Environmental &Social Report
2007
NGK Spark Plug GroupCorporate profile
Corporate nameHead Office
Foundation
CapitalBusiness

NGK Spark Plug Co., Ltd.
14-18, Takatsuji-cho, Mizuho-ku, Nagoya
October 26, 1936
47,869,270,000 yen(1) Manufacturing and selling spark plugs andrelated products for internal-combustion engines.
(2) Manufacturing and selling new ceramics andapplicable products.
Group companies 36 subsidiaries (10 in Japan, 26 overseas),
8 affiliates［Semiconductor components］●Ceramic IC packages●Organic IC packages●Packages for communication devices●Antenna Switch Module［Electronic components］●Dielectric filters●Dielectric resonators●Electronic igniter●Ultrasonic transducers［Plugs, related products］

Communication
media related area
Semiconductor
Electronic components●Spark plugs for automobile and motorcycle●Spark plugs for marine engines and farm equipments●Glow plugs for diesel engines●Igniter plugs for aircraft●Igniter plugs for rocket●Resister cable, resister cover［Sensors］●Exhaust gas oxygen sensors●Universal A/F heated exhaust gas oxygen sensors●Knock sensors［Other related products］●Ceramic-based parts for engines●QGS/QHS

Business
areas
Ceramic
related area
［Cutting tools］●Ceramic inserts●Cermet inserts●Coated chips●Micro grain carbide chips

Cutting tool
Applied ceramic technology［Technical ceramics］●Ceramic tube for VCB●Parts for semiconductor
manufacturing equipments●Ceramic heaters●Silicon rectifier containers●Ozonizer●Bio ceramics●Oxygen concentrator& Social Report 2007
01 Environmental
NGK Spark Plug Group Environmental and Social Report

Automobile
related area
Plug
SensorIndex◇ Corporate profile◇ Editorial Policy◇ Manufacturing one step ahead• Corporate philosophy

01
02
03
04

• Corporate code of conduct

05
07
09
10

1 Compliance
2 Consumers and clients
3 Fair dealing
4 Communication
Financial Data
5 Environmental conservation

11

Environmental declaration, environmental policy,
environmental action plan

Editorial Policy

Environmental load from business activities 13

This eighth report has been prepared based on our corporate code of conduct
with the aim of clearly describing the concepts, mechanisms, and results of all
our activities.
[Reference] “Environmental Reporting guidelines” issued by the Ministry of the Environment of Japan

15
19
26
29
30
31
33
35
39

Management
Factory/Office
Products
Communication
Mind
Data

Reporting scope

6 Social contribution

Intended readers All stakeholders including customers, investors,
shareholders, residents of neighboring communities,business associates and employees.
From April 1, 2005 to March 31, 2007
Period covered
Reporting scope

7 Employees
8 Civil society

39
40
41
41

9 Cultural respect* Some other very recent activities and cases are also included.

10 Ethics

Environmental aspects : NGK Spark Plug Co., Ltd. and its 11
domestic affiliate companies
Social aspects : NGK Spark Plug Co., Ltd.

◇ Messages from stakeholder◇ Third party examination

NGK Spark Plug GroupFor the purpose of this report, “NGK Spark Plug Group” represents NGK Spark PlugCo., Ltd. as well as the 11 consolidated domestic subsidiaries and affiliates excluding
Tokai Taima Kogu Co., Ltd.
NGK Spark PlugCo., Ltd.

Affiliates

Head Office andHead Office Factory

Nittoku Alfa Service Co.,Ltd

IijimaCeramic Co., Ltd.

Kamioka
Ceramic Co., Ltd.

Komaki Factory

Nittoku Unyu
Co.,Ltd

Nakatsugawa Ceramic Co., Ltd.
Head Office Factory,
Takenami Factory

Nittoku Seisakosho Co., Ltd.
Head Office Factory,
Oguchi Factory

Miyanojo
Factory

Kani
Ceramic Co., Ltd.

Nichiwa Kiki
Co., Ltd.

Ise Factory

Nansei
Ceramic Co., Ltd.

Tono
Ceramic Co., Ltd.

Ceramic Sensor
Co.,Ltd: Region (joint acquisition of ISO14001)
Factories and companies in blue : ① Affiliates issuing site reports② These subsidiaries are included in the consolidated environmental accounting.
From this report onward, Takenami Factory of Nakatsugawa Ceramic Co., Ltd. will be included in the scope of the report.
* Details of environmental preservation activities are set out in each site report.
Please contact the relevant inquiry desk on p.31.

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report02

November 2006 marked the 70th anniversary of our founding. We recognize this as proof of
the warm support of our stakeholders, for which we are very grateful. At the time of our
foundation in 1936 we had a motto “high quality products at low price, quick delivery, andmanagement and workers as a single entity”. This philosophy is carried over today as “thegood product principle”, and “total involvement”, which constitute the basis of our businessactivities.
These days, rapid changes are occurring in society, and particularly the demands placed on
corporations due to environmental issues are changing from day to day. The firstcommitment period of the Kyoto Protocol is about to start, and along with reports
concerning the current status and future predictions of global warming there are increasing
demands throughout the world to prevent global warming. We also rank global warming as
an important issue. However it is difficult to devise countermeasures through innovation ofenergy conservation technology and environment technology that can significantly reducegreenhouse gas emissions. For this reason, I think that it is important to develop low-profile
activities through total involvement, and I would like us to become a company that cancontribute to the prevention of global warming through energy conservation activities during
production, and also by developing and popularizing energy saving products.
The strengthening of regulations concerning hazardous chemical substances is alsocommanding interest. We have a high export ratio, and our products are used throughout
the world, so we are carrying out measures with a view to observing the environmental
regulations of each country. Particularly, because we manufacture products at our factories
throughout the world aiming at achieving a uniform world level ofquality, we consider chemical substances contained in products
as part of product quality. For this reason, I would like not only
the NGK Spark Plug Group but also our suppliers to carry out
stringent control of chemical substances.
There are various risks concerning the environment, such as
global warming, chemical substances, and waste matter. As afundamental means of dealing with these issues, I would like topositively cope with changes and aim at manufacturing one stepahead.
This “Environmental and Social Report 2007” covers thesituation for fiscal 2006. Like last year’s report, this reportcomplies with the corporate code of conduct. We welcome yourcandid opinions.

President, Chief Environment Administrator
NGK Spark Plug Co., Ltd.

This report was compiled inaccordance with our corporate
code of conduct.
& Social Report 2007
03 Environmental
NGK Spark Plug Group Environmental and Social ReportOrganization

2

Fair dealing

1

Consumers andclients

ActionGuideline

1

AuditorManaging Directors
Committee

32Management
PolicyBoard ofAuditors

Corporatephilosophy

Board
Committee

With global views and ideas,we pursue new values
linking technology and people.

President

Board ofDirectors

Aiming to become a proposal-making corporation,
we continue to present new values to the world.

ComplianceCorporate philosophy

Commitment

4

Ever onward! Always mindful of what is the best course, we swiftly put it into action.

shall respect human rights and observe both the spirit as well as the letter of all laws and regulations applicable to our
1 We
activities throughout the world.
shall develop and provide socially beneficial and safe goods and services by making full use of the most suitable
2 We
technologies and our accumulated experience and shall strive to earn the confidence of our consumers and customers,
shall promote fair, transparent, free competition and sound trade. We shall also ensure that our relationships and3 We
contacts with government agencies and political bodies are of a sound and proper nature.
communication not only with our shareholders but also with members of society at large, we shall engage in
4 Emphasizing
active and fair disclosure of corporate information through ongoing corporate communications.
that a positive involvement in environmental issues is a priority for all humanity and an essential aspect of our activities
5 Recognizing
and a prerequisite for our very existence as a company, we shall approach these issues voluntarily, proactively, and speedily.

shall strive to respect the diversity and individuality of our employees and foster a safe and excellent working
7 We
environment where they can realize their full potential.
shall reject all contacts with organizations involved in activities in violation of the law or accepted standards of
8 We
responsible social behavior.

shall exercise leadership in making the letter and spirit of the Code of Conduct integral to everyday business
10 Management
practice, thoroughly implementing the Code of Conduct throughout the Company and inculcating it throughout the Groupand its supply chain. To this end, management shall continually improve internal systems while striving to cultivate ethics.
Revised November 2004

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report04

9Ethics9

We shall respect the cultures and the customs of local communities where we do business and strive to manage ouractivities throughout the world in such a way as to promote and contribute to the development of local communities.

8

Cultural respect

6 As a good corporate citizen, we shall actively engage in philanthropic activities and other activities of benefit to society.

7

Civil society

while taking necessary measures to protect personal data and customer-related information.

6

Employees

At NGK Spark Plug Co., Ltd., in order to make the corporate philosophy expressed in our slogan, “With established trust and confidence insideand outside the company, we aim to contribute to the peoples of the world by creating and putting at their disposal new values for the future”
an everyday reality, we undertake to conduct ourselves in a socially responsible manner in accordance with the following 10 principles.

5

Socialcontribution

Cutting Tool
Division

Fine Ceramics
Division

Sales and Marketing
Headquarters

Engineering andDevelopment Division

Semiconductor
Components Division

Electronic
Components Division

Sales and Marketing
Headquarters

Corporate
code of conduct

Spark Plug Division

Adopted in November 1996

Sensor Division

SloganEnvironmental
conservation

Technical
Ceramics Group

Action Guideline

With established trust and confidence inside and outside
the corporate, we aim to contribute to the peoples of the world bycreating and putting at their disposal new values for the future.

3

Communication

Secretarial Office

Corporate Planning
Department

General Administration
Department

Communication Media
Components Group

Personnel
Department

Accounting and
Finance Department

Purchasing
Department

Information System
Department

Intellectual Property
Department

Automotive
Components Group

Quality Assurance
Department

Environment and
Safety Management
Department
Administration
Department,
Komaki Factory

We offer a working environment in which each one of us is encouraged tomake full use of his or her personality and capability. With all our power weare dedicated to pursue management based on trust and confidence.

Production Engineering
Group

Management Policy

R & D CenterWith full use of the most suitable technology and our accumulated experience,
we continue striving to offer new values to the peoples of the world.

Tokyo OfficeCommitment101Compliance
We shall respect human rights and observe both the spirit as wellas the letter of all laws and regulations applicable to our activities
throughout the world.
• NGK Spark Plug Group is a global corporation with an export ratio of 80% and production and sales organizations
worldwide. To maintain the trust of international society, we will “respect human rights and abide by all laws andinternational rules as well as the spirit of the law, whether in Japan or overseas,” namely the respect of human rights
and compliance, as the basis of our actions.
• To earn respect and popularity from the people of the world, each employee of our group will behave in accordancewith our code of conduct and with social decency.

Overseas Network
NGK Spark PlugEurope GmbH
197 people

NGK Spark Plugs(France) S.A.S.
34 people

NGK Spark Plugs(U.K.) Ltd.
76 people

NTK Technical Ceramics
Polska Sp.zo.o.

NTK Technologies,Inc.
61 people

53 people

NGK Spark Plug
Middle East FZE
12 people

Siam NGK Spark Plug
Co.,Ltd.
222 people

NGK Spark Plugs (U.S.A.),Inc.
Irvine Factory

NTK Technical Ceramics
Korea Co.,Ltd.

518 people

54 people※Number of employees includes
West Virginia Factory

Woo Jin Industry
Co.,Ltd.
202 people

NGK Spark Plugs
Canada Limited

NGK Spark Plug
(Shanghai) Co.,Ltd.

39 people

101 people

Taiwan NGK Spark Plug
Co.,Ltd.
28 people

NGK Spark Plug
Industries Europe S.A.S.

NTK Technical Ceramics(Taiwan) Ltd. 7 people

48 people

NGK Spark Plugs
India Pvt.Ltd.

NGK Spark Plugs (U.S.A.),Inc.
West Virginia Factory

7 people

NGK Spark Plugs(Thailand) Co.,Ltd.
5 people

NGK Spark Plugs
SA (Pty) Ltd.
70 people

NGK Spark Plugs(U.S.A.)
Holding, Inc.

NGK Spark Plugs
Malaysia Berhad.

NGK Spark Plug (Australia)
38 people
Pty. Ltd.
P.T. NGK Busi
339 people
Indonesia

Ceramica e Velasde Ignicao NGK
do Brazil Ltda.
1,129 people

Bujias NGK de Mexico
S.A. de C.V.
46 people

99 people

NGK Spark Plugs
Singapore Pte Ltd
2 people･････QMS (ISO 9001, TS 16949, etc.) certified･････EMS (ISO 14001) certified･････OSHMS (OHSAS18001) certified
people ･･･Number of employees& Social Report 200705 Environmental
NGK Spark Plug Group Environmental and Social Report

Manufacturing & sales organization
Sales organization
Holding company

QMS/EMS certification status as of the end of May 2007
Number of employees as of the end of December 2006
(Note that the number of employees in NGK Spark Plugs SA (Pty) Ltd.
applies as of May 2, 2007.)Compliance1
Environmental Testing Room (NGKSpark Plugs USA Inc.)

Boston Office (NTK Technologies, Inc.) San Jose Office (NTK Technologies, Inc.)

Human letters (P.T. NGK Busi
Indonesia)

Inspection process (Siam NGK Spark Chamfering process (NTK Technical
Plug Co., Ltd.)
Ceramics Korea Co., Ltd.)

Achievement of 10 billion spark plugs Outdoor rest area (Ise Factory)in Japan (Head Office Factory)

Tile inspection process (Ceramica e
Velas de Ignicao NGK do Brazil Ltda.)

TS16949 acquisition (NGK Spark
Plug (Shanghai) Co., Ltd.)

Laser machine (Kani Ceramic Co. Ltd.) Cafeteria (Miyanojo Factory)

Domestic Network

Kamioka Ceramic Co.,Ltd.

141 people

Tono Ceramic Co.,Ltd.

110 people

Komaki Factory

3,312 people

Nittoku Unyu Co.,Ltd.
Ceramic Censor Co.,Ltd.

22 people
438 people

Ise Factory
Nansei Ceramic Co.,Ltd.

Iijima Ceramic Co.,Ltd.

406 people

461 people
48 people

Nakatsugawa Ceramic Co.,Ltd.
445 people

Kani Ceramic Co.,Ltd.

152 people

Nittoku Seisakusho Co.,Ltd.

124 people

Miyanojo Factory
591 people

Nichiwa Kiki Co.,Ltd.
Head Office/
Factory
960 people･････QMS (ISO 9001, TS 16949, etc.) certified･････EMS (ISO 14001) certified･････OSHMS certified
people ･･･Number of employees

75 people

Nittoku Alfa Service Co.,Ltd.
Tokai Taima Kogu Co.,Ltd.

93 people

32 people

QMS/EMS certification status as of the end of May 2007
Number of employees as of the end of December 2006

Head Office/Factory
Affiliate

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report062

Consumers and clients
We shall develop and provide socially beneficial and safe goods and services bymaking full use of the most suitable technologies and our accumulated experienceand shall strive to earn the confidence of our consumers and customers, while taking
necessary measures to protect personal data and customer-related information.
• The corporate philosophy (commitment) of NGK Spark Plug Group declares, “With full use of the most suitable
technology and our accumulated experience, we continue striving to offer new values to the peoples of the world”.
• To put this philosophy into practice, we will develop and manufacture innovative products to satisfy the demands ofvarious customers and achieve our mission of providing products with the same level of safety and quality from any
production site in the world.
• From this fundamental standpoint, we will provide accurate and appropriate information on our products and services
and handle and protect individual data and customer data related to our business activities in a proper manner.

Quality Management System
2006 marked the 70th anniversary of the Group’s
founding. Throughout our history of making products, ourbasic attitude and concept concerning quality in respect of
quality creation and maturation such as “the good productprinciple”, “total involvement”, and “worksite principle”,
which started with the Group’s founding, have been
maintained coherently to the present as the “Nittoku
quality mind”.
The corporate quality policy, which was established in
February 2006, reflects the “Nittoku quality mind”. It
expresses a return to the basics of TQM for raising thequality of “people, things, and schemes”, and also efforts
for “manufacturing one step ahead.”Corporate Quality Policy
We continue to supply Quality Products to the society
with emphasis on “Customer First”, “Total
Involvement” and “Continuous Improvement”.
■ Customer First
In order to provide products and services that satisfy
our customers, we strive to understand theircontinuously changing needs from their point of view,
and make proposals exceeding their expectations
according to the philosophy of “quality first”.
■ Total Involvement
People are fundamental elements of a company andthe most important management resource. While
respecting the individuality of employees andenhancing each one’s ability, autonomy and creativity,
we share common views on problems and solve themthrough collective efforts.

Quality lecture meeting■ Continuous Improvement
The development of a company requires swift andsuitable responses to the changing social
environment, market conditions and customer
demands. For this purpose, we are continuously
improving the effectiveness and efficiency of all
management resources including our organization,system, processes, products and services.
Quality exhibition

Crisis Management
Business activities involve a variety of risks such as natural
disasters, serious accidents, and economic downturns. We
continuously strive toprevent these risks, but at
the same time we makepreparations to appropriately respond in the eventthat an unforeseen
situation occurs.
Disaster prevention drill& Social Report 2007
07 Environmental
NGK Spark Plug Group Environmental and Social Report

Action for a major earthquake
We have many factories and offices in the Tokai region centeredon Aichi Prefecture. Much of this region is designated as an area inwhich intensified measures must be taken against an earthquake
disaster in the event of a Tokai earthquake. To this end, we have
prepared an earthquake countermeasure manual, and take steps
to minimize damage to our business activities. Also, we implementa safety confirmation system in order to quickly obtain a grasp of
information concerning the safety of our employees.

Protection of Personal Information

Consumers andclients

Regarding personal information which has been entrusted
to us by our customers, we observe the Personal
Information Protection Law and other related ordinances,and strive to appropriately protect, control and handle
information according to our in-house guidelines.
We notify our customers of our personal data protection
policy on our website.

2
http://www.ngkntk.co.jp/english/privacy

Disclosure of Product Information
To inform our customers of the products and the latest
technology of the NGK Spark Plug Group, we makepresentations at various exhibitions. In fiscal year 2006 as
well, we received many visitors at these exhibitions and
Schedule
May 24 - 25, 2006
October 23 - 26
December 6 - 8
December 13 - 15
January 12 - 14, 2007
February 10 - 12
March 23 - 25
March 30 - April 1

were able to respond to their questions and requests.
Information concerning our products and technologies isprovided on our website and in our catalogs.

Exhibition
2006 Automotive Engineering Exposition
FISITA2006
SEMICON Japan 2006
Microwave Exhibition 2006
Tokyo Auto Salon 2007 with NAPAC
Osaka Automesse 2007
23rd Osaka Motorcycle Show 2007
34th Tokyo Motorcycle Show

2006 Automotive Engineering Exposition

NGK Spark Plugs Plug Studio
There are many different spark plug part numbers, and the type and thenecessary quantity differ depending upon
the model of the vehicle in which the plug
is used. At the Plug Studio, we offer anadaptive search function for spark plugs,
plug cords, and power cables, enablingcustomers to replace their own plugs.
The Plug Studio also provides information
concerning presentation events and motor
sports.

SEMICON Japan 2006

http://www.ngk-sparkplugs.jp/english

Communication media components

Automobile components

Technical ceramics

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report083

Fair dealing
We shall promote fair, transparent, free competition and sound trade. We
shall also ensure that our relationships and contacts with government
agencies and political bodies are of a sound and proper nature.
• We believe that a business environment based on the rules of “fair, transparent and free competition” both in Japan andoverseas is the key for NGK Spark Plug Group and its products to gain the trust of worldwide consumers andcustomers. NGK Spark Plug Group will also proactively develop such “fair, transparent and free competition”.
• It is important to establish healthy partnerships with our consistent suppliers who are vital for our business activities,
and we will therefore build mutual trust with a long-term perspective and carry out proper purchasing transactions.
• To achieve optimal procurement worldwide, NGK Spark Plug Group will perform transactions based on fairness,transparency, free competition and rationality on the international stage, too. We will also maintain transparent relations
with governments and public administrations and avoid actions which may raise doubts of collusion, etc.

Together with Our Suppliers
The procurement of raw materials, parts, and so on, hasvarious risks concerning not only quality but also theobservance of ordinances, environmental measures,information security, and so on. In order to reduce these risks,
it is absolutely essential to have a relationship of trust with the
supplier as asound partner. At
the corporate policy presentation
held in April 2006,
we explained our
corporate policy
and requested thecontinuation of ourgood relationships.
Corporate policy presentation

SRI (Socially Responsible Investment)

Nittoku Suppliers Associations
The Nittoku Suppliers Association is composed of suppliers
who deliver raw materials, equipment, parts, and so on, to the NGK
Spark Plug Group. Its purpose is to promote efficient management
and improve productivity through the exchange of information
between members. The association also organizes lecture meetings, workshops,
and sessions forpresenting examplesof improvement
whenever necessary, and aims forthe concurrent
development of the
NGK Spark PlugGroup and its
suppliers.
Session for presenting examples of improvement

ColumnSRI is based on a comprehensive evaluation that takes into account not only
profitability and growth expectation but also social, ethical and environmental aspects
such as legal compliance, employment, human rights, and contribution to society andthe community, and is aimed at acquiring a steady return. In Japan as well, the numberof investors who take into account the environmental aspect or the social aspect whenselecting a brand to invest in is increasing.
The NGK Spark Plug Group is included in various SRI indexes and SRI funds, and willcontinue to strive to be a trustworthy company.
Included in the FTSE4Good Global Index as of March 2007.
The FTSE4Good Global Index is an SRI index which was developed by
the UK company FTSE in 2001. Companies are rated on theirperformance in respect of environmental sustainability, social relations
and human rights.

Start of a television commercial
Our television commercial first went on air on October 1.
This commercial, which has “wisdom acquired fromnature” as its main theme, expresses the coexistence ofcorporate activities and nature.
The commercial is aired during a program, sponsored byus, that covers the environmental activities carried out bycorporations.

& Social Report 200709 Environmental
NGK Spark Plug Group Environmental and Social Report

FTSE4good award

Column4Communication
Emphasizing communication not only with our shareholders but also withmembers of society at large, we shall engage in active and fair disclosureof corporate information through ongoing corporate communications.

3

Financial Data

0

2002

2003

2004

2005

2006

(FY)

Net profit per share for the year

Net profits for the year

25,00020,00015,00010,000

2005

2006

0

2002

2003

2004

21,095
25,10430,0005,000
2004

28,14834,072

44,17453,855

36,106
43,130(million yen)

14,03817,147

2003

22,496
27,711

2002* Number of employees as of March 2007

7,872
11,11750,00012,788
19,163306,663
344,891

210,496
241,185

50,00045,00040,00035,00030,00025,00020,00015,00010,0005,000
0Recurring profits

12,26415,018100,000

195,784
228,776

150,000

192,002228,928200,000

250,361
284,884

300,000

Consolidated
344,891
53,85534,072
154.24
10,407

5,884
7,347

(million yen)Sales

250,000

Non-consolidated
306,663
44,17428,148127.42
5,626

Communication

Sales (million yen)
Recurring profits (million yen)
Net profits for the year (million yen)
Net profits per share (yen)Number of employees (people)*(million yen)

2005

2006

(FY)

(FY)

Number of employees(people)

(yen)

9,284

9,406

9,815

10,407

4,915

5,106

127.42
154.24

4,916

2004

94.75
112.82

62.98
77.01

35.21
49.84

2003

9,306

2002

5,053

20
0

25.86
32.36

60
40

10,000

2002

2003

2004

2005

2006

8,000
6,000
4,000

5,626

180
160
140
120
100
80

Fair dealing• To enhance our credibility in Japan and overseas, we seek to practice “transparent management” by disclosing
information on our business and financial performance as well as other everyday actions, including environmental
activities, via our website and other media.
• In order to respond to the trust of our stakeholders in the capital market, such as our shareholders and investors, we
endeavor to increase our market value and provide information on our management, including our growth strategy,
through IR activities in a timely and proper way.
• We are aware of our social responsibility not only to our shareholders but to a wide range of other stakeholders such as
customers, suppliers, employees and local residents, and will therefore deepen mutual understanding by strengthening
our PR and communication channels and promoting interactive communication.

2,000
2005

2006

0
(FY)

：Non-consolidated(FY)：Consolidated

IR Activities
The NGK Spark Plug Group provides businessinformation such as business content,
performance and stock prices to shareholders
and investors, and also holds IR events todirectly answer their questions. In fiscal 2006,
we participated in two events, and received
enthusiastic comments and questions frompersonal investors.
We also periodically hold presentations foranalysts and corporate investors in Japan, andgive explanations to overseas investors as well.

Nagoya Stock Exchange IR Expo 2006

Nikkei IR Fair 2006 summer STOCK WORLD

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

10

4

5

Environmental conservation
Recognizing that a positive involvement in environmental issues is a priority for all humanity
and an essential aspect of our activities and a prerequisite for our very existence as acompany, we shall approach these issues voluntarily, proactively, and speedily.
• To contribute to the battle against global warming and the establishment of a recycling-oriented society, we arecommitted to measures such as energy saving, zero waste discharge, recycling and enhanced chemical control.
• For the simultaneous pursuit of environmental conservation and economic growth, we will strive to reduce
environmental impact and risk in all business activities through the improvement of productivity, enhancement of
resource and energy efficiency, and development and use of alternative substances. We also aim to develop, introduce
and disseminate innovative technologies, products/services and business models which can contribute to solutions forenvironmental problems.
• We will proactively deal with environmental issues, based on our corporate philosophy (or action guidelines): “Ever
onward! Always mindful of what is the best course, we swiftly put it into action.”

Environmental Declaration (revised April 2004)

Environmental Action Plan and NGK SparkNGK Spark Plug Group will strive for harmony with society andthe global environment while serving the people of the world,
offering new value based on the principle of high quality
throughout the entire life cycle of our environmentally friendly
NGK spark plugs and NTK new ceramic products.
To achieve this, we have formulated an environmental action
plan based on our environmental policy as a way of accepting
our social role and responsibility as a trusted corporation. With
the participation of everyone concerned, we will pursue thedevelopment of a sustainable society and business operations.

Item

Eco Vision 2010
Sharing of environmental policy by relatedcompanies including overseas

Environmental
management
systemConstruction of total management system(QMS, EMS, OSHMS)Management

Environmental Policy (revised April 2004)
Environmental
operations

Management
We will abide by all laws, regulations, protocols and voluntarystandards relating to environmental conservation. We also aim toincrease our environmental efficiency by continually trying toenhance our environmental management system (EMS) andperformance.

Centralization of environmental
management data control

Environmental
accounting

Promotion of CSR management
Integration of environmental accounting
and management accounting

Prevention of
global warming

Total greenhouse gas emissions in Japan of
150,000 tons or less (10% down on 2001)
Efficient use of water resources

Factory/office
We will remain constantly aware of the need for environmental
harmony, working to prevent air, earth and water pollution, useenergy and resources more effectively, and reduce wastematerials.

Factory/
OfficeEffective use ofresources

EPR (extended producer responsibility)
operations
Achievement of zero emissions by relatedcompanies including overseas
Reduction of waste emissions

Reduced environmental load due to waste

Products
We will work towards the development, design, procurement,
manufacture, sale, distribution and disposal of environmentallyfriendly products.

Communication

Hazardous
substances

Products

We will promote communication with stakeholders through clear
disclosure of information. We will also contribute not only to local
communities but to the wider society through consideration for thenatural environment as well as participation and support forenvironmental conservation activities.

We will strive to raise awareness of environmental conservation
through environmental education and publicity activities as well as
the dissemination of these policies among all our employees. We
will also seek the understanding and cooperation of our businessassociates.

& Social Report 2007
11 Environmental
NGK Spark Plug Group Environmental and Social Report

Eco-friendly design and product creation
Green supplier system of identification andregistration of all our business associates

Distribution

Construction of efficient distribution system

Eco-business

Development of eco-businessCommunity
Naturalenvironment

Mind

Mind

Control of environmental pollutants

Eco-design
Greenprocurement

Disclosure

Communication

Total 36 tons of PRTR emissions(80% down on 2002)

Education andinstruction

Disclosure of clear environmental data
Continuous issue of CSR reports
Support for and participation in NGO and
NPO activities
Promotion of nature conservation andsocial contribution
Thorough education of eco-minded
employees
Reflection of environmental performance inbusiness evaluation

Philosophy of Reduction Target
As in the past, we continue to perform control of theoverall emission and the basic unit of CO2, water, andwaste, and promote reduction of overall emission andreduction of the basic unit.
In fiscal 2006, we set the “reduction quantities” to beachieved by executing energy conservation measures,and so on, in the targets for CO2, water, and waste. An
issue regarding the targets that were set in terms of theoverall emission quantity and basic unit up to now was thefact that it was difficult to obtain a grasp of the degree ofachievement of the target through conventional energy
conservation and resource conservation activities

because of increases or decreases in product volume,and so on. Accordingly, we set the “reduction quantity”
resulting from the combined reduction effect of eachcountermeasure or improvement, as the target, andcontrolled it, thus enabling the results of activities to be
seen more appropriately. By using the “reduction quantity”
as the target, activities were promoted, and in fiscal 2006
more reduction countermeasures than the planned
number were implemented for all three items. We willcontinue to increase the reduction quantity as a target,and control the overall emission quantity and basic unit,
aiming to promote activities.

Plug Group Eco Vision 2010○：Achieved

Fiscal 2006 target―
Obtain OSHMS accreditation
Establish rules for the use of the environmental management information
system in the regional secretariats and conduct stable operations
Start operating a system of collecting environmental data from overseas
officesEstablish NGK Spark Plugs’ environment related standards
Revise NGK Spark Plugs guidelines
Create tool for converting environmental effect to amount of money

Page

△

15

×：Not achieved△：Ongoing

Fiscal 2007 target

○

―

○

16

Offer assistance in the acquisition of ISO14001 certification throughoverseas production offices
Develop NGK Spark Plugs’ global environmental declaration andenvironmental policies
―

○

―

―

○

20

―

―

○

37

○

―

―
Examine EMS management categorized by business department
Investigate the joint sharing of goals with QMS
Offer assistance in the introduction of risk assessment fordomestically related firms
Work to revise and improvement the collection and managerial
methods of environmental data for operating organizations
Start operating a system of collecting environmental data fromoverseas office
Establish NGK Spark Plugs’ environment related standards
Continue to handle environmental accounting procedures andreporting

×

―

△
○
○

―
―
20

○

19

×

23

Develop and implement GHG reduction program
Reduction targets
NGK Spark Plug
: 4,110 tons
Affiliated companies: 1,590 tons
Reduction targets
NGK Spark Plug
: 73,000m3
Affiliated companies: 11,000m3△―

Establish methods for recycling used products△―Continue to work with data on waste materials and valuables

×

22

○

22

○

22

Complete HCFC225 substitution
Reduce VOC emissions
Carry out uniform control with MSDS at NGK Spark Plug
Establish standards for environmental pollutant auditing―
Hold LCA study sessions and LCA evaluation of all departments’ products
100 companies (expand toward mainly raw material and parts
manufacturers)

△
×
×
○
―
×

24
24
―
―
―
―

△

27

Study cooperative transport and modal shift○

21

Develop and implement GHG reduction program
Reduction targets
NGK Spark Plug
: 5,700 tons
Affiliated companies: 1,891 tons
Reduction targets
NGK Spark Plug
: 100,000m3
Affiliated companies: 13,800m3
Establish methods for recycling used products
Check current state of industrial waste at overseas manufacturing locations

Environmental
conservation

Support ISO14001 certification of overseas automotive related production
sites
Formulate NGK Spark Plugs’ global environmental declaration andenvironmental policy
Reconfirm relevant legislation centrally and at sites
Revise environmental impact assessment standards(including indirect departments)
Reexamine expert committees and panels and form them into a smootherfunctioning organization

Results

5――

NGK Spark Plug: 3,490 tons
Affiliated companies: 110 tons―
Examine changes that can be made to processing methods for that
ensure a lessening of waste in recycling
Investigate the introduction of electronic manifestos
Complete HCFC225 substitution
Reduce VOC emissions
Carry out uniform control with MSDS at four factories―
Revise hazard rankings
Offer the addition of LCA methods for product assessment
300 companies (expand toward mainly raw material and parts
manufacture)
Provide a thorough and efficient distribution system that works with the
Law concerning the rational use of energy for all cargo owners
Investigate and analyze environmental duties involved in the
profitable operation of business firms

Release environmental news items and topics frequently on Internet
Issue social environmental reports

○
○

―
29

Continue to release environmental news items and topics on Internet
Issue Environmental & Social Report

Support and participate in NGO and NPO activities

×―Support and participate in NGO and NPO activities

Continue to participate in community environmental events, etc.

○

29

Continue to participate in community environmental events, etc.

×―

Revise environmental education programs

×

―

○

20

Reduction targets

NGK Spark Plug
Affiliated companies
Promote volume reduction of liquid waste: 4,744 tons
: 122 tons

Study recycle residue of waste from each site that has undergone
commissioned treatment―

Internally publish environmental education materials that can be used whenneededBuild environmental education system
Campaign for implementing energy conservation proposals

Reduction targets―

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report12

5

Environmental conservation

Environmental load from business activities
The first step in performing environmental protection
activities is to know what kind of load one’s activities
impose on the environment. The material balance ofresources and energy used in the business activities of

the NGK Spark Plug Group, and products, CO2, waste,
and so on, created as a result of these activities, is shownin the figure below.

Material Balance

electric power : Quantity used at offices and factories
Energy Purchased
Gas, Heavy oil A
Gasoline, Diesel oil : Quantity used during testing and transportation: Amount used at offices and factories, and during
LPG
testing and transportation
Classification
Purchased electricity
Gas
LPG
Heavy oil A
Gasoline
Diesel oil

Business sites in Japan

water
Water Tap
Well water: Quantity of service water and industrial water used
: Quantity of underground water used
Recycled water : Quantity of water reused after being purified on the premises

Input
Type
EnergyPaper
Water

Non-consolidated
NGK Spark Plug Group
364.06 million kWh
238.93 million kWh
16.26 million m3
15.37 million m3
10,217 tons
4,639 tons
1,302 kL
1,302 kL
821 kL
800 kL154 kL
65 kL

Category Business sites in Japan
Purchased electricity 453,450 kWh
Gas5,833 m3
95 kg
LPG
Gasoline
143 kL
Photocopy paper
6.5 tons
Tap water
3,612 m3

OutputType

Category Business sites in Japan
165 tons
OfficeCO2 from energy consumption
Transportation
331 tons
Recycled waste
13.1 tons
Waste
5.1 tons
Landfill/incineration
Wastewater
Wastewater
3,612 m3

Classification
Tap water
Well water
Recycled water

Guideline to Methods ofCalculating Emissions of
CO2 conversion factor Greenhouse Gases from
Business Sites
Purchased

NGK Spark Plug Group
1,123,438 m3
1,039,221 m3
1,447,466 m3of copy paper and wrapping paper
Paper Paper : Quantity
used (estimated)
Classification
Paper

Non-consolidated

NGK Spark Plug Group

2,466 tons

3,257 tons

materials, : Purchased quantities
metal materials
Main raw materials Ceramic
Reused elements : Quantity of reused ceramic material
Classification
Ceramic materials
Metal materials
Reused elements

・Factors used to calculate CO2

Non-consolidated
909,393 m3
906,959 m3
1,307,581 m3

Non-consolidated

8,770 tons

NGK Spark Plug Group
14,792 tons
22,241 tons
12,714 tons

Japan Auto Parts Industries
Association (2001)

electricity
Gas
LPG

0.33 kg-CO2/kWh

2.558 kg-CO2/m3
3.007 kg-CO2/kg

CO2 conversion factor
Gasoline 2.32 kg-CO2/L
Diesel oil 2.62 kg-CO2/L

Heavy oil A 2.712 kg-CO2/L
・Not including energy consumption and CO2 emissions due totransportation outsourcing.
・For some operation sites that have no installations to measuredischarged volume, the wastewater volume is taken as the
combined volume of tap water and well water.

& Social Report 2007
13 Environmental
NGK Spark Plug Group Environmental and Social Report

Other materials and auxiliary materials
Plastic materials, chemical materials, ：Quantity used by eachoils, other materials, other gases
department (estimated)
Classification
Plastic materials
Chemical substances
Oils
Other materials
Other gases

Non-consolidated
573 tons
9,986 tons
442 tons
913 tons
12,532 tons

NGK Spark Plug Group
2,287 tons
13,020 tons
511 tons
1,213 tons
17,021 tons

CO2 fromenergy consumption
Offices, factories, testing, transportation
Emission of CO2 generated by the useof electricity, gas, and so on
NGKClassification Non-consolidated Spark PlugGroup

Offices andfactories

Testing
Transportation

135,604 tons 195,932 tons
1,750 tons

1,750 tons

329 tons

612 tons

PRTR law-regulated
substances
Atmosphere, water area
Quantity of matter discharged to atmosphere and the water area,
concerning which notification is made in each region
NGKClassification Non-consolidated Spark PlugGroup

Atmosphere14 tons

214 tons

Water area

0.6 tons

1.3 tons

Waste
Environmental
conservation

Recycling
Quantity of matter that is consigned to be recycled(including items sold)
Landfill or incineration
Quantity consigned to be buried or incinerated
NGKClassification Non-consolidated Spark PlugGroup

Recycling
Landfill or
incineration

5

26,912 tons 29,681 tons
129 tons

157 tons

Wrapping/
packaging materials
Plastics, Paper, cardboard
Quantity used by each shipping department (estimated)
NGKClassification Non-consolidated Spark PlugGroup

Plastics

1,040 tons 1,313 tons

Paper

1,645 tons 1,950 tons

Cardboard

Product shipment

Wastewater
Wastewater
Sewage, Quantity of water discharged tothe public water area
NGKClassification Non-consolidated Spark PlugGroup
3

Wastewater 1,227,458 m 1,531,365 m

770 tons 1,216 tons

3

Product
Quantity of shipped products as cargo owner *1
NGKClassification Non-consolidated Spark PlugGroup

Product――

55,758 tons

*1 The counting method was changed in fiscal 2006.

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report14

5

Environmental conservation

Management
Environmental Management System
The NGK Spark Plug Group has constructed an environmental
management system (hereafter called EMS) based on
ISO14001, and is engaged in environmental protection
activities. Acquisition of ISO14001 certification started in 1999
with the Head Office Factory. This was followed by the
Acquisition of ISO 14001 certification
Name of factories and companies Timing of certification Certification organization
NGK Spark Plug

Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Nittoku Seisakusho Co.,Ltd.
Nittoku Unyu Co.,Ltd.
Nichiwa Kiki Co.,Ltd.
Kamioka Ceramic Co.,Ltd.
Kani Ceramic Co.,Ltd.
Iijima Ceramic Co.,Ltd.
Nittoku Alfa Service Co.,Ltd.
Nakatsugawa Ceramic Co.,Ltd.
Tono Ceramic Co.,Ltd.
Nansei Ceramic Co.,Ltd.
Ceramic Censor Co.,Ltd.

’99.8’00.12’00.12’00.12’04.1’00.12’04.1’04.1’02.12’02.12’99.8’02.12’04.1’02.12’00.12

TÜV Rheinland
Japan Ltd.

TÜV Rheinland
Japan Ltd.

Timing ofcertification

Certification organization

NGK Spark Plugs (U.S.A.),Inc. WV Factory ’00.7
NGK Spark Plugs (U.S.A.),Inc. IRV Factory ’01.8
NGK Spark Plugs (U.K.) Ltd. ’01.12
Taiwan NGK Spark Plug Co.,Ltd. ’06.4
NGK Spark Plug Industries Europe S.A.S. ’00.5
NTK Technical Ceramics Korea Co.,Ltd. ’06.4
Ceramica e Velas de Ignicao NGK do Brazil Ltda. ’01.12
NGK Spark Plug Europe GmbH ’04.11
NGK Spark Plug (Shanghai) Co.,Ltd. ’07.4
NGK Spark Plugs Malaysia Berhad. ’06.3
Siam NGK Spark Plug Co.,Ltd. ’02.11
Woo Jin Industry Co.,Ltd.
’05.4

TUV Rheinland of
North America, Inc.
BSI（British Standard Institute）
SGS
AFAQ
ISC(International Standard Certification)
ABS Quality Evaluations
TÜV Industrie Service GmbHSGS
SIRIM QAS
RWTÜV Thailand Ltd.
kfq（Korean Foundation for Quality）

Name of factories and companies

Overseas

Domestic

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

combined acquisition by four factories and 11 consolidated
companies in Japan by January 2004. We have constructed
an integrated management system for the entire Group in
Japan, and carry out communization of aims and targets andalso control of information. We are also promoting theacquisition of ISO14001 certification of overseas consolidated
companies as well , and by April 2007 eleven companies had
acquired certification. In the future, we are aiming to unify
codes of behavior and also opinions in order to promote
environmental protection activities on a global basis.

16
17
18
19
20
21
22
23
24
25
26
27

System Operation
The NGK Spark Plug Group has constructed an EMS which
is based on overall participation, and implements a PDCA
(Plan-Do-Check-Action) cycle throughout the entire Groupand each region (factories).
We intend to establish a central environment committee as thehighest decision-making organization of the EMS, and also
regional committees, and check the progress of the aims andtargets as well as related issued, in order to carry out continual
improvement. During the annual internal environmental audit,
we check the system construction, operation situation, andobservance of the regulations and voluntary standards. We
also strive to raise the awareness of the internal environmental
auditors and have the regions carry out exchange with eachother by going to other regions and carrying out audits there.

ActionNGK Spark Plug Group

Review by the chief executives
Central Environment Committee

Check
Environmental
audit

Plan
Environmental policy
Corporate environmental
objectives and targets

ActionContinual
improvement

Regional Environment

Committee

Environmental Activity Promotion Organization

Check

President
Chief Environment
Administrator(Chairman of Central Environment Committee)

Central Environment
Committee

Central Energy Conservation
Expert Committee
Central Waste
Sub-committee

Environment Administrator

Chemical Materials
Sub-committee

Continual
improvement

Do

In-house environment
audit

Do
Execution andoperation

Plan

Regional environmental
objectives and targets
Regional environmental plan

Each Region

Environmental
ISO Secretariat

Internal
Environment
AuditorGreen Procurement
Sub-committee
Environment
Committee

Energy Conservation
Expert Committee
Waste Sub-committee

Each Region

For the definition of each region, refer to p.2.

Number of ISO14001 auditors
ISO14001 assistant examiners
ISO14001 Internal auditors(people)NGK Spark Plug

Affiliates

7
282

1
174

& Social Report 2007
15 Environmental
NGK Spark Plug Group Environmental and Social Report

Internal auditor training

In-house environment audit

Environmental Risk
prevention agreements with local governments concerning
air pollution, water pollution, and so on, and alsoestablishing voluntary regulations values that are more
stringent that the regulation values.

Soil survey

Asbestos

Based on the Soil Contamination Countermeasures
Law, we implement soil surveys according to a
written standard when disposing of regulated
equipment and also when changing the soil on thefactory premises, for example. In fiscal 2006, we
carried out a soil survey along with the renewal of
the underground tank at the Head Office Factory.
No contamination or abnormalities were found,and the work was carried out appropriately.
We will continue striving to carry out appropriate soil control and also
prevent pollution.

In 2006, various laws were amended, and theregulations pertaining to asbestos were strengthened.
We have been engaged in appropriate treatment inorder to prevent harm due to asbestos. We remove
asbestos that had been used in manufacturing facilities,
and also promote appropriate treatment of asbestos
contained in the insulation of buildings.

PCB control

Drills for emergency situations

The Head Office Factory, Komaki Factoryand Nittoku Seisakusho, store wastematerials containing PCBs. We will
promote correction of the treatment
procedure based on the Law concerning
Special Measures for Promotion of Proper
Treatment of PCB Wastes, and also carryout stringent control of such materials.
*PCB: PolyChlorinated Biphenyls

We hold drills to prevent environmental
pollution based on the assumption of an
emergency situation arising due to an
earthquake, fire, or other disaster.
Environmental
conservation

In order to prevent environmental pollution, it is necessary
to determine the various environmental risks that lurk within
business activities, and control them. We strive to carry out
appropriate control on a daily basis in order to reduce
environmental risks, such as by concluding pollution

5

Compliance
It is absolutely essential to observe the environmental laws
and regulations in order to maintain business activities. To
this end, it is important to acquire a correct understandingof the purpose of the environmental regulations. In fiscal
2006, we held a seminar concerning regulations which wasgiven by a lecturer from outside the company, re-confirmed
the relevant regulations, and had the employees acquire a
deeper understanding of them.

The NGK Spark Plug Group checks the situation regarding
observance of the regulations using a scheme that is linked
to the ISO14001 system, and strives on a daily basis toprevent violations of the regulations and complaints.
Despite this, in fiscal 2006, three violations of theregulations and one complaint arose. We took appropriate
action against violations and complaints and strive toprevent a reoccurrence.

NGK Spark Plug Co., Ltd.

Affiliates

2004

2005

2006

Violations

0

1

0

Complaints

4

0

0

※

※There were no violations or complaints caused directly by our activities,
however during the construction of the new factory on the premises of
the Komaki Factory we received 34 requests to carry out improvements
concerning noise, and so on, and devised countermeasures.

2004

2005

2006

Violations

7

1

3

※1,※2

Complaints

1

0

1

※3

※1 The regulation value of noise was exceeded at the Nakatsugawa Ceramic
Takenami Plant and Kani Ceramic, so we are devising countermeasures.
※2 The COD value at the Ceramic Sensor production line temporarily exceeded
the value in the agreement concluded with Komaki City, and we have now
completed countermeasures.
※3 Nittoku Seisakusho received a request to carry out improvement concerningnoise, and countermeasures have now been completed.

Exhaust gas treatment equipment

Sewage pipe reinforcement work

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report16

5

Environmental conservation

Management
Environmental Accounting
In order to more efficiently promote environmental
management, it is important to obtain a quantitative graspof the cost and effectiveness of environmental protection.
Since 1999, the NGK Spark Plug has been carrying out
environmental accounting, and in 2003 its scope wasincreased to cover the entire Group.

The cost of environmental maintenance for fiscal 2006
was 9,758 million yen on a non-consolidated basis, and10,456 million yen for the Group. This was an increase of
approximately 7% compared to fiscal 2005. Also, theenvironmental protection effect was 388 million yen on a
non-consolidated basis.

Environment preservation cost

(Unit: million yen)

Items
Classification

Non-consolidated
Investment

Major efforts

NGK Spark Plug Group ※ExpenseInvestment

Expense2005 2006
2006 2005
2005 2006
2006 2005
2005 2006
2006 2005
2005 2006
2006
2005

Pollution prevention cost Air/water pollution prevention and noise reduction
Costs
Global environmental
Global warming prevention, energy conservation
withinconservation cost
the business Resource circulation cost Effective resource utilization, industrial waste treatment/disposalarea
Sub-total

204

121

757 1,136

222

148

932 1,352

25

72

256

405

77

195

304

449

58

47

525

484

63

56

724

685

287

240 1,537 2,025

363

398 1,960 2,487

Upstream & downstream cost

Recycling of products, etc., green purchase differences

0

0

5

2

0

0

5

2

Management activity cost

Employee environmental education, EMS construction and operation

6

10

343

287

8

11

407

354

R&D cost

R&D of products promoting environment preservation

Social activity cost

Nature protection, afforestation, environmental ads

0

0

132

165

0

0

142

175

Environment damage correction cost Repair of soil contamination, disrupted nature

0

0

9

9

0

0

9

9

Other costs

0

0

1

1

0

0

1

1

994 1,386 5,898 5,632

―
Total

994 1,386 5,898 5,632

1,287 1,636 7,925 8,122 1,365 1,796 8,421 8,660※ Excluding Nittoku Unyu and Nittoku Alpha Service

Effect of environment conservation measures shown in yen (Unit: million yen)

Revenue

The environment preservation cost isclassified according to the guidelines ofthe Ministry of the Environment, and is
calculated using a proportional division
method according to rules drawn up by
the Group, based on the directequipment investments and costs.

Revenue generated from the recycling of waste generated in
208
operations or used products
Energy cost saving achieved from energy conservation efforts

CostsavingCalculation concept

Nonconsolidated

Area of recognized effect121

Reduction of water expenses through water saving

10

Waste disposal cost saving achieved by resource conservation and recycling efforts
Total

49
388

Environmental conservation effect measurements
Classification
Effect measured in
the business area

Non-consolidated

Types of effectNGK Spark Plug Group

Difference from theprevious fiscal year

2005

2006

(10,000 kwh)

21,171

23,893(10000 m3)

1,428

1,537

LPG ※1(tons)

4,228

Heavy oil A(KL)

Tap water
Well water

Difference from theprevious fiscal year

2005

2006

2,722

32,96736,406

109

1,513

1,626

113

4,630

402

8,894

10,208

1,314

1,883

1,302

-581

1,883

1,302

-581

(tons)

801,684

909,393

107,709994,442

1,123,438

128,996(tons)

935,164

906,959-28,205

1,067,387

1,039,221-28,166

Energy consumption
Purchased electricity
Gas
Effect measured
with respect toresource input
into operations

Effect measured
with respect toenvironmentalload and wastefrom businessactivities

3,439

Water consumption

PRTP law-regulated substance consumption (tons)

603

673

70

840

1,031

191

CO2 emission from energy consumption (tons)

124,189

135,604

11,415

179,310

195,932

16,622(tons)

1,150,196

1,307,581

157,385

1,288,728

1,447,466

158,738

Recycled mass

(tons)

21,16826,912

5,744

23,67829,681

6,003

Landfill, incineration(tons)

121

129

8

401

157

-244

PRTR law-regulated substances released into air and water (tons)

13

14

1

131

215

84

Recycled plant wastewater ※2
Waste※1 The quantity of LPG used in transit is excluded in consideration of the relationship with the environment preservation cost.
※2 Definition of recycled plant wastewater: Recycled water is defined as water that is reused after treatment of waste water.

& Social Report 2007
17 Environmental
NGK Spark Plug Group Environmental and Social Report

Environmental Management
Eco-efficiency (environmental effectiveness)

Eco-efficiency

Increasing economic value while reducing the environmentalload leads to ongoing corporate development. NGK Spark
Plug Group evaluates the quantity of CO 2 emission, thequantity of waste generated, and so on, as the environmental
effectiveness, and is promoting environmental management.
In fiscal 2006, the quantity waste generated increased greatly
due to the increase in the production of semiconductor
components, and the eco-efficiency of effective utilization fell.

Index of effective utilization

Index of landfill/incineration of waste

4040

Output added value

Output added value

Effective use of waste

Landfill/incineration of waste

2002

2003

2004

2005

2006

0

100

2001

2002

2003

2004

(Fiscal year)

2005

2006

0

2001

2002

2003

2004

2005

(Fiscal year)

2006(Fiscal year)※ See P.19 for the quantity of CO2 emitted, and see P.22 for the quantity of waste generated and also the definition of effective use.

Material flow cost accounting
Material flow cost accounting (MFCA) is a tool for calculating
the cost of materials and energy used to make a productwhich will become waste, and also for simultaneously
realizing improved environmental management and cost

reduction.
In September 2006, NGK Spark Plug Co., Ltd. implemented
in-house training by an outside consultant, aiming at adopting
and developing MFCA.

History of environment conservation
Feb. 1973

Safety and Environment Section (present Environment & Safety
Management Dept.) was established.
Safety and Health Committee and Antipollution Committee were
established.

Jun. 2001

The first environment convention was held.

Jul.

Cogeneration plant was installed in Miyanojo Factory.

Sep. 2002

Miyanojo Factory achieved zero emission.

Mar. 1974

Antipollution agreement was concluded between Komaki Factoryand Komaki City.

Dec. 2002

Apr. 1980

Antipollution agreement was concluded between Miyanojo Factoryand Miyanojo Town
Energy Conservation Expert Committee was established.

Combined ISO14001 certification covering NGK Spark Plug andaffiliates (Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramicand Nansei Ceramic)

May. 2003

Nov. 1980

Miyanojo Factory introduced a closed wastewater treatment
system to its plating plant.

Voluntary soil survey and soil improvement was performed on thecompany premises and reported to Nagoya City.
Head Office/Factory and Komaki Factory achieved zero emission.

Sep. 2003

Ise Factory achieved zero emission.

Nov. 1993

Antipollution agreement was concluded between Ise Factory and
Ise City.

Jan. 2004

Apr. 1994

Ise Factory introduced a closed wastewater treatment system to its
plating plant.

Combined ISO14001 certification covering NGK Spark Plug andaffiliates (Kamioka Ceramic, Nittoku Seisakusho, Nichiwa Kiki andTono Ceramic)

Oct. 2004

Nittoku Seisakusho achieved zero emission.

Apr. 1999

Environment declaration was announced.

Mar. 2005

Nansei Ceramic achieved zero emission.

Jun. 1999

Reorganization of Antipollution Committee into Environment
Committee.
Environmental management system was reviewed and Energy
Conservation Expert Committee was organized.

Sep. 2005

Nichiwa Kiki achieved zero emission.

Dec. 2006

Received the Minister of Economy, Trade and Industry Prize at the
19th Chunichi Industrial Technology Awards. (Universal A/F
heated exhaust gas oxygen sensor)

Aug. 1999

Head Office/Factory obtained ISO14001 certification.

Jan. 2006

Oct. 1999

Waste Sub-Committee, Green Procurement Sub-committee, andChemical Materials Sub-committee were established.

Received the Chairman Prize at the ECCJ’s 16th Energy
Conservation Grand Prize. (Oxygen concentrator for medical use)

Mar. 2006

Sep. 2000

The first edition of ECO report was issued.

Nakatsugawa Ceramic, Kani Ceramic and Kamioka Ceramicachieved zero emission.

Dec. 2000

Combined ISO14001 certification covering the company's entire
operation sites (Head Office/Factory, Komaki, Miyanojo and Ise)

Oct. 2006

Iijima Ceramic achieved zero emission.

Mar. 2007

Tono Ceramic achieved zero emission. (Achieved by all regions.)

2001

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

18

Environmental
conservation

2001

238

500
20

20
0

1,000

Output added value
CO2 emissions from production

1,484

77

60

1,425

89

80

80
60

1,761

107

106

(Fiscal 2001 = 100)〈Non-consolidated〉
2,000

1,500

92

100

123

100

Output added value
Environmental load

※ The added value production amount is the turnover from when thecost of materials and subcontracting costs have been subtracted.

(Fiscal 2001 = 100)〈Non-consolidated〉
120

122

116

107

101

100

100

120

Eco-efficiency ＝

1,332

Index of CO2 from production(Fiscal 2001 = 100)〈Non-consolidated〉
140

This is an indicator of the ratio of the created economy
value to the environmental load accompanying businessactivities. The higher the value the better is the efficiency.

55

Environmental conservation

Factory/Office
Prevention of Global Warming
Basic philosophy

Shigeyasu Yamada,Managing director
Chairman of the Central
Energy Conservation
Expert Committee

The importance of preventing global
warming is increasing worldwide, andmeasures are being demanded. TheNGK Spark Plug Group is amanufacturer of ceramics. The
manufacture of ceramics requires
many firing processes which constitutesources of emission of greenhousegases, so we are engaged in energy
conservation activities with a view toconserving energy. We think that it isimportant to reduce the overall
quantity of greenhouse gas, and haveset an overall reduction target under“Eco Vision 2010.”

In April 2006, the Act concerning the Rational Use of Energy andthe Law Concerning the Promotion of the Measures to Cope with
Global Warning were amended as part of the policy forpreventing global warming, and the necessity for taking action isincreasing. The NGK
Spark Plug Group takes
appropriate measures
such as the creation ofa system for computing,reporting on, andpublicizing the quantityof greenhouse gases
emitted, and energy
conservation activities
Energy conservation patrol
in logistics, and so on.

Results with respect to fiscal 2006 target
In fiscal 2006, we established reduction of emission as atarget in order to evaluate the effectiveness of energy
conservation measures in visible form. Compared to the
reduction target of 7,591 tons for the NGK Spark PlugFiscal 2006 target

Fiscal 2006 results

NGK Spark Plug Co., Ltd. Reduction of 5,700 tons

5,926 tons

Affiliates

Reduction of 1,891 tons

3,295 tons

Reduction of 7,591 tons

9,221 tons

Total

Group, the actual reduction achieved was 9,221 tons,
indicating that we were able to clear the target. In fiscal
2007 as well, we will continue to carry out thoroughcontrol of reduction quantity.

Main countermeasure examples
・Effective utilization of heat by changing the furnace heater
・Utilization of waste heater in plug furnace
・Energy conservation by rationalization of compressor set pressure

Total CO2 emission and Eco Vision 2010
The NGK Spark Plug Group holds up the reduction of total
CO2 emission in Eco Vision 2010, and carries out activities
aimed at achieving this. In fiscal 2006, we achieved the CO2
reduction target, however the total emission increased due
to increased production, and on a non-consolidated basis itrose 93% compared to fiscal 1990. For each basic unit, we
obtained an improvement, however we intend to reduceenergy consumption further, aiming at an overall reduction.
Also, in fiscal 2006 we started to consolidate CO2 emissions
at overseas manufacturing centers. The total CO2 emission
for all domestic and overseas manufacturing centers was
220,000 tons. As a global enterprise, we intend to promote
activities aimed at preventing global warming at ouroverseas offices and factories as well.

Transition of CO2 emission (offices and factories)

CO2 emission for overseas manufacturing plants in each region※

5

0

19.59
22.12

17.93
13.56

15

16.92
12.42

16.39
11.76

11.49

12.14

11.82

9.07

10

11.36

15

1

0.5

0.25

1990 1995 2000 2001 2002 2003 2004 2005

Non-consolidated

0.75

0
2010
(Fiscal year)▲
Target value

2006

NGK Spark Plug Group

Nittoku Group (including overseas manufacturing centers)

Basic unit (Nittoku Group)& Social Report 2007
19 Environmental
NGK Spark Plug Group Environmental and Social Report

CO2 emission (10,000 tons of CO2)

1.189

20

Basic unit (tons of CO2/1 million yen)

1.25
1.189

1.234

7.01

CO2 emissions (10,000 tons of CO2)

1.404

25

1.4

Kerosene

1.2

Light oil
Heavy oil

1.0

LPG

0.8

Natural gas

0.6

LNG
Electricity

0.4
0.2
0

North
South Europe
America America

Asia

Africa※Regarding the CO2 emission from purchased electricity, we use theEach country’s GHG protocol coefficient.
Regarding fuel, we use the same coefficients as in Japan. (See P.13.)

Promotion of energy conservation activities■ Re-evaluating the energy conservation organization setup
Regarding energy conservation activities, we createda setup that enables each division to carry out
activities easily, and in order to increase its
effectiveness we re-evaluated the organization of thecentral and regional energy conservation expert
committees. We selected personnel in the department
manager class who were in charge of energy control inthe division as members of the central committee, inorder to strengthen the promotion of energy
conservation activities in each department.
Central energy conservation expert committee■ Energy conservation diagnosis
We received comments and proposals from the energy
conservation diagnostic officer, and implemented countermeasuresaiming at improving the situation. Also, we held a briefing session
for reporting on the results of the diagnosis. This briefing session
was also attended by many employees of departments that were
not directly involved in the diagnosis, hence there was an increased
awareness of energy conservation in these departments as well.

Energy conservation diagnosis

Energy conservation diagnosis briefing session■ Energy conservation proposals■ Energy conservation diagnosis of affiliates

In order to collect proposals concerning energy conservationfrom a variety of sources and improve the awareness of energy
conservation among the employees, we asked for energy
conservation proposals in fiscal 2006. As a result, we received
a total of 4001 proposals, and gave awards for particularly
excellent proposals at an environmental meeting. We also
posted 123 other excellent proposals on the notice board, thus
helping to raise the awareness of energy conservation.

In order to check the energy conservation situation at affiliates
and promote energy conservation, an energy conservation
diagnosis was carried out by the chairman of the centralenergy conservation expert committee. Between April andMay, we audited seven companies, and found improvement
points that could lead to energy conservation in the factories.
By pointing out these improvement points and promoting
energy conservation activities, we were able to promoteenergy conservation activities throughout the entire Group.

■ Revising improvement proposals
We implemented an improvement proposal setup in order topromote individual initiative and the creation of original ideas.
In fiscal 2006, we revised the setup, aiming at promoting
proposals concerning energy conservation. We added amethod of converting environmental improvement intomonetary amount and changed the scoring criteria, in order
to correctly evaluate action intended mainly forenvironmental protection.

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

20

Environmental
conservation

We underwent an energy conservation diagnosis in order to find
improvement points so that we could carry out energy conservation
activities. Between May 16 and 18, the Head Office Factory was
subjected to a factory diagnosis by an energy conservation
diagnostic officer, and between November 13 and 17 the Komaki
Factory was subjected to a factory diagnosis under the NEDO
energy conservation countermeasure adoption business.

55

Environmental conservation

Factory/Office
Clean energy

Logistics

In November 2006, we installed our third solar-powered
generating system at the Head Office Factory. In fiscal
2007 we are planning to install a solar-powered
generating system on the roof of the new factory underconstruction at the Komaki Factory, and also at the Ise
Factory. The system to be installed at the new factory at
Komaki has a capacity of 107 kW, and that to be installedat the Ise Factory
has a capacity of
30 kW. In this
way
we
are
promoting theeffective use ofnatural energy.

As a result of the Act concerning the Rational Use of Energy
which was enacted in April 2006, it has become mandatory toadopt energy conservation measures in the transportation field. In
fiscal 2006, the quantity of cargo that we as a cargo ownertransported, including products and waste, was 50.50 million ton
kilometers, and we were designated as a specified consigner.
The NGK Spark Plug Group has been purchasing low pollution
vehicles and implementing modal shifts,
and so on. We intend
to continue carryingout energy conservation activities inthe transportation
field as a specified
consigner.

Solar-powered generating system

Nittoku Unyu

Results of computing greenhouse gases according to the system for computing, reporting on, and publicizing the quantity of greenhouse gases
Along with the amendment of the Law Concerning thePromotion of the Measures to Cope with Global Warning,business owners who generate large quantities ofgreenhouse gases are required to compute the emission
quantity and report to the national government. As a resultof computing the gases concerned, we confirmed that the

total quantity of gas when converted into carbon dioxide
did not exceed 3,000 tons at any factory, so there was noneed to issue a report. In the future as well, we willcontinue to compute the quantity of greenhouse gases
each year, and strive to take appropriate measures toprevent global warming.
()
tons CO2

Head Office/Factory Komaki Factory Miyanojo Factory

Ise Factory

Total

Non-energy-based carbon dioxide

CO2Methane

CH4

17.5

102.7

4.4

14.3

138.9

Nitrous oxide

N2O

5.5

55.6

5.8

4.7

71.6

Hydro-fluorocarbon

HFC

4.3

7.4

2.5

Perfluorocarbon

PFC

3.5

1,700.2

SF6

Sulfur hexafluoride
Total

3.5

1.0

15.1

97.2

1,797.4

0.1

3.9

1.4

4.8

10.1

27.3

1,873.4

14.1

121.9

2,036.7

Case example■ Use of a panel heater for heating the glaze
baking furnace
The manufacture of spark plugs includes the process forbaking the glass on the ceramic part of the plug. In order toutilize the heat of the glaze baking furnace in this process
more efficiently, we re-studied the heater used in the
furnace, and adopted a panel heater which can direct theheat only at the part where it is required. We also changed
the heat insulation material to reduce the heat dissipatedfrom the furnace. As a result of these measures, we wereable to reduce the consumption of electricity by 26%.

■ Energy saving by increasing the number of
products placed in the furnace
When renewing the baking furnace for ceramic products, westrove to reduce the emission of CO2 resulting from the baking
process. We changed over to a large capacity furnace,enabling a greater number of products to be baked at the sametime. In this way, we were able to reduce the amount of energy
consumed per product. In addition, we improved the thermal
insulation performance and added a waste heat exchange
function, thus further reducing energy consumption. As a result,the quantity of CO2 emitted per year fell by 122 tons.
Baking furnace

Before improvement

After improvement

Part to beglazedElema heater

Waste heatexchanger

Panel heater& Social Report 2007
21 Environmental
NGK Spark Plug Group Environmental and Social Report

Improved
thermal insulation
performanceWaste Material
Basic philosophy

0

2000

2001

Non-consolidated

2002

2003

2004

2005

29,837

27,04024,07921,28918,84016,071

17,182

14,42916,667

14,766

11,58010,0002006(Fiscal year)

NGK Spark Plug Group

0

2000

2.95

2.72

4
3

2.61

2
1

2001

Treatment cost

2002

2003

2004

2005

Treatment cost per ton of waste(10,000 yen per ton)

1,000

2.87

2,554

2,000

2.88

2,080

2.97

3,000

3,575

3.41

2,693

4,000

4,501

Trend of cost of treating waste material 〈Non-consolidated〉

0
2006 (Fiscal year)

5

Treatment cost per ton of waste

Results with respect to the fiscal 2006 target
In fiscal 2006 we aimed to devise measures in orderachieve a target reduction of 4,744 tons at NGK Spark
Plug Co., Ltd. and a target reduction of 122 tons at ouraffiliates. Unfortunately, due to a major delay in
Fiscal 2006 target

Fiscal 2006 results

NGK Spark Plug Co., Ltd. Reduction of 4,744 tons

2,594 tons

Affiliates

Reduction of 0,122 tons

0,269 tons

Reduction of 4,866 tons

2,863 tons

Total

implementing highly effective measures, the Group as awhole was unable to achieve the target. We will continue
to strive to reduce waste in fiscal 2007 by implementing
the measures that we were unable to complete.

Case examples of main measures
・Installation of waste liquid concentration system
・Installation of sludge dewatering system
・Reuse of ceramic scrap

On-site confirmation of waste material treatment contractor

Case example

To ensure that waste material consigned to be treated by aprocessing contractor specified by the Group was being appropriately
treated, we carried out an on-site check at the interim treatment plant
and also at the final disposal site. We also investigated the amount ofresidue generated during the waste material treatment process, notonly to ensure that the waste material was being treated properly, butalso to further reduce the load on the environment due to the waste.

■ Installation of waste liquid concentration system
A lot of developing fluid and separation liquid wasdischarged during the organic package production
process, and constituted a large percentage of thetotal waste. In order to reduce the quantity of thiswasteliquid,weinstalled a waste liquid
concentration system.
As a result, the amountof waste liquid was
reduced to about one
half, thus reducing theoverall volume ofwaste.

Number of waste treatment contractors
Total number of visitors

NGK Spark Plug Co., Ltd.

Affiliates

32
81

17
26

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

Environmental
conservation

We define zero emission as the state in which therecovery rate of waste, including both industrial
waste and general waste from our operations, is atleast 98%.
(Reused or recycled amount)
Recovery rate ＝≧ 98%(Reused, recycled, or landfilled/incinerated amount)

20,0002,376

Definition of zero emission

30,0001,964

We reuse and recycle the valuable parts of the waste
generated from our factories (including the recoveryof heat). This includes waste materials sold as
valuable resources.

Quantity of generated waste material (tons)

Definition of effective use

Trend of quantity of generated waste material

Treatment cost (10,000 yen per month)

The NGK Spark Plug Group handles waste material in thefollowing priority sequence in order to make maximum
effective use of resources.
①Reduce ②Reuse ③Recycle ④Landfill and incineration
During fiscal 2006, the Group achieved zero emissions in
all regions. In fiscal 2007, we will continue to reduce
waste material and also make efforts to reduce theresidue remaining after waste material has been treated.

22

5

Environmental conservation

Factory/Office
Water Resources
Basic philosophy

Results with respect to the fiscal 2006 target
In fiscal 2006, we set a water reduction target of 100,000
m3 for NGK Spark Plug, and a target of 13,800 m3 for ouraffiliates, that is, a total reduction of 113,800 m3. Since theinitial plan was drawn up, many measures were
implemented, but the reduction attained for the wholeGroup was 111,857 m3, which is less than the target.
Fiscal 2006 target

Fiscal 2006 results

NGK Spark Plug Co., Ltd. Reduction of 100,000m3

84,058m3

Affiliates

Reduction of 013,800m3

27,799m3

Reduction of 113,800m

111,857m3

Total

3

100

216.2

181.6

206.2

173.7

170.1

150

193.2

200

201.7

250

162.1

Quantity use (10,000 m3)

Trend of the quantity of tap water and well water used

The NGK Spark Plug Group carries out its various
activities by using tap water or well water. In order toprotect water, which is a precious resource of the earth,
we strive to reduce consumption of water.

50
0

2003
Non-consolidated

2004
2005
NGK Spark Plug Group2006(Fiscal year)

Case example■ Reduction due to re-studying the quantity ofwater supplied to the washing equipment
During the ceramic package production process, the plated product is washedin ultra-pure water. In order to reduce the quantity of water consumed and also
save energy, we re-studied the operating conditions existing when the productis in standby. By reducing the flow volume of pure water by half when the
product is in standby, we wereable to reduce the quantity of Washing equipment
water used in one year by
6,000 m3. Also, by reducing
the amount of electricity used
when the product is instandby, we were able toreduce the emission of CO2.
Product flow

Case examples of main measures

Plating・Re-studying the quantity of water supplied to the washing equipment
・Installing steam drain recovery equipment
・Reducing the quantity of cooling water along with a change in theoperating temperature of the cooling tower

Drying
Fan

ProductShowerpump

DryingHeaterUltrapure
water

Green Purchasing
Use of eco-friendly office supplies
In order to increase the awarenessof environmental protection at each
workplace and promote activities
that take into account energy saving,and so on, the Group actively
selects products that are kind to theenvironment when purchasing or
using products related to daily work
activities.

Version 2 of our “Green Procurement Guidelines (In-houseUse),” published in March 2004, specifies that eco products
should meet all or some of the following requirements:① Have less environmental impact during use.
② Have a significant effect on environmental improvement during use.
③ Have less environmental impact during the disposal stage after use.
④ Comply with relevant laws, standards, regulations, etc. in terms of
quality and safety.
⑤ Be preferably priced the same or lower than similar products(in consideration of longevity).

Eco-car
When we renew our vehicles, we make a point ofpurchasing eco-cars.
In fiscal 2006, the Komaki Factory purchased compressed
natural gas vehicles (CNG vehicles), which run on natural

gas and generate little NOx or CO2.
We will continue to make efforts to reduce the load on theenvironment in our logistics and marketing activities.

Number of low-emission company vehicles
Category
Total number of company vehicles
New☆☆☆☆
New☆☆☆
☆☆☆
☆☆
☆
Others(75%-decreased level in the exhaust gas standards in 2005)(50%-decreased level in the exhaust gas standards in 2005)(75%-decreased level in the exhaust gas standards in 2000)(50%-decreased level in the exhaust gas standards in 2000)(25%-decreased level in the exhaust gas standards in 2000)(Exempted from exhaust gas regulations)& Social Report 2007
23 Environmental
NGK Spark Plug Group Environmental and Social Report(No. of cars)

NGK Spark Plug
Head Office/ Sales offices Affiliates
Factory
100
13
8
16
12
9
42

93
29
15
31
8
10
0

23
4
3
7
1
1
7

Eco-car (CNG vehicle)

Hazardous Substances
We are striving to reduce the discharge of PRTR lawregulated substances to the atmosphere or water by 80% of
the figure for fiscal 2002, by fiscal 2010. Also, because of theamendment of the Air Pollution Control Law in 2004, we set
the reduction of volatile organic compounds (VOC) as anannual target, and carry out reduction activities. The way is
now clear for completing the changeover from dichloropentafluoropropane (HCFC225) to an alternative substance, which
is our target for fiscal 2006. Also, regarding the reduction of
the emission of VOC, the emission of toluene increased
greatly because of the increase in semiconductor production,
and we were unable to meet the target. In fiscal 2007 as well,
we are holding up VOC reduction as a target, and aremaking preparations aimed at recovering and treating VOC
in order to reduce emission.

INPUT-OUTPUT of PRTR law-regulated substances
Atmosphere: 213,612

Unit: kgPublic waters: 1,282
Products: 297,278

Quantity handled:
1,030,644

Burial and incineration: 588
Public sewer: 13

143.4

400 117.9

200

26.2
32.4
32.7
116.4

Water-soluble copper salts(excluding complex salts)
Lead andother compounds

174.6
Xylene

110.6
51.8
45.9

51.2

48.5

33.8

44.0

50.7

NickelToluene

153.1

154.1

Di-n-butyl phthalate

0

116.0

102.2

2003

2004

2005

54.1

800
700
167.3

600
500
400
300

47.0
26.2
55.8
43.2
125.0

188.1

185.1

44.1
51.8

110.6

174.6
39.9

57.0
57.9

63.7
63.7

191.4

163.0

100
0

2006 (Fiscal year)

266.9

261.2

2003

2004

272.8
213.1

2005

1.3

3.1

200
Toluene

0.4
0.7

0.6
0.4

Xylene4.3

Dichloropentafluoropropane

3.5

10
8
6

12.2
10.8
8.9

4

9.0

Quantity of emission (tons)

Quantity of emission (tons)

12

2006 (Fiscal year)

NGK Spark Plug Group
220

0.2
0.7
3.4

Nickel

163.6

Others

0.6
1.1

5

Xylene

73.9

18

14

75.1

Lead andother compounds

200

Quantity of PRTR law-regulated substances emitted
Non-consolidated

16

65.7

Water-soluble copper salts(excluding complex salts)

Toluene

180.6

100
127.0

Others196.9

900

Quantity handled (tons)

140.7

500

300

1000

Environmental
conservation

Quantity handled (tons)

144.3

Effective utilization: 142,364

NGK Spark Plug Group

Others600

On-site incineration: 0
Disassociation reaction:
357,612

Quantity of PRTR law-regulated substances handled
Non-consolidated
700

Sold parts: 17,889

180
3.0

1.4

Others160
Toluene140

100

Xylene

1.0

120

187.4
140.5

Dichloropentafluoropropane

145.2

80

106.5

60
40

2
0

20
2003

2004

2005

2006 (Fiscal year)

0

14.9

16.2

10.8

12.2

8.9

9.0

2003

2004

2005

2006 (Fiscal year)

14.5

17.3

※Substances concerning which notification must be made by each office or factory (if the amount handled exceeds 1 ton) are indicated above.

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report24

5

Environmental conservation

Factory/Office

ColumnEnvironmental considerations in new factory
We constructed a new factory on the premises of the
Komaki Factory to cope with the expansion of production in
the semiconductor component business. We are making
efforts to protect
t h e environment byinstalling equipmentthat consumes lessenergy and also
devising ways to
u s e energy more
efficiently.

Raising the efficiency of the air conditioning
heat source

The production steam drain water, which is at a temperatureof approximately 80˚C, is returned to the water supply tank,enabling the consumption of fuel by the boiler to be reduced.
If any abnormality is found in the quality of the drain water,
the flow path is automatically changed over to send the water
to the waste water treatment area. It is estimated that thismeasure enables the amount of CO 2 generated to be
reduced by 327 tons each year.
Production steam flow
Water supply tankUtilization of waste heat

We installed a turbo chiller that is more efficient than thechiller installed at the existing factory. Also, we combined ahighly efficient type with a type that contains an injector inorder to cope with load fluctuations and realize more
efficient operation. In winter, the chiller is stopped, and cold
water is made using low temperature outside air by meansof the cooling tower, in order to further reduce energy
consumption. As aresult of thesemeasures it isestimated that theamount of CO 2
generated can be
reduced by 2,400
tons in a year.

Utilization of waste heat from the steam drain

BoilerProduction
equipment

Production
equipment

Production
equipmentTo
wastewater
treatment
area

Production
equipment

P

Underground drain tank

Turbo chiller

Use of air conditioning air cascade
During the manufacture of semiconductors, which areadversely affected by dust and other foreign matter, we use
a clean room to keep dust out, and also perform stringent
control of temperature and humidity. The exhaust air fromthe clean room which is thus kept clean and maintained at
a constant temperature is used in the material storage area,
plating work area, and so on, in order to reduce the amountof energy used for air conditioning. As a result of thesemeasures it is estimated that the amount of CO2 generated
can be reduced by 203 tons in a year.
Conventional air conditioning
OutsideairHigh efficiency operation of compressed air
supply equipment
The compressed air supply equipment consists of a
combination of a turbo compressor, which is suitable for aconstant load condition, and a screw compressor, whichwithstands load fluctuations. This ensures efficient
operation and also reduces energy consumption. It isestimated that this measure reduces the amount of CO2
generated by 260 tons a year.

Exhaust fan

Air conditioner
Exhaust fan

Outsideair

Air conditioner

Clean room, etc.

General room
Plating work area

Turbo compressor
Cascade air conditioning
Outsideair

Air conditioner

Outsideair

Air conditioner

Exhaust fan

Utilization

Clean room, etc.

General room
Plating work area

Screw compressor& Social Report 2007
25 Environmental
NGK Spark Plug Group Environmental and Social ReportProducts
Development of Eco-products
We give consideration to the environment through our
products such as spark plugs that contribute to better fueleconomy, and cutting tools that do no require oil, and also
research and develop new products that can contribute toenvironmental protection, aiming at the next generation.
Utilizing our ceramics technology, which is our strong
point, we have successfully developed fuel cells,

hydrogen manufacturing modules, and MEMS heattransmission type hydrogen sensors used in fuel cells. We
intend to carry out further development of technology forfuel cells which are expected to help prevent global
warming.
※ MEMS (Micro Electro Mechanical Systems)

Development of fuel cell
SOFC to small automobile auxiliary batteries, domestic
power supplies, and so on.

Environmental
conservation

Fuel cells are receiving attention because they canefficiently generate electricity and impose little load on theenvironment. Particularly, solid oxide fuel cells (SOFC)
which use ceramic materials are the most efficient type offuel cells and also have high long-term stability.
We developed an ultra-miniature high output density SOFC
jointly with the National Institute of Advanced Industrial
Science and Technology, and obtained a high output of atleast 2 W per 1 cm3 at a lower operating temperature thanthat of a conventional SOFC. We were able to integrate
small diameter cylindrical type SOFC using manufacturing
technology that is based on the assumption of mass
production, so we intend to utilize this technology andpromote further performance improvement and technicaldevelopment with a view to extending the applications of

SOFC cube cell

5Development of MEMS heat transmission type hydrogen sensors
Hydrogen is used as the fuel for a fuel cell, so it is important
to ensure safety in the event of leakage and also to control
the concentration for highly efficient electricity generation. A
hydrogen sensor functions to detect hydrogen leakage andalso to detect the concentration of hydrogen. Previously,
there was an issue of durability due to the composition of
the gas in the gas tubes of the fuel cell. The MEMS heattransmission type hydrogen sensor which we newly
developed overcomes thisissue, and can be used for awide range of applications
including gas tubes. We
intend to widen the range ofapplications of this sensor to
include various power
supplies and fuel cellautomobiles.
Hydrogen detector element

Overall hydrogen sensor

Development of a hydrogen manufacturing module
It is expected that technology for manufacturing hydrogenfrom natural gas can be used to make hydrogen stations forfuel cell automobiles and also hydrogen manufacturing
equipment for fuel cells.
We succeeded in jointly developing a catalytic integratedhydrogen manufacturing module with Tokyo Gas Co., Ltd.
This module can manufacture high purity hydrogen fromhydrocarbons. It is expected that it can be used ashydrogen manufacturing equipment for hydrogen stations,and so on. Previously, miniaturization and cost reduction
were issues associated with hydrogen manufacturing
equipment for hydrogen stations, however as a result of thistechnology it is now possible to reduce the size to between

1/5 and 1/6 of conventional equipment and also to aim for a
price that is competitive with the price of gasoline. We
intend to promote further development aiming at a practicalscale.

Hydrogen manufacturing module

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report26

5

Environmental conservation

Products
Control of Hazardous Substances
Basic philosophy
Regulations on hazardous substances, as represented by
the ELV directive and the RoHS directive, are becomingstronger worldwide, and control of chemical substances
contained in products is being demanded. Also, in June
2007, the REACH requlation were implemented, and as aresult it is necessary to control a wider range of chemical

1

substances. In order to prevent products fromcontaminating the environment, we have constructed andare implementing a control setup consisting of three stages,① meeting the customer’s demands, ② handling control
within the Group, and ③ procurement from suppliers.

Customer

Along with the strengthening of regulations related tochemical substances contained in products, customers(manufacturers) are placing increasingly strong
demands on products.
The NGK Spark Plug Group meets various demands byfor example submitting certificates stating that our
products do not contain substances that load theenvironment, submitting data concerning chemical
substances obtained using a JGPSSI tool or IMDS, fillingin the customer’s survey sheet, and undergoing an audit

3by the customer.
※ IMDS (International Material Data System)
This system is intended to collect information on materials
and the chemical substances that they contain, for theapproximately 30,000 parts used in an automobile.
※JGPSSI (Japan Green Procurement Survey Standardization Initiative)
This is a council consisting of volunteer electrical andelectronic equipment manufacturers who are engaged incommunization of chemical substances contained in partsand materials.

Supplier

In order to obtain an appropriate grasp of, and control,
information concerning chemical substances containedin materials that we purchase, we request our suppliers
to submit a written declaration stating that theirmaterials do not contain any substances that areprohibited by us, analysis data, and also data
concerning chemical substances contained in thematerials. We have adopted a green supplier system
under which we evaluate our suppliers from the aspectsof their environmental protection activities and material
control.
In fiscal 2006 we carried out a survey of 95 partnercompanies, and from the replies that we received andaudits that we performed we selected corporations that
could be certified as green suppliers. Also, in April 2007,
we explained our green supplier system to 300
suppliers (including partner companies), and requested
their cooperation.

Green supplier system
Certification criterion
The certification criterion for green suppliers is that both the systemcriterion and the material criterion be satisfied. As necessary, we request
our suppliers to submit material data and also control system check sheets
for chemical substances, and carry out control of chemical substances
contained in products.
System criterion

Material criterion●Acquisition of third party certification
under environmental management system●Non-inclusion of lead, mercury, hexavalentchrome, cadmium, PBB, and PBDE

Submission of system criterion survey sheet

Submission of non-inclusion certificate andanalysis data
※ PBB: Polybrominated biphenyl
PBDE: Polybrominated diphenyl ether

Support system
We constructed a system for supporting the environmental activities of our suppliers, and in fiscal 2007 we will
provide support and hold seminars as necessary.
On-site practical support

We provide long-term support for the construction of a system for carrying out environmental
improvement activities, aiming at acquiring certification for an environmental management system.

Seminars

We carry out guidance for an environmental management system such as ISO14001
or Eco-action 21.

& Social Report 2007
27 Environmental
NGK Spark Plug Group Environmental and Social Report2

NGK Spark Plug GroupIn order to appropriately control chemical substances contained in
products manufactured by the Group, and also substances used during
the manufacturing process, we obtained information concerning
customer requests and legal regulations, and established a “hazard
rank.” We control the quantities of substances coming under this hazard
rank, and also control the situation concerning the substitution andreduction of prohibited or restricted substances.

Information control
Information concerning acquired legal regulations and customer
requests have been arranged into a list in such a way that it can beperused using an intranet.

List of legal regulations

CustomerrequestLegal
regulation

Hazard rank
Hazardous substances are divided into prohibited, restricted, andcontrolled substances, depending upon the degree of danger or toxicity.
Also, a handling criterion is established for each rank.

Information acquisition

Information control
Hazard rank

Restricted
substances

Controlled
substances

Substances covered

Substances prohibited from use orstrongly restricted by regulations
Hazard level and toxicity are equivalent
A substitution program
to prohibited substances, but anshall be proposed and the immediate changeover is impossible
substances switched.
due to its special characteristics.
Emission into theMainly substances subject to PRTR
environment andLawtransportation upon use
are controlled.

Use is prohibited.

Product assessment
When developing a new product or changing thespecifications, we carry out a product assessment. We
check the situation regarding the existence of hazard
rank substances, and perform an environmental load
check at each of the design, manufacture, logistics, use,and disposal stages, in order to prevent contaminationof the environment by the product.

Designstage

Hazard rank

Environmental
conservation

Prohibited
substances

Handling standard(in-house criterion)

Control ofused quantity

5

Control of
reduction

Control system

Measures for hazardous substances
contained in the productIn order to meet the legal regulations due to the ELV
directive and the RoHS directive and also customer
demands, we are promoting the use of less hazardous
substances in products, such as by substituting
hexavalent chrome with trivalent chrome, changing overto lead-free solder, and using halogen-free materials.

・Does the product contain hazardous substances?
・Is the product designed in such a way that it uses
fewer resources than a conventional product?

・Are hazardous substances used in the production
process?
Manufacture
and logistics ・Are the quantities of energy used and waste
stage
materials generated in the manufacturing processless than those of a conventional product?

Use
stage

・Does the product cause less environmental
contamination than a conventional product?
・Does the product consume less energy than aconventional product?

Disposalstage

・Is the product disposed of while it contains
hazardous substances?

Spark plug

IC package

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report28

5

Environmental conservation

Communication
Disclosure
Issuing an environmental report

Accepting visitors at environmental factories

The NGK Spark Plug Group has been issuing an “ECO
report” since 2000, and also a “Site report” since 2003. The
contents of the “ECO report”, as an “Environmental andSocial Report”, have been changed since 2006 in order togive more coverage to the social aspect. We will continue todisclose information to enable the environmental
and social activities of the Group to be understood.

To let people understand our environmental conservation
activities, we accept visitors to our environmental factories.
We strengthen collaboration with other corporations and alsowith the regional society, and participate as a member of theoverseas exchange sectional committee of the Environmental
Partnership Organizing Club (EPOC) for the purpose of
constructing an environmental society and carrying out
exchange concerning the environment, and accepting
factory visits. In October 2006, we accepted overseas
trainees from the Japan International Cooperation Agency(JICA), and introduced them to ourenvironmental activities.

・4000 Japanese copies and 1000 English copies published, along withEnvironmental and online version.
Social Report ・Reporting the environmental and social activities of NGK Spark Plug andthe environmental conservation activities of eleven domestic affiliates.

Site
reports

・Published by each of the four NGK Spark Plug factories and nine affiliates.
・Reporting the environmental conservation activities of each business site.

Number of visits
Local residents, schools andlocal governments

29

Companies and organizations

2
Factory visit (Komaki Factory)

Community
Local cleaning activities
In order to maintain the environment surrounding our offices andfactories and also the local environment, we periodically carry out
cleaning activities and also participate in cleaning andHead Office andHead Office Factory

Komaki Factory

Miyanojo FactoryMay 2006(42 persons)November 2006 (42 persons)

Other than April and June (totalof 234 persons) every month

August 2006
March 2007

Iijima Ceramic

Nakatsugawa Ceramic

Kani CeramicAugust 2006 (18 persons)
December 2006 (17 persons)September 2006 (15 persons)March 2007
(22 persons)June 2006(17 persons)November 2006 (18 persons)(30 persons)(27 persons)beautification activities held by the local community. At the
Miyanojo Factory, a total of 250 persons participated in restoration
activities after the Kagoshima Prefecture torrential rain disaster.

Ise Factory
August 2006
March 2007

(33 persons)(14 persons)

Nichiwa Kiki

Nittoku Seisakusho

Nansei Ceramic

September 2006 (22 persons)March 2007(17 persons)June 2006(17 persons)September 2006 (18 persons)
December 2006 (16 persons)March 2007
(16 persons)Kamioka Ceramic

Ceramic Sensor

June 2006(24 persons)September 2006 (30 persons)
December 2006 (25 persons)March 2007
(32 persons)May 2006
October 2006

September 2006 (8 persons)March 2007
(10 persons)Tono Ceramic(27 persons)(27 persons)

Each month (total 148 persons)Cleaning activities held by the local residents
Date
May 22, 2006
October 15, 2006
October 15, 2006
February 17, 2007
March 18, 2007

Participation area
Event name
Iijima Ceramic
Environmental picnic
Cleaning activities in the vicinity of
Komaki Factory
the Komaku Civic Hall
Ceramic Sensor
Mt. Komaki beautification activities
Kani Ceramic
Kani River mass cleanup
Nittoku Seisakusho Oguchi Town cleanup activities

Ina Techno-valley Regional Center of the
Nagano Prefecture Techno Foundation

Held byLocation
Tenryu River

Komaki City
Komaki City
Kani City
Oguchi Town

Mt. Komaki
Kani River
Aise River

Vicinity of Komaki City
Civic Hall

Cleaning activities (Head Office Factory)

Environmental conferences
We hold conferences mainly with representatives of the local
residents to enable them to understand our environmental
conservation activities and also to obtain their opinions.

Conferences
Fiscal 2006

16 conferences,
101 persons
Cleaning activities (Komaki Factory)

Natural Environment
Promotion of factory greening
Some NGK Spark Plug Group offices and factories are locatedin areas surrounded by greenery. We are continuously weeding,pruning, and planting in order to protect this abundant greenery.
Also, in fiscal 2006 we greened a total of 1,080 m2 of the roof of
the No.1 factory and also the roof of the welfare wing at the
Komaki Factory.

& Social Report 2007
29 Environmental
NGK Spark Plug Group Environmental and Social Report

Biotope (Ise Factory)

Roof greening (Komaki Factory)Mind
Education and Enlightenment
Safety/health and environmental convention
We have organized an environmental convention every year
since fiscal 2001, and also a safety/health and environmental
convention since fiscal 2004 for the purpose of making all
employees of the NGK Spark Plug Group deeply aware ofenvironmental issues. In fiscal 2006, under the slogan “Let’s raiseenergy conservation effectiveness through rationalization of workand equipment!” we gave lectures and held panel exhibitions
concerning energy conservation. We also organized sessions invarious factories and affiliates featuring improvement examples
as the central theme, to which we invited local residents as well.

LecturePanel exhibition

Promotion of acquisition of public qualifications
Numbers of officially qualified employees
NGK Spark Plug

Affiliates

Air

39

2

Water

66

12

Noise

41

3

Vibration

28

2

Energy manager

43

6Specially controlled industrial waste manager

36

16

Environment measurement engineer

20Work environment measurement engineer

71Pollution control manager

Environmental
conservation

In order to observe the laws
and voluntary regulations
related to environmental
preservation, we train
employees
tohavespecialized knowledge
and also promote theacquisition of public
qualifications, according to
the business contents ofeach factory or affiliate.

5

Waste water quality check

Environment card

Participation of Team Minus 6%

We distribute environment cards to all employees of the
NGK Spark Plug Group so that they understand and areaware of our environmental policy. The employees write
the “organizations objectives and goals” and “myindividual efforts” on theenvironment cards to ensurethat they remain aware ofenvironmental conservation.

NGK Spark Plug Co., Ltd. and our affiliates participate inTeam Minus 6%, which is a national campaign forrealizing a 6% reduction of greenhouse gases. We have astronger awareness of preventing global warming andintend to continue our energy conservation activities.

Health, Safety and Environmental News

Employee magazine “Nittoku”

To educate and enlighten our employees, we periodicallyissue “Health, Safety and Environmental News”, which
provides information on items such as ISO14001-based
activities, rules and measures concerning health andsafety, and various related events. We commenced issuing
an English language
version in fiscal 2005 tocover our overseas offices
and factories.

Our monthly employee magazine“Nittoku” includes pages devoted tothe environment. To help raise anenvironmental awareness among our
employees, this magazine covers
items such as environmentally related
events and topics both in Japan andoverseas, and theimpact of environmentally
relatedregulations on our
activities.

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report30

5Environmental conservation

Data
PRTR

(kg)
Cabinetorder No.

Head Office/
Factory

40
63
68
108
144
224
227
231
299
19
24
25
30

NGK Spark Plug

Komaki Factory

Miyanojo Factory

40
63
100
108
144
207
227
230
231
232
299
304
309
310
311
346
68
108
144
231
304
30

Ise Factory

Iijima Ceramic

Affiliates

Nakatsugawa
Ceramic(Head Office
Factory)

Nakatsugawa
Ceramic(Takenami
Factory)
Kani Ceramic
Nansei Ceramic
Nittoku Seisakusho (Oguchi Factory)
Ceramic Sensor

43
63
207
230
310
311
63
68
108
227
230
231
270
346
63
64
68
227
230
270
272
346
68
227
230
270
272
346
63
270
230
231
253
283
304

Quantity
Quantity discharged
Quantity moved
Name of applicable chemical substance
Quantity
Quantity
removed andBurial and[Substance for which a report must be issued]
handledPublic sewer incineration
Air
Public water area
Soil
Effective utilization treated taken out
Ethyl benzene
5,494
5,495
0
Xylene26,803026,8051Chromium and trivalent chromium compounds
4,259
1
0
787
5,047
Inorganic cyanogens compounds (except complex salts and cyanate)
1,111
12
1,126
Dichloropentafluoropropane (also called HCFC-225ca)
0
3,000
3,000
1,3,5-trimethylbenzene
2,870
0
2,871
Toluene61,7480
93
61,841
Nickel47,473797
48,270Benzene
2,063
1
2,064
3-amino-1H-1,2,4-triazol (also called amitrol）
14
1,428
1,442
Linear alkyl benzene sulfonic acid and its salts (limited to salts whose alkyl
1,327
1,327
base has a carbon number between 10 and 14, and mixtures thereof)
Antimony and its compounds
2,554
1,130
3,684
4,4’-isopropyliden diphenol and 1-chloro- 2,3epoxypropane polycondensates (also called bis- 10,806
10,806
phenol A type epoxy resin) (limited to liquid resin)
Ethyl benzene
1,807
875
26
2,709
Xylene
9,441
9,757
1,858
21,057
Cobalt and its compounds
2,730
2
395
3,127
Inorganic cyanogens (excluding complex salts and cyanates)
6,194
2,870
68
9,132
Dichloropentafluoropropane (also called HCFC-225)
2,473
2,473
Water-soluble copper salts (excluding complex salts) 173,625
78
3,683 169,864
Toluene24 11,686
318
12,028
Lead and its compounds
882
87
201
1,170
Nickel
13,50829
51
13,588
Nickel compounds
41
5,410 12,082
17,534
Benzene
1,147
5
1,153
Boron and its compounds
16,419
180
368
2,412
19,380Poly (oxyethylene) = Nonylphenyl ether
126
3,626
3,751
Formaldehyde
155
15,337
15,492
Manganese and its compounds
50
66
7,236
7,352
Molybdenum and its compounds
2,006
107
2,113
Chromium and trivalent chromium compounds
90
0
1,966
2,056
Inorganic cyanogens compounds (except complex salts and cyanate)
3,000
36
3,037
Dichloropentafluoropropane (also called HCFC-225ca)
3,499
3,499
Nickel118,695
118,695
Boron and its compounds
4,614
190
4,810
4,4’-isoproyliden diphenol and 1-chloro- 2,3epoxypropane polycondensates (also called bis86
3,665
3,750
phenol A type epoxy resin) (limited to liquid resin)
Ethylene glycol
2,224
2,224
Xylene
2,404
479
2,883
Water-soluble copper salts (excluding complex salts)
1,009
1,009
Lead and its compounds
34,931
12,36547,296
Formaldehyde
2,208
2,208
Manganese and its compounds
1,398
1,663
265
0
Xylene
6,685
2,465
9,150
Chrome and trivalent chromium compounds
2,256
1,892
4,148
Inorganic cyanogens
1
2,967
3,906
709
229
Toluene39,965 39,965
Lead and its compounds
5,858
527
6,384
Nickel2,098
2,098
Phthalic acid di-n-butyl
4,896 12,487
17,384
Molybdenum and its compounds
3,001
840
3,841
Xylene
5,257
8,715
14,161
189
Silver and its compounds
3,325
3,325
Chromium and trivalent chromium compounds
5,466
4,870
10,335
Toluene399
90,824 90,425
Lead and its compounds
1,221
5,827
4,606
Di-n-butylphthalate
3,321
9,521 11,977
24,818Phthalic acid bis (2-ethylhexyl)
3,689
4,358
271
399
Molybdenum and its compounds
574
2,679
2,106
Chrome and trivalent chromium compounds
44
1,184
262
1,490
Toluene11,621
68,176 56,555
Lead and its compounds
709
3,987
3,278
Phthalic acid di-n-butyl
212
1,281
9,664
8,171
Phthalic acid bis (2-ethyl hexyl)
593
3,649
3,056
Molybdenum and its compounds
34
170
1,060
856
Xylene1,046
1,046
Phthalic acid di-n-butyl
1,104
2,253
1,150
Lead and its compounds
1,052
1,052
Nickel
8,721
8,721
Hydrazine
7,795
8,961
1,166
Hydrofluoric acid and its water-soluble salt
217
0
0
2,466
2,249
Boron and its compounds
511
2,323
1,812
Total
588 142,364 357,612 315,167
1,282
0
13
1,030,644 213,621

Waste

Office or factory

Affiliates

Affiliates& Social Report 2007
31 Environmental
NGK Spark Plug Group Environmental and Social Report

For inquiries
NGK
Spark Plug

NGK
Spark Plug

Volume of emissions Volume effectively Volume of landfill and
Office or factory
Recovery rate (%)(tons)
used (tons)
incineration (tons)
Head Office/Factory
880.7
875.5
5.2
99.4
Komaki Factory
19,767.7
19,693.6
74.2
99.6
Miyanojo Factory
3,425.8
3,387.6
38.2
98.9
Ise Factory
2,965.9
2,954.8
11.1
99.6
Iijima Ceramic
1,052.0
1,039.4
12.6
98.8
Nakatsugawa Ceramic
434.0
426.5
7.6
98.3
Kani Ceramic
64.4
63.8
0.6
99.1
Nansei Ceramic
17.3
17.2
0.1
99.6
Kamioka Ceramic
58.4
57.9
0.5
99.1
Nittoku Seisakusho
239.6
237.6
2.0
99.2
Nichiwa Kiki
6.7
6.6
0.1
98.5
Tono Ceramic
81.3
80.2
1.1
98.7
Ceramic Sensor
843.5
840.0
3.5
99.6
Total
29,837.4
29,680.8
156.7
99.5

Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Iijima Ceramic
Nakatsugawa Ceramic
Kani Ceramic
Nansei Ceramic
Kamioka Ceramic
Nittoku Seisakusho
Nichiwa Kiki
Tono Ceramic
Ceramic Sensor

Contacts for inquiries (Dept. name/tel)Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.

052−872−5980
0568−76−1544
0996−53−2211
0596−39−15340265−86−5211
0573−68−5484
0574−63−2511
0599−65−33660578−82−1112
052−811−3921
052−382−0511
0574−63−1031
0568−76−5400

Air, water, noise
Type

Unit

Item

Boiler (No.12)
mg/Nm3Firing furnace (PR-2) mg/Nm3
Boiler (No.12)
ppm
Firing furnace (PR-2) ppm

Atmosphere

Nakatsugawa
Ceramic(Head Office
Factory)Drain(sewer)Noise

Nakatsugawa
Ceramic(Takenami
Factory)

Drain(public water
area)

Noise

Atmosphere

Kani CeramicDrain(sewer)Noise

Nansei
Ceramic

Drain(public water
area)

Noise

Kamioka
Ceramic

Drain(public water
area)

Noise

Nittoku
Seisakusho(Head Office
Factory)

Nittoku
Seisakusho(Oguchi
Factory)Drain(sewer)

Noise

Drain
(public water
area)

Noise

Nichiwa Kiki

Drain
(sewer)Noise
Atmosphere

Tono Ceramic

Drain(public water
area)

Noise

Atmosphere

Ceramic
SensorDrain(public water
area)

Noise

Voluntarystandard Average
Type
Unit Regulation
value
value
Soot and dust Firing furnace(NN-1) mg/Nm350
20
6Firing furnace(NN-1) ppm
SOx
―
―
0
pH
―
5.8〜8.6 6.2〜8.6
7.5
mg/l
SS
50
35
2.3
mg/l
BOD
15
13
2.2
mg/l
COD
40
30
7.3
n-hexane extract
mg/l
5
4
<0.5
Nitrogen
mg/l
10
10
2.8
Phosphorus
mg/l
3
2.5
0.06
Coli bacteria
counts/cm3 3000
1000
19.3
Morning
dB
60
58
47.5
DaytimedB
65
63
52
Evening
dB
60
58
48.5
Night
dB
50
50
47
pH
―
5.8〜8.6 5.8〜8.6
6.4
mg/l
SS
200
100
3.9
mg/l
BOD
160
130
5.6
mg/l
COD
160
80
13.3
n-hexane extract
mg/l
5
4
<0.5
Nitrogen
mg/l
120
120
74
Phosphorus
mg/l
16
16
7.7
Coli bacteria
counts/cm3 3000
2000
2.5
Morning
Fourth spot
dB
50
50
49.5
Fourth spot
Daytime
dB
55
55
50.5
Evening
Fourth spotdB
50
50 ※2 50.5
※2
Fourth spot
Night
dB
45
45
49
Soot and dust
mg/Nm3
100
90
9
NOx
ppm
150
135
130
pH
―
5.8〜8.6 5.9〜8.5
7.1
SS
mg/l
200
180
1.6
BOD
mg/l
160
144
17
COD
mg/l
160
30
7.6
n-hexane extract
mg/l
5
4.5
1
MorningFirst spotdB
50
50 ※2 52.6
DaytimeFirst spot
dB
60
60
52.4
EveningFirst spotdB
50
50 ※2 51.4
NightFirst spotdB
45
45 ※2 51.7
pH―― 5.8〜8.6
7.1
mg/l
SS
―
90
14
mg/l
BOD
20
20
12
mg/l
COD
―
40
9.67
n-hexane extract
mg/l
―
5
<1
Lead
mg/l
―
0.1 <0.01
Nitrogen
mg/l
―
100
9.63
Phosphorus
mg/l
―
16
0.87
Coli bacteria
counts/cm3
―
1000
17.3
North
Morning
dB
55
55
48.4
Daytime
North
dB
60
60
58.4
North
Evening
dB
55
55
47.1
North
Night
dB
50
50
46.1
pH
―
5.8〜8.6 6.2〜8.2
7.7
mg/l
SS
200
50
5.15
mg/l
BOD
160
40
13.8
mg/l
COD
160
40
8.85
n-hexane extract
mg/l
5
2.5
<0.5
Coli bacteria
counts/cm3 3000
300 <30.0
Fourth spot
MorningdB
60
60
47
Fourth spot
DaytimedB
65
65
47
Fourth spot
EveningdB
60
60
47
Fourth spot
Night
dB
50
50
47
pH
―
5.0〜 5.8〜9.0
7.3
SS
mg/l
600
300
97
BOD
mg/l
600
300
220
n-hexane extract
mg/l
50
25
3.7
※1 64
MorningdB
60
60
Daytime
dB
65
65
64
※1 61
Evening
dB
60
60
pH
―
5.8〜8.6 6.0〜8.0
7.2
mg/l
SS
30
30
3
mg/l
BOD
25
20
5.9
n-hexane extract
mg/l
5
4
<1
Nitrogen
mg/l
120
60
0.6
Phosphorus
mg/l
16
8
0.04
MorningdB
55
55
54
DaytimedB
60
60
57
Evening
dB
55
55
52
Night
dB
50
50
45
pH
―
5.0〜 6.0〜8.0
7.3
n-hexane extract
mg/l
50
40
<1
Daytime
dB
65
63
61.9
Soot and dust
mg/Nm3
―
200
22
NOx
ppm
―
400
38
pH
―
― 5.8〜8.6
7.2
mg/l
SS
―
200
8.5
mg/l
BOD
―
160
62
n-hexane extract
mg/l
―
5
<0.5
MorningdB
50
50
49
DaytimedB
60
60
57
Evening
dB
50
50
49
Night
dB
45
45
44
Soot and dust
mg/Nm3
200
100
0.1
NOx
ppm
―
150
28
pH
―
6.0〜8.0 6.0〜8.0
7.2
mg/l
SS
18
14.4
9.5
mg/l
BOD
18
14.4
5.5
mg/l
COD
18
14.4
12.3
n-hexane extract
mg/l
2
1.6
1
Nitrogen
mg/l
30
24
11.9
Phosphorus
mg/l
4
3.2
0.3
Fluorine
mg/l
8
8
2.0
Boron
mg/l
10
10
2.2
Daytime
dB
70
70
59.8
Night
dB
60
60
57.8

MAX
6
0
7.7
5.0
5.2
10.0
<0.5
4.7
0.15
92.0
48
53
51
48
7.1
12
14
17
<0.5
89
9.5
8
※2
54
55
※2
54
※2
53
9
130
7.1
1.6
17
7.6
1
※2 53.2
53.7※2 52.0※2 52.0
7.1
20
14
12
<1
<0.01
12
0.99
29
48.4
58.4
47.1
46.1
7.9
9.1
27
17
<0.5
30.0
47
47
47
47
7.3
97
220
3.7
※1 64
64
※1 61
7.2
3
5.9
<1
0.6
0.04
54
57
52
45
7.5
<1
61.9
22
38
7.2
8.5
62
<0.5
49
58
49
44
0.1
28
7.4
16
9
※2 21
1
16
0.65
3.5
3.1
62.2
59

※1： These values apply to the background noise level. The background noise level isthe noise when machines, and so on, are not operating. It is affected by traffic
noise, noise from adjacent factories, and so on.
※2： For the contents of infringements, see p.16 “Compliance.”

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

32

Environmental
conservation

Regulation Voluntarystandard Average MAX
value
value
50
40
<2
<2
Soot and dust
150
120
6.0
6.0
Atmosphere
150
120
48
48
NOx
180
144
47
63
pH
5.0〜9.0 5.4〜8.6
6.8
7.2
mg/l
SS
600
480
14
30
mg/l
BOD
600
480
16
69
n-hexane extract
mg/l
30
24
1.5
5.6
Cyanogen
mg/l
1
0.8
0.23
0.4
Total chromium
mg/l
2
1.6
0.05
0.13
Drain
mg/l
Hexavalent chromium
0.5
0.4 <0.04 <0.04(sewer)
mg/l
Zinc
2
1.6
0.58
1.10
Head Office/
Lead
mg/l
0.1
0.1 <0.02 <0.02
Factory
Nitrogen
mg/l
120
96
25.2
37
Phosphor
mg/l
16
12.8
0.4
1.6
Fluorine
mg/l
8
6.4
0.15
0.4
Boron
mg/l
10
8
<1
<1
R spot
dB
70
68
61.1
61.1
Morning
T spotdB
65
63 ※1 65.8 ※1 65.8
R spot
dB
70
68
60.6
60.6
DaytimeT spotdB
65
63 ※1 66.1 ※1 66.1
Noise
R spot
dB
70
68
67.3
67.3
Evening
T spotdB
65
63 ※1 66.1 ※1 66.1
R spot
dB
65
64
57.0
57.0
Night
T spotdB
55
54 ※1 64.9 ※1 64.9
Boiler (No.1-5)
mg/Nm3
200
160
<2
<2
Soot and dust
Firing furnace (No.9-10) mg/Nm3
200
160
7
7
Atmosphere
Boiler (No.1-5)
ppm
250
200
20.5
24
NOx
Firing furnace (No.9-10) ppm
200
160
40.5
50
pH
6.0〜8.0 6.2〜7.8
7.4
8
mg/l
SS
30
24
2.0
4.0
mg/l
BOD
25
20
5.7
23
mg/l
COD
―
―
5.3
13
n-hexane extract
mg/l
5
4
0.55
0.9
mg/l
Cyanogen
0.5
0.4
<0.1
<0.1
Total chromiummg/l
10.8 <0.04 <0.04
Drain
KomakiCopper
mg/l
1
0.8
0.04
0.2
(public water
Factory
mg/l
Zinc
2
2
0.23
0.57
area)
Lead
mg/l
0.1
0.08 <0.02 <0.02
mg/l
Nitrogen
120
60
6.96
11
Phosphorus
mg/l
16
8
0.42
0.96
Nickel
mg/l
―
―
0.20
0.4
mg/l
Manganese
10
8
0.12
0.4
Fluorine
mg/l
8
6.4
0.52
0.7
Boron
mg/l
10
8
1.17
3
Morning
Fifth spot
dB
65
63
54.1
54.1
DaytimeFifth spot
dB
70
68
52.4
52.4
Noise
Fifth spotdB
Evening
65
63
52.3
52.3
Night
Fifth spot
dB
60
58
50.6
50.6
Absorption heater/chiller mg/Nm3
300
240
7
7
Soot and dust
Generator (No.2) mg/Nm3
100
80
14
14
Atmosphere
Absorption heater/chiller ppm
180
144
73
73
NOx
Generator (No.2) ppm
950
900
670
670
SOx
Generator (No.2) Nm3/h
3.9
3.0
1.4
1.4
―
pH
6.0〜8.0 6.5〜7.8
7.6
7.9
mg/l
SS
35
28
6.9
17
mg/l
BOD
20
16
7.3
14
n-hexane extract
mg/l
5
4
3.4
3.4
Cyanogen
mg/l
1
0.8
<0.05
<0.05
Miyanojo
Drain
Hexavalent chromium
mg/l
0.5
0.4 <0.05 <0.05
Factory(public water
Coppermg/l
3
2.4 <0.05 <0.05
area)
mg/l
Zinc
2
1.4
0.08
0.08
Lead
mg/l
0.1
0.1 <0.01 <0.01
mg/l
Fluorine
8
6.4
<0.2
<0.2
Boron
mg/l
10
8
1
1
Coli bacteria
counts/cm3 3000
2400
95
95
Morning
dB
60
55
45.4
48.7
Daytime
dB
65
60
50.5
51.8
Noise
Evening
dB
60
55
47.4
49.2
Night
dB
50
50
44.1
45.4
Soot and dust Firing furnace
mg/Nm3
250
100
5.5
6.0
Atmosphere
Firing furnace
ppm
NOx
180
140
42
48
―
pH
5.8〜8.6 6.0〜8.4
7.6
8.1
mg/l
SS
30
24
1.08
2
mg/l
BOD
10
8
1.17
2
mg/l
COD
15
12
1.83
6
mg/l
n-hexane extract
5
2.5
<1
<1
Cyanogen
mg/l
1
0.5
<0.1
<0.1
Total chromiummg/l
2
1 <0.04 <0.04
Drain
mg/l
Hexavalent chromium
0.5
0.3 <0.04 <0.04
mg/l(public water Copper1
0.5 <0.02 <0.02
Ise Factory
mg/l
area)
Zinc
2
1.0 <0.005 <0.005
Lead
mg/l
0.1
0.05
0.01
0.01
Nitrogen
mg/l
120
60
3.35
19
mg/l
Phosphorus
16
8
0.27
0.85
Manganese
mg/l
―
―
0.05
0.05
Fluorine
mg/l
8
4
<0.1
<0.1
mg/l
Boron
10
5
0.07
0.24
Coli bacteria
counts/cm3 3000
1500
11
11
Morning
dB
55
55
50.6
50.6
Daytime
dB
60
58
49.4
49.4
Noise
Evening
dB
55
55
50.2
50.2
dB
Night
50
50
49.7
49.7
Firing furnace
mg/Nm3
250
250
<5
<5
Soot and dust
Absorption heater/chiller mg/Nm3
100
100
<5
<5
Atmosphere
Firing furnace
ppm
180
180
<10
<10
NOx
Absorption heater/chiller ppm
150
150
34
35
―
pH
5.8〜8.6 6.0〜8.0
7.2
7.4
mg/l
SS
50
10
2.6
7
mg/l
BOD
30
25
1.8
2.9
mg/l
COD
30
30
4.0
6.2
n-hexane
mg/l
5
5
<1
<1
Phenolsmg/l
55 ＜0.02 ＜0.02
Drain
IijimaCyanogen
mg/l
0.5
0.2
<0.01
<0.01
(public water
Ceramic
Copper
mg/l
2
2
0.04
0.05
area)
mg/l
Zinc
3
3 <0.05 <0.05
Lead
mg/l
0.1
0.1 <0.005 <0.005
Ammonia
mg/l
500
500
10
10
mg/l
Fluorine
15
15
0.18
0.2
Boron
mg/l
50
50
0.5
0.5
Coli bacteria
counts/cm3 3000
3000
79.2
120
MorningFirst spot
dB
65
65
44.8
44.8
DaytimeFirst spot
dB
65
65
45.8
45.8
Noise
EveningFirst spot
dB
65
65
49.5
49.5
Night
First spot
dB
55
55
48.8
48.8
Item

5

6

Social contribution
As a good corporate citizen, we shall actively engage inphilanthropic activities and other activities of benefit to society.
• We are always keen to join social contribution initiatives such as fund raising by the general business community for theurgent support of victims of large-scale natural disasters.
• In areas where our production sites are located, we are committed to various types of social contribution activities
whose aim is to enhance communication with the local communities and establish a more comfortable society.
• We will maintain an environment for encouraging employees to get voluntarily involved in social contribution.

Traffic Safety
Traffic safety training

Traffic safety risk map

As a corporation that is involved with the automobile
industry, we carry out traffic safety activities. In addition toraising the awareness of safe operation among our
employees, we also urge persons passing the vicinity of
our office or factory to observe traffic safety.

At the Komaki Factory where there
are many employees who commuteby car, we collect information
concerning traffic accidents in thevicinity of the factory, and urge theemployees to be more careful at
dangerous places.

Award for contribution to traffic safety
Vice president Hashimoto
received an award for carryingout traffic safety activities overmany years, from Aichi
Prefecture and also the Aichi
Prefecture Traffic Safety
Promotion Council.

Contribution to Local Communities
Donation of AED training kits
An AED (Automated External Defibrillator) is a medical
appliance that is used to apply an electric shock to theheart when cardiac failure has occurred, in order torestore the normal rhythm. AEDs are being installed in an
increasing number of places such as stations and public
facilities, so we donated six training kits to Nagoya City inwhich our Head Office is located.
We also held a course for our employees to enable themto use an AED in the event that the necessity arises.

Coexistence with other cultures
It is essential that foreigners living in Japan know the laws andlife-style of Japan from the viewpoint of living in safety andpeace of mind. Accordingly, Komaki City where the Komaki
Factory is located, Komaki Police Station, and corporations in
the city where foreign workers are employed established the
Komaki International Problem Liaison Council, and held a“Safety and Peace of Mind Lecture” for the first time.
About 120 Brazilians of Japanese extraction working at the
Komaki Factory attended this lecture, and learnt traffic rules,
the method of putting out garbage, and the pension andtaxation systems.

& Social Report 2007
33 Environmental
NGK Spark Plug Group Environmental and Social Report

Donation of AED

AED training session

Commemorating the 70th Year of Our Foundation
We were able to reach the 70th year since our foundation
thanks to the understanding and support of the regionalsociety. We express our appreciation in a variety of ways.

Donation of vehicles
As a token of our appreciation for reaching our 70th year
since our foundation we donated vehicles to thecommunities in which our four factories are located.

Earthquake simulation vehicle

Nagoya City : Earthquake simulation vehicle ………1
Komaki City : Earthquake simulation vehicle ………1
Satsuma Town : Public vehicle (fire prevention vehicle) 3
Ise City: Public vehicle (hybrid car) ……………2

Inside of earthquake simulation vehicle

Donation ceremony

Establishment of the “Nittoku Asia Foreign Student Scholarship” public trust
now, we established a scholarship fund for students fromvarious countries in Asia enrolled at universities or
graduate schools in Aichi Prefecture on the occasion of
our 70th year in business. We hope that we can foster
promising human resources who will maintain friendly
relations between Japan and various Asian countries.

Completion of the office and welfare wings at the Miyanojo Factory
We held a ceremony to commemorate the completion of
the office wing which was opened in February 2007 andthe completion of the welfare wing which was opened in
July, a ceremony to commemorate the 70th year since
the founding of the company, and a ceremony tocommemorate the 60th anniversary of the formation of aCompletion ceremonylabor union, on the same day. A total of 600 persons,
including the mayor of Satsuma Town and related
persons, employees, and their families participated in theevent, which also included a tour of inspection of thefactory and rice-cake making.

Tour of inspection of the factory by thefamilies of employees

Rice-cake making

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report34

Socialcontribution

We have manufacturing centers in 12 countries and sales
centers in 24 countries throughout the world. Particularly,in Asia, we are developing businesses in Malaysia,
Thailand, Indonesia, Taiwan, South Korea, Singapore,
China, and India. In order to express our appreciation forthe support and cooperation we received when wedeveloped businesses in various countries in Asia up to

6

7

Employees
We shall strive to respect the diversity and individuality of ouremployees and foster a safe and excellent working environment
where they can realize their full potential.
• Based on our corporate philosophy (Management policy) that “We offer a working environment in which each one of us
is encouraged to make full use of his or her personality and capability”, we will place emphasis on the cultivation ofunique and cooperative human resources.
• We acknowledge that employees are the most important management resource, and will secure nondiscrimination andequal opportunities in employment, provide fair working conditions and establish a personnel system to ensure thatpeople with different qualities can fully realize their own capabilities.
• We will consider the health and safety of employees and provide a comfortable working environment. We will never get
involved in the use of forced labor or child labor in any way.

Personnel system
Equal Opportunity
We are working to eliminate discrimination according torace, sex, beliefs, handicap, and so on, during the recruiting
process and in the workplace in order to ensure equality ofopportunities. As of the end of March 2007, females accountfor 16.2% of permanent employees, but account for 27.5%of new employees in fiscal 2006, so it is expected that thepercentage will gradually rise.

We have increased the choices for motivated employees by
establishing a job switching system, and also by establishinga system that enables women to work midnight shifts.
At present our employment rate of handicapped persons isless than 1.8% which is designated by law, so we will
endeavor to promote employment of handicapped persons
in the future.

Male-female ratio
Permanent employees

Percentage of employees who are handicapped

New employees

(%)
2.0

(Fiscal 2006)

1.81

1.79

Females
16%

Females
28%

1.70

1.71

1.69

1.5

1.57
1.41

Males
84%

Males
72%

1.0

0

(As of end of March 2007)

2000

2001

2002

2003

2004

2005

2006 (Fiscal year)

Supporting Ability Development
Function-specific training

Level-specifictraining
Skills and technologies Sales Globalization Specialized training
Department
manager

ApplicantsContinuing
education

Happy Life Seminar

Correspondence learning scheme

TQM education

Intellectual property education

In-house OA school (e-learning)

New employee introductory training

Product learning training for sales staff

New
employee

In-house language school

Less
than
3 years

5th year Follow-up
training training

General staff& Social Report 2007
35 Environmental
NGK Spark Plug Group Environmental and Social Report

3to7
years

Technical Supervisor Leader General Basic
skill
skill
training

New section
chief training

10to15years

New section chief training

Training for acquiring special qualifications

New staff
training

Sectionchief

Safety Leader General training
training training

Deputysectionmanager

Evaluation training

SectionmanagerInternational project personnel cultivation scheme

Assistantmanager

New staff training

Selective training

Required education

Management simulation
training

We provide level-specific training, function-specific training, andcontinuing education to employees, according to their work
content and business environment, so that they can acquire
knowledge and skills and pass them on to future generations.

Supporting Simultaneous Pursuits
To help employees who are raising children and caring forfamily members, the NGK Spark Plug is striving to establish
a suitable system and a work environment that allows thesimultaneous pursuit of childcare/nursing care and work.
Schemes to support childcareChildcare leave To the age of 1 It is possible to take leave in order to raise
schemeyear
children.
Childcare leave To the age of 2
It is possible to extend the leave period when
extensionno nursery school is available, for example.
years
schemeSpecial leave
Until entrance to It is possible to acquire nursing leave for up to
schemeelementary school 5 days a year to nurse a sick or injured child.
Short-time work Until the end of the
It is possible to shorten the working hours permonth after entering
schemeday by 2 hours.
elementary school(people)
50
40
30
20
10
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
(Fiscal year)

Number of employees taking childcare leave

Number of employees taking nursing leave

Management of Working Hours
To ensure proper management of working hours andprevent excessive work and unpaid overtime, we haveadopted a working hour management system using
employee IC cards.
We also develop enlightenment
activities by distributing our “Working
Hour Management Handbook” to all
employees, and in cooperation withthe labor union ensure that
Wednesday is observed as a noovertime day.

“Today is a no-overtime day”

Labor and Management Relations

Re-employment system for ex-employees
In 2001, the NGK Spark Plug introduced a system of reemploying retirees of retirement age in order to effectively
utilize the knowledge and skills they cultivated throughout
their careers. Along with the enforcement of the revised
Law concerning the Stabilization of Employment of Elderly
Persons in April 2006, we will extend the period of reemployment in phases to age 65.

Happy Life Seminar

Central labor andmanagement gathering

Since 1994 we have held Happy Life Seminars (overnight staywith spouses) for employees
who have reached the age of 50
or more. This seminar gives
them opportunities to think about
their life aims in the second
phase of their life as well as theirhealth and finances, throughlectures and group discussions. Happy Life Seminar(people)Re-employed ex-employees
Participants in the Happy Life Seminar ※60th anniversary of founding

Fiscal 2006

Total

27
85

184
1032

※ Excluding spouses

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

36

Employees

An important mission of labor and management is tocontribute to society at large by offering good products andgood service (doing good work). To ensure that both labor andmanagement discharge their responsibilities in an atmosphereof mutual trust, and create a better workplace, we periodicallyhold labor and management gatherings and also labor andmanagement conferences, and deal with a variety of issues.
In January 2006, the labor union reached the 60th year of its
formation.

After Mandatory Retirement

7

7

Employees

Occupational safety and healthPhilosophy and Basic Policy
Philosophy
Based on respect for human dignity, we position
occupational safety and health as the starting point of ourcorporate activities.

Occupational safety and health policy• We will comply with the law and our voluntary standards
related to occupational safety and health.
• We will reduce risks and eliminate occupational
accidents through the continual improvement of ouroccupational safety and health system and performance.
• We will acquaint all employees with this policy,
encourage self-awareness through education andenlightenment, and broadly develop occupational safety
and health activities across the organization.

SloganReduce risks and build a physically and mentally healthy
work environment!
(Adopted in April 2005)

Vice President of Safety
and HealthGenjiro Hashimoto,Executive Vice President
Safety and health promotion organization
President
Vice President of
Safety and HealthCentral safety and healthcommittee meeting(twice a year)

Central safety and healthcommittee chairman()

Chief Safety and
Health Administrator
Internal Safety
andHealth Auditor

Factory safety and healthcommittee meeting

Expert committeesorganized when necessary(once a month)・Ad hoc assessment
committee
・Traffic safety measurescommittee

Department/section safety
and health subcommittee

OSHMS
Secretariat(once a month)

Office meeting on
safety and health

Each factory

Occupational Safety and Health Management System
To eliminate occupational hazards and create a comfortable working
environment, we are seeking to establish an occupational safety andhealth management system (OSHMS). As a result of having thissystem subjected to an examination in December 2006, it was
confirmed that the system conformed to the OSHMS standard of
JISHA (Japan Industrial Safety and Health Association) based on the
Occupational Health and Safety Management System of the Health,
Labor and Welfare Ministry, and we acquired certification of eligibility.

Survey of danger and toxicity
Drawing up a plan

ActionPlan

Phased improvement of
the safety and health standard

Improving
the plan

Check

Situation concerning acquisition of certification of eligibility
Factory nameDate of approval

Head Office and Head Office Factory

December 11, 2006

Komaki Factory

December 11, 2006

Miyanojo Factory

December 25, 2006

Ise Factory

December 11, 2006

Implementing
the plan

Examination

Approval certificate
conferment ceremony

Do

Evaluation of
the plan situation

Approval plate

Target and Results
In fiscal 2006, we established the targets shown in thetable below and set out to achieve them, however many
items could not be achieved. For the results of eachtarget, please see the next page.

When setting the targets in fiscal 2007, we checked thecontents of accidents that occurred in fiscal 2006, andselected striking accidents and also accidents caused byscattering of metal, and so on, as the target.

Fiscal 2006 target results

Fiscal 2007 target

1. Elimination ofoccupational
accidents

1 Elimination of crushing accidents

×of accidents caused by
2 Elimination
scattering of chemicals

×3 Promotion of safety and health training ○of safety and health
4 Promotion
enlightenment activities○

Elimination of occupational Elimination of crushing and striking accidents
accidents
Elimination of accidents caused by scattering
Improvement of working
environmentof number of employees with
1 Reduction
abnormal findings in general health checkups ×
blood test and stomach
2. Improved health 2 Fecal
×examination rate of 100%control
Promotion of separation of smoking
3○awarenessareas from rest areas
4 Mental health care examination rate of 100% ○of the number of workplaces
3. Improvements
1 Reduction
×in the third management category
in the working
Reduction of the number of workplaces
2 in the second management category×
environment& Social Report 2007
37 Environmental
NGK Spark Plug Group Environmental and Social Report

Health promotion

Reduction of workplaces in the third andsecond management categories
Improved health management awareness
Enhanced mental health care
Promotion of safety and health education

Enhanced educationand enlightenment

Reinforcing safety and health patrol
Promoting voluntary activities at the workplace

1．Elimination of occupational accidents
1 Elimination of crushing accidents

Number of accidents resulting in absence from work
(Number of accidents）

The total number of accidents including minor accidents was 19, of which 6
were accidents involving crushed fingers.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
0

2 Elimination of accidents caused by scattering of chemicals

3

1

5

2

3

2

1

4

1

Rate of accidents resulting in absence from work per year

There were 2 accidents due to scattering of chemicals. In both cases, theaccident occurred due to the tube coming away while the chemical was
being handled.

Electrical machinery and appliancemanufacturing business

NGK Spark Plug Co., Ltd.
0.7

Number of accidents resulting in
Rate of accidents
absence from work
resulting in absence ＝――――――――――×1 million
Total working hours
from work

0.6
0.5

3 Promotion of safety and health training

0.4
0.3

We educate employees in line with their experience and position such as new
employee, third-year employee, foreman, assistant manager or executive,
and also give education on organic solvents, dust and forklifts depending on
their job descriptions.

0.2
0.1
0.0
1997

1998

1999

2000

2001

2002

2003

2004

2005

2006 (Fiscal year)

4 Promotion of safety and health enlightenment activities
We give awards to workplaces that have had no accidents for a certain
period of time※. (※18 to 36 months)
Also, we continue to periodically carry out periodic safety and healthpatrols.
Safety and health education

Inspection by a occupational
health physician

2．Improved health control awarenessTo ensure that all employees maintain physical health, we aim to reduce the number of
employees with abnormal findings in general health checkups. In fiscal 2006, the numberof persons who were given a blood test increased, and also the average age of theemployees increased, resulting in an increased ratio of persons with abnormal findings.

2 Fecal blood test and stomach examination rate of 100%
Employees over a certain age have stomach examinations and fecal blood tests.
In fiscal 2006, 92.2% of employees had stomach examinations, and 90.7% had
fecal blood tests. These figures indicate a significant increase over last fiscal year.

Ratio of employees with abnormal findings as a result of a general health check
Ratio of employees withabnormal findings (%)

1 Reduction of number of employees withabnormal findings in general health checkups

40
30

28.0

28.5

29.5

2003

2004

2005

31.7

20
10
0

Employees

2006 (Fiscal year)

3 Promotion of separation of smoking areas from rest areas
We have been constructing smoking rooms and outdoor smoking areas in orderto promote separation of smoking areas, and by the end of fiscal 2006 we hadcompleted separation of smoking areas from most rest areas. We will continue
this work in order to separate smoking areas from the remaining rest areas.

7

4 Mental health care examination rate of 100%
To prevent health hazards caused by overwork, we have medical advisors
interview employees who work many overtime hours with interviews and givethem advice. In fiscal 2006 as well, all such employees received advice andconfirmed that they had no problem with their physical or mental health.

Completely nonsmoking cafeteria

3．Improvements in the working environment
1 Reduction of the number of workplaces in thethird management category
2 Reduction of the number of workplaces in thesecond management category
Workplaces that handle organic solvents and specified chemical substancesor generate significant noise implement work environment measurement
based on the Occupational Safety and Health Law. Concerning the viewpointof measurement of noise in the work environment, there are workplaces
judged to be in the third and second management categories, and we havebeen trying to make improvements, however we were unable to realize any
noticeable improvement.

Management categoryFirst

Impact on health

Less

SecondThird
MoreSpecific chemical substance work
environment measurement

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report

38

8
9

Civil society
We shall reject all contacts with organizations involved in activities
in violation of the law or accepted standards of responsible social
behavior.
• We will take a strict stance on pressure from violent civil intervention, and decisive steps in cooperation with law
enforcement agencies.

Cultural respect
We shall respect the cultures and the customs of local communities where we dobusiness and strive to manage our activities throughout the world in such a way as
to promote and contribute to the development of local communities.
• We will perform our overseas business activities based on mutual trust with our customers, suppliers, employees, etc.,
and not only comply with the laws of each country but also respect its culture, customs and history.
• We will train to utilize local employees and suppliers in order to be a trustworthy company and a part of local society.

Siam NGK Spark Plug Co., Ltd.

NGK Spark Plugs India Pvt.Ltd.

In December 6, 2006, we held the opening ceremony for the newfactory. The ceremony started with a reading of the sutras by 9 Buddhist
priests in accordance with Thai custom. Prayers were offered for further
prosperity during the ceremony which was attended by all of theemployees and persons concerned with the construction work.

Following on from the opening of the new factory in Thailand, we
held a ground-breaking ceremony for a new factory in India on
December 8, 2006. At the ceremony, which followed the Hindu
custom, prayers were offered to theearth as the mother of the beginningof all things, for the safety of thework and the prosperity of the newcompany.
At the center of the construction site, ahole of 1 m diameter was dug, and goodluck talismans were offered in time withthe priest’s reading of the sutras.

NTK Technical Ceramics Polska Sp.z o.o.

Ceramica e Velas de Ignicao NGK do Brazil Ltda.

March 8 has been designated by the United Nationals are
International Women’s Day. At NTK Technical Ceramics Polska Sp.zo.o., flowers were presented to female employees as a token of
thanks for their ongoing cooperation, in accordance with local custom.

Previously, production in Brazil was carried out in the Mogi
Factory and the Cocuera Factory, but in January 2007 all
production was moved to the Cocuera Factory.
The site of the old Mogi Factory was seen by Mogi City, which
engages in large-scale commercial activities, as having potential
so we donated the site to Mogi City.

& Social Report 2007
39 Environmental
NGK Spark Plug Group Environmental and Social Report

10
EthicsManagement shall exercise leadership in making the letter and spirit of the Code of Conduct
integral to everyday business practice, thoroughly implementing the Code of Conduct
throughout the Company and inculcating it throughout the Group and its supply chain. To thisend, management shall continually improve internal systems while striving to cultivate ethics.
• Our top management will lead by example in the group’s code of conduct, and take the initiative in cultivating,establishing and spreading a corporate culture of encouragement for ethical actions.
• Through the enrichment of opportunities for direct communication with employees, etc. and the expansion of in-house
education, our top management will strongly encourage each member of NGK Spark Plug Group to be aware of andpractice the code of conduct.
• Our ultimate target is the creation and establishment of a united organization with an ethical corporate culture based on
the participation of all employees.

Activities for CSR
We believe that one of the most important management
issues for fulfilling our corporate social responsibility is toestablish and maintain a fair and efficient management
system while ensuring healthy and transparent
management.
Nov. 1996

Adopted corporate philosophy

Feb. 1998

Adopted corporate code of conduct

Apr. 1998

Established Ethical Committee

Feb. 2003

Adopted corporate ethics helpline system operation guidelines

Nov. 2004

As our basis stance for having
all directors and employees
understand and correctly
practice the components of ourcorporate philosophy, namely“Commitment”, “Management
Policy” and “Action Guidelines”,
we have established a“Corporate Code of Conduct”
which enhances awareness oflegal and ethical compliance.

Revised corporate code of conduct
Published “Code of Conduct Guidebook”

Feb. 2005

Published “Guidelines on the Handling of Personal Information”

Jan. 2007

Published “Secrecy Management Guidelines”

Code of Conduct Guidebook

Corporate Governanceprompt grasp of the situation to be obtained and alsochanges in the environment to be dealt with.
A board of auditors provides appropriate advice on atimely basis, sometimes from an external point of view.
Although we have designated no external board members※, we believe that the auditors can play a full role ingovernance. (※As of June 2007)

General meeting of shareholders
Appointment/dismissal

Administration
director in charge Indication

Internal audit section
Audit

President

EthicsIndication

Various conferences
and committee

Audit
Disclosure

Mutual cooperation

8
9

Business operating
sectionIndication

Managing directors
committee
of executive directors(Composed
and higher ranking directors )Appointment/
dismissal

Board of Auditors
4 auditors of whom 2
are outside auditors

Indication

Appointment/
dismissal

Appointment/
dismissal

Cultural respect

Board of directors

Audit

Civil society

Board of directors meetings are held (on a regular and asneeded basis) to discuss and make decisions on items
specified by laws and bylaws and other important issues
related to management, as well as to supervise theperformance of business operations. In addition, amanaging directors committee composed of executive
directors and higher ranking directors holds a monthly
meeting, and we have constructed a system to enable a

10

Accounting auditors

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report40

Acquisition of “A” environmental ranking
The NGK Spark Plug Group received an “A” evaluation forthe 2006 “environmental ranking” from the Tohmatsu
Evaluation and Certification Organization Co.,Ltd..
This ranking was implemented based on the environmental
reports and information disclosed on the websites
concerning 505 corporations which issued environmental
reports. Our ISO14001 integrated certification, third party
examination of our environmental report, and so on, were
evaluated, and we obtained “A” for the first time.
Evaluation criteria

Environmental

ranking
1 Issuing environmental report
・Implemented for 505
2 Score cardcompanies
3 Scope of activities
only for A or
4 Activities for reducing greenhouse ・Announced
higher ranking
gases

corporations
AAA : 2 companies
AA : 11 companies
contents of activitiesA: 25 companies
Acquisitionof
ISO14001
certification
7

5 Activities to counter soil pollution
6 Reliability and transparency of the

Message from a stakeholder
Mr. Masanori Okubo
Manager of the General Policy
Planning Section of the Economic
Policy Division, The Yokohama
Chamber of Commerce and Industry
First, my overall impression is that this report gives due
consideration to the stake holders at each level. It has beenedited following the corporate code of conduct, and there are
activity reports for each index. Consequently, it is possible toobtain an accurate grasp of data that one wishes to know,
and the contents of the report can be readily understood bypersons engaged in other areas of business as well.
Next, I would like to suggest that you include in the nextreport a digest article concerning a round table discussion
with the top management concerning the environment andsociety for the purpose of making the report more readable
to the general consumer. I think that this will enable you toproject a friendlier image of the overall Group.

Third party examination
The NGK Spark Plug Group prepares this report based on
our policy of conducting information disclosure in an easily
understandable manner. Environmental & Social Report
2007 underwent a third party examination by TÜV
Rheinland Japan, which also examined last year’s report.

The examination was made by verifying whether or notimportant environmental information is comprehensively
disclosed, whether or not the disclosed data is accurately
measured or calculated, and whether or not the described
information is consistent with the supporting materials.

Undergoing a third party examination
This is the second report that we have put out in the form of an“Environmental and Social Report.” We have received highly favorable
opinions concerning the activities report based on the corporate code of
conduct. We also received opinions from people to the effect that theylook forward to greater enhancement of the social aspect in futurereports. Also, regarding the environmental aspect, we received anevaluation saying that we have prepared a highly reliable system as thescheme for collecting data from domestic Group companies. On the other
hand, we received requests to devote more space to descriptions ofactivities at our overseas factories and offices as an issue for the future.
We have corrected the erroneous entries and inadequate expressions& Social Report 2007
41 Environmental
NGK Spark Plug Group Environmental and Social Report

pointed out to us during the examination. We will continue to steadily
improve those parts where immediate improvement was not possible dueto the inadequacies of our system.

Editorial meeting

Third party examination

Results of questionnaire concerning Environmental and Social Report 2006
Thank you for sending us all your answers to thequestionnaire in “Environmental and Social Report 2006”
published in fiscal 2006. We take your opinions seriously

Ｑ１

Nothing
15%

Before reading ourEnvironmental and Social
Report 2006, how much
did you know about NGK
Spark Plug Group’s
environmental policy or
activities?

Ｑ3

Reasonably easy

How easy did you find
our Environmental andSocial Report 2006 tounderstand?

A lot
35%

15%
Easy
85%

A little
50%

Other
8%

What did you think about ourcompiling two aspects of ourcorporate conduct in parallelin the Environmental andSocial Report 2006?

It's good that there wasmore on social aspects 84%

It would have better to describe
only environmental aspects 4%

Ｑ4What sections of ourEnvironmental and Social
Report 2006 wereparticularly impressive orinteresting for you? (Youmay select more than one.)

Environmental load frombusiness activities
Basic philosophy on
environment
Factory/OfficeSocial contribution

4%

4%

Please check the box orboxes that best describe
your situation andposition.

Difficult0%

Ｑ2

Difficult to say
4%Ｑ5

and are working to implement even more thoroughinformation disclosure.

Ｑ6
Have you read any ofour previously issued
ECO Reports?

12%
12%

Yes, all20%

49%
Yes, but not all

Business associate

Consumer

Shareholder or investor

Working in administrative organization

Working in environmental affairs

Working in environment-related NGO/NPO

11%

28%

8%

No, this was
my first

52%

NGK Spark Plug Group employee or family member

Ｑ7
If you have any other comments or requests
regarding our environmental activities, pleasewrite them here.

Request to answer
the questionnaire

I would like to see more
articles concerning thepoint of contact with society.

I would like you to carry out
activities that go pastcompliance.

I would like you to carry out
environmental conservation
on a worldwide scale.

Thank you for reading through our Environmental and Social Report 2007. For thefurther improvement of this report, we kindly ask you to fill in the questionnaire.

Please return the completed questionnaire to us by fax or e-mail. ⇒⇒Personal information protection policy

FAX +81 52-872-5942
e-mail : eco@mg.ngkntk.co.jp

We will only use your personal information to delivery next year’s report to you. Even when we publish the resultsof this questionnaire, we will not show it in a form in which the respondents can be identified.

Conclusion
Various environmental issues such as global
warming, depletion of resources, and the loss of
biodiversity have become serious, andcorporations are becoming strongly aware of thenecessity of developing environmental activities ona day-to-day basis. We have published this“Environmental and Social Report 2007” as a
medium that widely publicizes our environmental
activities and social activities. Following on fromlast year, we have edited this report in accordancewith the corporate code of conduct which consistsof 10 articles. We have set out our basic stanceand also the contents of our activities.
This year as well, we underwent an examination bya third party organization, aiming at maintaining thetrust of our customers. Regarding issues that
became manifest during the editing andexamination of this environmental and social
report, we intend to carry out continuous
improvement, and ask for your kind understanding.
Michio Obara, Senior Managing Director
Director in charge of the Environment and
Safety Department

Environmental & Social Report 2007
NGK Spark Plug Group Environmental and Social Report42

Environmental &Social Report
2007
NGK Spark Plug Group

14-18, Takatsuji-Cho, Mizuho-Ku, Nagoya City, Aichi Prefecture
467-8525
http://www.ngkntk.co.jp
Approval No. K0301090■Inquiries

Environment and Safety Department
TEL +81 52-872-5980 FAX +81 52-872-5942
e-mail:eco@mg.ngkntk.co.jp■Publishing Director

Norio Kato (Chief Environment Administrator)■Date of issue

August 2007 (Next publication schedule: August 2008)■Editor in Chief

Michio Obara (Director in charge of the Environment and Safety Department)

Registration No. A-（1）-060001【During the preparation of this report】
The purchase of the materials (paper, ink, etc.) comprising this report, and also editing and printing related to thisreport, were carried out by an ISO14001-certified company. Also, the materials (paper, ink, etc.) used do not containcadmium, lead, hexavalent chromium, mercury, polybromide phenyl (PBB), or polybromide diphenyl ether (PBDE).
Plate making : A CTP (Computer To Plate) method was used. As a result, film and also developing fluid and fixing fluid
accompanying the manufacture of the film were rendered unnecessary, thus reducing the consumption of
resources and also waste.
Ink : Ink that does not contain VOC (volatile organic compound) was used to minimize the generation of VOC.
This ink also conforms to the “voluntary regulations (NL regulations) concerning ink”, which are voluntary
regulations of the printing ink industry joint association.
Dampening solution : VOC-reduced dampening solution and washing solution that does not contain isopropylalcohol (IPA) wasused. Also, printing was carried out using a printer with a dampening solution circulating unit in order tominimize the occurrence of waste.
Paper : Thinned wood printing paper made primarily from thinned wood was used in order to make effective use oftimber resources and conserve the forests.