ENVIRONMENTAL REPORT FY2012 NIHON DEMPA KOGYO CO.,LTD. 未来へ繋ぐ 水晶の架け橋・・・ Introduction Creation of an affluent and sustainable low-carbon society The Nihon Dempa Kogyo Group is fully committed to a range of environmental activities, including lowering of environmental burdens, resource conservation, reduction of carbon dioxide emissions, elimination of waste, and manufacture of environmentally friendly products. We plan to continue promoting corporate activities designed to create a sustainable recyclingoriented society and produce harmony with the natural environment. We also place strong focus on customer satisfaction by following the corporate philosophy of working on environmental preservation and fulfilling our social responsibilities. We will continue our efforts to meet the expectations of customers and win the confidence of consumers around the world while performing our duties as a corporate citizen with business operations worldwide. We hope readers will take the time to digest this report and provide candid opinions and suggestions. The NDK Group's Environmental Philosophy and Policies 1. Environmental Philosophy NDK, as globally operating corporation, aware the importance of environmental loads reduction activity and recycling-oriented society, in the light of our corporate philosophy [NDK is to work on the environment preservation and meet social responsibility]. We, with our will and responsibility, deploy proactive continual environment preserving activities and we pass this precious earth to future generations. Hiroshi Takeuchi President and Representative Director 2. Environmental Policies i. Preserving the global environment is one of the major management issues at NDK. We will carefully analyze and assess the environmental impact of all products and business processes, from product development through design, manufacture, and sale as well as continually improve measures to prevent environmental pollution. ii. We will observe all relevant environmental regulations and stipulations strictly and maintain and improve our environmental management system. We also will regularly review the system and strive for continual enhancement. iii. We will establish our own standards in the areas of our operations with significant environmental impact. These standards will be based on the present-day realities of technology and economics. We will also review, when necessary, our environmental objectives and targets concerning these activities and progressively improve the management of such activities. iv. We will educate and enlighten all employees about our environmental philosophy and policies in order to carry out proactive continual environment preserving activities. v. We will make our Environmental Philosophy and Policies readily available to the public. Main targets/achievements in FY 2010 - 2011 (NDK) FY 2010 Division FY 2011 Activity Prevention of global warming (energy saving) Reduction of CO2 emissions Resource circulation Zero emissions (recycling rate) Reduction in use of hydrogen fluoride Management of environmentally Reduction in use of toluene hazardous substances Reduction in use of sulfuric acid Target Achievement Target Achievement 6% reduction 2% increase 6% reduction 1% reduction 100% 100% 100% 100% 3% 4% 5% 6% 2% 8% Note 1 Note 1 13% 6% 13% 7% Note 1: Removed because a measure of success was achieved in the effort to reduce the usage of toluene Overview of business activities and environmental loads in FY2011 Power (196,723 MWH) Water (1,560,968m3) Chemicals (4,293 ton) Niigata NDK Furukawa NDK NDK-Taipei NDK-S Paper (35 ton) Hakodate NDK ANC/NQM Suzhou NDK NDK-E NDK Chitose NDK Kansai NDK Head Office NDK-F NDK-SH NDK-G CO2 emissions (103,923 ton-CO2) NDK Chubu NDK Sayama NDK-I NDK-HK NDK-Scandinavia Drainage (1,378,918m3) NDK-A Recycling (900 ton) Contract disposal (586 ton) ・ The NDK Group is committed to global environmental conservation and the fulfillment of its social responsibilities. ・ The Group strives to reduce the extent of the environmental loads indicated above. ・ The Group seeks to protect our precious earth and hand it down untainted to the next generation. Social contribution activities Collection of bottle caps (donation for vaccines) Tree planting on the premises of factories Donation of cherry seedlings Commendations for treeplanting activities Visits to nursing homes Cleaning activities Certificate of eco-friendly plant Zero‐emission activities (NDK) The Sayama Plant achieved 100% zero emissions operation in FY 2009, and maintained the rate in FY 2010. The plant received the 11th Saitama Environment Award in March 2010 in recognition of this outstanding environmental conservation achievement. Environmental measures to prevent global warming Solar power generator Pull‐code fluorescent lights LED lighting The Sayama plant was certified by Sayama city as eco-friendly plant in recognition of its waste reduction and recycling activities. Reed screens Energy‐saving chiller Motion detectors Tree‐planting on the premises Automatic water saving Thermal reflex paint (roof) Partial use of fluorescent lights Inverterization Improved heat-exchange efficiency of the outdoor chiller unit A 9% reduction in power consumption was achieved by using reed screens. Topics of FY2012 Obtained a loan from the Development Bank of Japan The Development Bank of Japan provided a loan to NDK in June 2011, in recognition of its CO2 reduction and recycling activities. (Covered by Nikkan Kogyo Shimbun, Posted the power consumption status on the intranet From the summer of 2011, the power consumption status was posted on the intranet to share information. If the consumption reaches the peak, an announce is made to warn each department to reduce power consumption. Expanded environmental activities (activity status at non-production companies/bases) ● The scope of the NDK group's environmental management has been expanded from 7 companies and 7 bases to all bases (14 companies and 21 bases)! The NDK group's all bases (14 companies and 21 bases) have been striving for successful environmental management since April 2012. Our major activities include energy-saving, recycling, partial use of lights, disuse of lights at lunchtime, moderate air conditioning, reduction and recycle of paper, both side printing, disuse of lights and monitors when not in use, disuse of the electric identification sign after closing the office and use of LED lights. NDK-E(UK) Recycling NDK-E (Scandinavia) Disuse of lights at lunchtime Disuse of PCs when not in use NDK-SH(Shanghai) Disuse of lights when not in use Disuse of ights at lunchtime NDK (Chitose) Disuse of lights at lunchtime Environmental activities NDK-A (US) NDK-G(Germany) Recycling Disuse of lights at lunchtime Recycling Disuse of lights at lunchtime NDK-S (Singapore) NDK-F (France) Recycling Moderate air conditioning Disuse of lights at lunchtime Recycling NDK-I (Italy) NDK-SH (Taipei) Recycling Moderate air conditioning Partial use of lights NDK (Kansai) Moderate air conditioning Compliance with lighting rules NDK (Chubu) Partial use of lights Moderate air conditioning Activities to protect biodiversity (in Japan) Four NDK group companies in Japan are committed to planting native species as an activity to preserve biodiversity. The use of FSC-certified paper (copy paper) is another example of such efforts. The four companies have planted 6,939 plants of native species to date. 200 Japanese weigela 9 Japanese stuartia 11 Matsumae maple 12 mugo pine 11 cedar 22 Japanese maple 236 cherry 22 satsuki azalea 1 nomuramomiji 9 painted maple 10 camphor 12 Japanese elm 510 hydrangea 187 white birch Furukawa NDK NDK 80 Yezo yama tsutsuji 1024 yamatsutsuji 9 sawtooth oak 34 sargent cherry 12 oriental 710 Japanese kerria 510 bush clover 2 yew 32 camellia 19 Yedo 2 box Niigata NDK 3 Yezo murasaki tsutsuji 12 Japanese snowbell 120 Chinese azalea 510 mitsuba tsutsuji 18 zelkova Hakodate NDK 1 Yezo cherry 150 spindle 123 pine 18 quercus serrata 192 dodan tsutsuji 17 yamazakura 266 azalea 32 rowan 25 dogwood 56 Sakhalin spruce 58 Chinese juniper 36 Japanese spindle 3 Japanese maple 4 Japanese chestnut 1024 andromeda 25 cucumber 104 sasanqua 58 white oak 398 satsuki azalea Activities to prevent biodiversity (overseas) Sozhou NDK (China) is committed to planting native species as an activity to preserve biodiversity, and has planted 1,167 plants of such species to date. 37 fragrant olive 101 weeping willow 9 Chinese holly leaf 4 sophora 185 camphor 29 gardenia 1 weeping forsythia 4 banana plant 40 laurel magnolia 295 tarajo holly 23 Japanese cheesewood 7 azalea 4 Chinese arbovitae Sozhou NDK 36 penny 8 lotus 27 magnolia 62 glossy privet 2 boxtree 10 fatsia 100 weeping willow 5 hamomiji 3 China rose 9 camellia 14 southern yew10 red maple 2 wintersweet 57 Japanese white pine 13 crape myrtle 1 banana tree 8 loquat 9 trident maple 27 althea 1 winter jasmin 33 flowering crabapple2 Chinese fringe bush Environmental Accounting The NDK group (14 companies and 21 bases) has employed an environmental accounting system and actively disclosed relevant information since this fiscal year. We hope that this will give an index to evaluate our corporate value and contribute to a wider recognition of our environmental approach. The group will strive for more transparent and accurate environmental management. Environment Preservation Cost (14 companies and 21 bases) The consolidated environmental management index (total environmental cost (503 million yen) / sales (50.8 billion yen)) in FY2011 is 0.99%. The environmental preservation cost was calculated based on "Environmental Accounting Guidelines 2005" by the Ministry of the Environment. Type of cost 1. Costs within the company premises ①+②+③ Breakdown Proper disposal of PCB, maintenance of sewerage facility, sewer, prevention of water ①Pollution prevention cost pollution, land pollution and land sinking, activities to prevent shaking and noise Campaign to reduce CO2 by 6%, ozone depletion prevention, energy saving ②Environment equipment (e.g. diffusion pump), energy saving devices, energy and resource saving preservation cost activities, greenhouse gases reduction Sewage disposal cost, sludge reduction, water-saving, efficient use of resources, ③Resource recycling cost recycling of waste, waste reduction, measures to reduce waste, proper management (recycling of gold and silver, paper reduction and so on) Upstream/downstrea Lease, maintenance and management of hybrid cars, green purchase, green 2. procurement m cost Environmental advertisement, verification of legal compliance, PRTR, Sayama city environmental ISO committee, environmental education, response to customer requests for environmental investigation, ISO periodic review, internal 3. Administrative cost environmental audit, environmental preservation committee, preparation of environmental report (environmental accounting), environmental management review, environmental load measurement and so on 4. R & D cost 5. Social activity cost Cost for 6. environmental damage recovery Unit: thousand yen FY2011 results Investment Cost FY2010 results Investment Cost Main activities R & D cost for environmentally-safe and eco-friendly products, miniaturization of products, energy saving, low electricity consumption Disclosure of environmental information, cleaning activities in the local areas Purification of soil and groundwater, decontamination cost, security deposit, penal charge and so on Sub-total Total 111,378 157,865 29,344 162,656 4,830 117,736 311 118,150 64,328 9,597 28,850 8,518 42,220 30,532 183 35,988 0 1,345 0 1,784 2,101 68,225 2,280 67,723 12,824 72,900 97,872 141,070 0 31 0 27 0 0 0 126,303 426,669 300,366 129,496 502,756 0 373,260 Quantitative and economic effects of Environment conservation Unit: thousand yen Amount of environmental loads Unit Item FY2010 (A) FY2011 (B) Quantitative effect of Environment preservation (C)＝(A)-(B) Economic effect of environment preservation Cost FY2010 (D) FY2011 (E) Cost saving (F)=(D)-(E) Profit on sale (G) Quantitative and economic environmental preservation effects of resources used for business operation Power usage MWh 206,406 196,723 9,683 2,477,000 2,361,000 116,000 Gasoline usage Ｌ 79,552 72,645 6,907 11,137 10,170 967 Light oil usage Ｌ 826 9,375 ▲8549 99 1,125 ▲1026 Bunker A usage Ｌ 230,858 295,834 ▲64976 17,545 22,483 ▲4938 Kerosene Ｌ 53,551 48,549 5,002 4,659 4,224 435 city gas Nm3 34,646 37,256 ▲2,610 3,118 3,353 ▲235 LPG usage m3 277,395 271,752 5,643 205,272 201,096 4,176 Industrial steam usage MJ 42,300 29,830 12,470 239 169 70 City water usage m3 163,171 145,754 17,417 54,782 48,930 5,852 Well water usage m3 99,526 113,406 ▲13,880 0 0 0 Paper usage ton 6.804 6.7809 0.0231 842 840 2 Quantitative and economic environmental preservation effects of environmental loads and waste emitted by business operation CO2 emissions ton 115,409 103,732 11,677 2,719,069 2,603,620 115,449 Waste produced ton 1470 1486 ▲16 85,264 84,015 1,249 Waste disposed ton 624 586 38 16 15 1 － － － － － － － － － － － － － － Profit Sale of valuables (gold, silver etc) thousand yen － － Sub-total Total － － － － 5,527,000 238,002 5,527,000 5,765,002 Period April 1, 2011 - March 31, 2012 (FY2011) Scope (14 companies and 21 bases) and each company's total environment preservation cost in 2010 and 2011 Company (base) 1 2 3 4 5 6 7 8 NDK Sayama plant NDK Head office Furukawa NDK Co., Ltd. Hakodate NDK Co., Ltd. Niigata NDK Co., Ltd. Suzhou NDK Co., Ltd. Asian NDK Crystal Sdn. Bhd. NDK Quartz Malaysia Sdn. Bhd. Grand-Total 2010 total environment preservation cost Unit: thousand yen 2011 total environment preservation cost 204,649 362,681 91,929 13,086 8,501 87,845 83,150 15,309 8,176 24,821 25,182 14,007 426,669 502,756 Since the environmental management was initiated on April 1, 2012, the preservation costs at the companies and bases below are 0 yen. But the past usage of electricity and other resources has already been investigated. ・NDK Kansai Sales Office, NDK Chubu Sales Office, NDK Chitose Technical Center, NDK America, Inc., NDK Europe Ltd., NDK Europe Ltd., French Office, NDK Europe Ltd. German Office, NDK Europe Ltd. Scandinavian Office, NDK Italy Srl, NDK Electronics (HK) Limited, NDK Electronics (HK) Limited Taipei Branch, NDK-Electronics Shanghai Co., Ltd., NDK Crystal Asia Pte. Ltd. Changes in CO2 emissions Entire NDK group (14 companies and 21 bases), FY2007 - FY2011 CO2 emissions by type of energy （t-CO2） t-CO2 100000 t-CO2 Light oil Gasoline 60000 Electricity 60000 40000 LPG 40000 20000 Bunker A 20000 Kerosene 0 07 08 09 10 2.00 80000 80000 1.50 1.00 0.50 0.00 0 07 11 ＣＯ２ emission factor/million yen Total emissions (t-CO2) 100000 FY 08 09 10 07 11 08 09 10 11 FY FY NDK only, FY2002 - FY2011 t-CO2 20000 CO2 emissions by type of energy（t-CO2） Light oil t-CO2 20000 15000 Gasoline 15000 10000 Electricit y LPG 10000 5000 Bunker A Total emissions(t-CO2) 1.00 0.50 0.00 0 02 03 04 05 06 07 08 09 10 11 CO2 emission factor/million yen 1.50 5000 0 2.00 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 FY FY FY Reference: environmental data, achievements in FY2007 - FY2011 and FY2012 target Amount of CO2 emissions (unit: tons-CO2) Company NDK Item Energy FY2008 16,909 1.2 15,565 2.1 21,480 1.2 1,684 1.6 10,152 3.1 42,302 4.0 FY2009 16,034 1.5 14,735 1.8 29,400 1.9 1,288 1.5 10,639 2.6 40,048 3.6 FY2010 16,193 1.8 14,808 1.5 23,384 1.6 1,364 1.4 12,947 2.6 46,400 3.6 FY2011 15,646 1.4 12,955 1.5 18,639 1.4 1,795 2.4 12,368 2.7 41,947 3.9 FY2012 target 14,891 1.7 12,825 1.4 18,443 1.4 1,705 2.3 12,059 2.6 41,527 3.9 FY2008 102,130 114,031 Total 216,161 m3/million yen 15.0 Furukawa NDK City water 183,689 Well water 118,581 Total 302,270 Japan m3/million yen 41.3 Hakodate NDK City water 67,089 Well water 0 m3/million yen 3.7 Niigata NDK City water 20,572 Well water 0 m3/million yen 19.9 ANC/NQM City water 183,814 Well water 0 m3/million yen 56.3 Overseas Suzhou NDK City water 829,000 Well water 0 0 m3/million yen 51.2 78.1 Power consumption (Sales companies, business sites and others）unit: kwh Company Item FY2010 FY2011 NDK Kansai 17,406 17,137 Japan NDK Chubu 13,898 11,449 NDK Chitose 68,354 68,585 NDK-A 537,520 512,425 Power NDK-I 19,408 18,877 consumption NDK-S 16,009 15,995 KWh Overseas NDK-HK 25,389 26,673 NDK-HK(Taipei) 38,073 37,065 NDK-E Scandinavia 2,940 2,520 NDK-SH 14,533 12,014 FY2009 155,909 103,386 259,295 25.8 152,763 108,953 261,716 31.5 64,065 0 4.1 18,218 0 20.8 172,146 0 41.9 769,000 0 68.3 FY2010 158,469 99,526 257,995 28.5 160,801 76,035 236,836 23.3 67,107 0 4.5 17,230 0 17.2 279,870 0 56.8 661,000 0 51.8 FY2011 147,824 113,406 261,230 23.0 155,471 73,773 229,244 25.6 56,111 0 4.1 19,636 0 26.5 238,939 0 51.5 755,800 0 70.5 FY2012 target 146,346 112,272 258,618 22.8 153,916 73,035 226,951 25.3 55,550 0 4.1 19,440 0 26.3 236,550 0 51.0 748,242 0 69.8 ton-CO2/million yen Furukawa NDk Japan Energy ton-CO2/million yen Hakodate NDK Energy ton-CO2/million yen Niigata NDK Energy ton-CO2/million yen ANC/NQM Overseas Energy ton-CO2/million yen Suzhou NDK Energy ton-CO2/million yen FY2007 16,021 1.0 14,210 1.3 24,912 0.9 2,605 1.5 9,696 2.0 48,405 3.3 Water use (unit: m3) Company NDK Item City water Well water FY2007 76,480 112,322 188,802 12.2 134,812 116,456 251,268 23.4 68,886 0 2.6 39,102 0 21.6 224,683 0 47.4 The NDK group, with its will and responsibility, will deploy continual environment preserving activities. Reference: environmental data, achievements in FY2007 - FY2011 and FY2012 target Emitted substances (unit: ton-CO 2) Company Item FY2007 FY2008 FY2009 FY2010 FY2011 NDK Discarded 30.4 6.4 0.0 0.0 0.0 0.0 Rycycled 357.0 347.3 251.3 226.0 247.6 245.1 Rycycle rate 92.2 98.2 100.0 100.0 100.0 100.0 245.1 Total(amount) 387.4 353.8 251.3 226.0 247.6 Furukawa Discarded 35.5 27.0 22.0 20.1 10.3 10.2 NDK Rycycled 754.5 722.1 696.6 538.9 560.5 554.9 Rycycle rate Japan Total(amount) 95.5 96.4 96.9 96.4 98.2 98.0 790.0 749.0 718.7 558.9 570.8 565.1 Hakodate Discarded 30.2 16.1 14.7 20.5 15.9 15.7 NDK Rycycled 27.1 20.1 18.0 15.2 15.6 15.4 Rycycle rate 47.3 55.6 55.1 42.6 50.5 49.5 57.3 36.2 32.7 35.7 31.5 31.1 Discarded 12.8 47.7 34.0 34.1 46.0 45.5 Rycycled 58.0 11.6 10.0 10.0 9.0 8.9 Rycycle rate 81.7 19.6 22.7 22.7 16.4 16.3 Total(amount) Niigata NDK Total(amount) 71.0 59.4 44.0 44.1 55.0 54.4 76.0 83.0 28.0 60.7 13.2 29.5 Rycycled 72.0 54.0 24.0 16.8 39.3 30.0 Rycycle rate 48.6 39.4 46.2 21.7 74.8 50.4 148.0 137.0 52.0 77.5 52.5 59.5 ANC/NQM Discarded Overseas FY2012 target Total(amount) Suzhou Discarded 549.0 626.6 495.3 488.5 500.3 450.0 NDK Rycycled 71.0 53.4 39.7 39.5 27.8 20.0 Rycycle rate 11.5 7.9 7.4 7.5 5.3 4.3 620.0 680.0 535.0 528.0 528.1 470.0 FY2012 target 2.85 Total(amount) PRTR（Pollutant Release (hydrogen fluoride) and Transfer Register) (Unit: ton) Company NDK Item FY2007 FY2008 FY2009 FY2010 FY2011 2.88 Total 4.43 3.54 3.07 1.52 to atomosphere 0.00 0.00 0.00 0.00 0.00 0.00 to public sewage 0.49 0.49 0.46 0.98 0.59 0.58 Transfer Total/million yen Furukawa NDK Total 3.05 2.60 0.54 6.02 5.95 0.00024 0.00029 0.00017 0.00025 0.00025 4.72 3.22 3.40 2.61 2.03 2.01 to atomosphere 2.60 1.60 2.00 1.10 0.89 0.88 to public sewage 1.00 1.10 1.10 0.85 0.80 0.79 Transfer Total/million yen Japan 3.94 0.00029 0.00 0.53 0.27 0.63 0.00 0.00 0.00044 0.00044 0.00041 0.00026 0.00023 0.00022 Hakodate Total 9.87 6.03 6.84 2.81 1.38 1.37 NDK to atomosphere 0.00 0.00 0.00 0.00 0.00 0.00 to public sewage 0.00 0.00 0.00 0.00 0.00 0.00 Transfer 0.0034 0.0055 0.0062 0.0061 0.0031 0.0030 Total/million yen 0.00037 0.00033 0.00043 0.00019 0.00010 0.00010 Niigata Total 4.13 2.35 1.42 1.33 1.65 1.63 NDK to atomosphere 0.10 0.10 0.06 0.06 0.06 0.06 to public sewage 0.13 0.08 0.04 0.07 0.07 0.07 Transfer 1.32 0.49 0.17 0.14 0.88 0.87 0.00230 0.00020 0.00160 0.00130 0.00220 0.00220 Total/million yen The NDK group, with its will and responsibility, will deploy continual environment preserving activities.