CSR Report 2011

CSR Report 2011
NGK Spark Plug Group

14-18 Takatsuji-cho, Mizuho-ku, Nagoya, Aichi 467-8525 Japan
http://www.ngkntk.co.jp■ Inquiries

CSR Promotion Department
TEL：+81 52-872-6248 FAX：+81 52-872-5999
e-mail ： csr@mg.ngkntk.co.jp

日本特殊陶業は、
チャレンジ２５キャンペーンに参加しています。

＊When this Report is no longer needed, please recycle.

CSR Report 2011
NGK Spark Plug GroupNGK Spar k P l ug G r oup C SR Repor t 2 0 1 1

CONTENTS
Message from the President

3

Corporate Proﬁle［Feature 1］Response to Major Disasters

5［Feature 2］Lineup of Hydrogen Energy Products

7

Corporate Name
Head Oﬃce

Management

9

CSR of NGK Spark Plug Group

9

Corporate Governance11

Risk Management

11

Compliance

12Social Report

14

With Our Customers

15

With Our Shareholders and Investors

18

With Our Suppliers

19With Our Employees

20This report has been prepared based on our

2629

the aim of providing reports in an easy-tounderstand and friendly manner, focusing on easeof understanding, importance and completeness,and trustworthiness.

Publication

Third party
examination

Results ofquestionnaires, third
party examination,
various guidelines in
the previous report

Editorial meeting/
Editing■Preparation of CSR Report

30
Information
gathering

Environmental Policy,
Environmental Action Plan

Editorial Policy

Editorial
policy-making

Environmental Report

Publication Policy

Information Disclosure Policy (on page 18) with

With Local Communities
and International Society

NGK SPARK PLUG CO., LTD.
14-18 Takatsuji-cho,
Mizuho-ku, Nagoya
Foundation
October 26, 1936
Capital47,869,270,000 yen
Business (1) Manufacturing and selling spark
plugs and related products forinternal-combustion engines.
(2) Manufacturing and selling technicalceramics and applicable products.
Group Companies 33 subsidiaries (9 in Japan,
24 overseas), 6 aﬃliates

33

Environmental Management

34

Global Warming

37

Selection of Information

Waste

39

important for NGK Spark Plug Group, as well as

Water Resource

40

information that is considered important or useful

Substances of Environmental Concern

41

Consideration to Ease of Understanding

Environmentally Friendly Products

43

Communication

44

Planning

Environmental Burdensfrom Business Activities

This Report covers information that is considered

for our stakeholders.
To ensure ease of understanding from thestandpoint of the audience, the entire document isdivided into the sections of management, social andenvironmental reports. In the social report,

Message from a Stakeholder

45

information concerning each stakeholder is provided

Third Party Review

45

according to each category of stakeholders. In
addition, each page is designed to clearly describe
the concept, mechanism and results of our activities.
Consideration to TrustworthinessWe have worked to improve the trustworthiness【Period covered】 From April 1, 2010 to March 31, 2011
Some other very recent activities and cases are also included.
【Covered Organization】● Social aspects : NGK Spark Plug Co., Ltd.
However, this report may also cover activities of subsidiaries
and aﬃliates inside and outside Japan. In such cases, speciﬁccompany names are indicated.
● Environmental aspects : NGK Spark Plug Groupexamination to affirm the correctness, neutrality,and veriﬁability of the content.
Information Disclosure on our websites
Places where you can look up more detailed
information on our website are marked thus:
W eb
IR Information

・NGK Spark Plug Co., Ltd.

http://www.ngkntk.co.jp/english/ir/index.html

・9 consolidated domestic subsidiaries and 1 aﬃliate.

CSR Information【Publishing Director】 Shinichi Odo, President

http://www.ngkntk.co.jp/english/csr/index.html【Editor in Chief】

Yukashi Ukai, General Manager

Reference guidelinesof CSR Promotion Department

・Environmental Reporting guidelines (2007 version)【Published】 September 2011
(The next report is planned to be published in September 2012.
/The previous report was published in September 2010.)

1of the document by undergoing third party

CSR Report 2011

issued by the Ministry of the Environment of Japan・GRI Sustainability Reporting Guidelines (Version 3)

NGK Spark Plug Group Business Outline

Network

W eb http://www.ngkntk.co.jp/english/company/network.html
EuropeJapan

North America

Aﬃliated Subsidiaries ..............4Aﬃliated Subsidiaries ..................................... 9
Equity Method Aﬃliates ............................... 1

Aﬃliated Subsidiaries ............. 4Aﬃliates to which the equity method

Sales ratio：22.1%

Sales: 60.1 billion yen

Sales ratio : 22.3%

Sales：59.5 billion yenof accounting is not applicable .......... 1
Sales：93.4 billion yen

Sales ratio ：34.7%

Asia, South America and Others
Aﬃliated Subsidiaries .................................... 15
Non-aﬃliated Subsidiaries ........................... 1
Equity Method Aﬃliates ................................ 1
Aﬃliates to which the equity method

Manufacturing &sales organization
Sales organization
Otherof accounting is not applicable ........... 3
Sales：56.2 billion yen

Sales ratio：20.9%

Primary Products
Automotive Components Group

Communication Media
Components Group■ Spark Plugs, Related Products■ Glow Plugs■ Sensors

Spark Plugs for
Automobile

Exhaust Gas Oxygen
Sensors

Technical Ceramic Group■ Semiconductor Components■ Medical Products■ Industrial Components■ Cutting Tools ■ Electronic Components

Ceramic IC Packages

Bone Filling Materials

Organic IC Packages

Ceramic Inserts

Financial Data

2009 2010(ﬁscal year)■ Sales Composition by Segment
Consolidated

Other 2％

11.2

Technical
Ceramics
9％

7.0

2006

2006

2007

2008

2009

2010
(ﬁscal year)

ROE ROE is one indicator of a company s proﬁtability.
ROE reveals how eﬀectively shareholder equity is being used; higher ROE means higher proﬁtability.

ROE＝23,68021,348200720082009 2010(ﬁscal year)

10,4076,000

Automotive
components
72％

13,509-71,669

2006

8,000

4,000
-30.6

13,29812,000Communication
media components
17％2009 2010(ﬁscal year)

Non-consolidated
Consolidated

14,000

-20
-30

2008

(people)269,232
million
yen

-10

2007

■ Number of Employees

10,0000-40-80,000

11,767

2008

5,731

2007

11,795

2006

5,726

7.7

10

-30,000

11,979■ Return on Equity (ROE*)
12.5-74,117-60,000

6,050

2009 2010(ﬁscal year)（％）
20

22,144-40,000

11,5992008

14,405-20,000

5,882

2007

20,0000-20,000
2006

Non-consolidated
Consolidated

40,00034,072

28,77015,162
7,566

10,683-5,22235,0390-20,766

52,401

10,00020,831

269,232

243,91420,000(million yen)

-10,000

50,0000Non-consolidated
Consolidated

5,626

100,000

231,123

292,121345,584

150,000

30,000206,487

200,000

50,00040,000234,697

250,000

295,240

300,000

306,663

350,000

344,891

400,000■ Net income(million yen)

28,148■ Operating income
Non-consolidated
Consolidated

42,653■ Net sales(million yen)

2,000
0

Net Income
Shareholders Equity

CSR Report 20112

Message from the President

I would like to oﬀer our deepest sympathy to all those aﬀected by
the Great East Japan Earthquake that struck in March this year. We
sincerely pray for their safety and the earliest possible recovery ofthe disaster-hit regions. NGK Spark Plug Co., Ltd. is determined toextend as much assistance as possible to the victims.

Reinforcing Our Operating Base andAchieving Further Development
This year, NGK Spark Plug Co., Ltd. celebrates its 75th anniversary.
We are aware that our expansion and success to date has been
entirely due to our customers and suppliers, and would like toexpress our warmest gratitude for their kind patronage and support.
At the same time, let me show our profound respect for ourpredecessors for their great endeavor. Our Company has been
engaged in manufacturing based on the philosophy of producing
quality products with participation by all employees, a philosophy
that we have maintained since our founding. We have also proposed
and provided products and services that meet the needs of thetimes, without being afraid of change. In keeping with these two
attitudes, we will continue to pursue further development in the
future.
In the automotive industry, the NGK Spark Plug Group s principal
business ﬁeld, we have seen increasing demand for environmentallyfriendly vehicles, such as fuel-eﬃcient, high-powered compact carsand hybrid cars, reﬂecting the rise in global awareness ofenvironmental preservation and fossil fuel depletion. Automotive
manufacturers are making progress with the development of nextgeneration electric vehicles. To meet such demand, our Company
strives to develop new products of spark plugs and related
component that can eﬀectively improve fuel eﬃciency. In theelectronics and semiconductor industry, we focus on smartphones(multifunctional mobile phones), mobile products, digital consumer
appliances and automotive devices, while looking at tablet terminals

Shinichi Odo

as a primary target for the exploitation of a new market.

President and Chief Executive Oﬃcer

Last year we started to implement our 5th Medium-termManagement Plan, the basic policy of which is to reinforce theoperating base and establish a framework for further development
in light of the NGK Spark Plug Group s vision 10 years ahead into
the future. Under the Plan, we promote an initiative to develop
September 2011next-generation technologies aiming to contribute to the realizationof an energy infrastructure for the near future. As part of theinitiative, we will put our energy into the development of innovative

3

CSR Report 2011

technologies, including a hydrogen energy-related productEco Vision 2015 Initiatives

lineup comprising solid oxide fuel cell (SOFC) and a hydrogenleak detection sensor.

We should never forget the fact that corporate activities have agreat impact on the ecosystems on our planet. In this sense as

Establishment of Our CSR Policy

well, we believe that global environmental problems are acommon issue for all humanity, and that it is imperative for

In April this year, NGK Spark Plug Co., Ltd. established its CSR

companies to address these challenges. As part of such eﬀorts,

Policy, on the basis of the objectives and action guidelines set

we implemented Eco Vision 2010 from ﬁscal 2004 to 2010.

forth in our Corporate Philosophy and Corporate Code of

Although we were unable to accomplish 100% achievement of

Conduct, and made the Policy known throughout the Company.

the Vision, we produced some positive results. In the future,

We will ﬁrst review our compliance and risk management

looking toward the achievement of Eco Vision 2015 stipulated

systems, which form the foundation for corporate activities. If

in April 2011, we will make proactive eﬀorts worldwide to help

shortcomings are identiﬁed, we will visualize them to makeconserve the global environment.

improvements accordingly.
Compliance means adherence to laws and regulations as well as
to corporate ethics. It is therefore our natural obligation toassure compliance. Now that we have newly established the

As a Company That Coexists withSocietyCompliance Policy and set its action guidelines, by ensuring that

We have made various improvements and thereby received

all executives and employees follow these guidelines, I believesocial acclaim. This has enabled us to continue to operatethat we can build up a more sound business structure. To thisoﬀering products and services. By further reinforcing ourend, we work to further improve our in-house education andCompany s strength, I strongly hope that we can keep onawareness-raising

thoroughevolving as an enterprise capable of fulﬁlling customer needs

compliance. We will also share such compliance-related

through outstanding quality and superior service, and growing

information across the Group worldwide to help resolve

as an enterprise that coexists with society.

problems in each country and region.

To realize this hope, we will continue to embrace both change

To smoothly continue corporate activities, it is important toand challenge, while correctly perceiving major changes in

implement strict risk management to deal with risks at an earlybusiness climates, and seeking an optimal balance between

stage. Notably, in the aftermath of the recent devastating

management, society and the environment.

earthquake, Japan has encountered numerous unexpected

Above all, we will strive to oﬀer a working environment in which

circumstances one after the other. The NGK Spark Plug Group

individual employees can enthusiastically enjoy their work.

has also recognized anew how it is diﬃcult to ensure businessGreater employee satisfaction will enable us to oﬀer products

continuity in a disaster situation. Since many business sites ofand services that ensure greater customer satisfaction. Moreover,the Group are located in the Tokai region, we will review ourif we can receive increased recognition through the provision of

scenario to prepare for the occurrence of major earthquakes, forexcellent products and services, it will have a positive eﬀect on

instance, a possible Tokai Earthquake. By strengthening ourour employees awareness and motivation, thus generating adisaster-preparedness, we strive to minimize the possible

virtuous cycle. We aspire to be an enterprise characterized byadverse eﬀect on customers who purchase our products,

such a virtuous cycle.

suppliers from which we procure raw materials, and all otherWe hereby release the CSR Report 2011, which compiles our

stakeholders involved in the supply chain.

activities during ﬁscal 2010. The name and conﬁguration haveactivities,

so

as

to

achievebeen changed from the previous Environmental & Social Report,
since we started companywide CSR activities by establishing the
CSR Promotion Department in April 2010. I look forward toreceiving your unreserved comments and opinions.

CSR Report 20114

Response to Major Disasters

Feature 1

Aiming to be an enterprisethat is sustainable evenin times of emergency
The Great East Japan Earthquake occurred on March 11 this year.
The NGK Spark Plug Group has conducted activities to support thedisaster victims, while working to secure employee safety and business
continuity. The Group has also striven to enhance its preparedness for
future disasters, such as a possible Tokai Earthquake, by strengthening
the system to prevent the spread of damage and to manage the crisis.

Scene from disaster drill in the Head Oﬃce Factory

Response to the Great East Japan Earthquake
Around 14:46 on March 11, 2011, a massive earthquake with amagnitude of 9.0 occurred oﬀ the coast of Miyagi Prefecture. Fivesales oﬃces located in the Kanto region and northward experienced
unprecedented tremors. The houses of some employees of the
Sendai Sales Oﬃce were damaged by the earthquake. In the Tokyo
area, many people were stranded due to failure of the transport

Various Support Activities■ Donations for Relief
Our Group companies in Japan and abroad donated a total of 110
million yen, through the Red Cross Societies in each country, tosupport the earthquake victims and help the disaster-hit areas
recover from the damage.

system in the earthquake.

First Priority Given to Securing the Safety of Life
■ Employee Safety Conﬁrmation
Our company has introduced a safety conﬁrmation system to swiftly
ensure the safety of employees in the event of an earthquake or
Messages of encouragement received
by NGK Spark Plugs (U.S.A.), Inc.

other great disaster.

Charity activities (NGK Spark Plugs SA(Pty) Ltd.)

After the Great East Japan Earthquake, part of our system lost
access to Internet connection. We therefore asked whether
employees were safe or not by telephone, using the emergency
contact network. Within the day of the earthquake, we conﬁrmedthat all 86 employees working at the ﬁve aﬀected sales oﬃces were
safe. In the Tokyo area, we arranged nearby accommodation for
those who had diﬃculty returning home.

■ Provision of Relief Supplies
Komaki Factory invited all employees to oﬀer relief supplies, andcollected about 2,300 unused towels, which were sent to thequake-stricken areas via the Aichi Volunteer Center. NTK CeramicCo., Ltd., one of our Group companies, also collected relief supplies
and sent them out to the aﬀected areas.

■ Emergency Transport of Relief Supplies
In the Sendai Sales Oﬃce area, there was a shortage of food anddaily necessaries in the wake of the disaster. On March 15, we
urgently transported the items set aside for emergencies at our
Head Oﬃce and Komaki Factory, to the Sendai Sales Oﬃce for relief.
These relief supplies were then distributed to victims in theevacuation sites in the surrounding region, as well as to ourcustomers and employees aﬀected by the disaster.

Relief supplies collection activity(Komaki Factory)

Relief supplies (NTK Ceramic Co., Ltd.)■ Recruiting Seminars Held in East JapanFor Ensuring Business Continuity

To

providestudents

in

East

Japan

with

fair

employment■ Establishment of the Emergency Response Liaison Committee

opportunities, we posted the changes in the schedule for our

Fortunately our Group s production facilities did not suﬀer direct

recruiting seminars on our website. These seminars were postponed

damage from the earthquake. However, the disaster made it diﬃcult

to mid-May in Tokyo, and to late May in Sendai for the beneﬁt of

to procure some raw materials and parts. Placing primary importancethose in disaster-hit areas.

on not causing inconvenience to our customers, we established theEmergency Response Liaison Committee to grasp and share■ Social service leave system

logistics,

We have a system to allow employees to take up to 10 days leave

radiographic examinations for products, and so on, across theto do social service (volunteer) activities per year, usually granting 5Group.

consecutive days leave. However, we oﬀer 10 consecutive days

informationon

procurement,

production

systems,

leave for those engaged in volunteer activities to support victims of
the Great East Japan Earthquake. Using this social service leavesystem, two employees worked as volunteers in Sendai City, inearly May and late June respectively.

5

CSR Report 2011

Preparing for Major Earthquakes
Many of the NGK Spark Plug Group s operation sites are located in■ Emergency Drills

the Tokai region, an area vulnerable to three potential major

Every year, the NGK Spark Plug Group implements emergency drills

earthquakes̶a Tokai Earthquake, a Tonankai Earthquake, and a

at each oﬃce/factory. The Group has also organized in-house ﬁre-Nankai Earthquake. Notably, Nagoya City, where the Head Oﬃce ofﬁghting teams, which demonstrate the results of their daily training

NGK Spark Plug Co., Ltd. is located, has been designated both as anin emergency drills and the New Year's parade of ﬁre ﬁghters. The

area for intensiﬁed measures against a potential Tokai Earthquake

divisions that handle hazardous materials carry out training toand as a countermeasure promotion area for potential Tonankai

ensure that no leakages or ﬁre accidents occur or have an impact

and Nankai Earthquakes. We have therefore striven to maintainoutside the company.

preparedness to minimize disaster damage to our business activities,
while at the same time working to strengthen cooperation withlocal communities.
■ Possible source regions of Tokai, Tonankai and Nankai Earthquakes
Kyoto
NagoyaShikoku

Water-discharge exercise by the in-house
ﬁre-ﬁghting team (Komaki Factory)Kii Peninsula

Truck light oil leakage prevention drill(Nagoya Logistics Center)■ Employee Safety Conﬁrmation Drill
Once a year, we carry out a companywide drill involving all staﬀ
Suruga TroughTokai Earthquake
Nankai TroughTonankai Earthquake

Nankai Earthquake

registered on the safety conﬁrmation system, and obtain safety
reports from all members. If problems are identiﬁed through thedrill and actual use of the system, we make improvements to resolvethese problems.
Assuming that the safety conﬁrmation system and communication

Areas for intensiﬁed measures against a Tokai Earthquakelines may become unavailable immediately after the occurrence ofCountermeasure promotion areas for Tonankai and Nankai Earthquakes

an earthquake, we have secured several means of communication

Regions designated both as areas for intensiﬁed measures against a Tokaifor emergency contact, including phone trees.

Earthquake and as countermeasure promotion areas for Tonankai andNankai Earthquakes
Areas for intensiﬁed measures against earthquakes：Regions that require
strengthening of earthquake-damage prevention measures, since these regions
are likely to suﬀer serious damage in the event of a major earthquake.

Various Disaster Prevention Activities■ Earthquake Disaster Response Manual and Awarenessraising Activities

Disaster Prevention Agreements■ Agreements with Local Governments
Komaki Factory has concluded an agreement with Komaki City suchthat, should a major disaster occur in the city, Komaki Factory s inhouse ﬁre-ﬁghting team and ﬁre engine will be dispatched tocooperate in relief activities. Komaki Factory has also participatedin ﬁre drills and similar events organized by Komaki City, as a means

Each oﬃce/factory has created its own earthquake disasterof taking eﬀective action in the event of a disaster.

response manual that describes speciﬁc measures concerning the

Our Head Oﬃce and Factory has signed a memorandum of

disaster prevention system and action to be taken in the event of aagreement with Mitsurugi School District of Mizuho Ward, Nagoya

disaster.

City, where these facilities are located, such that we will provide

We work to maintain disaster preparedness, so that, while giving

equipment and materials in the event of a major disaster.

top priority to the safety of visitors and employees, we can avoid
critical damage to our facilities and to prevent secondary disasters,

Voicesuch as ﬁres and explosions, to ensure
the earliest possible recovery. Moreover,
we have distributed the Fire and Other
Disaster Prevention Guidebook and theAction Guidelines in the Event of a
Major Earthquake
employees,

andincorporated

to allhave
disasterawareness-raising activities
into the training programsfor new employees.
Action Guidelines in the
Event of a Major Earthquake

Fire and Other Disaster
Prevention Guidebook■ Items Stored against Emergencies
Our company has stored and managed drinking water, andAs part of our risk management, disaster prevention activities
have assumed greater importance for enterprises. We need not
only to take action giving top priority to human lives, but also tominimize the inﬂuence on each stakeholder. Since I myself
witnessed the areas ravaged by the Great Hanshin-Awaji
Earthquake 16 years ago, I am keenly aware of the horror of amajor earthquake and the extensiveness of the damage.
However, the Great East Japan Earthquake has caused
unimaginable problems one after another. To ensure that we areable to deal with emergencies calmly and eﬃciently, we will
overcome the problems encountered during and after the recent
earthquake, and will review and further improve our business
continuity management activities. We will also
conduct emergency drills keeping in mind that
we cannot fully imagine worst case scenarios,
and will continue our eﬀorts for future disasterprevention activities.

preserved foods and daily living necessities in preparation for adisaster. We oﬀered part of these stocked items as relief supplies to

Keiichi Matsunari, Director

victims of the Great East Japan Earthquake.

CSR Report 20116

Lineup of Hydrogen Energy Products

Feature 2

Designed for the safe productionof hydrogen and its use
as an energy source
Public expectations are high for the use of hydrogen energy as asolution to global warming issues, since it is free of carbon dioxide(CO2) emissions during use. We work on the development of solidoxide fuel cells (SOFC) and other products for the safe production
FC EXPO 2011

and use of hydrogen.

Renewable Energy Sources and Hydrogenvehicles and for household and commercial purposes. In response

People s lives today are sustained by fossil fuels such as oil andto such a situation, we will develop fuel cells and other products/

natural gas. However, global warming issues, the depletion of fossil

technologies required for the safe and eﬀective use of hydrogen.

fuels, and power supply instability have increased people s interestin renewable energy sources such as solar, wind, geothermal, andlow head hydro power.
Renewable energy sources are present everywhere on the Earthand will be available as long as the Earth exists. However, mostrenewableenergysourcesdependonweather■ Types of hydrogen production methods
and our product lineup
Wind

Water

Solar

＋

conditions.

Hydrogenproduction

Stationary fuel cells(SOFC)

Moreover, it is diﬃcult to adjust the power output they produce.
Consequently, hydrogen has attracted attention as a means for the

Biomass

Micro-tube fuel cells(SOFC)

eﬃcient use of renewable energy sources.

Highly Valuable Hydrogen in Wide Applications

Oil

Hydrogen is produced by water electrolysis. When excess powerfrom renewable energy sources is used to produce hydrogen bywater electrolysis and the produced hydrogen is stored ortransported, it becomes possible to use the produced hydrogen

Natural gas

GAS

Fuel cell vehicle
(FCV)

GAS

Byproducts ofindustrial processes
Hydrogen leakdetection sensor

during other hours of the day or in other places.
Power

Hydrogen production module

Hydrogen production by water electrolysis

Energy generation from hydrogen
Water

Power

OxygenHydrogenHydrogen can immediately serve as a fuel. Moreover, by using fuelcells, which we have also developed, electricity and heat can beproduced from hydrogen. After generating energy, the element
returns to water, without producing carbon dioxide (CO2), nitrogenoxides (NOx) or sulfur oxides (SOx). It is therefore a clean energy
source.

Toward a Society Making the Best Use of Hydrogen
Hydrogen is produced from various resources such as fossil fuelsand biomass (wood chips and residues of crops) as well as water.
This implies that hydrogen can be produced onsite where it isrequired, making it useful for the construction of a dispersed energy
system. Furthermore, if methods of producing hydrogen from wateror biomass become widespread in the future, people s dependence

Voice
Due to interest in the use of hydrogen as an ultimate clean energy
source, a national project commenced some 20 years ago. The
idea already existed of converting renewable energy sources tohydrogen and using it for power generation. In 2002, the Japan
Hydrogen and Fuel Cell Demonstration Project (JHFC) took over
the research, ending it in March 2011 after conducting various
demonstration programs. This year, the industry moved toward
the commercialization of hydrogen. Domestic automakers haveannounced scenarios to reduce the prices of fuel cell vehicles by2020 to a level that permits their widespread use. We haveworked for years on hydrogen energy-related development
themes, as described in this feature article. The Company intends
to make accelerated research eﬀorts in line with the hydrogenenergy commercialization trend, in order to contribute to theimplementation of a low carbon society.

on fossil fuels may decrease.
Before the use of hydrogen becomes popular, it is necessary tosolve problems associated with safety, cost, eﬃciency, hydrogen

Takafumi Oshima

production involving CO2 emission, and storage. Researches are

Senior Managing Director

actively being conducted to address these problems, so as to build

General Manager, Engineering R&D Groupa society that uses hydrogen as an energy source for fuel cell

7

CSR Report 2011

Producing Hydrogen

Toward Improved Conditions for Hydrogen Production <Hydrogen Production Module>

Fuel cell vehicle (FCV) sales will commence in 2015 to general

The current challenge is to reduce the use of the rare metal

users. We are working on the development of hydrogen production

palladium (Pd, the main ingredient of the hydrogen separation

modules for highly eﬃcient production of high-purity hydrogen as anmembrane), which accounts for a large part of the cost of the

FCV fuel.

module. With all our ability, we are working on the development of

Steam reforming method from natural gas is the most popular

an environmentally friendly module that will be well received in thehydrogen production method. The conventional method requires

market.

Voicehigh temperatures of 700ºC to 800ºC to reform natural gas. In
contrast, at 500ºC to 550ºC, the module we have developed
achieves a level of reform eﬃciency comparable to the conventional
method. The secret behind the reform at lower temperatures lies in
the integrated structure of the reforming reaction section and thehydrogen selective separation membrane. The result is a single
module capable of performing both reform (hydrogen generation)

For coming hydrogen energy society in the near future, we alldevelop the hydrogen production module as one. Although wewill face many problems and diﬃculties in the course of thedevelopment, we have to commercialize ourmodule. We want to contribute to constructionof hydrogen energy society through thecommercialization of the module.

and reﬁning (purity improvement) within a compact unit.
Hideaki Hikosaka
Group Leader, Engineering R&D Group
300mm
Hydrogen production module

Using Hydrogen

Contribution to Spread SOFCs to Various Applications <Micro-Tubular SOFCs>

SOFCs greatly contribute to reducing CO2 emissions. We arecells are arranged using two types of paste for electric connection.

working on development of micro-tubular SOFCs, which is compact

This SOFC module can be operated with the power density of 2W/

and has robustness for rapid start/stop, with a view to the use of

cm3 below 650 ºC.

SOFCs in various applications.

Such as a high-eﬃciency energy source, we intend to explore the

The micro-tubular SOFC is the most suitable candidate for low

applications in distributed power supply systems, including auxiliary

temperature operation and rapid start/stop. However, there are

power units for automobile, portable power units, household

many problems for realization of useful output power. We have tocogeneration systems and so on.

accumulate the large number of micro-tubular cells with electric

Voiceconnection, gas sealing etc, and we have to need manufacturing
techniquesarisingfromtheminiature

parts

and

complex

conﬁguration.
Our palm-sized SOFC module is crammed 360 tubular cells whichare 2mm in outer diameter into 150cm3 volume and these tubular

High-density
integration of
360 tubes

We are promoting the development of micro-tubular SOFCs in orderto realize the SOFC units with quick start/stop operation, highperformance, and high endurance.
In order to achieve a practical level of fuel cell durability, we do needto solve a lot of problems. However, we hope that our products will
be used in a wider range of applications as
auxiliary or mobile power units inconjunction with secondary batteries.

Development staﬀ
Micro-tube cell

SOFC cell module

Providing Protection from Hydrogen

Early Detection of Slight Leaks <Hydrogen Leak Detection Sensor>

Our eﬀorts are also directed toward the development of an MEMS

to fuel cell powered forklifts. Furthermore, we plan to install thethermal conductivity hydrogen leak detection sensor that is suitabledetector in fuel cell vehicles projected to be mass-produced startingfor the prevention of and safety regarding hydrogen leaks from fuelin 2015.

cells.
Public expectations are high for fuel cells as a next-generation

Silicon MEMS
element

power generation system. However, one problem they entail is how
to ensure safety regarding leaks of the fuel or of hydrogen. Demandis high for a hydrogen leak detection sensor.
We are working on the development of a thermal conductivity

Hydrogen leakdetection sensor
exterior

Voicehydrogen leak detection sensor. This is a microminiature sensing
element comprising a micro heater with a diaphragm structure,
which makes use of silicon MEMS technology integrated with atemperature

sensor.

It

detectsminutechangesinthermalconductivity (the cooling eﬀect of hydrogen), making use of the highthermal conductivity of hydrogen. The detector has electronic
circuits incorporating a 16-bit microcontroller provided with an

We want to play our part, even if slight, in helping to solve
environmental issues by successfully meeting the remaining
challenges and commercializing the detector. One of ourdevelopment goals is for all automakers to
select our detection sensor when their fuelcell vehicles come into widespread use.

accurate sensing algorithm for micro heater and temperature sensor
signals.

Development staﬀ

Our future eﬀorts will focus on exploring the detector s applications

CSR Report 20118

Management

CSR of NGK Spark Plug Group
Corporate Philosophy(Adopted in November 1996)

Three elements constitute our corporate philosophy.

Corporate
Philosophy［ Slogan ］
With established trust and conﬁdence inside andoutside the Corporation, we aim to contribute to
the peoples of the world by creating and puttingat their disposal new values for the future.

2

3Management
Policy1

ActionGuideline

Commitment

1 ┃ Commitment
With full use of the most suitable technology and our accumulated experience,
we continue striving to oﬀer new values to the people of the world.
● Contribution to Society● Technology and Customer Orientation

We believe it our mission to oﬀer people new values

We aim to be a leading company that continues towith the excellence of quality required for the time.

develop and oﬀer original and creative products at
the right time.

● Activities in the Global Perspective

We challenge new ﬁelds using our experience gained

We aim to become a company loved and popularin the ceramic business.

among people all over the world through our global
operations.

2 ┃ Management Policy
We oﬀer a working environment in which each one of us is encouraged
to make full use of his or her personality and capability.
With all our power we are dedicated to pursue management based on trust and conﬁdence.
● Respect for Personality and Capability● Management based on Trust and Conﬁdence

For sound development of business we create a

Our company has been supported by a large number

corporate climate for our employees to utilize theirof people connected with us.

personality and capabilities at their optimum level.

All the trust and conﬁdence we have enjoyed is ourAngreat asset.

excellentenvironment

createstheoriginaltechnology which is the most important, and fosters

We read the trend of the times to keep one step

the formation of a rich personality.

ahead. We intensify further the trust and conﬁdence● Concentration of All Our Power

in us by honest management.

The activities of individuals are organized eﬃciently
to carry out strategic management.

3 ┃ Action Guideline
Ever onward ! Always mindful of what is the best course, we swiftly put it into action.
● Positive Advance● For the BestNot content with things as they are, we always makeSetting our mind at all times to what is the best, we

an attempt to achieve new objectives. We are

try to advance and improve ourselves.

convinced that a continual and positive stanceconstitutes our driving force.

● Speed in Action
We keep up with changes with the right judgment
and speedy action.

9

CSR Report 2011

Management

CSR＊1 Concept
We view CSR not just as a responsibility but as ansupporting activities in the local community, such asopportunity to be accountable through review of thetraﬃc safety campaigns. Whereas CSR activities wereNGK Spark Plug Group s economic, environmental andpreviously dispersed among various departments, thesocial activities from a global perspective, to enhance

CSR Promotion Department established in April 2010 iscorporate value, and to contribute to the sustainable

now spearheading corporate-wide CSR activities. Also indevelopment

ourApril 2011, in line with the Corporate Philosophy andCorporate Philosophy. Our wide-ranging CSR activities

Corporate Code of Conduct, we established our CSR

includecustomers,

Policy, which comprises 10 policies, such as thedisclosing corporate information to shareholders andProcurement Policy and others. On the basis of these

the wider investor community in an optimal and easy-to-policies, we intend to review and promote CSR based

understand manner, collaborating with suppliers foron a multifaceted approach into the future.

ofoﬀeringsocietyinexcellentaccordance

products

to

with

＊1
ＣＳＲ
Corporate Social
Responsibility

mutual development, establishing a safe and employeefriendly working environment, and participating in and■ CSR Promotion Mechanism

Enhancement of Corporate Value
Corporate Philosophy
Corporate Code of Conduct
CSR Policy

・ Risk Management Policy

・ Procurement Policy

・ Compliance policy・ Human Resource Policy

・ Information Security Policy

・ Occupational Safety

・ Corporate Quality Policyand Health Policy

・ Information Disclosure policy ・ Social Contribution Policy
・ Environmental Policy＊The above policies are presented on each relevant page.

Promotion of CSR

CSR promotion organizations
CSR Committee

CSR Promotion Department (secretariat)

CSR Promotion Sub-Committee

Quality
Committee

Safety and
HealthCommittee

Environment
Committee

Conﬁdentiality
Management
Committee

ExportControlCommittee

Compliance

Risk
Management

Information
Disclosure

Human
RightsSocialContribution

CSR
Procurement

CSR Promotion System
We established the CSR Committee and the CSR■ Progress in our CSR

Promotion Sub-Committee after reviewing the previous

Nov. 1996 Adopted Corporate Philosophy

committee organizations. The CSR Committee oversees

Feb. 1998 Adopted Corporate Code of Conduct

and evaluates the CSR-related activities implemented by

Apr. 1998 Established Ethical Committee

the respective committees, working groups and divisions,Feb. 2003

and makes appropriate proposals regarding them, toachieve total optimization of CSR activities, thereby
strengthening

ourbusinessfoundation.

The

CSR

Nov. 2004
Apr. 2005

Promotion Sub-Committee holds discussions on speciﬁcthemes, such as compliance and information disclosure,and develops countermeasures. The membership of the
CSR Promotion Sub-Committee also includes secretariat

Aug. 2005
Jan. 2007

Adopted Corporate Ethics Helpline System
Operation Guidelines
Revised Corporate Code of Conduct
Published Code of Conduct Guidebook
Published Guidelines on the Handling of
Personal Information
Established Export Control Committee
Adopted Export Management Regulations
Published Conﬁdentiality Management
Guidelines
Adopted Conﬁdentiality Management
Regulations

staﬀ from the Quality Committee and other existing

Feb. 2007

committees,

Sep. 2008 Established Internal Audit Department

so

as

to

establishacompanywide

promotion system. We also promote activities toApr. 2009 Prepared Corporate Protection Manual

disseminate our CSR to all employees, who are

Apr. 2010 Inaugurated CSR Promotion Department

encouraged to participate in study meetings lectured by

Oct. 2010 Established CSR Committee

experts invited from outside the company.

Apr. 2011 Adopted CSR Policy

CSR Report 201110

Management

Corporate Governance＊1＊1
Corporate Governance
Refers to the process or
systems to oversee thata company is managed
by the business
operator in an optimaland sound manner.
＊2Internal Control Report
SystemIn 2006, the former
Securities and Exchange
Act was revised andrenamed the Financial
Instruments andExchange Act. Underthe revised act, listedcompanies are required
to submit internal
control reports every
ﬁscal year, to be subject
to audits by certiﬁed
public accountants
or auditing ﬁrms, inorder to improve thetrustworthiness ofﬁnancial reporting.

Basic Philosophy
We believe that it is our foundational and important managerial task to establish and maintain a fair and eﬃcientmanagement system, while securing soundness and transparency in management, in order to enhance corporate value
by fulﬁlling our corporate social responsibilities.

Management Organization
The Board of Directors deliberates and makes decisions
onmatters

stipulated

bylawsand

Our Board of Auditors consists of four auditors (two ofimportance,

andwhom are external auditors). These auditors attend thesupervises the state of business execution by eachmeetings of the Board of Directors and, if necessary,

director. To swiftly understand situations and respondvarious committee meetings, to grasp the state of

to environmental changes, we have set up the Managing

important

Director Committee and Group Manager Committee, to

execution of duties, through audits of major oﬃces andprovide venues for active discussions among directors.

subsidiaries.

management-related

by

laws

mattersoforissues.

They

also

supervise

directors

At the meetings of these committees, discussions areheld regarding subjects that are clearly classiﬁed into
items to be decided, consulted, and reported.

Internal Audits
The internal audit division reports to the management■ Corporate Governance System
General meeting of shareholders

Management Oversight
Functionsthe results of inspections through business auditing of
NGK Spark Plug Co., Ltd. and its aﬃliates, and if necessary,
Board of auditors(Appointment/dismissal)

makes proposals on how to correct its problems and(Cooperates mutually)

improve its business operations. In accordance withAccounting auditors

requirements for the internal control report system＊2
under the Financial Instruments and Exchange Act, the(Audit)(Appointment/dismissal)

Various conferences and committees

Board of directors(Indication)(Appointment / dismissal)(Indication)(e.g., CSR Committee)(Audit)Business operating section

President(Cooperates
mutually)

regarding ﬁnancial reporting, to secure the reliability of
the Group s ﬁnancial statements, thereby maintaining(Indication)

Managing directors (Indication)committee

department assesses the validity of internal control

Internal audit dept.

and improving our internal control.

Administration director in charge(Disclosure)

Risk Management ＊3＊3
Risk Management
Activities tosystematicallymanage various risks
related to business incorporate management.
Speciﬁcally, activities toprevent risk occurrence,or reduce the damage
incurred when a riskarises.

Basic Philosophy＊4
BCP
Stands for BusinessContinuity Plan. A planof action to be taken
by a company when arisk arises, to ensurebusiness continuity
and minimize impact
on customers andsuppliers. Activities tocontinuously improveand manage this plan
are called BusinessContinuity Management(BCM).

Review of Business Continuity
Plan (BCP＊4)

11

CSR Report 2011

In operating business, we face many risks including
natural disasters, accidents, terrorism, and the spread of
new infectious diseases. If an unforeseen incident
occurs, we will act giving top priority to the protectionof human life. We have also made contingency plans sothat we can smoothly continue our business operationeven under such circumstances.

Drawing lessons from the Great East Japan Earthquake,we swiftly reviewed and reaﬃrmed our business
continuity plan (BCP). We work to further strengthen
coordination within the Group and with our suppliers, toensure that, in the event of an emergency, we canresume major businesses and important activities torestore operations to the normal level within the target
period.

Risk Management Policy
We are prepared to deal with various possible
risks, such as natural disasters, accidents andspread of new infectious diseases. If such a risk
should arise, we will act to minimize the impact on
our stakeholders. We also work to restore andcontinue smooth business operations, thereby
maintaining trust from our stakeholders.

【Action Guidelines】● We strive to prevent factors that could aﬀectbusiness continuity.
● We conduct our activities with top priority on theprotection of human life.
● We minimize impact on related parties.
● We strive for rapid restoration of business
operations and stable supply of products andservices.
● We take measures to prevent the recurrence ofrisks.

Management
Risk Management

Response to New Infectious Diseases
Voice

On April 2011, the inﬂuenza virus (A/H1N1) thatemerged in 2009 was reclassiﬁed as a seasonal ﬂu virus.
However, as part of our eﬀorts to protect the good
health of our employees, we will continue measures toprevent general ﬂu infections and endemic spread of the
ﬂu. We also place importance on sharing correctknowledge about inﬂuenza and its latest trends among
all employees, so that eﬀective countermeasures can betaken in the ﬂu season.
This year, we are preparing countermeasures taking into
account the emergence of novel forms of ﬂu viruses,
such as H5N1 avian ﬂu.

We aim to be able to take appropriate action evenagainst the emergence of a new variant of the H5N1
avian ﬂu virus, which is said to be the strongest of its
kind. We have compiled a set of information on
endemic diseases in developing countries and tropicalregions, to help ensure the good health of expatriate
employees and their families, as well as other
employees who will travel or be temporarilytransferred to such countries. The endemic disease
information has been disseminated across the Group,
including to overseas business sites. We hope thatGroup employees will ﬁnd
the information useful.
Inﬂuenza Team
Healthcare Support Section
Personnel Department

Compliance＊1
Basic Philosophy

Compliance Policy

We work to increase awareness among employees
regarding compliance to act in a socially sensible
manner, helping them to bear in mind that our enterpriseis a member of society.

Compliance Promotion System

We acknowledge that our company is a member ofsociety. In the light of this, we enhance corporate
ethics, comply with laws and ordinances,international rules, and company regulations,striving to become a company trusted by theinternational community.

【Action Guidelines】
The Compliance Working Group has been established● We comply with all relevant laws and ordinances,to raise compliance awareness among executives andthe Corporate Code of Conduct, and company

employees and thereby reducing relevant risks. We will

＊1
Compliance
In general, the termcompliance means to
act in accordance withlaws and regulations.
However, in a broad
sense it can also mean
to act in accordancewith the corporate
philosophy andcommon sense.

regulations.

encourage education and awareness about corporate● We regularly educate and raise the awareness of

ethics and promote full compliance with laws andall our employees to impart a high-level of ethics

ordinances, social rules and company regulations.

and correct knowledge, with which they can act
voluntarily to prevent compliance problems.

Education andAwareness-raising● Should a problem occur, we will promptly deal
with the problem and fulﬁll our accountability,
and will strive to identify the causes and prevent
recurrence.

We deliver on-site seminars regarding business andlegal aﬀairs, according to the requests of each workplace.

Voice

Through such seminars, employees can become awareof the importance of business and legal aﬀairs and takean interest in them. This will result in reducing not only
risks to individual employees, but also risks to ourcompany.
We also hold compliance lectures during level-speciﬁctraining programs, in which familiar examples are used
to foster trainees better understanding.

We deliver on-site seminars tailored to the needs andconvenience of trainees, according to the requests ofeach division. Since there are many diﬀerent ﬁelds andareas of law, naturally we cannot cover all legal aﬀairs
within a few hours. However, I hopethat the on-site seminar we deliverat each workplace will help trainees
deepen their understanding of andinterest in the ﬁeld of law.
Yuichi Shimizu
General Administration Department

CSR Report 201112

Management
ComplianceCorporate Ethics Helpline
We have set up an internal reporting system called theby employees and other informers who have discovered

Corporate Ethics Helpline, to prevent illegal activities

an illegal act or a possible illegal act, in order to provide

and to swiftly resolve problems related to corporate

information and seek consultation. We strive to create

ethics.

an environment from the informer s viewpoint in which

We set up reporting and consultation channels within

it is easy for them to consult, by clearly announcing thatand outside the company. These channels can be usedthe conﬁdentiality of all informers is protected.

Export Controls
To maintain international peace and security, Japan has

and to improve trade eﬃciency, while fulﬁlling our

imposed legal regulations on trade that may assist the

responsibility as an enterprise with a high export ratio.

occurrence or expansion of conﬂicts. NGK Spark Plug
Co.,

Ltd.

has

stipulated

its

Exportrestrictions, and has established a system that can＊1
Authorized Exporters
ProgramUnder this system,
customs approves
exporters who are
excellent in legal
compliance as
authorized exporters,
and give them
preferential treatment.
This system is intended
to speed up customs
clearance procedures
and strengthen security
measures. Since theapproved enterprises
can proceed throughcustoms clearance
procedures more
speedily and reliably,
they can also expect
shorter lead-times andreduced logistical costs.
＊2
Unfair Competition
Prevention Act
This law is intended toensure fair competition
among business
operators. Under
this law, operators
business reputations
and conﬁdentiality areprotected. The law
prohibits the acts ofillegally acquiring, using
or disclosing trade
secrets.
＊3
Act on the Protection of
Personal Information
The objective of thislaw is to protect therights and interests ofindividuals while taking
into consideration theusefulness of personal
information. This law
prohibits such acts
as using personal
information about aperson for purposes
other than the intended
purpose, without theperson s consent.

13

CSR Report 2011

ﬂexibly deal with regulation revisions. In June 2008, wewere approved as an authorized exporter under the
Authorized Exporters Program＊1, in recognition of oureﬀortsinestablishingsecurity

Voice

Management

Regulations to ensure thorough compliance with export

management

andcompliance systems.
We continue to promote export controls and traderelated business in compliance with laws and regulations

For a company with a high export ratio, appropriate
export management is indeed a matter of vital
importance. With this in mind, we are always earnestly
engaged in export management activities. As asecretariat member, I strive to provide detailed
explanations to the employees of
each
workplaceabout
theimportance and necessity of export
management, so as to obtain theirunderstanding and cooperation.
Hiroki Inui
General Administration Department

Security Control /Information Security

W

Recent years have seen the development of legal
systems, such as the Unfair Competition Prevention
Act＊2 and the Act on the Protection of Personal

Information Security Policy

Information＊3, which strongly require companies toproperly manage conﬁdential information.
To sustain and develop our business in a sound manner,
weestablishedtheConﬁdentiality

Management

Regulations, as part of our endeavors to appropriately
manage the private information of our company,
customers and suppliers, and to meet the need of an
information-oriented society. Our Privacy Policy is

We regard our own information assets as one ofour management resources. Through theprotection and eﬀective use of our information
assets, we pursue healthy maintenance anddevelopment of our business.

【Action Guidelines】● We establish information security regulations
that clearly deﬁne the system and responsibilities

available on our website.

to protect all the information assets we keep for

Privacy Policy
http://www.ngkntk.co.jp/english/privacy.html

ourcustomers,

ourinformation

assetsasinformation resources, and personal data.
● We comply with laws, ordinances, and regulations
regarding information security.
● We educate all executives and employees whoIntellectual Properties

handle information assets about the importanceof information security, and about speciﬁc items

To protect its existing and newly developed products,

to be observed.

NGK Spark Plug Co., Ltd. takes measures to actively● We continuously implement measures necessaryacquire intellectual property rights. We investigate andto improve the management system and to

conﬁrm third party intellectual property rights in all

protect our information assets, keeping pace withproduction

processes

from

the

early

stagesofdevelopment to mass production, to avoid the risk of
infringing the intellectual property rights of third parties

a rapidly-changing information society.
● If a problem with the information security systemispredicted

to

occur

due

to

unforeseen

circumstances, we will promptly take action toor violating laws and ordinances. Furthermore, level-

prevent an accident associated with the problem.

speciﬁc training programs on intellectual property rights

Should the accident occur, we will strive toare held, mainly for engineers and technicians of ourminimize

company, in order to raise employees awareness.

measures against reoccurrence.

thedamageandtakepreventiveSocial Report

With Our Customers

15

With Our Shareholders
and Investors

18

With Our Suppliers

19With Our Employees

20With Local Communities
and International Society

26

CSR Report 201114

Social Report

With Our Customers
Basic Philosophy

Corporate Quality Policy

Under the continuously evolving business environment
surrounding our Group, customers quality demand isalso becoming stricter and more complex. Against thisbackdrop, companies are increasingly expected to fulﬁll
their corporate social responsibilities, by sincerely
listeningtocustomers

opinions,

adequately

andpromptly responding to a wide variety of requests andissues,andmeeting

diverseexpectations

fromcustomers.
To appropriately understand the diverse needs of

We continue to supply Quality Products tosociety with an emphasis on Customer First,
Total Involvement, and Continuous Improvement
principle.

【Action Guidelines】● We strive to take a customer-oriented approachto accurately understand a wide variety ofcustomers needs and provide quality products
and services, aiming to ensure greater customer
satisfaction.

customers and promptly take necessary actions from● We encourage all our employees to be actively

the viewpoint of customers, we at NGK Spark Plug Co.,

involved in quality improvement activities, based

Ltd. are committed to making companywide eﬀorts toon companywide cooperation, and to achieve

improve our quality assurance system, aiming to provide

higher goals by making the best use of their own

safe and reliable products that ensure greater customer

individual abilities and creativity to address
problems and challenging issues.

satisfaction.
To meet customers

diverse expectations, we also

continue actively communicating our products andservice information to customers, while at the sametime manufacturing products by making the best use of
the most suitable technology and our accumulated● Accurately responding to ever changing social/market environments and the diverse needs ofcustomers, we strive to continue improving oursystems, processes, products and services, aiming
to further grow as an energetic and soundcorporation.

experience as a manufacturer. Through these eﬀorts, wewill work hard to oﬀer new values to society.

Quality Management System
Since its establishment in 1936, we at NGK Spark Plugrisks, aiming to oﬀer safe and reliable products that

Co., Ltd. have maintained theensure greater customer satisfaction.

Nittoku quality mind,

which represents our basic policy concept. This mind isreﬂected in the corporate quality policy revised in
2006.
Based on our corporate quality policy, each businessdivisionhasestablishedanappropriate

Quality Committee

quality

management system in conformity with the ISO9000
seriesand

ISO/TS16949

standards,

implementing

Quality Control
Division

quality assurance activities.
In addition, aiming to reinforce our companywide quality
assurance eﬀorts, we set up the Quality Committee and
the Quality Control Division in 2010 and strengthened
coordination among quality assurance sections ofrespective business divisions, thereby establishing a

Automotive
Components
Group

Communication
Media
Components
Group

Technical
Ceramics Group

Quality
Assurance
SectionQuality
Assurance
SectionQuality
Assurance
Sectioncompanywide system to control and oversee productquality. Under this system, the Quality Committee strives
to identify quality-related risks from a companywide
perspective and take preventive measures against such

Voice
Since its establishment, our company has been
engaged in the manufacture of high quality
products with our uncompromising spirit andour corporate quality policy of the Nittoku
quality mind.
The ultimate purpose of our quality policy is toprovide safe, reliable, high quality products toour customers, ensuring that they maintain theirtrust in our products.

15

CSR Report 2011

In accordance with our corporate quality policy,
we are striving to further improve the quality ofour products through our quality assurance
system based on companywide cooperation.

Toshiki Sawada
General Manager
Quality Control DivisionSocial Report

Quality Improvement
NGK Spark Plug Co., Ltd. is committed to quality management by promoting total quality management (TQM＊1)
activities.
●Top-down activities to embody our corporate policy in the policy management.
●Daily management to standardize prescribed operations at each workplace,as well as maintenance and improvement activities.
●Bottom-up activities to foster human resources and activate workplaces,by encouraging small groups to conduct quality and business improvement activities.

＊1
TQM
Total Quality
Management is anoperational method andmanagement techniquethat contribute to
the improvement ofoperational quality in anenterprise.

■ NQC Activities (Small Group Activities)
We promote NQC Activities, which refer to QC circle

activities.

activities＊2 that aim to develop human resources andimprove

workplacecapabilities

by＊2
QC Circle Activities
QC stands for quality
control. Small groups
are formed within theworkplace to encourage
autonomous handlingof such issues as safetymeasures, reduction of
faulty products, as wellas quality improvement
and quality control ofproducts.

continuously

addressing various problems and issues.
During Quality Month every November, the results of
NQC activities are announced at the central presentation
meeting, and the President Award is granted inrecognition of best practices. Commendation is also
given to small groups implementing excellent NQC
activities in daily operations. By encouraging employees
to participate in presentation meetings and training
programs outside the company, we strive to enhancetheir motivation and further activate small group

NQC activity central presentation meeting■ Education/Training
We provide a wide variety of QC education and training

materials by conducting continued quality improvement

programs about quality control, management techniques,eﬀorts.

QC circle activities, quality management systems,
measurement

management,

etc.

To

ensurethatknowledge gained through these programs is utilized in
the workplace, we also oﬀer practical guidance andsupport to our employees. As part of our activities toenhance quality awareness and motivation of employees
as well as to promote quality education, we hold such
events as process patrol by the President, quality-related

Quality training

exhibitions and lectures on quality.
We also provide practical guidance to our suppliers topromote quality education and solve problems, aiming
to encourage them to deliver higher quality parts andSupport programs for suppliers

Voice
The teamwork of my QC circle is quite strong. In inroom or onsite discussions, my QC circle members,
irrespective of age, actively and frankly voice theirown ideas and thoroughly examine our activities
according to our QC circle action plan and policy. We
have actively worked together through NQC activities
and successfully increased our awareness of productsafety, which I believe resulted in our receiving thePresident Award. I will continue focusing on daily
communication with other circle members and stay
actively involved in our NQC activities.

Takamasa Takahashi
Secret Circle
Miyanojo Manufacturing Department
Spark Plug Division

Voice
I am involved in the ﬁnal manufacturing process of
spark plugs, being in charge of the visual inspection ofﬁnished plug products. Because products that havepassed our inspection process are then put on thecustomers, I make it a rule to have them strictly
inspected, believing my duty to be something likethe last bastion of quality control. However,humans do make mistakes. We can reduce mistakesby discussing what problems exist in our daily
operations and how they can be solved, which I
believe results in reliable quality products. I willcontinue to exercise my utmost concentration toinspect product quality, instead of following myhunches and/or practice, so as not
to overlook any slight abnormalities
that may aﬀect the quality of our
ﬁnished products.
Yuko Yonezawa
Head Oﬃce Manufacturing Department
Spark Plug Division

CSR Report 201116

Social Report
With Our Customers

Communicating Information to Customers

W

We recognize that it is our responsibility to provide■ Exhibitions at Expositions and Events

customers with correct and appropriate information, so

To directly explain to customers about our products andthat customers maintain their trust in the safety andtechnology, as well as to accurately understand the everreliability of our products and services. To fulﬁll thischanging needs of customers, we have exhibited our

responsibility, we have established various systems to

products at various expositions and events. In ﬁscal

communicate product & service information to our2010, we exhibited at expositions for automobile,

customers. We have also exhibited at a wide variety ofsemiconductor and fuel cell products. We also exhibited

expositions and events to further promote communicationa booth at a motor race venue where we gave a lecturewith customers.

on spark plugs.

■ Plug Studio
Our

website

named

Plug

Studiodisseminates

information on spark plugs, exhibitions at events, motor
sports, etc. Using our applicable product number
searching system, users can ﬁnd a product number andthe number of spark plugs applicable to the respective
type/model of automobile.

FC EXPO 2011

Automotive Engineering
Exposition 2011

Lecture on Spark Plugs
at the 2010 MotoGP

PR Booth at the Suzuka 8 hours
Endurance Road Race

Plug Studio
http://www.ngk-sparkplugs.jp/english/index.html■ Responding to Inquiries and Complaints
Inquiries and complaints on our products received from
customers are ﬁrst accepted at our sales division. Thenthe quality assurance division works together with thetechnical division to quickly respond and take necessary
actions to the inquiries and complaints.

I am involved in the onsite provision of plug-related
services to our spark plug users at national racing
championships and various other auto races
conducted throughout Japan.
To improve the brand image of NGK spark plugs, I
provide plug-related services almost every weekend
at snowmobile races in snowy areas in winter, theMotor Grand Prix in spring, the Suzuka 8 hours
Endurance Road Race in summer,
and the Formula 1 Japan GrandPrix (F1) in autumn.

CustomerInquiry/complaint

Reply

NGK Spark Plug Co., Ltd.

Sales division

Qualityassurance
division

Voice

Technical
division

Hiroshi Nakao
Manager
Domestic Sales & Marketing Department┃Important Notice┃ W
Regarding Room Type Humidity/Temperature
Detectors and Room Type Humidity Detectors

agencies that we take protective measures free ofWe have found that some of the room type humidity/

protective measures for 185 units out of some 500

temperature detectors and the room type humidity

target detectors.

detectors sold from 1987 to 2007, which are not

Although we have received no accident reports

equipped with fuses, may be subject to thermal

regarding our products as of the end of June 2011,

damage caused by an excessive current to equipment

several accidents have been reported with regard todue to aging degradation of electric components.

similar products sold by other companies. Upon

Therefore, we started giving an announcement about

hearing such reports, we have decided to continue

the possibility of such thermal damage on tradegiving the announcement to ensure our customers

journals of the construction industry and our website

safety.

in April 2010. We have also announced through sales

17

CSR Report 2011

charge for aﬀected users. So far, we have taken such

Social Report

With Our Shareholders and Investors
Basic Philosophy

Information Disclosure Policy

We at NGK Spark Plug Co., Ltd. are well aware that
Aiming to become an enterprise capable ofreceiving great support and popularity frompeople around the world, we strive to conducttransparent
business
operations
andfair
information disclosure.

promoting transparent and fair information disclosure isindispensable to having all our stakeholders better
understand and evaluate our business operations. To
achieve this goal, in addition to meeting the legal
standards of information disclosure, we also strive tostrengthen information disclosure through various media【Action Guidelines】● We disclose any corporate information required

and promptly post information on our website, with theaim of ensuring stakeholders

to be disclosed by the Financial Instruments andgreater trust in our

Exchange Act and other laws and regulations, inbusiness operations.

an accurate and timely manner.
● We actively disclose our corporate information,

Investor Relations

which is not subject to laws and regulations

http://www.ngkntk.co.jp/english/ir/index.html

however deemed to be important for stakeholders,through our daily actions, such as issuance of apress release and updates of our website.
● We focus on enhancing communication with ourshareholders, investors and other stakeholders tofurtherpromotemutualunderstanding

with

them.

To All Our Shareholders(Japanese only)

Annual Report＊1
IR Activities
Investors Relations
involves communicating
detailed information
about our management,
ﬁnances and results.

Shareholders Meeting

IR Activities＊1

Each June, we hold our Ordinary General Shareholders

We in the NGK Spark Plug Group recognize that it is

Meeting, at which we explain the business results of theimportant for us to establish healthy relationships withprevious year to our shareholders, who then vote on the

our shareholders and investors to receive their support

matters to be resolved. The stock distribution of NGK

for the continuous development of our business

Spark Plug Co., Ltd. is shown in the pie-chart below.

operations and to create new corporate value. In light of
this, we conduct IR activities to provide our shareholders
andinvestors

withinformation

on

the

business

environment surrounding us, our business performance,and our strategies for future growth. We also periodicallyhold presentations for domestic and international
analysts/investors,

aimingtopromotefurther

communication with them.

Ordinary General Shareholders' Meeting in 2010.
Earnings presentation■ Stock Distribution
Shareholders by category┃PICK UP┃

Ratio of Held Stock
5.16％
25.64％

15.55％

Total
15,715
investors

We were selected for the eighth year in a row (asTotal
229,544,820
sharesof June 2010) to be a member company of the
FTSE4Good Global Index,＊3 the leading SRI index in
17.41％

94.86％

29.15％

Financial Institutions
Shareholders Involvedin the Trust Business
Financial Commodity Traders
Other Domestic Organizations

Selected to be a Member of the Social
Responsibility Investment (SRI＊2) Index

0.81％
6.28％
Foreign Organizations/
Investors
Individuals and Others
Our Own Shares(as of March 2011)

the world. We will continue
ourconcerted

becomeaneﬀortstoenterprisecapable of wining the trustof investors.

＊2
SRI
Social Responsibility
Investment refers to
the type of investment
approach. Under SRI,
investors select acompany they would
like to invest in by
not only analyzing acompany in terms of
its ﬁnancial aspects
such as proﬁtability andgrowth potential, butalso comprehensively
evaluating thecompany based on its
environmental eﬀorts/social contribution
such as its compliancewith laws &regulations, responseto employment
conditions and humanrights problems, andcontribution to society/local communities.
＊3
FTSE4Good Global
Index
A responsible
investment index
developed andmanaged by the FTSE
Group (UK). Evaluation
criteria for selecting
a member company
include environmental
issues, human rights,
supply chain labor
standards, bribery
prevention, climatechange, etc.

CSR Report 201118

Social Report

With Our Suppliers
Basic Philosophy

Procurement Policy

It is indispensable to establish healthy partnerships with
our suppliers to procure better raw materials and partsin a more timely and stable manner. Through our supply
chain system, we work hard together with suppliers,
aiming at mutual prosperity and further strengthened
mutual trust.

New Organizational System

We aim to realize globally optimal procurement
based our quality products principle. To this end,
we focus on strengthening cooperation with
suppliers and promoting our CSR eﬀorts throughout
our supply chain system, while at the same time
striving to carry out proper purchasing transactions
when procuring materials and parts, based on thefollowing guidelines:【Action Guidelines】
Aiming to strengthen mutual trust and relationships with
suppliers and incorporating our procurement policy into

● We conduct rational transactions based on fair,transparent, and open competition.

our supply chain, we at NGK Spark Plug Co., Ltd.

● We select a supplier based on comprehensive

conducted an organizational reform of our procurement

assessment of its product quality, technology,

division,

prices, deliveries, and eﬀorts to continuously

under

the

catch

phraseofChange&make improvements.

Challenge!

● Aiming to become a good corporate citizen, we■ Organizational Chart of our Procurement

are engaged in business operations complying

Headquarters

with applicable national and international laws
and regulations.

Procurement
Headquarters● We ensure stable procurement of better quality

Strategic Planning
Department

products at a reasonable cost and an earlierdelivery.

Planning &Administration Section
Supplier Relations &Development Section● Aiming to procure more eco-friendly products,
we strive to promote our green supplier system.

Procurement
Department● Aiming to have our suppliers understand ourcompany, we strive to establish mutual trust with

Materials
Procurement
SectionEquipments
Procurement
SectionOverseas &Development
Procurement Section

Components
Procurement
Section＜Priority Issues of Our New Organizational System＞

W eb
Green purchasing
requirements

suppliers can be good partners for each other,
we strive to realize out mutual development.

・ Cross-sectional information sharing on business/purchasing strategies among respective businessdivisions・ Centralized management of information on our
suppliers and their purchase data
・ Strengthening of the overseas procurement function
and the procurement development function
・ Restructuring of our frameworks and systems for
supplier support, evaluation and auditing＊1
CSR Procurement
CSR procurement is acontinuous purchasing
and procurement
practice, requiring
suppliers to comply
with procurement
criteria in terms of social
responsibility activities.
The CSR procurement
criteria include humanrights, work conditions,as well as workplacesafety and health, etc.

our suppliers. Recognizing that we and our

Sharing Corporate Policy
We hold a corporate policy seminar to our main
suppliers, oﬀering them an opportunity to deepen theirunderstanding of the present situation of our company
and our goals.
At the seminar held in May, 2010, explanation was given

・ Promotion of CSR procurement＊1

about our business performance, the ﬁfth medium-term
management plan, as well as respective division s policy

Voice
The task of the procurement division is not limited toresponding to the purchasing needs of ourmanufacturing and technical divisions; it is also an
important mission to become a product manufacturing
partner of these divisions, thereby realizing the mostsuitable procurement system for our company as awhole. To this end, we also have to build suitable andhealthy business relations based on mutual trust with
our suppliers. I am conﬁdent that building partnerships
both within and outside our company is sure tocontribute to the further development of our company
and our suppliers.
Aiming to achieve these goals, the Procurement
Headquarters will strive to promote our CSR
procurement activities, ensuring
our suppliers understanding andsupport for us.

under the plan. We also showed the direction to betaken by our company, reaﬃrming that we would workwith suppliers to overcome the current severe businessenvironments. In addition, we requested our suppliers
to take responsible actions to appropriately control
substances of environmental concern, promote quality
improvement and cost reduction, and facilitate CSR
activities.

Takeshi Nakagawa
Managing Director
Procurement Headquarters
Corporate policy seminar

19

CSR Report 2011

Social Report

With Our Employees

Employment/Human Rights
Basic Philosophy

Human Resource Policy

Acknowledging that employees are the most importantmanagement resources, we respect the diversity andindividuality of our employees, aiming to cultivate awide variety of human resources. We also place anemphasis on oﬀering a desirable working environment inwhich individual employees are encouraged to make fulluse of their capabilities and potential.

We acknowledge that employees are the mostimportant management resources. In the light of
this, we respect the diversity and individuality of
our employees and cultivate abundant humanresources, striving to promote the further
development of our Group as a whole.

【Action Guidelines】

Voice
Under our
total involvement
principle thatencourages employees to fully realize their various
capabilities, our company has carried out businessactivities following the to go a step further inmanufacturing strategy, aiming to become anenterprise capable of receiving great support andpopularity from people around the world.
On the other hand, the domestic and international
circumstances surrounding us are drastically changing
at an unprecedented pace, resulting in new values,
changes in the market environment, the rise of newly
developing countries, etc.
Respecting our total involvement principle and theto go a step further in manufacturing strategy, thePersonnel Department strives to foster and support
employees who actively continue responding to therapidly changing environments
surrounding us and seek toenhance their potential, keeping achallenging spirit in their minds.

● Respecting the rights of our employees, we
eliminate discrimination and harassments in
employment, and avoid the use of forced labor orchild labor.
● We secure and foster human resources who help
pass down our quality products principle to thefollowing generations. To this end, we provide
learning opportunities and other programs to
supportthecareerdevelopment

of

our

employees.
● We establish a personnel evaluation system toensure that people with diﬀerent qualities canfully realize their own capabilities.

Masakazu Mori
General Manager
Personnel Department

Labor-Management Relations
An important mission of both labor and management is■ Responding to Harassment

to make signiﬁcant contribution to society throughIn order to protect the rights of employees, labor andoﬀering superior products and services. Our labor andmanagement are working together to take preventive

management fulﬁll their respective responsibilities underactions against harassment.

the mutual trust and cooperation, aiming to create a

Regarding sexual harassment banned by our work rules,

more desirable working environment.

we have established a Sexual Harassment Committee to■ Labor and Management Conferences

prevent and prohibit sexual harassment. Furthermore,both our labor and management have established a

In order to have open communication between labor

sexual harassment advisory center in each factory,

and management, we host regular labor and management

aiming to create an environment in which employees

conferences, in which sharing of corporate information,

are encouraged to consult the appropriate staﬀ about

working hour reductions and other issues, as well as

their sexual harassment problems.

necessary actions to solve these issues are discussed.

■ Greeting Action■ Working Hour Reduction

In order to begin the day with a good hearty welcome

We have a No Overtime Day once a week. On thisand return home with a smile, the labor union has beenday, labor and management members patrol all ﬂoors to

conducting a Greeting Action. In this eﬀort, several labor

ensure that no one works overtime.

union members as well as executives and managerialstaﬀ of our company
stand on the entrance
area

and

exchangedaily greetings with
employees.
No Overtime Day

Greeting Action

CSR Report 201120

Social Report
With Our Employees

Promotion of Diversity
We at NGK Spark Plug Co., Ltd. are involved in activities to

eﬀorts to create a working environment that enables

promote diversity in our company. To be speciﬁc, we

female employees to realize their full potential.

respect the individuality of our human resources (in termsof sex, age, disability, nationality and other factors) andadopt new values and ideas created by such a wide varietyof human resources, aiming to accelerate our growth as a

■ Number of Employees Using the Leave Schemes(people)Number of employees taking childcare
Number of employees taking nursing leave

58

60

55
48

50

whole and help realize the happiness of our employees.

40■ Increasing Roles of Female Employees

45

38

30

The ratio of female full-time employees in our company
is 16%, a ﬁgure which may seem to be relatively low.
However, their average years of employment is some 13

0

0

2

0

1

2006

2007

2008

2009

years and the number of female full-time employees on

Voicechildcare leave remains constant at about 50 (equivalent
to 5% of all female employees). As proven by these facts,
we have been committed to ensuring a working
environment in which female employees are encouraged
to continue working after marriage/having a baby.
In 1999 we have established a repositioning system to
new ﬁelds of specialty, with the aim of promoting therepositioning of general clerical employees to managerial
staﬀ. So far, 34 female employees have used this system.
As a result, the ratio of female full-time employees in the

1
2010(ﬁscal year)

I thank my boss and colleagues for understanding
and supporting me as the only female managerialstaﬀ member of our company. I keep it in my mind tosincerely listen to each individual employee s opinions
and ideas, aiming to help create a satisfying workplacein which as many employees as
possible can feel proud of working
at NGK Spark Plug Co., Ltd. To thisend, I have launched a project
about promotion of diversity.
Yumiko Mori
Deputy Manager
Personnel Department

managerial track now exceeds 10%. In ﬁscal 2010,
aiming to double that number, we will make continued■ Available System
System name

Term

Childcare leave
Childcare leave extension
Special leave
Short-time work

OutlineUntil child becomes 1 year old(1 year and 2-month-old maximum)
Until child becomes 2 years old
Until child enters elementary school(10 days maximum per year)
Until 1 month passes after childenters elementary school

Nursing care leave

1 year maximum

Social service leave

2 years and 4 months maximum

Available for parents of newborn babies
Available for those whose child is on waiting list for admission to a day nursery
Available when the child needs care due to sickness or injury
Available for those who want to leave early for childcare reasons, as far as
reduction in daily working hours is limited to 2 hours
Available for those who need to take care of elderly parents/relatives requiring
nursing
Available for those who engage in social service■ Post-retirement Reemployment System

introduced diverse new personnel systems including a

In order to take advantage of the long-accumulated

job posting system and repositioning to new ﬁelds ofknowledge, skills and expertise of retirees and also provide

specialty. We have also started to authorize female

them with the opportunity to continue working, we

employees to take late-night shifts.

introduced a post-retirement reemployment system in

Our employees are allowed to ﬁle a placement request

2001.

with their superior (in a managerial position) during aDuring ﬁscal 2010, 78 retirees were reemployed under the

performance evaluation

system. Up to present, a total of 451 persons have used

twice a year. The interview provides employees with an

the system.

opportunity to discuss their goals, career course, work

■ The Number of Retirees Reemployed under the System

environment, etc., with their superior. When assigninginterview that takes place

duties to employees, we take into consideration their(people)

81

80

78

abilities, qualiﬁcations, attitude and desires, ensuringthat their contributions to our operations can be

60

maximized.

55
49

Voice

40
27
20
0

2006

2007

2008

2009

2010
(ﬁscal year)■ Appropriate Placement
To expand opportunities for highly motivated employees
to play an active part in our operations, we have21

CSR Report 2011

I applied to the post-retirement reemployment
system, hoping my past experience would be of somehelp to the company. I am glad to be reemployed
under the system, especially when I am asked about
my experience, opinion and understanding regarding
daily operations I used to be engaged in.
Kunio Takai

Personnel Department

Social Report■ Employment of the disabled■ Percentage of Disabled Employees

We have been promoting the employment of disabledworkers. In ﬁscal 2010, the percentage of disabled

Employment Rate (%)
2

workers we employed reached 1.83%, exceeding the

1.8

legal requirement of 1.8%.

1.6

When assigning duties to disabled employees, we
suﬃciently discuss with them to ensure their safety and1.4

eliminate any anxiety they may feel. We will make

1.2

continued eﬀorts to promote the employment of0

disabled workers by creating a more open, attractive

1.83

1.50

1.53

2007

2008

1.76

1.41

2006

2009

2010
(ﬁscal year)

and safe work environment for them.

Human Resource Development
The purpose of our human resource development
eﬀorts is to continuously foster human resources who

Human Resource Development Concept

contribute to passing down our

Fostering employees who, as a member of thecorporate family, observe our corporate rules andindependently take actions with a self-reliancespirit.

quality products

principle to the following generation and who respondto changes in circumstances in and outside our company
with a challenging spirit. To achieve this purpose, we
design and provide a wide variety of human resource

We seek:

education/training programs based on the human● Persons who are full of curiosity and actively take onchallenges

resource development concept.

● Persons who ﬂexibly adapt themselves to changes in■ Education/Training Programs
Our

human

resource

circumstances, showing a positive attitudeeducation/training

programconsists of: On the Job Training (OJT) that encourages● Persons who logically think from the other person s
perspective and sincerely take necessary actions

employees to learn necessary know-how and technology
by carrying out practical operations; and Oﬀ the Job
Training(OFF-JT)that

providesopportunities

technology outside their own workplace.
OFF-JT includes: quality education and environment/
safety education; education on the role of each track;
globalhuman

resources

education;

andcareerimprovement support. In ﬁscal 2010, a total of 5,874
employees

participated

in

these

OFF-JT

training

programs.

■ Ability Training System Diagram (OFF-JT)

Human Resource Development
Education/training
programs

ＯＪＴ
Onsite instruction ofoperations at each
workplace
ＯＦＦ−ＪＴ
Training outside a
workplaceAt the training program for business leader candidates,
I learned self-tailored business management under asevere business environment. The purpose of the
program was to encourage participants to make aproposal from the perspective of the management,
broaden their views and perspectives, and clarify thesigniﬁcance of their organization. The training program
was designed in an easy-to-understand way,consisting of onsite group training outside ourworkplace and a correspondence
course to acquire basic knowledge
at home.

Norihiko Adachi
Deputy Department Manager,
Sales & Marketing Headquarters

Human Resource
Development Section
Personnel Department

Education and training
programs and others
commonly necessary
for the company as a
whole

Voice

for

employees to acquire new skills, knowledge and● Changes of
workplace and/or occupational
type● Motivation
enhancement

Managers

Mid-grade
employees● Selfenlightenment
etc

Young
employeesNew
employees

Product quality
education programs

Training programs forbusiness leader candidates
Training programs for
managers

Environmental/safety
education programs

Training programs for new
managers

Professional education
programs

Training programs for new
section chiefs

Global human resources
education programs

Training programs for
mid-level employees

Correspondence education
programs

Follow-up programs
Training programs for new
employees

CSR Report 201122

Social Report
With Our Employees

Occupational Safety and Health
Basic Philosophy

Occupational Safety and
Health Basic Policy

Occupational safety and health is the most familiar
theme for employees in their daily duties. It is the mostimportant theme for enterprises as well in their eﬀorts toencouraged to do their best in operations. We are well

We strive for occupational safety and health as
the starting point of business activities on thebasis of respect for human life and dignity.

aware that oﬀering a secure and safe workplace is our【Action Guidelines】

important corporate responsibility.

● Observe laws and self-standards relating toprovide a working environment in which employees are

To this end, we established our occupational safety andoccupational safety and health.

health management system in 2006, aiming to realize● Reduce risks and elimination of work-related

and secure safety at all workplaces.

accidents through sustainable improvement in

We will continue strengthening our safety and healthoccupational safety and health management

zero accidents

system and performance.

management activities at an companywide level, aiming● Prevent health hazards and promote the physicalto establish a corporate culture of safety ﬁrst.

and mental health of employees.
● Publicize this policy among all the employees,
promote consciousness through training andenlightenm, and expand toward the overall
participation in labor safety and health activities.

OSHMS

＊1
JISHA OSHMS Standards
Standards establishedand published by JISHA(Japan Industrial Safety
and Health Association).
The standards
determine whether
OSHMS is appropriately
introduced based on
the Occupational Safety
and Health Management
System of the Ministryof Health, Labor andWelfare, and whether
the occupational safety
and health standards
are being appropriately
implemented to improve
gradually.

With the aim of eliminating on-the-job accidents andOccupational Safety & Health Management Systems).

creating a comfortable, safe work environment, we have

Each individual plants and oﬃces set safety goals andestablished an in-house occupational safety and healthsafety plans in accordance with our OSHMS guidelines,

management (OSHM) system. We are accredited asaiming to conduct OSHM activities based on acomplying with JISHA OSHMS Standards＊1 (Japan

involvement

Industrial Safety & Health Association s Standards for

improvement of our safety status, the progress andInternal
Safety and
HealthAuditorOSHMS
Secretariat

committee.

Central safety andhealth committee
Factory safety andhealth committee
Department/section
safety and healthsubcommittee
Oﬃce meeting on
safety and healthExpert committees
・ Ad hoc assessment
committee
・ Traﬃc safety measurescommittee etc.
Organized asnecessary
Each factory
Internal Auditor Training┃PICK UP┃NGK Spark Plugs (U.S.A.), Inc. receives SHARP recognition
In August 2010, the West Virginia factory of NGK Spark Plugs(U.S.A.), Inc. received Safety and Health Achievement
Program(SHARP)

recognition

from

the

Occupational Safety and Health Administration (OSHA). The
factory was recognized as an exemplary operator, based on
assessment results of the occurrence rate of on-the-job
accidents, eﬀorts toward the continuous improvement of thesafety status, and OSHA s 58 safety assessment requirements.
NGK Spark Plugs (U.S.A.), Inc. will make continued eﬀorts tofurther improve its workplace safety and health status.

23

CSR Report 2011

a

total

step-by-stepand health committee and the central safety and health＊Each factory refers to the Head Oﬃce Factory, Komaki Factory,
Miyanojo Factory, Ise Factory

Recognition

attainsafety and health auditors as well as the factory safety

President

Safety and HealthAdministratorTo

results of such OSHM eﬀorts are veriﬁed by our internal■ Safety and Health Promotion Organization

Chief Safety and HealthAdministrator (Central
safety and healthcommittee chairman)

principle.

Recognition Awarding CeremonySocial Report

Target and Results
During ﬁscal 2010, we focused on strengthening risk

conventional

assessment＊1 activities and improving daily operations at

operations and discovering potential danger spots. We

all workplaces. As a result, the number of occupational

will

accidents was successfully reduced.

enlightenment programs for our employees, so that theyIn ﬁscal 2011, aiming to identify all potential dangers in

can improve their awareness of occupational safety anda more comprehensive and objective manner, we will

health and voluntarily adopt safe behavior at thepromote new risk assessment based on a review of

workplace.

also

methods

continuefor

conducting

Fiscal 2010１.
Elimination ofoccupational
accidents

２.
Improvement ofworkingenvironments

３.
Healthpromotion

４.
Enhancededucation andenlightenment
programs

identifying

dangerous

educational

andFiscal 2011
TargetTargetResults

Evaluation

Hazard elimination related tomachines, facilities andchemical substances

The number of identiﬁed dangers
related to machines, facilities andchemical substances increased by
23% from the previous ﬁscal year.

○

Essential safety of machinery andfacilities, and promotion ofself-management of them

Enhanced eﬀorts to identify
potential dangers in nonregular operations

The number of identiﬁed dangers in
non-regular operations increased by
29% from the previous ﬁscal year.

○

Intensive sampling of the present risks
and an exhaustive publication ofremaining risks

Suﬃcient awareness of any
residual risks

Measures were developed,
implemented and evaluated at eachindividual workplace.

○

Promotion of new risk assessment

─

─

─

Completion of rules of operation
methods and thorough compliance tothe rules

Elimination of workplaces inthe third management
category and reduction of
workplaces in the second
management category

The number of workplaces under
the third management category was
not reduced to zero.

×

Improvement of work environments in
harmful workplaces

Improved health management Health management-related
awareness
information was provided.
─

○

─

─

＊1
Risk Assessment
Method to detect andevaluate potential
dangers and hazards
in a work site, andeliminate/reduce them.

Activation of measures to promote health• Promotion of measures
for improvement in metabolism• Promotion of measures
for good mental health

Improvement of safety
education for repositioned
employees and young
employees

Educational programs wereconducted at each individual
workplace.

○

Enrichment of training for safety andhealth in workplaces

Reinforcing safety and healthpatrolOccupational safety and healthpatrols were conducted at eachindividual workplace.

○

Enforcement of patrols for behavior
relating to safety and health

Promotion of training for
raising the level of awarenessof potential risks andreporting of the discovery of
any risky spots

Daily activities for occupationalsafety and health management wereconducted at each individual
workplace.

○

Promotion of measures for safety,
sanitation, and health in daily life

Promotion of activities toimprove safety & healthmanagement

Proposed activities to further
improve occupational safety andhealth management were promoted.

○─

1. Elimination of occupational accidents
During ﬁscal 2010, the overall Frequency Rate＊2 ofoccupational accidents achieved the best result in the past
10 years. We believe that the result was attributed to our■ Frequency Rate of Accidents＊NGK Spark Plug Co., Ltd. includes temporary staﬀ when calculating theFrequency Rate.

enhanced eﬀorts to: identify potential dangers in non-

NGK Spark Plug Co., Ltd. (all accidents)
NGK Spark Plug Co., Ltd. (accidents resulting in absence from work)
Electrical Machinery and Appliance Manufacturing Business(accidents resulting in absence from work) [reference]

regular operations and implement necessary measuresagainst identiﬁed dangers; enhance occupational safety

corporate-wide operational rules.
Regarding accidents occurring during travel to and fromwork, we have been analyzing the trends of such accidents
and their direct victims at a per-factory level, based on the
results of which we have provided educational programs
to improve employees awareness of traﬃc safety. For

Frequency Rateemployees; and ensure thorough compliance with our

1.86

motorcycle in 2010 at our Komaki Factory.

Actual Hoursof
Extended Labor

1.52

1.5
1.41

×1 million

1.09

1.0
0.64
0.48

0.46

0.39

0.37

0.34

2007

2008

2009

0.5

example, a lecture on traﬃc safety was provided forsecond-year employees and employees commuting by

Frequency Rate ＝
Number of
Accidents

2.0

and health education/enlightenment programs for young＊2
Frequency Rate
The frequency rate ofaccidents. Calculatedwith the following
formula.

0.17

0
2010
(ﬁscal year)

CSR Report 201124

Social Report
With Our Employees＊1Working Environment
Measurement
To protect thehealth of laborers
and oﬀer a proper
working environment,
working environment
measurement isconducted in termsof the level of harmful
factors existing in thework environment andto what extent workers
are exposed to such
harmful factors. The
results are evaluatedand classiﬁed into theﬁrst, second, or third
category.
Management Working
category
environment
measurement
Third

Inadequate
workplace

SecondRoom forimprovement

First

Adequate
workplace＊2
WBGT
WGBT (West-Bulb
Globe Temperature),a practical index forevaluating heat eﬀect onhumans, is used to help
prevent heat stroke in a
hot work environment
or in sports activities.
The Ministry of theEnvironment calls theindex the Heat Index.

２. Improvement of Working Environment
Targeting workplaces subject to signiﬁcant dust pollution

heat stroke incidents in summer, by measuring WGBT,＊2or severe noises, we conduct working environment

encouraging adequate intakes of water and salt, andmeasurement＊1 in accordance with the Industrial Safety

providingand Health Act. Factories/operational sites that have

Regarding an oﬃce work environment, we measure thebeen classiﬁed under the second or third managementlevel of lighting and CO2 concentration to ensure thecategory are especially encouraged to take eﬀective

work environment is constantly favorable. In winter, we

solutions to be classiﬁed in the ﬁrst management

install humidifying devices in the oﬃce to help prevent

category. We also take preventive measures against

the spread of ﬂu viruses.

cooling

items

and

the

like.

３. Health Promotion
We actively protect and promote the good health of ourprograms conducted in and outside our company. We

employees.

also actively use a check sheet in the Self-care Handbook
to encourage employees to increase their awareness of■ Health Checkups

the importance ofself-care.

In addition, with theAt our health checkups, employees can undergo

cooperation of our industrial physicians and clinic

additional tests other than general examination items by

doctors, we conduct a questionnaire survey to ensurelaw. For employees with abnormal ﬁndings in the healthearly detection of employees mental heath problems.

checkups, our industrial physicians,＊3 clinic doctors andAs part of our eﬀorts to promote employees good

health management staﬀ provide with follow-up caremental health, we have also established a hotline

such as reexamination, close examination, medical

outside our organization so that employees suﬀering any

treatment and others. With the slogan of self-care forundesirable mental condition can make a call andgood health, we are also actively engaged in providing

receive consultation from a specialist.

health-related information to our employees, aiming to■ Eﬀorts by NGK Spark Plug Health Insurance Society

increase their awareness of good health.

Working together with the company and the labor
union, the health insurance society provides a wide
variety of programs to support member workers mental
andphysicalgoodhealth.

Speciﬁcally,

healthmanagement and disease prevention eﬀorts conductedby the health insurance society include: metabolic
Health management staﬀ

syndrome improvement/prevention programs; subsidies

Walking event

for medical examinations; provision of dental checkups;＊3
Industrial Physician
A doctor who is
involved in managing
the health of laborers
in workplaces. The
Industrial Safety and
Health Act mandates
companies constantly
employing 50 workers
or more in theworkplace to hire anindustrial physician.

■ Mental Health Caresupport programs for quitting smoking; subsidies for ﬂu

We aim to educate our employees to increase theirvaccination; health management promotion programs;

awareness of line care (the practice that superiors pay

and walking events. The health insurance society also

attention to the mental health of their subordinates)

operates three clinics at our domestic factories, as wellandas a resort facility for member employees in the Gokasho

self-care (the practice to understand one s own

mental stress and cope with it),through training

Bay area located in Minami-Ise, Mie Prefecture.

４. Enhancement of Education and Enlightenment Programs
As part of our daily activities to promote workplace

an internal announcement, for the purpose of both

safety and health management, we conduct occupationalcalling employees attention to occupational safety andsafety and health patrols, encourage information sharing

health management.

about KYT and Hiyari Hatto incidents, and encourage

Since the number of young employees injured by

employees to meet and read out texts together foroccupational accidents has been prominent in recent

collation of the Handbook for Safety and Healthyears, we have also incorporated hands-on experience-Management.

atbased lessons into our training programs for new

occupational safety and health patrols or at workplace

employees, utilizing a machine for virtual experience ofmeetings, we are taking necessary measures one byoccupational accidents.

Regardingproblems

identiﬁed

one.
A large number of occupational accidents occurred inﬁscal 2009. Therefore, in ﬁscal 2010 we focused on
ensuring that our employees voluntarily adopt safe
behavior at the workplace in their daily operations.
Speciﬁcally, we distributed each employee a badge tobe carried to raise awareness of occupational safety
and health. We also displayed posters and broadcasted

25

CSR Report 2011

KYT before operations(Ise Factory)

Hands-on experience-based
safety training for new employees

Social Report

With Local Communities and International Society
Basic Philosophy

Social Contribution Policy

We carry out various types of social contribution
As a good corporate citizen, we at the NGK Spark
Plug Group aim to contribute to society throughthe eﬀective use of management resources.

activities in areas where our production sites are located,aiming to enhance communication with local residents
and help realize a more comfortable society. In
conducting business operations throughout the world,【Action Guidelines】

we also respect the cultures and customs of local● We focus on the following activities:
・Activities closely related to our business ﬁelds

communities, aiming to contribute to the further

and also to local communities

development of local communities.

・Activities that respect the cultures of individual
countries and local communities, as well asactivities that contribute to society such as

Support for Local Cultures andTraditions

traﬃc safety education programs
・Activities that contribute to the next generationsociety, focusing on environmental conservation,science, and education, as well as cultures to■ Invitation of Sports Caravan(Ceramica e Velas de Ignicao NGK do Brasil Ltda.＊1)

be bequeathed to the next generation, etc.
● We strive to create a corporate culture thatIn Brazil, sports caravan activities have been conductedencourages

executives

to educate and foster young people throughout theparticipate

togetherandcountry. As a sponsor for such an activity, Ceramica e

activities as a social citizen. We also respect andVelas de Ignicao NGK do Brasil Ltda. invited a sports

support their active involvement in society.

inemployeessocialtocontribution

caravan to Mogi City, where the company is located.

■ Sponsorship for Professional Wrestling Events(Bujias NGK de Mexico S.A. de C.V.＊2 )＊2Bujias NGK de Mexico
S.A. de C.V.
The company sells autoparts.

Mexico is the home of professional wrestling. Bujias■ Respect for Local Cultures(Siam NGK Spark Plug Co., Ltd.＊3 )NGK de Mexico S.A. de C.V. has provided sponsorship

For its many devout Buddhist employees, Siam NGK

every year for professional wrestling events organizedSpark Plug Co., Ltd. has set up an altar called Phra in

by a Japanese professional wrestling organization. At

its

the event held in May 2011, the company worked

Saanphraphuum on its premises. There are also many

together with other sponsors in raising money for the

Chinese Thai employees in the company; at the Chinese

victims of the Great East Japan Earthquake. The

lunar New Year (Shunsetsu), not only Chinese Thai

collected money was donated to Japan through theemployees but also Japanese workers on loan makeMexican Red Cross.

oﬀerings to celebrate the day. As can be seen fromoﬃce

building,

and

a

small

＊1
Ceramica e Velas de
Ignicao NGK do Brasil
Ltda.
The company
manufactures and sells
auto parts and ceramic
products.

shrinecalled＊3
Siam NGK Spark PlugCo., Ltd.
The company, which
is located in Thailand,
manufactures and sells
auto parts.

these facts, Siam NGK Spark Plug Co., Ltd. respects
traditional customs and local cultures, striving to become
an enterprise recognized and trusted by local residents.

Professional wrestling event■ Sponsorship for the Manabu Mabe Museum

Shunsetsu Festival(Ceramica e Velas de Ignicao NGK do Brasil Ltda.)

Voice

Ceramica e Velas de Ignicao NGK do Brasil Ltda.
provided sponsorship for the renovation of the Manabu
Mabe museum that exhibits and possesses a collectionof paintings by Manabu Mabe, the late JapaneseBrazilian painter. The museum also promotes cultural
exchanges, serving as a venue to introduce works byJapanese artists and provide art courses, art restorationand other programs for local residents.

I am really pleased that Siam NGK Spark Plug Co.,
Ltd., a Japanese enterprise, respects our local
customs and cultures and embraces our traditional
events such as the Shunsetsu
festival. I hope our company willcontinue supporting our yearly
traditional and community-based
events.
Suleemat Kuansut
Siam NGK Spark Plug Co., Ltd.

CSR Report 201126

Social Report
With Local Communities and International Society

Support for Educational Activities■ Accepting High School Student Interns＊1
NTK Ceramic Co., Ltd.
The company
manufactures
telecommunication
devices and their parts aswell as auto parts.

NTK Ceramic Co., Ltd.＊1 accepted local high school■ Nittoku Asia Foreign Student Scholarship
Public Truststudents as interns and provided them with hands-on

The NGK Spark Plug Group has conducted businesswork experience. By providing such an opportunity, we

operations in its production/sales hubs around the

aim

their

world, especially in Asian countries including Malaysia,

understanding of occupations and considering their own

Thailand, Indonesia, Taiwan, Korea, China, India and theaptitude for work.

Philippines. In commemoration of the 70th anniversary

toassistyoung

peopleindeepeningof our company, we established a scholarship fund forstudents from Asian countries attending universities andgraduate schools located in Aichi Prefecture in November
2006. In ﬁscal 2010, the fourth year of the program, we
granted scholarship to 10 students.

Internship■ Dispatch of a Lecturer for Social Education

Scholarship granting ceremony

We dispatched our employee (Miyanojo Manufacturing
Department) as a lecturer to Kagoshima Prefectural■ Reading Promotion ProjectSatsuma Chuo High School on May 20 and June 10,

Ceramica e Velas de Ignicao NGK do Brasil Ltda. has

2010. Under the theme of Experience gained throughconducted a series of activities to help the continuous

manufacturing operations in the real world,thedevelopment of human resources. As an eﬀective

dispatched employee provided a lecture mainly for third

approach to address educational issues, the company s

grade

in

CSR promotion working group is now conducting the

manufacturing operations such as quality and ISO, based

reading promotion project, under a tie-up with the Sao

on his own experience and knowledge.

Paulo board of education.

students,

explaining

importantmatters

The reading promotion project aims to provide an
opportunity for over 20,000 students of 42 schools toread a book. To be speciﬁc, 20,000 books of 21 classicalPortuguese literary works are distributed to the statefunded school near the City of Mogi das Cruzes. To help
students understand the signiﬁcance of reading andfoster their interest in reading, some of the literary works
are also performed at each of the 42 schools. As part ofthe project, training workshops for national language
and art teachers are also held, aiming to help teachers
eﬀectively conduct reading promotion eﬀorts.

Lecture at the high school

Voice
I was dispatched as a lecture to Kagoshima
Prefectural Satsuma Chuo High School. There I
shared my experience as a manufacturing worker,
aiming to help students understand thesigniﬁcance of manufacturing and start working
in the manufacturing industry without unease.
The students, who desired to work in the27

CSR Report 2011

manufacturing industry, attentively listened to mylecture. It was also a meaningful opportunity forme to gain some experience of teaching.

Yoshiyuki Nakazono
Group Leader
Miyanojo Manufacturing Department

Social Report

Activities to Contribute to Society■ Donation of Material Samples
to the Nagoya City Science Museum■ Plastic bottle cap collection

We donated our ceramic material samples to the

Miynojo and Ise factories, we have installed a dedicatedNagoya City Science Museum, which reopened onbox for the collection of plastic bottle caps. The

March 19, 2011. Alumina, silicon nitride, whiskers andcollected caps are donated to a non-proﬁt organization,other raw material samples of our ceramic products arethrough which they are used in vaccination programs for

exhibited in the Materials zone on the ﬁfth ﬂoor.

children around the world. As of March 2011 we had

At cafeterias of our Head Oﬃce, as well as the Komaki,

donated some 100,000 plastic bottle caps, an amountcovering the cost of vaccines for 126 children.

Plastic bottle cap collection box

Exhibition■ Participation in Various Traﬃc Safety Campaigns
As we are involved with the automobile industry, it isfundamental for us to be highly aware of the importanceof traﬃc safety. As part of eﬀorts to promote traﬃc safety
in local communities, our employees regularly stand in
the streets around their own workplace, holding banners
to raise people s awareness of traﬃc safety. In addition,
we participated in a traﬃc safety campaign conductedby the local police in July 2010. At the campaign, our■ Promotion of Local Sports Activities

employee, clad in police oﬃcer s uniform, urged

In February 2011, the sixth tag rugby＊1 championshippassengers to observe traﬃc rules as police oﬃcer for

was held in the Kagoshima Hokusatsu Regional Park

one day.

ground. Taking that opportunity, 20 members of ourMiyanojo Factory rugby club conducted a rugby classfor about 100 elementary school children participating＊1
Tag rugby
A safer version of rugby
game, having a nophysical contact (suchas tackling) rulein the championship. As well as providing instruction on
passing the ball, our 20 rugby club members also playeda game with the children and acted as touch judges(referees) for games, receiving great acclaim from boththe children and their parents.

Street observation(Komaki Factory)

Traﬃc safety campaign(Head Oﬃce)

Voice
I was really nervous when I was assigned to wear theuniform of a police oﬃcer for one day and received aletter of assignment from the chief of the police
station. Unfortunately, it was a rainy day; I stood at
the gate area of the subway station instead of thestreet and distributed items to raise awareness of
traﬃc safety to passengers such as high school
students, the elderly and children. It was a good
opportunity for me as well toreconﬁrm the importance of traﬃcsafety.

Rugby instruction for elementary school children

Namiko Nishimoto
General Administration Department

CSR Report 201128

Environmental
ReportEnvironmental Policy,
Environmental Action Plan

30

Environmental Burdensfrom Business Activities

33

Environmental Management

34

Global Warming

37

Waste

39

Scope of Environmental Reporting
NGK Spark Plug Group・NGK Spark Plug Co., Ltd. (excluding sales oﬃces and sales branch oﬃces)
・Nine consolidated domestic subsidiaries and one aﬃliate.

Water Resource
Substancesof Environmental Concern

29

40

Head Oﬃce andHead Oﬃce Factory

Aﬃliates
Nittoku Alfa Service Co., Ltd.
Nichiwa Kiki Co., Ltd.

NTK Ceramic Co., Ltd.
Nittoku Seisakusho Co., Ltd.

41

Komaki Factory
Takenami Factory

Nittoku Unyu Co., Ltd.
Ceramic Sensor Co., Ltd.

Kamioka Ceramic Co., Ltd.

Nansei Ceramic Co., Ltd.

Tokai Taima Kogu Co., Ltd.＊

Tono Ceramic Co., Ltd.

Miyanojo Factory

Environmentally
Friendly Products

43

Communication

44

CSR Report 2011

NGK Spark Plug Co., Ltd.

Ise Factory： Region (joint ISO14001 certiﬁcation)
In blue ： Included in the consolidated environmental accounting＊An equity method aﬃliate

Environmental Report

Environmental Policy, Environmental Action Plan
Basic Philosophy
Environmental issues are a common challenge for all
mankind. Every member of the NGK Spark Plug GroupEco Vision 2015
(Formulated in April 2011)

Environmental
PolicyEnvironmental
Action Plan

will work towards reducing environmental burdens fromour business activities as much as possible andEnvironmental Policy

developing and providing products and technologies
that contribute to improving the environment. We will
also endeavor to communicate in greater depth with
our stakeholders including our local communities sothat we may all work together to contribute to creatinga sustainable society.

We positively promote actions for environmental
conservation through all business activities tocontribute to construction of a sustainable society
with the participation of everyone concerned.

＊1
PRTR substances
Chemical substances
designated in the
Act on Conﬁrmation,etc. of Release
Amounts of Speciﬁc
Chemical Substancesin the Environment
and Promotion of
Improvements to theManagement Thereof.
This Act stipulates asystem of determining
and notifying theamounts of speciﬁc
chemical substances
released into theenvironment.

【Action Guidelines】● Environmental management：
We will abide by all laws, regulations, protocols,and voluntary standards relating to environmental
conservation to prevent environmental pollution.
We also aim to manage both environmental
conservation and business growth by continuallytrying to enhance our environment management
system (EMS) and environmental performancefrom a global point of view.
● Business operation：
We will promote environmentally friendly
business activity to contribute to prevention of
globalwarming,resource
recycling,andbiodiversity conservation throughout the entire
life cycle of our products from procurement of
the materials to disposal.
● Cooperation with society：We will try to disclose information and to enhancecommunication for improving the trust of our
stakeholders and deepening cooperation withsociety. We also try to enhance environmental
consciousness by positively enforcing participationof all the employees in environmental conservation
activities.

Voice
Fiscal 2010 marked the end of the Eco Vision 2010
target period. We have taken the results of the sevenyear eﬀort seriously, and conﬁrmed why some targets
were achieved and why some were not. Based on
this, we formulated Eco Vision 2015, comprising an
Environmental Policy and an Environmental Action
Plan, to indicate the direction of our environmental
eﬀorts from ﬁscal 2011 and on.
Fiscal 2015 targets are established under 16 items in
the Environmental Action plan, and of these, myemphasis is on promoting our activities globally.
Each of our overseas corporations already conduct
their own environmental activities, but in order tobecome a truly global company in all aspects
including the environment, wemust make eﬀorts based on thesame principle. To this end, theGroup must ﬁrst share a uniform
environmental policy.
Takao Hamada, Director＊2
LCA
Life Cycle Assessment.
Method for quantitativeand objective
assessment of theenvironmental
impact from all steps
throughout the entire
lifecycle of a product,
including sourcing
the raw materials,
manufacturing,
distribution, disposal,
and recycling.

■ Environmental Action Plan
Item

Fiscal 2015 Target

Fiscal 2011 Target
Sharing of environmental declarations and policies of the domestic groups withoversea factories

Environmental
Management

Business
Activities

Promote activities uniformly across theglobe.

Formulate global ecological vision.

Understanding of the current state of EMS in oversea factories
Implementation of the new environmental management information system(SLIMOFFICE) in Japanese groups

Promote environmental activities thatlead to corporate management

Transparentize costs for energy and wastes, and constructa system to promote actions for reducing the costs.

Conversion of environmental loads, such as CO2 and wastes, to cost inJapanese groups

Reduce CO2 emissions

In comparison with 2007
Emissions: down 10%
Emissions per unit production: down 8%

The domestic groups
Emissions: 186,725 tons/year
Emissions per unit production: 0.780 tons/1,000,000 yen

Reduce generated volume of waste/valuable resources

In comparison with 2007
Emissions per unit production: down 30%

In comparison with 2010

Emissions per unit production: down 1%

Reduce volume of water used

In comparison with 2007

Per unit production: down 8%

In comparison with 2010

Per unit production: down 4%

Reduce PRTR substance＊1 emissions

In comparison with 2007

Emissions: down 8%

Reexamination of a recycling equipment

Develop environmentally friendly
products

Expansion of LCA＊2 to all the company s operation sites

Determination of the range of data collection
Acquisition of required data

Improve chemical substance control

Construction of a management system of chemicalmaterials including supply chains

Examination of the management system of chemical materials

Promote green purchasing

Expansion of the green supplier system

Expansion of the green supplier system to the domestic related ﬁrms

Recycle used products

Establishment of recycling technology for products andpackaging materials

Examination of recycling technology of products

Reduce CO2 emission from logistics
activities

Japanese physical distribution energy per unit production:
Down 8% in comparison with 2007

Environmentally friendly sales activities

Promotion of environmentally friendly sales activities

Improvement of disclosing information

Improvement of disclosing global environmental
information

Enhancement of comunication

Enhancement of communication with communities

Enhancement of social contribution

Enhancement of social contribution for communities

Investigation of the status of chemical materials and storage of the data

Examination of the reuse of package materials
0.426kl/100,000,000 yen
Proposal of environmentally friendly sales strategies
Enrichment of PR relating to the environmental eﬃciency of our products
Disclosure of the state of law abidance in oversea factories
Acquisition of material data (procurement amount of raw materials and parts)
in oversea factories
Continual implementation of the environmental conferences
Acceptance of visitors to factories by stakeholders
Continual participation in EPOC international exchange subcommittee meetings

Socialcooperation

Continual implementation of the clean-up activities
Participation in a variety of environmental activities
Planning of guideline relating to biodiversity

Enhancement of actions for biodiversity
conservation

Enhancement of actions for biodiversity conservation

Enhancement of environmental
consciousness

Enhancement of environmental education

Examination of activities for Satoyama (planted/managed natural woodlots)
conservancy and cooperation with NPO/NGO and governments
Enhancement of level-speciﬁc training in the domestic groups
Understanding of the implementation status of environmental education inoversea factories

CSR Report 201130

Environmental Report
Environmental Policy, Environmental Action Plan

Results of the entire NGK Spark Plug Group Eco Vision 2010
The entire NGK Spark Plug Group Eco Vision 2010 is a

The results of the ﬁscal 2010 targets and the results ofvision established in 2004 indicating the ideal status of

the entire NGK Spark Plug Group Eco Vision 2010 are

environmental activities by this Group in 2010. Aiming

shown in the table below. Taking these results seriously,

to achieve this status, targets were set for each ﬁscal

we have reviewed our seven-year eﬀorts, and in 2011

year to promote environmental activities, and it came toformulated Eco Vision 2015 (P. 30) indicating our ideala close in March 2011.

status for 2015.

■ Results of ﬁscal 2010 Targets
Item

Achieved：○
Fiscal 2010 Target

ResultEvaluation

Implement suﬃcient environmental
education in domestic business sites

Could not implement environmental
education in domestic business sites.

×

Promote integrating EMS and QMS
documents

The matter was deliberated upon, but
unable to integrate various
documents.

×

Improve environmental impact
assessment systems

Environmental impact assessment waschanged from the scoring method tothe ﬂow method, and issues to be
tackled were clariﬁed.

○

Work to revise and improvement thecollection and managerial methods ofenvironmental data for operatingorganizations

Implemented the environmental
management information system andimproved the method of collecting
environmental data and its
management.

○―

Improve signiﬁcant environmental
aspects (emergency situations)and prepare for emergency situations[Zero environmental accidents]

Held regular drills to deal withemergency situations to prevent
incidents and to minimize damage
when they happen.

○

35

Total group emissions of carbon
dioxideunder 176,000 tons

Total group CO2 emissions
188,000 tons

×37Group s water reduction target:
9,755 m3

46,075 m3 reduction in volume ofwater used by the Group○

40

Group s waste reduction target:
794 tons

678 tons reduction in volume ofwaste generated by the Group.

×

39

Incorporate a low environmental
burdens disposal method

Changed subcontractor to one withless recycling residue.＊1○―

Substances ofenvironmental
concern

Promote control (recovery, etc.) of
VOC＊2 released

Deliberated on VOC recovery
equipment, but implementation was
not possible.

×41

Eco-design

Introduce LCA＊3 methods into the
product assessment

Implemented LCA in some products.

×43

Distribution

Eﬃciently transport products andwaste(Reduce volume of cargo shipment by
1% from previous year)

Cargo shipment volume:
44,305,000 ton-km
15% up from previous year×38

Communication

Naturalenvironment

Continue to participate in community
environmental events, etc.

Factory and aﬃliates participated on
their own in environmental events,
cleaning activities, etc. hosted by local
municipalities.

○

44

Mind

Education andtraining

Continue to implement environmental
education

Continued to implement
environmental education.

○

34

Environmental
management
systemManagement

Environmental
operation

Prevention of
global warming

Factory/Oﬃce＊1
Recycling residue
Residue from waste
recycled in waste
disposers, which will
end up in ﬁnal disposal(landﬁll).
＊2
VOC
Volatile Organic
Compounds. The sourceof photochemical
oxidants and suspended
particulate that pollute
the atmosphere.
＊3
LCA
Life Cycle Assessment.
Method for quantitativeand objective
assessment ofenvironmental impact
made at all steps
throughout the entire
life cycle of a product,
including sourcing
the raw materials,
manufacturing,
distribution, disposal,
and recycling.

31

CSR Report 2011

Not achieved：×

Eﬀective use ofresources

Products

Page―■ Single ﬁscal year targets for CO2, waste, and water【 Target for CO2 】【Target for wastes and water 】

Reduction Targets had been set since ﬁscal
2006, but from ﬁscal 2009 and on, thetarget will be set on total emission
volume.

Reduction Targets set since ﬁscal 2006.
Reduction Targets sets goals on thevolume to be reduced by taking various
measures. The advantage of this method

is that the results are more obvious, since
the degree to which the target wasachieved can be evaluated without being
inﬂuenced by changes in production.

Environmental Report■ Results of the entire NGK Spark Plug Group Eco Vision 2010
Item

Not achieved：×

Results of the Eco Vision

Evaluation

Page

Sharing of environmental policy byrelated companies including overseas
companies

8 out of 13 overseas manufacturers
abide by the same or more complex
policies, but sharing by all companies
was not possible.

×―

Construction of total management
system (QMS, EMS, OSHMS)

Integrated QMS and EMS documents
and conducted combined audits insome regions, but not for the entire
Group.

×―Centralization of environmental
management data control

Implemented the environmental
management data control system andimproved method of environmental
data aggregation and management.

○―

Promotion of CSR management

Held regular drills for handlingemergency situations to prevent
incidents and to minimize damage
when they happen.

○

35

Environmental
accounting

Integration of environmental
accounting and management
accounting

Considered MFCA＊1 as one of thetools, but remained unimplemented.

×―

Prevention of
global warming

Total greenhouse gas emissions inJapan of 150,000 tons or less
(10% down from 2001)

Was unable to reduce CO2 emissions
to 150,000 tons or less.

×37

Eﬃcient use of water resources

Reduced volume of water used.
Fiscal 2010
1,870,000 m3 (3% down from 2003)○

40

EPR (extended producer responsibility)
operations

Recycling after use was deliberated
on for some products, but
technological diﬃculties hindered
implementation.

×―

Reduction of waste emissions

Reduced waste emissions.
Fiscal 2010
16,819 tons (2% down from 2003)○

39

Reduced environmental load due towaste

Adoption of processing methods withless environmental load has
progressed.

○―

Total 36 tons of PRTR substances＊2
released(80% down from 2002)

Could not reduce release volume to
36 tons or less.
Fiscal 2010
141 tons (20% down from 2002)

×

41

Control substances of environmental
concern

Implemented integrated control of
MSDS＊3 (non-consolidated).

○―

Eco-design

Eco-friendly design and productcreation

Could not implement the LCA method
for product assessment.

×

43

Green
procurement

Green supplier system of identiﬁcation
and registration of all our businessassociates

Approved 270 business associates as
green suppliers.

○

42

Distribution

Construction of eﬃcient distribution
systems

Basic unit increased.
Fiscal 2010
0.451 kL/100 million yen(3.7% up from 2006)

×38

Eco-business

Development of eco-businesses

Deliberated launching theenvironmental analysis operation as abusiness, and fostered environmental
certiﬁed public measurers.

○―

Disclosure of clear environmental data

By using a number of graphs,
respecting color universal design＊4,
and other measures, 80% answered
clear in the questionnaire survey.

○―

Continuous issue of CSR reports

Continued to issue the Environmental& Social Report and improved thecontent regarding society.

○44

Community

Support for and participation in NGO
and NPO activities

Made a donation to an NPO
corporation, and planted trees.

○

44

Naturalenvironment

Promotion of nature conservation andsocial contribution

Factories and aﬃliates participated intheir own in environmental events,
cleaning activities, etc. hosted by local
municipalities.

○

44

Thorough education of eco-minded
employees

Implemented new tiered
environmental education (third year,
new section heads).

○

34

Reﬂection of environmental
performance in business evaluation

Deliberated on mechanism toevaluate degree of contribution toenvironmental activities throughoperations of employees, but
implementation was not possible.

×―

Environmental
management
systemManagement
Environmental
operation

Factory/Oﬃce

Achieved：○

Eco Vision

Eﬀective use ofresources

Substances ofenvironmental
concern

Products

Disclosure

Communication

Mind

Education andtraining＊1
MFCA
Material Flow Cost
Accounting. Methodof identifying costs bydetermining material
costs, processing costs,
and depreciation andamortization incurredby materials andenergy losses (defective
products, etc.) during
production processes.

＊2
PRTR substances
Chemical substances
designated in the
Act on Conﬁrmation,etc. of Release
Amounts of Speciﬁc
Chemical Substancesin the Environment
and Promotion of
Improvements to theManagement Thereof.
This Act stipulates asystem of determining
and notifying theamount of speciﬁc
chemical substances
released into theenvironment.
＊3
MSDS
Material Safety Data
Sheet. Document statinghazardous propertiesof and cautions forhandling chemical
substances.
＊4
Color Universal Design
Designs using color
schemes that can beeasily identiﬁed bypeople with all typesof color vision so as
to convey information
accurately to as many
people as possible. Thisis used in this report forcolors of texts as wellas color schemes, line
types and color-coding
in charts and graphs.

CSR Report 201132

Environmental Report

Environmental Burdens from Business Activities
W eb
Material balance ofdomestic business sites

Material Balance＊Figures indicate performance of NGK Spark Plug Group (P29) and domestic business sites combined.

INPUTOUTPUT■ Raw Materials, auxiliary materials■ Products■ Ceramic materials, metal materials■ Products：Volume of products shipped
as consigner＊Tally method changed since ﬁscal 2006.

：Purchased volume■ Reused materials：Volume of reused ceramic materials■ Plastic materials, chemical substances,oils, paper, Other materials, other gases：Volume used by each department(estimate)

Suppliers

Products■ Containers and packaging
material

Ceramic materials

18,813 tons

■ Plastics, paper, cardboard：Volume usedby each shipping department (estimate)

Metal materials

26,106 tons

Plastics

770 tons

Reused materials

13,071 tons

Paper

1,931 tons

Plastic materials

2,591 tons

Cardboard

1,770 tons

Chemical substances

9,092 tons

Oils

511 tons

Paper

3,764 tons

Other materials
Other gases■ Waste■ Recycling：Volume consigned for recycling(Including the volume sold)■ Landﬁll/incineration：Volume consigned for landﬁll/
incineration

691 tons
9,866 tons

■ Energy■ Purchased electricity, city gas,
heavy oil A, kerosene：Volume used at oﬃces and factories■ Natural energy：Amount of energy generated by solar
power and small hydropower■ Gasoline：Amount used in testing andtravel/transportation■ LPG, diesel oil：Volume used at oﬃces and factories,
for testing and travel/transportation

Factors used to
calculate CO2
Japan Auto Parts
Industries Association(2001)

Purchased electricity

369.92 GWh

Natural energy

210,000 kWh

Recycling
Landﬁll/incineration

Research, design,
manufacturing,sales：Volume of substances emitted into air
and water for which reports have been
issued by eachregion

Air

141 tons

Water

0.5 tons

City gas

16.21 milliom m3■ CO2 Emissions

LPG

8,015 tons

■ Oﬃces and factories, testing, and travel/transportation：Volume of CO2 emitted through the useof electricity, city gas, etc.

Gasoline

793 kL

Diesel oil

74 kL

Oﬃces and factories

Purchased
0.33㎏-CO2/kWhelectricity

Kerosene

11 kL

Testing

City gas 2.558㎏-CO2/㎥■ Water

LPG

3.007㎏-CO2/㎏
2.712㎏-CO2/L

Ordinance guidelines on
calculating greenhousegas emission volumes
resulting from businessactivities of designatedemitters

144 tons■ Air, Water

0 kL

Heavy
oil A

16,680 tons

■ Chemical substances (PRTR)

Heavy oil A

CO2 conversion factor

45,403 tons

Travel/transportation■ Tap water：Volume of tap water used
■ Well water：Volume of underground water used
■ Recycled water：Volume of water reused after
puriﬁcation on the premises

Tap water

187,659 tons
1,541 tons
516 tons■ Air■ SOx：Emission volume from incineration
facilities, etc.
Reuse/RecycleSOx

0 tons■ Wastewater

992,206 m3

Gasoline 2.32㎏-CO2/L■ Wastewater：Volume discharged intosewer and public waters■ Evaporation, etc.：Volume of evaporated
coolant, etc., excluding wastewater

Diesel oil 2.62㎏-CO2/L

Wastewater

CO2 conversion factor

Calculation of emission
volumeFor manufacturing sites
with no equipment tomeasure wastewater
volumes, the total
volume of tap water
and well waterused is indicated aswastewater.

33

CSR Report 2011

Well water
Recycled water

3

879,603 m

3

848,629 m

Evaporation, etc.

■ Energy■ Diesel oil, heavy oil B/C, jet fuel：Amount used for shipping by trucks,
ships and aircraft (including outsourced
shipping)

Diesel oil

1,003 kL

Heavy oil B/C

1,761 GJ

Jet fuel

930 GJ

1,362,672 m3
509,137 m3■ CO2 Emissions
Logistics■ Transportation：Volume of CO2 emitted
through the use of diesel oil, etc.
(including external consignment)

Transportation

Customers

2,775 tons

＊Including inter-factory shipments

Environmental Report

Environmental Management
Promotion system
To conduct systematic and eﬀective environmental

Status of system operation is conﬁrmed through internalpreservation

activities,

environmental

wemanagement

have

establishedanaudits, and at the same time, the central and regional

systemfollowingtheenvironment

committees

check

progresstowards

environmental policy shared by the entire Group, andachieving our goals and endorse challenges for eachevery member of the Group is striving to achieve ourgroup/region/division/department to facilitate continuous

Eco Vision.

improvement.

■ Environmental Activity Promotion Organization
President
Environmental
Administrators
Central Environment
Committee Chairman

Central Environment
Committee

Chief Environment
Administrator
Internal Environmental
AuditorCentral Energy Saving
Expert Committee
Central Waste
Subcommittee

Environmental ISO
BureauEducation for internal environmental
auditors

Chemical Substance
Subcommittee
Green Procurement
Subcommittee＊ Each region refers
to the Head Oﬃce Region,
Komaki Region, Miyanojo Region,
Ise Region, and aﬃliates

Environment
Committee

Energy Saving
Expert Committee
Waste Subcommittee<Each region>

Central Environment Committee Meeting

Status of system establishment

W

W eb
ISO 14001 certiﬁed sites

We received ISO 14001＊1 consolidated certiﬁcation for＊1
ISO14001
An international
standard forenvironmental
management systems.
Business sites that haveestablished systems inaccordance with thestandard can receive
certiﬁcation from anexternal organization.

NGK Spark Plug and ten domestic aﬃliates.
Overseas corporations are currently being encouraged
to seek individual ISO 14001 certiﬁcation; NGK Spark
Plugs (India) Pvt. Ltd. was certiﬁed in December 2010.
There are now 13 overseas corporations with ISO
14001 certiﬁcation. Certiﬁcation for the entire employee
body of the Group, including both domestic and

ISO External Auditing

overseas sites, has reached 98%.

NGK Spark Plugs (India) Pvt. Ltd.

Environmental Education

W

W eb
Number of publicly
certiﬁed personnel andinternal auditors

We conduct environmental education for each rank toincrease the environmental awareness and knowledgeof our employees.
In addition, we familiarize people with our environmental
policy using the Environment Card, provide environmental
information via company newsletters and the in-houseelectronic announcement system N-WING, and present
case examples on the Environment/Safety/Health website.

Environment Card

The annual Health, Safety and Environment Conference
held in ﬁscal 2010 in each region presented panel andsample exhibits, which were participated in by many
employees.

Health, Safety and Environment Conference

CSR Report 201134

Environmental Report
Environmental Management

Environmental Risk Management＊1
Accounting standards
relating to asset
retirement obligations
Upon disposing of
tangible ﬁxed assets
such as buildings, it
is now mandatory foritems which the law
requires to be removed
be accounted for as
liabilities. Examples
include expenses for thetreatment of asbestos,soil surveys, anddecontamination.
＊2
Soil Contamination
Countermeasures Act
The purpose of thisact is to apprehend
situations of soil
contaminationand prevent thecontamination having
a harmful eﬀect onhuman health. The Act
underwent substantial
revision in April
2010 with additional
provisions regarding
the apprehension ofsituations and actions
to be taken, including
a requirement to notify
changes in the characterof land 3,000 m2 or
more in area.
＊3
PCB
PolychlorinatedBiphenyl. Was widelyused as insulating oil
and for other purposesdue to its high insulating
ability and chemical
stability, but being
highly toxic to people,
its production and use is
now prohibited.
＊4
Asbestos
A ﬁbrous mineralthat had been widelyused as an insulator.
Inhalation may causelung cancer andmesothelioma tumors.

Inherent in business activities are various risks including■ Preventing Chemical Leaks

environmental incidents and pollution. NGK Spark PlugTo avoid pollution of soil or water from chemical leaks,

Group identiﬁes these risks and endeavors to reduce

we take various measures at our facilities including

and/or prevent them.

double-layering storage tanks to prevent leakage andleaks, and conduct regular inspections.

We clarify our soil surveying method, auditing period,and evaluation standards to prevent soil or underground■ Handling of Asbestos＊4

water pollution. We meet the accounting standards

We have been taking appropriate measures to prevent

relating to asset retirement obligations＊1, and comply

health hazards from asbestos. All asbestos used in ourwith the Soil Contamination Countermeasures Act＊2

facilities has been completely removed. Some asbestos

revised in April 2010.

is still present in buildings as insulators, and we willcontinue to adhere to stringent control measures.

■ PCB＊3 Control
Waste materials containing PCBs are stored at the Head

■ Drills for Emergency Situations

Oﬃce Factory, Komaki Factory and Nittoku Seisakusho

We hold regular drills for emergency situations toCo., Ltd.. We will continue to adhere to stringent control

prepare for unforeseen accidents, etc. Pollution isprocedures until the day waste containing PCB can beprevented by projecting possible incidents in eachdisposed of in a proper manner.

department as well as the impact of such incidents.

■ On-site Conﬁrmation of Waste Material Treatment
We regularly visit our waste disposers to conﬁrm thatconsigned waste materials are being processed inaccordance with our agreement. In ﬁscal 2010, we
visited 48 companies.

Drill on setting up an oil fence

Absorbing drill
using absorption mat

Compliance Status

W

To ensure compliance to environmental laws andregulations

as

well

as

agreements

with■ Numbers of Violations and Complaints

local

Violations(cases)Complaints

municipalities, etc., we set stringent voluntary standards
2008

2009

2010

2008

2009

2010

NGK Spark PlugCo., Ltd.

ﬁscal

0

0

0

8

2

3

Aﬃliates

1

1＊

1

1

2

1

to prevent violations and complaints.
There were no violations of legal limits or agreement
limits in ﬁscal 2010, but there were four complaints onnoise. We handled the complaints promptly, and took
measures to prevent any recurrence.

＊We discovered that there was an unnotiﬁed case involving an aﬃliate(situation remedied) in ﬁscal 2009, and therefore we scored 1 forviolation.

■ Handling violations and complaints in ﬁscal 2010
Classiﬁcation

W ebrunning pipes aboveground for prompt detection of■ Soil Survey

Violations

Data on air, water
quality, noise andvibration

Factory/Company

Situation

Countermeasure

Tokai Taima Kogu
Co., Ltd.

Had not submitted the Status Report on
Industrial Waste Control Documentation
Issuance, etc. to Nagoya City.

Submitted late.

Komaki Factory

Malfunctioning of the decompression valve ona steam boiler activated the safety valve,
generating noise.

The decompression valve was replaced andthe boiler was moved inside soundproof
walls.

Komaki Factory

A defective bearing on the driving part of thedust collector was generating strange noises.

The bearing was replaced.

Komaki Factory

Work involved in removing facilities wascreating loud noises and vibrations.

Removal method was changed.

Nittoku Seisakusho
Co., Ltd.
(Head Oﬃce Factory)

Normal facility operation was generating aknocking noise.

Automatic doors were installed inside theworkplace (inside the building) so that thedoors always remain closed.

Complaints(noises)35

CSR Report 2011

Environmental Report

Environmental Accounting
What

is

importantinpromotingW

environmental

management is to gain a grasp of the costs andpreservation measures was 274 million yen on a non-Value of environmental
preservation impact

consolidated basis.

eﬀectiveness of environmental preservation activities.
We have been adopting environmental accounting since

Calculation Method

1999, and in 2003 the accounting scope was expanded

Environmental preservation costs are proportionallyto include the entire Group.

calculated by categorizing items in conformity withEnvironmental preservation costs for ﬁscal 2010 totaled

the guidelines issued by the Ministry of the8,035 million yen on a non-consolidated basis, andEnvironment of Japan, then prorating in accordance

8,804 million yen for the Group. This was an increase ofwith the rules of the NGK Spark Plug Group, created

32% compared to ﬁscal 2009. The eﬀect of environment■ Transition of Environmental Preservation Costs (Group)＊Excluding Nittoku Alpha Service Co., Ltd.

and Value of Preservation Impact (non-consolidated)
Value of impact (million yen)
600

Expenses

485

10,000

388
8,122

5,000

1,636
0

2006

Costs (million yen)
15,000Investment
Value of impact

11,007
426
8,937
9,580
8,960

9,758

400
284

8,035
7,581

6,110
5,854

274

10,000

Expenses

11,631
9,453

10,456
8,660

200

620

256

454

2009

2010
(Fiscal year)

10,068
9,435

8,804
8,297

5,000

2,178

1,796

2008

Investment

6,662
6,391

2,070

2007

0

0

2006

2007

633

271

507

2008

2009

2010
(Fiscal year)■ Value of Environmental Preservation Impact (non-consolidated)(million yen)Content of impact
Earnings

Cost
reduction

Quantity ofenvironmental
preservation impact

based on actual direct investment and expenses.

■ Trends in Environmental Preservation Costs
Costs (million yen)
15,000

W eb
Environmental
preservation costs

AmountBusiness earnings from recycling waste generated during business activities, used products, etc.

222

Cut in energy costs by conserving energy

45

Cut in water costs by conserving water2

Cut in waste disposal costs by conserving resources and recycling

5
274

Total

Eco-eﬃciency ＊1
We calculate eco-eﬃciency by ﬁnding net sales per unit

■ Trend in eco-eﬃciency (non-consolidated)of CO2 emission and generated waste and endeavor to(Fiscal 2001 = 100)

improve it.

160

This is because the volume is being controlled for both

143

140

138
128
120

120
108

CO2 emissions and waste generation despite the100

increase in net sales.

Waste Index
155

Fiscal 2010 saw an increase in both the CO2 index andthe waste index compared to the previous ﬁscal year.

CO2 Index

100 100

98

98

2006

2007

113

＊1
Eco-eﬃciency
Index on rate of
economic value against
environmental burden
accompanying businessactivities. The larger theﬁgure, the better.
Eco-eﬃciency
Net sales＝
Environmental burden＊ Due to changes in
the main system, thenumerator has beenchanged from addedvalue production to
net sales.

104

80
60

CO2 Index ＝Net sales40

CO2 emission volume by production

Waste Index ＝Net sales
Volume of waste

20
0

2001

2008

2009

2010
(Fiscal year)

CSR Report 201136

Environmental Report＊1

Global Warming＊1
Global warming
Phenomenon where
the average global
temperature isincreasing due to ahigher concentrationof greenhouse gasesthat trap heat in theatmosphere and heat
the surface of the Earth.

Voice

Basic Philosophy
Corporate energy strategies are becoming increasingly
important due to intensiﬁcation of climate changes(global warming) as well as power supply concerns dueto the Great East Japan Earthquake. Against thisbackdrop, energy conservation can be conducted on
various scales, from an entire factory to process, facilities,
and even at the level of the individual employee.
The Energy Conservation Promotion Section andother sections will therefore implement long-term
countermeasures, and with additional energy conservation

Abnormal climates occurring all around the world andthe inﬂuence of power shortages on our daily lives are
just a couple of examples of what makes us realize
the importance of conserving energy. The Energy
Conservation Promotion Section was established last
July to promote all-company activities for CO2 reduction.
We hope to promote CO2 reduction activities for theentire Group, domestic and international, with a
global perspective so that we may
pass on to future generations a
comfortable living environment
on Earth.
Masato Nagasaki
Deputy General Manager
Energy Conservation Promotion Section

activities on a daily basis, we hope to achieve our Eco
Vision 2015 by concerted eﬀorts by all Group members.

Results of the Fiscal 2010 Targets and Eco Vision 2010
＊2
Act on the Rational Useof Energy
Established in 1979,
triggered by the oilcrisis. Measures are
stipulated for four
categories of factories,
etc: transportation,buildings, and machineryand equipment.
Amendment in 2008changed the base of
the control system forenergy management
for factories, etc. fromfactories/business sites
to business operators(companies). Those
consuming 1,500 kL(crude oil equivalent)or more of energy aredesignated as Speciﬁed
Business Operators, andare required to appoint
an Energy Management
Control Oﬃcer, makebasic unit improvements
to an annual average of
1% per year.
＊3
Law Concerning thePromotion of the
Measures to Cope with
Global Warming
Under the System forGreenhouse Gases
Computation, Reportingand Publication,businesses emitting
3,000 tons (CO2equivalent) or more ofgreenhouse gases are
required to report theiremission volumes.
＊4
Greenhouse gases
Gases that cause global
warming. The Kyoto
Protocol designates
carbon dioxide,
methane, nitrous oxide,hydroﬂuorocarbons,
perﬂuorocarbons, andsulfur hexaﬂuoride.

37

CSR Report 2011

The CO2 emission volume for ﬁscal 2010 was 188,000

recovery from the economic recession in ﬁscal 2008.

tons (10% increase from previous ﬁscal year); neither■ Fiscal 2010 Targets and Results

the ﬁscal 2010 target and Eco Vision 2010 were achieved.
This was due to increased production with the businessexpansion after the formulation of Eco Vision, and■ Transition of Emission Volume of Energy-Origin CO2(Oﬃces and Factories)

Non-consolidated
Basic unit

0.876
20.89

15

30

1.2

1

0.811
18.75 0.8

0.708

0.6

2.95

22.64
3.18

2.52

21.75
20.11

11.56

12.23

0.4

3.00

15

10

Eco-vision 2010 150,000 tons

0.2

2001

2007

2008

2009 2010(Fiscal year)

0

5

0

Asia
28%
South
America
49%

3.02

19.59 20.89 19.46 17.09 18.75

5

1990

23.84
22.11

20

Africa North
America2%
20%

Domestic Group
Overseas Manufacturers
and Distributors

25

13.81

11.82
7.01

0

■ Trend in CO2 Emissions

Group

19.46
17.09
14.57

10

188,000 tons

CO2 Emissions (10,000 tons-CO2)

0.829 0.828

20
16.36

176,000 tons or less

Basic unit
(tons-CO2/million yen)

Fiscal 2010 Target: 176,000 tons

25

Results(Domestic Group + Overseas Manufacturers & Distributors)

CO2 Emissions(10,000 tons-CO2)
30

Group

Target(emission volume)

2006

2007

2008

2009 2010(Fiscal year)

Europe1%＊For purchased
electricity, the GHG
protocol CO2
emission coeﬃcientfor each country isused.
For fuel, the same
coeﬃcients as inJapan are used.
(See P33)

Fiscal 2015 Target and Fiscal 2011 Target
Eco Vision 2015 sets both total volume targets andFor ﬁscal 2011, target managers will be appointed forbasic unit targets to control CO2 emissions while

each division, and a thorough inspections of air leaks andforeseeing an increase in production, and uses ﬁscal

energy conservation patrols will be conducted in order2007 as the standard year, a year with a business format

to achieve the targets. Eﬀorts to prevent global warming

close to that of today.

will also be continued at overseas corporations.

Act on the Rational Use of Energy＊2 and the Law Concerning thePromotion of the Measures to Cope with Global Warming＊3
Energy consumption by NGK Spark Plug Co., Ltd. and

The emission volume of greenhouse gases＊4 excluding

three aﬃliated companies exceed 1,500 kL (crude oil

energy-origin CO2 by NGK Spark Plug Co., Ltd. totaled

equivalent), and have therefore been designated as

894 tons (CO2 equivalent), which is a 51% decrease

Speciﬁed Business Operators under the Act on thefrom the previous ﬁscal year. Since it did not reach 3,000

Rational Use of Energy. Each designated company has

tons, reporting was not required under the Law

appointed an Energy Management Control Oﬃcer andConcerning the Promotion of the Measures to Copean Energy Management Planning Promoter to oversee

with Global Warming, but we will continue to calculateenergy conservation.

and control our emissions.

Environmental Report

Energy conservation duringtransportation

Energy conservation in the oﬃce
Starting from turning oﬀ lights and computers during

As Speciﬁed Consigners under the Act on the Rational Useof Energy we are making eﬀorts to reduce CO2 emissions
during transportation. We reviewed our transport of waste
in ﬁscal 2010, but the cargo shipment volume totaled
44,305,000 ton-km (15% increase from the previous ﬁscal)and so the target was not achieved. The CO2 emission
volume was 2,773 tons (15% increase from the previous
ﬁscal). In Eco Vision 2015, we hope to make an 8%
improvement in basic unit compared to ﬁscal 2007.

breaks, we conserve energy in various ways, including
implementing our coolbiz and warmbiz campaigns (tosave energy used for air conditioning and heating),
setting the thermostat at 28 degrees Celsius in thesummer and 20 degrees Celsius in the winter.
Also, bitter gourds, pumpkins and gourds have beengrown on the southern side of the administrative wing of
the Miyanojo Factory since ﬁscal 2008 to create green
curtains＊1,

reducing

power

consumption

for

air

conditioning in the summertime.

■ Transition of CO2 Emissions As Consigner
Basic unit
(kL/100 million yen)

CO2 Emissions(tons-CO2)
5,000
4,000

0.435
3,550

0.5

0.444
0.467
3,480

0.453

2,910

3,000

2,490

0.451

0.4

2,773

0.3

2,000
0

＊1
Green curtain
Natural curtains createdby creepers growing
along the windows.
They help to lower theroom temperature byshielding it from direct
sunlight and they havea cooling eﬀect due toplant transpiration.

0.2

2006

2007

2008

2009

2010
(Fiscal year)＊Including shipments outsourced to freight companies

Green curtain(currently growing)0

Use of natural energy
We promote the use of solar power, a natural energy.＊2
Head Oﬃce Factory has three solar power generator
units and one solar water heater. The Komaki Factory
has a large-scale solar power generator unit that cangenerate a maximum of 107 kW of electricity. Powergenerated in ﬁscal 2010 totaled 173,000 kWh, whichequaled a reduction of 57 tons of CO2.

Participationin the lights-down campaign
We support and participate every year in the CO2
Reduction Lights Down Campaign conducted by the
Ministry of the Environment.
For ﬁscal 2010, we turned oﬀ lights in 16 locations on＊2
Natural energy
Energy obtained fromsunlight, solar heat,
wind, water, biomass,tide, geothermal heat,snow/ice energy, etc.

June 21 (summer solstice) and July 7 (Tanabata Festival)from 8 pm to 10 pm; advertising towers and displays at
our factories and business sites were turned oﬀ, and we
also asked sales shops to turn oﬀ ad displays of ourcompany at their storefronts.

Solar panels (Komaki Factory)

NormalTurned oﬀ┃PICK UP┃
Energy conservation by rethinking operation of the cafeteria ventilation fan - Komaki Factory
The No. 1 cafeteria at the Komaki Factory used to60, resulting in an annual CO2 emission reduction ofhave its aeration and exhaust fans turned on at all

10.3 tons.
Suntimes except on Sundays. We thought we may be able
to conserve energy by controlling their operating
modes during the hours when no one was there.
Inverters were installed to control the operating modeso that when the cafeteria lights are turned oﬀ, the

Mon

Tue

Wed

Thu

Fri

Sat

Before thechangeAfter thechangeNormal mode

Energy conserving mode

Stoppedspeed of the aeration fans slows down and someexhaust fans automatically stop.
This energy-conserving mode coordinated with lighting
reduced the weekly normal mode hours from 142 to

Cafeteria with lights out

CSR Report 201138

Environmental Report

Waste
Basic Philosophy
The NGK Spark Plug Group aims to use resources to the maximum, and therefore works ﬁrst and foremost to reducethe volume of waste generated, and to recycle what is generated.

Results of the Fiscal 2010 Targets and Eco Vision 2010
In ﬁscal 2010, the Group aimed to reduce waste by 794■ Fiscal 2010 Targets and Results

tons. However, the yield rate of the organic packaging
process, which was expected to contribute signiﬁcantly
to that reduction, did not improve as planned, resulting

Eﬀective utilization
rate ＝reuse + recycle（

reuse + recycle ＋
landﬁll and incineration）

678 tons

Volume generated(tons)
0.097

The eﬀective utilization rate was 99.2% and we have

20,000maintained zero emissions since ﬁscal 2005. In addition,

15,000

0.09

0.078

10,000to reduce recycling residues.
0

2006

2007

2008

Non-consolidated
Group

Fiscal 2015 Target andFiscal 2011 Target
The Eco Vision 2015 set an basic unit target that would(including valuable resources).
For ﬁscal 2015, the target basic unit is 0.068 tons/million
yen (30% reduction compared to ﬁscal 2007). Also, thetarget for ﬁscal 2011 is 0.072 tons/million yen (26%reduction compared to ﬁscal 2007); to achieve this, we

2009

Basic unit

0.08

0.073

0.07

16,81916,819 tons, a 2% reduction compared to ﬁscal 2003.

25,00029,83730,00026,052

total volume of waste generated in ﬁscal 2010 was

0.10

0.093

0.098

16,137as to reduce the environmental burden from waste. The

12,88435,000

Basic unit
(tons/million yen)

21,771of waste generated, and to reduce recycling residues so■ Transition of volume of waste generated

12,938With Eco Vision 2010, we aimed to reduce the volume

result in a decrease in the volume of waste generated≧ 98％

794 tons

Group

28,855our target.

we reviewed our waste disposers and disposal methods
Deﬁnition of Zero
Emissions
As deﬁned by thisCompany, when theeﬀective utilization rateof industrial waste andgeneral waste frombusiness activities is
98% or higher.

Resultin a total reduction of 678 tons and we did not achieve

27,040Deﬁnition of Eﬀective
Utilization
As deﬁned by thisCompany, identifying
value as a resource,
reusing or recycling(including heatrecovery) generated
waste. Also includes
selling the resulting
valuable resources.

Target(volume of reduction)

19,502W eb
Volume of waste
generated at eachbusiness site

W

2010
(Fiscal year)

Yoshinori Nakamura
Group Leader
Environment & Safety
Management Department

life.

┃PICK UP┃
Reusing collected scrap by redesigning the dust collector - Komaki Factory
Beforeredesign

dust collectors. To reuse the collected scrapings as

No.1 unit

No.2 unit

No.3 unit

Material
Material
A Material B

Material
A

Material
A

Material
B

Material
B

No.4 unit
MaterialAC

raw material, it is essential that no other materials are
mixed in. To ensure this, we were only reusing the
scrapings collected by No. 4 unit.
Now, we have redesigned the ducts and concentrated
collection of material B for No. 1 unit so that No. 2 andNo. 3 units now collect only material A. This has madeit possible to also reuse the scrapings collected by No.
2 and No. 3 units, resulting in a reduction of 87 tons
(64%) of waste per year.

39

CSR Report 20110

I am in charge of waste management at the Komaki
Factory Recycling Center. We specify the methods ofwaste separation and disposal sites for the waste
generated by each department, and ensure that
separation and disposal are carried out correctly.
When we hand over the waste to the collectors, weissue manifests and ask them to make sure that they
dispose of the waste properly. We also make visits tothe waste management companies
to check on their disposal facilities,etc.

amount of chemicals used as well as extending the productmaterial, scrapings of the material are collected in the

0.05

Voice

will work to reduce the volume of waste by reducing theDuring the process of pressing and scraping alumina

0.06

After
redesign

Disposed

Disposed

Disposed

ReusedNo.1 unit

No.2 unit

No.3 unit

No.4 unit

Material
Material
A Material B

Material
A

Material
A

Material
A

ReusedReusedReusedC

Disposed

Environmental Report

Water Resource
Basic Philosophy
The NGK Spark Plug Group recognizes that water is an important resource, and is making eﬀorts to reduce the volumeof tap water and well water used in our business activities.

Results of the Fiscal 2010 Targets and Eco Vision 2010
The Group aimed to reduce our water consumption by■ Fiscal 2010 Targets and Results

9,755 m3 for ﬁscal 2010. Our eﬀorts proved extremely
successful with a reduction of 46,075 m3, far surpassing
the target.

Target(volume of reduction)

Result

9,755m3

46,075m3

Group

Eco Vision 2010 aimed to utilize water resource
Volume used
(10,000 ㎥)

Basic unit(㎥/million yen）

100
0

2006

7.58
2007

Fiscal 2015 Target andFiscal 2011 Target
Eco Vision 2015 sets basic unit targets to reduce theamount of water used.
For ﬁscal 2015, the target basic unit is 6.98 m3/million
yen (8% reduction over ﬁscal 2007). For ﬁscal 2011, we
will aim for 7.77 m3/million yen (2.5% increase overﬁscal 2007) by improving the eﬃciency of the platingprocess, rethinking the cooling devices, etc. to reduce

179

2008

Non-consolidated
Group

8.09
119

7.05

8.66
214

216
190

182

200
150

10

9.12

a 3% reduction over ﬁscal 2003.

187

250

132

volume of water used in ﬁscal 2010 was 1,870,000 m3,■ Trends in volume of tap water/well water used

224

and well water used in our business activities. The

184

eﬀectively by reducing the total amount of tap water

2009

Basic unit

9
8
7

2010
(Fiscal year)

0

Voice
We supply well water and tap water to Komaki
Factory. Well water is pumped from an undergroundwater source and sent to the factory after removing
iron, manganese, and other minerals. Tap water isstored in a tank ﬁrst before being sent to the factory;
this is also used as drinking water, and therefore wetake special care with water quality management.
We maintain the facilities to ensurethat there is a steady andundisrupted supply of both well
water and tap water.

the water usage.

Katsuji Sakai
Production Support Engineering
Department┃PICK UP┃
Conserving water by installing bypass piping - NTK Ceramic Co., Ltd.
Iijima Factory circulates cooling water.
Water is pumped separately into the ﬁrst ﬂoor systemand the second ﬂoor system, but since the water
volume was not enough at the far ends of the ﬁrst ﬂoor

Before the change

After the change
Bypass piping
2F
Heat
Facility
exchanger

2F
Facility

system, it was supplemented with well water. However,

1F

since this is a circulating system, the well water added

Facility

Heat
exchanger

1F
Heat
exchanger

Facility

Heat
exchanger

made the cooling water tank overﬂow, losing water.
On the other hand, the water volume on the second
P P

ﬂoor system was more than suﬃcient.
To solve this problem, we installed bypass piping
connecting the ﬁrst and the second ﬂoor systems,
giving suﬃcient water volume over the entire ﬁrst ﬂoor

Overﬂow

Well
water
Cooling
water tank

P P

Cooling
water tanksystem. It is no longer necessary to add well water,
resulting in a reduction of 24,000 m3 in well water
usage per year.

CSR Report 201140

Environmental Report

Substances of Environmental Concern＊1
REACH Regulation
Regulation concerning
the Registration,
Evaluation,
Authorisation andRestriction of Chemicals.
It is a comprehensive
chemicals regulation
for manufactured orimported substancesand substances
contained in products,
eﬀective from 2007 in
the EU.
＊2
IMDS
International Material
Data System thatcollects information
on materials used andsubstances containedin approximately
30,000 automobile
components＊3
JGPSSI
Japan Green
Procurement Survey
Standardization
Initiative. A council
comprising voluntaryelectrical andelectronic equipment
manufacturers
aiming to share
surveys on chemical
substances containedin components andmaterials＊4
AIS
Article Information
Sheet provided
JAMP (Joint Article
Management Promotion
Consortium), used toconvey information on
chemical substances
contained in products

Basic Philosophy
We have a three-step management system for handling
substances of environmental concern: ①Answering＊7
PRTR substances
Chemical substances
designated in the
Act on Conﬁrmation,etc. of Release
Amounts of Speciﬁc
Chemical Substancesin the Environment
and Promotion of
Improvements to theManagement Thereof.
This Act stipulates asystem for determining
and notifying theamounts of speciﬁc
chemical substances
released into theenvironment.

41

CSR Report 2011

We conduct non-containment
substances of environmental

requests from customers, ②Handling within the Group,and ③Procurement from suppliers.
customer requests. More than that, we aim to reduce

Non-containment
management for products

the use and emission of substances of environmental

To satisfy customer reguests and regulation such as

Naturally we ensure compliance with laws and fulﬁll

concern so as to minimize their eﬀect on thethe ELV Directive＊5, RoHS Directive＊6 and REACH

environment and human health.

Regulation of the EU, we assign hazard ranks tosubstances of environmental concern. With handlingstandards for each rank, we carefully manage noncontainment and reduce their use.
■ Management system
Customer request

Customers

Legal regulation

Information acquisition

With the reinforcement of regulations on

Information control

chemical substances contained in products,
requests from customers in the automobile,

Hazard rankelectrical and electronics industry regarding
improved compliance are increasing. The
REACH Regulation＊1 of the EU has triggered

Control of amountto be used

Control of content
on products

an increase in the status of chemical
substances contained in products; we aretakingall

includingtheappropriate

submissionofmeasures

Non-Containing

Managing use in factories

Declarations, IMDS＊2 and JGPSSI＊3 survey

Our factories aim to reduce emission of PRTR

and response tools, submission of various

substances＊7. Eco Vision 2010 aimed for emissions

handlingof 36 tons or less, but despite the increase ininvestigations and audits regarding our

production from ﬁscal 2002 (standard year),management systems.

implementation of the toluene recovery equipment

data

with

＊4

AIS ,

etc.,

and

did not progress smoothly, and we did not achieve＊5
ELV Directive
End-of-Life Vehicle
Directive. Directive
stipulating recycling
rate of end-of-life
vehicles and regulated
substances, eﬀectivefrom 2002 in the EU.
＊6
RoHS Directive
Directive on the
Restriction of the Use
of Certain Hazardous
Substances in Electricaland Electronic
Equipment. Became
eﬀective in 2006 in
the EU.

Group

the target. The target in Eco Vision 2015 is set atemissions of 43 tons or less (80% reduction overﬁscal 2007).

┃PICK UP┃
Voice
Restrictions regarding substances of environmental
concern are becoming increasingly severe. To copewith this situation, it is essential for all employees in
the Group to have the same level of awareness; one
mistake could result in a grave quality and/or
environmental problem.
The Environment & Safety Management Department
maintains the mechanism to cope with legal
restrictions and customer requests, and sharesinformation mainly through the Chemical Substance
Subcommittee. We will continue to enhance ourmanagement methods to ensure that we can handle
a variety of possible scenariossafely.

Reducing emissions by substituting xylene- Komaki Factory
Komaki Factory has been trying to reduce
emissions of toluene and xylene, and in theeﬀorts to reach their targets, the challenge wasto reduce emissions of xylene in the solder
printing process of the organic package.
After thorough testing to stop the use of xylene,
we were able to ﬁnd a chemical that can beused as a substitute, and completed thesubstitution process at the end of January. With
this, the volume of toluene and xylene emitted
by the Komaki Factory was reduced to 2.5 tons,

Hidetoshi Ogawa
Deputy General Manager
Environment & Safety
Management Department

and our target was achieved.

Environmental Report

Suppliers

management for products and control the use ofconcern in our factories.

To manage chemical substances containedin products appropriately, it is imperativethat we gain the cooperation of our■ Hazard rank
Hazardrank

suppliers. For this reason, we issue ourHandling standard

Substances covered

Green Procurement Guidelines to request

Prohibited
Use is prohibited.
substances

Substances prohibited fromuse or strongly restricted byregulations.

that

Safer substitutes will
be sought, while
Restrictedmaking eﬀorts tosubstances
reduce the use ofcurrent substances.

Hazard level and toxicity areequivalent to prohibited
substances, but an immediatechangeover is impossible due
to its special characteristics.

with green procurement.

Supplies need to be
examined to ﬁnd
Monitored
existence/
substances
non-existence of
applicable substances.

Those not prohibited or
restricted but that requiremonitoring.

ourcarefully

suppliersandmanagesubstances

cooperateW

W eb
Green Procurement
Guidelines（Japanese Only）

Green Procurement Guidelines（Japanese Only）■ The green supplier system
We certify suppliers that meet system■ In-house analysis of substancesof environmental concern

standards and material standards as green

To conﬁrm the containment status of substancesof environmental concern in our products, our inhouse analysis center conducts a partial analysis
of substances of environmental concern containedin products to prevent the release of nonconforming
products.

suppliers, and give them priority.
In ﬁscal 2010, we re-screened our raw
material

suppliers,

components

andpackaging materials for certiﬁcation or
renewal; we now have270 certiﬁed suppliers.

W eb

W■ Emission volume of PRTR sub
stances (non-consolidated)■ Emission volumes of
PRTR substances (group)

Emission volume(tons)
20.1
20

Emission volume(tons)

Other
XyleneToluene

16.6

200
179

15

10

10.6

13.3

0.5

150

12.9

124
100
12.3

5.9

1.7
0

6.4

9.1

5

2.0

0.4

153
1
131
18
2
11

141
5
9

133 118

128

182

0.1
50

3.5
0.5
2.3

0.4 0.5

Other
XyleneToluene

213
12
19

0.7

2002 2007 2008 2009 2010
(Fiscal year)

PRTR data for eachbusiness site
Certiﬁcation■ Certiﬁcation standards
System standards

Material standards● Third-party
certiﬁcation
under theenvironmental
management
system● Non-containment ofdesignated substances on
our prohibited list
(Raw materials,
components, packaging
materials)● Reporting on containment
status of prohibited
substances(Facilities, tools)● Implementing measures toprevent commingling of
hazardous materials(Outsourced operations)

OK

OK

9

Fiscal 2010 Target 36 tons or less
45
02002 2007 2008 2009 2010
(Fiscal year)■ Volumes of toluene and xylene emitted
by Komaki Factory
Emission volume(tons)
5

4.9
0.4
0.6

4

3

TolueneXylene (Other)
Xylene (solder printing)

2.9
0.3

4.8
0.3
0.2

TargetCompared to ﬁscal 2007, reduction of 10% = 2.6 tons

0.4
2Green suppliers

2.5
0.6

3.9

4.2

0.1

■ Support for our suppliers
We support our suppliers in establishing
their environmental management systems.
So far, we have received requests from 34

1

2.2

1.8

companies, and of those, 33 acquired ISO
14001 or EcoAction 21＊1 certiﬁcation. We

0

2007

2008

2009

2010
(Fiscal year)

will continue to support the remaining one
company.

＊1
EcoAction 21
An environmental
management system.
This system is designedby the Ministry of theEnvironment for small
to medium businesses
to provide ISO14001
accreditation at alower cost as well as
inspection/consultation.

CSR Report 201142

Environmental Report

Environmentally Friendly Products
Basic Philosophy
The NGK Spark Plug Group aims to contribute toare also endeavoring to produce environmentally

improving the global environment through its products

friendly products by controlling the amount of energy

by making eﬀorts to reduce the environmental burden

involved in using and disposing of the product bythroughout the lifecycle of its products, from raw

customers and ensuring that they do not containmaterial procurement to product disposal.

substances of environmental concern.

Aside from eﬀorts to reduce CO2 emissions and waste
during the manufacturing and distribution processes, we

Product assessment
To reduce the environmental burden from procuring,

Duringusing and disposing of raw materials, it is important tosubstances of environmental concern, the amount ofpredict the environmental impact at the design stage,energy used, etc. are conﬁrmed at each of the design,and to take prompt countermeasures when any negative

manufacturing/distribution, use, and disposal stages. If

impact is foreseen. To ensure this, we conduct productthe assessment determines that there is a signiﬁcantassessments when we develop new products or change

environmental impact, countermeasures will be taken

the speciﬁcations of existing products.

before development is continued.

Design stage● Is the product free ofsubstances ofenvironmental concern?
● Is it designed to conserve
more energy thanconventional products?

Manufacturing/
distribution stage● Is the manufacturing
process free of substancesof environmental concern?
● Is the amount of energy
used and waste generated
during manufacturing/
distribution less than forconventional products?

aproduct

assessment,

Use stage

theexistenceof

Disposal stage● Is the impact ofenvironmental pollution
during use smaller than forconventional products?
● Is the energy consumed
during use less than forconventional products?

● Is the product free ofsubstances ofenvironmental concern
during disposal?

Reducing environmental burden throughout the lifecycle
To reduce the environmental burden throughout theassessment allows us to clarify present problems andentire lifecycle of a product, we conduct an LCA (lifetheir magnitude, and enables us to take appropriate

cycle assessment) on our key products.

measures.

LCA is a method giving an objective assessment of the

In the future, we will train our engineers in LCA, and by

impact on global warming and resource depletion

incorporating LCA into product assessment, we aim tothroughout the entire lifecycle of a product. Making a

reduce the environmental burden over the entire

more

product lifecycle.

comprehensive,

scientiﬁcandquantitative┃PICK UP┃
Development of the premium RX plugOval-shaped groundelectrode

The new premium RX plug is a next-generation spark
plug with a maximized total performance.

Projected platinum tip

We have adopted a new material for the ruthenium-

Ruthenium-containing
central electrodecontaining central electrode, and at the same time,
modiﬁed the ground electrode shape to give it aprojected platinum tip. This improves the ignitability
performance, as well as comprehensively improving
other performance aspects including fuel eﬃciency,
anti-fouling performance and life. With lower fuelconsumption. we can expect reduced CO2 emissions
during use, an important lifecycle stage.

JC08H mode fuel eﬃciency (km/L)
Premium RX
plug

11.58

Iridium plug

General plug

11.46
11.33

Test vehicle: 2,400 cc 4-cylinder DOHC 4 valves
Test fuel: Regular gasoline
Test mode: JC08H mode

43

CSR Report 2011

Environmental Report

Communication
Basic Philosophy
For The NGK Spark Plug Group to continue its business
operations, it is essential to improve our coordination
with local communities and build trust with society. We
feel that the best way to build this trust is to provide
information on the Group s environmental activities, andwe are endeavoring to disclose information in an
accurate and easy-to-understand way to improve
communication.

Observing environmental
activities
We accept factory tours to observe our environmental
eﬀorts and facilities. A deeper understanding and better
communication are achieved by seeing our facilities
ﬁrsthand and engaging in question and answer sessions.
In ﬁscal 2010, we hosted 11 factory tours, with a total of
581 participants.

Report on environmental
activities

W eb

W

Site-speciﬁc
environmental reports(Japanese Only)

The Group issues a CSR Report (formerly Environmental& Social Report) and site-speciﬁc environmental reports＊1
to give a better understanding of our environmental
preservation activities.
The Environment & Social Report 2010 issued in
September 2010 received the Incentive Prize in theEnvironmental Report Category at the 14th Environmental

Visiting the recycling center

Communication Awards hosted by the Ministry of theEnvironment and the Global Environmental Forum. We
will continue to aim for the disclosure of accurate andEnvironmental meetingeasy-to-understand information.
We host environmental meetings with local residents as＊1
Site-speciﬁc
environmental reports
By-company/
factory reports
on environmental
preservation activities.
Issued by four factories
of NGK Spark Plug Co.,
Ltd. and eight aﬃliates(excluding Nittoku
Alfa Service Co., Ltd.
and Nittoku Unyu Co.,Ltd.)

a venue for communication. At these meetings, we
explain our daily environmental activities as well as hear
opinions and comments from participants on how we
can improve things. In ﬁscal 2010, we hosted ten suchmeetings, with a total of 38 participants.

Environment & Social
Report 2010

Site-speciﬁc
environmental reports(Japanese Only)

Donating to tree-planting
activities
Part of the proceeds from the autumn Change to an
Eco-Plug! campaign held from October to December

Environmental meeting (Nansei Ceramic Co., Ltd.)

Local clean-up activities

W

2009 was donated through an NPO to tree-planting
activities in Kuma-mura in Kumamoto Prefecture. Our

This Group regularly holds clean-up activities to preserve

donation enabled one hundred trees including Quercus

the local environment. We also continue to participate

serrata, Quercus gilva Blume and Myrica rubra to be

in beautifying activities hosted by local municipalities,

planted on waste land＊2, in a way that complemented

etc.

the existing vegetation.

participating.

Waste land

Planted trees

FiscalClean-up activity(Komaki Factory)

2010

saw

a

total

of

1,026

peopleW ebParticipation in clean-up
activities by eachbusiness site

＊2
Waste land
Unused land wheretrees have been cut
down, but no trees
replanted.

Clean-up activity(Kamioka Ceramic Co., Ltd.)CSR Report 201144

Message from a Stakeholder
This Report gave me a very good understanding of the systematic organization and promotion of theGroup s CSR policy since establishment of the CSR Promotion Department in April 2010. In particular, theway the company policy, structure, targets, etc. are summarized by a stakeholder in the unit on Sociality
Report is very informative and useful for our Ward Oﬃce, where we deal directly with a range of residents
in our Ward.
The Feature Story Response to Major Disasters shows how quickly the Group secured the safety of its
employees and ensured that business continued, as well as the Group s various relief eﬀorts during theGreat East Japan Earthquake. In preparing for major earthquakes, the disaster prevention activities
conducted and the Head Oﬃce Factory s memorandum with the local school district show great
reliability.
I also commend and have great expectations of the Group s eﬀorts to communicate with local communities
and participate in various social contribution activities, and I hope that we will continue to be good
partners long into the future.

Third Party Review

Kenichi Yoshida
Ward Mayor of Mizuho, Nagoya

W

CSR Report 2011 has been created based on our information disclosure policy, with the aim of producing an easy-to-understand and trustworthy
report. In order for us to verify that this Report conforms to this policy, we have asked TÜV Rheinland Japan Ltd. to review the Report. The
review checked whether the Report contains all the essential information it should, whether that information is based on accurate measurements
and calculations, and whether the disclosed information is consistent with source materials, etc.

Response to the Third Party Review
Starting this year, the name of the report has been changed to CSR Report, and thestructure has been modiﬁed signiﬁcantly. Since our challenge this time was to focus on
information for stakeholders, we made the decision to include the voice of our employees,
our closest stakeholders, and this was highly evaluated. On the other hand, we must
work still more on information disclosure as a global corporation.
Concerning points that need improvements, we have improved those places in theReport where there was insuﬃcient explanation, but for other points that require moretime, such as establishing new mechanisms, we are continuing our eﬀorts to make
improvements.

45

CSR Report 2011

Third Party Review

Questionnaire results
Thank you very much for participating in the questionnaire on the Environmental & Social Report 2010, issued in ﬁscal 2010. After reviewing
the comments and opinions we received, we have carefully selected information to be included in this report. We will continue our eﬀorts forbetter information disclosure. Please note that our employees (mainly from management) have ﬁlled in the questionnaire for the ﬁrst time thisyear, and their results are also shown below.

External stakeholders

Ｑ1

Ｑ2

Before reading ourEnvironmental and Social
Report 2010, how much
did you know about NGK
Spark Plug Group senvironmental policy or
activities?
How did you ﬁnd ourEnvironmental & Social
Report 2010?

Internal stakeholders (employees)

Nothing8%Nothing
2%
A lot
50%

A little
42%

A little
49%

Diﬃcult to understand 0%
Average17%
Understandability

Insuﬃcient 0%

Diﬃcult to understand1%
Easy tounderstand83%

Amount of
information

Ｑ4

Ｑ5

Please check the box orboxes, when you ﬁnd
topics particularlyinteresting.
Please ﬁll in a ○ ongood topics, and ﬁll in a× on no-good topics,
for as many topics as
you like.

Please check the box orboxes that best
describe(s) yoursituation and position.

If you have any othercomments, requests orthemes you would liketo know regarding ourenvironmental andsocial contribution
activities, please feel
free to write in thespace below.

Average
44%

Average42%

Understandability

Insuﬃcient 1%

Poor 0%
Good
58%

Too much
8%

Ｑ3

A lot
49%

DesignEasy tounderstand55%
Poor 1%
Good
51%

Too much
20%
Amount of
information

Average48%

DesignAppropriate
92%

Appropriate
79%<Top 3>■ Message from the President■ Environmental preservation- Environmental Burden of Business Activities- Management<Top 3>■ Message from the President■ [Feature Story 1] Development of SOFC
■ Social contribution<Top 4 (ranked by # of ○ - # of ×)>■ Message from the President■ Environmental preservation- Environmental Burden of Business Activities- Management- Products<Top 4 (ranked by # of ○ - # of ×)>■ Message from the President■ [Feature Story 1] Development of SOFC
■ [Feature Story 2] 50 years of Cerâmica e
Velas de Ignição NGK do Brasil Ltda.
■ Social contribution

Other 8%CSR/
environmental
personnel
in a company/organization
8%

Customer8%

Suppliers
76%■ Please enlarge the font for the Third
Party Review Report.
(Reply) The PDF version is now available
on the website and viewer canadjust the font size to suit them.
■ I would like to see photos of andcomments from stakeholders.
(Reply) We have included the Voices of
employees.

■ Request for participation in the questionnaire survey
Thank you for reading our CSR Report from cover to cover.
Please help us to continue improving the content by ﬁlling in thequestionnaire.

■ I would like to know more about theactivities of overseas corporations.
Please make the Report more global.
(Reply) More cases of overseas
corporations have been introduced.
We will work more on daily
activities to make the scope of theReport global.
■ I would like to see more reports on products(Reply) Included a feature story onhydrogen-related products.

Fax：＋81 52-872-5999
e-mail：csr@mg.ngkntk.co.jp＜Handling of personal information＞
The personal information you enter will be used solely for the purpose of sending you the report for the next ﬁscal year.
When tallying and publicizing the results of the questionnaire, we will do so in a way that does not identify you through your personal information.

CSR Report 201146

CSR Report 2011

CSR Report 2011
NGK Spark Plug Group

14-18 Takatsuji-cho, Mizuho-ku, Nagoya, Aichi 467-8525 Japan
http://www.ngkntk.co.jp■ Inquiries

CSR Promotion Department
TEL：+81 52-872-6248 FAX：+81 52-872-5999
e-mail ： csr@mg.ngkntk.co.jp

日本特殊陶業は、
チャレンジ２５キャンペーンに参加しています。

＊When this Report is no longer needed, please recycle.

CSR Report 2011
NGK Spark Plug Group