Download - Environmental Protecting our valuable Earth and passing it ...environment. The Nitto Denko Group has been implementing environmental conservation activities according to an independent

22 Nitto Denko Group Report 2013

Environmental Conservation Activities

Protecting our valuable Earth and passing it onto future generations

Inorderforacorporationandasocietytocontinuesustainabledevelopment,theNittoDenkoGroupbelievesthatasamemberofsociety,wehavearesponsibilitytoconductmanagementinharmonywiththeglobalenvironment.TheNittoDenkoGrouphasbeenimplementingenvironmentalconservationactivitiesaccordingtoanindependentgoalsincethe1960’s.Weestablishedour“CorporateEnvironmentalPolicy”in1996andour“EnvironmentalManagementIndex”in2004,

showingandevaluatingourconceptofenvironmentalmanagement.Sincethen,wehavebeenpromotingenvironmentalmanagementglobally.

InordertoprotectthevaluableEarthwherewelive,andpassitontofuturegenerations,theNittoDenkoGroupcontinuestoimplementenvironmentally-friendlybusinessactivitiesunderourCorporateVisionof“CreationofNewValue”.

Promotion of Environmental Management

Our Concept of Environmental Management

InconformitywithourcorporatevisionandourCorporateEnvironmentalPolicy,weimplementenvironmentalmanagementthroughtwoapproaches:a“reductionofenvironmentalloadassociatedwithourbusinessactivity”;andthe“developmentofbusinessconducivetoenvironmentalconservation”.

Doubling our Environmental Efficiency – Environmental Management Index

Byestablishingan“EnvironmentalManagementIndex”(EnvironmentalImpactValue-addedProductivity),weaimtodoubleourenvironmentalefficiencybetweenfiscal2005and2015.TheEnvironmentalImpactValue-addedProductivityisanindexwhichindicatestheenvironmental

Organization for Environmental Management

InordertopromotebusinessactivitiesunderourcorporatevisionandCorporateEnvironmentalPolicy,wehaveestablishedanexpertteam,whoseheadisarepresentativedirector,promotingenvironmentalconservationactivitiesglobally.

1.Wewilldevelopaninternalenvironmentalmanagementsystemthatpromoteseffectiveenvironmentalpreservation.

2.Withaproperunderstandingoftheenvironmentalimpactofouroperations,wewilldevelopinternalenvironmentalobjectivesandtargetsasfarasistechnicallyandeconomicallypracticable;moreover,wewillpursuetheseobjectivesandtargetsinanorganizedmannertoensurethecontinualimprovementofourenvironmentalpreservationefforts.

3.Ourtechnicalandproductdevelopmentwillfocusonthereductionofenvironmentalload.

4.Wewillcontinueoureffortstoconserveresourcesandenergy,reduceindustrialwaste,andpromoterecyclinginallaspectsofouroperations.

5.Aspartofourdedicationtoreducingtheloadontheenvironment,wewilldevelopalternativetechnologiesintendedtoreduceconsumptionofthesourcesofenvironmentalpollutionaswellastocontrolemissionsofenvironmentalpollutantstothegreatestextentfeasible.

6.Wewillcomplyfullywithenvironmentallaws,regulationsandagreements,andwillimposeourownenvironmentalcriteriaasrequiredintheinterestsofenvironmentalpreservation.

7.WewillmakesurethatouremployeesreceiveenvironmentaltrainingandinformationsothatallunderstandthesignificanceofourCorporateEnvironmentalPolicy,haveincreasedawarenessoftheimportanceofenvironmentalpreservation,andactonourCorporateEnvironmentalPolicy.

8.Wewillconductperiodicenvironmentalauditsinordertomonitortheeffectivenessofourenvironmentalmanagementstrategyandidentifyareasrequiringimprovement.

9.Aspartofoursocialcontribution,wewillpublicizeproprietarytechnologiesandinformationthatarelikelytobenefittheenvironment.

Our Policy on the Environment – The Nitto Denko Group’s Corporate Environmental Policy

CEO

Environmental expert teamEnvironment and Safety Committee

Global environmental strategy

Head: Board Member and Senior Executive Vice President

Improvement of global total safety

Occupational safety

Occupational health

Traffic safety

Environmental conservation

Fire protection and prevention

Planning

Development ofenvironmental technology

23Nitto Denko Group Report 2013

0

200

400

600

800

1,000

1,200

0

20

40

60

80

100

120(1000ton-EI) (Index)

2005

100

2008 2009 2010 2011 2012<Base year>

363

162

201

151

101

434

202

179

101

423

178

221

111

448

209

159

111

431

195

201

109

426

202

217

(FY)

■ Energy ■ Solvent ■ Industrial Waste ■ Other GHG Index

FY 2005 2008 2009 2010 2011 2012AddedValue(millionyen) 318,098 328,264 298,890 332,153 300,365 332,860EnvironmentalImpact(ton-El) 876,846 815,973 814,210 826,178 822,979 845,349

Productivity 0.363 0.402 0.367 0.402 0.365 0.394RelativeIndex 100 111 101 111 101 109

Raw materials purchased(Excluding solvents) Raw materials

181,857 ton

230,474 ton

Water4,492,199 ton

Effluent water4,333,073 ton

Air emissions441,315 ton

Waste disposal51,221 ton

Products142,360ton

Energy5,829,463 GJ

Purchased solvents 42,978 tonMaterials from material recycling 5,639 ton

Materials from material recycling 18,012 ton

Plastics* 5,639 tonSolvents 12,374 ton

Waste incinerated (Recycled energy) 47,364 ton （1,922,382 GJ）Waste incinerated* 6,045 tonSolvents incinerated 41,259 ton

Purchased electricity

(of which 3,905,400 GJ purchased)

1,277,219 GJ

Other energy 2,628,181 GJRecycled energy 1,922,382 GJIn-house power generation 1,681 GJ

Externallyrecycled waste 50,937 ton

11,684 ton

Landfill 284 ton

CO2 440,342 ton

Organic solvents 973 ton

Public water area 2,739,864 ton

Sewerage system 244,344 ton

Tap water & Industrial water 2,155,494 ton

Groundwater 2,195,677 tonRecycled water 141,028 ton

Energyrecycling

Water recycling

Materialrecycling

Manufacturingprocess

In-houserecycled waste*

* In-house recycling of industrial waste: Industrial waste is recycled into plastic or incinerated to produce energy.

loadfromcorporateactivityvis-a-vistheaddedvaluecreatedfromthatactivity.Itisobtainedbydividingtheaddedvalue*1createdfromcorporateactivitybyEnvironmentalImpact*2entailedinthecreationoftheaddedvalue.

Environmental Impact Value-added Productivity in fiscal 2012

0.394 million yen/ton-El Index*3: 109

Infiscal2012,theEnvironmentalImpactValue-addedProductivityIndexroseslightlyonthepreviousfiscalyear.ThatwasbecauseEnvironmentalImpactremainedmostlyunchangedwhileAddedValuerose.However,inordertoachieveourgoalsforfiscal2015,morereductionsofEnvironmentalImpactandanincreaseoftheAddedValuewillbenecessary.Togetherwewillmakeconcertedeffortsgloballytotacklesuchproblems.

*1 Addedvalue=sales–(materialcosts+outsideorderexpenses+energycosts)

*2 AuniqueunitutilizedbytheNittoDenkoGroup,indicatingEnvironmentalImpact(quantityofCO2equivalentemissions),intowhichweconvertenergypurchased,industrialwastegenerated,solventpurchasedandthelikethroughtheuseofacoefficient.(unit:ton-El).

*3 IndexshowsvariationinEnvironmentalImpactValue-addedProductivitybysettingtheindexat100asoffiscal2005

Environmental Impact of Our Business Activities – Material Flow of Business Activities (non-consolidated)

Environmental Impact Value-added Productivity (Environmental impact and Relative index) (consolidated)

Environmental Impact Value-added Productivity (consolidated)

Raw materials

CO2 emissions Solvent emissions

Water discharge Industrial waste

R&D expenses

Capitalinvestment

Recycling

Energy

Water

Corporate governance Management

Products

New technologyIntellectual

property

Businessactivity

Sales

OperatingIncome

Dividends

Socialcontributions

Humanresources



Our Approach to Climate Change

Our Policy on Climate Change

AlmosthalfofCO2emissionsgeneratedbytheconsumptionofenergyintheworldarecausedbyindustry.Therefore,areductioninCO2emissionsisasignificantissuefortheNittoDenkoGroup.InconformitywithourEnvironmentalPolicy:“Wewillcontinueoureffortstoconserveresourcesandenergy,reduceindustrialwaste,andpromoterecyclinginallaspectsofouroperations”,weareimplementingreductionsinCO2emissions.

CO2 Emissions (Scopes 1+2)

Total CO2 emissions in fiscal 2012:

707,776 CO2-metric tons (consolidated)

TotalCO2emissionsinfiscal2012increasedoverthepreviousfiscalyear.Ontheotherhand,ourunitCO2emissions(CO2emissionsper1millionyenofproductionoutput)decreasedto899CO2-kg/millionyen.TotalCO2emissionsincreasedmainlybecausetheamountofenergyused,whichaccountsfor71%ofCO2emissions,didnotdecline,whiletheCO2emissionfactorsforelectricitypurchasedatproductionbasesinJapandeteriorated,asaresultofthehaltinoperationsofdomesticnuclearpowerplants.

Inthefuture,wewillimplementthedevelopmentofproductsandprocesseswhichareenergy-efficientatthetimeofmanufacture.

Visualization of CO2 Emissions throughout the Entire Supply Chain (Scope 3)

Wearetryingtograspwhatkindofinfluencetheentiresupplychainhasonclimatechange.Infiscal2012,wecalculatedCO2emissionsgeneratedfromthetransportationofourproductstoourcustomers.

Inordertograspthesituationacrossentiresupplychains,wewillestablishamethodforcalculatingotherobjects.

Japan 66%

Taiwan 8%

China 10%

South Korea 8%

Belgium 4%

Malaysia 2%U.S. 1%Vietnam 1%

Electricityand fuel:

71%

Incineration ofsolvent vapors:

27%

Incineration of industrial waste:

2%

CO2 Emissions in Fiscal 2012:

707,776CO2-metric tons

CO2 Emissions in Fiscal 2012:

707,776CO2-metric tons

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1990 2005 2008 2009 2010 2011 2012

231,095

547,155

28,423

143,893

■ ■ ■

1,6411,481

414,516

27,672

243,906

1,225

418,207

27,766

243,685

1,023

424,347

28,877

253,997

1,023

406,264

27,519

247,566

1,015

440,342

24,089

243,345

899

(CO2-metric tons/year) (CO2-kg/million yen)

(FY)Nitto Denko Corporation

Domestic group companies

Overseas group companies

Unit emissions

Benchmark year ofKyoto Protocol( )

*Scopes1,2and3describedonthispageshowtherangeofestimatescoveredbythe‘GreenhouseGasProtocol’.

Total and Unit CO2 Emissions (Scopes 1+2) (consolidated)

CO2 Emissions by Source (consolidated)

CO2 Emissions by Country (consolidated)

Total amount of greenhouse gas emissions in fiscal 2012 (Scopes 1, 2 and 3) (non-consolidated): 449,039 t-CO2

Purchased electricity147,132 t-CO2 293,210 t-CO2

8,697 t-CO2

Scope 2

Manufacturing

Scope 1

Partners

TransportatitonOur customers

Scope 3

The method of calculation is now under consideration.

TheNittoDenkoGroupreleasesinformationonclimatechangethroughtheCarbonDisclosureProject.


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2008 2009 2010 2011 2012

3,768,2224,462,787

309,035

4,840,223

306,270

3,978,538

292,343

4,492,199

(FY)■ ■Nitto Denko Corporation Domestic group companies

(metric tons/year)

0

1,500,000

3,000,000

4,500,000

6,000,000

7,500,000

0

5

10

15

20

25

1990 2005 2008 2009 2010 2011 2012

3,095,4383,658,988

235,859

1,050,727

22.0

10.2

3,882,619

218,095

1,892,032

10.7

3,804,466

226,521

1,761,502

8.7

3,818,774

233,853

1,763,228

8.5

3,771,279

241,455

1,781,091

8.7

3,905,400

206,244

1,641,173

7.3

(GJ/year) (GJ/million yen)

(FY)Benchmark year ofKyoto Protocol( ) ■ ■ ■Nitto Denko

CorporationDomestic group companies


Unit emissions

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60,000

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120,000

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40

80

120

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200

2005 2008 2009 2010 2011 2012

62,674

3,03213,284

163

56,761

3,023

43,536

185

59,946

2,849

50,545

168

61,069

3,171

52,614

169

59,446

3,265

54,815

176

62,905

3,407

54,749

154

(metric tons/year) (kg/million yen)

■ ■ ■(FY)

Nitto Denko Corporation



Unit emissions

0

500

1,000

1,500

2,000

0

1.5

3.0

4.5

6.0

2005 2008 2009 2010 2011 2012

1,131

125

597

868

57

297

779

64

296

1,099

62

350

747

53

313

973

52

305

5.26

2.181.69

2.201.67 1.69

(metric tons/year) (kg/million yen)

■ ■ ■Nitto Denko Corporation



Unit emissions

(FY)

Management of Water Resources

Amount of water consumption in fiscal 2012:

4,784,542 metric tons (domestic bases)

Largeamountsofwaterareusedintheproductionofpolarizingfilmsandflexibleprintedcircuitboards.Wetackletheeffectiveutilizationofwaterresourcesbyutilizingourmembraneproductsandrecyclingdrainagewater.Asmuchwaterisnecessaryintheproductionprocess,wedonotmanufactureourproductsinareasthatsufferfromphysicalandeconomicwaterscarcity(whereusageratesofwaterresourcesexceed75%).

Indischargingwaterusedintheproductionprocess,weadequatelyprocessandthendrainitbeforeitisreleasedintotheenvironment.

Effective Utilization of Fossil Fuels

Amount of energy from fossil fuels used in fiscal 2012:

5,752,818 GJ (consolidated)

Formanufacturerslikeus,theexhaustionoffossilfuelsusedasrawmaterialsorenergyisaseriousproblem.Withtheaimofsustainabledevelopment,weputeffortintotheeffectiveutilizationofmaterialsandenergybymeansofsavingenergyandreducingwaste.Inaddition,wepromotetheintroductionofrawmaterialsfromnon-fossilfuelsandrenewableenergy.

Management of Waste

Unit generation of waste in fiscal 2012:

154kg/million yen (consolidated)

WastewithintheNittoDenkoGroupismainlylogrolledgesoftapeandoffcutsoffilmgeneratedfromthecuttingprocess.WeadequatelydealwithwastewithintheGroupinconformitywiththeNittoDenkoGroup’s“RegulationsforWasteManagement”.Furthermore,werecycleasmuchwastegeneratedaspossible.

Management of Organic Solvents

Amount of solvent emissions in fiscal 2012:

1,330 metric tons (consolidated)

Inordertominimizeairpollutiongeneratedfromorganicsolvents,weinstallincinerationequipmentusedforsolventgasesorsolventrecoveryunits,oneveryproductionlineasneeded.Furthermore,weareaggressivelyengagedinreducingthequantityoforganicsolventsused.Theamountofsolventemissionshasbeendecliningyearafteryear.

Water Consumption (including water recycled at domestic bases)

Total and Unit Energy Purchased (from fossil fuels) (consolidated)

Total and Unit Generation of Industrial Waste (consolidated)

Total and Unit Solvent Emissions (consolidated)



Providing Sustainable Products

Asabusinesscontributingtoenvironmentalconservation,westrivetodevelopandsupplysustainableproducts.

Sustainable Products

ProductscontributingtoenvironmentalconservationarereferredtoassustainableproductsintheNittoDenkoGroup.Bygivingthemauniquedefinition,evaluatingproductsaccordingtothetwocriteriaof“Beingusefulforsolvingglobalenvironmentalproblems”and“Effectivelyutilizingresourcesthroughthelife-cycleofproducts”andmeasuringtheircontributiontoenvironmentalconservation,

Subcategoryname No. Definition

A. Low Environmental Impact Products

A-1

Productsthatdonotcontainanyprohibitedsubstancesspecifiedbycustomerrequest,legalregulations,orintheGroupRegulationsonVoluntaryManagementofChemicals,orproductswhosecontentofsubstancesspecifiedforreductionbycustomerrequest,legalregulations,orintheGroupRegulationsonVoluntaryManagementofChemicalshavebeenreduced.

A-2

Productsthatnotonlyhavelowerenvironmentalimpact(e.g.,energyconsumption,industrialwastereduction)duringanyprocessfromcollectionofrawmaterialstotheGroupprocesses(manufacturing,disposal,andlogistics),butalsohavealowertotalenvironmentalimpactfromcollectionofrawmaterialstoGroupproductionprocesses,incomparisonwithotherGroupproductsorcompetingproducts.

B. Positive Environmental Impact Products

B-1 Productsthatnotonlyhavealowerenvironmentalimpactduringanycustomerprocessfromusetodisposal,butalsoalowertotalenvironmentalimpactfromusetodisposalbythecustomer,incomparisonwithotherGroupproducts,competingproducts,orconventionaltechnologies.

B-2

Productsthathelpresolveglobalenvironmentalissues.Thissubcategoryalsoappliestoproductswhosetotalenvironmentalimpactgeneratedovertheirlifecycle,fromcollectionofrawmaterialstomanufactureanddisposal,hasapositiveeffectontheglobalenvironmentaccordingtotheLifeCycleAssessment*oranotherassessmentmethod.

weclassifyourproductsas“LowEnvironmentalImpactProducts”or“PositiveEnvironmentalImpactProducts”.

Definition of Sustainable Products

Infiscal2012,wereviewedthedefinitionsforandthenamesofthetwosubcategories.Weclassifysustainableproductsaccordingtothedefinitionsinthetablebelow.

The Number of Products Qualifying as Sustainable

Infiscal2012,2,050productsqualifiedasLowEnvironmentalImpactProductsand20asPositiveEnvironmentalImpactProducts.

Life Cycle Assessment*1

Global Environmental Problems2

Life-cycle assessment

Industrialwaste

Production of raw materials

A-1 Low Environmental Impact Products B-1 Positive Environmental Impact Products

A-2 Low Environmental Impact Products B-2 Positive Environmental Impact Products

•Production•Business activities

Energy

IndustrialwasteEnergy

IndustrialwasteEnergy

IndustrialwasteEnergy Energy Energy

CO2

Promoting positive effectsContributing to recovery of the environment and solving environmental problems

Suppressing negative effects

Reducing use of environmentally harmful materials

Materials manufacturers

Industrial wasteProcessing Consumers


Biodiversity Conservation

Inordertocontributetowardsasustainablesociety,NittoDenkohasbeeninvolvedinbiodiversityconservationactivitiesasadrivingpartnerof“DeclarationofBiodiversitybyNipponKeidanren”since1997.

Inconformitywiththebasicstandpointofthisdeclaration,weapproachbusinessactivitieswithdueconsiderationtobiodiversity.

Supporting UNEP Activities

TheNittoDenkoGroupcooperateswithUnitedNationsEnvironmentProgramme(UNEP)inplayinganactiveroletorealizeasustainablesocietyandhasbeenasupportingcompanysincefiscal2010.WesupportthepublicationanddistributionoftheJapaneseversionofOur Planet and TUNZA,whichareofficialUNEPmagazines.

Highlights of Environmental Conservation Activities in Fiscal 2012

Sharing Policy and Cases of Environmental Conservation Activities across the Whole Group

TheNittoDenkoGrouphasheldanEnvironmentGlobalConferenceonceeverythreeyearssince2003,asanopportunitytoexchangeopinionsonapproachestowardenvironmentalconservationacrossthewholeGroup.Thefiscal2012conferencewasheldinJapan.

Approximately200participantsfrom50basestalkedwithoneanotheraboutworldtrendsintheenvironment,ourposition,ouridealsandourgoalsinenvironmentalconservationactivities.Wewilladopttheissuescoveredattheconferenceintoouractionpolicyandsteadilyengagethem.

E-BOX Receives Award in World Packaging Organization Contest

Environmentally-friendlypackagingmaterialE-BOXreceivedaWorldStarAwardandaSustainabilityAwardin2012attheWorldStarAwards,hostedbytheWorldPackagingOrganization.

E-BOXwonapprovalforreducingCO2emissionsby57%comparedtotraditionalpackagingandraisingloadefficiencyintransportation.

Employees Practice Energy Conservation at Home, Cutting 40 ton of CO2

Wehavebeenimplementinga“GreenDesignAction”sincefiscal2009inordertoimproveemployees’awarenessoftheenvironment.

Infiscal2012,employeespracticedenergysavingintheirownbackyard,suchasintheirhomesandreducedCO2emissionsby40ton.

Wehaveintroducedtheconceptof‘life-cycleassessment’toassesssustainableproducts.Life-cycleassessmentisatechniquetoassessenvironmentalimpactsassociatedwithallthestagesofaproduct’slifefromrawmaterialextractionthroughmanufacture,use,disposalandtransportation.

Life-cycleassessmentconsistsoffourstages.Thefirststagebeginswithaclearstatementofthegoalandscopeofthestudy.Thesecondstageisaninventoryanalysis,thethirdisanimpactassessmentandthefourthisinterpretation.Infiscal2012,weconductedananalysisofCO2emissionsfortwoproducts.

Infiscal2013,wewillproceedwithananalysisofourproductsotherthanCO2emissionstoquantitativelyassesswhatimpactourproductshaveonsociety.

* Life Cycle Assessment