JTEKT CORPORATION｜Establishment of Low-carbon Society

Establishment of
a Low-carbon Society

In November 2016, the Paris Agreement became effective as the new international rules for implementation of global warming countermeasures. The common global long-term target of the Paris Agreement is to suppress the increase in the global average temperature to well below 2 degrees Celsius compared with the temperature level of pre-industrial revolution and to expect the participants to endeavor to limit the temperature increase to 1.5 degrees Celsius compared with the temperature level of pre-industrial revolution. The Agreement also clearly states its goal of achieving net zero emissions of global warning gas by the second half of this century. Companies are also being required to step up their initiatives to reduce CO₂, both directly and indirectly. JTEKT promotes energy-saving, improvement of logistics efficiency and usage of renewable energy in all processes from product design to delivery in all of its plants, both domestic and overseas, across the entire JTEKT group.

FY2018 Performance Results

CO2 emission volume in production(non-consolidated) 131.1 t/100 million yen （16.0% decrease）

CO2 emission volume in production(global) 150.3 t/100 million yen （12.8% decrease）

CO2 emission volume in logistics 1.82 t/100 million yen （18.6% decrease）

Energy volume from renewable energy 10,576 kW (Cumulative)

TOPIC

Working towards setting the total CO₂ emission target volume for 2030

To achieve “minimization” of CO₂ emissions set forth in the JTEKT Environmental Challenge 2050, JTEKT will set mid-to-long-term targets for 2030 as an intermediate target.

●Concept of the total emissions target for 2030

The target is consistent with the so-called “two-degree target” which was agreed upon at COP21 in Paris which aims to reduce the temperature rise by 2 degrees Celsius or less compared to the temperature level of the pre-industrial revolution.

●Target value

JTEKT has set a global target of 26% reduction compared to FY2013.
In Japan, we will work to reduce energy consumption through innovations in production technology and daily improvements at plants, aiming for a reduction of 35% and more compared to FY2013.

●Scenario analysis on climate change

In setting the total CO₂ emissions target for 2030, we will use the TCFD^※ climate scenario and analysis framework to evaluate climate-related risks and opportunities to set mid-to-long-term targets.

*TCFD: Task Force on Climate-related Financial Disclosures
The climate change scenario of the TCFD established by the Financial Stability Board of Japan is used to review management strategy and risk management and request impact disclosure on financial affairs based on the evaluation results of climate-related risks to and opportunities for the company.

JTEKT non-consolidated total CO₂ emission volume (actual conversion factor)

Total global CO₂ emission volume (actual conversion factor)

[Conversion factor used to calculate CO₂ emission volume] In the management of the CO₂ emission volume base unit, the conversion factor is fixed until 2020 so that the company’s improvement effect can be evaluated. For management of the total emission volume from 2021 onward, calculations are made using the actual conversion factor (market-based) for each purchased power company per fiscal year to better represent the actual CO₂ emission volume.

Activities report

Reduction of CO₂ emission volume in production

●Non-consolidated

JTEKT sets the target of reducing CO₂ emission base unit by 15% compared to the level of FY2008 by FY2020 and engages in activities to achieve this. In FY2018, in spite of the increase by 2% in production volume compared to the previous year, CO₂ emissions were reduced by 4% and the CO₂ emission base unit was reduced by 16.0% compared to FY2008.
Additionally, JTEKT is rated as the highest S class in the Business Classification Evaluation System based on the regular report of the Act on the Rational Use of Energy (hereinafter referred to as the Energy Saving Act).

CO₂ emission volume: 217,395t-CO₂

CO₂ emission volume per unit of in-house production: 131.1 t/100 million yen (reduced by 16.0%)

Transition of total and per base unit of CO₂ emission volume in production

CO₂ emission volume

CO₂ emissions per base unit

●Global

JTEKT is working to reduce CO₂ emission volume at all JTEKT group companies in Japan and oversees. The CO₂ emission base unit for FY2018 was less by 12.8% than that of the FY2012 level. And, it means that we met our FY2018 target.

CO₂ emission volume per unit of in-house production: 150.3 t/100 million yen 　（12.8% decrease）

Transition of total and per base unit of CO₂ emission volume (global)

CO₂ emission volume

CO₂ emissions per base unit

Initiatives for realizing Environmental Challenge 2050

With the aim of achieving targets in accordance with Environmental Challenge 2050, JTEKT is promoting the various energy-saving countermeasures based on the Environmental Action Plan 2020.

1. Inactivity during non-operation

By the last fiscal year, JTEKT has completed the environmental improvement of “energy visualization” to build awareness of energy consumption in the main production lines at all plants. As a result, JTEKT has grasped the amount of standby power consumed while equipment is not in operation and is promoting energy saving activities at the production site level at all plants.

2. Higher efficiency of power equipment

In FY2018, JTEKT reduced 555 t-CO₂ through improvements including installation of inverters on pumps, renewal to high efficiency air conditioners, and improvement with pulsed air blow.

Major activities

Domestic plant: Okazaki Plant

Improved efficiency of the aluminum melting and holding furnace

In the past, the timing in which the materials were fed into the furnace was entrusted to the experience of the operator. A delay in feeding caused the melting burner to run empty, resulting in a loss of energy. Then, our energy-saving support system “MiELDieCAST” was installed. Visualization of the operating status has made the type of material and timing for feeding evident, leading to the efficiency of the melting burner.

main measures

Energy visualization / award system

JTEKT has been promoting the development of an energy visualization environment from 2016 to 2017. Activities focusing on equipment upgrades have reached a limit, so from now, it will be important to unify and ambitiously accelerate various on-site improvement activities. In FY2018, JTEKT held the first company-wide energy visualization improvement initiative in which the three lines that excelled in their efforts were commended by the president. In FY2019, JTEKT will continue to implement visualization improvement activities centered on on-site GL.

Message from the award recipient

Yasunori Takemoto Production Section 3, Manufacturing Dept., Kameyama Plant, Bearings Business Unit

I am very honored to receive this award. Line 12 which I worked on has been in operation for 30 years, but I made improvements on it with a strong belief that it can keep on shining. Armed with this achievement, I will work to improve other lines.

Energy-saving diagnosis

For the purpose of creating new energy-saving items and developing human resources who can conduct energy-saving diagnoses, energy-saving diagnoses were carried out in FY2018 with the cooperation of Panasonic Environmental Systems & Engineering and Hitachi Industrial Equipment Systems at three plants in Nara, Kameyama, and Tadomisaki. Fiscal 2019 will be a year of enabling independence of the in-house diagnostic team. With the support of Toyota Motor, JTEKT will perform diagnoses of the three plants in Hanazono, Nara, and Okazaki and domestic group companies. Diagnostic engineers will also be assigned, skills maps will be used to identify weaknesses and challenges, and OJT will be used for training at the diagnosis sites.

Installation of renewable energy

In 2018, the three JTEKT group plants in Wuxi, China, WKB, KNBW, and KAW, respectively installed 612 kW, 1426.8 kW, and 1,001 kW solar power generation systems, and the domestic group companies, Koyo Machine Industries and HOUKO, respectively installed 326 kW and 200 kW solar power generation systems. These systems are expected to reduce annual CO₂ emissions by 2,460 t. Additionally, JTEKT has independently introduced 698 kW of renewable energy so far for a JTEKT group total of 10,576 kW.

Solar power generation (WKB：China)

Main measures

Domestic group company: Koyo Machine Industries Co., Ltd.

Installation of solar power generation

JTEKT’s domestic group company, Koyo Machine Industries Co., Ltd., installed a 326 kW solar power generation system at the Yuzaki Plant. Adding to the FY2012 installation of a 100 kW solar power generation system at the Yao Plant using a full amount purchase with the feed-in tariff (FIT), the total is now 426 kW. As a result, 2% of the total power consumption of Koyo Machine Industries Co., Ltd. is expected to be covered by renewable energy. JTEKT will continue to work on the introduction of renewable energy with a low environmental load to create factories in harmony with nature.

Solar power generation (Koyo Machine Industries Co., Ltd. Yuzaki Plant)

Main measures

Overseas group company: KLF (China)

Introduction of Karakuri

KLF has set a goal of reducing CO₂ emissions by 6% annually in order to contribute to the establishment of a customer-friendly supply chain. This time, KLF introduced a “karakuri mechanism” in the transport of inner shaft polishing of the hub unit to reduce energy consumption. Conventionally, transfers were performed using a great number of power sources such as motors and cylinders. However, using power not only increases energy consumption but also affects safety and the amount of repair work in the event of a malfunction. The “karakuri mechanism” is a non-powered transfer gimmick that uses slopes and weights to achieve automatic transfer without the use of power, aside from one motor and five sensors. As a result, 42 motors, 69 cylinders, and 12 sensors were eliminated, and electrical consumption dropped to 48,000 kW/year, accounting for 80% of electrical consumption before improvement, and the annual CO₂ emission volume was reduced by 35 t.

MY　CSR

Back row: Shoumin Zhang, Zuoyun Chen, Hui Yang, Fei Fan, Wubin Gao Front row: Linsheng Huang, Xiaogang Jiang, Deguo Chen, Tian Luo, Cheng Xiao (JCC: China)

*From left

Making everything possible by working on improvement together

Karakuri was a completely new project for us and a very difficult project as we had very little practical experience and had to learn during the process. Each of us constantly faced difficulties but constantly grew, and now everyone is happy to be sharing the success. To take on a big challenge, we must all work together with confidence, and these improvement activities have presented us the priceless opportunities for us to move forward. We will continue to use karakuri to make further improvements in the fields of safety, quality, and productivity with the aim of reducing difficult tasks and burdens on employees. We hope that team members can further develop as karakuri craftworkers.

Initiative to reduce CO₂ emission volume through production engineering innovations

●Purpose/Aim

JTEKT will work to reduce CO₂ emissions through production technology innovations to achieve the FY2020 CO₂ reduction target (1/2 of the 2001 level).

●Activity guideline

While improving productivity and energy per base unit (CO₂), we will work to reduce CO₂ emissions for all production equipment investments based on our activity guideline.

●Activity theme

1) Innovation theme for production technology development
2) New equipment investment of inserting CO₂ reduction items
[Newly added up 30%, remodeled up 15%]
3) 11 major facilities* CO₂ reduction efforts
*Warm forging, hot forging, continuous furnace, continuous immersion furnace, batch furnace, die casting, 5 bearing processing facilities

●Activities

1) Reduction of processing energy through manufacturing innovations
・ Reduction of processing equipment through ultra-precision casting and forging and heat treatment processes
・ Reduction of the number of equipment through high-speed processing and complex processing
2) Insertion of energy-saving items at the planning stage
・ Checking for energy-saving with the Eco Sheet and promoting energy-saving investments
・ Adopting equipment downsizing, power regeneration, high efficiency equipment, airlessness, etc.

New production line for automotive parts

New production line for bearings

Case 1) Improvement of the manufacturing method

Process reduction and energy saving by precision aluminum casting
① Equalizing accuracy of the casting temperature for the hybrid melting and holding furnace Melting and holding furnace: Developed in 2015; with tube burner in 2018

Furnace size: Area 6.0 m2 x Height 1.8 m (conventional size larger by 40%)

② Mold temperature control Surface cooling + decompression cooling system

Number of cutting processes: 7 → 5
Achieved a 50% energy saving ratio compared to conventional results

Case 2) Development of energy saving equipment

Energy saving by a small cup washing apparatus designed and produced in-house
Washing apparatus: Developed in 2014; reduced energy loss and became fully electric in 2018

Equipment size: Area 1.5 m2 x Height 1.5 m (conventional size larger by 50%)
Achieved a 30% energy saving ratio compared to conventional results

Initiatives for energy visualization

In FY 2018, the introduction of fuel-efficient trucks and guidance for eco-drivers to use dashboard cameras and digital tachometers led to the improvement of the CO₂ emission base unit through cooperation with logistics companies. By expanding use of the JR train (modal shift) and improving loading ratio and efficiency, the CO₂ emission base unit was 1.82 t/100 million yen, a reduction of about 5% compared to the previous year. In FY2019, JTEKT will endeavor to reduce CO₂ emission volume by continuing to promote expanded use of the JR train (modal shift), replacement of regular trucks with f full-loaded trailers, and use of electric forklifts.

●Modal shift

A shift from transporting goods by large trucks, etc. to transportation by rail or sea.

Emissions volume per sales: 1.82 t/100 million yen
(reduction by approx. 8% compared to the previous year)

Transition of total and per base unit CO₂ emissions in logistics

Total CO₂ emissions

CO₂ emissions per base unit

Promotion of modal shift

■FY2018

① CO₂ emissions were reduced by 600 t/year by reflecting improvements in truck fuel economy and enforcement of eco-driving in the base unit and changing truck transport to JR train from the Chubu area plants to the Kyushu area.

JR train use expansion situation

② CO₂ emissions were reduced by 10 t/year by promoting use of battery-drive fork lifts.

Company-wide engine → number of battery-power lifts introduced

■FY2019

① We will consider expanded use of the JR train, full-loaded trailers, and ships.

Safety and environmental measures meeting

JTEKT exchanged opinions with transporters at the four logistics sites in Kanto, Chubu, Kansai, and Hamamatsu launched in FY2018 regarding thorough oil leak inspections, attention to late night and early morning cargo handling noises, and more. At the meeting, JTEKT requested eco-driving guidance and learning cooperation by drivers with the use of dashboard cameras and digital tachometers to continue CO₂ reduction.