximately

16.5

Approximately

34%

13.8

Approximately

45%

JIS3.6160l type*1:	Calculated based on the “Energy Consumption Performance
Calculation Program (Residential Edition Ver 2.3.1” (6 districts)
based on 2016 energy-saving standards published in “Technical
Data Related to Energy Consumption Performance in Buildings,”
compiled by the Building Research Institute (with the cooperationof the National Institute for Land and Infrastructure Management)(as of December 2017)

ECO ONE 160l type hybrid water heater and heating system

31

In the U.S. market, nine million water heaters are replaced every year, of which about 95% are hot water-storage-type
units, in which hot water is stored in tanks. Among the different types of water heaters, storage gas water heaters areless energy efficient than gas tankless water heaters, so
switching to a gas tankless water heater would contributeto a reduction in CO2 emissions in the United States.
In April 2018, Rinnai America Corporation, a Rinnai
Group company, launched the SENSEI series of gas
tankless water heaters offering improved energy savingsand ease of installation. The SENSEI series of gas
tankless water heaters work even with 1/2-inch gas lines
in certain situations, and the exhaust pipes have been
SENSEI series of highly efficient gas tankless water heaters
improved to function at distances of up to 46 meters,compared with seven meters previously. These
improvements facilitate easy replacement of water
heaters even in locations where installation was difficult
previously.
To boost awareness of tankless gas water heaters,
Rinnai ran the “Try Rinnai Tour” in which seven large vansequipped with gas tankless water heaters travelledaround the United States and Canada to give
demonstrations. Approximately 1,000 events were held
during 2018 to promote the high energy-saving
performance of gas tankless water heaters to many
people in North America.
Large-scale van equipped with gas tankless water heaters32

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Environment

Environmental Initiatives:Environmental Management

Environmental Management

Rinnai has adopted an environmental basic philosophy, environmental slogan, and “7E” Strategic Initiatives environ-ISO 14001 Certification

mental action plan in accordance with its Environmental Basic Policy, and these guide the implementation of environmental activities undertaken with the involvement of the entire workforce in all business domains.

To underpin the systematic and continuous development of environment-oriented activities in line with our stated basic
environmental policy, we encourage all members of the Rinnai Group to embrace efforts to acquire and maintain ISO14001:
2015 certification.

Promotional Framework for Environmental Activities
Headed by the President, the Environment Management Committee guides corporate efforts to achieve targets of the “7E”

External and Internal Environmental Audits

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 to promote environment-oriented

Rinnai undergoes a routine annual audit by an external

activities from a “big picture” view. The Environment Management Committee discusses and decides important items

screening/registration body to verify that its environmental

including the basic environmental basic policy, the goal, and a medium to long-term plan. The committee thoroughly informs

management system is being properly applied. The routine

individual divisions of decisions made by the committee and promotes concrete activities in line with annual plans. We

audit for fiscal 2019 did not turn up any major findings.

review our objectives as necessary and diligently strive to meet our targets quarterly. To perform specific activities, each

Regarding internal audits, the audit team is composed ofdivision has a liaison group and holds routine meetings to make issues known to everyone in the respective division andauditors selected from throughout the Company with acontinue improvement activities.

neutral perspective in that they are not directly affiliated withany of the departments to be audited. They audit otherdepartments for compliance with the environmental
management system and with any revisions to environmental

Environmental Management
Promotion Systemregulations as well as for the content of their activities.

President
Environment Management Committee

Environment Division

Chairman of the Committee: Executive officer
in charge of environmental issue

Planning and administering
meetings and the committeeof environmental activities

Execution and improvementof environmental management systems

A scene from an external inspection (Rinnai Precision Co., Ltd.)Internal Auditor Education
Internal auditors play a significant role over and above their efforts to continuously improve the environmental management
system. The execution of an audit requires highly specialized knowledge and communication skills. To upgrade the skills of

Research & Development
Headquarters

Production Engineering
Divisioninternal auditors, we conduct regular training by in-house instructors on such topics as laws and ordinances, internal regula-

Factories

Head Office

Other Offices

tions, internal audit observations and improvement measures, and environment-oriented trends. In fiscal 2019, a total of 44
employees participated in training workshops.

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Environment

Environmental Initiatives:Environmental Management

Environmentally Conscious Design (Product Assessment)

Environmental Training

Rinnai implements product development with a focus on the environment from the planning and design phases based on its

Raising each employee’s environmental awareness is

product assessment guidelines. We are developing equipment with a lesser impact the environment that preceding models

important for promoting environmental activities. Rinnai

by reducing the amount of raw materials required and considering recycling in designs, such as structural designs that

regularly provides training to internal auditors andfacilitate disassembly.

others in charge of implementing environmental

With regard to the use of plastics in our products, we have set a goal to make new products lighter and with a smaller

activities. In addition, we use new employee training andfootprint than previous models as outlined in these guidelines. At the same time, we endeavor to consider how the producttraining for overseas secondees as opportunities towill be taken apart, such as minimizing the use of dissimilar materials in adhesive parts, which are difficult to disassemble.

incorporate programs that will stimulate their interest in
the environment and encourage them to promote
activities that contribute the environment in their

Environmentally Conscious Design Policies

principal occupations.

Environmental training for staff in charge of environmental activities

・Conservation of resources
・Reduce environmental impact at the manufacturing stage
・Reduce environmental impact at the usage stage
・Potential for recycling
・SafetyCompliance with Legal Regulations

・Ease of collection and transport
In addition to complying with legal regulations, the Rinnai Group sets even more stringent voluntary environmental standards
for itself. We conduct daily monitoring, regular measurements, and environmental audits to prevent the discharge of chemical substances hazardous into the atmosphere or to water systems. Despite this, in fiscal 2019, Rinnai subsidiary Noto TechSupply Chain Management
Rinnai engages in global environmental conservation activities based on its basic philosophy on the environment and works

Co., Ltd. submitted an improvement report to the regulators related to exceeding standards regarding drainage water. We
have confirmed that after corrective actions were taken, the results of water-quality analyses continue to be within required
standards.

to provide environmentally friendly products. Environmental activities that extend beyond the scope of our Company andinto our supply chain are important for sustaining our business moving forward. We include examples and suggestions that
we believe could contribute positively to the environment and green procurement in our Green Procurement Standards
Guide, to which we request all of our suppliers comply. Rinnai is working to advance environmental initiatives along with its
suppliers. In fiscal 2019, we understood the status at 350 business partners through a questionnaire.

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Environment

Environmental Initiatives:Climate Change

Climate Change

Major changes in climate patterns due to global warming and other factors are threatening the building of sustainable

Use of Renewable Energy

societies. Rinnai is undertaking initiatives to minimize its energy consumption toward the achievement of the targets it
has set for 2020 and 2030.

The Rinnai Group encourages the use ofrenewable energy, including solar andwind power, at its locations both in Japanand overseas.

Initiatives to Reduce Energy Consumption at Worksites

The total amount of electric power
generated from renewable sources in

Rinnai’s Basic Environmental Activities “7E Strategic Initiatives” target a 4% reduction in the base unit of energy use(*1) by

fiscal 2019 was 410,000 kWh.

Compact wind and solar power generator (Head Office)Solar power generation equipment (Akatsuki Factory)

fiscal 2021 versus the benchmark year. The reduction in fiscal 2019 was 10.8%, so we were able to achieve the target before
the final year of the target. We were able to achieve this target through daily efforts to conserve energy and electricity as well
as stepped-up initiatives to save energy in manufacturing facilities, lighting, and air conditioning, while also working toward
strict loss reductions in each manufacturing process.

Improvements to Logistics*1 Base unit of energy use: Unit standard of energy usage as defined by Rinnai.

As a consigner specified under the Act on the Rational Use of Energy, Rinnai is working to improve its logistics based on arationalization plan it has formulated for energy use. The Group’s products are made at its factories and sold throughout

Efficiency-raising Activities throughFully Integrated Manufacturing (Rectification)

Japan, while some are exported to other countries in Asia, Europe, North America, and beyond. The key to Rinnai’s logistics

use. Promoting rectification in our craftsmanship is leading

Transportation

Stand by

Packaging

Assembly

the Rational Use of Energy and is practicing rational energy

Painting

targets as a business operator specified under the Act onMaterials
Shipment

Sheet metal work

Rinnai has established energy management policies andPressing

network, the Integrated Logistics Center, is working to appropriately manage energy conditions related to distribution andreduce energy consumption by improving logistical efficiency. To cite one example, we are integrating and closing warehousShipment

Inventory

es dispersed throughout Japan to eliminate redundant warehouses and reduce unneeded and non-urgent production whilecurtailing lateral shipping (*2).
*2 Lateral shipping: This refers mainly to the transport of goods mainly between our factories and warehouses; in other words, to sites other than to their true destination (i.e., the customer).

Waste (loss)

to higher productivity and lower total energy consumption.

Primary Initiatives Being Pursued

The Company is conducting loss-reduction activities in

All kinds of losses lead to energy losstransportation, standby and inventory through its fully・Expanding consolidated shipping
within the Group・Reviewing and adjusting productdelivery routes
・Effectively using round-trip shipments
・Using modal shifts (*3)
・Increasing stacking per pallet
・Encouraging eco-driving

integrated manufacturing system, from pressing through tothe assembly and packaging stages.

Primary Energy-conservation Initiatives

・Eliminating wasted energy in assembly tasks
that use make-shift mechanisms
Manufacturing

・Improving usage efficiency in painting anddrying processes
・Optimizing compressor operation
・Integrating manufacturing facilities, other37

OfficeBoth・Removing unnecessary lighting
・Managing air conditioner temperatureand use・Green curtains, etc.
・Upgrading to LED lighting
・Implementing summer dress code earlyand expanding its duration, other*3 Modal shift: A shift in transportation method from trucks tolarge-capacity modalities, such as railway or ocean
shipping.

Rinnai’s Integrated Logistics Center38

R i n n a i C S R Re p o r t 2 0 1 9

Environment

Environmental Initiatives:Resource Recycling

Resource Recycling

From the perspective of intergenerational equity toward the creation of a sustainable society, there is a requirement toIndustrial Waste Processing

consume resources only to the extent that the resource needs of future generations may be met. Rinnai is continually

When reaching agreements with waste processing subcontractors, Rinnai conducts strict inspections involving elements(zero waste disposed of insuch as their financial condition and on-site confirmations. In addition, we visit our processing subcontractors each year tolandfills) and reducing the amount of waste it produces. Furthermore, it recognizes water is a precious resource and isverify that they are conducting appropriate waste disposal. Once there, we confirm how manifests that contain information

working to develop equipment that conserves resources while aiming for zero emissions(*1)

involved in initiatives to reduce water used sourced from both water works and groundwater.
*1 Rinnai’s definition of zero emissions: Recycling rate at manufacturing bases of 99.5% or higher (less than 0.5% going to landfills).

regarding different varieties of waste, their disposal methods, and processing statuses are being administered. We also
conduct on-site confirmations regarding waste processing and exchange relevant information with the subcontractor. In
fiscal 2019, the Company visited 35 locations to verify that proper waste management was being conducted.

Initiatives in energy-saving design:
Taking on the Challenge of Designing a Minimal Weight Grill Box

Initiatives to Reduce Waste Produced at Worksites

Grill boxes are used in grilling in a gas stove. Rinnai undertook a complete review of the shape of and materials used in thisRinnai’s Basic Environmental Activities “7E Strategic Initiatives” target a 4% reduction in the base unit of waste production(*2)

equipment and was successful in significantly reducing the amount of materials required for its manufacturing by cutting theby fiscal 2021 versus the benchmark year. The reduction in fiscal 2019 was 0.8% versus the single-year target of a 2%

number of components and making the metal plates thinner without a loss in strength. In addition, making the assembly

reduction. We were unable to reach our single-year target due to an increase in scrap volume associated with an increase inprocess for these grill boxes more efficient has contributed to a reduction in manufacturing lead time.

production for new products. However, as we work toward the last year of the initiative in fiscal 2021, we are operating under
the key assumption that raw materials deployed in our manufacturing processes will be used without waste. At the sametime, we will strengthen our efforts to turn any waste that does arise despite this once again into useable resources.
*2 Base unit of waste reduction: Unit standard of waste production as defined by Rinnai.

Primary Waste-reduction Initiatives

Manufacturing

・Introducing lightweight designs(reduce the amount of materials used)
・Raising the effective utilization rate forpressed components (increase yields)
・Effectively using leftover materials
・Reducing defect rates
・Raising the recovery rate of residual
chemical agents・Making transport materials returnable
・Eliminating excessive packaging, other

Office・Promoting a shift to paperless work
processes
・Curtailing the use of disposable andconsumable materials
・Raising awareness by letting employees
see how many copies they make and how
much they cost

Both・Improving the accuracy of material
separation
・Consigning industrial waste processing
to a reputable vendor, other

Management of Polychlorinated biphenyl (PCB) Waste

Impact (annual)

・Unifying composite components(to 1 part from 3 parts)
・Reducing metal plate thickness
・Eliminating paint through a change
in materials

・185-ton (18%) reduction in materials used
・Environmental benefits from eliminating paint・400-ton reduction in CO2 emission volume
・190 m3 reduction in water usage
・1,100-liter reduction in paint thinner usage
・Reduction in manufacturing lead time to one
day from 4.5 days
A grill box

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

Record of awards won by Rinnai at the Japan Packaging Contest
DateAward name

Title

The Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes requires that companies such as

October 2003

Electric Equipment Packaging Award

Glass-top built-in gas stove’s environmentally friendly packaging

Rinnai upgrade their storage of PCB, a substance used in transformer oil, and dispose of it by the end of March 2027. We are

October 2004

Logistics Award

Bathroom heater/dryer’s environmentally friendly packaging

October 2008

Electric Equipment Packaging Award

Compact packaging for gas fan heaters

October 2012

Large-sized Equipment Packaging Award Environmentally responsive packaging for the ECO ONE hybrid water heater with heating systems

August 2014

Large-sized Equipment Packaging Award

August 2016

Appropriate Packaging Award Component box with bottom tray for packaging important accessories with main articles

promoting measures aimed at expedient disposal. Until PCB disposal is complete, the Company will implement leakage
prevention measures in preparation for possible equipment failures during storage. We will also diligently lock up facilities toprevent loss and conduct proper labeling.

39

Primary initiatives

Improved, environmentally friendly returnable packaging for gas-powered bath water heaters40

R i n n a i C S R Re p o r t 2 0 1 9

Environment

Environmental Initiatives:Resource Recycling

Initiatives to Reduce Water Usage at Worksites

Managing Drainage Water Quality

In its Basic Environmental Activities (“7E” Strategic Initiatives), Rinnai targets a 4% reduction in the base unit of waste produc-

To ensure that the water we dispose of at drainage treatment facilities does nottion by fiscal 2021 versus the benchmark year. The reduction in fiscal 2019 was 1% versus the single-year target of a 2%

impact aquatic ecosystems, such as those in rivers, we conduct wastewater

reduction. While we fell just short of our single-year target, our water usage is steadily declining at 98.1% compared with the

management with voluntary standards that are more stringent than those required(*)

base year. As it approaches fiscal 2021, the final year of the goal, Rinnai will implement improvements in line with its annual

by law. The Company disposes of water while continuously monitoring pH levels.

plan and will strengthen its measures to save water by promoting its efficient use.
* Base unit of water usage: Unit standard of water usage as defined by Rinnai.

Water quality monitor

Recycling initiatives
Primary Initiatives

At least 80%-90% of the materials used to make gas appliances consist of recyclable materials such as iron and copper.
・Using water-saving functions at facilities that use water
・Creating and using frameworks to increase the volume
of circulating water・Improving awareness of water-saving (banning leaving
faucets running, etc.)
・Utilizing rain water, etc.

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 appliances that 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.
The committee’s surveys include confirmations and exchanges of information on questionnaire formats and confirms
and recycling verification tests at recycling plants as well as the status of disposal. It thus confirms that end-of-life gas and oil
A poster aimed at boosting awareness for saving water (Shikoku Branch)

Assessing and Understanding Water Risk

appliances are being disposed of appropriately and that a high level of recycling rates is being maintained.

Recycling home electrical appliances

As the world’s population increases and urbanization and industrialization continue to progress, there is concern thathumanity may face water shortages. To respond to business risks associated with water, Rinnai is identifying businesslocations with high water risk both domestically and internationally using water risk assessment tools. Rinnai, while focusing
on the risk conditions in each region, views reducing water usage as an opportunity to cut manufacturing costs and is
working to mitigate water risk while also reducing manufacturing costs. In addition, Rinnai is working to protect water

Japan’s Home Appliance Recycling Law went into effect in 2001 with the goals to reduce the amount of waste going tolandfills and incinerators and to promote more effective use of resources. Since then, old appliances thrown out by consumers have been recycled into new products. Rinnai now has two products—a unit-style air conditioner and a clothes dryer—that fall under the category of recycled products.

resources in its supply chain in recognition of the impact water shortages can have on materials supplied by its business
partners. We have therefore set criteria related to water resources in the Green Procurement Standards Guide, which outlines

Recycling containers and packaging

the environmental activities that we ask our business partners to participate in.
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 Company’s behalf.

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Environment

Environmental Initiatives:Pollution Prevention

Pollution Prevention

Some chemical substances can have a negative impact on ecosystems and human health if they are not managed

A 2.6% Reduction in the Base Unit of Hazardous Chemicals Use

appropriately and accumulate as environmental pollution over long periods of time. Aiming to minimize the use ofchemical substances that may affect people and global environments (atmosphere, water areas, and soil), Rinnai

Rinnai’s Basic Environmental Activities “7E Strategic Initiatives” target a 4% reduction in the base unit of hazardous chemicals

conducts management in accordance with both customer demand and each individual country’s regulations through-use (*2) by fiscal 2021 versus the benchmark year. The reduction in fiscal 2019 was 2.6%, versus the single-year target of a 2%

out the lifecycles of its products.

reduction. The use of hazardous chemicals use is declining steadily, at 99.1% versus the previous year.
*2 Base unit of hazardous chemicals use: Unit standard of hazardous chemicals as defined by Rinnai.
Note: Hazardous chemical usage intensity: Usage of hazardous chemicals per standard unit defined by Rinnai.

Promoting Management of Products Containing
Potentially Harmful Chemical Substances
Companies are being required to appropriately understand and manage
the overall supply chain for the chemicals used in their materials andInitiatives to Reduce Usage of Hazardous Chemicals in Water Heaters Sold in
North America

products. Rinnai appropriately manages information concerning products
containing potentially harmful chemicals along with its suppliers. The

We were able to reduce usage of PRTR materials byCompany conducts this management based on its Green Procurement

approximately 20% in heat exchangers used in waterStandards Guide (E-Procurement Standards Guide) and its Chemical
A training session for business partners

Substance Management Guidelines, which address regulatory concerns

heaters sold in North America while maintaining quality
by rethinking the shape of fins used to boost thermal

regarding green procurement and chemical substances contained in

exchange efficiency and the clearance of brazing.

procured materials, respectively.
Impact (annual)
Principal regulations (examples from the EU)

RoHS: Directive on the restriction of the use of specified hazardous substances in electrical and electronic equipment

Approximately 6.5-ton (20%) reductionin brazing material

Water heater designed for
the North American market

Heat exchanger

REACH: Registration, Evaluation, Authorization and Restriction of Chemicals

Preparing for Emergencies
Initiatives to Reduce the Environmental Impact at Factories
To minimize the impact on the environment, Rinnai is reducing

Flows of Release and Transfer
of Chemical Substances (PRTR Substances)and eliminating the use of hazardous chemical substances

Atmosphere

All offices run annual drills premised on adverse events,
such as environmental accidents. To minimize environmental pollution risk, we have also reviewed proce-through such initiatives as reviewing the chemical compounds

dures setting out actions to take in the event of a crisis

used in the relevant manufacturing processes and improving

and have prepared emergency provisions.

processing equipment. At each manufacturing site, we checkand manage the amounts handled, released, and transferred

Products

Chemical
substances

Wasteof the 462 Class 1 chemical substances designated under theAn emergency response drill (RB Controls Co., Ltd.)PRTR(*1) Law, for which 500 kg or more is handled each year.
*1. An abbreviation for Pollutant Release and Transfer Register. The law stipulates that business operators compile andsubmit documentation on the amount of specified chemical substances known to be potentially harmful that has
been released into the environment (into the atmosphere, water areas, or soil) or moved offsite as waste. There aresimilar regulations in other countries. In Japan, the law was established in 1999 and revised in 2009.

43

Water areas

Soil

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R i n n a i C S R Re p o r t 2 0 1 9

Environment

Environmental Initiatives:Protecting Biodiversity

Protecting Biodiversity

Protecting the biodiversity that underpins social sustainability has become an urgent priority for humankind. Recogniz-

Business Activities and Biodiversity

ing 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.

Rinnai is contributing to theRelationship between the Rinnai Group’s Business Activities and Biodiversity

protection of biodiversity through its(e.g., energy, waste, chemical
We have incorporated “consideration for biodiversity” into our ISO 14001:2015 environmental policy and are pursuing action in

substances, atmosphere, water).

accordance with the following principles.
Rinnai Principles on Biodiversity

OutputCO2

Use of mineral
resources

Greenhouse effect gas
Design, manufacturing

Use of energy

Chemicals(fuels, electricity)

NOx
Use of biologicalresources

Raw materials
procurement

Transportationand sale

Soot and dust

Impact on Biodiversity

tal impact in its business activities

Dependence on Ecosystem Services

Approach to Protection of Biodiversity

Business activities

Input

Release into the atmospheredaily efforts to reduce environmen-

Waste

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 tobiodiversity

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

Implementing Surveys of Wildlife Surrounding our Factory Grounds

4. Disclosure of information

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

Discovering more about local nature is the first step in preserving biodiversity. Nature

Use of water
resources

Collection, disposal,
and recycling

Use of products
by customers

Drainage
Noise and vibration

Use of land

rambles around our factories were therefore organized, and 46 species of plant werediscovered. 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 the habitat of native

Signing of the My Action Declaration

species, was discovered in the asphalt joints of a national highway. The ramble
around a familiar landscape gave the participants fresh insights into nature.

3,922 of our employees (equivalent to a 93% participation rate) have signed the “My Action

Invasive species Coreopsis lanceolata

Declaration” backed by the Japan Committee for the United Nations Decade on Biodiversity

Extermination of Coreopsis Lanceolata, a Specified Invasive Species(UNDB-J), and this has 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 in their daily lives and work by following the five actions

Rinnai works together with local government bodies, volunteers, and employees of

specified in the “My Action Declaration” (eating, touching, communicating, protecting, andneighboring companies to collect and dispose of the specified invasive species
Coreopsis lanceolate .

selecting).

Specified invasive species are living organisms that the Japanese government hasdetermined to pose a risk of harm to ecosystems when they are introduced from otherAn example of our main activities:

Rinnai is encouraging environmental communication through the growing of heirloom vegetables.

regions. Their cultivation, preservation, import, transport, and breeding are prohibited. In
My Action Declaration

fiscal 2019, we properly disposed of 180 kg of Coreopsis lanceolate in areas surrounding
our factories that spanned a total of about 2,000 m2. A total of 63 representatives

Extermination work (Komaki City, Aichi Prefecture)

participated in this activity, which Rinnai intends to expand moving forward.

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Environment

Environmental Initiatives:Environmental Communication

Environmental Communication

We use regular communication and exchange events as a means of building awareness of the Rinnai Group’s environ-

Factory Tours

mental activities in order to deepen our ties with and be a trusted member of our local communities. Furthermore,
Rinnai sets June as Environment Month and holds various environment-related events to further enhance the environmental consciousness of its employees.

Rinnai is conducting factory tours to inform the public about its
various endeavors, including its environmental activities. We areproviding tour participants with the opportunity to understand more

Rinnai Wins Award of Excellence atthe Environmental Human Resources Development Corporate Awards

about our environmental initiatives, quality control, safety policies,
and manufacturing by allowing them to view our facilities and by
conducting Q&A sessions afterward.

In recognition of its initiatives to develop environmentally

A total of 5,882 visitors participated in our factory tours in fiscal 2019.

conscious employees, Rinnai received the Award of Excellence

Scene from a factory tourat the 2018 Environmental Human Resources Development
Corporate Awards, sponsored by the Ministry of Environment
and the Environmental Consortium for Leadership Development(EcoLeaD). This award is designed to recognize the importance

Rinnai Group Environmental Awards Programsof company management with a focus on the global environment and encourage those companies who are fostering
employees (i.e., environmental human resources) who work

The Rinnai Group Environmental Awards are held annually totoward that end on their own initiative.
The judges evaluated Rinnai for producing results from its
myriad initiatives, such as basically implementing environmental

2018 Environmental Human Resources Development Corporate Awards ceremony
Left: Tokutaro Nakai, Director-General for Environmental Policy, Ministry of the Environment
Right: Kinji Mori, General Manager of Rinnai’s Environmental Division

education for all employees and periodically publishing an

recognize outstanding environmental activities and stimulate moreaction on the environment throughout the Group. These awards
recognize major contributions to the environment and society, andenvironmental in-house newsletter as well as its CEO award

are open to all our operations in Japan and around the world. The

program, challenge declaration, and environmental protection

ninth awards ceremony was held at the Rinnai Group New-Year

activities at the regional level.

Convention, at which Rinnai’s CEO presented the awards.
Award ceremony

Exhibit at Eco Products
The Company has taken part in the Eco Products exhibition
since 2013, the environmental exhibition hosted by Nikkei Inc.
and the Japan Environmental Management Association for
Industry. During Eco Products 2018, nearly 2,000 elementaryand junior high school students visited our booth to learn
about the energy used in homes and our environmental andenergy-saving products.
ECO ONE presentation at Rinnai’s boothExchange 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 andinformation.
Visit to one of the pioneer companies

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Environment

Environmental Initiatives:Environmental Communication

Publication of In-house Environmental
Newsletter Eco no Coe

Safe and Eco-Friendly Driving Initiatives

We publish a regular in-house environmental newsletter Eco no

We have introduced a system*1 for quantifying and centrally manag-

Coe to keep our employees around the world up to date with theing fleet operations at our sales offices and other relevant operations,Group’s own environmental activities and environmental trends

and are also working to make employees more aware of how theyelsewhere in Japan and other countries. This newsletter has

can drive in a safer and eco-friendly manner. In addition, anti-idlingbeen published since 1999 as a means of raising environmental

reminders have been posted in Rinnai’s parking lots encouraging
employees and business partners to cooperate in eco-driving.

knowledge and awareness and encouraging communication on
the subject among employees. In fiscal 2019, the topics of SDGs,*1 The system is designed to automatically email managers if a driver drives too fast, accelerates rapidly, or
The in-house environmental newsletter Eco no Coe , Vol. 57

brakes suddenly.

Anti-idling reminder (Chugoku Sales Office)water risks and “COOL CHOICE” were covered.

Activities to Raise Environmental Awarenessthrough Cultivation of Heirloom Vegetables

Encouraging Eco-Friendly Commuting

We planned and held an “Heirloom Vegetable Seed Application
Campaign” in which we distributed a variety of heirloom vegetable

The Technology Development Center encourages employees toseeds from Aichi, which have been popular in Japan since the Edo

voluntarily commute in an eco-friendly manner by designatingera (1603–1868), to a total of 857 applicants.

certain days as “no car days.” On these days, employees come toThis campaign provided each participant with the opportunity

work by public transport or bicycle in order to reduce CO2 emissions

to try his or her hand at growing heirloom vegetables while learningand the noise pollution caused by traffic congestion near the center.

about regional food culture and nature and becoming more familiar
with greenery in general.

Bike racks at the Technology Development Center

Harvesting vegetables (Technology Development Center)In fiscal 2018, heirloom vegetables were planted on the
grounds of the Technology Development Center and the harvested
produce distributed to those interested.

Initiatives to Promote Environmental AwarenessRB Controls, a Rinnai Group company, is implementing a Light Down

Cleanup and Greenification
Activities around Company Sites

Campaign, in which all office lights are turned off on the day of thesummer solstice. In addition, the company encouraged employees toGroup employees periodically engage in cleanup and greenification

participate in Candle Night on the same day to provide the opportunity

activities around the Group’s factories and along their commuting

to think about saving energy and conserving resources not only in theroutes to help look after the natural environment around its opera-

office, but at home as well. Original candles were distributed to those

tions. A total of 3,084 employees took part in fiscal 2019.

were interested—60 people took part—with the aim of turning off alllights and thinking about the environment in a quiet atmosphere under
A scene from a cleanup session Cleanup activity

49

the glow of candlelight.

50

Linkage with SDGs

Unwavering focus on preventing
malfunctions and building products thatare resilient to natural disasters“Quality is our destiny” is the fundamental concept of the
Rinnai Group and this guides our endeavors to deliverproducts to our customers that provide them with safety
and peace of mind through monozukuri (craftsmanship)
aimed and securing high quality. We aim for zero defects(ZD) (see Note 1) in all processes in the product lifecycle toSpecial Issue

03 [Approaches to safety and peace of mind]

Approaches to providing customers withsafety and peace of mind by improving thesafety functions of our gas stoves

ensure that our products continue to offer safety and peaceof mind from the time they debut on the market, they areused by customers, and through to the end of their useful
lives. Rinnai’s related departments work to enhance quality
in all their business activities toward this end.
In addition, “consumer safety and improving quality” is
one of the materiality targets in Rinnai’s CSR activities anda key target is “Zero cases of defects that lead to recall
notices”. In fiscal 2019, we achieved this target with zerocases occurring.
We take exhaustive measures to prevent the kind of
defects that result in recalls. At the same time, we areconstantly working to develop products that provide
customers with safety and peace of mind by improving theirconvenience and safety features during times of disaster,such as hot water heaters that operate even under power
outages and gas stoves that shut the gas off automaticallyduring earthquakes of intensity 4 or higher.
Note 1:	Zero defects (ZD): No defects, no inferior products, no faults

CSR materiality target indicator
Zero cases of defects thatlead to recall notices
Fiscal 2019 results:

51

0 cases52

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

03 [Approaches to safety and peace of mind]

Approaches to prevention of fires through the diffusionof Si sensor stoves
Gas stoves are the source of most fires that occur in the home, and it is said that inJapan many such fires are caused when using oil to deep fry the Japanese dishtempura. Fires not only destroy precious assets, but in a worst-case scenario they
can lead to fatalities.
To help prevent kitchen fires in Japan, it has been legally mandatory for all
burners on gas stoves made after 2008 to be fitted with safety sensors (see Note 1).
We have been working to prevent fires with safety technologies, namely “oiloverheating prevention devices” and “flame-failure devices,” which are compliant withgovernment standards. In addition, our gas stoves are equipped with convenient“support” functions that assist in cooking and are called intelligent “Si sensor stoves”
that take fire prevention to the next level.
The number of fire cases caused by gas stoves has been steadily decreasing
every year thanks to the proliferation of gas stoves with Si sensors. The number ofcases of fire caused by gas stoves was previously over 5,000 per year, but that had
decreased to approximately 2,600 per year in 2017. The proliferation of gas stoves
with Si sensors increased to an approximately 59% share of the industry.
Building on over a decade since the debut of Si sensor stoves, Rinnai not only
meets government mandated standards but also has developed and installed suchproprietary functions as those that turn off the gas to prevent food from being burned
onto pots and pans and automatic high-temperature adjustment and thus provide
products that are even more safe and convenient.
Note 1:	Household gas stoves have become subject to government-designated regulations (indication of PSTG or PSLPG) by theGas Business Act, and the Act on Securing Safety and Optimization of the Transaction of Liquefied 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.

Number of cases of fires caused by gas stoves and rate of adoption rate ofgas stoves with Si sensors (see Note 2)(Number of fires)
6,000

(%)
100
■ Number of fires

5,000

ー Adoption rate of gas stoves with Si sensors

4,000
3,000

50

2,000
1,000
0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

0
2017 (Year)

Note 2: Fire Prevention White Paper, Ministry of Internal Affairs and Communications
	Based on shipment statistics from the Japan Industrial Association of Gas and Kerosene Appliances and the number ofhouseholds in Ministry of Internal Affairs and Communications statistics, Rinnai has compiled the adoption rate of gas stoves
with Si sensors.
Oil overheating prevention device (temperature sensor)

Flame-failure device

53

54

R i n n a i C S R Re p o r t 2 0 1 9Special Issue

03 [Approaches to safety and peace of mind]

Automatic shut-off sensors during earthquakes of intensity 4 or higher havebeen adopted in volume zone models

Control board for a gas stove containing an earthquake detection program

To overcome this, Rinnai conducted repeated tests
to enable the sensor to discern vibration of the gas stove
during daily life and from earthquakes. After spending
considerable time, we were able to develop programmingthat made earthquake detection with an accelerometer
possible. In addition, the use of an accelerometer inearthquake detection has improved the detection
accuracy of long-period vibrations, which had previously
been difficult to detect.
There are some issues remaining in the expansion
of “Yure Pita” functionality, such as the need to improve
earthquake detection accuracy in tabletop gas stoves,which are installed in a variety of environments. However,
we will continue to incorporate new technologies andwiden the application of “Yure Pita” functionality as part ofour endeavors to improve the safety functions of our gas
stoves.

A three-axis accelerometer used todetect shaking caused by earthquakes

Mytone, a built-in gas stove in the mass-market price segment

Some Rinnai gas stoves have a function called “Yure Pita,” which automatically extinguishes flames when the unit detects
earthquakes of intensity 4 or higher, in addition to the safety functions of the Si sensors, and thus enhances safety during
earthquakes. To boost the safety of gas stoves against earthquakes, which have become more prevalent in recent years,
Rinnai has worked to overcome a range of issues and in 2018 added the “Yure Pita” function to its Mytone line of massmarket built-in gas stoves.
Up to now, the “Yure Pita” function was installed within the gas stove’s earthquake stoppage device. It worked byautomatically shutting off the stove when a steel ball moved from its fixed position within the device due to an earthquake.
Yet this method resulted in higher product prices and therefore we were only able to add this functionality to upper-end
models.
To also add advanced functionality in our mass-market models, we changed the detection method for shaking caused
by earthquakes from physical earthquake detection using
Change in earthquake detection method
steel balls to detection with digital processing using a threeaxis accelerometer. By incorporating an earthquake sensor+Z+Y+X
in the control boards of the gas stoves, Rinnai was able toreduce the costs of introducing this functionality and made its
adoption possible in mass-market models. There were also-X-Yvarious issues with using a three-axis accelerometer to-Z
Steel balldetect earthquakes. In particular, the sensor would mistake(Previous)(Following change)
vibration caused by frying pans and the like during cooking
Earthquakes detected throughEarthquake detected
the movement of a steel ballwith digital analysis using a sensor
for an earthquake and turn off the flames.

55

Bringing safety features and quality developed in Japan to overseas markets
We are expanding the safety functions in our gas
stoves to overseas markets, particularly to China,
South Korea, and other parts of Asia. Temperature
sensors became mandatory in gas stoves sold inSouth Korea from 2014. In China, there has been
rising demand for gas stoves with temperature
sensors in tandem with higher living standards
brought on by economic growth. In 2019,
Shanghai Rinnai developed an original model
drop-in gas stove with temperature sensors ineach hob.
Rinnai is bringing safety features developedin Japan to overseas markets and the high-quality
products that embody a focus on craftsmanshipto customers around the world.

A drop-in gas stove developed by Rinnai Korea with temperature sensors in each hob

A drop-in gas stove with temperature sensors in each hob that is an original model of
Shanghai Rinnai

56

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

Ensuring High-Quality through Manufacturing
Rinnai concentrates on enhancing manufacturing quality by emphasizing quality control
activities and quality-oriented proposals. We search for unnecessary or wasteful
manufacturing processes and systematically work them out, aiming to improve ourmanufacturing efforts on a day-by-day basis. In addition, the Rinnai Group bases its
manufacturing on its philosophy of developing human resources. We train humanresources that can continue implementing the ideologies, techniques and technologies
that Rinnai requires from its employees. Rinnai and its Group companies proactively
conduct quality control (QC) group activities aimed at enhancing each individual
employee’s problem-solving capabilities and realizing organizational revitalization. Eachyear in September, awards are presented at the Company-wide QC Group Conference
in recognition of outstanding QC group activities.
Rinnai distributes its ZD Manufacturing Activities brochure, which consolidates theCompany’s basic rules concerning quality, to all Group employees involved withdomestic manufacturing. We continuously revise our quality assurance rules andcountermeasures when we discover flaws or defects and create new rules to prevent
mistakes from recurring. In addition, we promote the transmission of our technology
from generation to generation and push for stable quality assurance. Finally, we also offer
long-term training in Japan for local employees working at our overseas bases. By
offering this instruction, we have created a system through which employees can study
the Company’s craftsmanship and create high-quality products that provide safety andpeace of mind both domestically and internationally.

ZD Manufacturing Activities brochure,which consolidates the basic rules
concerning quality

57

Company-wide QC Group Conference58

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

Smooth Provision of Information through the Internet

After-Sales Services

Rinnai provides various types of information through its corporate website and product information websites. We also

To realize a “comfortable way of life” for all our customers, Rinnai is engaged in the provision of services that enable our

support display optimization for browsing on smartphones and other mobile devices in an effort to smoothly provide

products to be used with peace of mind.

information in consideration of customer internet utilization circumstances.

Microcomputer Meter Reset Process Introduction

Prompt After-Sales Services

In the event of an earthquake having a seismic intensity ofApproximately 630 servicemen across Japan repair Rinnai equipment. Confirming the status of service request fromfive or greater, the microcomputer meter automaticallycustomers on portable terminal devices, servicemen make an effort to complete inspections on the same day or by the next

switches off gas lines. After an earthquake has occurred,

day to provide prompt after-sales services supporting a “comfortable way of life.”

the steps necessary to reset the microcomputer meter are
quickly published on the Rinnai corporate website to easily
enable the reset of the microcomputer meter when it isServiceman Questionnaire

safe to do so.

Assessment by Postcard

Degree of customer satisfaction with repair services

98.3

Condition of equipment after repair

Customer feedback questionnaires are provided toTelephone response before visit

customers requesting repair services. This question-

Courtesy, attitude and language

naire assesses repair visit response times and other

Greetings and display of identification

factors determining the degree of customer satisfac-

Prior explanation of problem or issue

tion with Rinnai repair services. Customer assessment

Description of repair details

results are provided as feedback and the results ofCleaning up after repair and maintenanceUsing products for a long period of time can result in fire or injury caused by the deterioration or wearing of parts. Further-questionnaires are utilized effectively throughout the

From repair request to completion of repair

more, incorrect usage can result in malfunctions or injuries. To ensure customers use our products in a safe manner, Rinnai

Company. In fiscal 2019, 21,000 customers completed

Comprehensive evaluation of service response

provides warnings and displays in user manuals and on the products themselves that are useful for avoiding accidents

questionnaires, which rated our after-sales services ancaused by misuse or carelessness. We also publish detailed examples on our corporate website, in an effort to provide

average of 94.4 points.

Microcomputer meter reset process introduced on the Rinnai corporate website

Posted Reminders for Safe and Correct Product Usage

93.2
94.7
91.8
92.5
98.3
91.8
94.6
94.7
88

90

92

94

96

98

100
（points）

information that is easily understandable and draws attention in order to prevent product-related accidents.

Storage and Provision of Service Parts
Product-Related Accident Information Disclosure

As a general rule, we supply gas appliance components for five to 10 years after the end of production, and in some cases formore than 10 years. The establishment of a system able to quickly deliver parts when needed is indispensable for after-sales

In the event that a serious product accident occurs with a Rinnai product, we will promptly report the incident to the relevant

service enabling customers to safely and comfortably use gas appliances over the long term. The Rinnai Parts Center,authorities in accordance with the law. We will also proactively disclose all details directly to customers on our corporate

where parts are stored and shipped, maintains a large inventory of parts that uses a system to pick, pack and ship items. It is

website to notify and alert customers as quickly as possible in accordance with the severity and scale of damage.

critical that we not make any mistakes regarding part type or quantity and that we deliver items by the due date. We promote
efforts to enhance quality that include the documentation of work in a standardized document format and work guidance
based on a brochure comprising our basic rules concerning quality.

59

60

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

Inquiries Response and Support System
In line with our basic philosophy “quality is our destiny,” Rinnai satisfies customers by “responding to requests and consultations in a sincere, prompt and accurate manner” under the policy of “providing customers with satisfaction, safety andreliability.”

The Customer Center handles inquiries from customers via toll-free telephone numbers and emails. In fiscal 2019, approximately 890,000 toll-free calls and 15,000 email inquiries were received.
According to comments and assessments from customers in the fiscal 2019 customer questionnaire, 79% of customers
complimented Rinnai on the politeness and promptnessof our response to their inquiries. Comments that were

Basic Policies

critical of our response are provided as feedback and1. We recognize customer opinions and requests to be the highest priority issues in all
Rinnai departments.

used to improve our services.

2. We understand that customer complaints impact the entire Company, thus we takeultimate responsibility for the entire organization.
3. We take customer feedback seriously, share it internally and use it as a valuable sourceof information to provide better products and services.
4. We will always comply with laws and regulations and remain resolutely opposed tounreasonable requests.

Customer’s Inquiries

5. Customer personal information is strictly protected in accordance with relevant laws andregulations and our personal information protection regulations.

Rinnai Customer Center

Parts1%Other9%Complaints1%

Other inquiries and opinions7%

Catalog requests1%

Industrial1%

Construction methods
Air conditioners

Customer Center

7%

Inquiry
classification

Kitchens

4%

37%(Fiscal 2019)

Inquiry details
Replacement purchases

11%

Repairs and parts45%(Fiscal 2019)website. Much of this valuable informationfrom customer is provided as feedback to
all departments as it useful for identifying
and reviewing issues related to productCustomerCenterConsultation
desk

Analysis ofcustomerfeedback
Identification andanalysis ofimportantquality issues

development, quality control, and sales andservice improvements.

Service system enhancements

Executives
Analysis and identification results

the telephone or through our corporate

Customers

and requests directly from customers over

Consultation
desk

Daily information(CS). We receive various inquiries, opinions

・ General product inquiries
・ Repair requests

aim of increasing customer satisfaction

・ Customer consultations
・ Technical consultations

We created the Customer Center with the
Hot water supplies

45%

Product inquiries

31%

Relevant
departments

Frequently Asked Questions (FAQ)
Feedback to
manufacturing
divisions
Information
sharing

In response to customers who want to solve problemson their own, we created a FAQ page on our corporatewebsite. In April 2019, we updated this content, making iteasier to search.

FAQ (Japanese language only)

61

62

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

Initiatives for Inspections

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

Indoor instant gas
water heater

Indoor bath heater withgas burner

Built-in dishwasher

Course of Events Leading up to Inspections under the Product Safety Inspection System for Long-Term Use

Customer receives an explanation
regarding the system at time ofpurchase

In April 2009, Rinnai put its product safety inspection system for long-term use into effect to comply with revisions to theConsumer Product Safety Act. We offer notifications regarding legal compliance inspections for customers who registered
their products in accordance with this system once they reach their 10th year of use. This system aims to encourage

1

2

Explanation
regarding thesystemOwnerregistration

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

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

customers to have their products appropriately inspected and maintained before they deteriorate and failure rates rise. To

4Application
for inspection

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

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

maintain products through maintenance and replacement, we provide safety inspection guidance regarding our outdoor

6
Inspection

Personnel visit thecustomer’s homeand conducts
inspection on theappointed day

water heaters in accordance with laws and ordinances. Additionally, we recommend that customers who regularly use
target products receive inspections and make sure they
Additionally, the Company will further inform customers about its inspection system through the provision of information onunderstand that these products have standard lifespans.
The Rinnai Group aims to enhance its maintenancecheck system, which employs qualified personnel toconduct appropriate inspections. At the same time, we offer
unique services, such as extending product warranties forcustomers who registered their household hot-waterequipment with us for an additional three years. We are also
striving to make it possible to inform even more customers
about inspections.

63

Maintenance and Inspection
System of Long-Term Use
Products
Product safety inspection
system for long-term use
Legal inspections
conducted in accordancewith the Consumer Product
Safety Act

prevent mishaps caused by product degradation.
From 2016 until 2017, before full-scale inspections began, we performed updates on our maintenance check manage-

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

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

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

the Rinnai corporate website as well as consultations through a maintenance check call center. These initiatives will help

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

ment system. These updates improved our system, allowing us to smoothly respond to customer demand by creating acentral management that can handle individual customers’ needs. Full-fledged inspections began in fiscal 2019, and we will
strive to achieve even further customer understanding regarding product inspections. To this end, we have created an
Inspection System Handbook and released it publicly through our website.
Additionally, we will continue to further inform customers about our inspection system by offering consultations througha maintenance check call center. This initiative will help prevent mishaps caused by product degradation.

64

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

About Inspections

Five Basic Inspection Work Focus Areas and Rinnai’s Response
Five Focus Areas

Inspection work is carried out based on established inspection procedures. The accuracy of the inspection is managed by・From appointment to completion of inspection, all work conductedaccording to the inspection manual to promote higher CS

checking the total number of work slips submitted to the customer and double checking to automatically check whether the
input data is correct when it is entered into the dedicated system. In addition to explaining the details of inspections tocustomers, we also explain available options that customers should take into consideration in accordance with the inspection results. In the unlikely event that a product is deemed unsafe to use, details regarding follow-up inspections are mailed at

Quality inspector,
1

Qualityquality support,

inspection

legal compliance,
inspector reporta later date in an effort to prevent accidents. We strive to improve the quality of inspections through efforts including instruct-

・Check progress of inspection to ensure appropriateness, confirm all
inspection work to prevent inspection errors
・Train qualified inspection personnel through skills management, regulartraining and technical support for inspection engineers
・Engage in customer safety activities such as alerting customers after
inspections whose equipment is prohibited from usageing inspectors based on statistically managed data.

2

Customer
focus

Customer Feedback Regarding Inspections

Reflecting actual
usage and customer
feedback into products

・Customer feedback is collected at the time of inspection and is incorporated
into the inspection system and products
・Website content expanded and manual updated to provide appropriate
information to customer inquiries received by telephone

Among inquiries from customers, many are of the opinion that inspections are obligatory, or free of charge, or unnecessary
because the gas company already conducted an inspection. For these reasons, Rinnai strives to raise awareness when
conducting inspections to ensure customers receive inspections with peace of mind.
There are also situations where customers who have scheduled inspections request cancellations, thus we promote a
deeper desire for inspections among customers who intend to prevent accidents caused by deterioration over time and use

Rinnai’s Response

3

Customersatisfaction

their products for as long as it is possible to do so.

Appropriate andpolite provisionof information, etc.

・When making an appointment for inspections, we not only provide
explanations based on legal compliance and appropriate treatment
standards, we also conduct a preliminary survey, and if there is a possibility
that the equipment is no longer usable, to reduce the inconvenience tocustomers before the inspection, we offer the customer the option of
inspection, repair or replacement
・When registering a new product, we send confirmation of registration andask that customers confirm the information they submitted, establishing ameans of providing appropriate information such as a survey in the event
notification was not received. With regard to products that will require
specific maintenance with the enactment of new laws, we also send
notifications to customers and request that they register their products

Future Initiatives
Provide safety

Traditionally, manufacturers have been mainly engaged in activities such as the development, manufacturing, sales, and4

Safetyguidance before

guidance

product failure,

repair of products. However, since the establishment of the inspection system, manufacturers have also become involved in

not after

・We provide guidance so that products are inspected before they fail or after
the inspection date has passed to prevent degradation. If there is no
response from the customer, inspection notifications are mailed again one
year later (targeting products requiring specific maintenance)

inspections and other customer safety activities.
In order to prevent product-related accidents due to deterioration over time, it is necessary to understand the recently
introduced inspection system and further strengthen inspection-related efforts. Nearing the time when full-scale inspections
are required, the number of inspections substantially increases. Utilizing the results of inspections to understand how
equipment deteriorates over many years of usage, Rinnai will make an effort to strengthen its customer safeguard systems
and reflect this understanding in future inspection notifications.

65

Based on5

Establish

appreciation fortrust

many years
of product usage

・For customers thinking about purchasing a Rinnai product, we provide
detailed information regarding our maintenance system in our catalogs andon our corporate website. A registration completion notification is mailed tocustomers when they register their product, and in the unlikely event of
repairs, the warranty that began at registration is extended (applicable tohome gas appliances). When nearing the inspection date notifications aresent, with follow up notifications sent one year later (targeting products
requiring specific maintenance) as well as a notice regarding legally
mandatory maintenance one year after maintenance is conducted(targeting products requiring specific maintenance). These activities areuseful for ensuring customer safety and security when using our products
starting as soon as they make a purchase66

R i n n a i C S R Re p o r t 2 0 1 9

Safe and secure

Safe and Secure Initiatives

Inspection System Maintenance Items Required by Law and Rinnai’s Response

Efforts to Coordinate an Inspection System
To adequately implement inspection, our Product Inspection Center keeps improving its inspection system. In addition to thelegally required check points of an inspection system, we also set up voluntary monitoring items to facilitate a reliableinspection system.

Voluntary System Action Items and the Current Status
Action Items

Rinnai’s Current Status

Enhancement of provision

We post the detailed information on maintenance and inspection system for ourof information

products for a long period of time on our website.

“Law” refers to the “Consumer Products Safety Act” and “Ministerial Ordinance” refers to “Ministerial Ordinance on Ministry of Economy,
Trade and Industry-Related Specific Maintenance Products.” Information is as of March 31, 2019.

Applicable Law

System Maintenance Items

Details

Law: Article 32-19 and
18-1
Ministerial Ordinance:
Article 13-1

Establish inspection offices

Arrange offices appropriately to ensure
efficient implementation of inspections.
Secure engineers for each office.

Law: Article 32-19 and
18-1
Ministerial Ordinance:
Article 13-2–4

Public display
and notificationof establishedinspection costs

Establish costs that do not significantly
exceed the appropriate cost when
the inspection is conducted efficiently,
publish standards for determining inspection costs, and give prior notice ofcosts before the inspection, including
the breakdown of the inspection costs
and notification of the standards for cost
determination.

Law: Article 32-19 and
18-2
Ministerial Ordinance:
Article 13-5–6

Preparation andmanagement of
guidance necessary for inspection

Law: Article 32-19 and
18-3
Ministerial Ordinance:
Article 13-7–8

Ownership ofmaintenanceparts and provision of information

Establish and maintain a maintenanceperiod. Prior to inspection, notify customer with regard to the maintenancestatus.

Law: Article 32-19 and
18-4
Ministerial Ordinance:
Article 13-9

Providing information about
items during theinspection period

Make this information available to readon the internet

In addition to the items of which inspection is legally required (specified
Enhancement of items

products that require maintenance), we set safety inspection products, includ-

to be inspected

ing home-use outdoor gas hot-water units, built-in-stoves, gas fan heaters, gas
clothes dryers, and gas fanned flue heaters.

Inspection quality
improvement

Warning after the inspection

monitored all the time not to delay the inspection schedule.

When an inspection result concludes the prohibition of the use of a product, we
will provide the follow-up of the inspection by calling or writing to the user.

Law: Article 32-19 and
18-5
Ministerial Ordinance:
Article 13-10
Law: Article 32-19 and
18-5
Ministerial Ordinance:
Article 13-11

Law: Article 32-19 and
18-5
Ministerial Ordinance:
Article 13-12

67

Inspection offices: 81 locations across Japan
Certified inspectors: 619 people
Standards for determining inspection costs,
inspection costs and contact information is published on the Rinnai corporate website

Notification: Sent when request for inspection isreceived.

12 types of guidance have been created (gasappliances: 10; electrical appliances: 2)
Prepare guidance based on inspection
standards and store with a third-party
organization.

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

Rinnai’s Response

Implement technical training

Regularly hold technical seminars, conduct courses for contractors and takemeasures to ensure technical standards.

Record inspection results

Record inspection results and store
them as a guide for three years.

Guidance is managed as follows:
Gas appliances: Japan Gas Appliances Inspection Association (JIA)
Electrical appliances: Japan Electrical Safety &Environment Technology Laboratories (JET)
Maintenance period: Conducted from 9–11 years
after production.
Notification: Sent when request for inspection
is received. Information regarding maintenanceparts are also published on the Rinnai corporatewebsite.
Information regarding maintenance schedules
for products is provided on the Rinnai corporatewebsite (searchable by model number). This information is also listed in the product catalogues.
Technical training: Inspection certification training provided to employees.
Ensuring technical standards: In addition to evaluating skills at technical seminars, we conduct
qualification renewal management and skill enhancement training.
Inspection results are recorded on written inspection result statements.
Results are stored for seven years

Convey inspection

Inform the customer who requested theinspection of the results in an appropriate manner.

Communications: Written inspection result
statements are provided to customers. This
report indicates options available based on the
results of the inspection. Moreover, customers
are informed if frequent inspections are required,and in the event the use of a product becomesprohibited, the inspection will be followed up by aphone call or in writing.

68

R i n n a i C S R Re p o r t 2 0 1 9Communication with Stakeholders

Communication with Customers

Taking Advantage of the Internet to Enhance Customer Support

Customer Satisfaction Research and Product andService Improvements

We supply care products and user replaceable parts via our
R.STYLE online shopping site to help our customers get themost out of their purchases for as long as possible.
The site started in October 2006 an online shopping site forgenuine parts for Rinnai products. The range of offerings isbeing 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 for

R.STYLE online shopping site (Japanese language)

contact with users of our products. To keep in touch withmembers’ 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 thatthey raise. We will continue to expand direct contact with customers in our quest to deliver better service.

Gas tabletop cooker HOWARO, sold online only

Developing More Intimate Communication through the Living Information Column
HOWARO, launched in December 2011, is a gas tabletop cooker sold only on the internet using white as the main color tobrighten kitchens. A survey was conducted among customers who purchased HOWARO aimed at improving Rinnai
products and services.
Among responses pertaining to requests and improvements, manycustomers indicated that they “want a double-sided grill” as well as an“enhanced cooking function.” We discovered that customers want models that
more closely align with their lifestyles, including more convenient functions andhigher cooking abilities even among tabletop cookers using white as the maincolor.
In response, we added the HOWARO C plus with an auto-grilling function
in October 2018 and the HOWARO C with a temperature adjustment functionin December 2018 to our sales lineup for a total of three compact models forcustomers to choose from in line with their lifestyle stage, which resulted in aneven greater number of people incorporating the HOWARO series into theirlives.

The Rinnai Group established R.STYLE column(“Rinnai-style column” site). This site provides pertinent living
information with the goal of achieving ongoing communication with customers who use Rinnai products.
In creating the site, the Company placed particular importance on making it easy to read on smartphones and whilemoving around, so its columns can be freely read during
periods of relaxation in between household chores.
The site provides wide-ranging content closely related
to our daily lives, containing diverse information related tocleaning, tidying up and storage, cooking, and laundry and

R.STYLE column (Japanese language)ironing. It also contains columns that aim to eliminate
concerns regarding housework, and to share specialized expertise and information regarding new discoveries.
The Group will continue to endeavor to operate a column site that offers rewarding and satisfying articles which will always
bring its readers back for more.

69

70

R i n n a i C S R Re p o r t 2 0 1 9

ステークホルダーとのコミュニケーション

Communication
with Business
Partners
ビジネスパー
トナーとのコミュニケーション

Rinnai Group Purchasing Policy

Training
Aimed at Improving
Productivity and
生産性・改善能力向上を目的とした研修会の実施
Improvement Capabilities

To grow along with our suppliers, we emphasize transac-

The
Rinnai Purchasing Department conducted training
2018年7月23日から26日にかけて4日間、当社
on production site improvements for partner companies
購買部が主催する協力会社様向けの製造現場改善
over a four-day period from July 23–26, 2018.
の研修会を行いました。
The Rinnai Production Engineering Department led
the当社生産技術部が講師役となり協力会社14社22
training, which was attended by 22 people from 14
different partner companies. The first two days of training
名の方にご参加いただき、最初の2日間はライン長
were for line managers and the remaining two days were
向け研修、
（IE）
研修を行い、
focusedon 後半2日間は生産工学
industrial engineering (IE),
which
served to 当
deep
understanding among both Rinnai and partner
社と協力会社様双方で製造現場の改善に向けた理company personnel with regard to production site
解を深めました。
improvements.
※1、
( 1)
3S5定
品質、
生産計画立案、IE手法などを実習* , quality,
Participantslearnedabout 3S5 Sets
production
planning,
and
other
subjects
through
を通して学んでいただき、協力会社様の製造現場へ
practical training. The event was highly evaluated by
スムーズに展開できる研修とし、多くの参加者から高many participants as it is able to be smoothly deployed
評価をいただきました。
atpartner company production sites.
In addition to workshops, some partner companies※1 主に製造現場の標準な状態を維持する改善手法。
：整理・整頓・清掃 in5定
：定位置・定姿
・定量・定品・定時
also3Sparticipatedinternal
eventssuch
as screwmaking contests and lift contests, as Rinnai made every
協力会社様には研修会以外にも、
ビス打ちコンテ
effortto create an environment where everyone
could
grow
togetherwithaspiritofcoexistence
andmutualストやリフトコンテストなどの社内イベントにもご参prosperity.
加いただいており、共存共栄の精神でともに成長で* 1: Improvement method for maintaining standards mainly applicable to production sites. 3S: Sorted,
Straight, and Sanitary; 5 Sets: Set position, set form, set quantity, set product, and set time

きる環境づくりに努めています。

Rinnai Group Purchasing Policy

tions based on a fair and impartial assessment andselection process and respect for laws and regulations

We will give equal opportunity to all companies atand corporate principles, in accordance with the Rinnai

home and abroad and undertake fair evaluations toGroup Purchasing Policy.

procure excellent parts that meet our requirements.

Rinnai’s Stance on the Relationship with Its Business Partners
Our suppliers provide us with the raw materials and manyof the components that go into the products we make.
They are business partners indispensable to the creation
Training
related to the 3S5 Sets
3S5定に関する研修of products that attract consumers to the Rinnai name. At

Provide appropriate
information

RinnaiCommunication

Monozukuri
supportRinnai, we believe that building stable, long-term relationships with our suppliers and growing with them as theygrow with us is vital to the creation of better products.

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

Resultsec ti v

prod

ra
att
te CooperationaeCr
Improve quality,
reduce costs

ucts

Products,
monozukuri proposals

Suppliers

Realization of Fair-and-Square Transactions
In accordance with the Rinnai Code of Conduct in the Rinnai Group Code of Ethics, our supplier acceptance process isapplied uniformly, whether the company is a long-time supplier or seeking to become a supplier. Our evaluations are fair,
giving equal opportunity to any and all companies with the right stuff, whether at home or abroad. Essentially, the divisions
involved in procurement—that is, divisions responsible for technology, quality, and purchasing—consider all factors,
Productivity
improvement training using a mock assembly line
模擬組み立てラインを用いた生産性向上トレーニング

including quality, price, and delivery as well as the potential supplier’s technological capabilities, safety, and its environment-oriented activities, in reaching an impartial, well-considered decision.

Communication with Our Business Partners

VOICE
VOICE
Development of Younger Employees through Training
研修を通し若手従業員の成長につなげる

We provide opportunities for suppliers to learn more about our perspective on quality and the basis of monozukuri at

Some of our younger employees participated in the line manager and industrial engineering (IE) training
今回、当社の若手従業員が製造現場改善を目的として「ライン長研修」
「生産工学
（IE）
研修」
に
to improve production sites. In this training, participants engaged in foreman training aimed at ensuring
参加しました。
研修では、品質、納期、製造コストの保証を高めるための職長教育、生産システム、
quality,
on-time deliveries,
andmanufacturing
cost control,
as well as hands-on training using
practical

regular meetings of the Supplier Liaison Group. These meetings are also ideal for gathering information through sug-problems
such as methods for production
system improvements, all of which enabled the participants
to改善への取り組み手法などを、練習問題を活用しながら実践形式で教育していただき、受講者もreturnto our company with a newfound sense of confidence.
What was learned in the training was put
自信をつけて帰ってきたように見受けられました。
そして研修で学んだことを当社の給湯器用部

Kimihiro Suzumura
東宏工業株式会社
SeniorManaging Director,
取締役専務

Toko Industries Co., Ltd.

鈴村 公宏様71

into practice in our assembly line for water heater parts, enabling us to achieve the improvement goals
品の組み立てラインにおいて実践し、掲げた改善目標を達成しました。また参加させていただいset out above. We also utilize this training in companywide educational activities led by employees who
たメンバーを主体とした当社の全社的な教育活動にも活かしています。
participatedin Rinnai’s training. In the future, we will continue to participate in this今後も若手を中心に参training, especially
加させていただき、
younger
employees, so当社のレベルアップにつなげていきたいと考えています。
that we can continue to improve our level of production.

Rinnai through annual events including a get-together at the beginning of the year and policy information meetings andgestions 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 andquicklycoordinate information with as many suppliers as possible, using an interactiveinformation-sharing tool called R-LINE to enhance our preparedness forbusiness risk during a disaster.
Policy information meeting72

R i n n a i C S R Re p o r t 2 0 1 9Communication

ステークホルダーとのコミュニケーション

Communication
with
Shareholders and Investors
株主・投資家とのコミュニケーション

Policy on Information Disclosure

ExpandingCommunication of Corporate Value
投資家様向け見学会を通した企業価値の発信拡大
through Field Trips
for Investors－ひふみの社会科見学
in リンナイ－

We disclose information in an appropriate, timely, fair, and impartial manner, and engage in IR activities with an emphasis on—Hifumi’s Social Studies Field Trip in Rinnai—

investors. In accordance with the Rinnai Group Code of Ethics and our Disclosure Policy, we adhere to the principle oftwo-way communication, in order to improve mutual understanding and build trusting relationships with shareholders anddisclosing corporate information in an appropriate, timely, and fair manner, including details of the Group’s management andbusiness activities.

IR Activities–Communication with Shareholders and Investors
In an effort to provide our shareholders and investors with direct updates on ourbusiness activities, and to ensure that information in disclosed quickly and fairly,
we provide information via channels such as results briefings for analysts andinstitutional investors (twice a year), biannual shareholder reports, press releases
and presentation materials on our website, and our IR calendar. We also post IR
information, including results and shareholder reports, on the English version of
A Rinnai employee explaining a product’s functions
当社従業員による商品機能説明

In December 2018, Rinnai partnered with institutional investor Rheos Capital Works Inc. to hold “Hifumi’s Social Studies
2018年12月、機関投資家のレオス・キャピタルワークス様との共同開催で、投資家様とそのご家族の方を招Field Trip in Rinnai,” which invited investors and their families to a tour of Rinnai Hot Lab Yokohama. Rinnai’s Hot Labs areき、
リンナイほっとラボ横浜にて施設見学会「ひふみの社会科見学
in リンナイ」
リンナイほっとラボ
research
facilities designed to provide our business
partners with firsthandexperienceを行いました。
in using such products
astheDelicia gas stove that is capable of automated cooking「デリシア」
through connectivity
to a dedicated recipe app and the
は、専用レシピアプリと連動して自動調理ができるコンロ
や、衣類を早くふっくら乾燥できるガス衣類
Kanta-Kun gas clothes dryer that dries clothes quickly and leaves them fluffy to the touch. On the day of the field trip,
乾燥機「乾太くん」などの商品の実体験ができる取引先様向け研修施設になります。見学会当日は当社経営企画
representatives from Rinnai’s Corporate Planning Division explained the Company’s unique qualities and its major部から投資家様へ当社の特徴や主力商品の説明を行い、その後、実際にガス衣類乾燥機によるタオルの乾燥体
products
to the investors. After this presentation, participants gained
a deeperunderstanding of Rinnai’s products by
actually
experiencing drying a towel with a gas clothes dryer andenjoying a cooking lesson using automated cooking
験や、
ガスコンロの自動調理を利用した料理教室を行い、参加者の皆様に商品の理解を深めていただきました。
with a gas stove.
By having investors experience Rinnai’s products at this event, they were able to better understand Rinnai’s products
今回は投資家の方々に商品を体験していただくことで、リンナイの事業や魅力を理解していただき、
また投資
and the Company’s appeal. Rinnai was also able to gain direct feedback
from investors, making the event a meaningfulone
for both parties.
家の皆様の声を直接お聞きし、お互いにとって有意義な機会を設けることができました。

Appreciating “Rinnai’s approaches to more fulfilling lifestyles” by
商品の体験を通した「リンナイの豊かな生活に向けた取り組み」を実感
experiencing
its products

Rheos
CapitalWorks Inc.
レオス・キャピタルワークス株式会社
Senior Analyst,
運用部 シニア・アナリスト
Asset Management Division

栗岡 大介様73

Investry Relations Section of our website

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

Our Policy on Dividends

VOICE
VOICE

Daisuke Kurioka

our website in the interests of timely disclosure.

We jointly sponsored an event at one of Rinnai’s Hot Labs, which are facilities where visitors can try its
リンナイの商品を体験することができる施設「ほっとラボ」
にてイベントを共催しました。お子
products. Participants from a variety of backgrounds, including parents with children, and single women
様連れの親子、・男性など多様なバックグラウン
ドを持つ方々にご参加いただき、
andmen took part独身女性
in the event
and were able to hear about Rinnai’s
past, present, and future, whileリンナ
enjoying
dishes prepared in the Company’s kitchen.
イのキッチンで作った料理に舌鼓を打ちながら会社の過去
・今・未来についてお話を伺いました。
In 2020, Rinnai will reach the 100th anniversary of its founding, a path that has been marked by「品質こそ我らが命」
2020年に創業
remainingin close touch toという想いを胸に世界中の人々の生活に寄り添い続け、
the lifestyles of people around the world while keeping the belief
that “Quality
is 100年を迎えるリンナイ。
our destiny” close to heart. I 熱機器というモノづくりを通じて、
got the impression firsthand through豊かな生活というthe smiling faces oftheト」
participants「コを各国で育that Rinnai will through the monozukuri (craftsmanship) of its heating equipment continue to makeみ続けていることを参加者の方々の笑顔を見ることで実感しました。次の100年、
ライフスタイ“stories” in the form of fulfilling lives for people worldwide. We are also focusing on stories that Rinnai
ルの変化の中で生まれるリンナイの「コemergeト」
づくりにも注目しています。
makesthrough the changes in lifestyle thatover the next 100 years.

One of our top management priorities is to sustain a stable return of profits to shareholders. Several factors play into the calculation of dividends, such as consolidated performance, return on equity, and financial status.
Please refer to page 102 of this booklet for information on dividends, including past trends.

Share Information (As of March 31, 2019)

Securities companies

Own shares

0.8%

0.4%

Foreign investors

30.7%

Number of authorized shares: 200,000,000 shares
Number of outstanding shares: 51,616,463 (Including treasury stock)
Number of shareholders: 4,166

Corporations

29.0%

Individuals and others

Shareholder
Composition

14.5%

Financial institutions

24.6%

74

R i n n a i C S R Re p o r t 2 0 1 9Communication

ステークホルダーとのコミュニケーション
Communication
with Stakeholders

Communication
with Local Regions and Communities
地域・社会とのコミュニケーション

Support for Nakagawa Canal Restoration and Culture/Artistic Assistance ProjectContributing to the Development of Talent That Will Lead the Next
産学連携を通した次世代を担う人材育成への貢献
Generation through Alliances between Industry and Academia－本業を通した社会貢献のビジネスモデルの創出－—Creating a business model that contributes to society through our core businesses—
Througha collaboration between industry and academia, Rinnai and the
Nagoya Universityof Arts and Sciences held
2018年4月から名古屋学芸大学と当社との産学連携を通し、全15回にわたって「企業と社会～地域社会におa course conducted over 15 sessions starting in April 2018 pursuing the theme: “Companies and Society: The Role of
ける企業の役割」と題した授業を行いました。学生が工場見学や従業員とのディスカッションを行い、学生自らがCompanies in Regional Society.” Students participating in the course toured Rinnai plants and held discussions with its「本業を通した社会貢献のビジネスモデル」
その成果発表として2018年10月にはナディアパーク国際
employees and created proposals for “business案を作成。
models that
contribute to society through core businesses.” As a format
forpublishing their results, in October 2018 the students’ proposals were displayed at International Design Center of
デザインセンター(名古屋市)で展示を行いました。
NADYA PARK in Nagoya.
当社は企業としてこれまで培ってきたノウハウや知見の提供を通して教育の場に貢献するとともに、学生のア
Rinnai continues to contribute its know-how and knowledge gained as a company to the field of education while
イデアをステークホルダーの声として当社の事業活動に反映していきます。
reflecting
the ideas of students as the voice of its stakeholders in its business activities.

Video installation “waltz” 2018 by Kei Fushiki, a subsidized project of the ARToC10

We are donating ¥10 million every year for 10 years (¥100
million in total) to the Nakagawa Canal Restoration andStudents in discussions with Rinnai employees
学生と当社従業員とのディスカッション

Cultural/Artistic Assistance Project (known as “Nakagawa
Canal ARToC10”) set up in fiscal 2013 to restore the canal andsurrounding area. The aim of the program is to revive the
district and make it a cultural and artistic hot spot by turning
the canal into a venue for modern contemporary art.

Students from the Nagoya University of Arts and Sciences, Department of Design, whoparticipated in a course created via collaboration between industry and academia
産学連携授業に参加した名古屋学芸大学デザイン学科の皆様

Announcing the results at an exhibition
展示会での成果発表

VOICE
VOICE

Rinnai Corporation, Actual Results in Fiscal 2019

A valuable experience enabling an understanding of the linkage
日々の暮らしと企業活動のつながりを知る貴重な体験
betweenpeople’s daily lives and corporate activities

Yukiko Tomiyasu
NagoyaUniversity of Arts and名古屋学芸大学
School of Media and Design,
メディア造形学部
Department of Design,
デザイン学科 教授
Professor

冨安 由紀子様75

Nagoya University of Arts and Sciences, Department of Design’s Design Produce Course aims to “envision
名古屋学芸大学デザイン学科のデザインプロデュースコースでは、「より良い未来像を描き、an even better future and create new value that can be shared with others.” Toward this end, students
他者と共有できる新しい価値を創造すること」
を目標に、実社会での問題発見をベースとした実
engagein practical exercises based on issues uncoveredin the realworld. Understanding a company andcreating
proposals
thatbenefit
it
as
well
as
societyandcustomers
wasa very difficult
theme for our third践的な演習に取り組んでいます。企業を理解し社会・顧客との「三方よし」
を提案することは、
社会
year students who have limited life experience. However, taking Rinnai’s sound corporate activities as case
経験の少ない3年次の学生にとって非常に難しい課題ですが、
studies
served as a valuable experience toward gaining awareness ofリンナイの健全な企業活動を事例
the lifestyles in front of them and theirconnection
with industry
and society.
とすることで、
足元の
「暮らし」
と地続きの
「産業」
・
「社会」
に気づく貴重な体験となりました。
The students were also fortunate to be at the cusp of Rinnai’s 100th anniversary and witness the
折しもリンナイ100周年、企業が変化する瞬間に立ち会うことにもなりました。働くとは？豊かmoment a company is about to change. Our students will continue to contemplate the big questions they
さとはfrom？健全さとは？リンナイから得た大きな問いを、これからも考え続けます。
gainedRinnai, suchas “What does it mean to work?” “Whatis abundance?” and “What is soundness?”・Nagoya Urban Development Public Corporation

・Haruhime Dochu (Spring Queen Parade) at Honmaru(support for restoration project on the Nakagawa

Network

Canal)

・Youngsters’ Science Festival 2018

・Nagoya Philharmonic Orchestra

・Chinese Spring Festival in Nagoya

・Nagoya School of Music, The Music Competition of・Misonoza Kinshu Nagoya Kaomise Kabuki

Japan, Award-winning Celebration Concert

・Vietnam festival Ho Chi Minh in Aichi, Nagoya

・Campus Venture Grand Prix, Chubu Area

・Korea Festival 2018 in Nagoya

・Nagoya Shonen Shojo Hatsumei Club (Invention and・Sponsorship of the Connecting Traditional Japanese

Innovation Youth Club)

Culture Project76

R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

0 1 	
Transferring Technologies throughGlobal Exchanges
In order to develop human resources who can play an active role across borders andimprove the capabilities of employees around the world, the Group has developed abusiness practices program that assigns mutual training programs to management divisions,product development divisions, and manufacturing divisions.
Every year, we accept overseas Group employee trainees, and for a period lasting froma few months up to one year, we pass on manufacturing technologies through training in
manufacturing and production divisions. In 2018, we accepted 13 employees mostly from
Asian countries as overseas trainees.
These activities serve not only as a means for transferring manufacturing technologies
but also play a role as human resource development so that overseas Group employees will
become leaders in local subsidiaries.

VOICE

Andrea Pavarotti
Rinnai Italia
Technical engineer

Learning Good Organizational Culture through Training in JapanI have been working as an engineer at Rinnai Italia since 2015. I received training for several months at
Rinnai for the first time in 2017, and I mainly learned about hot water heater test methods. We have been
receiving training in Japan for the second time since July 2019. In addition to training, we are planning toshare information on the climate and housing conditions in Italy and the certification system for gas
equipment in Europe among the Group.
When I came to Rinnai again, I felt that I came back home. Many Rinnai Japan colleagues are kindand very gentle. They treated me as a colleague of the same team. It reminded me that good andpositive personal relationships are the key to making work successful.
Besides learning skills, I also want to learn Japanese best practices such as 4S, workplacemanners, and good organizational culture through training in Japan, which I want to take back to Rinnai
Italia.

77

78

R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

02 Enhancement of Health Promotion Activities

03 Improved Understanding of CSR throughIn-House Events

Full-time public health nurse providing individual health guidance

Rinnai Group employees engaged in coral reef protection activities

The Rinnai Group established the Health Support Office where full-time public health nurses engage in employee healthpromotion activities. In addition to providing individual health guidance, consultations, and other information related topersonal health, the office supports both health by conducting health promotion seminars.
Aiming for a work environment that does not cause mental disorders, we provide support for a smooth return towork through rehabilitation including mental health seminars for managers and a return-to-work support program for
employees who have taken long-term leave. In fiscal 2019, in addition to interviews during times of mental distress andleaves of absence, we increased the number of interviews after returning to work approximately 1.5 times compared tofiscal 2018 and in addition to preventing leave of absence due to mental health problems, we strengthened our support
system for the smooth return to work for those who took a leave of absence.
For employees who use the cafeteria, we collaborate with dieticians to plan menus that consider employee health,and conduct health campaigns to check vascular age, bone density, iron levels, and skin aging in order to raise awarenessamong employees regarding their health. We also conduct
health creation and walking seminars and raise awarenesswith regard to weight loss and physical strength training.

The Rinnai Group strives to facilitate exchanges between employees and improve understanding of CSR through avariety of in-house events. The Rinnai Group Environmental Award, which is given in recognition of environmental activity
excellence, is held each year, with fiscal 2019 seeing the largest number of applicants ever, a total of 127 employees,
among which 10 were selected for excellence in production, office, sales, and social contribution categories.
Overseas Group companies also hold events aimed at facilitating exchanges between employees and improving
understanding of CSR. Each year in September, Rinnai Australia participates in Steptember, an event that donates tocerebral palsy and supports employee health by encouraging people to walk 10 thousand steps each day, which is also
instrumental in promoting the health of employees and deepening understanding with respect to cerebral palsy.
Each year, Rinnai Thailand employees hold anenvironmental protection event. In August 2018, 50
employees cleaned up the coastline and conducted coral
reef protection activities in order to protect coral reefs.
In May 2019, the Rinnai Group received theEnvironmental Human Resource Development Company
2018 Grand Prize by the Ministry of the Environment for its
environmental human resource development initiatives.

Mental health seminar for managers and supervisors

79

Steptember awareness poster(Rinnai Australia)

The Environmental Human Resource Development
Company 2018 Grand Prize trophy80

R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

Career Development Review and Support

04 Personnel Training

Visualizing skills of individual employees and guiding their growth (capability evaluations and feedback of the results in one-on-one interviews)
For each training program to function effectively, it is essential to match the capability required by the organization 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

We defined our fundamental human resources policy as “Nurture and encourage our employees to have a high level ofmorality and keep challenging their own goals continuously making effort.” We guide and train our employees to beable to demonstrate their initiative to drive the Company. We provide our employees with numerous opportunities togrow as an individual, such as rank-specific training programs, specialization courses, OJT training, and a rotation
training program, which covers workplaces at home and abroad.

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 they receive the results of their performance evaluation
and are informed of the Company’s future expectations of them. They then set up their own goals to challenge every year.
Supervisors, to actively perform the responsibility to navigate the growth of their staff, carefully review each staff’s progress and contribution (performance evaluation) and adequately inform the staff of the results of the evaluation through one-on-one interviews or performance appraisal feedback
meetings.

OJT Personnel Training

Support for Self-directed Development

We position human resources as our most important management resource, and offer personnel training to assist employees

To support each employee to acquire higher specialist knowledge, skills, and culture and support their growth as an individual, we actively pro-to fully demonstrate their capabilities.

vide programs including foreign language education, correspondence courses, external open seminars, technical proficiency examinations,

Our main training is OJT, wherein a supervisor guides his or her team member through an actual job. In addition, we provide alicense acquisition courses, and communication with people in different companies/industries. We provide rank-specific training programs

rank-specific training program, which supports the improvement of each employee as an individual by grouping them accord-

to create opportunities to be aware of aspects for strengthening one’s sense of humanity. To employees who wish to develop themselves,ing to job responsibility, and a specialization course, which promotes our employees to be highly specialized in their area. These

we actively provide programs including foreign language education, correspondence courses, external open seminars, technical proficiency

three programs form three pillars of Rinnai’s training system. Moreover, we are conducting a level-up training program for Groupexaminations, support for attending national license acquisition courses, and communication with people in different companies/industries.
In addition, for young employees who have a strong desire to work overseas, we arrange and operate a short-term overseas working andleaders who have been promoting our business plan since fiscal 2011.

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 ofMajor Rank-specific Training Programs

human resources that can demonstrate their abilities at a global level.
Training

Subject

Content

New employee
training program

New employees

Basic training for professionals (manners, awareness as a professional),
Fundamental training for Rinnai employees (Company overview, theRinnai Spirit, corporate ethics, personnel system, policy on quality andenvironment), IT skills and mental health

New employee
follow-up training

Generalists (Clerical and sales employees)
in their 1st year, Generalists(technical employees)
in their 2nd year, clerical employees(technical employees) in their 1st year

Training for increasing motivation to work and raising professionalawareness(Reconsolidation of what was learned in the new employee training
program; employees who joined the Company in the same year gather
and share information about their current status)

S4 level-qualified employees

Reconsolidation of fundamentals (corporate ethics and management
policy), Recognition of his or her characteristics (to improve the strength)
and the reinforcement of awareness of management (creation ofmanagement plans)M6 level-qualified
employee training

M6 level-qualified employees

Reconsolidation of corporate ethics and management policy Understanding duties of managerial supervisors (rules of employment, Labor
Standards Act, handling of problematic employees), Understanding ofmanagement

M6 level-qualified
employee follow-up
training

M6 level-qualified
employees

Reaffirming shared goals
Reconsolidation of values concerning managers’ actions, Reviewing theefficiency of the entire workplace

Reviewer training
follow-up training

Employees whose duties require them tointerview subordinates and review theirperformance

Review of personnel systems
・Understanding of objectives and methods of performance reviews
・Improvement of interview skills through interview practiceS4 level-qualified
employee training

Succession of Monozukuri , the Spirit of Manufacturing
Training at the Production Technology Center
The Production Technology Center established in March 2010 is a place to pursue leading-edge monozukuri , with and an emphasis 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 who are qualified in various technical areas provides detailed training on Rinnai's
manufacturing technique accumulated from the past, for employees including trainees from overseas Group companies.

Worksite Training“Manufacturing succession centers” are established at each worksite to preserveand pass on tangible assets including accumulated process technologies and newtechnologies that perpetuate the “worksite intuition” of experienced employees.
These are used as places to teach new employees manufacturing basics aswell as a place to share and pass on information and educate personnel with respect to manufacturing “efficiency improvements and management strengthening.”

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R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Development of Global Human Resources
We aim to develop human resources who can demonstrate their abilities beyond national boundaries and improve the capabilities of Rinnai Group employees all over the world. Therefore, the management divisions, product development divisions, andmanufacturing divisions are developing their own training courses and OJT programs implemented via employee exchange.
We provide opportunities for Japan-based employees in their 20s (at the earliest) to be assigned to overseas Group companies, which improves their ability to adapt to foreign cultures and their international business sense through actual overseas
work experience.

VOICE

Feedback from Employees Assigned to Overseas Group Companies Part 2

I was engaged in the production of automated equipment in the Production Engineering Department for about 10 years. Since
January 2018, I have been working as an engineer at Rinnai New Zealand. My specific work covers a wide range of initiatives,
such as improving productivity through the introduction of equipment and jigs on production lines, consultations regarding
quality improvements and development and cost reduction efforts.

Management Department

Rinnai New Zealand produces gas fireplaces that are not manufactured by any other Rinnai Groups company. Utilizing

At the management division of the Head Office, we regularly visit our overseas locations to provide instruction on management
and accounting and to develop human resources. We also launch business reform projects when specially requested. Under
such projects, specialists from Japan develop local executives through planned visits to overseas location that provide themwith instruction on methods for improvement in a way that allows them to achieve results through practical operations.

Product Development and Production Departments

experiences gained at Rinnai in Japan, I work with local staff to create systems that are able to leverage the strengths of both
Japan and New Zealand. This has led to a renewed awareness of many things that have helped me learn even more.
Although our cultures and ways of thinking aredifferent, I feel that the desire to make quality products is
common throughout the world. Going forward, through myexperience working overseas, I hope to contribute to thefurther development of Rinnai while working together withWe actively promote human resource exchanges between Japan and overseas locations, with about 20 employees

local staff to establish manufacturing that is compatible withparticipating each year. Staff members from our overseas Group companies receive OJT in Japan for about one year,

the local culture.

learning practical skills and what to improve at their own companies at the development divisions, factories, and man-

Takahito Suzuki

agement divisions in Japan. Japan-based employees assigned overseas practice product marketing and handling of

Rinnai New Zealand Ltd.

quality issues, as well as improvement of factories’ manufacturing and production systems. Through these activities,
they hand down the key themes that constitute our corporate culture and expertise on Japanese-style monozukuri
and quality assurance to local managerial staff.

VOICE

Feedback from Employees Assigned to Overseas Group Companies Part 1

Feedback from Employees Assigned to Overseas Group Companies Part 3

I was engaged in the manufacture, management and maintenance of production equipment at the Seto Factory, our manufactur-

After joining Rinnai, I studied the basics of management and administration for five years in the Corporate Planning Division anding base for water heaters, for eight years. Since January 2017, I have worked in manufacturing at Rinnai Brazil.

Overseas Business Headquarters. Since September 2014, I have been working at Rinnai Australia, engaged mainly in manage-

In Brazil, I am engaged in a wide range of work, such as setting up automated equipment and supporting the development of
new products. This requires study and hardship, but I am engaged in work that I would not experience in Japan, thus every day isfulfilling. Although there are some challenges due to differences in work styles and ways of thinking, I communicate closely with thement and administration support. During the past five years, I have been involved in numerous projects including company
acquisitions and factory startups.
When this assignment began, the differences compared to Japan in terms of how work is approached frequently left me

person in charge and strive to make workplace improvements. As soon as I arrived, a new factory building project was launched,feeling bewildered. The president of Rinnai Australia at that time taught me the saying “When in Rome, do as the Romans do.” Ingiving me an opportunity to become involved in the layout andJapan, we have a similar proverb. Thus, I first decided to try andcapital investment planning from the very beginning. This

understand how the locals approach work. Based on thatexperience has contributed significantly to my personal growth.

understanding, I gradually understood the importance of

In Brazil and the wider Latin American market, gas hot
water heaters are not very popular, but they have great potential. I

making the best use of what I had learned in Japan.
Five years have already passed, yet I still have much towant to contribute to the development of the Rinnai brand bylearn. Although my job involves responsibility for the manage-

thoroughly pursuing the creation of quality products at a low cost

ment of an overseas company, I engage in work with a sense offrom our production base in the Latin American market.

fulfillment every day.

Keita Kaneda

83

VOICE

Rinnai Brasil Heating Technology Ltd.

Yuki Kishi

Rinnai Australia Pty., Ltd.

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R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

05 Work-Life Balance
Support for Work-Life Balance
For all Rinnai employees to perform well, attaining a sense of accomplishment and fulfillment balancing work and personal

Formulation and Implementation of the General Employers Action Planlife for each lifestyle, we continue to enhance our personnel system to support all employees of any gender and nationality
Rinnai formulated the General Employers Action Plan (Fifth Period: Fiscal 2020– Fiscal 2023) based on the Act

throughout their lives.

on Advancement of Measures to Support Raising Next-Generation Children.
Program and MeasureChildcare leave

Childcare shortened work hours

85

Content
Employees living with and raising a child or children less than one year of age may take a leaveof absence from work until the child or children reach one year or one year and six months ofage. (The leave of absence may be extended until the child or children reaches two years ofage, dependent upon the conditions of the application for leave.)In the event that an employee is the caregiver of a child that hasnot been enrolled in anelementary school, or is the caregiver of a family member that requires nursing, the employee
in question will be exempt from working late shifts (10:00PM-5:00AM) with the exception of,cases wherein the employee s absence would preclude or inhibit the continuation of normal
business operations.

Fifth Period General Employers Action Plan

1. Plan period
April 1, 2019 to March 31, 2022

2. Details
Objective 1:

To improve workplace environment and change awarenessfor realization of balance between childcare and work

Sick or injured childcare leave program

Employees may take a maximum of 10 days (20 days for employees with two or more
applicable children) of leave per year in half-day units to care for sick or injured children.

Extended family care leave

Employees may take a maximum of 10 days (20 days for employees with two or more
applicable family members) of leave per year in half-day units to care for a family member inneed of long-term care.

Family care shortened work hours

Any employee who is responsible for a family member that requires full-time or nursing care
may shorten his or 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 ofuse of this program per such family member.

<Measures>
・Expand more flexible work styles(Extended period of shortened working hours system, etc.)
・Improve management awareness(Develop training programs and consistently conduct interviews before
maternity leave, during childcare leave and after returning to work)

Family care leave

An employee can take up to 10 days leave per year (20 days per year if two or more family
members require care).

Objective 2:

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.

Come Back programThis program offers an employment opportunity to our former employees who had to leave
the Company for unavoidable reasons such as marriage, childcare and familycare, or on his or
her discretion.

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

To promote initiatives expanding work-life balance<Measures>
・Promote work load reduction activities(establish satellite offices, review internal rules, etc.)
・Provide business management support for managers(further improvement of attendance system)
・Promote the acquisition of paid leave86

R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

06 Industrial Relations and Human Rights
Working to Enrich the Lives of Our Employees’ Families

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

Respect for Human Rights and Individuality
P87-88The Rinnai Group considers respect for human rights and individuality as one of its main pillars for performing its
social responsibilities as a company. We therefore strictly prohibit any form of discriminatory treatment based on gender,
age, nationality, physical characteristics, or any other attributes of individuals. We also refer to the ideas of the United Nations
framework and ISO 26000 and reflect them in the Rinnai Group “Code of Ethics”.
To promote and enforce the contents of the Rinnai Group “Code of Ethics” among all Group employees, a Compliance
Committee member is allocated to each workplace to regularly conduct education on corporate ethics.
At rank-specific training programs, we also educate our employees based on their roles and job responsibilities.
Rinnai aims to create workplace environments and climates that allow its employees to feel glad to be working for theCompany. We collect opinions regarding the Company from each workplace and hold regular joint labor management

Measure to Prevent Child and Forced Labor

conferences along with employee unions. The goal of these conferences is to make improvements to the Rinnai Group. We

As a measure to prevent child and forced labor, the Rinnai Group “Code of Ethics, Rinnai Code of Conduct, Article 11 The

move forward with improvements by sharing issues unique to each business location and conducting system revisions. The

respect for human rights and each other’s personality (4)” stipulates that “The Company should not allow any inappropriate

Company has conducted activities aimed at promoting the use of paid leave, established a new regional allowance system,

labor including harmful and exploitative child labor which lets under-aged children to work, and slavery against the will ofand held nursing care seminars. Rinnai also provides financial support for health enhancement events held by employee

employees.” The entire Group abides by and acts on this rule.

unions, such as sport or bowling competitions and walking festivals. Finally, we collaborate with employee unions to provide
workplace tours to employees’ families at our development locations and factories. Through these tours, we educate
employees’ families about what we and their employee family members do.

Measures to Prevent Harassment
To maintain a working environment that our employees find comfortable, we take measures to prevent any infringement of
human rights, including sexual harassment and power harassment. To assist our employees in avoiding to commit any

Major Programs in Rinnai Employees’ Association

harassment without intention and knowledge, we produced a checklist of detailed examples of harassment that is posted
Item

Overview

on the Companywide intranet for self-assessment.
Each year, we also provide newly assigned section chiefs with harassment-prevention education to reinforce this87

Nationwide eventsin Japan

Various events to promote health of our employees and their family members and communication

Training seminars
by age group

Training seminars focusing on “Education for the soul” that supports employees to develop attractive

clearly determined the detailed act of prohibiting harassment and disciplinary action based on the rules of employment if an

personalities as members of society

employee violates any of these.

including bowling competition, barbecue picnic, and sports festivals

prevention. In accordance with the revision of the Equal Employment Opportunity Law and Child Care and Family Care
Leave Law, we revised our in-house rule to prevent any harassment related to pregnancy, childbirth, or family care leave. We

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R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

07 Fair and Diversified Employment
View toward Employment
We respect the diversity of individuals and provide employees with various job opportunities and a working environment

Formulation and Implementation of the General Employers Action Plan

where they can demonstrate their various capabilities. The Rinnai Group Code of Ethics stipulates that “Any discriminatory
act toward an individual based on gender, age, nationality or physical characteristics, etc. is prohibited.” Based on this, we
maintain fair and equitable hiring practices, in line with prevailing business plans and recruitment needs.

Rinnai formulated the General Employers Action Plan (Fifth Period: Fiscal 2020– Fiscal 2023) based on the
Act on Advancement of Measures to Support Raising Next-Generation Children.

In addition, we actively engage in mid-career hiring to capitalize on the accumulated experience and knowledge ofindividuals who showed they can make a contribution to our success. We hire approximately 25 skilled mid-career employees every year.

Second Period General Employers Action Plan

To improve the employment environment so that women can play
an active role, Rinnai has formulated the following action plan.

Increase of Female Employment and Support for Their Active Role

1. Plan period

Ideas and comments from women are absolutely crucial to our products, particularly as they use so many of our products on

April 1, 2018 to March 31, 2020a daily basis. We have female employees playing key roles and demonstrating their individual abilities across a wide range of

2. Company issues

areas, especially in product planning and design departments, sales planning and promotion departments, fixed customer(1) Although the proportion of female graduates hired has increased,sales departments, and production departments. At Hot.Lab, our interactive facility, female employees called Life Creators
demonstrate and promote our products to customers. Life Creators across the country gather every year to exchange theiropinions. They share their opinions on product functions, designs, and methods of demonstration to contribute to thedevelopment of new products and the improvement of product promotion.

there is a difference in the number of years employed between men
and women.
(2) The percentage of women in managerial positions is low.

3. Targets and details of activities and timing of implementation

In addition, the fixed customer sales department proactively engaged in sales promotions from a female perspective
targeting customers such as retail stores and house makers.

Objective 1 :To increase the percentage of women in general positions from 4.2% to 4.5%
Initiative details: Control the number of retirees due to workplace culture and childcare.
Ongoing: Support for return from maternity leave (utilization of interview check sheet implemented

VOICE

before and after leave)
New: Promotion of “Female Employee Discussions” at each business site

The work engaged in by the business development group I am assigned to is(Understanding requests regarding work content and workplace environment as well as support forfocused on delivering Rinnai products to newly constructed homes. I am mainly inthe formation of networks)

charge of detached housing and proposing new products to house manufacturers.

Objective 2 :In recent years, the number of double income households has increased, thus

To establish the number of women in management positions at 8 people.

proposals from the perspective of working women focused on easy-to-use

Initiatives: Change in awareness regarding the active participation of women through training, etc.

household items such as stoves with auto-cooking functions, dishwashers andOngoing: Implement programs for understanding diversity during manager training.

drying machines and gas laundry dryers resonate with customers.

Ongoing: Training for female employees (union).

Although I am still gaining experience, I hope to expand the scope of my workso that Rinnai becomes a company that enables women to be more active in sales.

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Chiho Enomoto

Living Sales OfficeLife Solution Group
Kansai Branch90

R i n n a i C S R Re p o r t 2 0 1 9Communication with Employees

Communication with Employees

08 Occupational Health and Safety
Reemployment of Retired Employees and Support for Demonstration of Their Abilities

Basic Policy on Safety
and Hygiene

Rinnai promotes a reemployment program for employees who retired due to the age limit in order to continuously utilize

An essential requirement in business istechnology and skills that skilled employees possess and to smoothly pass on the skills and the Rinnai Spirit to following

the assurance of the health and safety ofgenerations. There are currently many employees working under this program. We offer one-year contracts until the age of

employees, via the provision of a65, with a choice of three options, enabling employees to work full time, alternate days, or reduced hours. We also have a

hazard-free and hygienic work environ-system in place to extend employment to the age of 68 in the case of employees with outstanding specialist skills or abilities,
to fit in with a wide range of individual lifestyles. This reemployment program provides employees with purpose and motivation in life as a leader/mentor and maintains and improves the corporate culture and dynamics within the workplace.

ment. As Rinnai constantly strives toprotect the life and health of all employees, we give top priority to the sanitaryconditions and safety of the workplace.
This corporate mantra extends to ourcustomers, to whom we strive to provide

Fiscal 2020 Basic Policy on Safety and Hygiene

1. Create safe and reliable work environment
2. Maintain and improve work environment
3. Work style reforms and compliance with Article
36 Agreement
4. Promote measures to support for healthimprovement
5. Promote crisis management
6. Personnel training through safety education andworkshops
7. Promote traffic safety activities

Promoting the Employment of People with Disabilities“safety and peace of mind.”

Rinnai is collaborating with the Public Employment Security Office and schools for handicapped children to systematically

Promoting Safety and Health Activities

promote the employment of people with disabilities. The Company independently holds job fairs for people with disabilities
and continuously conducts campus recruiting at schools for handicapped children. Employment focused on people with

Rinnai has established the Rinnai Companywide Safety and Health Committee as a governing body for domestic Groupdisabilities concentrated in specific locations was started in April 2018 and has been successful.

companies and is working with safety, health, and disaster prevention officers at each business location to promote occupa-

These employees are able to engage in a wide range of operations, from advanced computer processing work tosimple tasks and from cleaning work to weeding activities. Employees are provided with an individualized business programthat best suits their type and level of disability with the aim of creating a workplace that is rewarding, bright, enjoyable.

tional safety and health activities.
These activities include informing employees about examples of work-related injuries and corresponding recurrence
prevention measures, establishing safety and health committees that include members from both labor and managementlevels, creating safety and health patrols, and implementing the Company’s five fundamentals of safety and health (regulation, arrangement, cleaning, sanitation, and training). Through these activities, we are working to create workplace environments that are secure, safe, and comfortable.

Promotion of Traffic Safety
To raise employee’s awareness of traffic safety, various measures and education programs are provided. As a traffic accident“zero day” activity, our employees call for traffic safety in the streets. As a new employee training, we execute practicaltraining, a risk prediction course, and an aptitude test at a driving school. We obtain a certificate of driving record for each
employee who is granted permission to drive a company car or commute by car. This is to accurately gauge the number of
employees’ traffic accidents and violation of traffic rules to improve self-awareness for compliance. We introduced TelematComputer operations

Weeding activities

ics, a safe driving eco-drive promotion system, and check daily driving status and then analyze the data efficiently from theviewpoint of safety and ecology.

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R i n n a i C S R Re p o r t 2 0 1 9

Management Structure

Corporate GovernanceTo hone the Group’s competitive edge and sustain improvement in corporate value, Rinnai has made efforts to

Audit System for Monitoring and Supervising Management

augment corporate governance practices and raise its profile as a management priority. We aim to conduct highly
transparent management by providing swift and precise disclosure of wide-ranging information to all of our diverse
stakeholders while endeavoring to enhance the functionality of internal bodies, such as our Board of Directors andAudit & Supervisory Board.

Basic Principles

01

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

02

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

03

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

04

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

05

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

06

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

Corporate Governance Structure

Accounting Auditor

Cooperation

Election and dismissal

Audit & Supervisory Board
Cooperation

Internal Control OfficeElection and dismissal
AdviceAudit

Board of Directors

Election, dismissal,
and administration
Direction

Corporate Lawyer

Election, dismissal,
and administration

President

AdviceReportReport

Audit

ReportManagement

Audit

Internal
Audit

Board of Directors
Rinnai’s Board of Directors is comprised of seven members, two of whom are outside directors, and meets once a monthin principle. The Board makes decisions regarding major management issues and also oversees business execution by
Board members. Some directors below the President serve concurrently as executive officers, whose role is to convey
decisions by the Board to executives in the relevant divisions responsible for business execution. The Board confirms
business operations and discusses issues at general business meetings and at other business meetings held on aquarterly basis. Moreover, the term of Directors is fixed at one year in order to clarify management responsibilities andincrease opportunities to enhance shareholder confidence in the Board.

Director Compensation,
General Shareholders Meeting

Election and dismissal

Rinnai recognizes the reinforcement and enhancement of its corporate governance to be important management
priorities from the perspectives of strengthening competitiveness and continually improving corporate value of the Group.
We aim to conduct highly transparent management by providing swift and precise disclosure of wide-ranging information
to all of our diverse stakeholders while endeavoring to enhance the functionality of internal bodies, such as our Board of
Directors and Audit & Supervisory Board.
The Audit & Supervisory Board is comprised of four members, two of whom are outside auditors. Audit &Supervisory Board members attend Board of Directors’ meetings and other important meetings to monitor director andexecutive organization execution of duties, the development and operation of the internal control system, and the statusof operations and property management at the head office and major offices. In addition to these duties, external accountauditors audit the Company’s accounts and verifies from a third-party perspective the legality of the internal control
system as it relates to financial accounts.

ReportExecutive Officers
ReportBusiness Divisions

Related Committees

Corporate Ethics Committee
Risk Management Committee
ReportDisclosure Committee
Environment Management Committee and other
Direction

Management

Compensation limits for Directors and Auditors are
determined in accordance with the resolution of thegeneral meeting of shareholders. Rinnai internal
regulations also stipulate fundamental matters related to
Directors’ compensations, including determination
procedures, revisions, and reductions. Based on these,
the amount of compensation for Directors is resolved by
the Board of Directors and the amount of compensation
for Auditors is determined through deliberations by
Auditors. Directors are paid a fixed amountcommensurate with assigned duties.

Compensation amounts for Directors and Auditors(Fiscal 2019)

Category

Persons

Total amount ofcompensation paid

Directors

7(2)¥285 million(14)(of which areoutside auditors)

4(2)¥44 million
(10)

Total

11

¥329 million(of which areoutside directors)

Auditors

Director salaries do not include employee salaries for directors who also serve as
employees. As of March 31, 2019, there were seven directors (including two outside
directors) and four auditors (including two outside auditors).

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R i n n a i C S R Re p o r t 2 0 1 9GovernanceManagement Structure

Executive Structure
We have introduced an executive officer system in order to create a flexible management structure capable of responding swiftly tochanges in the business environment. Some directors, from the President down, serve concurrently as executive officers, and theirrole is to convey the details of decisions made by the Board of Directors to the managers of the divisions responsible so that they canbe 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.

Promotion of Businesses Continuity Plans (BCPs)
When companies have no sufficient measures for natural disasters such as earthquakes and storms and the prevalence of
infectious diseases, business operations may be suspended for a long time, resulting in significant damage and having a serious
impact on stakeholders. As a company which produces thermal energy appliances to support people's lifestyles, we believe it is
our responsibility to maintain the stable supply of our products even under such circumstances.
We have positioned business continuity management as one of top priorities, in the event of any risks to the production or
supply of important products required by our customers, and are constantly working to formulate and review BCPs, particularly
for our domestic production divisions.

Basic Principles of the Internal Control System
Seeking to reinforce our management system and fulfill our social responsibilities, we established an internal control system with

Promotion Structure

the following aims:(1) To enhance the stability and efficiency of business operations;(2) To ensure the reliability of financial reports;(3) To comply with laws and regulations affecting business operations
and internal regulations;(4) To maintain assets

Rinnai’s Risk Management Committee is comprised mainly of executive
officers and divisional heads with the President serving as Chairman.
The Committee meets regularly to identify key risks having the potential
to impact the Company as an ongoing concern, its credibility, businessactivities, and assets. The Committee also determines which businessdivisions have a primary responsibility for each type of risk. It also
develops mechanisms to prevent risks from materializing, rapidly
resolves crises, minimizes any damage that may occur as a result, andprevents recurrences. The Committee works with all divisions and Group
companies to mitigate risks and enhance risk response capabilities.

Risk ofnon-compliance ormanagement inviolation of applicablelaws

Risk of fire, explosion
accidents, andnatural disasters

Important Identified
Risks (Partial)

Risk of suspension ordelays affecting raw
material procurement
activities

Risks related tothe environment

Risks related tooverseassubsidiaries
Risk of damage to
mission-critical systems

Risks related to
information leaks

Information Disclosure
In addition to the formulation of internal rules for the timely and appropriate disclosure of important information concerning
the Group, Rinnai created a disclosure policy that is published on our corporate website as a guideline 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 in order to ensurestable business activities that sustain the trust of customers and society as a whole.

95

Initiatives Aimed at Reducing Risks during Earthquakes
In October 2018, we conducted an earthquake evacuation drill at the Oguchi
Site, which employs a large number of employees, in an attempt to improve thelevel of emergency response through first aid training for injured personnel. In
addition, in March 2019, we conducted tall building evacuation training using aladder truck in collaboration with the Nakagawa Fire Station to reconfirm
evacuation methods under a variety of conditions at our head office.
In 2016, the Rinnai Group introduced a safety confirmation system toquickly confirm the safety of employees in the event of a disaster. When astrong earthquake occurs, a safety confirmation email is sent to all employees
and safety confirmation is conducted according to instructions in the email.
The Rinnai Group strives to reduce risks when disasters occur through regularsafety confirmation tests conducted on an annual basis.

Tall building evacuation training using a ladder truck incollaboration with the Nakagawa Fire Station96

R i n n a i C S R Re p o r t 2 0 1 9

Management Structure

Compliance
Rinnai Group Code of Ethics

Facilitation of Internal Reporting System

The Rinnai Group has compiled behavioral standards that all
executives and employees must obey in the “Code of Ethics,” a small
booklet that includes the “Rinnai Code of Conduct” as a guideline for
specific daily activities. Further, the “Rinnai Code of Conduct Manual”
was created as a tool to deepen understanding of the Rinnai Code of
Conduct.
In addition, an English-language version of the “Code of Ethics”
is issued to overseas Group companies, and local-language versions
were distributed to Group companies. In countries where the official
language is not English, the manual is translated into the local
language of that country.
Each year, Rinnai conducts Code of Conduct awarenessactivities for all employees.

If, in the course of business activities, an employee at a domestic company under theGroup 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 thedivision with such suspicions, the employee may report the perceived infraction to

A legal violation or someother issue occurs during
operations● Breaches of laws, regulations,internal rules, and ethics● Confirmation of illegal activities

the Corporate Ethics Helpline.
Established in November 2005, the Helpline accepts inquiries from within andoutside the Company. In this system, we stipulated that the person who reported theCode of Ethics

incident will not receive any unfair treatment by the fact that he or she consulted thematter, and we also pay full attention to the protection of privacy of the person who
made the report.
In fiscal 2019, the helpline received five reports and requests for advice. Appropriate

Found it difficult
to consult witha supervisor

Consult with a supervisor or
the person responsible forthe division
SolvedNot solved
Corporate Ethics Helpline

measures have been taken, including investigation and confirmation of the facts in
Rinnai Group Code of Ethics

Compliance Education Activities
Rinnai’s Legal Division conducts legal education every year with regard to laws closely related to operations conductedby business divisions. In fiscal 2019, Rinnai provided legal education mainly related to work style reforms, raised
awareness regarding changes to the enforcement of laws, such as regulations pertaining to upper limits on overtime
hours, promoted methods for ascertaining working hours, clarified obligations for taking leave, and conducted education
related to appropriate labor management. In addition, training was provided for internal compliance committee members
by outside lawyers who introduced examples of potential legal violations in the workplace along with examples aimed atdeepening understanding with regard to compliance.
During fiscal 2019, a total of 821 Group employees participated in training to deepen their knowledge with regard tolaws and regulations. Rinnai also conducts ethics education every year during employee training for new recruits and byrank, with 188 employees attending in fiscal 2019.
In addition, we share a variety of information with domestic Group employees via our in-house intranet, where wepost data such as information regarding legal reforms, legal commentary concerning our operations, and examples ofviolations that occurred at other companies.

these cases of alleged misconduct.

Internal reporting system procedure

Disciplinary Actions
In order to maintain an appropriate work environment, disciplinary action is imposed on those who violate work rules andinternal regulations.
In particular, in cases of severe disciplinary action, the Disciplinary Committee will meet to take strict measures. Furthermore, for the purpose of preventing recurrence, violations and results of disciplinary actions are disclosed every year in the
Company newsletter, except for information that identifies individuals.

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 personal information.
Accordingly, we established the position of chief privacy officer and privacy officer at the head office and require theappointment of privacy officers at all workplaces, including the offices of Group companies in Japan, to educate employees

Confirmation and Modification of Compliance Activities

who handle personal information, and to establish physical and technical systems to insure the safe management of personal
information in each workplace.
The privacy officers also conduct an internal audit once a year to verify the quality of personal information management inEvery year, we conduct employee questionnaires to ascertain how deeply ingrained elements of our Corporate Philosophy

each workplace.There was no leakage of personal information in fiscal 2019.

have become. In fiscal 2019, these showed that 99.6% of respondents were familiar with the Company Motto, 99.3％ of
respondents recognized Rinnai Brand Promise, and 98.9% understood our Corporate Mission. We will continue to actively
promote compliance activities to maintain these high levels.

9798

R i n n a i C S R Re p o r t 2 0 1 9GovernanceManagement Structure

Information Security Policy
Implementation of Information Security Measures
Of the many and varied risks faced in business, information risks have emerged as a serious and rapidly growing

A variety of measures are implemented to prevent information leaks. These include protection against hacking from outside

concern. Firms must now protect themselves against new risks, such as cyber-attacks, as well as traditional risks,sources, anti-virus measures, encryption of data before information assets are removed from company premises, control ofmaking 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.

devices such as USB memory sticks, and measures against spam. Access is rigorously controlled at all plants and offices, andentry 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.

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

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

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

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

regularly to discuss and share information on information security matters and raise the standard of information security.

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

99

100

R i n n a i C S R Re p o r t 2 0 1 9

Data Collection

Management Structure

Leadership (As of June 26, 2019)

Board of Directors,
andAudit & Supervisory
Board Members

Financial Data (Consolidated)

Net sales, Operating income ratio

Kenji Hayashi
Representative Director and Chairman(Billions of yen)

(%)

400

15

Hiroyasu Naito

Tsunenori Narita

320

295.0

Representative Director and President
and Executive President

Representative Director andExecutive Vice President
President’s assistant

240

10.4

Masao Kosugi

Yuji Kondo

Director and Senior Managing Executive
Officer
General Manager of Corporate Planning
Headquarters

Director and Senior Managing Executive Officer
General Manager of Overseas Business Headquarters, and General
Manager of Group 1 and Group 3 Sales & Marketing Division
In charge of Business Planning Division

319.9
10.8

Takashi Kamio

Director

Director

Haruhiko Ishikawa

Katsuhiko Shinji

Standing Audit & Supervisory Board Member

Standing Audit & Supervisory Board Member

Masaaki Matsuoka

Ippei Watanabe

Audit & Supervisory Board Member

10.3

9.5

Audit & Supervisory Board Member

Kinji Mori(excluding concurrent directors)

Managing Executive Officer
General Manager of Marketing & Sales
Headquarters

Managing Executive Officer
General Manager of Quality Assurance Headquarters,
and General Manager of Environment Division

Yasuo Koketsu

Greg Ellis

Managing Executive Officer
General Manager of Administration
Headquarters

Managing Executive Officer
President of Rinnai Australia Pty., Ltd.

Chuji Nakashima

Hirohisa Ooi

Kazuhiko Matsumoto

Executive Officer
General Manager of Research &Development Headquarters, and General
Manager of Technology Administration
Division, Research & Development
Headquarters

Executive Officer
General Manager of Production
Headquarters, and General Manager
of Production Control Division

Executive Officer
General Manager of Seto Factory, Production
Headquarters

Masanori Shimizu

Kazuto Inoue

Hideyuki Shiraki

Executive Officer
General Manager of Technology Development
Division, Research & Development
Headquarters

Executive Officer
General Manager of Production
Engineering Division

Executive Officer
Vice General Manager of Marketing & Sales
Headquarters, and General Manager of Kanto
Branch, Marketing & Sales Headquarters

Koji Fujioka

Fuminobu Ishikawa

Kenji Endo

Executive Officer
General Manager of Sales Division,
Marketing & Sales Headquarters

Executive Officer
President of GASTAR Co., Ltd.

Executive Officer
President of RB Controls Co., Ltd. and President ofNoto Tech Co., Ltd.

12

32.9
32 30.7

9

24
16

80

3

8

0

0

0

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal2019

Operating income ratio (Right)

35.8
35.2
34.5
34.0

22.7

20.6

(%)
100

400

34.2
32.8

22.3

33.3
30.8

21.1

20.4

300

261.4

271.7

290.6

69.4

69.6

67.8

307.9

68.0

320.6

69.4

80
60

200
40
100

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal2019

20

0

Fiscal2015■ Operating income ■ Ordinary income■ Net income attributable to owners of the parent company

Fiscal2016

Net assets (Left)

Fiscal2017

Fiscal2018

Fiscal2019

0

Equity ratio (Right)

Sales of water heaters

Sales of kitchen appliances

Sales of air conditioning appliances,
commercial-use equipment, and others(Billions of yen)(Billions of yen)(Billions of yen)

100
202.3

188.2

202.6

88.4

88.3

88.3

60

80

48

150

60

36

100

40

24

50

20

12

0

Terumasa Kaneko(Billions of yen)

40

6

200

Executive Officers(Billions of yen)

8.9

250

Notes: 1. Nobuyuki Matsui and Takashi Kamio (Directors) serve as an outside director.
2. Masaaki Matsuoka and Ippei Watanabe (Audit & Supervisory Board Members) serve as an outside auditor.

101

347.0

Net assets, Equity ratio (*1)

160

Net sales (Left)

Nobuyuki Matsui

330.2

348.0

Operating income, Ordinary income,Net income attributable to ownersof the parent company

Fiscal 2017

Fiscal 20180

Fiscal 2019

Fiscal 2017

Fiscal 2018

Fiscal 2019

0

26.5

27.7

28.9

9.1

9.4

8.4

17.9

19.0

19.6

Fiscal 2017

Fiscal 2018

■ Air conditioning appliances■ Commercial-use equipment

ROE, ROA(*1)

(Yen)

15

120

12

6

90
8.8
6.0

9.0
6.3

8.4
5.8

7.6
5.1

7.0

76

82

86

90

94

60

4.8

*1: From this consolidated accounting period, R
innai has applied “Partial Amendments to
Accounting Standard for Tax Effect Accounting,”
and amounts have been retroactively adjusted
for past fiscal years

30

3
0

Fiscal2015
ROE

Fiscal2016■ Others

Dividend per share (annual)(%)

9

Fiscal 2019

Fiscal2017

Fiscal2018

Fiscal
2019

0

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

ROA

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R i n n a i C S R Re p o r t 2 0 1 9

Human Resource-and Personnel-Related Data
The Rinnai Group
Number of Full-time Employees (Consolidated, Year-end)
Fiscal 2017
(March 31, 2017)
Rinnai Corporation
Domestic Group companies
Overseas Group companies

Fiscal 2018
(March 31, 2018)

Fiscal 2019
(March 31, 2019)

Executive Position

Male

2,520

2,540

2,594

Female

1,122

1,125

1,108

Male

1,487

1,463

1,362

Female

687

680

682

Male

3,277

3,355

3,404

Female

Total

1,419

1,408

1,463

10,512

10,571

10,613

Managerial Position
Appointment Status(People)As of July 2019

FemaleMale

Non-JapaneseRatio of Women (%)

Supervisory Position

3

685

0

0.40

Of which are general managers or higher

0

29

0

0

Director

0

24

0

0

Of which are executive directors

0

13

1

0

Fiscal 2017
(March 31, 2017)

Fiscal 2018
(March 31, 2018)

Fiscal 2019
(March 31, 2019)
2.7

Voluntary termination rate (%)

Number of Full-time Employees by Region (Consolidated, Year-end)
Fiscal 2017
(March 31, 2017)Japan

Asia, excluding Japan

North America and Europe
Other(Oceania, South America, andEurope)Fiscal 2018
(March 31, 2018)

Male

4,007

Fiscal 2019
(March 31, 2019)

4,003

-

Female

1,809

1,805

1,790

Subtotal

5,816

5,808

5,746

Male

2,604

2,626

2,612

-

1,143

1,133

1,138

-

Subtotal

3,747

3,759

3,750

Male

138

167

191

-

Female5157

90

Subtotal

189

224

281

Employment of persons withdisabilities

31%
Number of OJT accidents

54.1%

Female

30%

32%
2.6%

Male

535

562

601

-

225

218

235

-

Subtotal

760

780

836

7.9%

10,512

10,571

10,613

100%

40–49

50–59

60 or older
Number of non-Japanese employees

20

Number of days taken with paid leave

9.3

9.7

10.5

Utilization ratio (%)

50.3

53.3

57.1

Number of persons with disabilities

60

60

66

Employment rate (%)

1.87

1.90

2.05

Number of the accident

32

25

26

Number of the disasters(%)(LTIFR)

2.22

1.99

2.01

Number of employees on mental health leave

14

17

13

Number of employees who used childcare leave

61

90

82

Proportion of employees who
return to work after taking
parental leave (%)

28%

Number of employees who usedshortened work hours

31%

Number of employees who usedfamilycare leave

Fiscal 2017
(March 31, 2017)

30–39

20

Number of employees who tookchildcare leaves of absence

Rinnai Corporation
Employee Ages
Under 30

2.5

20

35.3%

FemaleTotal

Fiscal 2019
Female ratio

Composition

3,956

Paid leave

2.1
Number of days added with paid leave

Fiscal 2018
(March 31, 2018)

Number of employees who usednursing leave

Fiscal 2019
(March 31, 2019)

Male

669

656

569

Female

495

481

416

Subtotal

1,164

1,137

985

Male

677

697

680

Female

352

347

357

Subtotal

1,029

1,044

1,037

Male

677

654

660

Female

203

217

226

Subtotal

880

871

886
568

Male

483

523

Female69

79

83

Subtotal

552

602

651

Male

14

10

27

Number of employees who took
nursing leaves of absence
Number of employees who used
our reemployment (Come Back)systemNumber of employees who used
the work from home program

Male

1

1

0

Female

94

106

117

Subtotal

95

107

117

Male

100

100

100

Female

99

100

100

Subtotal

99

100

100

Male

0

0

0

Female

106

96

109

Subtotal

106

96

109

Male

0

0

1

Female16

36

53

Subtotal

16

36

54

Male

0

2

1

Female223

Subtotal

2

4

4

Male

0

0

0
2

Female01

Subtotal

0

1

2

Male

0

0

0

Female000Subtotal

0

0

0

Male

0

0

1

Female232

Subtotal

2

3

3

Fiscal 2017
(March 31, 2017)

Fiscal 2018
(March 31, 2018)

Fiscal 2019
(March 31, 2019)
2,097

Working Hours and Average Wages

Female311Annual total actual working hours per employee (Hours)*2

2,139

2,123

Subtotal

17

11

28

Annual non-scheduled working hours per employee (Hours)*2

237

229

217

Subtotal

4

4

2

Average overtime per month (Hours) *2

20

19.4

18.7
6,201,012

Average wage (Yen)

Number of Employees (Non-consolidated)
Fiscal 2017
(March 31, 2017)
Newly recruited employees

Mid-career recruitment
Temporary staff Subtotal
Average working years

Average age (Years old)

103

Fiscal 2018
(March 31, 2018)

Average wages at 30 years old (¥)
Fiscal 2019
(March 31, 2019)

Newly recruited employees on The employees retention on
April 2016
April 201981 Newly recruited
50 employee retention
131 (People)

Male

57

Female3550
33

Subtotal

92

83

6,142,514

6,163,282

Highest wage at 30

309,150

303,750

309,750

Lowest wage at 30

252,950

253,950

242,850

Average wage at 30

284,930

283,761

277,744

Fiscal 2018
(March 31, 2018)

Fiscal 2019
(March 31, 2019)

Male

57

80

Female35

59

Subtotal

92

139

Male

7

4

3

Female8106Number of whistleblower incidents*1

8

0

5

Subtotal

15

14

9

Criminal charges for compliance related accidents and incidents (number of cases)*1,3

0

0

0

Others (Social Contribution and Compliance)
Fiscal 2017
(March 31, 2017)

Subtotal

410

379

283

Total expenditure on social contribution activities (millions of yen)

13

15

14

Male

16.6

16.8

16.6

Political contributions and lobbying activities expenditures (millions of yen)

1

1

1

Female

11.7

12.1

12.7

Subtotal

15.1

15.4

15.5

Male

38.6

38.8

39.3

Female

32.9

33.3

34

Subtotal

36.8

37.1

37.7

* 1. Including domestic consolidated subsidiaries* 2. Excluding managers* 3. In fiscal 2019, subsidiary Noto Tech Co., Ltd., exceeded the standards for wastewater and submitted an improvement report to the local government. The results ofwater quality analysis after countermeasures were implemented confirm that the standards have been maintained without any problems.

104

R i n n a i C S R Re p o r t 2 0 1 9

Data Collection Environmental Data
Basic Environmental Activities (“7E” Strategic Initiatives)
Rinnai has set the long-term goal of “achieving 6.40 million tons of CO2 reduction by 2030” and promotes environmental

Scope: Rinnai Corporation

activities with the participation of all employees in all business areas based on the “7E Strategy” environmental action plan

Reporting Period: April 1, 2018 to March 31, 2019

to be achieved by 2020.

Criteria for self-assessment of fiscal year target attainment

Below is a report regarding targets, results, and estimated results for each of the Basic Environmental Activities’ sev-

Degree of attainment: ○100% △ 70% or more × less than 70%

en Es (E-marketing, E-services, E-products, E-procurement, E-minds, E-factories, and E-offices).

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

Basic Environmental Activities (“7E Strategy”)(2018–2020)

Fiscal 2020 Targets

Field

Fiscal 2019 Targets

Fiscal 2019 Results

Assessment

Environmental management

Acquire ISO 14001:2015
certifications at domestic and international
locations

ISO 14001:2015 certifications acquired at the newly
established Akatsuki and East Oguchi factories
Rinnai Viet Nam and the South Kanto Branch sales
office acquired ISO 14001: 2015 certification○

Environmental marketing(Sales)Environmental services(Construction and repair)2.67 million metric tons of avoided CO2
emissions2.54 million metric tons of avoided CO2 emissions△

Environmental products(Product development)

Energy consumption and CO2 emissions
levelsDevelop high-efficiency equipment

・High-efficiency gas water heaters and kitchen
appliances・Hybrid hot water supply and heating system ECO
ONE received the “Minister of the Environment
Award (Products Category),” the top prize at the
COOL CHOICE LEADERS AWARDS○

Environment marketing (Sales)
Environmental services (Construction and repair)

Expand sales of highly efficient products

Environmental products (Productdevelopment)

Energy consumption and CO2 emissions levels
Continuously develop high-efficiency equipment for
Zero-Energy Homes (ZEH) and products that use
less power during both standby and use

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

Conserve and recycle resources
Continuously evaluate each product’s environmental
impact from its design stage through its lifecycle anddevelop smaller and lighter products

・Product assessment
・Develop resource-saving (smaller and lighter)equipment

Environmental procurement

Promote supply chain management○

Promote supply chain management
Conduct environmental conservation activities incooperation with business partners, and continuously
conduct green procurement management in compliance with regulations in each country

・Ensure suppliers comprehend and manage
environmental load data
・Procure and use materials in accordance with
Rinnai’s green procurement standards
・ Enhance chemical substance management
in response to regulations in individual countries

・Implemented questionnaire to 350 business partners to ascertain operating conditions
・Procured and used materials in accordance with
Rinnai green procurement standards
・Established a foundation for chemical substancemanagement and strengthened collaboration with
suppliers

Environmental minds(Regional communities
and employees)

・Exterminate specified invasive plant species
at several locations
・Accept visits to showrooms and factories atsales offices nationwide
・Participate in environmental exhibitions
・Publish CSR Reports and release ESG information

・Exterminated invasive species around multiple
factories (exterminated weight: 180 kg)
・Rinnai CSR Report 2018 received the “ExcellenceAward” at the Environmental Communication
Grand Prize ceremony○

Share information and contribute to local areas
・Biodiversity conservation measures at each location
・Continue to contribute to the improvement of environmental brands through information dissemination with ESG awareness

Share information and contribute to local
areas
・Show consideration for biodiversity ateach location
・Enhance environmental brands throughthe dissemination of ESG information
Environmental training and education

・Conducted environmental training at each location
・Enacted an internal commendation system (127applications for commendation received)
・Provided opportunities to become acquainted
with various plant life through traditional heirloom
vegetable growing (605 total participants)
・Rinnai environmental enlightenment activities
received the “Excellence Award” at the Environmental Human Resource Development Company
awards○Reduce rate of energy consumption bymore than 2% compared to fiscal 2017

Reduced by 10.8% compared to fiscal 2017○

Environmental procurement

Environmental minds (Regional
communities and employees)

Environmental factories
Environmental offices

2.72 million tons of avoided CO2 emissions

Set a fiscal 2021 goal of 3.32 million tons of avoided
CO2 emissions in the hot water supply system field*1

Environmental training and education
Aim to raise environmental awareness and encourage communication regarding the environment
through environmental events and education for employees

・Plan and conduct environmental training appropriate for participants
・Stimulate environmental activities with ourinternal commendation system

Reduce basic unit of energy consumption*2 by morethan 4% compared to fiscal 2017 by fiscal 2021

Reduce by more than 3% compared to fiscal
2017 by fiscal 2020

Reduce rate of waste discharge*2 by more than 4%compared to fiscal 2017 by fiscal 2021

Reduce by more than 3% compared to fiscal
2017 by fiscal 2020

Reduce rate of waste discharge by morethan 2% compared to fiscal 2017

Reduced by 0.8% compared to fiscal 2017

×

Maintain and advance zero-emissions initiatives

Realize recycling rate of 99.5% or higher

Maintain and advance zero-emissions
initiatives

Realized recycling rate of 99.5% or higher○

Reduce by more than 3% compared to fiscal
2017 by fiscal 2020

Reduce rate of water consumption bymore than 2% compared to fiscal 2017

Reduced by 1.0% compared to fiscal 2017

×Reduce by more than 3% compared to fiscal
2017 by fiscal 2020

Reduce rate of harmful chemicals handled
by more than 2% compared to fiscal 2017

Reduced by 2.6% compared to fiscal 2017○

Reduce rate of water use*2 by more than 4% compared to fiscal 2017 by fiscal 2021
Reduce rate of harmful chemicals*2 handled by morethan 4% compared to fiscal 2017 by fiscal 2021

Environmental factories
Environmental offices

Notes: 1. CO2 reduction contribution = Reduction in CO2 emissions compared to products sold in 2005 resulting from improved performance of Rinnai water heaters (estimated) Concerns emissions produced through markets
in Japan and the United States.
2. Basic unit: Burden per unit standard determined by Rinnai.

105

106

R i n n a i C S R Re p o r t 2 0 1 9

Impact on the Environment of the Rinnai GroupCO2 Emissions

Rinnai is working to achieve full comprehension of all environmental impact related to its business activities. In particular,

Scope 1*1
Scope 2*2
Scope 3*3

Scope

we have identified three important issues involving environmental impact: Energy consumption, CO2 emissions (Scope 1
these three issues, we are implementing third-party inspections and are working to ensure the accuracy and reliability of
information disclosure.

Scope of Accounting

・Rinnai Italia S.r.l.
・Rinnai Canada Holdings Ltd.
・Shanghai Rinnai Thermo Energy Engineering Co., Ltd.
・Rinnai America Corporation
・Rinnai Australia Pty., Ltd.
・Shanghai Rinnai Co., Ltd.
・Rinnai Korea Corporation
・P.T. Rinnai Indonesia
・Rinnai New Zealand Ltd.
・Rinnai Taiwan Corporation
・Rinnai (Thailand) Co., Ltd.
・Rinnai Brasil Heating Technology Ltd.
・Rinnai Viet Nam Co., Ltd.
・RB Korea Ltd.
・Gas Appliance Services Corporation

Purchased goods and services
Capital goods
Fuel- and energy-related3
activities
Upstream transporta4
tion and distribution
Waste generated in
5
operations
6
Business travel
7
Employee commuting
8
Upstream leased assets
Downstream transportation9and distribution
10 Processing of sold products
11
Use of sold products
End-of-life treatment
12of sold products
13 Downstream leased assets
14 Franchises
15 Investments
Total of Scope 1, 2, and 3✓ This icon indicates that a measure has been third-party

Overseas: From January 1, 2018 to December 31, 2018assured by Lloyd’s Register Quality Assurance (LRQA).

ScopeElectricity

Highly Efficient Products(Reduction of CO2 emissions)(Thousand tCO e)
2

6,040

6,000

Total CO2 Emission throughRinnai’s Value Chain
Scope 3, Category 1
Purchased goods
and services

3,320

860 thousand
tons（7%）1,200

11,850 thousand tons

2,540

1,122

1,171

1,192

980

1,000

0
Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal 2021 Fiscal 2031
(Target)(Target)Added Rinnai America Corporation from fiscal 201910,820 thousand tons

（91%）

2,955

3,263

0.03%

−

10,953

10,803

8,838

0.07%

−

630

733

565

0.00%

−

597
524
530
1,783
1,557
1,592
Included in Scope 1 Included in Scope 1 Included in Scope 1

0.00%
0.01%

−
−

−

−

−

−

−

−

−

Not applicable
10,964,072

Not applicable
11,204,402

Not applicable
10,825,493−

91.34%

−
✓
□

6,891

6,580

5,414

0.05%

−

Not applicableNot applicableNot applicable
11,907,899

Not applicableNot applicableNot applicable
12,205,396

Not applicableNot applicableNot applicable
11,851,905

−

−

−

−

−

−

100.0%

for the use of equipmentin each facility
for vehicle use

ButaneAcetylene
Ethylene
Heavy oil
Heating oil
for the use of equipmentin each facility
for vehicle use
for the use of equipmentin each facility
Gasolinefor vehicle use
Total energy consumption

Unit
MWh

Fiscal 2017
108,748.0

Fiscal 2018
118,733.3

Fiscal 2019
123,664.3

Assurance

kNm3

10,735.0

11,096.6

11,220.3

✓
□

kNm3
km3

3.1
24.3

2.0
34.0

1.4
35.0

✓
□
✓
□

t

3,043.0

3,171.0

2,843.1

✓
□

t
t
t
t
kl
kl

3.6
68.8

3.4
68.5

✓
□
✓
□

✓
□
✓
□

✓
□

0.20
25.6

0.20
20.7

1.0
16.5
7.7
0.03
0.18
21.3

kl

26.2

18.1

136.1

✓
□

kl

315.7

391.7

431.3

✓
□

kl

10.6

6.4

5.5

✓
□

kl
GJ

1,810.0
1,122,074

1,933.6
1,171,151

2,098.7
1,192,078

✓
□

−
−

−
−

✓
□
✓
□

✓
□

800
600

Shipping Volume and CO2 Emissions
Scope: Rinnai Corporation

200
Scope 3, Category 11
Use of sold products

2,937

1,000

400

2,000

107

Total Energy Consumption（TJ）

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

4,000

for the use of equipmentin each facility
for vehicle use

Light oil

Climate ChangetCO2ePercentage
Assurance
✓
□
0.34%
✓
□
0.62%
−
7.31%
−
0.22%

Energy Consumption

LPG

Domestic: From April 1, 2018 to March 31, 2019

Fiscal 201940,25473,181
866,847
25,928*1 Scope 1: The volume of greenhouse gases that are leaked directly into the Earth’s atmosphere from sources related to Rinnai’s business activities*2 Scope 2: The volume of emissions that occur during electricity and heat generation phases when using electricity and heat supplied by third parties*3 Scope 3: Volume of emissions that occur during business activities conducted throughout Rinnai’s supply chain (excluding those in Scope 1 and 2)

MethaneThird-Party Assurance

Fiscal 201840,313
67,977
816,828
52,724

1

Town gas

Reporting Period

Fiscal 2017
38,663
61,843
778,284
41,2462

and 2) and use of sold products (Scope 3, Category 11), which produces overwhelmingly high emissions. With regard to

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 Holdings (Pacific) Pte Ltd.
・Rinnai Hong Kong Ltd.

Unit

0
Fiscal 2017

Fiscal 2018

Scope

Fiscal 2019

Unit

Fiscal 2017

Fiscal 2018

Fiscal 2019

Shipping volume

Millions tons/
km

62.28

69.52

58.15

CO2 emissions

tCO2e

11,083

10,891

8,838

108

R i n n a i C S R Re p o r t 2 0 1 9

Resource Recycling

Environmental Accounting

Waste Generated(Including valuables)(Thousand tons)(Thousand tons)

40

30

30

27.8

31.4

28.7

Waste into landfill

Recycled Waste

25

25.4

30
27

(Thousand tons)

Pollution
prevention
In the scope of oper- Environmental
ationsprotection
Resource
recycling

2.4

2.5
2.0

1.6

20
20

Breakdown of Costs for Environmental Protection

1.5

1.2

15
1.0
10

Upstream/downstream

10

0.5

5
0
Fiscal 2017

Fiscal 2018

Fiscal 2019

Management activities

0.0

0
Fiscal 2017

Fiscal 2018

Fiscal 2017

Fiscal 2019

Fiscal 2018

Fiscal 2019

Research and development
Community efforts

Key Activities

Water Withdrawal

Discharge of Water

1,000

969

935

37

38

44

Mainly efforts to save energy

24

36

15

100

104

102

16

8

11

129

153

150

1,052

1,117

1,149

3

2

2

1,362

1,458

1,473

Recycling as well as treatment anddisposal of industrial waste
Collection/recycling and volume/
weight reduction of materials
such as product packaging
Mainly monitoring and surveillance ofenvironmental impact
Research and development onenvironmentally conscious products
Environmental communication with local
regions and beautification/greening at
places of business and surrounding areas

Hazardous Chemicals* Use
1(Thousand m3)

（t）

1,000

25

859

895

881

Key Activities
21.8

846

800

800

20

600

600

15

400

400

10

200

200

5

0

0

0

Environmental protection
Energy reductions
effectWaste curtailment
Water saving

21.6

19.5

Unit

Fiscal 2018

Fiscal 2019

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2017

Fiscal 2018

Fiscal 2019

*1 Rinnai Corporation

Fiscal 2017

Thousand tCO2e
Thousand tons
Thousand m3

Environmental Impact Reduction
Fiscal 2018
1.0
0.8
0.6
3.3
2.4
11.0

(Thousand tCO2e)(Thousand tons)(Thousand m3)

3

4

12
3.3

2.0

2

1.0

8

4

Protecting Biodiversity0
Fiscal 2019

2.4

0.6

2

0.4

0
Fiscal 2017

Fiscal 20180

Fiscal 2019

Fiscal 2017

Scope: Rinnai Corporation
Scope
Unit
Weight of exterminating specified invasive species
kg
Number of people participated in the extermination ofpeoplespecified invasive species

Fiscal 2017――

Fiscal 2018

6.7

6

0.8

Fiscal 2018

11.0

3

1

Fiscal 2017

2.0
0.4
6.7

10

2
1

Fiscal 2019

Water saving

Waste curtailment

CO2 emissions reductions
Fiscal 2017

Fiscal 2019

Mainly efforts to prevent air andwater pollution

Total(Thousand m3)

Costs (Millions of yen)
Fiscal 2018

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2019
30

180

15

63

Economic EffectAccompanying
Environmental
Protection Measures

Key Activities
Reduced expenses through energy conservation, waste curtailment, and water saving

Fiscal 2017

Economic Effect (Millions of yen)
Fiscal 2018
330

400

Fiscal 2019270

・Environmental protection costs are rounded off, so the breakdown and total may not match.
・R&D costs are associated with the development of environment-related, leading-edge technologies and products for the heat-energy appliance market as well as products that, based on Rinnai’s standards, mark an
improvement over existing products.
・Costs covering other applications, which include non-environment-oriented activities, are apportioned according to internal rules.
・The calculations above exclude depreciation and amortization expense.
・The economic effects achieved through energy-savings and waste reduction are not increases or decreases in overall costs but rather an effective amount regarded for its economic benefit through the associated activitiesof each site.
(Effects of application cases (total) of “Rinnai Group Environmental Award” (President's award) for all domestic and overseas Group sites)
・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.

109

110

R i n n a i C S R Re p o r t 2 0 1 9Chronology of Environmental Activities at Rinnai
1993
1994
1996

March Drafted Environmental Preservation Action Plan; established Environment Committee
December Won prize at 4th Energy Conservation Vanguard 21 for gas-blast type high-heat griller RGM-4, 6, 8
July Market debut: Low-NOx burner built-in water heater (NOx at less than 60 ppm)

June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer2013

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

1998

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

June Market debut: Absorption-type gas air conditioner (non-CFC)
October Acquired ISO 14001 certification at Oguchi Factory
December Won prize at 8th Energy Conservation Vanguard 21 for tabletop oven RSBN-096

2014

October Market 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
1999

2000

September Held the fifth Rinnai Group Environmental Awards ceremony

April Market debut: Eco One third-generation hybrid water heater with heating systems
2015

September Market debut: Ecomax burner and Eco burner-equipped gas cooking stove

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

October Market debut: Condensing water heater boasting 95% heat efficiency and NOx emissions under 30 ppm

May Acquired a certificate of a low-carbon building as Japan’s first residential complex in which all units haveECO ONE and floor heating

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

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

May Drafted Rinnai Environmental Action Principles
June Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
August Published inaugural issue of Environmental Report

2016

July Participated inCOOL CHOICE campaign, a new national movement to global climatic changes and reducing greenhouse effect gas
August Won Good Packaging Prize at Japan Packaging Contest 2014 for a bottom tray with parts box for important attachments

2001

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

September Held the seventh Rinnai Group Environmental Awards ceremony

2002

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

December 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

June Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
2003

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

2004

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

January 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 for third-generation ECO ONE hybrid
water and space heating system

June Environment Month event: Talk given at Rinnai by a corporate environmental pioneer
December Created the Green Procurement Standards Guide (first edition)
2005
2006
2007

March Conducted inspections regarding conversion to ISO 14001:2015 standards
2017

June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer
September Participated in Team Minus 6%, a national movement to prevent global warming
June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer

2008

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

January Held the eighth Rinnai Group Environmental Awards during our New Year’s celebration

2009

February Won first prize in the Aichi Environmental Awards for our development of the ECO ONE , which is an extremely
energy-efficient water heater and heating system that cleverly and optimally uses diverse energy

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

April Published fourth edition of our Green Procurement Standards Guide
2018

February Market debut: Eco-Jozu hot-water/heating unit RVD-E Series
June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer

December Participated in the EcoPro 2018 exhibition

February Won Silver Award at Aichi Environmental Award 2010 sponsored by Aichi Prefecture for global promotion of high-efficiency combustion appliances and systems, including latentheat recovery water heaters

January 9th Rinnai Group Environmental Award Ceremony held during the New Year's ceremony
February Received the “Minister of the Environment Award,” the top award at the COOL CHOICE LEADERS AWARD 2018
sponsored by the Ministry of the Environment (development of ECO ONE)
Received the “Excellence Award” at the 22nd Environmental Communication Awards sponsored by the Ministry of theEnvironment (CSR Report 2018)

June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer
September Held the first Rinnai Group Environmental Awards ceremony
April Market 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 systemSOLAMO to use solar heat
2011

June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer
September Held the second Rinnai Group Environmental Awards ceremony
December Won the Resource Recycling Manufacturing Research Group Chairman’s Award at the IMS 16th Resource Recycling
Manufacturing Symposium for energy-saving measures concerning enamel combustion furnaces
June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer
September Held the third Rinnai Group Environmental Awards ceremony

2012

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 IMS 17th Resource Recycling
Manufacturing Symposium for our development of ahome-use hybrid water heater with heating systems

June Environment Month events:
Removed Coreopsis lanceolata coreopsis plants, an invasive species, and held an Environmentally Progressive
Company Inspection Council (exchange meeting)Exterminated the specified invasive species Coreopsis lanceolata
September Held internal study groups on ESG and the SDGs (invited outside lecturers)

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
2010

June 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)
November Rinnai Kansai branch office received Eco-Drive Excellent activity certificate in the general division of the 2017 Eco-drive Activity
Concours, sponsored by the Foundation for Promoting Personal Mobility and Eco-Drive Ecological Transportation

October Won Electric Equipment Packaging Category Award in the Good Packaging division at Japan Packaging Contest 2006
June Environment Month event: Organized an exchange event (visit) with a corporate environmental pioneer

111

August Won Large and Heavy Good Packaging Prize at Japan Packaging Contest 2014 for returnable package
December Won 2014 Energy Saving and New Energy Grand Prize in Kitaguni (northern area inJapan) for Eco One hybrid water
heater with heating systems for the Hokkaido region
Won the Chunichi Shimbun Award at the IMS 19th Resource Recycling Manufacturing Symposium for our development of an eco-friendly water heater with bath-filling systems

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

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

March Won special prize at 2nd Eco-Design Awards for tabletop cooking stove
1997

September Held the fourth Rinnai Group Environmental Awards ceremony

2019

May Received the “Excellence Award” from the Ministry of the Environment(Medium-term management plan G-shift 2020 “Development of human resources to promote environmental
management and contribution”)
Ranked 26th overall at the 22nd Environmental Management Ranking hosted by The Nikkei, which evaluates theenvironmental management level of Japanese companies
June Monthly environmental events
・Held environmentally advanced company exchange meetings (inspection meetings)
・Exterminated the specified invasive species Coreopsis lanceolata
September Received “Honorable Mention” at the 2nd Eco Pro Awards sponsored by the Industrial Environment Management
Association of Japan (for the development of “optimal hot water supply and heating systems” according to energy andenvironmental conditions in each country and region)112

R i n n a i C S R Re p o r t 2 0 1 9

Certification Acquisition Status

Data by Site (Fiscal 2019 Results)

Environmental Management System International Standard [ISO 14001:2015]
Location

Rinnai

DomesticGroup
companies

OverseasGroupcompanies

Certified Year/Month✓ CO2 emissions

Amount of waste
generated(Including valuables)(Thousands of tons)*1

Amount of waste
into landfill(Thousands of tons)

Amount of recycled
waste(Thousands of tons)

55,648

4.8

0.0

4.8

✓

Location

Scope 1
(tCO2e)Scope 2
(tCO2e)Energyuse (GJ)

Oguchi Factory

Oguchi-cho, Niwa-gun, Aichi

1,956

2,224

Site nameResearch and Development Headquarters

October 1997

Production Engineering Division

October 1997

Seto Factory

Seto-shi, Aichi

1,652

4,079

64,772

2.2

0.0

2.2

Oguchi Factory

October 1997

Akatsuki Factory

Seto-shi, Aichi

644

1,448

23,773

1.1

0.009

1.1

Seto Factory

December 2000

Environment DivisionDecember 2000

Technology Development Center

Oguchi-cho, Niwa-gun, Aichi

2,710

3,078

77,232

0.1

0.0

0.1

Quality Assurance Headquarters

November 2003

Head Office and Sales Offices*2

―

3,765

2,123

76,589

1.7

0.007

1.6

Head Office

December 2008

Yanagisawa Manufacturing Co., Ltd. Kadoma-shi, Osaka

762

700

21,016

0.4

0.0

0.4

Chube Branch

December 2008

Kansai Branch

May 2010

Rinnai Technica Co., Ltd.

Kakegawa-shi, Shizuoka

1,470

1,476

36,053

1.0

0.006

1.0

Logistic Control Office

May 2010

Gastar Co., Ltd.

Yamato-shi, Kanagawa

1,484

1,655

43,186

0.5

0.002

0.5

Kanto Branch

May 2011

RB Controls Co., Ltd.

Kanazawa-shi, Ishikawa

1,013

3,471

38,332

0.4

0.014

0.4

Chugoku sales office

May 2011

Rinnai Parts CenterMay 2011

Rinnai Precision Co., Ltd.

Komaki-shi, Aichi

3,503

7,287

124,174

2.5

0.008

2.5

Kyushu Branch

April 2012

RT Engineering Co., Ltd.

Toyoda-shi, Aichi

288

1,306

15,525

0.4

0.002

0.4

Hokkaido sales office

April 2012

Japan Ceramics Co., Ltd.

Kani-shi, Gifu

1,457

1,049

32,595

0.3

0.036

0.2

Niigata sales office

April 2012

Tohoku Branch

May 2013

Noto Tech Co., Ltd.

Nakanoto-cho, Kajima-gun, Ishikawa

2,094

1,614

45,365

2.0

0.33

1.7

Shikoku sales office

May 2013

Techno Parts Co., Ltd.

Aichi

54

102

1,852

0.018

0.0

0.016

Higashikanto sales office

April 2014

Rinnai Holdings (Pacific) Pte Ltd.

Singapore

37

21

730

―

―

―

Kitakanto sales office

April 2016

Rinnai Hong Kong Ltd.

Hong Kong

0

3

15

Customer Division

May 2017―――

Akatsuki Factory

March 2018

Italy

47

15

882

―

―

―

United States of America

706

1,093

21,143―――Rinnai Italia S.r.l.

Oguchi Higashi Factry

June 2018

Rinnai America Corporation*

Minami-Kanto Branch

June 2019

Rinnai Australia Pty., Ltd.

Australia

1,992

7,185

57,632―――Gastar Co., Ltd.

October 2001

Rinnai Technica Co., Ltd.

December 2003

Shanghai Rinnai Co., Ltd.

China

2,539

9,492

91,919―――

Yanagisawa Manufacturing Co., Ltd.

June 2004

Rinnai Korea Corporation

South Korea

2,573

5,732

95,623―――Rinnai Precision Co., Ltd.

December 2005

P.T. Rinnai Indonesia

Indonesia

5,199

12,710154,913―――

Japan Ceramics Co., Ltd.

January 2006

RT Engineering Co., Ltd.

March 2006

Rinnai New Zealand Ltd.

New Zealand

239

54

5,881

―

―

―

RB Controls Co., Ltd.

March 2006

Rinnai Taiwan Corporation

Taiwan

1,567

1,242

34,798―――

Noto Tech Co., Ltd.

January 2007

Rinnai (Thailand) Co., Ltd.

Thailand

1,318

2,139

37,290―――Rinnai Korea Corporation

July 1997

Rinnai Brasil Heating Technology Ltd. Brazil

140

55

5,313

RB Korea Ltd.

October 2006

―

―

―

Shanghai Rinnai Co., Ltd.

December 2008

Rinnai Viet Nam Co., Ltd.

Viet Nam

677

729

14,400―――Rinnai Brasil Heating Technology Ltd.

June 2011

RB Korea Ltd.

South Korea

91

654

6,514

―

―

―

Rinnai New Zealand Ltd.

July 2013

Rinnai Viet Nam Co., Ltd.

June 2019

1. In some cases, there is a mismatch between the breakdowns and totals for the amount of waste generated, the amount of waste into landfill and the amount of recycled waste (Unit: Thousands of tons).
2. Includes the Head Office, nation-wide sales offices, logistics centers and the Rinnai Parts Center.
3. Includes Rinnai Canada Holdings Ltd.
4. Includes Gas Appliance Services Corporation.
5. Includes Shanghai Rinnai Thermo Energy Engineering Co., Ltd.

3

Environmental Management System “Eco Action21”
Location
Domestic Group
companies

113

Techno Parts Co., Ltd.

Certified Year/Month
August 2011114

R i n n a i C S R Re p o r t 2 0 1 9

Water Discharge*1 (Fiscal 2019 results)
Site

Water discharge
standard

Substance

Regulation value

PRTR*3 (Fiscal 2019 results)(Water discharge to)Oguchi Factory

Seto Factory

Akatsuki Factory

Sewer

River
(YatokoRiver)

River(KazunariRiver)

Yanagisawa
Manufacturing Co.,
Ltd.

Sewer

Rinnai Technica Co.,
Ltd.

River
(Ota River)

Gastar Co., Ltd.,
Head Office andFactories

Sewer

Gastar Co., Ltd.,
Research Building

River(Sakai River)

Rinnai Precision
Co., Ltd., Head
Office and Komaki
Factory
Rinnai Precision
Co., Ltd.,
Kani Factory

RT Engineering Co.,
Ltd.

Japan Ceramics
Co., Ltd.

Noto Tech Co., Ltd.

Sewer

River
(Kani River)

Sewer

River
(Kani River)River(NagasoRiver)

pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS
pH
BOD
COD
SS

5.7 ～ 8.7300―
300
5.8 ～ 8.625(20)
25(20)
30(20)
5.8 ～ 8.620
20
20
5.0 ～ 9.0600―
600
5.8 ～ 8.625(20)
160(120)50(40)
5.0 ～ 9.0600――
5.8 ～ 8.6152540
5.8 ～ 8.6300―
300
5.8 ～ 8.6
15―30
5.7 ～ 8.7300―
300
5.8 ～ 8.615(10)
160(120)30(25)
5.8 ～ 8.240(30)
160(120)40(30)

5.8 ～ 8.7240―
240
6.0 ～ 8.4
20
20
20
5.8 ～ 8.616
16
16
5.9 ～ 8.5300―
300
6.3 ～ 8.1
20(20)
20(15)
30(20)
5.2 ～ 8.8
480――
6.0 ～ 8.41220
32
6.0 ～ 8.4300―
300
5.8 ～ 8.6
15―30
5.7 ～ 8.0
150―
150
5.8 ～ 8.61530
30
6.0 ～ 8.2
36(27)
140(100)
36(27)

Amount of emission/discharge

Actual value

Voluntary
Maximum

Mean

7.4
130
―
88
7.7
3.0
4.6
5.0
7.5
11.0
10.0
Less than 1
8.4
35.0
―
30.0
7.7
21.0*2
7.7
5.4
7.8
16
―
―
7.8
Less than 5Less than 5Less than 5
7.2
250
―
2.8
6.7
4.8
―
4.2
7.6
6.4
―
3.0
7.5
9.3
10.0
10.0
7.7
15.0
25.0
5.0

7.0
72
―
33
7.4
1.1
2.2
1.0
7.2
4.7
9.1
Less than 1
7.7
7.0
―
5.4
7.4
10.9
6.0
4.7
7.6
12
―
―
7.7
Less than 5Less than 5Less than 5
6.9
117
―
1.0
6.4
2.3
―
2.0
6.9
3.5
―
1.4
7.2
4.4
―
3.1
7.4
8.2
16.3
3.0

Site
Oguchi Factory

Seto Factory

Akatsuki Factory

RB Controls Co.,
Ltd.;
Kanaiwa Factory

RB Controls Co.,Ltd.;
Tsurugi Factory
Japan Ceramics
Co., Ltd.

Noto Tech Co.,
Ltd.

NumberClass I designated chemical
substance nameHandling
amountPublicwatersAir

SoilAmount of transfer

Landfill

Outside therelevant office

Sewers53

Ethylbenzene

1,400

890

0

0

0

0

390

71

Ferric chloride

1,700

0

0

0

0

0

0

80

Xylene

2,500

1,600

0

0

0

0

690

296

1,2,4-trimethylbenzene

1,000

1,000

0

0

0

0

0

300

Toluene

1,700

1,100

0

0

0

0

490

309

Nickel compounds

1,100

0

0

0

0

0

130

405

Boron compounds

3,100

0

0

0

0

0

350

53

Ethylbenzene

1,800

1,400

0

0

0

0

390

80

Xylene

2,300

1,900

0

0

0

0

390

87

Chromium and chromium (III) compounds

17,000

0

0

0

0

0

0

300

Toluene

1,300

1,200

0

0

0

0

88

308

Nickel

31,000

0

0

0

0

0

0

53

Ethylbenzene

1,000

920

0

0

0

0

120

80

Xylene

2,400

2,300

0

0

0

0

100

300

Toluene

1,100

330

0

0

0

0

770

31

Antimony and its compounds

3,100

0

0

0

0

0

3,100

265

Tetrahydromethylphthalic anhydride

17,000

0

0

0

0

0

0

448

Methylenebis (4,1-phenylene) diisocyanate

2,700

0

0

0

0

0

0

460

Tritolyl phosphate

2,900

0

0

0

0

0

2,900

448

Methylenebis (4,1-phenylene) diisocyanate

43,000

0

0

0

0

0

0

460

Tritolyl phosphate

59,000

0

0

0

0

0

59,00053

Ethylbenzene

1,500

1,300

0

0

0

0

200

80

Xylene

2,200

1,900

0

0

0

0

230

300

Toluene10,000

9,900

0

0

0

0

370

412

Manganese and its compounds

1,600

0

0

0

0

0

950

31

Antimony and its compounds

11,000

0

0

0

0

0

0

71

Ferric chloride

1,200

0

0

0

0

0

0

309

Nickel compounds

1,400

0

2

0

0

0

400

405

Boron compounds

9,700

0

120

0

0

0

1,600

*3 Class I designated chemical substance stipulated by the Pollutant Release and Transfer Register (PRTR) Law (Unit: kg), Two significant digits*1. 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*2. As a result of water quality inspections of wastewater, values exceeding the voluntary standard value was detected in BOD at Rinnai Technica Co., Ltd.
While identifying the source together with the measuring company, the maintenance cycle of the septic tank was revised with the intention of replacing the equipment renewal and improvements such as processing control
optimization were implemented because the processing capacity of the septic tank was assumed to be insufficient. Water quality results after these measures show no problems in terms of maintaining the voluntary standards.

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R i n n a i C S R Re p o r t 2 0 1 9

Emissions into the Air*1 (Fiscal 2019 results)
Site

Facility

Oguchi Factory

Seto Factory

Voluntary

Actual value (Maximum)

Combustion furnace Soot and dust

0.25

0.16

0.001

NOx emissions

180

150

67

Soot and dust

0.1

0.08

0.002

NOx emissions

150

96

60

Soot and dust

0.1

0.05

0.002

NOx emissions

150

79

26

Australia

Combustion furnace Soot and dust

0.20

0.15

0.003

BoilerAkatsuki Factory
Yanagisawa Manufacturing Co., Ltd.

Calculation and Reporting Manual (Ver. 4.3.2)
Overseas emission factors: Latest figures published for electricity utilities, etc., in the countries concerned
0.6110 ～ 1.2700

tCO2e/MWh

New Zealand

0.1120tCO2e/MWh0.3010 ～ 0.4490

tCO2e/MWh0.8000tCO2e/MWhNOx emissions

230

200

2

Soot and dust

0.1

0.1

0.002

Hong KongNOx emissions

150

150

32

Taiwan0.5401tCO2e/MWh

Combustion furnace Soot and dust

0.1

0.1

0.002

South Korea

0.4585tCO2e/MWhBoilerJapan Ceramics Co., Ltd.

Domestic emission factors: “Emission Factors by Electricity Utility (for FY2019 Reporting)” in MOE/METI, GHG Emission

United States

BoilerGASTAR Co., Ltd.

CO2 conversion factors

Regulation value

BoilerSubstance

Scope 2

Electricity

Soot and dust

0.1

0.08

0.0012Indonesia

0.8770tCO2e/MWhNOx emissions

150

120

29

Thailand

0.5020tCO2e/MWh

Combustion furnace Soot and dust

0.125

0.125

0.032

China (Shanghai)

0.8046tCO2e/MWhNOx emissions

90

90

15

Brazil

0.0740tCO2e/MWh

SOx

0.25

0.25

0.01

Singapore

0.4192tCO2e/MWhVietnam

0.8649tCO2e/MWhItaly0.4455tCO2e/MWh*1 Soot and dust: g/m3N, NOx: ppm, Sox: m3N/h

Conditions for Calculations

Scope 3・Calculated in accordance with MOE/METI, Basic Guidelines on Calculation of Greenhouse Gas Emissions Through-Scope 1out the Supply Chain (Ver. 2.3)

CO2 conversion factors

・Conditions for all categories

Emission factor: MOE/METI, GHG Emission Calculation and Reporting Manual (Ver. 4.3.2)
Heating value: ・City gas: 45 MJ/Nm3
・Methane gas: 39.7 MJ/m

3

Gas

Oil

Scope of calculation

Rinnai Corporation

Emission factors

・MOE, Emission Factor Database (Ver. 2.6)
・CFP Communication Program Secretariat, Carbon Footprint Communication Program: Basic Database (Ver. 1.01)(Domestic Data)

Town gas

2.24

tCO2e/1,000 Nm3

Methane2.02

tCO2e/1,000 Nm3

LPG

3.00

tCO2e/t・ Conditions for category 11 (Use of sold products)

Butane3.00

tCO2e/tProducts covered: Water heaters sold by Rinnai

Heavy oil

2.71

tCO2e/kl

Kerosene

2.49

tCO2e/kl

Light oil

2.58

tCO2e/kl

Conditions: Conditions defined by Rinnai

Gasoline

2.32

tCO2e/kl

Emission factors:

Period: 10 years

・Electricity: 0.570 kgCO2e/kWhFederation of Electric Power Companies of Japan, Environmental Action Plans in the Electricity Industry,
September 2015 (reference materials: collected data on performance in FY2014)
・City gas: 2.21 kgCO2e/m

3Tokyo Gas Co., Ltd., City Gas CO2 Emission Factors (13A, 45 MJ/m3, ordinary households and othercustomers receiving low-pressure supply)

117

118

R i n n a i C S R Re p o r t 2 0 1 9

Third-Party Assurance Statement

119

120

R i n n a i C S R Re p o r t 2 0 1 9External Acclaim and Recognition

International Recognition for CSR Efforts

Certified by the City of Nagoya as a “Company Promoting Women’s Activities”

Rinnai was selected for inclusion in FTSE4Good Index Series and the

Rinnai was certified as a “company promoting women’s activities,” as part of

FTSE Blossom Japan Index, the leading environment, society and gov-

a scheme operated by the City of Nagoya (Aichi Prefecture) in fiscal 2014.
We have been certified in recognition of three key initiatives aimed aternance (ESG) investment indices.

expanding frameworks, assigning duties, and changing attitudes, to support
female employees so that they play a greater role in the workplace.

Received “Minister of the Environment Award” atthe COOL CHOICE LEADERS AWARDS 2018

Registered by Aichi Prefectural Government as a “Family Friendly Company”
In March 2014, Rinnai was registered by the Aichi prefectural government

In recognition of our development of the ECO ONE hybrid water heaters

as a “family friendly company,” based on its commitment to ensuring thatwith heating systems, Rinnai received the “Minister of the Environment

employees strike a balance between their work and private lives.

Award” in the Products Category at the COOL CHOICE LEADERS
AWARDS 2018 (organized by the Ministry of the Environment).

ECO ONE hybrid water heaters withheating systems

Certified as a “General Business Owner Meeting Standards”
Received “Excellence Award” at the 22nd
Environmental Communications Awards

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

The Rinnai CSR Report 2018 received the “Excellence Award for En-

standards” in accordance with the Act on Advancement of Measures tovironmental Reporting at the 22nd Environmental Communication

Support Raising Next-Generation Children, and was awarded the “Kurumin”

Awards” co-organized by the Ministry of the Environment (MOE) andnext-generation certification mark.

the Global Environmental Forum (GEF).

Rinnai CSR Report 2018

Certified as a “Parent-Friendly Company”
Received “Excellence Award” at the Environment-Friendly

In fiscal 2016, we were recognized as a parent-friendly company under Na-

Human Resource Company Awards 2018

goya’s parent-friendly company accreditation scheme. The purpose of such
schemes is to certify or recognize companies that are working to create

Rinnai received the “Excellence Award” at the Environment-Friend-

parent-friendly environments.

ly Human Resource Company Awards 2018 (sponsored by the
Ministry of the Environment and the Environmental Consortium for
Leadership Development [EcoLeaD]) in recognition of our efforts
to foster environmental human resources, such as environmental

Exterminated the specified invasive species

Coreopsis lanceolataconservation activities aimed at protecting local nature throughparticipation in photography.
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