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Environmental Management
Sustainable Development Goals (SDGs) were adopted in September 2015 at the UN Sustainable Development Summit. Many Of the 17 goals aimed to be achieved by 2030 are related to the environment. Company's business activities affect the global environment in various ways. Not only are companies required to comply with the environmental regulations of each country, but also set targets and policies autonomously and proactively, as well as promote initiatives for conserving the global environment throughout all business activities. JTEKT promotes initiatives by positioning environmental management as one of the major issues for the sustainable development of the planet.

Results for FY2018

FY2018 Environmental burden flow
JTEKT quantitatively assesses overall resource and energy amounts used (input) and amounts discharged into the environment (output). In order to minimize the impact of our business activities on global warming, JTEKT engages in activities to reduce energy with a focus on processes that have high energy consumption, such as casting, forging, heat treatment and machining. In regards to resources, around 6% of our raw material input is recycled materials, of which around 12% is discharged as materials of value, and we are promoting more effective utilization of resources through yield improvement.
Resource and energy input versus environmentally burdensome substance output: FY2018

*1:GJGiga-joule (heat quantity unit), G=109

*2:Heavy oil AAmong the three classes (A, B, C) of heavy oil, heavy oil A is the closest to kerosene and is used as fuel for boilers or heating.

*3:PRTR regulation“PRTR” is an abbreviation for Pollutant Release and Transfer Register, which is a system created by the government for reporting the amount of chemical substances released or transferred.

*4:CODChemical Oxygen Demand (water quality index)

*5:Recycling for a feeA processing fee is payed in order to recycle.

*6:Hazardous wasteJTEKT calculates the discharge of the waste categorized as “Special Control Industrial Waste” in Japan, and the waste stipulated as “hazardous waste” for each overseas country where it has operations. (Breakdown figures for waste/materials recycled at a charge)

Promotion structure

JTEKT has established a Global Environmental Conservation Com- mittee chaired by President and with the aim of implementing en- vironmental management. The Committee sets target values based on company policies, as well as discusses and determines measures, then manages the progress thereof. Currently, in order to flexibly respond to issues relating to business activities, six specialized environmental subcommittees have been established and are proactively working to achieve the goals defined in Envi- ronmental Challenge 2050.
Organizational chart

Domestic JTEKT Group
Environmental Coordinating Committee

The Environmental Coordinating Committee session is held three times a year jointly by 19 group companies in Japan to share the targets and promote activities for CO2 reduction, waste reduction, and environmental issue prevention. In April 2018, the Coordinating Committee session was held by the executives of domestic group companies in charge of environmental matters and discussed the status of each company's FY2017 environment initiatives and plans for FY2018. In July 2018 and January 2019, in addition to reporting and discussing our performance until now and future endeavors, the managers in charge of environments held study sessions relating to a preliminary examination of applications for environmental law, and improved the level of each company’s environmental management.

Overseas JTEKT Group
Environmental Coordinating Committee

Global Environmental Meeting
In June 2018, the Global Environmental Meeting was held, with attendance of 13 managers in charge of environments representing each regional headquarters (North America, Europe, ASEAN, China), as well as India and South America. The meeting was comprised of a discussion of how to roll out the next mid-term targets for Environmental Challenge 2050 and for 2020, in addition to the presentation made by the managers of each region summarizing their environmental initiatives and exchanging opinions. The meeting was an opportunity for the JTEKT group to unite as one in improving our environmental performance and mutually confirming our activities aiming at the realization of Environmental Challenge 2050.
Global Environmental Meeting
(JAPAN)
Overseas Region Environmental Meeting
Each regional headquarter held the Regional Environmental Meeting, held as the Safety and Hygiene Environment Meeting in China and the United States, by requiring the business entities to come together. The meetings were attended by the managers of each region in charge of safety and environment as well as by the person in charge from JTEKT Japan’s Safe Environment Promotion Department and comprised of reports on the environmental activities and challenges of each overseas subsidiary, rolling out of improvement cases, and factory tours, etc. And, it resulted in enhancing environmental awareness mutually of the business entities.
North America MESH meeting
(JASC: United States)
China EHS meeting (KWA: China)
MY CSR
Jon Crites
JNA(United States)
Striving for “All for One Earth”
At JNA, we believe that by being a good corporate citizen, we can achieve environmental sustainability. To achieve this goal, we investigated energy consumption and developed a plan to reduce carbon dioxide emissions. The key point is the introduction of new technology that enables energy control by reducing the amount of compressed air that consumes the most energy. JNA has also installed a new LED lighting system to reduce the amount of steam in the production process. We practice energy improvements in line with the JTEKT WAY and work hard every day “All for One Earth”.

Environmental accident prevention activities

To prevent environmental accidents, JTEKT prepared the Environment Risk Map covering major management points and is utilizing this in our daily inspections, etc. Moreover, we also require both our domestic and overseas group companies to conduct daily management in accordance with environment risk maps as part of efforts to prevent environmental accidents. In order to comply with environmental legislation, treaties and convention levels, we have set internal standards (*1) more stringently than regulations require.
*1: JTEKT's internal standards about effluent are below 80 percent of regulatory requirements.

Legal compliance with environmental legislation

・In FY2018, two water quality related environmental incidents occurred at JTEKT. Both incidents are attributed to on-site construction, and corrective actions have been taken such as reinforcing preconstruction inspections.
・No environmental accidents occurred at JTEKT’s domestic and overseas group companies.
・JTEKT was not subjected to any fines or charges relating to the environmental accidents or complaints, and no legal action was taken against JTEKT relating to the environmental matters.

Workshops on Environmental Issues and Near Misses

Workshop on Environmental Issues and Near Misses (Tokyo Plant)

Based on case studies of environmental issues and near misses that have occurred in the past*, JTEKT has held workshops on environmental issues and near misses in all ofits plants since FY2014 with the aim of preventing recurrence. From FY2017, in addition to recurrence prevention, we have added initiatives from the perspective of prevention. Through the study and execution of countermeasures assuming environmental issues and near misses based on a genchi genbutsu approach, the managers in charge of environments from each JTEKT plant are improving the management level. We will continue our activities in the future and promote initiatives aiming at the elimination of possible environmental issues and near misses.
*: Incidents that had only a slight impact on the environment and could be handled within the premises where they occurred.

Environmental patrol by Plant Managers

Environmental patrol (Toyohashi Plant)

As part of our initiatives of Environment Month every June, Plant Managers of each plant conduct environmental patrols.
In FY2018, in order to improve the management of equipment and secondary materials, we confirmed the appropriateness of the management conditions during operation and proper implementation of emergency procedures.

Emergency drills

Emergency drills (Okazaki Plant)

JTEKT performs regular emergency drills to prepare for the occurrence of various environmental accidents.
In FY2018, one such drill was for a chemical spill at the Okazaki Plant.

Environmental audits

Internal audits

JTEKT conducts internal audits annually using the audit check sheet to make sure of the operational status of our environmental management system and compliance with legislation. In FY2018, our audit focused on items in the audit check sheet with higher priority. With regard to the law, we performed pre-inspections and were able to do proper auditing. We also held a training program for new auditors and registered 87 new qualified auditors including 14 from the domestic group companies in FY2018.

External audits

ISO14001 external audit

In April 2019, JTEKT was subjected to an ISO14001 surveillance audit. Results were that there was zero case of non-conformity, and confirmed that our environmental management system was consistent with the standard requirements and were effectively implemented. In regards to the eight cases identified as having room for improvement, the departments in charge are taking the necessary actions. In the JTEKT Group, all 19 domestic companies and all 39 overseas companies have been certified, which means that all companies in the scope of the consolidated environment management system have obtained certification. Based on the ISO14001 standard, JTEKT regularly undergoes audits and takes appropriate corrective actions for indicated matters.

Environmental audits of overseas group companies

The JTEKT group has established the auditing system on a consolidated basis and has been conducting the environmental audits on overseas group companies since FY2014. These audits focus on legal compliance activities aiming at preventing environmental issues and complaints. In FY2018, with the aim of accomplishing our Environmental Challenge 2050, we focused on the improvement of environmental performance and conducted the audits in four North American sites, three Chinese sites, and three ASEAN sites.
Environmental audits
(JASC : United States)
Environmental audits (KWA : China)
Environmental education

Environmental awareness education

During Environment Month in June 2018, the environmental awareness training was held for all employees through e-learning. In FY2018, the theme was “Think & Act – My Eco Activities” and 9,169 employees completed the training.

Holding environmental lectures

JTEKT held environmental lectures in August 2018 and February 2019. In August 2018, 359 employees attended the lecture by Konica Minolta, Inc. Group Executive Officer, Mr. Takenori Takahashi, on the theme of “Environmental management from the perspective of SDGs”. In February 2019, 282 employees attended the lecture about biodiversity in the forest by Ms. Toko Suzaki of the Toyota Yahagi River Institute, on the theme of “Understanding, protecting, and using the forest”.
Environmental management from
the perspective of SDGs
(August 2018)
Understanding, protecting,
and using the forest
(February 2019)
Communication

Community discussions

All JTEKT plants regularly invite local residents and government members for community discussions. This is an opportunity to introduce JTEKT's environmental initiatives, have participants take a plant tour and exchange opinions in order to facilitate better communication with the local community.

Partnerships with suppliers

Environmental Award
Left: Aoyama Seisakusho Co., Ltd.
Center: Tetsuo Agata, President, JTEKT Corporation
Right: Matsuo Industries

To promote environmental efforts in the supply chain, since FY2018, JTEKT has been investigating each supplier’s development status of the environmental management system and targets and results of environmental performance, and in response to rising water risks, our suppliers’ grasp of the water risk situation as well.
In addition to the results of these efforts, JTEKT established a new environmental award system in order to promote further improvement efforts by awarding suppliers with excellent environmental performance. Two companies were awarded at the procurement policy meeting in April 2019.

Environmental accounting results for FY2018

JTEKT compiles environmental accounts of the economic benefits associated with environmental conservation costs, environmental conservation effects, and environmental conservation measures in compliance with the Environmental Accounting Guidelines issued by the Ministry of the Environment.
Environmental conservation costs for FY2018 were 2.32 billion yen in investments and 4.76 billion yen in expenses respectively, adding up to the total of 7.08 billion yen, nearly equivalent to the previous fiscal year. In order to meet our targets defined in Environmental Action Plan FY2020, costs of resource recycling increased by 170 million yen compared with the previous year.
Environmental conservation costs
(Million yen)
* Includes PCB waste processing cost
Economic benefit of environmental conservation activities
(Million yen)
Economic benefit of environmental conservation activities
Cost and benefits of environmental conservation activities

* We have not calculated the economic benefits brought about by environmental conservation activities such as increased product value, avoiding environmental risk and improving corporate image.
We have only calculated items which can be accurately identified such as energy-savings benefits, etc.

* Depreciation costs are not included. Expenses for multiple purposes are proportionately distributed.

* Scope of calculation: JTEKT non-consolidated (including a certain group companies working at JTEKT sites)

* Calculated period: FY2018 (April 2018 to March 2019)

FY2018 CO2 emission volume
from the overall supply chain
Based on guidelines established by the Ministry of the Environment and Ministry of Economy, Trade and Industry (*), JTEKT calculates the amount of CO2 emitted through its business activities including its supply chain, as well as through the use and disposal of products sold, and endeavor to reduce them, *Guidelines established by the Ministry of the Environment and Ministry of Economy, Trade and Industry General Guidelines on Supply Chain GHG Emission Accounting.
FY 2018 Results
*Scope:
The calculation scope for greenhouse gas emissions stipulated by the GHG Protocol Initiative which formulates the global guidelines for calculating and reporting greenhouse gas emissions.
CO2 emission volume by scope(unit: 1000t-CO2)
CO2 emission volume by scope 3 category(ratio)
Scope 3 CO2 emission volume by category(FY2018)
★Third party verification
*1 Calculated based on steel purchase volume
*2 Calculated based on steering, driveline products and machine tools
*3 Calculated using emissions basic unit stipulated in the guideline

Third party verification

In order to improve the reliability of CO2 emissions volume data, we requested SGS Japan Inc. to verify our FY2018 results as a third party. The verification scope covered JTEKT production sites and all domestic group companies' sites as well as some overseas group companies Scope1&2 emissions, water consumption and Scope3 emissions - Category 6 (business travel), Category 7 (employee commuting) and Category 11 (use of sold products).
Certificate of verification

Global environmental management

We are working to further enhance our environmental management for 19 group companies in Japan, and 38 overseas group companies.
Europe
12 production companies
  • JTEKT AUTOMOTIVE UK LTD.(England)
  • KOYO BEARINGS(EUROPE)LTD.(England)
  • JTEKT TORSEN EUROPE S.A.(Belgium)
  • KOYO BEARINGS DEUTSCHLAND GMBH(Germany)
  • JTEKT HPI S.A.S.(France)
  • JTEKT AUTOMOTIVE LYON S.A.S.(France)
  • JTEKT AUTOMOTIVE DIJON SAINT-ETIENNE S.A.S.
    (France)
  • KOYO BEARINGS VIERZON MAROMME SAS (France)
  • JTEKT AUTOMOTIVE CZECH PLZEN, S.R.O.(Czech Republic)
  • JTEKT AUTOMOTIVE CZECH PARDUBICE, S.R.O.(Czech Republic)
  • KOYO BEARINGS CESKA REPUBLIKA S.R.O.(Czech Republic)
  • KOYO ROMANIA S.A.(Romania)
Asia / Oceania
6 production companies
  • JTEKT(THAILAND)CO.,LTD.(Thailand)
  • JTEKT AUTOMOTIVE(THAILAND)CO.,LTD.(Thailand)
  • JTEKT PHILIPPINES CORPORATION(Philippines)
  • JTEKT AUTOMOTIVE(MALAYSIA)SDN. BHD.(Malaysia)
  • PT.JTEKT INDONESIA(Indonesia)
  • KOYO JICO KOREA CO.,LTD.(Korea)
India
2 production companies
  • JTEKT INDIA LTD.(India)
  • KOYO BEARINGS INDIA PVT.LTD.(India)
China
9 production companies
  • JTEKT AUTOMOTIVE (TIANJIN) CO., LTD.
  • JTEKT STEERING SYSTEMS (XIAMEN) CO., LTD.
  • JTEKT DALIAN INNOVATIVE AUTOMOTIVE CO., LTD.
  • WUXI KOYO BEARING CO., LTD.
  • DALIAN KOYO WAZHOU AUTOMOTIVE BEARING CO., LTD.
  • KOYO BEARING DALIAN CO., LTD.
  • KOYO LIOHO (FOSHAN) AUTOMOTIVE PARTS CO., LTD.
  • KOYO AUTOMOTIVE PARTS (WUXI) CO., LTD.
  • KOYO NEEDLE BEARINGS (WUXI) CO., LTD.
Japan
13 JTEKT bases
19 domestic group production companies
  • Koyo Machine Industries Co., Ltd. (Osaka)
  • Toyooki Kogyo Co., Ltd. (Aichi)
  • Koyo Sealing Techno Co., Ltd. (Tokushima)
  • CNK Co., Ltd. (Aichi)
  • Koyo Thermo Systems Co., Ltd. (Nara)
  • Koyo Electronics Industries Co., Ltd. (Tokyo)
  • Daibea Co., Ltd. (Osaka)
  • Utsunomiya Kiki Co., Ltd. (Tochigi)
  • HOUKO Co., Ltd. (Aichi)
  • Toyoda Van Moppes Ltd. (Aichi)
  • Koyometaltec Co., Ltd. (Mie)
  • KJK Co., Ltd. (Tokushima)
  • NIPPON NEEDLE ROLLER MFG. Co., Ltd. (Mie)
  • Koyo Heat Treatment Co., Ltd. (Osaka)
  • FORMICS Co., Ltd. (Aichi)
  • Taiho Co., Ltd. (Kagawa)
  • Fuji Kiko Co., Ltd. (Shizuoka)
  • Tokio Seiko Corporation (Tokyo)
  • Yamato Seiko Co.,Ltd. (Nara)
North America / South America
9 production companies
  • JTEKT AUTOMOTIVE TENNESSEE-VONORE, LLC
    (U.S.A.)
  • JTEKT AUTOMOTIVE TENNESSEE-MORRISTOWN, INC.
    (U.S.A.)
  • JTEKT AUTOMOTIVE TEXAS, L.P. (U.S.A.)
  • JTEKT AUTOMOTIVE SOUTH CAROLINA, INC. (U.S.A.)
  • KOYO BEARINGS NORTH AMERICA LLC (U.S.A.)
  • KOYO BEARINGS CANADA INC. (Canada)
  • JTEKT AUTOMOTIVE MEXICO,S.A de C.V (Mexico)
  • JTEKT AUTOMOTIVA BRASIL LTDA. (Brazil)
  • JTEKT AUTOMOTIVE ARGENTINA S.A.(Argentina)