NGK SPARK PLUG GroupCSR Report

2016
CSR ReportINDEX
President's Message for Stakeholders ------------------------------------

3

Our CSR -------------------------------------------------------------------

7

Process for defining materiality ------------------------------------------

12

Special Features ----------------------------------------------------------

17

Management
・ Corporate Governance ------------------------------------------------

22

・ Compliance ------------------------------------------------------------

24

・ Export Controls --------------------------------------------------------

29

・ Security Control / Information Security ------------------------------

31

・ Intellectual Property --------------------------------------------------

33

・ Risk Management -----------------------------------------------------

35

With Our Customers
・ Quality Policy and Implementation Structure ------------------------

38

・ Initiatives to Improve Quality -----------------------------------------

41

・ Communication to Customers ----------------------------------------

50

With Our Shareholders and Investors ------------------------------------

53

With Our Suppliers ---------------------------------------------------------

56

With Our Employees
・ Policy for Human Resources -------------------------------------------

62

・ Respecting Diversity --------------------------------------------------

65

・ Human Resource Development ---------------------------------------

69

・ Human Rights and Labor ----------------------------------------------

72

・ Occupational Safety and Health Basic Policy -------------------------

75

・ Occupational Safety Activities -----------------------------------------

79

・ Health Promotion Activities -------------------------------------------

83

With Local Communities and International Society ---------------------

85

For Environmental Protection
・ Global Eco Vision 2020 ------------------------------------------------

88

・ Environmental Burdens from Business Activities ---------------------

93

・ Environmental Management ------------------------------------------

95

・ Environmentally-friendly Products ----------------------------------- 103
・ Hazardous Chemical Substances ------------------------------------- 105
・ Global Warming -------------------------------------------------------

108

・ Depletion of Resources ------------------------------------------------ 110
・ Environmental Communication --------------------------------------- 111
Third-Party Review -------------------------------------------------------NGK SPARK PLUG Group CSR Report 2016

115

1

Detailed Information about CSR
Targets and Results of CSR Promotion Activities -------------------------- 118

Detailed Information about Environment
ISO 14001 Certified Locations -------------------------------------------- 124
Measurement data on Air, Water Quality, Noise and Vibration ---------- 125
Environmental Accounting ----------------------------------------------- 132
PRTR Data for Each Business Site ---------------------------------------- 133
Volumes of Waste Generated at Each Business Site --------------------- 134
Local Clean-up Activities -------------------------------------------------- 135
Editorial Policy
The CSR Report 2016 is edited with the intention of informing all of our various stakeholders
about the CSR activities of the NGK SPARK PLUG Group.
This online version contains more detailed information than the digest version.
[Period covered]
From April 1, 2014 to March 31, 2015
Some other very recent activities and cases are also included.
[Organizations Covered] Social aspects: NGK SPARK PLUG CO., LTD.
However, this Report may also cover the activities of subsidiaries and affiliates inside andoutside Japan. In such cases, specific company names are indicated.
 Environmental aspects: NGK SPARK PLUG Group NGK SPARK PLUG CO., LTD.
 11 consolidated subsidiaries and one affiliate in Japan[Publishing Director]
Shinichi Odo
Representative Director and Chairman of the Board
Chief Executive Officer
President Officer[Editor in Chief]
Masaya Futamura
General Manager
Risk Management Department, Corporate Strategy Group[Published]
September 2016 (Publication of the next report is planned for August 2017.)

NGK SPARK PLUG Group CSR Report 2016

2

CSR > President's Message for Stakeholders

President's Message for Stakeholders

Delivering Real Value to
All Stakeholders

Shinichi Odo
Representative Director
Chairman of the Board
Chief Executive Officer
President Officer

NGK SPARK PLUG GroupCSR Report 2016

3

CSR > President's Message for Stakeholders

I would like to begin by offering my condolences to those affected by the large earthquake thatstruck Kumamoto in April 2016. I pray for everyoneʼs safety and a speedy recovery.

The NGK SPARK PLUG GROUP’s Approach to CSR Management
NGK SPARK PLUG was founded in 1936 andcelebrated its 80th anniversary in 2016.
Today, we proudly supply products that are
truly indispensable to society. I am very
grateful for the patronage and support of
stakeholders and the hard work of ourpredecessors that made this possible. At thesame time, we are determined to achieve
greater sustainable growth by our 90th and100th anniversaries.
This means that each and every employee must always consider the value of our existence fromthe perspective of stakeholders in order for us to realize sustainable growth while fulfilling our
responsibilities to society. This is because together the compilation of each and every employee
considering the meaning and purpose of their work, their ability to growth professionally, andthe value they can provide to stakeholders represents the real value we deliver to stakeholders
as a company. This also represents a responsibility we bear toward society and the very
meaning of our existence as a company. Having employees think and act will lead to theirpersonal growth, the growth of the company, and, as an extension, enable the company tocontribute to the growth and development of society as a whole.
On top of this, we are able to create the value we provide as a company only after employees
establish and implement targets based on the companyʼs mission and targets, whereby thetargets of each employee and the company are intertwined. This connection between
employees and the company as well as society represents the roots of our CSR, I believe. It also
represents the NGK SPARK PLUG GROUPʼs approach to CSR.

The NGK SPARK PLUG GROUPʼs Responsibilities to Society
A corporation must enhance corporate value and achieve sustainable growth. This corporate
value comprises not only business value such as sales and profits, but also social value.
I believe that we can fulfill our responsibilities to society only after balancing this business value
and social value, while also correctly understanding the expectations of stakeholders. The NGKSPARK PLUG GROUP constantly strives to enhance corporate value based on the following
approaches.

NGK SPARK PLUG GroupCSR Report 2016

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CSR > President's Message for Stakeholders

 We will prepare for natural disasters on a daily basis and strive to ensure a quick restorationof service and stable supply of products in the event of a disaster.
 We will establish a robust governance system and strive to enhance managementtransparency and greater awareness of compliance to avoid fatal scandals that could
negatively affect the operations of the company.
 We will supply high quality products to customer following our long-standing commitment
to quality and establish sound relationships with suppliers in order to manufacture highquality products.
 We will work on a wide range of relationship building in order to foster correctunderstanding of the NGK SPARK PLUG GROUP, while strengthening our message to society
and raising the visibility of the NGK SPARK PLUG GROUP, deepening two-way
communication with stakeholders.
 Although we are focusing on the greater involvement of women in the workplace withdiversity positioned as a key management issue, we will expand our efforts to create soundworkplaces globally where diverse human “assets” can thrive professionally irrespective of
nationality, age or disability.
 We will always support development of the local communities where we operate and strive
to achieve coexistence by giving back to these communities in various ways.
 We will carry out business activities considerate of the environment, being fully mindful ofenvironmental issues and focusing the development and provision of products and services
that help to alleviate environmental issues.

Delivering Real Value to Stakeholders
This year marks the seventh year under the NGK SPARK PLUG GROUPʼs The Evolution of NGKSPARK PLUG, which represents a long-term management plan detailing our vision for 2020. The
Evolution of NGK SPARK PLUG, which started in 2010, is separated into the three stages ofDelving, Renovating, and Evolving, and, through efforts in each of these stages, ultimately wewill provide Real Value to all stakeholders.
This Real Value becomes real value only after our approach aligns perfectly with the
expectations of stakeholders. Our business environment continues to change at an
unprecedented pace, while the expectations of stakeholders and our role in society, too,
continue to change. Based on a correct understanding of these changes, we will thoroughly
explain our approach and utilize stakeholder feedback in our efforts to further enhance
corporate value. We must use this cycle to deliver Real Value to all stakeholders.
We hope to be a company that is truly indispensable to the world even in 20 years when wecelebrate our 100th anniversary. To become such a company, employees must have pride in
their work, consider their responsibilities and what Real Value means for stakeholders, produce

NGK SPARK PLUG GroupCSR Report 2016

5

CSR > President's Message for Stakeholders

results, and be able to explain this approach and perspective with ease.

Overview of Long-term Management Plan

We are pleased to announce the release of CSR Report 2016, which details our activities during
fiscal 2015. We very much appreciate your honest and unreserved comments and opinions.

NGK SPARK PLUG GroupCSR Report 2016

6

CSR > Our CSR

Our CSRCSR Concept
We view CSR not just as a responsibility but as an opportunity to be accountable through reviewof the NGK SPARK PLUG's GROUP's economic, environmental and social activities from a global
perspective, to enhance corporate value, and to contribute to the sustainable development ofsociety in accordance with our Corporate Philosophy.

Our CSR activities are wide-ranging, and include the following:
Examples Offering excellent products to customers
 Disclosing corporate information to shareholders and the broader investor community, in an
optimal and easy-to-understand manner Collaborating with suppliers for mutual development
 Establishing a safe and employee-friendly working environment Participating in and supporting activities in the local community
To provide our Group's action guidelines for fulfilling CSR, in April 2011 our CSR Policy wasestablished, which comprises 10 policies, such as the Compliance Policy and others. In line with
the CSR Policy, we intend to review and promote CSR based on a multifaceted approach, into
the future.
Corporate Philosophy >Corporate Code of Conduct >NGK SPARK PLUG Group CSR Report 2016

CSR Policy

7

CSR > Our CSR

CSR Promotion System
The CSR Committee determines the priority themes for each fiscal year, to implement CSR
Policy. The Committee also oversees and evaluates CSR-related activities implemented by therespective committees, working groups and divisions, and makes appropriate proposals
regarding them, so as to achieve full optimization of CSR activities, thereby strengthening ourbusiness foundations.
The CSR Committee sets up respective working group as deemed appropriate, each of whichholds discussions on specific themes to develop countermeasures. We have established acompany-wide CSR promotion system by securing close coordination between the CSR
Committee, the CSR Promotion Sub-Committee and expert committees.

CSR Promotion System

CSR Promotion Activities Targets
We carry out CSR promotion activities according to themedium-term targets and fiscal year targets.
Our CSR Committee checked the progress of targets
for fiscal 2015 and formulated new targets for fiscal
2016 as part of achieving our medium-term targets.

We identified the priority themes for the NGKSPARK PLUG's GROUP and established 42 items
The NGK SPARK PLUG's GROUP is connected to andsupported by customers, shareholders, investors andvarious other stakeholders. For that reason, for thegroup to be sustainable in the future, we must aim togrow our business during meeting the expectations
and needs of our stakeholders.

NGK SPARK PLUG Group CSR Report 2016

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CSR > Our CSR

When we set our targets for fiscal 2016, first each expert committee and division confirmed the
expectations and demands of all our stakeholders. Then they compared them to our corporate
philosophy, Corporate Code of Conduct and CSR Policy and drafted targets. Finally, the CSR
Committee approved them.
Process for Defining Materiality >CSR targets and results

Participation in "United Nations global compact"
NGK SPARK PLUG CO., LTD. Participated in “United Nations
global compact” in November 2016.
“United Nations global compact” is a voluntary corporate
citizenship in order to address various problems such as
global warming, environmental problems, gap-widening
society that are progressing on a global scale. They are also
initiatives

that

were

proposedby

Kofi

Annan,

theSecretary-General of the United Nations in 1999, andestablished formally by the U.N. in July 2000.
NGK SPARK PLUG CO., LTD. will uphold ten principles
consisted of four issues such as “Human rights, Labour,
Environment, Anti-corruption” being advocated by the U.N.
global compact as good members of society, and will makeevery effort to promote activities in order to contribute tobuilding a sustainable society.

NGK SPARK PLUG Group CSR Report 2016

9

CSR > Our CSR

The Ten Principles of the UN Global Compact【Human Rights】
Principle 1: Businesses should support and respect the protection of internationallyproclaimed human rights.
Principle 2: make sure that they are not complicit in human rights abuses.
【Labour】
Principle 3: Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining.
Principle 4: the elimination of all forms of forced and compulsory labour.
Principle 5: the effective abolition of child labour.
Principle 6: the elimination of discrimination in respect of employment and occupation.
【Environment】
Principle 7: Businesses should support a precautionary approach to environmental
challenges.
Principle 8: undertake initiatives to promote greater environmental responsibility.
Principle 9: encourage the development and diffusion of environmentally friendly
technologies.
【Anti-Corruption】
Principle 10: Businesses should work against corruption in all its forms, including extortionand bribery.

NGK SPARK PLUG Group CSR Report 201610

CSR > Our CSR

Progress in our CSR
Nov. 1996

Adopted "Corporate Philosophy"

Feb. 1998

Adopted "Corporate Code of Conduct"

Apr. 1998

Established Ethical Committee

Feb. 2003

Adopted "Corporate Ethics Helpline System Operation Guidelines"

Nov. 2004

Revised "Corporate Code of Conduct", published "Code of Conduct Guidebook"

Apr. 2005

Published "Guidelines on the Handling of Personal Information"
Established

ExportControlCommittee,

adoptedAug. 2005

Regulations"Feb. 2007

Adopted "Confidentiality Management Regulations"Nov. 2007

Published "Confidentiality Management Guidelines"

Sep. 2008

Established Internal Audit Department

Apr. 2009

Prepared "Corporate Protection Manual"

Apr. 2010

Inaugurated CSR Promotion Department

Oct. 2010

Established CSR Committee

Apr. 2011

Adopted CSR Policy

Nov. 2011

Established Compliance CommitteeJan. 2012

Published "Compliance Guidebook"

Mar. 2012

Adopted "Compliance Regulations""ExportManagement

Adopted "Emergency Response Plan Regulations" and "Business Continuity
Oct. 2012

Plan (BCP) Regulations"

May 2013

Published "CSR Procurement Guidelines"

Jul. 2014

Launched "CSR Awareness-raising Activities"

NGK SPARK PLUG Group CSR Report 2016

11

CSR > Process for Defining Materiality

Process for defining materiality

Defining the materiality of our priority CSR themes
In 2016, we defined the materiality of our priority CSR themes. We also established 10 fields ofactivities and 42 targets based on the 7th Medium-term Management Plan.
Going forward, we will repeatedly conduct dialog with major stakeholders, including customers,
suppliers, shareholders and investors, employees and the local communities, while pursuing
stakeholder engagement and continuing to review materiality and targets in line with the times.

Definition process for the materiality of priority themes(fiscal 2010 - 2015)
Evaluation of Materiality : Policy / Target Setting
2010 - 2012
 Establish new CSR Policy Set Complete prevalence of CSR application as the medium-term theme for the fifth
Medium-term Management Plan (fiscal 2010 – 2012)2013 - 2014
 Set Complete prevalence of CSR application, and globalize CSR activities as themedium-term theme in the sixth Medium-term Management Plan (fiscal 2013 - 2015), andestablished 10 fields of activities and 30 CSR targets
2015 Establish 10 fields of activities and 42 targets to aim "Progressive Company" as the 7th
Medium-term Management Plan (fiscal 2016 – 2020)

Evaluation of Materiality : Risk (Loss and Opportunity) Analysis
2010 - 2012
 Implemented CSR fact finding survey (management and performance of principle
departments). As a result, "compliance", "business continuity plan (BCP)", and "information
disclosure" identified as three priority medium-term initiatives.

NGK SPARK PLUG GroupCSR Report 2016

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CSR > Process for Defining Materiality

2013 - 2014
 Implemented risk survey after identifying risk management as the medium-term priority
initiative. As a result, compiled 370 specific examples with 22 classifications and 101
definitions and identified 21 material risks on two axes of degree of materiality andimplementation status.

Evaluation of Materiality : Dialogue with Important Stakeholders
2010 - 2014
 Held environmental meetings (local communities, NGK SPARK PLUG)
 Gap analysis of our CSR and SRI evaluation
 Participated

in

local

disasterprevention

meetings(government,

citizens,

NPOs,

corporations) Participated in information exchange meetings with neighboring companies held at
Chamber of Commerce and Industry

Activity Review
2010 - 2012
 CSR Policy determined by the Board of Directors. Three priority initiatives reviewed by CSR
Committee
2013 - 2014
 30 CSR targets and responses to 21 material risks reviewed by CSR CommitteeStandards and Guidelines for Reference and Analysis Tools
 Japan Auto Parts Industries Association (JAPIA) guidelines & checklist
 Japan Electronics and Information Technology Industries Association (JEITA) guidelines &checklist
 Japan Business Federation "Charter of Corporate Behavior Action Plan" GRI G4 Guidelines
 ISO 26000
 ISO 31000 risk analysis sheets, risk maps, risk management tables

NGK SPARK PLUG GroupCSR Report 2016

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CSR > Process for Defining Materiality

List of 10 fields of activities and 42 targets under the 7th
Medium-term Management Plan (fiscal 2016 - 2020)

Fields of Activities
Management

Medium-term targets(by fiscal 2020)

Company-wide
CSRManagement

 Promote a CSR PDCA cycle on a global basis
 Promote CSR awareness-raising activities on a
global basis

Department
in charge
RiskManagement
Dept.

Compliance
Company-wide  Construct a global promotion system
Promotion
 Continue education on helpline content
System Continue compliance awareness andknowledge training

Compliance
Committee

 Continue monitoring of compliance awarenessand knowledge and corporate culture change
Security
Control Deploy educational tools to NGK SPARK PLUG
and group companies in Japan and monitor
implementation status and effectivenessConfidentiality
Management
Committee

 Continuously improve security control,
including group companies, and establish
system for surveillance of implementation
statusExportControl Establish a system for surveillance of
implementation status of appropriate export
controls, including group companies

ExportControlCommittee

Information
Security Continuously reduce security risk of groupcompanies through deployment of Group
Information Security Regulations

Information
Systems
Dept.

Respect forandProtection ofIntellectual
Property
Rights Implement patent review activities formainstay products prior to design review
meeting, including group companies

Intellectual
PropertyDept.

 Establish new methods to deal withincreasingly sophisticated counterfeiters,
particularly in emerging countries
 Have at least 15% of submitted patents bedifferentiation patents utilizing a patentportfolio that adds rivalsʼ information
 Involve trademark aspects in strengthening
our brand organization
 Enhance intellectual property education,
including group companies

NGK SPARK PLUG GroupCSR Report 2016

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CSR > Process for Defining Materiality

Fields of Activities
Management

Medium-term targets(by fiscal 2020)

Risk Management
BCP/BCM

 Expand business continuity management
system to group companies in Japan
 Construct a management system that can
respond to not only earthquakes but also otherdisasters

Safety andQuality

Procurement
Div.

 IT-BCP countermeasures for server
infrastructure (cloud utilization)

Information
Systems
Dept.

 Expand quality assurance to all groupcompanies with a focus on goods for all
customers
 Expand quality management to all groupcompanies aimed at delivering value to all
customers

With Our
Shareholders
and Investors

With Our
Employees

Information
Disclosure

Employment
and Human
RightsBCM
WorkingGroup Construct a procurement BCP framework andexpand and operate it at group companies

Company-wide  Build company-wide risk management suited
Risk
to NGK SPARK PLUGManagement
With Our
Customers

Department
in charge

RiskManagement
WorkingGroup
Quality
Committee,
Corporate
Quality
Management
Div.

 Disseminate information that leads toincreased shareholder trust

PublicRelationsDept.

 Disseminate information in aneasy-to-understand and approachable manner
on a global level

Risk
Management
Dept.

 Construct a framework for an IR strategy
aimed at institutional investors

Accounting &Finance Dept.

 Disseminate information that captures
stakeholdersʼ expectations and the changes insocial trends

RiskManagement
Dept.

 Implement fair evaluations that correspond toclear expectations

Human
Resources
Dept.

 Establish educational programs that target theleaders of each group company
 Employ diverse human resources strategically Achieve personnel and human resource
functions that contribute to the promotion ofmanagement strategy
 Further encourage the promotion of active
participation by women Zero workers leaving their jobs in order toprovide nursing care
 Achieve the mandatory number for
employment of people with disabilities
 Promote active participation by seniors

NGK SPARK PLUG GroupCSR Report 2016

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CSR > Process for Defining Materiality

Fields of Activities
With Our
Employees

With Our
Suppliers

Medium-term targets(by fiscal 2020)

Occupational
Safety and
HealthCSR
Procurement

Department
in charge

 Develop systems that make it difficult for
accidents to occur aimed at developing a global
safety culture

Human
ResourcesDept.

 Raise productivity by decreasing the rate of
onset of mental illness

Environment& Safety
Management
Dept.

 Improve the framework for evaluation aimed
at global optimum procurement and deploy
and operate at group companies

Procurement
Div.

 Reduce risk in the supply chain by thoroughly
establishing CSR procurement
 Promote education and enlightenment aimed
at reducing risk utilizing supplier seminars, etc.

Procurement
Div., Risk
Management
Dept.

With Local
Communities
andInternational
SocietySocialContribution

 Continually enhance the social status of the
NGK SPARK PLUG Group through social
contribution activities

PublicRelations
Dept.

For
Environment
al Protection

Environment Promote environmental activities aimed atachieving global Eco Vision

Environmental
Committee,
Environment& Safety
Management
Dept.

NGK SPARK PLUG GroupCSR Report 2016

16

CSR > Special Features > Our CSR

Special Features 2016
Our CSRNGK SPARK PLUG, CO., LTD., which celebrated the 80th anniversary of its establishment thisyear, will continue to be an indispensable company that fulfills its social responsibility to all
stakeholders, even beyond our 90th and 100th anniversaries.

Our CSR
CSR is usually translated into Japanese as “kigyo no shakaiteki sekinin (corporate social
responsibility).” However, we communicate it to our employees as “meeting stakeholder
expectations and needs through our business to make stakeholders happy,” which is easy tounderstand.

An Unchanging Aspiration from Our Establishment to the Present Day
An Unchanging Aspiration from Our Establishment to the Present Day“Contributing to national culture”
NGK SPARK PLUG was established in 1936 in a spin-offof the Spark Plug Division of NGK INSULATORS, LTD.,
our founding entity.
This is the Founding Charter created 80 years ago
when NGK SPARK PLUG first came into being.
This Founding Charter allows us a glimpse of theobjectives and aspirations at the time of the companyʼsestablishment.

According

to

this,

“The

internal

combustion engine was in the process of shifting into

Founding Charter

exports due to rapid progress in traffic conditions. NGKINSULATORS, LTD., which has focused on this, has repeatedly conducted research into spark
plugs since 1922, and we will establish NGK SPARK PLUG CO., LTD. in order to further develop
and advance this area, contributing to national culture.”
In other words, it can be seen that NGK SPARK PLUG was established with the objective ofcontributing to national culture (the internal combustion engine industry).

NGK SPARK PLUG Group CSR Report 201617

CSR > Special Features > Our CSR

The Aspiration Contained in Our Corporate Philosophy“Contributing to the peoples of the world”
We created our Corporate Philosophy in 1996, the60th anniversary of our establishment. A corporate
philosophy expresses a constant approach for acompany to promote its business activities.
The three elements of Commitment, Management
Policy and Action Guideline constitute our Corporate
Philosophy, which states, “We will deepen mutual trustand confidence, suggest new value with our eyes on
the future, and contribute to the peoples of the world”

Corporate Philosophy

as its slogan.

Thus, while the times when each of them was created are different, NGK SPARK PLUG has
maintained a constant aspiration to “contribute to the nation and the world,” that is society,since its establishment.

Wanting to serve society through business

Building Positive Relationships with Society through BusinessOur connections with society
NGK

SPARK

PLUG

engagesinbusiness

activities with the aspiration of “wanting toserve society through business.” Society here
indicates the people and organizations withwhich we have relationships and they arecalled “stakeholders.”“ Stakeholders” refers to the suppliers thatdeliver raw materials and equipment to us, thecustomers that buy the products we sell, andthe employees involved in our businessactivities. The shareholders and investors that

NGK SPARK PLUG Group CSR Report 201618

CSR > Special Features > Our CSR

provide us with capital and the local communities and international society where we haveproduction and sales sites are also our stakeholders. Meanwhile, although not a stakeholder inthe sense of referring to people or organizations, we are also connected with the environmentthat takes in the CO2 and the waste discharged by our business activities and consideration for
the environment is also a responsibility that a company should fulfil.

Acting in Accordance with Our Promotion System Based on Our
CSR Philosophy and Policy
Organization of our CSR Philosophy and Policy

CSR Promotion System
The CSR Committee determines the priority themes for each fiscal year, to implement CSR
Policy. The Committee also oversees and evaluates CSR-related activities implemented by therespective committees, working groups and divisions, and makes appropriate proposals
regarding them, so as to achieve full optimization of CSR activities, thereby strengthening ourbusiness foundations.
The CSR Committee sets up respective working group as deemed appropriate, each of whichholds discussions on specific themes to develop countermeasures. We have established acompany-wide CSR promotion system by securing close coordination between the CSR
Committee, the CSR Promotion Sub-Committee and expert committees.

NGK SPARK PLUG Group CSR Report 2016

19

CSR > Special Features > Our CSR

CSR Promotion System

Establishing Targets for CSR Promotion Activities
We have identified the material issues for the NGK SPARK PLUG Group and establishedmedium-term targets for fiscal 2020 and short-term targets for each year. In the establishmentof short-term targets, the individual expert committees and departments prepared targets
reflecting the Corporate Philosophy, Corporate Code of Conduct and CSR Policy based on arecognition of expectations and needs from stakeholders, and these targets were approved by
the CSR Committee.
10 fields of activities and 42 targets >Implementing Initiatives Aimed at Raising Awareness of CSR
We continuously implement CSR awareness-raising activities.
We have been running elementary CSR training since2014 as an awareness-raising activity so each andevery employee feels more familiar with CSR.
Our elementary CSR training is expected to lead tochanges in awareness about work, an increase inmotivation, and pride in the company as employees
become aware of the connections between themselves
and society and of their contribution to society.
In addition, we regularly publish the CSR Newsletter

Training

and hold lectures by experts to continually raiseawareness of CSR.

NGK SPARK PLUG Group CSR Report 201620

CSR > Special Features > Our CSR

Each Individual Is Aware, Considers, and Acts
In our elementary CSR training, after learning about the establishment of the company,
the significance of CSR, and relationships with stakeholders, employees participate ingroup work that uses card games which get participants to recognize who theirstakeholders are and to consider by themselves how to make these stakeholders happy.
By being aware of and considering the fact that the company makes stakeholders happy invarious ways, the awareness of individual employees changes and their actions change. As
a result, the company changes and makes stakeholders happy again. Through such acycle, we will continue to be a company that is indispensable to the world.

“Making stakeholders happy”

NGK SPARK PLUG Group CSR Report 201621

CSR > Management > Corporate GovernanceCorporate Governance
Basic Philosophy
We believe that it is our foundational and important managerial task to establish and maintaina fair and efficient management system, while securing soundness and transparency inmanagement, in order to enhance corporate value by fulfilling our corporate social
responsibilities.

Management Organization
The directors appoint corporate officers selected by resolution of the Board of Directors tomanage corporate affairs. The directors also define the division of duties between the corporate
officers and employees related to the management of corporate affairs in Corporate Officer
Authority Rules and Regulations on the Division of Duties as well as clarifying targets andworking to enhance management efficiency by formulating medium-term management plans
and managing the budget framework.
Meetings of the Board of Directors are held regularly once a month as well as whenevernecessary. In addition, there is also lively debate at the regular monthly meetings of the
Corporate Management Committee and the Corporate Officers' Meeting, in which the directors
take part, and each of the expert committees in efforts to identify the situation quickly andrespond to changes in the business environment.

Management Oversight System
NGK SPARK PLUG CO., LTD. is a company with a Board of Corporate Auditors, which consists of
two standing statutory auditors and two external auditors. These auditors attend the meetingsof the Board of Directors and, if necessary, various committee meetings, to grasp the status ofimportant issues. They also supervise directors' execution of duties, through audits of major
offices and subsidiaries.

Nominating Outside Directors and Strengthening Corporate GovernanceAt the Ordinary General Shareholdersʼ Meeting in 2016, NGK SPARK PLUG CO., LTD. increased
the number of its outside directors by one, bringing the number of outside directors to three inorder to further clarify the separation between management and execution and to strengthen

NGK SPARK PLUG Group CSR Report 201622

CSR > Management > Corporate Governancecorporate governance.
The outside directors attend meetings of the Board of Directors, providing supervision for the
execution of duties as well as advice from an independent perspective based on their great
experience, deep insight, and expert knowledge.

Internal Audits
The Internal Auditing Office performs audits of NGK SPARK PLUG CO., LTD., its subsidiaries andaffiliates, reports the audit results to management, and makes proposals to correct problems
and improve business operations as necessary. Departments that receive a proposal for
improvement formulate and implement improvement plans and the Internal Auditing Office
investigates and confirms the implementation status. The Internal Auditing Office assesses theeffectiveness of internal control over financial reporting in accordance with the internal control
report system pursuant to the Financial Instruments and Exchange Act so as to secure thereliability of financial reporting, thereby working to maintain and improve internal control.
Internal Auditing Office will ensure effective and efficient audit through exchanging views oneach of the audit plans and results with corporate auditors or independent external auditors or
both, from time to time on a regular or necessary.

Corporate Governance System

NGK SPARK PLUG Group CSR Report 201623

CSR > Management > Compliance

Compliance

Compliance Policy
With recognition that our company is a member of society, we enhance corporate ethics andunderstand the spirit and meaning of laws, company regulations, international rules, andsocial norms in order to appropriately meet social demand and become a company trusted by
the international community.

Action Guidelines
 We not only comply with laws and regulations, but also act in good faith with common
sense and responsibility as a member of society.
 We regularly educate and raise the awareness of all our employees to impart a high levelof ethics and correct knowledge, with which they can act voluntarily to prevent a
violation.
 Should a violation occur, we will promptly investigate the causes and take remedialactions. We will strive to take appropriate countermeasures to prevent recurrence andfulfill our accountability.

Basic Philosophy
We work to increase awareness among employees regarding compliance to act in a sociallysensible manner, helping them to bear in mind that our enterprise is a member of society.

Compliance Promotion System
A Compliance Committee made up of representatives of departments in charge of overseeing
compliance with laws and ordinances and each division, headed by the Representative Director,
holds meetings every three months, carrying out inspections and correcting serious problems.

NGK SPARK PLUG GroupCSR Report 201624

CSR > Management > Compliance

Compliance Promotion System

Promoting Compliance Education
To raise employees' awareness of compliance, we
continue education and edification using the Compliance
Guidebook, which collects rules concerning the company
and society, and the Compliance Newsletter, which
gathers examples of incidents that happen nearby. In
addition to the level-specific training we have used in thepast, we also hold training on the themes of competition
law, export control, and business law.

Compliance Guidebook

Surveying Each Division on Compliance
We conduct a compliance survey every year. This identifies employeesʼ level of understanding
about regulations and systems, the culture of the various workplaces, and compliance risks,
and we work for individual improvements by providing feedback on the results to each
workplace.

NGK SPARK PLUG GroupCSR Report 201625

CSR > Management > ComplianceCorporate Ethics Helpline
The Corporate Ethics Helpline is an internal reporting system that lets employees seek
consultation regarding compliance. We have worked to increase convenience by establishingchannels not only inside the company but also with an external expert private company,
enabling consultation and reporting outside of business hours, on holidays etc. Anonymous
consultations are also accepted.
Regarding consultations and reports received, facts are investigated with discretion so thereporting employee is not identified and does not feel uncomfortable, and if problems are
confirmed, they are dealt with promptly.
There were 50 consultations and reports in fiscal 2015, doubling since the previous fiscal year.
We consider this to be the result of the permeation of awareness through in-house media andtraining. The consultations and reports mainly involved issues such as labor and managementof personal information. There have also been cases where reports brought about strict
compliance with in-house rules.

Flow after report is received via the Helpline

NGK SPARK PLUG GroupCSR Report 2016

26

CSR > Management > Compliance

Voice of Our Helpline Operator

We want employees to feel at ease using the helpline.
The Corporate Ethics Helpline is directly linked to the officer incharge of compliance. Under this system, the identity of theemployee making contact, even when a real name is used, isshared with a minimum necessary number of people during
fact finding. The privacy of that employee who faithfully madea report is protected and care is taken that he or she not bedisadvantaged by making a report.
We hope employees will make use of the helpline when they

Risk Management Dept.
Morifeel uncomfortable raising an issue within the workplace.

Initiatives to Prevent Corruption
The NGK SPARK PLUG Group works to prevent corruption, stating in our corporate code of
conduct “we shall promote fair, transparent, free competition and sound trade. We shall also
ensure that our relationships and contacts with government agencies and political bodies are ofa sound and proper nature.”
In the Compliance Guidebook we issued in 2012, we set rules concerning the prevention ofcorruption, including the prohibition of involvement in political contributions or bribery, andsubsequently educated employees about these. In 2013, we educated employees about ourConduct Guidelines Concerning the Giving and Receiving of Gifts and Entertainment, and areraising awareness to eliminate any misconduct. Further, in 2016 we signed the United Nations
Global Compact, openly reaffirming our commitment to undertaking the prevention ofcorruption. While addressing the prevention of corruption in accordance with these and otherguidelines, we respond to any incident of violation primarily through our Compliance Committee.
We also accept information provided through the Corporate Ethics Helpline.
Our overseas group companies are also taking action to prevent corruption, and conduct
education for employees along with surveys of local laws.
Through our CSR Procurement Guidelines, we further require that suppliers refrain from acts ofbribery.
In fiscal 2015, there were zero related violations committed by our Group.
Participation in "United Nations Global Compact" >NGK SPARK PLUG GroupCSR Report 201627

CSR > Management > Compliance

Initiatives Concerning Competition Law (the Antimonopoly Act)
Responding with sincerity to violations of competition law uncovered in fiscal 2014, the NGKSPARK PLUG Group is implementing a Competition Law Compliance Program.
We have established a system to promote compliance with competition law, including theappointment of officers in charge of compliance and the establishment of a competition law andcompliance measures team. In addition, we have formulated an Antimonopoly Act Compliance
Manual and educated employees about it, including holding seminars on the topic. In fiscal
2015, we held seminars for our sales division and support division 14 times, as well as
expert-led seminars for executives. In fiscal 2016, we are expanding the seminars to thetechnical division and planning division.
The competition law and compliance measures team visits overseas group companies to
conduct audits on compliance systems and their operational status, and to confirm that rules
are thoroughly promulgated and enforced. In addition, we conduct checks of the readinessstatus of internal reporting systems, as a means for quickly discovering the possibility ofviolations. From fiscal 2015 to fiscal 2016, we conducted on-site audits at almost all overseas
group companies. We will continue to conduct education and audits both in Japan and overseas,
and will enforce the strict observance of competition law.

Policies Regarding Taxes
The NGK SPARK PLUG Group has set a compliance policy by which we recognize that we are amember of society, and, with understanding of the spirit and the purpose of laws andordinances, respond appropriately to the demands of society and aim to become a company
trusted by the international community. We also undertake the payment of taxes on the basis of
this policy and in accordance with the following principles.
1. The Group will fulfill its social responsibilities by observing laws on corporate taxation andother tax laws in every country, as well as international taxation standards including theOECD Transfer Pricing Guidelines and the Action Plan on Base Erosion and Profit Shifting.
2. In order to ensure compliance with the above laws and ordinances, our Group will work
toward improving our knowledge of, and correct understanding of taxation, and to enhancereliability and transparency with an attitude of sincerity toward tax authorities.
3. The Group will properly manage taxation risks by working toward appropriate declarationand payment of taxes in each country, thereby enhancing shareholder value.

NGK SPARK PLUG GroupCSR Report 201628

CSR > Management > Export Controls

Export Controls
Basic Philosophy
To maintain international peace and security, Japan has implemented security export controls infull coordination with the international community, but in recent years more suitable controls
have been needed as the international situation has worsened.
To suitably carry out security export controls based on the Foreign Exchange and Foreign Trade
Control Act, we have drawn up our own Export Management Regulations and have configured
our in-house export control structure. This will allow us to flexibly deal with regulation revisions.
Furthermore, under the guidance of the authorities we have put in place an aircraft cargo
security management system to prevent terrorism and are working to suitably control cargosuch as through the introduction of metal detectors at each department involved in distribution.
We will continue to carry out business in compliance with all laws and regulations to fulfill our
responsibilities as demanded by the international community and the government.

Holding Regular Briefings on Different Themes
The Export Control Committee secretariat considers it necessary to continue educational
activities in order to teach the entire company about security export controls and cargo security
management. To that end, we are planning regular, systematic briefings on various themes infiscal 2016.

Themes and results of activities in fiscal 2015
1.

Cargo security management (Known Shipper / Regulated Agent system)
Held five times (41 participants)

2.

Foreign exchange laws and security export controls
Held 10 times (166 participants)

3.

Customs law, Authorized Exporters' Program
Held five times (55 participants)

4.

Classification in practice (new)Held twice (8 participants)

NGK SPARK PLUG Group CSR Report 2016

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CSR > Management > Export Controls

Themes in fiscal 2016
1.

Cargo security management (Known Shipper / Regulated Agent system)

2.

Foreign exchange laws and security export controls

3.

Customs law, Authorized Exporters' Program

4.

Classification in practice

We will also include a risk management perspective to the subjects above.

Voice of Our Export Controls Organizer

Contributing to compliance through easy-to-understand explanations
Because export control is supported by the cooperation ofvarious divisions including technical, sales and distribution
divisions, we hold briefings for people in related divisions onlaws and regulations that must be paid attention to whenexporting.
We will continue to hold briefings under the motto "making
difficult laws and regulations easy to understand" while
confirming the status of inspections and working to ensure
sound compliance with laws and regulations.

NGK SPARK PLUG Group CSR Report 2016

Risk Management Dept.
Kishihata

30

CSR > Management > Security Control / Information Security

Security Control / Information Security

Information Security Policy
We regard all of our own information assets as one of our management resources. Throughthe proper protection and effective use of our information assets, we pursue healthy
maintenance and development of our business.

Action Guidelines
 We establish rules that clearly define the system and responsibilities for the protection
and management of all the information assets including the information we keep for ourcustomers, the know-how and intellectual properties owned by our Group, and personal
information.
 We comply with laws, ordinances, and regulations regarding information security.
 We educate all executives and employees who handle information assets about theimportance of information security, and about specific items to be observed.
 We continuously update the information infrastructure for the maintenance andimprovement of the confidentiality and stability of all the information assets.
 We promote measures to prevent accidents in order to address the risks of information
leakage associated with the continuous advancement and sophistication of information
technology. Should an accident occur, we will strive to minimize the damage and takepreventive measures against recurrence.
With the development of information and communication technology, it has become more
important and more complex for companies to manage confidential information.
We have established the Group Information Security Regulations and Confidentiality
Management Regulations, and we strive for appropriate management of confidential
information, including the electronic information of the NGK SPARK PLUG Group, customers andsuppliers. Even when we install wireless LAN and mobile terminals in shared spaces, aiming forthe effective utilization of spare time, we gave all possible care to information security, not tomention compliance with the relevant laws and regulations.
Our privacy policy is available on our website.
Privacy Policy >NGK SPARK PLUG Group CSR Report 201631

CSR > Management > Security Control / Information Security

Relocating Internet Systems to a Disaster-resistant Data CenterIn preparation for the eventuality of a disaster, we are gradually relocating the Internet systems,
used for exchanging data with subsidiaries and suppliers, and for internal and external
communication tools, as well as mechanisms for exchanging data with suppliers, to an external
data center which have outstanding resistance to earthquakes, liquefaction, flooding, and fireas well as guaranteed power sources. In conjunction with this, we have enhanced business
continuity by duplicating communications with the data center.

Carrying Out Periodic Inspections Related to Confidentiality Management
To ensure that the confidentiality management rules we established do not become rules inname only, the Confidentiality Management Committee performs periodic company-wide
inspections of the status of confidentiality management. We have adopted a method of carryingout mutual interdivisional inspections in addition to the self-checks carried out in the past to
strengthen the checking function.
Furthermore, we have not only established rules for confidential information handled within thecompany, but also rules to prevent leaks of confidential information taken outside the company,
including procedures for the use of mobile PCs, and we carry out checks on the operational
status of these rules.
Voice of Our Confidentiality Management Manager

To be thorough in confidentiality management and avoid corporate risk
As a member of the Confidentiality Management Committee
secretariat, I am in charge of promoting confidentiality
management throughout the company. When confidential
matters are leaked, there is not only a degradation ofcompetitiveness in the market and actual damages due todemands

forcompensationofdamagesfrombusiness

partners, but there are the incalculable effects of a damaged
image due to a loss of public faith in the company. To preventthese effects, we are working to make the company-wide

Risk Management Dept.
Maegawastandard confidentiality management rules more suitable andexpand them to group companies.

NGK SPARK PLUG Group CSR Report 201632

CSR > Management > Intellectual Property

Intellectual Property
Basic Philosophy
To protect its existing and newly developed products, NGK SPARK PLUG CO., LTD. takes steps toactively acquire intellectual property rights and make effective use of them. We investigate theintellectual property rights of third parties in all production processes, from early stages ofdevelopment to mass production, to avoid the risk of infringing the intellectual property rightsof third parties or violating contracts, laws or regulations. We also verify the appropriateness of
the intellectual property-related provisions in various contracts. In addition, we are educating
employees on the importance of intellectual property. In the future, we will strengthen the
management of intellectual property across the Group, as the basis for our continued evolution
as a “Monozukuri Company.”

Promoting Measures to Stamp Out Counterfeit Goods
As for NGK SPARK PLUG CO., LTD.ʼs measures against counterfeit goods, to date various groupcompanies, primarily in China and Dubai, and law firms have been proceeding with activities
through tie-ups, and we have also been strengthening activities in the ASEAN region, where
economic growth continues. In fiscal 2015, we obtained the cooperation of the Phnom Penh
police to conduct the first market uncovering in Cambodia, and we uncovered and removed
counterfeit goods that threaten the safety of users. This uncovering was reported in the local
newspapers, which we believe will translate into activities to raise awareness about stampingout counterfeit goods.

Uncovering

NGK SPARK PLUG Group

Reporting in a local newspaper(Koh Santepheap Daily, May 18, 2015)

CSR Report 2016

33

CSR > Management > Intellectual Property

Voice of Our Intellectual Property Organizer

Aiming for Patent Information to be Utilized by Technical Departments
In the Intellectual Property Department, we disseminate
information on other companiesʼ patents that require actions,such as design arounds, and carry out patent searches in orderto respond to those patents appropriately. On the other hand, it
is also possible to interpret developments at other companies
and industry trends from patent information, and we regularly
disseminate

theresultsofouranalysistotechnical

departments. We also put efforts into the diffusion of survey
methodology to enable the employees of technical departments

Intellectual Property Dept.
Yoshizawato freely analyze trends for themselves.

NGK SPARK PLUG GroupCSR Report 201634

CSR > Management > Risk Management

Risk Management

Risk Management Policy
We will identify the risks that could have serious impact on our business activities based on
the comprehensive understanding of the risks related to our Group, and take necessary
measures to prevent the occurrence and recurrence so that the risks are reduced to an
acceptable level. Even if such a risk should occur, we will also strive to restore and continuesmooth business operations, thereby maintaining trust from our stakeholders.

Action Guidelines
 We conduct our activities with top priority on the protection of human life.
 We strive to prevent factors that could affect business continuity.
 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 of risks.

Basic Philosophy
In operating business, we face many risks including natural disasters, accidents, terrorism, andthe spread of new infectious diseases. If an unforeseen incident occurs, we will act giving toppriority to the protection of human life. We have also made contingency plans so that we cansmoothly continue our business operation even under such circumstances.

Holding Company-Wide Disaster Prevention Training and Disaster
Imagination Game (DIG) Training for Officers
Every year we hold training based on the scenario ofalarge-scale

earthquaketoprepareforanemergency situation.
At the time of the company-wide disaster prevention
training in November 2015, after over 4,000
employees participated in an emergency evacuation,
they moved to a primary evacuation center. We also
had water pumping drills by the in-house fire brigade

NGK SPARK PLUG Group CSR Report 2016

A scene from DIG training for officers

35

CSR > Management > Risk Management

and fire extinguisher use drills for the primary fire-fighting people.
Meanwhile, in disaster imagination training for officers, there were drills in returning operations
to normal assuming a shutdown of operations.

Installing Earthquake Early Warning at Group Companies
We installed earthquake early warning equipment not only at NGK SPARK PLUG CO., LTD. but
also at group companies in Japan and conducted emergency broadcast drills during thecompany-wide disaster prevention training. As a result, employees were able to prepare forpromptly ensuring their own safety and other actions after the issuance of an emergency
broadcast.

Holding Regular Disaster Prevention Council
We have held the Disaster Prevention Council regularly since April 2014. At the Disaster
Prevention Council, people involved in disaster prevention at group companies in Japan cometogether to take up and discuss issues at group company sites with the aim of upgrading
disaster prevention at the site level. The Council also collaborates with the company-wide
disaster prevention training held every November.

Group Rollout of Safety Confirmation System
We have rolled out our safety confirmation system not only to NGK SPARK PLUG CO., LTD. but
also to all group companies in Japan. During the company-wide disaster prevention training, we
carried out safety confirmation drills, confirming that the system can pull together employee
safety information.

Response to New Infectious Diseases
To protect employees' health from the seasonal influenza every year, we strive to prevent the
spread of infection. Particularly regarding group infection at workplaces, which may affect ourdaily operations, we are ready to cooperate with the relevant divisions to implement immediate
and intensive measures. During the flu season, we issue weekly reports so that all employees
can share the information and take effective countermeasures. In addition, we are attentive to
information on candidate viruses for novel influenza.

NGK SPARK PLUG Group CSR Report 201636

CSR > Management > Risk Management

Voice of Our Disaster Control OrganizerContinuous Response for Infection Disease
We are concerned about new flu viruses, such as the swine flu(H1N1) in 2009, and the bird flu (H7N9) in 2013 being
prevalent on a global scale. Therefore, we aim to be prepared
to collect information and take countermeasures for apandemic.

NGK SPARK PLUG Group CSR Report 2016

Health Care Promotion
Human Resources Dept.
Sakakibara

37

CSR > With Our Customers > Quality Policy and Implementation Structure

Quality Policy and Implementation Structure

Corporate Quality Policy
We are committed to "Customer focus", "Involvement of all members", "Continuous
Improvement", to provide "Quality Products" to the society, and create new value.

Action Guidelines
 We strive to take a customer-oriented approach to provide quality products and services,aiming to ensure greater customer satisfaction in all our business activities.
 We are engaged in quality improvement activities through the companywide cooperation,and encourage our employees to achieve higher goals by making the best use of theirindividual abilities and creativity and uniting their efforts to address problems andchallenging issues.
 We strive to continue improving our processes, systems, products, and services, aiming
to respond to ever changing social/market environments and the diverse expectations
and needs of customers.

Basic Philosophy
NGK SPARK PLUG CO., LTD. regards all the value, expectations, and evaluations provided tocustomers through products and services, and all the people, goods, processes, andarrangements involved in producing them as "quality."
We are always conscious of making the best value for customers, and, aware that we are theones who support quality, we continue to grow, ambitiously applying creativity and imagination
to all operations.
We create value for customers in accordance with our Corporate Quality Rules and Corporate
Quality Policy. We will continue to contribute to society with safe and trusted manufacturing, as
well as the development of human resources who effectively and efficiently implement total
quality management (TQM), which enables us to respond flexibly and promptly to the evolving
internal and external business environment.

Quality Management System
NGK SPARK PLUG CO., LTD. strives under the main principles of our quality management

NGK SPARK PLUG Group CSR Report 201638

CSR > With Our Customers > Quality Policy and Implementation Structure

activities(quality

assurance,

daily

management,

policymanagement,

Small

Group

Improvement Activities, and quality management education), which are based on our
Corporate Quality Rules.
We have obtained certification by the international standard ISO 90001 and sector standards
such as ISO/TS16949 in order to meet the demands of customers and the various industries.
The Quality Committee, established as the company-wide quality assurance framework, ischaired by the Executive Vice President and composed of the general managers and managers
of groups and divisions. The Quality Committee directs and supervises total quality
management (TQM) and quality risk.
In addition, QC Circle activities are actively conducted as Small Group Improvement Activities
and play a role in promoting total quality management (TQM) activities. The NQC Central
Committee, which promotes QC Circle activities, continually works with QC Circle trainers andthe expert advisors who support QC Circle activities to strengthen the development of humanresources and organizations that continually support quality.
We also contribute to awareness of local quality activities through participation of outstanding
QC Circles in many external QC Circle conferences to present their results.

Quality Management Promotion System(FY2015)NQC Activities promotion system(Organization of NQC Activities)(FY2015)NGK SPARK PLUG Group CSR Report 2016

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CSR > With Our Customers > Quality Policy and Implementation Structure

Voice of Our Quality Control Manager

We updated the Corporate Quality Rules with the aim of achieving
companywide targets
Based on the "Nittoku Quality Mind," which is NGK SPARK PLUG
CO., LTD.ʼs DNA with regard to "enhancing corporate value" and"creating customer value," we updated the Corporate Quality
Rules in order to align our approach toward the achievement ofcompany-wide targets. In order to remain a company that can
provide value for customers and society, it is essential to
upgrade not only product quality, but also the quality of all theoperations that produce it as well as strengthening human

General Manager, Corporate
Quality Management Div.
Aoki

resources and nurturing our corporate culture. We will bring
together the wisdom of our entire organization to deliver the
expected

qualitythroughthepractice

of

total

quality

management (TQM) and global activities in the NGK SPARKPLUG Group.

NGK SPARK PLUG Group CSR Report 201640

CSR > With Our Customers > Initiatives to Improve Quality

Initiatives to Improve Quality
Running “Quality Activity Events” Year RoundWe run quality management events year round, not onlyin Japanʼs Quality Month which is held every November.
Our quality expos are held at all the sites of groupcompanies in Japan and are visited by more than 5,000
employees each year. We established the expos as anopportunity to share our approach to quality as well as
the diverse quality-related initiatives in workplaces. In
addition, we work to maintain and enhance quality

A quality expo

through a range of events such as raising awarenessabout quality through collection of quality slogans andattendance at lectures on quality, evaluation of the resultsof activities at QC Circle workshops, and promotion ofproblem solving through tours of inspection by local
senior management, including overseas business sites.

SDCA Activity
Standardizing our work and operations plays an important role in supporting total quality
management (TQM). As a manufacturer, we are promoting the manufacturing worksite SDCA
(Standardize, Do, Check & Act) activity to stably and reliably conduct daily management at our
manufacturing worksites. We are working to improve the quality of our manufacturing byencouraging awareness of any abnormalities in the worksites and on a daily basis maintaining aworksite without muri, muda and mura (unreasonableness, waste and inconsistency) throughgood communication.

NGK SPARK PLUG GroupCSR Report 201641

CSR > With Our Customers > Initiatives to Improve Quality

Voice of Our Activity Promoter

Creating a Workplace with a Positive Culture through Standardization
Based on the idea “no standards, no improvement,” weresolved to proceed with reviewing standards, which are oneof the important tools in a manufacturing worksite. NANSEICERAMIC Co., Ltd. produces a range of products using
piezoelectric ceramics technology, and we carry out ourroutine work based on operation manuals. However, there isalso a lot of experience-based intuitive work, which creates
challenges

for

reducing

inconsistency

in

work

and

NANSEI CERAMIC Co., Ltd.
Nakamura

document-based descriptions.
Every day team members within a process come together for the determined time in a
“10-minute standardization activity” to implement efforts for checking work. We haverealized that the activity has improved the workplace culture. It is not only positive for thestability and enhancement of quality, but is positive for communication too as everyone
exchanges opinions face-to-face. There have also been proposals for the revision of unsafe
work, improvement plans for work that is easier to do, and reviews of 2S (seiri – sorting,seiton – setting-in-order).

Quality Improvement
NGK SPARK PLUG CO., LTD. is working to share and practice the concepts of total quality
management (TQM) in order to become a group company that creates value for all stakeholders
and has a system that can respond flexibly and swiftly to change.
Based on our CSR Policy, we have updated NGK SPARK PLUG CO., LTD.ʼs Corporate Quality Rules
and identified the following five areas as the mainstays of total quality management (TQM).

1) Quality assurance
In order to provide products and services that meet the needs of our customers and society,NGK SPARK PLUG CO., LTD. will establish all operations and guarantee their safety and reliability
and promote development activities aimed at creating new value.

2) Daily management
NGK SPARK PLUG CO., LTD. will consider methods and indicators to measure the quality of all
our operations and promptly investigate the causes when results that differ from normal are
obtained as well as taking countermeasures to maintain and improve quality.

NGK SPARK PLUG GroupCSR Report 201642

CSR > With Our Customers > Initiatives to Improve Quality

3) Policy management
NGK SPARK PLUG CO., LTD. will further improve and innovate activities to maintain andenhance quality. We will establish strategies and objectives for creating new value forcustomers and responding to the evolving internal and external business environment andexplicitly identify issues and problems that need to be tackled as we work towards achieving ourstrategies and objectives.

4) Small group improvement activities
NGK SPARK PLUG CO., LTD. will use small group teams to solve the various issues and problems
identified through daily management and policy management, thereby developing humanresources.

5) Quality control education
NGK SPARK PLUG CO., LTD. will create the understanding and awareness of the mainstays of
total quality management (TQM) that are the prerequisites for maintaining and enhancing
quality and activating improvements and innovation and then establish and implement a
grade-specific education system.
Voice of Our Activity Promoter

Improving Instruction Capabilities through Practical Themes
When defects occur, we carry out Why Why analysis to investigate the cause. When I
belonged to the Quality Assurance Department, I used to provide instruction on Why Why
analysis for relevant departments based on knowledge I learned in training. However, things
often did not go according to the textbook, and sometimes we did not find the root cause.
Therefore, I revised the results of Why Why analysis andtried to improve the content of instruction with thecooperation of the Corporate Quality Management Division
As a result, the points for instruction became clear,facilitating instruction through practice. In addition, theprovision of feedback to the department where the analysis
was implemented enhanced the knowledge of department
members.
I transferred to the Manufacturing Department in April, and I
am drawing on this experience to provide instruction on Why

Cutting Tools Div.,
Production Dept.
Saji

Why analysis to my subordinates and striving to enhancequality.

NGK SPARK PLUG GroupCSR Report 201643

CSR > With Our Customers > Initiatives to Improve Quality

Quality Training Raising the Quality of Our Manufacturing
We are working to develop our human “assets” as“making

thingsismakingpeople.”We

haveestablished training programs that include quality
control and QC Circle Activities, and many of ouremployees attend these programs. We are also
furtherstrengthening

more

advanced

supportactivities at sites. We expect that training participants
will gain significant awareness by revising points ontechniques through familiar themes in addition to
spreading this awareness to the employees around

Quality trainingthem.
We also offer quality training and practical support for problem solving for suppliers so that they
provide us with consistently high quality parts and materials based on continuous quality
improvement.
Voice of Our Training Leader

Moving from Knowing to Being Able to Use Quality Knowledge
In our quality training programs, we hear feedback on being
able to acquire knowledge such as “I obtained new knowledge”
and “I found out about points for analysis.” We are providing
practical instruction on the themes of individual employees inorder to turn this knowledge into something that can be applied
to practice. Going forward, we will continue to enhance thequality of products and work through the development of
human “assets” with the ability to apply quality knowledge topractice.

Corporate Quality
Management Div.
Fujii

QC Circle Activities (Small Group Improvement Activities)
We are implementing QC Circle Activities aimed at advancing human "asset" training andworkplace capacity by continually solving problems and issues we face in daily work. We call thisactivity "NQC Activities." During Quality Control Month every November, the company presents
the results of NQC Activities at a company-wide presentation by NGK SPARK PLUG CO., LTD.
and group companies in Japan, and the best examples are given the President's Award. The two

NGK SPARK PLUG GroupCSR Report 2016

44

CSR > With Our Customers > Initiatives to Improve Quality

circles that received the Presidentʼs Award in fiscal 2015 were particularly commended because
all the members of the circles participated, they achieved their targets in activities based on the
5-Gen principles, and through their activities they increased membersʼ knowledge ofimprovement and improved their communication skills.
Additionally, we have made this presentation into the framework for the NGK SPARK PLUG
Group presentation. Starting in fiscal 2015, we used the occasion to also hold invitationalpresentations on the best improvement practices at group companies outside Japan. Apartfrom this, we presented employees who have made notable contributions to invigorating andpromoting NQC activities with achievement awards in recognition of their distinguished service.
In addition, at the company-wide improvement practice presentation and award ceremony
every June, commendations are given to small groups systematically implementing exceptional
NQC Activities in daily operations throughout the year to encourage continuous NQC Activities
by honoring their efforts. At the company-wide presentation, we also showcase and commend
the organization of the activities by the managers of groups that received the Presidentʼs Award.
Doing this provides an opportunity for other managers to study methods of organizing
activities.
In addition, we actively send outstanding improvement practices from the company-wide
presentation to presentation meetings outside the company, which are forums for self- andmutual development. Not only do participants realize the value of the activity and gain a senseof achievement from presenting a theme they have worked on to a large audience, but it also
provides an opportunity to develop as an individual and a group through Q&A and comments
and gain the motivation for additional activities. We also use our in-house infrastructure to
publicize the results of these presentations. Recently, the results of our activities have beenrecognized by presentation meetings outside the company, and several groups receive the top
prize every year.
The NQC Activities are vital for our organization not only for group companies in Japan, but also
overseas group companies in order to respond to changes in the external business environment
and further increases in production capacity as well as developing strong workplace capabilities.
Through the activity, we can share concepts and mechanisms globally as the NGK SPARK
PLUG's Group. Therefore, we assess the level of activities by visiting the main overseas
worksites where the activities are conducted and holding interviews on difficulties and problems
in promoting activities as well as attending presentations on case studies of improvement.

NGK SPARK PLUG GroupCSR Report 201645

CSR > With Our Customers > Initiatives to Improve Quality

Voice of the Secretariat for NQC Activities at Group Companies in Japan

Promoting Development of Human “Assets” and Improvement
Activities through NQC Activities
We aim to promote the development of human “assets” andimprovement activities through NQC activities based on our
slogan which is “Speed up close examination of causes andproblem solving.” In order to achieve this, we in the Secretariat
for NQC Activities promote the following initiatives in particular.
1. Confirmation of meeting progress by recording meetings,
advice on QC methodology and QC incidents
2. Promotion of active participation in external QC Circle
conferences

Tono Plant Manager
SparkTec TONO CO., LTD.
Morimoto (second from left)

3. Proposals for encouraging investment of management
resources in order to further spread NQC Activities
By promoting these areas, our goal is that the exchange of opinions by all the members of QC
Circles based on the knowledge and practical skills acquired through NQC Activities and thepositive spiral of the activities will translate into the further invigoration of NQC Activities. We
will continue working hard on such support activities so that the number of QC Circles
increases.

Promoting NQC Activities in Each Department
To activate NQC Activities at each worksite, we formed
new expert committees at each of our plants in fiscal
2013. These committees are made up of a Certified QC
Circle Trainer and expert advisors (members selectedfrom each division and department). In particular, they
aim to give expert advisors knowledge and practicalskills related to NQC Activities through two years ofactivities (as internal workshop instructors, promoters

Advice from an expert advisor

and commentators and in external training courses),
and after their terms those advisors return to theirrespective

worksites,

increasingthenumberofwell-known QC activity advisors available on a daily
basis. In this way, we are working to activate NQC
Activities.

NGK SPARK PLUG GroupCSR Report 201646

CSR > With Our Customers > Initiatives to Improve Quality

In fiscal 2015, new first-year expert advisors took part with the goal of acquiring knowledge.
The second-year expert advisors were at the center of the activity with the goal of learning
practical skills. Following completion of the two-year term, they act as NQC Activity advisors,
primarily in their own worksites, serving as instructors in the use of proper techniques andmeeting facilitators as well as providing review and comments on presentation meetings as
examples for activities in their own worksites. In addition, through these activities, we haveformulated and commenced operation of methods of assessment to visualize improvements inthe skills of expert advisors.
Our aim is to invigorate and raise the quality of NQC Activities through continual improvements
to this system for promoting them, and we will continue to develop human "asset" who can
produce results in each arena of the companyʼs business activities.

Development of Measurement Management for Group Companies
Appropriate measurement management in order to obtain reliable measurements is vital in
manufacturing.
In order to protect the NGK SPARK PLUG brand, we regularly share information with groupcompanies inside and outside Japan and promote unified standards for the management of
measuring instruments that form the base of our manufacturing.

Development of Measurement Management System for Group
Companies in JapanWe are promoting the development of a unified measurement management system for groupcompanies in Japan.
We are also performing the audits of measurement management systems and confirmation of
manufacturing worksite measurement at each company and have been working to unify
standards and enhance the quality of frameworks and management.
We will continue to contribute to high precision manufacturing by enhancing the measurement
management system, as well as the awareness and skills of the staff involved in it.

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CSR > With Our Customers > Initiatives to Improve Quality

Voice of a Measurement Management Manager at a NGK SPARK PLUG's Group Company

Spreading the Importance of Measurement Management within the
Company
At present, we are collaborating with NGK SPARK PLUG CO.,LTD. through such means as measurement management
liaisonmeetings

in

order

to

make

our

measurement

management more reliable as a member of the NGK SPARKPLUG Group. The audit of measurement management systems
performed in 2015 discovered points for attention andweaknesses.

We

aim

to

upgradeourmeasurement

management by improving these areas. In the future, we will

Quality Control Department
NICHIWA KIKI Co., Ltd.
Miura

continue working to spread the importance of measurement
management within the company and to increase awarenessand skills.

Providing Overseas Group Companies with Support for Measurement
We started providing each overseas group companiesʼ plants with support on measurement andhave completed the audits of measurement management systems and certification ofcalibration skills at all plants. Following the audits, each plant worked on improvements andupgraded the quality of their frameworks and skills.
In the future, we will continue working on localization so that each company is able to performskill certification, training and process confirmation on their own.
In addition, confirmation of quality at each overseas site is required for the local procurement ofjigs and tools. Measurement technology is also required for carrying out incoming inspections
properly and procuring parts that meet the required quality. We will contribute to improving
accuracy and consistency of acceptance inspections by rolling out training in measurement
techniques and skills.

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CSR > With Our Customers > Initiatives to Improve Quality

Voice of a Quality Control Manager, Overseas Group Company

Consistent Process Quality Begins with
Regularly Inspected Measuring Instruments
In the process of unifying management levels for the NGKSPARK PLUG Groupʼs measuring instruments, we regularly
share information with NGK SPARK PLUG CO., LTD.
We guarantee the highest quality by mirroring the NGK SPARKPLUG Groupʼs measurement management system at WOOJINWOO JIN INDUSTRY CO., LTD.
Park

INDUSTRY.
We are promoting a company-wide reaffirmation of the importance of measuring instrument
management and continually improving our management of measuring instruments. In the
future, we aim to further upgrade and maintain our measuring instrument management
skills.

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CSR > With Our Customers > Communication to Customers

Communication to Customers

Providing Services Demanded by Customers from a Customer-oriented Perspective
We also provide high quality services based on the appropriate technology and knowledge
in the automobile aftermarket and promote diverse activities demanded by customers froma customer-oriented perspective around the globe. We put efforts into technical knowledge
training for marketing staff in Japan and overseas as well as the training of overseas
technical marketing staff to give customers a broad understanding of our products. In
addition, we promote market research activities that include maintaining and expanding
existing needs, exploring and fulfilling new needs, and collecting and providing technicalinformation and new car and model information. Furthermore, we work on initiatives tofurther increase customer satisfaction by offering tailored assistance such as holding
lectures on technology for customers in Japan and overseas, responses to customer
inquiries and complaints to our website, and technical support for customersʼ racing
activities as sales promotion activities.

Lecture at international expo
(Japan)Product training for internal
technical staff (China)

NGK SPARK PLUG Group CSR Report 2016

Checking used goods in themarket (Thailand)

50

CSR > With Our Customers > Communication to Customers

Voice of a Member of our Service Staff

We Listen to the Opinions of Customers and Are Always Conscious of
Improvement
In the Aftermarket Technical Service Department, we aim toraise customers' levels of satisfaction and understanding
related to products and services.
As an example, we provide support for holding technicallectures. We constantly strive for improvement by conducting
a survey on levels of satisfaction with the content of thelecture for each lecture and reflecting the results of thesurveys into the content of lectures to enable greater
customer satisfaction levels.

Aftermarket Technical
Service Department
Automotive Components
Sales & Marketing Division
Goto

Responding to Inquiries and Complaints
Inquiries and complaints on our products
received from customers are first accepted at
our sales division. Then the quality assurance
division works together with the technicaldivision to quickly respond and take necessary
actions to the inquiries and complaints.

Response to Inquiries or Complaints

Sending Information on Website
PLUG STUDIO is a website that disseminates detailed information about our products including
NGK spark plugs and NGK ignition coils. Customers can also search for the part number thatmatches their vehicle and model.
The website also features information on exhibits at exhibitions and events and information
about motor sports, primarily teams supported by NGK SPARK PLUG CO., LTD.
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CSR > With Our Customers > Communication to Customers

Communication through Exhibitions and Events
We make sure to have PR booths at exhibits and motor sports events.
These provide valuable opportunities that allow us to meet with customers and explain our
products and technologies directly, and we also use these opportunities to identify constantly
evolving needs.

44th TOKYO MOTOR SHOW 2015
We exhibited at the 44th TOKYO MOTOR SHOW 2015 held over 11 days from October 29 –November 8, 2015 at Tokyo Big Sight.
We used exhibited diorama of towns where people live to explain our products and technologies
which are widely used in motorized societies with the theme “A dancing heart, driven by NGK.”

PR booth exhibits at race circuits
In fiscal 2015, we exhibited a total of six times in PR booths at race circuit venues while
motorcycle and automotive racing events were being held. In addition to introducing our
products to motor sport fans, we held stage events that included bingo games and spark plug
replacement experiences in which many customers took part.

Panoramic view of booth at
TOKYO MOTOR SHOW

Georama exhibit at TOKYOMOTOR SHOWAn event at a PR booth at a
racing circuit

Information on exhibitions and events >Responding Product Defects
We make it a rule that any product defect we have detected and found to possibly cause harm
to customers be immediately announced to the public through our websites, newspapers, trade
journals

and

other

media

as

appropriate

and

that

we

simultaneously

implement

countermeasures against such defects to protect all users.

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CSR > With Our Shareholders and Investors

With Our Shareholders and Investors

Information Disclosure Policy
Aiming to become an enterprise capable of receiving great support and popularity frompeople around the world, we strive to conduct transparent business operations and fair
information disclosure.

Action Guidelines
 We disclose any corporate information required to be disclosed by the Financial
Instruments and Exchange Act and other laws and regulations, in an accurate and timely
manner.
 We actively disclose our corporate information, which is not subject to laws andregulations however deemed to be important for stakeholders, through our daily actions,such as issuance of press releases and updates of our website.
 We focus on enhancing communication with our shareholders, investors, and otherstakeholders to further promote mutual understanding with them.

Basic Philosophy
At NGK SPARK PLUG CO., LTD. we are well aware that promoting transparent and fair
information disclosure is indispensable to having all our stakeholders better understand andevaluate our business operations. To achieve this goal, in addition to meeting the legal
standards of information disclosure, we also strive to strengthen information disclosure throughvarious media and promptly post information on our website, with the aim of ensuring
stakeholders' greater trust in our business operations.
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CSR > With Our Shareholders and Investors

Shareholders' Meeting
We send out the notice of convocation for our Ordinary
General Shareholdersʼ Meeting even earlier than thelegal deadline so that shareholders can give adequate
consideration to the reports and resolutions. We alsotranslate part of the notice of convocation into English
for overseas shareholders and post it on the company
website together with the Japanese version.
Furthermore, we are striving to create a suitableenvironment for the exercise of shareholdersʼ rights,

The 115th general meeting ofshareholders

including making it possible to exercise rights from a PC
or a mobile phone in addition to the exercise of rights inwriting.

Renewing the IR Page on the Corporate Website
We have renewed both the Japanese and English
versions of our corporate website as well as remaking
the

IR

page

in

order

to

deepenstakeholdersʼ

understanding of NGK SPARK PLUG CO., LTD. We havepublished highlights of financial and business result andhave also enhanced information on stocks and bonds.
Furthermore, we set up a new page aimed at individual
investors which introduces our business and points out
our strengths. Going forward, we will continue todevelop a system that prioritizes fair disclosure of
information

and

meets

the

diverseneeds

Corporate website
https://www.ngkntk.co.jp/english/ofshareholders and investors inside and outside Japan.

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CSR > With Our Shareholders and Investors

Engaging in Activities to Make Shareholders and Investors
Familiar with NGK SPARK PLUG CO., LTD.
We hold company briefing sessions for shareholders and investors. In fiscal 2015, in order toraise our profile, which remains low nationwide, we visited areas all over Japan again to get theunedited opinions of investors and our shareholders. We will continue to value dialogue with all
investors and our shareholders.
Voice of Our Investor Relations Representative

Aiming to Raise Corporate Value
Our goal in the Public Relations Department is to get all
stakeholders

tounderstandthecompany“accurately,”“deeply,” and “constantly,” to raise corporate value.
Going forward, we will continue to make every effort todisseminate the appropriate information and raise the qualityof communication.

Public Relations Dept.
Uchikawa

Returning Profits to Shareholders
Returning profits to our shareholders is one of the most important policies for our management,
and have consistent and stable payment of dividends as a basic policy. We also consider the
return of profits in line with earnings as important, and we plan to continue the payment ofinterim and year-end dividends with a target consolidated payout ratio of at least 30%, giving
comprehensive consideration to a stable dividend level, which is our basic policy, and internal
reserves to allocate capital expenditure and investment for the R&D required for our future
growth, and business expansion and streamlining.
Furthermore, we also recognize that repurchase of own shares is effective for increasing capitalefficiency, and we hope to carry out such acquisitions as necessary.
The dividend per share during fiscal 2015 was 42 yen.

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CSR > With Our SuppliersWith Our Suppliers

Procurement Policy
We aim to realize globally optimal procurement based on 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 properpurchasing transactions when procuring materials and parts, based on the following
guidelines.

Action Guidelines
 We conduct rational transactions based on fair, transparent, and open competition.
 We select suppliers based on comprehensive assessment of product quality, technology,
prices, deliveries, and efforts to continuously make improvements.
 We will enhance mutual trust with our suppliers, which are good partners for us, andstrive to realize mutual development.
 Aiming to become a good corporate citizen, we engage in business operations thatcomply with applicable national and international laws and regulations.
 Aiming to procure more eco-friendly products, we strive to promote our green suppliersystem.

Basic Philosophy
It is indispensable to establish healthy partnerships with our suppliers to procure better raw
materials and parts in 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.

Promoting CSR-Oriented Procurement
We promote the following activities for suppliers and our employees respectively, for the
purpose of ensuring fair transactions with suppliers and the establishment of mutually beneficial
sound partnership with suppliers.

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CSR > With Our Suppliers

For suppliers We explain our CSR procurement guidelines on our websites.
 We actively communicate with our suppliers to explain our corporate policy throughcorporate policy conferences, etc.
 We implement our CSR program with suppliers self-checklist and provide feedback on theoverall results.
 We explain our Green Procurement Guidelines on our websites.
 We visit the premises of suppliers for practical onsite activities, such as 5S kaizen(improvement) and Total Productive Maintenance (TPM), and hold various seminars.

For our employees We hold seminars for our procurement personnel to ensure their compliance with the
Subcontract Act.

Voice of Our CSR Procurement Manager

To Continuously Develop along with Our Suppliers
Calling for changing "from a cost center to a profit center," our
Procurement Group aims not just to engage in conventional
cost management, but to build an organization that can closely
connect NGK SPARK PLUG CO., LTD. with suppliers throughpurchasing and make proposals and value propositions. CSR is
one important element of value that a company can offer.
Therefore, we produced CSR Procurement Guidelines, andmade overall assessment of suppliers' trend through aGroup Manager
Procurement Group
Maeda

suppliersʼ self-checklist, and provided feedback on the results.
We aim to pave the way to continuous social progress throughpromoting CSR and mutual development together with our
suppliers.

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CSR > With Our Suppliers

Sharing Corporate Policy
We hold a corporate policy conference with our main
suppliers, offering them an opportunity to deepen theirunderstanding of the present situation of our company
and our goals. At the conference held in May 2015, we
introduced our business results, the companyʼs basic
policy and the policies of each department, which are
based on the basic policy, procurement policy andinitiatives, and requested suppliers to enhance quality,
reduce costs, and promote CSR initiatives.

Corporate Policy at Supplier Conference

Promoting Follow-Up Activities for Regular Supplier Assessments
Once a year, we conduct regular assessments of targeted suppliers and inform them of theresults. We visit suppliers where follow-up is particularly required to consult about difficulties,
carry out onsite confirmation, consider together what to improve so as to overcome
weaknesses and implement improvement activities. We will continue to further deepen our
relationships of trust with suppliers not only through day-to-day purchasing transactions, butalso through follow-up and support activities.

Voice of Our Supplier Improvement Promotion Organizer

Improvement through Communication
Our hope is that follow-up activities for suppliers translate into
continuous improvement of suppliers.
Therefore, rather than unilaterally requesting improvements,
we try to listen to suppliersʼ opinions to link together
improvements that are satisfactory to both of us.

Procurement Div.
NakataImplementing Activities to Pull out Potential Capabilities(Seminars and Practical Onsite Courses) for Suppliers
NGK SPARK PLUG CO., LTD. holds seminars for suppliers on themes that include process
improvement, quality control, industrial safety and health, and the environment, as well aspractical onsite courses in which we visit the production sites of suppliers to work for

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CSR > With Our Suppliers

improvements. We implement the activities to help with human resource development at our
suppliers, enhancing the capabilities of their companies. Last fiscal year, we held a total of 24
lectures. We aim to work in partnership with our suppliers in the future to enhance their
manufacturing capabilities.

Business Continuity Plan (BCP) Initiatives
NGK SPARK PLUG CO., LTD. is working to formulate a BCP with the objective of a rapid
resumption and continuation of business in preparation for a disaster or accident cases. We
have promoted countermeasures that include multiple purchasing for key products including
materials and parts.
A diverse range of materials and parts is required for manufacturing NGK SPARK PLUG CO.,LTD.ʼs products. Therefore, we are trying to secure systems that respond to the BCP throughsharing our objectives with each supplier and making efforts across the entire supply chain.

CSR Procurement Guidelines
In order for the NGK SPARK PLUG Group to put CSR into practice, it is necessary that ourbusiness partners understand and cooperate with us on a daily basis. Toward that end, in the
procurement policy that we established in April 2012, we indicated that we would promote our
CSR efforts throughout the supply chain. In May 2013, we established the NGK SPARK PLUG
Group CSR Procurement Guidelines and subsequently extended it to our business partners.
The CSR Procurement Guidelines describe the content of our initiatives in seven areas: humanrights and labor; occupational health and safety; environment; fair trading; product quality andsafety; information security; and contribution to society. We ask our business partners tounderstand the purpose of these guidelines and to put them into practice.
In the field of the environment, we have established content for overall initiatives such asenvironmental conservation activities and the effective use of energy resources. With respect tothe details of chemical substance management, we have separately established, and request
cooperation with, our Green Procurement Guidelines.

English version: Text of CSR Procurement Guidelines
Japanese version: 【Appendix】CSR Self-Check List
Japanese version: Text of CSR Procurement Guidelines

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CSR > With Our Suppliers

Handling of Conflict Minerals
Our Group promotes procurement activities taking full consideration of social problems, such as
human rights and environment. Conflict minerals have been mined in the Democratic Republicof the Congo and its surrounding countries, and it is feared that they are a source of financing
for armed factions. We see this conflict minerals issue as a serious social problem for procuringresources and raw materials.
We conduct surveys back through the supply chain to find out whether conflict minerals areused or not, and if there is suspicion of use, we make efforts to avoid using them.

Green Procurement Guidelines
These guidelines explain the basic concepts of our green procurement based on ourenvironmental policies. We reviewed the list of related chemical substances in February 2017
and released version 10.01 of the guidelines. We ask our suppliers to study the guidelines andcooperate with our green procurement.

Japanese version: Green Procurement Guidelines
Survey sheet
Japanese version: appendix table-1 Survey regarding the presenceor absence of "substances of environmental concern"
Japanese version: appendix table-2 Non-use Declarations

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CSR > With Our Suppliers

Green Suppliers
We certify suppliers that meet our system and material standards as "green suppliers," and givepriority to these in purchasing.
In fiscal 2015, we conducted screenings of suppliers involved in raw materials, components,
and packaging materials, resulting in new green supplier certification for 62 companies andcontinued certification for 98 companies.

Green Purchasing Requirements
In the purchase of office supplies and appliances, we choose an environmentally-friendly
product.
1.

Have less environmental impact during use.

2.

Have a significant effect on environmental improvement during use.

3.

Have less environmental impact during the disposal stage after use.

4.

Comply with relevant laws, standards, regulations, etc. in terms of quality and safety.

5.

Preferably be priced the same or lower than similar products (in consideration of longevity).

Version 2 of our "Green Procurement Guidelines (In-house use)"

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CSR > With Our Employees > Policy for Human Resources

Policy for Human Resources

Human Resource Policy
We acknowledge that employees are the most important management resources. In light of
this, we respect the diversity and individuality of our employees and promote the cultivationof physically and mentally healthy human beings, striving to promote the further
development of our Group as a whole.

Action Guidelines
 Respecting the rights of our employees, we eliminate discrimination and harassment in
employment, and avoid the use of forced labor or child labor.
 We secure and foster human resources who help pass down our quality products principle
to the following generations. To this end, we provide learning opportunities and otherprograms to support the career development of our employees.
 We strive to smoothly introduce a personnel system that ensures that people withdifferent qualities can fully realize their own capabilities into our Group.

Basic Philosophy
Employees are the most important management resource. We promote the sustainable growthof the NGK SPARK PLUG Group by striving for human resources development that respects thediversity and individuality of our employees and by encouraging individual employees to reach
their own full potential, to grow and to participate actively in a state of physical and mental
health.

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CSR > With Our Employees > Policy for Human Resources

Voice of the General Manager of Human Resources Department

Passing on a Richly Diverse Corporate Culture
Forged through Global Activity and Producing
Human “Assets” with Resilience to Change
Based on the mission of the Human Resources Department,
which is “creating foundations to produce ʻdiverse humanresourcesʼ to support managerial and business strategies,” wearepromotingthestrengtheningofindividuals

andorganizations to identify environmental change for global

General Manager
Human Resources Dept.
Gotobusiness activities as opportunity, take on the challenge andact promptly.
In order to strengthen the foundations, we will work to upgrade skills while keeping eachindividual physically and mentally healthy and foster a mindset that takes advantage ofdiversity. In addition, we will train and support human “assets” that can contribute toproviding the value expected by our customers around the globe and to creating new value
derived from co-creation activities through opportunities that facilitate the expression of acan-do spirit in each role in relation to company-wide policies.

Expanding the New
Companies in Japan

Human

Resources

SystemtoGroup

We overhauled our human resources system in April 2014, and we are working to consolidate
this system while repeating Plan-Do-Check-Act cycles in order to establish an environment forthe development and active participation of diverse human resources and appropriately reward
initiatives aimed at creating value. In addition, we will introduce our new human resources
system at group companies in Japan as well in order to strengthen governance.
In fiscal 2015, we introduced our new human resources system at two companies, NTK
CERAMIC CO., LTD. and CERAMIC SENSOR CO., LTD., and we also began introducing the system
at two companies, SparkTec TONO CO., LTD. and KAMIOKA CERAMIC CO., LTD., in fiscal 2016.

New Human Resources System (main innovations) Qualification systems (occupation type and managerial positions) Wages systems (basic salary, allowance, bonus and retirement money systems)
 Rating system (objective management system) Continued employment system

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CSR > With Our Employees > Policy for Human Resources

Voice of Our Human Resources Manager

Anticipating Challenges that Will Change the Company
It has been two years since we introduced our new humanresources system. It has been a major shift from the pastrequiring the self-transformation of every single employee.
Can-do human resources are exactly what we need toaccomplish the changes.
Human Resources Dept.
Takahashi

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CSR > With Our Employees > Respecting Diversity

Respecting Diversity

Creating the Framework for Developing Global Human “Assets”
We develop human resources through a global personnel system under which overseas
human resources leave their home countries moving from the U.S. to Europe and Japan, from
China to Japan and take on new environments to capitalize on their careers at other groupcompanies. Moreover, with an eye to the future, we will continue to expand this system intoa foundation for the development of next-generation global management human resources.
In addition, with the objective of developing young
human resources in Asia, we recently hosted young
Indonesians

andworkedon“monozukuri”(manufacturing) with them at NGK SPARK PLUG CO.,LTD., overcoming cultural and religious differences.
They returned to their home country with the skills andknowledge they had learned, and we expect that they
will participate actively in the NGK SPARK PLUG Groupin the future.

Young human resources fromIndonesia working on “monozukuri”
at NGK SPARK PLUG CO., LTD.

Voice of a Global Human Resources Organizer

Aiming to be a Human “Assets” Company
We hold discussions with human resource organizers from around the world aimed at the
major common objective of developing human “assets,” and we are striving to create a global
framework.
With active participation by female employees, our team also
includes non-Japanese employees, and we have madeadjustments to treatment that differs from their homecountries,

includingwelcoming

human

resources

fromoverseas, and provided lifestyle support. We aim to increase
opportunities, enabling employees to venture into a foreigncountry with peace of mind and utilize the global network of
the

Human

Resources

Department

toestablishan

Global Personnel Office
Human Resources Dept.

environment that will expand individual capabilities at thegroup as a whole.

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CSR > With Our Employees > Respecting Diversity

Promotion of Diversity
We promote diversity in our organization as we believe that diversity and inclusion are essential
for companies to attain sound growth and ensure happiness for all employees. Here, diversity
means an employee-friendly workplace that accepts different personnel "assets" (one in which
all people regardless of their gender, age, disability or nationality, enjoy their work) and includes
diverse values and ideas that move the company forward.
Diversity >Strengthening and Maintaining Initiative to Promote Active
Participation of Women
We are promoting the active participation of
women as a management strategy from the top
down. The “DIAMOND Project” launched in June2013 with the following principles: “changing thecorporate culture,” “changing the consciousness,”and “changing the environment.” We hold events,
such as "Forum for Female Employees," "Training
for Next Generation Female Leaders," and"Career

Advancement

Support

Program,"“Career Training for Employees Returning fromChildcare Leave,” and “Womenʼs Networking” tosupport female employees in building theircareer and to stimulate their ambition. We also

Number of Female Employees in a Managerial
Posts by Fiscal Yearheld lecture meetings for all senior managerial
employees once or twice a year to deepen theirunderstanding of diversity management.
Furthermore, in all departments, including those of Japanese group companies, generalmanagers devised and implemented action plans that suited their own departments. In fiscal
2015, we presented Encouragement Awards to departments with outstanding initiatives. We
are also expanding systems to create a workplace that is more comfortable for female
employees.

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CSR > With Our Employees > Respecting Diversity

Voice of the Project Leader

We Aim to Create a Company Where All
Employees Can Play an Active Role
Our company has many excellent female employees. I hope
we will be a company where all employees can work
comfortably and their ideas can be realized.

Member of DIAMOND Project(Front row, center: Otsuka)

Utilizing Retired Employees
Employment of the elderly population is an
important issue for our society, as the startingage for recipients of the national pension has
been increased and the shift into an aging
society is progressing. In 2001, we introduced apost-retirement reemployment system, withthe aim of providing work opportunities for
retired employees and taking advantage of
theirlong-accumulated

knowledge

and

to

an

expertise.
Weareworking

hard

prepareenvironment that meets the needs of older
workers, our company and the worksite andNumber of Retirees Reemployed under
the Systemuse it in a way that takes into consideration theaptitudes, motivation and abilities of senior
employees.

Focus on Employing Non-Japanese Nationals
Since 2013, we have started putting a particular focus on employing non-Japanese nationals in
our new graduate recruitment, and have consistently employed at least three non-Japanese
students each year.
Moreover, recently we have not only been putting efforts into employing foreign students at
Japanese universities, but also non-Japanese students who have learned Japanese atuniversities overseas and wish to find work in Japan.
We have been active in this way from the angle of recruitment with aim of forming a globalorganization to respond to rapid globalization.

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CSR > With Our Employees > Respecting Diversity

Employment of the Disabled
Although the ratio of disabled employees at NGKSPARK PLUG CO., LTD. as of March 31, 2015 had
increased slightly from the previous fiscal year to
1.82%, we were unable to meet the statutory
employment rate of 2.0%. Recognizing thatfalling short of the statutory employment rate is
an issue, we are visiting Hello Work public
employment

centers,

Labor

Bureaus,andcompanies that are pioneers in this area andconsidering what action to take.
Percentage of Disabled Employees

Initiatives that Consider Work-Life Balance
We are promoting initiatives that consider the work-life balance of our employees. In fiscal 2013,
the number of employees on childcare leave exceeded 50, and male employees have also been
taking leave each year recently. Moreover, almost all employees returned to work after taking
leave.
We have changed the system for the shorter work day for child rearing by extending availability
from the conventional period of the first grade of elementary school to the end of the third
grade, allowing employees who wish to use the system to spend more time involved in theirchildrenʼs development.
Also, labor and management work together tomake active efforts aimed at reducing total
actual working hours. Awareness raising posters
have been put up at all worksites in efforts to set
out and publicize initiatives in employeesʼ own
worksites. Long working hours are prohibited asa rule, and Wednesdays are designated asimultaneous company-wide “No Overtime Day.”At worksites that have been unable to implement
this, management and labor confirm the reasonsfor it as well as countermeasures and makeefforts for the rigorous implementation of thissystem.

NGK SPARK PLUG Group CSR Report 2016

Number of Employees Using the
Leave Schemes

68CSR > With Our Employees > Human Resource Development

Human Resource Development
Basic Philosophy
We aim at the development of those who can communicate the company's traditional attitude
of emphasizing quality-oriented principle to younger employees, and also those who aredependable and have the ability to cope with changes inside and outside the organization andfollow through reforms. To this end, we implement diverse education and training programs
systematically, based on our corporate Human Resources Development Concept, with the aimof ensuring continuous capacity building of employees.

Education / Training Programs
Our education and training activities consist mainly of
OJT (on-the-job-training), through which employees
are trained to acquire technologies and knowledge intheir normal working situation. We also offer OFF-JT(off-the-job-training), providing employees with newtechnologies,

knowledge,

andskillsoutsidetheirrespective workplaces.
We have a wide range of OFF-JT programs that include
training by organizational level and role to provide
necessaryknowledge

andeducation,

environment

skills,andproduct

safetyEducation and training

qualityeducation,

manufacturing education, education in global businessand career development support. During fiscal 2015,
6,721 employees participated in OFF-JT programs.
In addition, in fiscal 2014, we began the roll out of Education & Training Planning (ETP), which
is a method for drafting education and training plans that are necessary and meaningful in eachdepartment. In the past, each department promoted different human resource development
and education with regard to education for improving the competencies needed to accomplishbusiness processes in each department. Our aim is to promote this through an integrated
system within the company as a whole. Starting with automotive-related business divisions infiscal 2014, we will roll out ETP to all departments in fiscal 2016.

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CSR > With Our Employees > Human Resource Development

Education and Training System Diagram

Implementation of training

Total hours of
training*(Hours)
FY2013

FY2014FY201567,35688,33382,059*The total of hours x the number of students, for training (level-specific training, global training etc.)
conducted by the Human Resources Dept. Training not conducted by the Human Resources Dept. is
not included.

Efforts to Upgrade Monozukuri Skills
NGK SPARK PLUG CO., LTD. is a manufacturing company, and maintaining and upgrading ourmonozukuri (manufacturing) skills is essential in order to continue producing quality items.
However, there are concerns about a decline in monozukuri skills at Japanese companies ingeneral due to the mass retirement of the baby boomers and the shift of young people awayfrom monozukuri with the changing times. Therefore, we established the Monozukuri Education
and Training Center and continually provide education and training on the necessary knowledge
and skills at the appropriate times.
At the Monozukuri Education and Training Center, we prepare practical experience kits and havea curriculum corresponding to the level of knowledge and skills of the students (levels 0-3). TheNGK SPARK PLUG Group CSR Report 2016

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CSR > With Our Employees > Human Resource Development

education and training is centered on safety, quality, maintenance, and improvement.
At present, we are providing education for new
employees (Level 0), education for departmental
transferees, education for suppliers, education forgeneralapplicants,

andeducationformanufacturing departments. We plan to graduallyraise the level, to expand education overseas, andto develop an e-learning educational environment.

Practical training in the use of tools

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CSR > With Our Employees > Human Rights and Labor

Human Rights and Labor
Basic Philosophy
The NGK SPARK PLUG Group respects the Universal Declaration of Human Rights and otherinternational norms, and has made respect for human rights a part of our corporate code of
conduct and our human resource policy. In addition, the group rules that we share throughout
the NGK SPARK PLUG Group forbid discrimination on the basis of nationality, race, ethnicity,religion, sex, marital status, pregnancy, ideology, sexual orientation (LGBT), disabilities, andparticipation in labor unions, as well as all forms of harassment, child labor, and forced labor. In
hiring and employment, too, we stipulate the granting of equal opportunity without
discrimination.
Principles concerning human rights and labor are incorporated in the ten principles of the United
Nations Global Compact which we joined in November 2016.The Group supports theseprinciples and will connect them to our further activities.
Participation in "United Nations Global Compact" >The Status of Employees
NGK SPARK PLUG Group, total number of employees(Persons)
FY2011FY2012FY2013

FY2014FY2015

Non-consolidated

5,845

5,881

5,809

5,823

5,829

Consolidated

12,064

12,563

12,76013,197

14,524NGK SPARK PLUG Group, form of employment (as of March 31, 2016)(Persons)
Regular employees

Temporary employees

5,829

NGK SPARK PLUG Group CSR Report 2016

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72

CSR > With Our Employees > Human Rights and LaborNGK SPARK PLUG Group, status of employees（FY2015）
Men

Women

Total

No. of employees

4,909

920

5,829

Average age

38.4

35.5

37.9

No. of years of service

16.3

14.9

16.1

Turnover rate

---

---

1.5%

Average annual salary

---

---

6,607,006yen

Education and Awareness-Raising
Our Compliance Guidebook, issued in 2012, establishes matters including respect for humanrights and the prohibition of harassment. The guidebook has been disseminated to employees
to raise awareness of these issues.
Drawing on the United Nations Global Compact, which we signed in 2016, we will increase
opportunities to offer education and information on human rights to raise awareness among
employees.
In our CSR Procurement Guidelines, we also require that business partners engage in respectfor human rights.

Anti-harassment Measures
The company management and the labor union are working together to prevent any
harassment and to protect the human rights of all employees.
Work Rules explicitly prohibit all sorts of behavior that constitute harassment, and we have ananti-harassment committee responsible for the prevention of such behavior by raisingawareness through the company newsletter and provide level-specific training programs.
We have also prepared an environment that facilitates consultation, with consultation desks set
up by labor and management in every factory, and have also enabled consultation through our
Corporate Ethics Helpline.

Labor-management Relations
Labor-management relations should be oriented to the combined employer-employee effort tocontribute to society through the provision of good products and services. At NGK SPARK PLUG
CO., LTD., both labor and management understand their respective responsibilities and strive toimprove the work environment through mutual trust and cooperation.
Labor-management conferences are held three to four times a year on individual workplace and

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CSR > With Our Employees > Human Rights and Labor

companywide bases, providing communication opportunities. These are chances to discussvarious topics including the company's situation and how to improve the labor environment,
and opportunities for employees to have their opinions heard.

Reduction in Working Hours
We are working to reduce overtime in order to reduce total working hours. When pre-planned
overtime is known about, the company management and the labor union confirm the situationin the workplace and engage in consultation designed to keep working hours within the target.
We have also launched a committee on labor-management working style. As the result ofidentifying and addressing 17 issues, we are promulgating no-overtime Wednesdays and thein-principle prohibition of late-night overtime and overtime in excess of five hours per day.

Greeting Campaign
We have been continuing our "greeting campaign"since September 2008, encouraging employees tosay "good morning" with a smile at the start of eachday and "goodbye" when leaving work. Once amonth,

intherepresentativesofmorning
the

and

labor

after

union

work,

and

the

companyʼs officers and management stand on the
sidewalks at the premises to greet employees.
Scene from the Greeting Campaign

Group Response to Domestic Labor Laws
Individual group companies need to respond to frequently updated labor laws. Even if a single
company in our group does not comply with a law, the responsibility lies with the entire group.
Therefore, we always keep our eyes on potential risks to prevent noncompliance. Also, an
exchange meeting is held every quarter between general managers of our group companies,
where problems that they face are raised, identified and information is shared. The entire group
continues to join hands in compliance.

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CSR > With Our Employees > Occupational Safety and Health Basic Policy

Occupational Safety and Health Basic Policy

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

Action Guidelines
 Observe the laws and regulation, and voluntary standards on industrial safety and health.
 Prevent occupational accident and decrease risks by continuously improving on the
management system and performance of industrial safely and health.
 Conduct efforts to increase physical and mental health, and prevent health disabilities of
employees.
 Disseminate this policy to all employees, promote awareness by education andenlightenment, and expand the industrial safety and health activities by involving all
employees.

Basic Philosophy
Occupational safety and health is the most familiar theme for employees in their daily duties. It
is the most important theme for enterprises as well in their efforts to provide a working
environment in which employees are encouraged to do their best in operations. We are wellaware that offering a secure and safe workplace is our important corporate responsibility.
To this end, we established our occupational safety and health management system (OSHMS)
in 2006, aiming to realize "zero accidents" and secure safety at all workplaces. We will continue
strengthening our safety and health management activities at a company-wide level, aiming toestablish a corporate culture of "safety first."

OSHMS
With the aim of eliminating on-the-job accidents and creating a comfortable, safe work
environment, we have established an in-house occupational safety and health management
system (OSHMS). We are accredited as complying with JISHA OSHMS Standards.
Each plant and office set safety goals and safety plans in accordance with our OSHMS guidelines,
aiming to conduct OSHM activities based on a "total involvement" principle. To attain a

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CSR > With Our Employees > Occupational Safety and Health Basic Policy

step-by-step improvement of our safety status, the progress and results of such OSHM efforts
are verified by our internal safety and health auditors as well as the plant safety and healthcommittee and the central safety and health committee.

Safety and Health Promotion Organization

Targets & Results for Fiscal 2015
1. Elimination of Work-related Accident
Fiscal 2015 Target

ResultEvaluation Fiscal 2016 Target

Promoted proper

Extended display of GHS labels to○

・Elimination ofmanagement of

subdividing containers throughaccidents from notchemical substances

education seminars and confirmed

stopping in

implementation status throughtroubleshootinginternal audits and workplace

workinspections.
Spread and entrenched

Visited departments directly andrisk assessment

implemented activities to spread andPromoted

diffuse risk assessment.

○

comprehensive hazard
source identification

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CSR > With Our Employees > Occupational Safety and Health Basic Policy

Promoted activities toDistributed accident preliminary

prevent similarreports and preliminary reports on

accidents

accidents at other companies in○

addition to expanding activities toprevent similar accidents (awarenessraising and surveys) as appropriate.
Spread on-the-spot risk

Promoted consolidation of activities

prediction and pointing

through publicizing by committee

risk levels atand calling

and worksite inspections.

workplaces

Strengthened

safetyExpandedandpatrolseach

health(conduct aspect)safetyplant

observations
for

to

○

・Understanding of○continual

implementation by the Safety and
Health Committee.

2. Improvement of Work Environment
Fiscal 2015 Target

ResultEvaluation Fiscal 2016 Target

Maintained and

Implemented work environment○

・Improvement of

improved the working

measurements and madeworksite working

environment in the

improvements based on results ofenvironment

workplace (healthmeasurements. Also promoted(health aspect,

aspects and safety

improvements through the STOP!

safety aspect)

aspects)

Falls Project.

3. Promotion of Health
Fiscal 2015 Target

ResultEvaluation Fiscal 2016 Target

PromotedContinually provided health advice○

self-management of

Also held health lectures and healthself-management

healthpromotion fairs at each plant asof mental andplanned.

physical health○・Promotion of・Workplace checks

Workplace checks for

Expansion of advice following healthpersonnel withcheckups and measures against longfor personnel withsuspected healthworking hours to worksite

suspected mental

problems(individual). Medical professionals

and physicalprovide interviews where necessary.

health problems

Each department at Komaki Plant
held mental health seminars ahead ofother plants.

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CSR > With Our Employees > Occupational Safety and Health Basic Policy

4. Enhancement of Education and Enlightenment
Fiscal 2015 Target

ResultEvaluation Fiscal 2016 Target

Enhanced safety andHeld various safety and health○health education,

education seminars and special

Safetyutilized learning

education for personnel who handle

Observations bythrough experiencechemical substances. Continued toline managers

hold safety, health and environment

・Promotion andconference at each plant to raise

implementation ofawareness of safety and health.

education,○

・Promotion oftraining andDeveloped procedures

Identified troubleshooting workfor non-routine workthrough on-the-spot risk prediction

awareness raisingand promoted

and promoted development ofon safety andeducation (skill

procedures. Implemented activities

healthevaluation)

to consolidate on-the-spot risk

・Consolidation ofprediction through worksite

on-the-spot risk

inspections.

prediction andpointing andcalling andcompliance withcompany andplant rules

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CSR > With Our Employees > Occupational Safety Activities

Occupational Safety Activities
Toward Elimination of Occupational Accidents
In fiscal 2015, the total number of accidents was 13, and the total frequency rate was 1.06. The
number of accidents itself was at the same level as the past few years. However, the results oflabor and managementʼs joint safety and health activities which include risk assessment,
on-the-spot risk prediction and pointing and calling are becoming apparent little by little asaccidents involving departments operating equipment that are likely to lead to serious accidents
and accidents resulting in absence from work have been on a downward trend. On the other
hand, the percentage of occupational accidents involving temporary workers is on the increase.
Therefore, we are working with temporary employment agencies in an effort to reinforce
training and awareness and promote further reductions in occupational accidents.
Furthermore, in fiscal 2015, we worked to raise employeesʼ awareness of traffic safety byintroducing dashcams into company-owned vehicles and holding traffic safety seminars for all
employees.

A traffic safety seminar

Frequency Rate of Accidents

Enhancement of Education and Enlightenment
We provide safety education to match each organizational level, including safety and healtheducation for new employees, third-year employees, leaders, subsection chiefs and managers.
In addition, since fiscal 2014, we have held new safety training for tenth-year employees in aneffort to stimulate routine safety and health activities in the workplace. We also hold a safety,
health and environment conference at each plant every year as an awareness-raising activity
for all employees. During the conference, we work to raise employeesʼ awareness of safety and

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CSR > With Our Employees > Occupational Safety Activities

health through such means as introducing safety and health initiatives and providing
experiences with risk simulators.
We distribute the “Handbook for Safety and Health Management” to all employees as a tool forbuilding a culture of safety at NGK SPARK PLUG CO., LTD. Reading through the handbook andother uses of it in each workplace translate into safe conduct by individual employees. Managers
and supervisors also carry out workplace patrols, risk prediction and share examples of
Hiyari-Hatto (near misses), acting as the leaders of workplace safety and health management.
The status of these workplace activities is confirmed through internal audits and other means.
The Safety and Health Committee contributes to building safe and secure workplaces byconducting inspections of equipment and inspection tours that include plant managers, andpointing out issues that are difficult to notice through voluntary inspections by oneʼs own
department, making use of the merits of cross-departmental activities.
Furthermore, starting in fiscal 2014, we have been spreading on-the-spot risk prediction toconfirm hazards and procedures prior to work that is infrequent or has not been performed fora long time and pointing and calling in order to prevent human error, and this has led to anincrease in our employeesʼ awareness of safety.
We are also promoting a strengthening of safety and health activities globally. In fiscal 2015, we
visited the plants of NGK SPARK PLUGS MALAYSIA BERHAD and PT NGK BUSI INDONESIA andcarried out confirmation of local activities and exchange of information. Going forward, we willcontinue striving to upgrade the level of safety and health in the NGK SPARK PLUG Group.

Safety and Health Education and Training in Safety Training Dojo
In order to provide education with a policy of believing that cultivating the sensitivity of
employees to be aware of risks avoids accidents, we established the Safety Training Dojo in partof the Monozukuri Training and Education Center in March 2013. We have 32 kinds of simulationequipment here, and employees of NGK SPARK PLUG CO., LTD. and group companies learn
about accident risk and the circumstances in which they occur through simulations of industrial
accidents that are difficult to communicate verbally such as pinching or entanglement withaccident scenarios that could happen in the workplace.
The participants themselves also consider how an industrial accident can be prevented in group
discussions.
Last year, approximately 1,000 employees underwent training.

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CSR > With Our Employees > Occupational Safety Activities

Safety and Health Committee Activities with Workers in the
Workplace
As one activity to create a safe and secure workplace, the Safety and Health Committee
introduced a new inspection technique called “Safety Observation” in fiscal 2015.
In the conventional inspections, there was a tendency to focus on identification of the 5S in theworkplace. However, under Safety Observation, we check workplace risks, primarily the actionsof workers, by observing from a fixed place in the workplace because many occupational
accidents occur due to unsafe actions during work.
Through Safety Observation, it is possible to be aware of unsafe actions that arise from muri,muda, mura (unreasonableness, waste and inconsistency) by workers that is not noticed whensimply looking at work procedure manuals. Participants have also expressed positive opinions
including such comments as, “I felt that it is an effective way to improve work methods.”

Risk Assessment (RA) Initiatives
Under risk assessment (RA) which is the core activity of our occupational safety and healthmanagement system (OSHMS), we visualize diverse potential risks, including workplaceequipment, chemical substances and work. At NGK SPARK PLUG CO., LTD., we revised the RA
technique that we previously used in fiscal 2013, switching to a technique focused on hazard
sources. We expanded this RA activity within NGK SPARK PLUG CO., LTD. in stages andcompleted it in fiscal 2014. At present, we are promoting studies and evaluation in individual
workplaces. The Environment & Safety Management Department performs resolution of
uncertainties and follows up progress for workplaces following the expansion of the activity
through such means as individual inspections.
Moreover, starting in fiscal 2015, we have broadened
the scope of expansion to group companies in Japan
as well, and we have been holding a series of RA
seminars.
Through this activity, we can pave the way to thecreationofsafe

determining

the

and

secureorderofworkplacesbypriority

forcountermeasures according to the magnitude of riskin the workplace and implementing systematiccountermeasures to reduce risk and workplace
management measures.

NGK SPARK PLUG Group CSR Report 2016

Scene from hands on RA training
using actual equipment

81

CSR > With Our Employees > Occupational Safety Activities

Voice of Our Safety and Health Leader

Participation by All Members in Safety Declarations
The cooperation of every single person working in theworkplace is needed in order to reduce industrial accidents.
During the safety, health and environment conferences held at
each plant every year in order to get employees to think about
safety a little and translate thoughts into action, we got
people, including managers, to fill out “My Safety Declaration.”
We really want people to put their safety declarations into
practice in the workplace as well and increase the amount ofEnvironment & Safety
Management Dept.
Ichikawa

time they spend thinking about safety.

Improvement of Working Environment
We conduct working environment measurements based on laws and regulations, targeting
workplaces that handle chemical substances and workplaces subject to significant dust
pollution or severe noise. Plants and operational sites that have been classified in the second or
third management category are especially encouraged to implement effective solutions so thatthey can be reclassified in the first management category. We also take measures to prevent
cases of heat stroke in the summer by measuring the WBGT (Wet-Bulb Globe Temperature used
as a heat index) in hot workplaces, encouraging an adequate intake of water and salt, providing
cooling gear and the like, holding seminars on preventing heat stroke, and installing oral
rehydration solution vending machines.
In our offices, we measure the level of lighting, temperature and humidity to ensure that theenvironment is suited to the work. In winter, we install humidifiers in each workplace to help
prevent the spread of colds and influenza.
In fiscal 2015, as part of the activities under the STOP! Falls Project being run by Japanʼs
Ministry of Health, Labour and Welfare, labor and management united as a company to develop
activities aimed at eliminating falls, including creating a map of fall hazard areas and separatingpedestrians and vehicles, obtaining input and countermeasures through the themes atworkplace meetings, and raising awareness.

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CSR > With Our Employees > Health Promotion Activities

Health Promotion Activities
Health Promotion
We announced "Being your best physical and mental condition to your workplace and bringthem to your home with good smile" as our company slogan. Self-discipline is a key to themaintenance of one's condition, and we promote employee's autonomous health management
efforts. We also include health information in the company newsletter to raise employees'
health consciousness and promote self-management of health.

Health Checkups
Our industrial physicians, general practitioners and public health nurses follow up with
employees who have abnormal results in their health checkups and refer them to medical
institutions when necessary. These coordinated efforts allow employees to maintain andimprove their own health.
We include health information in the company newsletter every month to raise employees'
health consciousness and promote self-management of health.

Strengthening Mental Health Care
We are working on in-house and external Line-Care educational programs for managers, andimplementing to read the Self-care hand book in our workplace to make our employee prevent
awareness of disease and self-management of health. Also we are strongly working on in-house
lectures and setting up the Support-line for employees who feel stress and problems mentally.
We also carry out stress checks and analyze
the mental and physical impacts that theworkplace environment has on employees in
order

to

prevent

mentalillness

amongemployees due to stress in our efforts tocreate

a

safe

and

secureworkplaceenvironment.

The Self-Care Handbook

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CSR > With Our Employees > Health Promotion Activities

Efforts by NGK SPARK PLUG CO., LTD. Health Insurance Society
Working together with the company and the labor union, the health insurance society provides
a wide variety of programs to support the mental and physical good health of member workers
and their families.
Specifically, health management and disease prevention efforts conducted by the healthinsurance society include: metabolic syndrome improvement / prevention programs; subsidies
for flu vaccination; and other health management promotion programs such as walking tours
and bus-hiking tours. The health insurance society also operates three clinics at our domestic
plants, as well as a resort facility for member employees in the Gokasho Bay area located in
Minami-Ise, Mie Prefecture.

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CSR > With Local Communities and International Society > Social Contribution Policy

Social Contribution Policy

Social Contribution Policy
As a good corporate citizen, we at the NGK SPARK PLUG Group aim to contribute to society
through the effective use of management resources.

Action Guidelines
 We focus on the following activities:
 Activities closely related to our business fields and also to local communities
 Activities that respect the cultures of individual countries and local communities, aswell as activities that contribute to society such as traffic safety education programs
 Activities that contribute to the next generation society, focusing on environmental
conservation, science, and education, as well as cultures to be bequeathed to thenext generation, etc.
 We strive to create a corporate culture that encourages executives and employees toparticipate together in social contribution activities as social citizens. We also respect andsupport their active involvement in society.

Basic Philosophy
The NGK SPARK PLUG Group has established sites in every region of the world. We hold respect
for local culture and customs, and engage in smooth communication with local communities. As
members of those communities, we aim to work together in building a comfortable society,while striving to participate in regional development, environmental preservation, and otheractivities that contribute to society.

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CSR > With Local Communities and International Society > Social Contribution Policy

Expanding our Locally Rooted Social Contribution Activities bothin Japan and Abroad
NGK SPARK PLUG CO., LTD
To encourage the further development of
culture and the arts, as well as to contribute to
the invigoration of local communities, we held
a musical event at NTK Hall in Nagoya, a venue
that bears our company name in Japanesethrough a partnership in naming rights. We
have held the event since 2013,

inviting

residents of the community, families in Aichi
Prefecture who were impacted by the Great
East Japan Earthquake, and employees of thecompany. In 2015, about 3,500 people cameto the musical event.

Letters of appreciationfrom visitors to the event

NTK CERATEC CO., LTD.

Spark Tec Tono CO., LTD.

Taking our change of name as an opportunity

At the suggestion of employees, we took

and hoping to be a company loved by ourpart in a local cleanup within Kani, Gifu

home region of Sendai, our Headquarters

Prefecture.

Factory made a donation of rehabilitation

Headquarters Plant and the Tono Plant

equipment to the Sendai City Council ofjoined with members of their families, withSocial Welfare.

85 persons in total taking part in the

Employees

from

the

Nino

cleanup.

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CSR > With Local Communities and International Society > Social Contribution Policy

NGK Spark Plug (Shanghai) CO., LTD.

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

Employees

atWe took part in the Adopt-A-Highway

intersections on non-working days to urge

program, becoming foster parents to thepassersby

arterial road in front of the West Virginia

of
to

our

company

observetrafficstoodsignals,

contributing to the maintenance of orderly

Factory

andperforming

traffic in the city.

planting activities.

cleanupsandNGK Spark Plugs (U.K.) LTD.

Ceramica e Velas de Ignicao NGK do Brazil Ltda.

Employees bicycled through five European

We donated ceramic tiles manufactured by ourcountries to raise funds for people withcompany, for use as materials in sculptures

Down syndrome.

made in schools by local artists.

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CSR > For Environmental Protection > Eco Vision 2020

Global Eco Vision 2020

Environmental Policy
As a globally developing core manufacturing corporation, we are aiming to simultaneously
realize environmental preservation and corporate growth, based on the participation of all our
employees, in order to contribute to the construction of a sustainable society.

Action Guidelines
 We strive to utilize our unique technology to develop and offer environmentally-friendly
products.
 Through all of our business activities, we make particular efforts to prevent global
warming, make efficient use of resources, and control chemical substances, in order toconserve the environment.
 We strive to raise the awareness of the environment among our employees to ensure thatthey all make positive efforts to conserve the environment.
 We observe the laws, ordinances, and agreements concerning environmental
conservation.
 We aim to substantiate our information disclosure and communication activities, and also
carry out environmental contribution activities aimed at coexistence with the regional
community.
 In order to achieve these targets, we will strive to make ongoing improvements to ourenvironmental management system.

Basic Philosophy
Environmental issues are a common challenge for all mankind. Every member of the NGKSPARK PLUG's GROUP will work towards reducing environmental burdens from our businessactivities as much as possible and 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 so that we may all work together
to contribute to creating a sustainable society.

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CSR > For Environmental Protection > Eco Vision 2020

Formulating Global Eco Vision 2020 and launching activities
In our activities for environmental conservation,
we set medium-term environmental targets.
From fiscal 2016, we have drawn up a vision forour company and launched activities under
Global Eco Vision 2020.
We set four important environmental tasks,"Natural resources", "Global warming", "Toxic,
hazardous

chemicals"(Environmentally-Friendly

and

"Key

products)",

qualityunder

Global Eco Vision 2020. By tackling these tasks
through our business activities and on afoundation of legal compliance, communication, and raising consciousness of the environment
we will work to enhance our manufacturing power, increase our brand value, and contribute to
not only the sustainable development of our company, but of society, also.

Comment from a participant in formulating Global Eco Vision 2020

Formulating Global Eco Vision 2020
It is important to undertake environmental activities from along-term standpoint and with all participants focused on thesame things. While our company had already been engaged in
activities established under Eco Vision, the name for our
medium-term environmental targets, in April 2016 weestablished Global Eco Vision 2020, which depicts our vision
for the company in fiscal 2020.

Environment and Safety
Management Dept.
Nakamura

Global Eco Vision 2020 aims to align the direction of managerial tasks, business tasks, andenvironmental activities. It was shaped through considerations of what society demands of us
and what is important for us as a company, with a particular focus on importantenvironmental issues.
I was involved in its formulation as a member of a cross-departmental working group. Under
the Vision, we will push ahead with environmental activities in a way that lets employees
come together as one, and will strive to provide true value in terms of the environment.

NGK SPARK PLUG Group CSR Report 201689

CSR > For Environmental Protection > Eco Vision 2020

Environmental Action Plan
Major items

Minor items

Global Warming

Production

Targets for fiscal 2020
CO2 Basic unit 5% reduction compared to fiscal 2015
(Average yearly reduction of 1%)

Depletion of resource

Logistics

Promotion of efficient logistics

Waste

Promotion of reduction of waste material by reducing
defective products
Promotion of product design which takes into
consideration minimization of waste

Water

Promotion of efficient water utilization

Raw material

Promotion of product design which takes into
consideration minimization of the amount of raw
material used

Environmentally-friendly---

products

Creation of an approval system forenvironmentally-friendly products, and expansion ofenvironmentally-friendly product lines

Hazardous chemical---

substances

Taking decisive action to comply with the various laws
and regulation including ELV, RoHS and REACH---

Promotion of the use of substitute materials to
replace materials that place a burden on theenvironment---

Total abolition of HCFC2015 Targets and Results
Evaluation criteria Achieved: ○ Not achieved: ×

Environmental Management
Item

Targets for fiscal 2015

Results for fiscal 2015

Evaluation

Promotion of

Formulate Global Eco Vision

Formulated Global Eco Vision○

globally unified

2020

activities
Promotion ofMake energy and waste costs

Methods for making costs

environmental

visible, and create

visible were considered, but

activities connectedmechanisms that lead to the

did not progress to theto corporate

promotion of reduction

creation of mechanisms

management

initiatives

NGK SPARK PLUG Group CSR Report 2016

×90

CSR > For Environmental Protection > Eco Vision 2020

Business Activities
Item

Targets for fiscal 2015

Results for fiscal 2015

Evaluation○

Reduction of CO2

Emissions: down 10%

Emissions: 158,765 tons (downemissionsfrom 2007

24.0% from fiscal 2007)

Per unit production: down

Per unit production: 0.569

8% from 2007

tons/million yen (down 19.7%
from fiscal 2007)

Reduction of

Per unit production: down

Per unit production: 0.0400

discharge of wastes

30% from fiscal 2007

tons/million yen (down 59.1%

and valuable○from fiscal 2007)

materials
Reduction of water

Per unit production: down

Per unit production:use

8% from fiscal 2007

4.672m3/million yen (down○

38.4% from fiscal 2007)
Reduction in PRTR

Emissions: down 80%

Emissions: 140.6 tons (downemissionsfrom fiscal 2007

34.0% from fiscal 2007)

×

We reduced usage throughsubstitution, but plans to
introduce solvent recovery
equipment to control atmosphericemissions were not realized, due
to changes in our business.
Development of

Expansion of LCA to all the

We conducted a review ofenvironmentallycompanyʼs operation sites

mechanisms for productfriendly products

×

assessments, but did not progress
to company-wide deployment of
LCA

Enhancement ofConstruction of a

Due to time required for surveying

the management ofmanagement system on

and delays in deployment inchemical materials

chemical materials

systems, the chemical materials

including supply chainsmanagement system was not×completed as planned.
Promotion of green

Expansion of the green

We expanded these according toprocurement

supplier system

plans.

NGK SPARK PLUG Group CSR Report 2016○91

CSR > For Environmental Protection > Eco Vision 2020

Item

Targets for fiscal 2015

Results for fiscal 2015

Recycling of used

Establishment of recycling

Consideration of recycling

products

technology for products

technologies for used products

and packaging materials

was stopped and the technologies

Evaluation
×have not been established.
Reduction of CO2

Domestic distribution

Per unit production: 0.359kL/100

emissions inenergy per unit

million yen (down 19.1% fromlogistics

production: down 8% fromfiscal 2007)○

fiscal 2007
Environmentally

Promotion of

We undertook sales expansion offriendly sales

environmentally friendly

environmentally friendly products,

activities

sales activities

and publicized environmentally○friendly products through exhibits,
catalogs, etc.

Social Cooperation
Item

Targets for fiscal 2015

Results for fiscal 2015

Evaluation

Improvement of

Improvement of disclosure

We disclosed our CO2 emissions in○

informationof global environmental

our CSR Report, including

disclosure

information

emissions from overseas plants

Enhancement of

Enhancement of

We continued conducting plantcommunication

communication withtours for local residents andcommunities

stakeholders, and participating in○

EPOC international exchange
subcommittee meetings
Enhancement of

Enhancement of social

We conducted regular cleanups

social contribution

contribution toaround our plants and participatedcommunities

in regional cleanup activities

Enhancement of

Enhancement of actions

We participated in activities toactions forfor biodiversity

preserve biodiversity in every

biodiversity

preservation

regionRaisingEnhancement of

We continued to carry out ongoingenvironmental

environmental education

education, and launched new○○preservation

consciousness

NGK SPARK PLUG Group CSR Report 2016○

education, such as a legal seminar

92

CSR > For Environmental Protection > Environmental Burdens from Business Activities

Environmental Burdens from Business Activities
Environmental Burdens from Business Activities
Knowing what impacts our business activities have on the environment is the first step incarrying out environmental preservation activities. Our material balance, which expresses theamounts of our inputs (such as the raw materials and energy used by our Group) and theamounts of our outputs (such as the products shipped and the wastes emitted outside theGroup as the result of our business activities), is as follows.

NGK SPARK PLUG Group CSR Report 201693

CSR > For Environmental Protection > Environmental Burdens from Business Activities*1 The covered scope of each amount reported in INPUT and OUTPUT is indicated with 〇.
*2 Domestic Group companies are NITTOKU ALFA SERVICE CO., LTD., NITTOKU UNYU CO., LTD.,
CERAMIC SENSOR CO., LTD., NTK CERAMIC CO., LTD., NANSEI CERAMIC CO., LTD., KAMIOKACERAMIC CO., LTD., Spark Tec WKS CO., LTD., NICHIWA KIKI CO., LTD., and Spark Tech TONO
CO., LTD.

NGK SPARK PLUG Group CSR Report 2016

94

CSR > For Environmental Protection > Environmental Management

Environmental Management
Basic Philosophy
Our environmental management system, operating on the environmental policy shared by theentire Group, ensures systematic and effective environmental preservation activities. Under thissystem, all Group companies strive to achieve the Eco Vision.
The status of system operation is confirmed through internal audits. At the same time, thecentral and regional environment committees check progress towards achieving our goals andendorse challenges for each group, division, region, and department to facilitate continuous
improvement.

Environmental Activity Promotion Organization

The Establishment Status of our Environmental Management
SystemWe received ISO 14001 consolidated certification for NGK SPARK PLUG CO., LTD. and 10 group

NGK SPARK PLUG Group CSR Report 201695

CSR > For Environmental Protection > Environmental Managementcompanies in Japan. As ISO14001 was revised in 2015, we are making preparations to undergo
an upgrade screening in fiscal 2016.
Other domestic and overseas Group companies are also individually moving forward with
ISO14001 acquisition, with 16 overseas Group companies having acquired certification by theend of fiscal 2015.

Scope of applicability of consolidated certification

ISO 14001 Certified Locations

Environmental Risk Management
Inherent in business activities are various risks including environmental incidents and pollution.
NGK SPARK PLUG's GROUP identifies these risks and endeavors to reduce and / or preventthem.

PCB Control
In October 2015, an amount of PCB wastes equivalent to 51% of the total amount of PCB
wastes stored at our Headquarters Plant and Komaki Plant were properly disposed of by adesignated body.
We continue to maintain strict storage controls for PCB wastes remaining at the Headquarters
Plant and Komaki Plant and PCB wastes stored at SparkTec WKS.

NGK SPARK PLUG Group CSR Report 2016

96

CSR > For Environmental Protection > Environmental Management

On-site Confirmation of Waste Material Treatment
We regularly visit our waste disposers to confirm that consigned waste materials are being
processed in accordance with our agreement. In fiscal 2015, we visited 54 companies.

Preventing Chemical Leaks
In order to prevent soil and water contamination caused by chemical leaks, we have
implemented countermeasures involving equipment that includes preventing leaks through thedevelopment of double layered storage tanks and the early detection of leaks by installing pipes
above ground.

Drills for Emergency Situations
We hold regular drills for emergency situations to
prepare for unforeseen accidents, etc. Each department
identifies potential environmental accidents to prevent
associated adverse environmental impacts.

Handling of Asbestos

Emergency Response Drill

We have been taking appropriate measures to prevent health hazards from asbestos. Allasbestos used in our facilities has been completely removed. Some asbestos is still present inbuildings as insulators, and we will continue to adhere to stringent control measures.

Compliance Status
To ensure compliance with environmental laws and regulations as well as agreements with local
municipalities, etc., we set stringent voluntary standards to prevent violations and complaints.
In fiscal 2015, there were five instances of violations of laws and regulations in Japan. As eachof these involved problems in mechanisms for management and monitoring, we are quickly
carrying out countermeasures and working to prevent recurrence.
Data on Air, Water Quality, Noise and Vibration

NGK SPARK PLUG Group CSR Report 2016

97

CSR > For Environmental Protection > Environmental Management

Numbers of Violations (cases)
Company

2012

2013

2014

2015

NGK SPARK PLUG CO., LTD.

0

0

1

3

Affiliates (Domestic)

1

0

2

2

Affiliates (Overseas)

1

0

0

0

Company

2012

2013

2014

2015

NGK SPARK PLUG CO., LTD.

0

3

2

0

Affiliates (Domestic)

1

0

0

0

Affiliates (Overseas)

-

-

-

-

Numbers of Complaints (cases)

Handling Violations in Fiscal 2015
Company

Situation

Countermeasures

SPARK

The plant did not issue notification of

The plant prepared a notification

PLUG CO., LTD.

changes to a specified factory in accordance

document and is considering

Komaki Plant

with the Factory Location Law, when setting

measures to prevent recurrence.

NGK

up a new gas cylinder storage location (No.
12 Factory, north side).
NGK

SPARK

The plant's multiple of the designated

The plant made notifications for

PLUG CO., LTD.

amount of hazardous materials exceeded thefacilities

Ise Plantprescribed value, requiring notifications andhazardous

other procedures concerning the use ofundertook a review of stored

small-volume hazardous materials.

amounts to avoid exceeding theusing

small-volume

materials

andprescribed value for the multiple.
NGK

SPARK

The plant moved and used equipment that is

The plant ceased use of the

PLUG CO., LTD.

subject to the Water Pollution Control Act

equipment

Ise Plant

before issuing notification of the transfer.

notification of transfer.

An

The

Spark

Tech

environmental

ISO

external

audit

plant

and

made

reviewedthestorage

Tono CO., LTD.

revealed that the plant was storing moremethods to avoid exceeding theNinomaterials that are subject to notification

specified

number(i.e.,

theHeadquarters

under the Fire Service Act than they had

notifiednumber),

and

made

Plant

reported, and were in excess of the amountefforts to prevent recurrence.

tobestoredinanindoorhazardous

materials storage location.

NGK SPARK PLUG Group CSR Report 2016

98

CSR > For Environmental Protection > Environmental Management

Spark

Tech

An

environmental

ISO

external

audit

was

storing

The

plant

reviewed

storage

Tono CO., LTD.

revealed

Tono Plant

hazardous materials in an indoor hazardous

allowing

materials

storagequantities by type, and took

notification

as

that

the

plant
location

small-amount

for

which

hazardous

methods, created check sheets
managementofsteps to prevent recurrence.

materials was not made under the Fire
Service Law.

Environmental Accounting
What is important in promoting environmental management is to gain a grasp of the costs andeffectiveness of environmental preservation activities. We have been adopting environmental
accounting since 1999, and in 2003 the accounting scope was expanded to include the entire
Group.
In fiscal 2015, our environmental conservation costs were 11,387 million yen on a
non-consolidated basis, and 12,363 million yen for the Group, a decrease of 1.3% over theprevious fiscal year. The economic benefit associated with environmental conservation activities
totaled 129 million yen on a non-consolidated basis.

Environmental Conservation Costs and Economic
Benefits (non-consolidated)

Environmental Conservation Costs (Group)

Environmental Accounting

NGK SPARK PLUG Group CSR Report 201699

CSR > For Environmental Protection > Environmental Management

Eco-efficiency
We calculate eco-efficiency by determining net sales per unit of CO2 emissions and generated
waste, and endeavor to improve it. In fiscal 2015, CO2 decreased and waste increased due toplant reorganization performed in accordance with changes in our business. As a result, the CO2
index increased and the waste index decreased slightly compared to the previous fiscal year.

CO2 Index

Waste Index

Environmental Education
Environmental education is conducted to raise the employees' environmental awareness. In
fiscal 2015, in addition to the existing courses on environmental basics and calculation methods
for substances with an environmental burden, we created a new course on environmental laws
and regulations (for facilities) aimed at strengthening legal compliance.
Looking ahead, we plan to establish a new course on
environmental

laws

and

regulations(forchemical

substances) in order to strengthen chemical substancemanagement in divisions and departments.
Environmental education will be continued in fiscal 2016
to improve the overall level of the environmental
consciousness of Group employees.
Course on environmental laws andregulations (Headquarters)

NGK SPARK PLUG Group CSR Report 2016

100

CSR > For Environmental Protection > Environmental Management

Status of course participation (FY 2015)
Item

Number of times

Course on environmental basics
Course on calculation methods for substanceswith an environmental burden
Course on environmental laws and regulations(for facilities)

Number of persons taking
course22 times

393 persons

8 times

124 persons

15 times

266 persons

Comment from an environmental education course participant

Undergoing environmental education
By taking the course I gained a new appreciation of how
important it is that we, as members of the Nittoku Group, takeaction with regard to the environment.
We at SparkTec WKS had been carrying out production at
three plants: Kasadera (Nagoya), Oguchi (Oguchi, Aichi
Prefecture), and Satsuma (Kagoshima Prefecture). However,in fiscal 2015 we built a new headquarters plant (Komaki,
Aichi Prefecture), and are transferring and consolidating theSparkTec WKS CO., LTD.
Noda

Kasadera and Oguchi Plants there. From here on out, we plan
to operate under a two-plant structure, with the new plant
and the Satsuma Plant.
The plant construction, transfer, and consolidation enables a 30% increase in the efficiency of
air conditioning using geothermal energy, as well as a reduction in CO2 by switching to LED
lighting and reducing losses during transport.
For my personal initiatives, I will adopt the good points of the Kasadera and Oguchi Plants,
and, with the goal of reducing waste, will extend the life of jigs and tools this fiscal year, andfrom here on out, plan to combine normal work and environmental initiatives in my activities.

NGK SPARK PLUG Group CSR Report 2016

101

CSR > For Environmental Protection > Environmental Management

Support for Suppliers
We offer our suppliers environmental education and support for establishing environmental
management systems to acquire a third party certification. Since 2007 there have been
applications for assistance from 43 companies, and 42 of them have obtained ISO 14001 or
Eco-Action 21 certification. We continue to provide assistance to four companies configuring
environmental management systems.

Environmental Management Classes Held in Fiscal 2015
Topic

No. of Companies Attending

No. of People Attending

ISO14001

10

16

Eco-Action 21

5

16

EMS Third-Party Certification Support Conducted in Fiscal 2015
Topic

No. of Companies Attending

Eco-Action 21

NGK SPARK PLUG Group CSR Report 2016

1102

CSR > For Environmental Protection > Environmentally-Friendly Products

Environmentally-friendly Products
Basic Philosophy
As a manufacturing company expanding globally, we strive to meet the expectations ofcustomers around the world and, in order to contribute to the global environment, to develop
and provide environmentally friendly products. At the same time, we also work to constrain theenvironmental impacts generated during production, and aim to reduce environmental impacts
over the entire product life cycle.

Product Assessment
To reduce the environmental burden of a product over its entire life cycle, we carry out productassessments during design and when changing specifications.
During a product assessment, the existence of substances of environmental concern, theamount of energy used, etc. are confirmed at each of the design, manufacturing distribution,use, and disposal stages. If the assessment determines that there is a significant environmental
impact, countermeasures will be taken before development is continued.

Developing Environmentally Friendly Products
Our company provides products that contribute to the environment, including spark plugs andautomotive oxygen sensors that help improve fuel efficiency and purify exhaust gases fromautomobiles, as well as LED packages and cutting tools that are long-lasting and help conserve
energy and resources. We are also undertaking development of new products in theenvironmental area, such as solid oxide fuel cells (SOFCs).

NGK SPARK PLUG Group CSR Report 2016

103

CSR > For Environmental Protection > Environmentally-Friendly Products

From here on out, we will strengthen activities to promote energy and resource conservation
more than ever in the manufacturing process, by working these into the design stage. Throughthis, we will advance development of products that contribute to the environment in terms ofboth product functions and manufacturing processes.

NGK SPARK PLUG Group CSR Report 2016

104

CSR > For Environmental Protection > Hazardous Chemical Substances

Hazardous Chemical Substances
Basic Philosophy
Regulations and global concern regarding hazardous chemical substances are increasing year
by year. Responding appropriately to these has become vital to the continuation of business.
We have a three-step management system for handling substances of environmental concern:
1. Answering requests from customers, 2. Handling within the Group, and 3. Procurement fromsuppliers.
Naturally we ensure compliance with laws and fulfill customer requests. More than that, we aim
to reduce the use and emission of substances of environmental concern so as to minimize theireffect on the environment and human health.

Answering Requests from Customers
With the reinforcement of regulations on chemical substances contained in products, requests
from customers in the automobile, electrical and electronics industry regarding improved
compliance are increasing. The REACH Regulation of the EU has triggered an increase in thestatus of chemical substances contained in products; we are taking all the appropriate
measures including submission of Non-Containing Declarations, submission of various data with
IMDS, AIS, etc., and handling investigations and audits regarding our management systems.

Handling within the GroupTo respond appropriately to increasingly
strictchemical

substance

regulations

worldwide, we perform non-containment
managementfor

products

and

usage

management within plants.
For hazardous chemical substances, we set
hazard rankings according to toxicity and thestrictnessofregulations,andestablish

handling standards for each rank. In fiscal
2015, we reviewed the operation of ourhazardrankings

andstrengthened

ourstructure for examinations of whether to use

NGK SPARK PLUG GroupCSR Report 2016

Management System

105

CSR > For Environmental Protection > Hazardous Chemical Substancesa substance.
From here on out, we will work toward substitution of hazardous chemical substances and thestrengthening of management, to assure compliance with laws and with the demands ofcustomers.

Hazard Rank
Rank

Handling standard

Prohibited

Use is prohibited.

substances

Substances covered
Substances prohibited from use or strongly
restricted by regulations.

Restricted

Safer substitutes will be sought,

Hazard level and toxicity are equivalent tosubstances

while making efforts to reduce theprohibited substances, but an immediateuse of current substances.

changeover is impossible due to its special
characteristics.

Monitored

Supplies need to be examined toThose not prohibited or restricted but that

substances

find existence / non-existence of

require monitoring.

applicable substances.

Managing use in plants
Our factories are making efforts to reduce emissions of PRTR substances.
In Eco Vision 2015, we aimed to reduce emissions by 80% compared to fiscal 2007. However,
due to changes in our business and other causes, the corresponding reduction was 34%.
Looking ahead, we will consider reductions in amounts used along with proposals for
substitutes, and will work to reduce emissions of the substances.

Emission Volume of PRTR Substances(non-consolidated)

Emission Volumes of PRTR Substances (group)

PRTR data for Each Business Site

NGK SPARK PLUG GroupCSR Report 2016

106

CSR > For Environmental Protection > Hazardous Chemical Substances

Procurement from Suppliers
To manage chemical substances contained in products appropriately, it is imperative that we
gain the cooperation of our suppliers. For this reason, we request in our Green Procurement
Guidelines that our suppliers not use hazardous chemical substances banned by NGK SPARKPLUG CO., LTD. We designate suppliers that meet our system and material standards as Green
Suppliers, and appropriately manage hazardous chemical substances.
Green Procurement Guidelines

NGK SPARK PLUG GroupCSR Report 2016

107

CSR > For Environmental Protection > Global Warming

Global Warming
Basic Philosophy
Major climate change could hinder the establishment of a sustainable society. In order to aid in
mitigating climate change, we set targets for CO2 emission reductions and pursued measures
under Eco Vision 2015.
From fiscal 2016, we will make contributions toward mitigating climate change from along-term perspective under Eco Vision 2020.

Meeting Our Target for Reducing CO2 Emissions
In fiscal 2015, our CO2 emissions was
158,800 tons, meeting our fiscal 2015 targetof 188,000 tons and also lower than in fiscal
2014. In addition, intensity of emissions
improved by 20% compared with fiscal
2007.
The target was attained through updating offacilities(forenergyefficiency)

achievinganenergy-savings

effectandbyrevising our manufacturing conditions.

Transition of Emission Volume of Energy-Origin CO2(Offices and Plants)

Trend in CO2 Emissions

NGK SPARK PLUG Group CSR Report 2016

108

CSR > For Environmental Protection > Global Warming

Energy Conservation during Transportation
As a Specified Consigner designated under the
Act on the Rational Use of Energy, we
endeavor to reduce CO2 emissions duringtransportation. In fiscal 2015, our energy use
intensity was 0.359 kL/100 million yen, whichfell below the target of 0.408 kL/100 million
yen.
This

is

attributabletomeasuresbytransportation departments, such as reducing
packaging weight through changes to theform of packaging, switching to more local
waste

disposaltransport

firms,

distancesandshortening

throughplant

Transition of CO2 Emissions as Consigner

reorganization and consolidation.

Energy Conservation in Office
We implement daily energy-saving measures in our workplaces, including turning off lights andcomputers during breaks and keeping office air conditioning at moderate levels, 28ºC insummer and 20ºC in winter, to which we adjust by dressing lightly or adding layers of clothing.
We are also creating green curtains, installing arched sunshades and thermally insulating theoutdoor units of air conditioners to reduce power consumption for air conditioning in thesummer.
In fiscal 2015, too, we worked to consolidate PC servers, upgrade air conditioners, and convert
fluorescent lighting to LED lighting.

Use of Natural Energy
We promote the use of natural energy.
We installed three solar power generation units and one solar water heater at our Headquarters
Factory. The Komaki Plant has a large-scale solar power generator unit that can generate amaximum of 107 kW of electricity, and small hydro-electric power equipment. In fiscal 2015,
we generated a total of 190,000 kWh, equivalent to a reduction of 64 tons of CO2.

NGK SPARK PLUG Group CSR Report 2016

109

CSR > For Environmental Protection > Depletion of Resources

Depletion of Resources
Basic Philosophy
Our Group contributes to society by lowering defect rates in our manufacturing processes,
reducing waste generated and treating wastes to enable recycling, as measures to combat the
depletion of resources.
And we contributes to the resolution of water resource issues by recognizing the tap water andwell water used in our business activities as water resources, and by undertaking the reductionof usage, as measures to combat the depletion of resources.

Reduction of Waste Generated
In fiscal 2015, the waste intensity was 0.040
tons / million yen. By reducing the amount ofceramic

sludgeproducedinourmanufacturing

process

andincreasing

manufacturing

processyield,

we

havelowered the waste intensity 59% comparedwith the fiscal 2007 level.
Volumes of Waste Generated
at Each Business Site
Trends in Volume of Waste Generated

Reducing the Amounts of Tap
and Well Water Used
In fiscal 2015, our water use intensity was
4.67 m3 / million yen. Water use intensity
improved by 38% compared with fiscal 2007
due

toconserving

water

by

changing

manufacturing conditions and upgrading andupdating

toequipment

with

a

high

water-savings effect.

Trends in Volume of Tap Water / Well Water UsedNGK SPARK PLUG Group CSR Report 2016110

CSR > For Environmental Protection > Environmental Communication

Environmental Communication
Basic Philosophy
For The NGK SPARK PLUG's 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, and we areendeavoring to disclose information in an accurate and easy-to-understand way to improve
communication.

Hosting plant tours
We accept plant tours for the purpose of observing our environmental efforts and facilities. A
deeper understanding of our Group's activities and better communication are achieved byseeing our facilities firsthand and engaging in question and answer sessions. In fiscal 2015, we
hosted nine tours and welcomed 1,296 visitors at our plants.

Environmental Meeting
We host environmental meetings with local residents as a venue for communication. At thesemeetings, we explain our daily environmental activities as well as hear opinions and commentsfrom participants on how we can improve things. In fiscal 2015, we hosted 10 such meetings,
with a total of 24 participants.

NGK SPARK PLUG Group CSR Report 2016

111

CSR > For Environmental Protection > Environmental Communication

Local Clean-up Activities
We regularly hold clean-up activities to preserve the local environment. We also continue toparticipate in beautifying activities hosted by local municipalities, etc. In fiscal 2015, a total of
930 people participated in such activities.

Miyanojo Plant Clean-up activity

CERAMIC SENSOR CO., LTD.
Clean-up activity

Participation in clean-up activities by each business site

Conservation of Biodiversity
The preservation of biodiversity is becoming increasingly important around the world. For the
NGK SPARK PLUG's GROUP as well, it is one of our environmental themes as important as therecycling of resources and global warming control.
In April 2013, we established the NGK SPARK PLUG Group Biodiversity Action Guidelines whichindicate our policy and action plan regarding biodiversity.
Based on the guidelines, and with the recognition that activities such as the use of energy andresources have an effect on biodiversity, we will work in cooperation with business partners andexternal organizations to reduce the impacts of all of our business activities.

NGK SPARK PLUG Group CSR Report 2016112

CSR > For Environmental Protection > Environmental Communication

Establishing System for Environmental Commendations
We have launched a system of environmental commendations for the NGK SPARK PLUG's
GROUP in Japan to commend outstanding environmental initiatives with the aim of encouraging
environmental activities.
Outstanding examples are commended by the President during meetings of the Central
Environmental Committee.
In fiscal 2015, which was the second year of the system, the 12 examples below received
commendations.
Division

Department

Manufacturing

Cutting Tool Division, Machinery

Reviewand Tools Department

conservation)

1st section of the Manufacturing

Reduction of heating and lighting expenses

Dept. in iProjectthrough

Manufacturing

Detailsofcoating

conditions

combineduseof(energycombustion

furnaces (energy conservation)
Manufacturing
Manufacturing
Manufacturing
Manufacturing

1st Ceramics Section, Spark Plug

Miniaturization of trommel stones (energy

Komaki Manufacturing Divisionconservation)

2nd Ceramics Section, Spark PlugInstallation

Komaki Manufacturing Division

products from flying out (waste reduction)

2nd section of the Manufacturing

Element

Dept. in iProject

conservation)

3rd Section, Sensor Production

VisualizationofEngineering Dept.

management(strengtheningofcylinderrationalization

toprevent

activities

hazardous

long(energymaterials

of

legal

stoppagerisk

compliance)
Manufacturing

SparkTec TONO CO., LTD.

Reductionofequipment

1st Section, Tono Manufacturing

through FMEA technique inspections

Department
Technological

Glow Plug Department

Abolishment of finishing process throughdevelopment

Metal Design Section

improvement activities (energy conservation)

Management

NTK CERAMIC CO., LTD.

Enhancement of environmental awareness

Environmental ISO Bureau

through ECO meetings

Sensor Department

Improvement of CO2 emissions (per unit

Management

production) for 5 consecutive years
Quality

SparkTec TONO CO., LTD.

Shortening of operating hours for analyticalcontrol

Quality Control Section

equipment (energy conservation)

Nino Quality Control Unit
Sales

New

Product

MarketingExhibit at Eco-Products 2015

Department

NGK SPARK PLUG Group CSR Report 2016113

CSR > For Environmental Protection > Environmental Communication

Comment by award-winning division

We hope to communicate our environmentally friendly products
outside the company and create new business!
In December 2015, we exhibited for the first time at Eco-Products under the theme "Nittoku
Future Products." Amid communication with environmentally aware exhibition visitors, wefound business opportunities in meetings with new customers. I believe we were able tocommunicate the depth of our environmental awareness to a variety of visitors, which
included the Governor of Aichi Prefecture and students engaged in job hunting. While thiswas our first time to participate in the exhibit, on behalf of the marketing department I cansay that we were pleased to disseminate information across the wide fields of theenvironmental exhibition and turn the event into a venue for new business interactions.
I hope to continue publicizing our company's excellent products, capturing customers' needs
and connecting these to business.

New Product Marketing
Department
Muramatsu(photo, center)
Booth at Eco-Products

NGK SPARK PLUG Group CSR Report 2016

114

CSR > Third-Party Review

Third-Party Review
We have edited CSR Report 2016 to serve as an easily understood and trustworthy report, on
the basis of information disclosure policies. So that we may hear objective opinions with the aimof creating a better report, we requested a third-party review from Mr. Tomohiro Tokura of SGS
Japan Inc.

Third-Party Review of CSR Report 2016
CSR Report 2016 reports on the establishment of astructure with three outside directors as a way tostrengthen governance. In interviews, I was told about
the aims of the organization in constructing thisstructure, and how the competencies of the outside
directors are well matched. The reasons for theselection of each are reported on the website as well,within the Corporate Governance Report. In addition,
while not mentioned in the report, the Vice Chairman's
inclusion in the Board of Directors as the Representative

Mr. Tomohiro Tokura
Verification Specialist
Sustainability Service Division
SGS Japan Inc.

Director, while remaining separate from corporate
officers, can be considered as a strengthening of governance. These initiatives can be viewed
as a strengthening of structures for the assurance of organizational transparency and thecontinuation of sound management, and also as leading to the earning of stakeholder trust,through the construction of solid governance to which the Message from the President is also
committed.
With regard to initiatives aimed at preventing the recurrence of violations of anti-trust law
overseas, which were discussed in last year's report, CSR Report 2016 notes that seminars onawareness of competition law and audits of overseas subsidiaries have been conducted. The
Message from the President emphasizes that the awareness of each and every employee isimportant, and reports on the continuing implementation of training to strengthen
compliance.
The greeting campaign, considered a basic of communication, is being conducted this year as
well. Communication with all stakeholders is required for social responsibility, and beneficial

NGK SPARK PLUG GroupCSR Report 2016115

CSR > Third-Party Review

mutual relationships also lead to compliance. I believe they are also a fundamental forstrengthening the organization. I hope that the company will continue the greeting campaign
as well as the creation of an open and positive corporate culture.
The report notes that the company also provides support for the construction ofenvironmental management systems (EMSs) by suppliers. In addition to these, the company
conducts support activities such as holding seminars on occupational health and safety
management and quality control techniques, and demonstrates an attitude that places
importance on mutually beneficial relationships with suppliers. I believe that these activities
lead to improvements in quality, and, like the greeting campaign, lead to the strengthening ofgovernance and compliance through the construction of beneficial relationships. I hope to see
these, too, carried out on a continuing basis.
The reporting on environmental aspects is very thorough every year. I find that its content,
which includes information in figures and graphs, targets and results, and past backgroundinformation, facilitates understanding the state of changes in the organization and making
comparisons. At the same time, the report contains little detailed data or information on
initiatives concerning issues other than the environment, an area lacking in ease ofunderstanding for stakeholders. The competencies of outside directors, which I mentioned
earlier as an example, is expressed in abstract terms in the report; accordingly, I had to findadditional information on the website. I understand that the report is limited in space andfurther risks losing focus if it offers too much information, and that these considerations
influence the existing content. However, the completeness of information other than thatconcerning the environment, such as the provision of links to related information on thewebsite, remains as an issue.
In recent years, many items contained in questionnaires, such as the Carbon Disclosure
Project (CDP) and Dow Jones Sustainability Indices (DJSI), request verification ofenvironmental data. This means that many investors are seeking third-party verification of
the accuracy of report data. Given the strengthening of such demands toward globally active
corporations like NGK SPARK PLUG Group, especially from investors, I hope to see data
communicated after undergoing third-party verification in the future.
* This comment renders no judgment on whether the data presented in the report isaccurately measured and calculated and is free from omissions, in accordance with standards
for the preparation of environmental and other reports generally deemed to be fair andreasonable.

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CSR > Third-Party Review

On Receiving the Third-Party Review
I would like to express my gratitude to Mr. Tokura for his valuable advice concerning our CSR
Report 2016. We have requested the opinion of Mr. Tokura for four consecutive years now, andfeel weight in his comments that draw on observation of changes in our company over thattime.
Again this year, we have compiled our CSR Report with the desire to show our company without
embellishment to all of the varied stakeholders who hold expectations for us.
The demands placed on companies by society are growing year by year, including demands forcorporate governance. I believe we must avoid an attitude that sees the creation of
mechanisms and structures as the finish, and must rather display a stance accompanied byeffectiveness.
I ask for frank comments on whether we have succeeded with this report in communicating
information that meets stakeholders' expectations.
This year, 2016, marks the 80th year since our founding. We will strive to continue as acompany that earns people's trust even further into the future, through CSR activities
conducted in line with your comments and expectations.
Masaya Futamura
General Manager, Risk Management Department, Corporate Strategy GroupNGK SPARK PLUG CO., LTD.

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Detailed Information about CSR

Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge

Field of Activities: Management
Company-wide CSR Management

Implement PDCA
cycle to promote CSR
on a global basis

Promote a CSR PDCA
cycle on a global basis• Implementation of the
PDCA cycle to promote CSR
at domestic and overseas
group companies• Review of CSR policy

We conducted elementary
CSR training for 1,651
persons.

Promote CSR
awareness-raising
activities on a global
basis• Ongoing implementation of Risk
Management
CSR education (target
Dept.
number of course-takers:
2,000 people)• Promotion of workplace
education through a digest
version of the CSR Report• We revised our compliancepolicy and establishedgroup compliance rules.
• In group companies
overseas, we establishedrules that take into accountthe risks peculiar to eachcountry, and constructedcompliance promotion
systems.

Construct a global
promotion system• Preparation of rules(promotion system) forgroup companies• Initiatives regarding
high-risk projects, including
the prevention of bribery of
foreign public officials

Compliance
Committee

Continue education on
helpline content

Continue education throughseminars and the Compliance
Newsletter, and awarenessraising through posters

Compliance
Committee• Expand the number ofpeople to participate in theseminars• Continue to issue theCompliance Newsletter

Compliance
Committee

Review the CSR
Committee’s functions
and operation method(ongoing)

Starting with the CSR
Committee meeting heldin April, we madeimprovements to functions
and management methods.

Implement PDCA
cycle to promote CSR
at group companies inJapan

We confirmed end-of-term
results for each company
and consolidated objectives
for the 117th term.

RiskManagement
Dept.

Implement PDCA cycle We confirmed intermediate
to promote CSR at
progress in each company.
overseas subsidiaries
Promote CSR
awareness-raising
activities on a global
basis

Strengthen CSR
awareness-raising
activities in domestic
group companies

Compliance• Company-wide Promotion System

Develop a compliancepromotion system andensure an appropriate
response to violations,on a global basis.

Enhance thecompliancepromotion system atgroup companies inJapan, and identify
risks at overseas
subsidiaries

Implement activities
for violation prevention

Enhance awarenessand knowledge aboutcompliance• We held complianceseminars 29 times, with
916 attendees.
• We issued the Compliance
Newsletter 15 times.

Continue complianceawareness andknowledge training

Understand the actual
situation throughawareness surveys etc.
conducted on a regularbasis

Conduct surveys andprovide feedback on
workplace risks andchanges inorganizational culture

Continue conducting
questionnaires and provide
feedback on workplace risk
and changing workplaceculture.

Continue monitoring of Conduct compliancequestionnaires
compliance awarenessand knowledge andcorporate culture change

Continuously improve
operations at NGKSPARK PLUG andexpand improvements
to subsidiaries

We created e-learning
content related toconfidentiality management,
but have not expanded it tosubsidiaries.

Deploy educational tools
to NGK SPARK PLUG andgroup companies inJapan and monitor
implementation status
and effectiveness

Expand companywide
confidentiality
management togroup companies inJapan

We clarified confidentiality
management organizations
within group companies inJapan, and checked their
documentation of rules andtheir operational status.

• Group companies in Japan:
Confidentiality
Continuously improvesecurity control, including Continuous implementation of Management
Committee
periodic inspections, andgroup companies, andtracking of individual companies
establish system forin accordance with situation
surveillance of• Overseas group companies:
implementation status
Checking of status andproblem areas in eachcompany, in light of group rules

Compliance
Committee• Security Control

Continuously improve
the PDCA cycle forsecurity control and its
global expansion

Expand and operate
e-learning content related toconfidentiality management
at NGK SPARK PLUG

Confidentiality
Management
Committee• Export Control

Strengthen professional
education on export
controls and reinforce
the export control
surveillance system

Prevent export control • We provided employeesrisksposted overseas withinformation on export
controls at posts.
• We did not complete
checking of the status ofexports from overseas
subsidiaries.

NGK SPARK PLUG Group CSR Report 2016

Establish a system forsurveillance of
implementation statusof appropriate export
controls, includinggroup companies• Checking of status ofexports from overseas
subsidiaries and assessmentof risks• Support for export control
at subsidiaries in Japan(education, etc.)

Export Control
Committee

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Detailed Information about CSR

Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge• Information Security

Establish network
security standards on a
global basis• We conducted aquestionnaire fordomestic and overseas
group companies toassess security level.
• We changed the method
for storing backup data.

Continuously reduce
security risk of groupcompanies throughdeployment of Group
Information Security
Regulations

Formulate a plan to improve
the security level of groupcompanies

Information
Systems Dept.

We continuously
implemented mechanisms
to carry out patent review
activities concerning coreproducts prior to design
review committee meetings.

Implement patent
review activities formainstay products prior
to design review
meeting, includinggroup companies• Continuous implementationof patent reviews• Identification of noteworthy
patents, and drafting andmanagement ofcounterproposals

Intellectual
Property Dept.

Establish a system for • We held Intellectual Property
each division’s
Steering Conference
intellectual property
meetings and Intellectual
activities and promote Property Committee
anti-counterfeiting
meetings, and worked tomeasuresshare information oncompanywide intellectual
property activities.
• We exposed counterfeit
products in China, ASEAN,
and the Middle East, andimplemented customs
injunctions against these.
We also collected
information related to theMiddle East and ASEAN.

Establish new methods
to deal with increasingly
sophisticatedcounterfeiters,
particularly in emerging
countries

Implement counterfeit
product countermeasures inemerging countries not yet
addressedIntellectual
Property Dept.

Continue activities toform a patent cluster
using a patentportfolio

Have at least 15% of
submitted patents bedifferentiation patents
utilizing a patentportfolio that adds rivals’
information

Establish and executemechanisms aimed atcreating a patent portfolio
using information on othercompanies

Intellectual
Property Dept.

Involve trademark
aspects instrengthening ourbrand organization

Involve and assist relatedcompanies that have been
newly added to our Group withtrademark aspects in building
the brand organization

Intellectual
Property Dept.

Enhance intellectual
property education,
including groupcompanies

Training being conducted at
NTK CERATEC CO., LTD.

Intellectual
Property Dept.

Continually preventthe risk of information
leakage• Respect for and Protection of Intellectual Property Rights

Establish security
control andcompliance systems
regarding intellectual
property

Enhance and expand
other activities toobserve intellectual
property rights ofother companies

We determined items to be
added as information onother companies and draftedmechanisms for reflecting
these, but have not moved
to implementation.

Risk Management• BCP/BCM

Recheck and improve
our BCP and shift to
BCM• We conducted theHold effective
companywide disaster company-wide disasterprevention training
prevention training on
and BCP that can be
November 4 and BCP
used in an emergency
training on December 7.
• We implemented a systemfor confirming personnel
safety in 6 groupcompanies in Japan.

• Expand business
Improvement of the crisis
continuity management response processsystem to groupcompanies in Japan• Construct amanagement systemthat can respond to
not only earthquakes
but also other disasters

Establish our BCP for
procurement on a
global basis

Continue to implement
measures for our BCP
for procurement androll these out at groupcompanies

We are pursuing
procurement BCP initiatives,
but expansion to somegroup companies is delayed.

Construct a
procurement BCP
framework and expand
and operate it at groupcompanies

Implement IT-BCP
measures

Enhance systempreservation in theevent of an
emergency

We prepared emergency-use
PCs and solar batteries, andconfirmed UPS operationand virtual server restoration
procedures.

IT-BCP countermeasures Construct a cloud environment
for server infrastructure inside the company(cloud utilization)

NGK SPARK PLUG Group CSR Report 2016

BCM Working
Group• Creation and operation of
Procurement
NGK SPARK PLUG mechanisms Div.
for procurement BCP• Expansion to plannedgroup companies
Information
Systems Dept.

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Detailed Information about CSR

Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge• Company-wide Risk Management

Establish enterprise risk
management that issuitable for ourcompany

We established group risk
management rules.

• Establishment of risk
Risk
Build company-wide
Management
risk management suited management rules• Establishment of risk
Working Groupto NGK SPARK PLUG
management rules in groupcompanies• Completion of a global crisis
management manual

Reduce quality
problems throughhorizontal
deployment of
measures to prevent
recurrence andprevention of issues
before they arise(create new systems,
mechanisms, climate
and culture).

We completed forms thatuse graphs and comments
to visualize the risks specificto each business and theresults of evaluating
remaining risks.

Expand quality
assurance to all groupcompanies with a focus
on goods for all
customers

Quality
Committee,
Corporate
Quality
Management
Div.

Promote activities toenhancecomprehensive
quality capabilities(quality evolution –enhancement of total
operational quality)

We expanded SDCA to 13
locations at 4 plants inJapan, and to 8 groupcompanies in Japan.

• Readying and establishmentof companywide QMS• Practice of root cause
identification for customer
complaints, andenhancement of recurrence
prevention• Improvement of the level ofmeasurement managementin the NGK SPARK PLUG
Group
• Improvement of equipment
assurance precision from ameasurement point of view
• Establishment of a global
procurement system forgaugesPromote increase incompanywide
awareness of qualityand development of
human resources andstrengthening oforganizational
capabilities through
NQC Circle activities• We implemented
top-management quality
patrols at 6 locations
domestically and 5
locations overseas.
• We conducted training
sessions 18 times,
producing humanresources through theCommittee for NQC
Activities.

Expand quality
management to allgroup companies
aimed at deliveringvalue to all customers• Establishment andentrenchment of integrated
standards for production
management innovation• Improvement of skill levels
through the use of quality
technologies in creatingproducts• Expanded deployment of
workplace and ongoingsmall-group activities, andestablishment of a humanresource development
platform

Quality
Committee,
Corporate
Quality
Management
Div.

Build and operate acompany-wide risk
management systemfor business risk

Field of Activities: With Our Customers
Safety and Quality

Continuously improve
our products, work andmechanisms across thecompany in order tostrengthen our
manufacturing
capabilities

Field of Activities: With Our Shareholders and Investors
Information Disclosure

Maintain and improve
internal control overfinancial reporting

Visit each company foraudits of internal
control related tofinancial reporting

We visited each company
for audits of internal control
related to financial
reporting.

Disseminate
information that leads
to increased
shareholder trust

Enhance and expand
communication withstakeholders

Public Relations
Dept.

Disseminate
information in aneasy-to-understandand friendly manner ona global basis

Disseminate
information that isfamiliar and easy tounderstand to forbroadening
understanding about
the company in Japanand abroad• We issued a global versionof our company
newsletter.
• We released CSR Report2015 as a booklet and on
our website.

Disseminate
information in aneasy-to-understand andapproachable manner
on a global level

Enhance the CSR report andwebsiteRiskManagement
Dept.

Construct a framework
for an IR strategy aimed
at institutional investors

Enhance the provision ofanalytical data related toaccount settlement anddisclosure

Accounting &Finance Dept.

Disseminate
information that
captures stakeholders’expectations and thechanges in social trends

Disseminate information that
captures stakeholders’expectations and thechanges in social trends

RiskManagement
Dept.

Disseminate
information that
captures stakeholders’expectations and thechanges in social
trendsNGK SPARK PLUG Group CSR Report 2016

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Detailed Information about CSR

Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge

Field of Activities: With Our Employees
Employment and Human Rights

Establish personnel
and education systems
to realize ourmanagement
strategies and policies

Solidify the newhuman resources
system and prepare toroll out the system atcompanies in Japan• We deployed and partiallyrevised a new personnel
system.
• We implemented theabove in 2 groupcompanies in Japan.
• We made preparations at
2 companies scheduled
for implementation in
April 2016.

Implement fairevaluations that
correspond to clear
expectations

Human
Promotion of personnel
Resources Dept.
system reform• Entrenchment of system incompanies where it has
been introduced• Preparation for expansion ofsystem into groupcompanies in Japan• Assessment of conditions incompanies where the new
system has not been
introduced

Establish a humanresource development
system byoccupational ability• We created plans forRoll out the educationand training plan
individual evaluations,program (ETP) to theeducation, and training. The
divisions and implement majority of departments
training planned on thehave begun education.
basis of the new human • We conducted all planned
resources systemtraining.

Establish educational
programs that target
the leaders of eachgroup company

Begin formulating surveys
and policies for professional
development systems andtraining programs

Human
Resources Dept.

Establish personnel
recruitment
management

Strengthen personnel We were able to hire therecruitment capabilities personnel we sought.

Employ diverse humanresources strategicallyPlan mechanisms for hiring
diverse human resources

Human
Resources Dept.

Promote personnel
appointment on a
global basis

Promote globalization• We published the HR
Report four times a year.
• We held a global
personnel conference.

Achieve personnel and Survey personnel systems inmajor overseas group
human resource
functions that contribute companies
to the promotion ofmanagement strategy

Human
Resources Dept.

Promote diversity

Promote diversity(empowerment offemale workers)• We commended 17
departments withoutstanding initiatives,and introduced thesecompanywide.
• We revised operation of
our short work day
program, made medical
leave more flexible, andintroduced special leave
for infertility treatment.
• We held next-generation
leader developmenttraining, lecture meetings
for senior managerial
positions, and networking
events for women.

Further encourage thepromotion of active
participation by women• Identify and work to resolve
issues in all departments• Continue to hold lecture
meetings for senior managerial
positions and networking
events for women

Human
Resources Dept.

Zero workers leaving
their jobs in order toprovide nursing care

Review of nursing careprogram

Human
Resources Dept.

Achieve the mandatory Consider establishment of anumber for employment special subsidiary companyof people with disabilities

Human
Resources Dept.

Promote active
participation by seniors

Adoption of a target
management program forpersons under continued
employment

Human
Resources Dept.

Develop systems thatmake it difficult for
accidents to occur
aimed at developing a
global safety culture• Elimination of work-related
accidents• Improvement of work
environments• Promotion of healthimprovement• Enhancement of education,
training, and awareness

Safety and
HealthCommittee,
Environment
and Safety
Management
Dept.

• Promotion of support forvoluntary safety and healthmanagement activities bydepartments and businesssites• Sharing of information on
activities in domestic andoverseas plants

Safety and
HealthCommittee,
Environment
and Safety
Management
Dept.

Occupational Safety and Health

Promote and entrench
our new risk
assessment system

Expand and solidify
new risk assessments

We carried out new
activities to communicate
and raise awareness of risk
assessment.

Educate employees tobe able to behavesafely and establish a
corporate culture of“safety first” on a global
basis

Maintain and improve
work environments(safety and health) in
workplaces• We improved 6 workplaces
based on the results ofwork environment
measurement.
• We expanded our
campaign to prevent
accidents from falls.

Educate employees tobe well-versed insafety, and establish an
educational frameworkand system

Enhance education,
training and drills on
occupational safety
and healthmanagement.

• We conducted activities toentrench on-the-spot risk
prediction.
• We held occupational safety
and health and environment
meetings at 4 plants, andworked to improve
occupational safety andhealth awareness.

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Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge

Occupational Safety and Health

Develop a framework
for minimizing healthrisks, and achieving abetter awareness ofthese risks, andestablish an
appropriate system

Promote self-checks
and check employees
in the workplacerequiring follow-up
after exams• We conducted healthguidance and, at eachplant, held occupational
health lectures and healthpromotion fairs.
• We held a mental healthworkshop for eachdepartment at the
Komaki Plant.

Raise productivity bydecreasing the rate of
onset of mental illness

Operate a stress checking
program

Safety and
HealthCommittee,
Human
Resources Dept.

Field of Activities: With Our Suppliers
CSR Procurement

Implement new criteria
for supplier evaluation

Continue to
implement andimprove regular
evaluations based on
new standards andexpand them tosubsidiaries in Japan• We worked to continually
improve mechanisms forperiodic evaluation.
• We established working
groups in groupcompanies in Japan.

Improve the framework
for evaluation aimed at
global optimum
procurement anddeploy and operate atgroup companies• Improvement of evaluation
at NGK SPARK PLUG
• Expansion to plannedGroup companies

Procurement
Div.

Implement CSR
procurement on a
global basis

Consolidate CSR in
procurement andawareness-raising
activities• We requested cooperation
with CSR procurement at
corporate policy
conferences.
• We partially revised the
CSR self-checklist, received
responses from suppliercompanies and got agrasp of overall trends.
• We held CSR seminars forover 30 suppliercompanies.

Reduce risk in the
supply chain bythoroughly establishing
CSR procurement• Communication at corporate
policy conferences• Analysis of risk; ideas andproposals aimed at its
reduction• Trial launch of proposed
ideas aimed at suppliers

Procurement
Div., Risk
Management
Dept.

Promote education andenlightenment aimed at
reducing risk utilizing
supplier seminars, etc.

Improvement of supplierseminar content andexpansion of targeted
suppliers

Procurement
Div., Risk
Management
Dept.

Continually enhance
the social status of the
NGK SPARK PLUG Groupthrough social
contribution activities

Consider sustained social
contribution activities that
only NGK SPARK PLUG can
perform

Public Relations
Dept.

Field of Activities: With Local Communities and International Society
Social Contribution

Enhance social
contribution activities

Actively participate insocial contribution
activities

We collected and analyzed
information on social
contribution activities
implemented by domestic
and overseas groupcompanies.

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Detailed Information about CSR

Targets and Results of CSR Promotion Activities
Evaluation standards

Mid-term Targets(by fiscal 2015)

Fiscal 2015
Targets: Achieved the target

Fiscal 2015 Results: Achieved more than 80% of the target

Evaluation

Mid-term Targets(by fiscal 2020): Achieved less than 80% of the target

Fiscal 2016 Targets

Department
in Charge

Field of Activities: For Environmental Protection
Environment

Achieve Eco Vision2015 and globalize
environmental
management

Global warming• CO2 in production: Reduce
emissions per unit ofproduction by 1% fromfiscal 2015
• CO2 in physical distribution:
Promote efficient
distribution

Environmental
Committee,
Environment &SafetyManagement
Dept.

We clarified the capabilities
of internal auditors anddecided on a certification
process.

Depletion of resources• Waste: Improve per unit
emissions from fiscal 2015
• Water: Improve per unit
usage from fiscal 2015

Environmental
Committee,
Environment &SafetyManagement
Dept.

Create a chemical
substance
management systemthat includes the
supply chain• We began a survey ofsuppliers using the JAMA
sheet.
• We incorporated andmanaged data obtained
from suppliers in our
Chemical substanceManagement System.

Hazardous chemical
substances• Promote substitution ofsubstances of environmental
concern ahead of regulations,and formulate a substitution
plan for HCFC targeted
equipment

Environmental
Committee,
Environment &SafetyManagement
Dept.

Reinforce biodiversity
preservation activities

We participated in
Miyariver Watershed
Renaissance activities andsurveyed the river’s water
quality every month.

Environmentally-friendly
products• Strengthen development
and design activities that
contribute to saving energy

Environmental
Committee,
Environment &SafetyManagement
Dept.

Roll out LCA
companywide• We created an evaluation
sheet forenvironmentally-friendly
products.
• We did not proceed to theestablishment ofevaluation methods forquantitativeenvironmental load
during product usage.

Promotion of the integrationof business activities andenvironmental activities

Environmental
Committee,
Environment &SafetyManagement
Dept.

Formulate Global Eco
Vision

We formulated Global Eco
Vision 2020.

Promote activities toreduce environmental
burdenWe promoted activities toreduce CO2 emissions,waste emissions, water
usage, and CO2 emissions
due to physical distribution,
and achieved all targets.

Prepare training andeducation for internal
auditors to support
the 2015 ISO revisions

NGK SPARK PLUG Group CSR Report 2016

Promote environmental
activities aimed atachieving global Eco
Vision123

Detailed Information about Environment

The Establishment Status of our Environmental Management System
ISO 14001 Certified Locations

Certification covering multiple units (Scope of applicability)
Country

Name of factories and companies

Certified initially in:

Headquarters and Nagoya Plant’99. 8

Komaki Plant, Miyanojo Plant, Ise Plant’00. 12

Takenami Plant’07. 1

Inuyama Logistics Center’99. 8

Certification organization

NGK SPARK PLUG CO., LTD.

Nittoku Alfa Service Co., Ltd.

’99. 8

Nittoku Unyu Co., Ltd.

’00. 12’00. 12

Ceramic Sensor Co., Ltd.
Japan

Komaki Plant’00. 12

Nakatsugawa Plant, Iijima Plant, Kani Plant’02. 12JQANTK Ceramic Co., Ltd.
Nansei Ceramic Co., Ltd.

’02. 12

Kamioka Ceramic Co., Ltd.

’04. 1
Head Office Plant, Oguchi Plant’04. 1

Satsuma Plant’09. 12SparkTec WKS CO., LTD.
’04. 1

Nichiwa Kiki Co., Ltd.
Tono Plant’04. 1

Nino Headquarters Plant’15. 12SparkTec Tono Co., Ltd.

Certification obtained individually
Country

Name of factories and companies

Certified initially in:

Certification organization’04. 10J-VAC’00. 7TUVJapan

NTK CERATEC CO., LTD.

U.S.A.

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

MexicoBujias NGK de Mexico S.A. de C.V.

’12. 11FS

BrazilCeramica e Velas de Ignicao NGK do Brazil Ltda.

’01. 12

ABS QEFranceNGK Spark Plugs (France) S.A.S’00. 5AFAQU.K.

NGK Spark Plugs (U.K.) Ltd.

’01. 12

BSI

Germany

NGK Spark Plug Europe GmbH’04. 11

TUV

Siam NGK Spark Plug Co., Ltd.

’02. 11TUV NORDNGK Spark Plugs (Thailand) Co., Ltd.

’12. 10SGS

Woo Jin Industry Co., Ltd.

’05. 4KFQ

NTK Technical Ceramics Korea Co., Ltd.

’06. 4ISC

NGK Spark Plugs Malaysia Berhad’06. 3

SIRIM QASNGK Spark Plug (Shanghai) Co., Ltd.

’07. 4

SGS

Changshu NGK Spark Plug Co., Ltd.

’14. 3

SGS

Indonesia

P.T. NGK Busi Indonesia’07. 10

Bureau Veritas

India

NGK Spark Plugs (India) Pvt. Ltd.

’10. 12ASR

South Africa

NGK Spark Plugs SA (Pty) Ltd.

’08. 4

Bureau Veritas

WV Plant

ThailandSouth Korea
Malaysia
China

NGK SPARK PLUG Group CSR Report 2016124

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

We perform regular measurements of air and water quality, noise, and vibration, and engage in management of these for the purpose of complying with laws and regulations.
Name offactories andcompanies

Regulation value
Item

Type

Soot and
dust
Air
NOx

Boiler (No. 10)
Boiler (No. 11)
Boiler (No. 12)
Firing furnace (PR-2)
Boiler (No. 10)
Boiler (No. 11)
Boiler (No. 12)
Firing furnace (PR-2)

pH
SS
BOD
n-hexane extract
Cyanogen
Headquarters/
Headquarters
Total chromium
Drain
Plant
Hexavalent chromium(sewer)Zinc
Lead
NitrogenPhosphorus
Fluorine
Boron
Morning
F spotDaytimeF spotNoise
Evening
F spotNight
F spotDaytimeF spotVibrationNight
F spotBoiler (No.1-6)
Soot and
dust
Firing furnace (No.9-15)
Boiler (No.1-6)
Air
NOx
Firing furnace (No.9-13)
Boiler (No.1-6)
SOx
Firing furnace (No.9-15)
East
pH
West
North
East
SS
West
North
East
BOD
West
North
East
COD
West
North
COD (total volume) Komaki Plant
Komaki Plant
Eastn-hexaneWestextract
Drain
North(public water area)
East
Cyanogen
West
North
East
Total
West
chromiumNorth
East
Copper
West
North
East
Zinc
West
North
East
Lead
West
North

Unit

mg/Nm3

Law/Local
Agreement
regulation with the city etc.
50

−

−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l

dB

mg/Nm3
ppm
Nm3/h

−

150
180
5.0 〜 9.0
600
600
30
1
2
0.5
2
0.1
120
16
8
10
60.0
65.0
60.0
50.0
65.0
60.0
100
200
150
200
5.889
5.889

40
120

150

ppm

Voluntarystandard
value

−

−
−
−
−
−
−
−
−
−
−
−
−
−

−

100
200
−
−

120
144
5.2 〜 8.8
480
480
24
0.8
1.6
0.4
1.6
0.08
96
12.8
6.4
8
58.0
63.0
58.0
49.0
60.0
55.0
80
160
120
160
4.711
4.711

6.0 〜 8.0

6.0 〜 8.0

6.2 〜 7.8

mg/l

30

−

24

mg/l

25

−

20

mg/l

−

−

−

kg/day

93.76

−

−

mg/l

5.0

5.0

4.0

mg/l

0.5

0.5

0.4

mg/l

2.0

1.0

0.8

mg/l

1.0

1.0

0.8

mg/l

1.8

1.8

1.6

mg/l

0.1

−

0.08

Average

Max

−
4
−
2.0
−
51.0
−
46.0
7.21
13.75
10.44
0.98
0.16
0.05
<0.04
0.43
<0.02
22.25
0.36
0.24
1.00
59.9
70.31
59.2
49.5
41
46
<3
13
24
82
<0.00216.5
7.4
7.2
Not discharged
1.9
2.0
Not discharged
2.8
1.3
Not discharged
3.7
2.7
Not discharged
6.4
0.50
<0.5
Not discharged
<0.1
<0.1
Not discharged
<0.04
<0.04
Not discharged
0.01
0.04
Not discharged
0.10
0.08
Not discharged
<0.02
<0.02
Not discharged

−
4
−
2.0
−
51.0
−
46.0
7.50
32.00
31.00
2.70
0.40
0.08
<0.04
0.97
<0.02
46.00
0.96
0.50
1.00
59.9
70.3
59.2
49.5
41
46
<3
10
24
100
<0.00233
7.5
7.4
Not discharged
4.0
3.0
Not discharged
6.9
2.5
Not discharged
7.0
4.2
Not discharged
17.0
0.5
<0.5
Not discharged
<0.1
<0.1
Not discharged
<0.04
<0.04
Not discharged
0.02
0.08
Not discharged
0.18
0.26
Not discharged
<0.02
<0.02
Not discharged*1 Due to background noise. Background noise is noise occurring when machinery, etc. is not operating, and is aﬀected by traﬃc noise, noise from neighboring plants, etc.

NGK SPARK PLUG Group CSR Report 2016

125

*1
*1
*1
*1

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Drain
(public water area)

Type

−

60

5.23
4.29
Not discharged

8.70
8.60
Not discharged

Nitrogen(total volume)

Komaki Plant

kg/day

81.28

−

−

11.42

23.5

Phosphorus

East
West
North

mg/l

16

−

8.0

0.32
0.55
Not discharged

0.70
2.20
Not discharged

Phosphorus(total volume)

Komaki Plant

kg/day

7.713

−

−

0.64

2.8

mg/l

−

−

−

mg/l

10

−

8

mg/l

8

−

6.4

mg/l

10

−

8

dB

65

−

63

dB

70

−

68

dB

65

−

63

dB

60

−

58

70
65
5.8 〜 8.6
200
160
160
5
120
16
3000
45 〜 50
50 〜 60
45 〜 50
40 〜 50
65
60−−
5.8 〜 8.6
200
160
160
5
120
16
3000
50
55
50
45
55
50

68
63
5.8 〜 8.6
100
130
80
4
120
16
2000
50
55
50
45
−
−

<0.1
<0.1
Not discharged
0.10
<0.1
Not discharged
0.51
0.28
Not discharged
2.0<1
Not discharged
53.6
56.8
50.5
51.6
50.6
47.3
53.4
55.7
54.1
48.0
47.5
38.5
44.4
53.8
47.8
53.5
49.7
52.8
53.3
48.3
55.1
45.2
53.6
49.2
47.3
47.5
48.6
49.7
<45.0
<45.0
7.5
2.0
11.9
4.3
<0.5
3.6
0.08
133.8
41.1
41.3
41.1
40.9
15.0
15.0

<0.1
<0.1
Not discharged
0.10
<0.1
Not discharged
0.7
0.5
Not discharged
2.0<1
Not discharged
53.6
56.8
50.5
51.6
50.6
47.3
53.4
55.7
54.1
48.0
47.5
38.5
44.4
53.8
47.8
53.5
49.7
52.8
53.3
48.3
55.1
45.2
53.6
49.2
47.3
47.5
48.6
49.7
<45.0
<45.0
8.0
3.0
24.0
4.7
<0.5
4.4
0.15
500.0
44.0
44.5
43.5
43.5
15.0
15.0

NickelDaytimeNoise

Evening

Night

Noise

Vibration

Max

120

Morning

Takenami
Plant

Average

mg/l

Boron

Drain
(public water area)

Voluntarystandard
value

East
West
North

Fluorine

Vibration

Agreement
Law/Local
regulation with the city etc.

Nitrogen

Manganese

Komaki Plant

Unit

East
West
North
East
West
North
East
West
North
East
West
North
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
Seventh spot
Fifth spot
Fifth spot

Daytime
Night
pH
SS
BOD
COD
n-hexane extract
NitrogenPhosphorus
Coli bacteria
Morning
Fourth spot
Daytime
Fourth spot
Evening
Fourth spot
Night
Fourth spot
Daytime
Fourth spot
Night
Fourth spot

NGK SPARK PLUG Group CSR Report 2016

dB
dB
−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3
dB
dB
dB
dB
dB
dB

126

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Air

Soot and
dust
NOx

Drain
(public water area)

Miyanojo
Plant

Noise

VibrationAir
Drain(public water area)
Ise Plant

Noise

Vibration

Agreement
Law/Local
regulation with the city etc.

Voluntarystandard
value

300
100
180
150
6.0 〜 8.0
35
20
160
5
1
0.5
3
2
0.1
8
10
3000

6.0 〜 8.0
35
20
−
≦5
−
−
−
−
−
−
−
−

240
80
144
120
6.5 〜 7.8
28
16
128
4
0.8
0.4
2.4
1.4
0.08
6.4
8
2400

dB

60

−

55

dB

65

−

60

dB

60

−

55

dB

50

−

50

dB
dB
mg/Nm3
mg/l
mg/l

60
55
250
160
0.1
55
60
55
50
65
60

Type
Chiller
3T water boiler
Chiller
3T water boiler

pH
SS
BOD
COD
n-hexane extract
CyanogenHexavalent chromium
CopperZinc
Lead
Fluorine
Boron
Coli bacteria
A spotB spotC spotMorning
D spotE spotF spotG spotA spotB spotC spotDaytimeD spotE spotF spotG spotA spotB spotC spotEvening
D spotE spotF spotG spotA spotB spotC spotNight
D spotE spotF spotG spotDaytimeNight
Soot and dust Firing furnace
COD
Lead
Morning
East
DaytimeEast
Evening
East
Night
East
Daytime (all directions)Night (all directions)

Unit

mg/Nm3
ppm
−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3

dB

dB

−
−

−
−
−
−
−
−
−

52
48
100
128
0.08
55
58
55
50
60
55

AverageMax−<0.006
−
81.0
7.3
3.8
3.5
7.0
<0.5
<0.05
<0.05
<0.05
0.15
<0.01
−
1.7
0
44.1
43.5
44.6
46.1
44.9
46.9
46.6
47.4
47.3
49.7
49.9
47.8
53.5
49.3
43.9
44.9
45.8
46.0
45.9
48.4
47.4
42.6
42.1
43.8
45.7
43.4
46.6
45.7
31.5
32.3
<5
4.2
<0.01
42.9
44.8
43.5
44.8
<50
<50

−
<0.006
−
81.0
7.6
8.0
6.4
7.0
<0.5
<0.05
<0.05
<0.05
0.15
<0.01
−
1.7
0
46.4
47.1
49.0
50.3
50.0
53.1
52.6
48.1
48.1
51.3
51.5
48.4
54.4
51.5
47.3
47.5
47.8
48.3
50.9
52.7
48.5
44.5
45.0
45.5
46.5
45.5
48.5
47.1
41.0
41.0
9.0
7.0
<0.01
42.9
44.8
43.5
44.8
<50
<50

*2 We confirmed that there is no legal necessity to measure this item, as fluorine is not used; accordingly, we did not measure it in fiscal 2015.

NGK SPARK PLUG Group CSR Report 2016

127

*2

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Type

Soot and
dust
Air
NOx

NTK
Ceramic
Co., Ltd.
(Iijima Plant)

Drain(public water area)

Noise

Air

Drain
(public water area)

NTK
Ceramic
Co., Ltd.
(Nakatsugawa
Plant)

Noise

Vibration

Firing furnace:YA−5,6Firing furnace:YA−7,8
Absorption heater/chiller:FGL
Absorption heater/chiller:FGDL
Firing furnace:YA−5,6Firing furnace:YA−7,8
Absorption heater/chiller:FGL
Absorption heater/chiller:FGDL

pH
SS
BOD
COD
n-hexane extract
Cyanogen
CopperZinc
Lead
Fluorine
Boron
Phenols
Ammonia
Coli bacteria
MorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night
First spot
Soot and dust Firing furnace（NN−1）
SOxFiring furnace（NN−1）
Factory 1&2
pH
Factory 3
Factory 1&2
SS
Factory 3
Factory 1&2
BOD
Factory 3
Factory 1&2
COD
Factory 3
Factory 1&2
n-hexaneextract
Factory 3
Factory 1&2
Nitrogen
Factory 3
Factory 1&2
Phosphorus
Factory 3
Factory 1&2
Coli bacteria
Factory 3
First spot
Second spot
Morning
Third spot
Fourth spot
First spot
Second spot
DaytimeThird spot
Fourth spot
First spot
Second spot
Evening
Third spot
Fourth spot
First spot
Second spot
Night
Third spot
Fourth spot
Daytime
Fourth spot
Night
Fourth spot

NGK SPARK PLUG Group CSR Report 2016

Unit

Agreement
Law/Local
regulation with the city etc.

250

250
3

−

mg/Nm

100

100

180

180
ppm

−
150

150
−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
counts/cm3

Voluntarystandardvalue

6.0 〜 8.0
−
25
−
5
0.2
2
3
0.1
15
50
5
500
3000

mg/Nm3
Nm3/H

5.8 〜 8.6
50
30
30
5
0.5
2
3
0.1
15
50
5
500
3000
65
65
65
55
50
−

5.8 〜 8.6
50
30
30
5
0.5
2
3
0.1
15
50
5
500
3000
65
65
65
55
50
−

−

5.8 〜 8.6

5.8 〜 8.6

mg/l

50

50

35

mg/l

15

15

13

mg/l

40

40

30

mg/l

5

5

4

mg/l

10

10

−

mg/l

3

3

2.5

3000

3000

1000

60

60

58

65

65

63

60

60

58

50

50

50

65
60

−

63
58

dB

counts/cm3−

20−
6.2 〜 8.6
6.2 〜 8.6

dB

dB

Average
<5
<5
<5
<5
<10
<10
38.5
38.0
7.3
4.88
1.13
3.92
<1
<0.01
0.03
<0.05
<0.05
0.23
0.55
<0.02
8.8
19.0
46.0
44.0
46.0
47.0
6
0
7.9
7.5
2.9
2.9
1.4
4.0
6.5
10.9
<0.5
<0.5
6.5
5.8
0.07
0.67
147.3
0.3
50.0
52.3
52.5
52.0
51.0
50.5
50.0
51.3
50.0
51.5
47.8
50.3
49.5
47.8
49.0
47.8
26.0
23.0

Max
<5
<5
<5
<5
<10
<10
44.0
42.0
7.5
22.0
2.0
7.3
<1
<0.01
0.03
<0.05
<0.05
0.30
0.80
<0.02
10.0
53
46.0
44.0
46.0
47.0
6
0
8.5
8.3
5.0
5.0
4.3
6.2
8.9
19.0
<0.5
<0.5
9.4
8.8
0.21
1.20
320.0
3.0
51.0
52.5
53.0
55.0
53.0
52.0
51.0
51.5
51.5
52.0
50.5
53.0
50.0
49.0
49.0
49.0
26.0
23.0

128

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Air

NTK
Ceramic
Co., Ltd.
(Kani Plant)

Drain(sewer)Noise

Nansei CeramicCo., Ltd.

Noise

Drain
(public water area)
Kamioka
Ceramic
Co., Ltd.

Noise

Drain
(sewer)SparkTec WKSCO., LTD.
(Headquarters
Plant)

Noise

Vibration

Type
Soot and dust
NOx
pH
SS
BOD
COD
n-hexane extract
MorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night
First spot
Morning
East
DaytimeEast
Evening
East
Night
East
①
pH
②
③
①
SS
②
③
①
BOD
②
③
①
COD
②
③
①
n-hexane②extract③①
Coli bacteria ②③
Morning
Fourth spot
Daytime
Fourth spot
Evening
Fourth spot
Night
Fourth spot
① Oﬃce buildingpH② Head Factory③ West Factory① Oﬃce buildingSS② Head Factory③ West Factory① Oﬃce building
BOD② Head Factory③ West Factory① Oﬃce building
n-hexane② Head Factory
extract③ West Factory
Morning
Second spot
Daytime
Second spot
Evening
Second spot
Daytime
Second spot
Night
Second spot

NGK SPARK PLUG Group CSR Report 2016

Unit
mg/Nm3
ppm
−
mg/l
mg/l
mg/l
mg/l

dB

dB

−

Agreement
Law/Local
regulation with the city etc.
100
150
5.8 〜 8.6
200
160
160
5
50
60
50
45
55
60
55
50

−
−
−
−
−
−

−

−

Voluntarystandard
value
90
135
5.9 〜 8.5
180
144
30
4.5
50
60
50
45
55
58
55
50

5.8 〜 8.6−

6.2 〜 8.2

mg/l

200

−

50

mg/l

160

−

40

mg/l

160

−

40

mg/l

5

−

2.5

3000

−

300

dB

60
65
60
50

−

60
65
60
50

−

5.0 or higher−

5.8 〜 9.0

mg/l

−

−

600

mg/l

−

−

600

mg/l

50

−

50

counts/cm3

dB

dB

60
65
60
65
60

−

−

60
65
60
65
60

Average
3
9
7.6
5.0
2.4
5.9
1.0
50.0
50.0
48.0
45.0
42.9
44.8
43.5
44.8
7.8
7.5
7.5
1.0
29.0
15.0
<0.5
26.0
33.0
1.0
24.0
25.0
<0.5
0.9
1.3
<30
135
125
47.0
49.0
47.0
47.0
7.6
8.8
7.4
<1
87
9.0
1
81
9.4
−
<0.5
<0.5
61
62
59
42
39

Max
3
9
7.6
5.0
2.4
5.9
1.0
50.0
50.0
48.0
45.0
42.9
44.8
43.5
44.8
7.8
7.8
7.8
1.6
44.0
20.0
<0.5
40.0
40.0
1.3
27.0
30.0
<0.5
1.4
2.2
<30
240
250
47.0
49.0
47.0
47.0
7.6
8.8
7.4
<1
87
9.0
1
81
9.4
−
<0.5
<0.5
64
66
60
55
45

129

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Type

pH

Drain
(public water area)SS
BODn-hexaneextract

Morning

SparkTec WKSCO., LTD.
(Oguchi Plant)

DaytimeNoise

EveningNight

Vibration

Drain(public water area)
SparkTec WKSCO., LTD.
(Satsuma Plant)
Noise

Vibration
Nichiwa Kiki
Co., Ltd.

Drain(sewer)
Noise
Air

Drain
Spark Tec
Tono Co., Ltd. (public water area)(Nino
Headquarters
Plant)
Noise

Oguchi①
Oguchi②
Oguchi①
Oguchi②
Oguchi①
Oguchi②
Oguchi①
Oguchi②
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
Second spot
Third spot
Fourth spot
Fifth spot
Sixth spot
First spot
First spot

Daytime
Night
pH
SS
BOD
n-hexane extract
Coliform bacteria countMorningFirst spot
DaytimeFirst spot
EveningFirst spot
Night
First spot
DaytimeFirst spot
Night
First spotpHn-hexane extract
DaytimeNorth side of cooling tower
Soot and dust
NOx
pH
SS
Boron
Temperature
Wastewater volume
Fluorine
Morning
Daytime
Evening
Night

Unit

Agreement
Law/Local
regulation with the city etc.

Voluntarystandardvalue

5.8 〜 8.6−

5.8 〜 8.6

mg/l

−

−

200

mg/l

−

−

160

mg/l

5

−

5

55

55

55

60

60

60

55

55

55

50

50

50

65
60
−
−
−
−
−
50
60
50
45
60
55
5.0 〜
50
65
0.25
180
5.8 〜 8.6
300
10
40
−
8
65
70
65
60

60
55
−
−
−
−
−

60
55
−
−
−
−
−
50
50
50
45
60
55
6.0 〜 8.0
40
63
−
−
−
−
8
−
400m3/day or less
−
−
−
−
−

−

dB

dB
−
mg/l
mg/l
mg/l
counts/cm3

dB

dB
−
mg/l
dB
g/Nm3
ppm
−
mg/l
˚C
m3
mg/l

dB

−

−
−
−
−
0.15
150
−
−
−
−
−
−
65
65
65
60

Average

Max

7.1
7.7
17.0
2.4
16.0
2.3
1.0
<1
54
52
52
47
51
52
53
52
55
51
53
52
54
52
53
50
52
53
50
49
50
48
50
50
52
52
6.8
4
3
2.5
50
67
64
65
68
45
46
7.3
5.50
59.2
<0.002
44.0
7.2
74.9
0.3
18.5
54.4
<0.1
42.4
46.2
43.7
40.3

7.1
7.7
17.0
2.4
16.0
2.3
1.0
<1
54
52
52
47
51
52
53
52
55
51
53
52
54
52
53
50
52
53
50
49
50
48
50
50
52
52
6.8
4
3
2.5
50
67
64
65
68
45
46
7.3
8.0
59.2
<0.002
59.0
7.8
200.0
1.4
31.6
113.8
<0.1
46.9
51.1
46.3
44.9

*1 Due to background noise. Background noise is noise occurring when machinery, etc. is not operating, and is aﬀected by traﬃc noise, noise from neighboring plants, etc.

NGK SPARK PLUG Group CSR Report 2016

130

*1
*1
*1
*1

Detailed Information about Environment

Compliance Status
Measurement data on Air, Water Quality, Noise and Vibration

Name offactories andcompanies

Regulation value
Item

Air

Spark Tec
Tono Co., Ltd.
(Tono Plant)

Drain(public water area)

Noise

Air

Drain
(public water area)

Ceramic
SensorCo., Ltd.

Noise

Tokai Taima
Kogu Co., Ltd.

Noise

Vibration
NTK CERATEC
CO., LTD.
Drain(Headquarters/
Headquarters (public water area)
Plant)NTK CERATEC
CO., LTD.
Drain(Sendai Nishi (public water area)
Plant)NTK CERATEC
DrainCO., LTD.
(public water area)(Saitama Plant)

NTK CERATEC
CO., LTD.
Drain(Kyushu(public water area)
Cleaning
Plant)

Type
Soot and dust
NOx
pH
SS
BOD
n-hexane extract
Morning
Daytime
Evening
Night
Soot and dust
NOx
pH
SS
BOD
COD
n-hexane extract
NitrogenPhosphorus
Fluorine
Boron
First spot
Second spot
Third spot
Fourth spot
DaytimeFifth spot
Sixth spot
Seventh spot
First spot
Second spot
Third spot
Fourth spot
Night
Fifth spot
Sixth spot
Seventh spot
East
MornigEast
DaytimeEast
Evening
East
Night
East
DaytimeEast
Evening
pH
SS
BOD
Boron
Fluorine
pH
SS
BOD
Boron
Fluorine
pH
SS
BOD
COD
Lead
NitrogenPhosphorus
pH
SS
BOD
n-hexane extract
NitrogenFluorine

NGK SPARK PLUG Group CSR Report 2016

Unit
mg/Nm3
ppm
−
mg/l
mg/l
mg/l
dB
dB
dB
dB
mg/Nm3
ppm
−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l

Agreement
Law/Local
regulation with the city etc.

Voluntarystandard
value

−

−

−
−
−
−
50
60
50
45
200
−
5.8〜8.6
150
120
120
5
60
8
8
10

−
−
−
−

200
−
6.0〜8.0
18
18
18
2
30
−
−
−

200
400
5.8〜8.6
200
160
5
50
60
50
45
200
−
6.0〜8.0
18
18
18
2
30
4
8
10

dB

75

70

70

dB

70

60

60

dB

dB
−
mg/l
mg/l
mg/l
mg/l
−
mg/l
mg/l
mg/l
mg/l
−
mg/l
mg/l
mg/l
mg/l
mg/l
mg/l
−
mg/l
mg/l
mg/l
mg/l
mg/l

65
70
65
60
70
65
5.0〜12.0
1200
1200
10.0
8.0
5.0〜9.0
600
600
10.0
8.0
6.0〜8.0
30
25
−
0.1
120
16
5.8〜8.6
Avg:150, Max:200
Avg:120, Max:160
5
Avg:60, Max:120
8.0

−

−

−

60
65
60
50
65
60

−

−

−

−

−

−

−

−

Average
<10.0
74.0
7.3
<1
3.9
<0.5
43.6
48.5
42.9
43.2
0.001
34.75
7.3
1.0
2.2
5.4
1.0
5.6
0.1
1.4
1.2
55.6
56.5
59.3
53.7
51.6
52.2
56.7
52.8
55.5
57.1
51.2
48.7
49.4
55.1
43.6
47.6
44.7
40.8
48.4
48.3
8.3
16
140
0.1
0.8
8.2
66
373
0.1
0.8
7.9
1.7
1.80
4.20
0.01
5.6
1.30
8.1
1.6
9.65
0.75
2.8
0.69

Max
<10.0
77.0
7.3
<1
3.9
<0.5
43.8
54.6
43.8
44.0
0.001
72.00
7.6
1.0
6.5
10.0
1.0
10.0
0.7
3.3
4.0
57.8
57.9
61.8
58.4
56.7
56.3
59.4
54.7
56.9
58.5
52.8
50.2
50.6
57.8
43.7
47.9
44.9
41.1
48.6
48.5
8.8
16
140
0.1
0.8
9.0
94
480
0.2
0.8
8.1
7.0
4.0
13.0
0.02
30.0
3.80
8.2
2.0
10.0
1.00
3.0
0.80

131

Detailed Information about Environment

Environmental Accounting
Environmental Conservation Costs(Unit: million yen)
Non-consolidated

Items

Investment
Classification

Costs
withinthebusinessarea

NGK SPARK PLUG Group*

ExpenseInvestment

Expense

Major efforts
2014

2015

2014

2015

2014

2015

2014

2015

Pollution prevention cost

Air/water pollution prevention and noise reduction

14

16

305

442

46

129

774

863

Global environmental conservation cost

Global warming prevention, energy conservation

50

15

303

374

77

38

352

472

Resource circulation cost

Eﬀective resource utilization,industrial waste treatment/disposal

5

8

207

285

114

52

388

464

69

38

815

1,101

237

219

1,513

1,799

Sub-total
Upstream & downstream cost

Employee environmental education,
EMS construction and operation

0

0

0

0

1

2

16

15

Management activity cost

Employee environmental education,
EMS construction and operation

4

3

451

476

14

14

516

538

R&D cost

R&D of products promoting environment preservation

1,236

732

8,680

8,721

1,236

732

8,680

8,721

Social activity cost

Nature protection, aﬀorestation, environmental ads

0

0

295

305

1

2

302

311

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

10

10

0

0

10

10

Other costs

—

0

0

0

0

0

0

0

0

773 10,250 10,613

1,490

Total

1,310

Any inconsistency between an aggregate of all itemized ﬁgures and a “Total” ﬁgure is due to rounding of fractions.

969 11,037 11,394* Excluding Nittoku Alpha Service Co., Ltd.

Economic Benefits Associated with Environmental Conservation Activities (non-consolidated)(Unit: million yen)
2014

Area of recognized effectRevenue

Cost saving

2015

Revenue generated from the recycling of waste generated in operations or used products

187

93

Energy cost saving achieved from energy conservation eﬀorts

45

35

Reduction of water expenses through water saving

0.40

0.45

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

3

0.3

235

129

Quantity of Environmental Conservation Benefits
Classification
Effect measured in
the business area

Non-consolidated

Types of effect

Energyconsumption

Water
consumption

2015

Difference fromthe previous
fiscal year

19,611

17,258–2,35433,20032,433

–767

921

770

–151

1,134

1,150

16

LPG (million m3)

3,514

3,392

–122

7,812

6,943

–869

Tap water (m3)402,204

365,970–36,234

670,395

681,744

11,349349,423

300,665–48,758

693,320

622,529–70,791

653

586

–67

939

864

–76

Well water (m3)

Quantity of PRTR law-regulated substances handled (tons)
Effectmeasured withrespect toenvironmentalload and wastefrom businessactivities

2014

Gas (million m3)

Purchased electricity (GWh)
Effectmeasuredwithrespect toresource
input into
operations

2015

2014

NGK SPARK PLUG Group

Difference fromthe previous
fiscal year

100,40288,261–12,140

163,648

158,765–4,883

Eﬀectively utilized mass (tons)

7,345

6,405

–940

10,793

11,009216

Buried, incineration (tons)

109

56

–52

204

147

–56

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

1.6

0.8

–0.8

148

141

–7

CO2 emission from energy consumption (tons)
Waste* Transport energy data and sales oﬃce data is not included.

NGK SPARK PLUG Group CSR Report 2016132

Detailed Information about Environment

Hazardous Chemical Substances
PRTR Data for Each Business Site

* The table contains the substances that each business location was required to report(kg)
Quantity released

Name offactories andcompanies

Cabinet
order
No.
53
80
87
144

Headquarters
and Nagoya
Plant

Komaki Plant* Including NTK
ceramic(Komaki Plant)

Miyanojo Plant

Ise Plant
Takenami Plant

NTK Ceramic(Iijima Plant)

NTK Ceramic(Nakatsugawa
Plant)NTK Ceramic(Kani Plant)
Nansei Ceramic
SparkTec WKS CO., LTD.
(Oguchi Plant)

296
297
300
308
392
400
412
53
80
87
132
144
297
300
308
400
405
87
144
308
405
412
305
309
53
80
87
144
300
308
309
354
80
87
300
354
453
354
384
305
384

Name of chemical substance

Ethylbenzene
XyleneChromium and chromium (III) compounds
Inorganic cyanide compounds(except complex salts and cyanates)
1,2,4-trimethylbenzene
1,3,5-trimethylbenzene
TolueneNickeln-hexaneBenzenemanganese and its compounds
Ethylbenzene
XyleneChromium and chromium (III) compounds
Cobalt and its compounds
Inorganic cyanide compounds(except complex salts and cyanates)
1,3,5-Trimethylbenzene
TolueneNickelBenzeneBoron compounds
Chromium and chromium (III) compounds
Inorganic cyanide compounds(except complex salts and cyanates)
NickelBoron compounds
manganese and its compounds
Lead compounds
Nickel compounds
Subtotal
Ethylbenzene
XyleneChromium and chromium (III) compounds
Inorganic cyanide compounds(except complex salts and cyanates)
TolueneNickelNickel compounds
di-n-butyl phthalate
XyleneChromium and chromium (III) compounds
Toluenedi-n-butyl phthalate
Molybdenum and its compounds
di-n-butyl phthalate
1-bromopropane
Lead compounds
1-bromopropane

308 Nickel

SparkTec Tono CO., LTD.
(Nino Headquarters Plant) 405 Boron compounds
Ceramic Sensor

333 Hydrazine
374 Hydrogen fluoride and its water-soluble salts
Subtotal
Total

NGK SPARK PLUG Group CSR Report 2016

Quantity
handled

4,924
21,112
16,937
1,334
7,439
2,849
63,76090,351
4,042
1,865
1,095
3,062
14,765
2,390
2,076
2,697
1,131
27,32325,003613
32,63928,495
2,025
171,204
5,857
2,156
48,202
761
586,109
6,406
3,450
5,553
3,282
73,074
1,878
1,347
11,286
4,148
3,862
59,80921,719
4,029
2,719
2,040
30,192
3,500

Quantity transferred

Quantity
processed

PublicBuriedIncineration
Disassociation Product/
PublicEffective
water Soilandon thereaction
Sold
sewer
use
area
incineration
premises

Air
0
1

4,924
21,111
0
12

0

327

11

25

1
1

7,439
2,849
63,74900090,326

4,042
1,864

103
210
2

2
250
10
87

27
0

87

579
2,621
1,411

16,608
1,322

173

5
1,037
5,849
601
19
289
4
3
379
1,126
1,358
0

1,090
1,922
8,706
0
1,549
1,125
27,070
613
39

13

0

0
0
24,61531,36027,137150,350

171,204
5,719
2,156
44,422589
419,930

535

4,505
715

51
3,780
172
39 15,025
3,786
2,038
1,048
2,032

1,788
2,055
859

2,025

73,074
1,878
1,347
1,853
2,619
2,009
2,021
8,730
249
1,840

1,530
57,788

9,433
1,853
4,900

8,090
3,780
879

2,040
3,623
2,275

1,225

26,56915,253

15,253

7,226
13,531
3,432
277,736
863,845

Quantitytaken out

365

74

365
378

12,642
3,363
51,54939 66,574

110
139,799
140,377

30
30
203

6,787
779
39
15,685
166,035

70,309490,239133

Detailed Information about Environment

Waste
Volumes of Waste Generated at Each Business Site

The volume of waste generated in ﬁscal 2015 in the factories and the aﬃliated companies is listed in the table as follows.
Volume ofemissions(tons)Name of factories and companies

NGK SPARKPLUG CO., LTD.

Volume effectively
Recovery rate used
(tons)

Volume of buried
and incineration(tons)

Recovery rate (%)

Headquarters and Nagoya Plant

924

912

12

98.7%

Komaki Plant

2,556

2,525

30

98.8%

Miyanojo Plant

2,785

2,772

13

99.5%

Ise Plant

194

192

1.2

99.4%

Takenami Plant

3.3

3.2

0.02

99.4%

6,461

6,405

56

99.1%

Iijima Plant

782

756

26

96.7%

Nakatsugawa Plant

262

261

0.8

99.7%

Subtotal

NTK Ceramic Co., Ltd.

Affiliates

Kani Plant

63

63

0.3

99.6%

Komaki Plant

391

390

0.5

99.9%

Nansei Ceramic Co., Ltd.

8.2

8.2

0.003

100%

Kamioka Ceramic Co., Ltd.

161

161

0.3

99.8%

SparkTec WKS CO., LTD.

313

310

3.0

99.0%

Nichiwa Kiki Co., Ltd.

4.5

4.5

0.04

99.2%

Tono Plant

131

75

57

56.8%

Nino Headquarters Plant

1,305

1,304

0.7

99.9%

Ceramic Sensor Co., Ltd.

1,274

1,271

3.0

99.8%

Nittoku Unyu Co., Ltd.

0.5

0.5

0.004

99.9%

Subtotal

4,695

4,604

91

98.1%

Total

11,157

11,009147

98.7%

SparkTec Tono Co., Ltd.

NGK SPARK PLUG Group CSR Report 2016134

Detailed Information about Environment

Local Clean-up Activities
Clean-up Activities around our Business Sites

Number of operations implemented(times)Total number of participants(people)Headquarters and Nagoya plant

2

50

Komaki Plant

4

134

Miyanojo Plant

1

34

Ise Plant264Name of factories and companies

NGK SPARK PLUG CO., LTD.

9282

Iijima Plant

1

18

Nakatsugawa Plant

2

27

Kani Plant

2

39

Komaki Plant

2

10

2

3

Subtotal

NTK Ceramic Co., Ltd.

Nansei Ceramic Co., Ltd.
Kamioka Ceramic Co., Ltd.

2

31

Head Oﬃce Plant

4

59

Oguchi Plant

4

39

Satsuma Plant

450

Nichiwa Kiki Co., Ltd.

376

SparkTec Tono Co., Ltd.

2

94

Ceramic Sensor Co., Ltd.

4

75

Tokai Taima Kogu Co., Ltd.

2

68

Subtotal

34

589

Total

43

871

Affiliates
SparkTec WKS CO., LTD.

Clean-up Activities Initiated by a Local Government, etc.

Name of factories and companies

Event name

Held byLocation

Number ofparticipants(people)NGK SPARK PLUG CO., LTD. (Komaki Plant)

Komaki City cleanup activities

Komaki City

Around Komaki City Auditorium

13

Ceramic Sensor Co., Ltd.

Komaki City cleanup activities

Komaki City

Around Komaki City Auditorium

10

SparkTec WKS CO., LTD. (Oguchi Plant)

Oguchi-cho Clean-up Campaign

Oguchi-cho

Aise River surroundings

7

NTK Ceramic Co., Ltd. (Iijima Plant)

Picnic for the Environment of
the Tenryu River System

Nagano Techno Foundation

Conﬂuence of the Otagiri Riverand the Tenryu River29

NGK SPARK PLUG Group CSR Report 2016135