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Environmental Management
Sustainable Development Goals (SDGs) were adopted in September 2015 at the UN Sustainable Development Summit. Of the 17 goals aimed to be achieved by 2030, many are related to the environment. A company's business activities affect the planet 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 planet 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 FY2020

FY2020 Environmental burden flow
JTEKT quantitatively assesses overall resources and energy amounts used (INPUT) and amounts discharged into the environment (OUTPUT). In order to minimize the impact of our business activities to 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 7% of our raw material input is recycled materials, of which around 11% is discharged as materials of value, and we are promoting more effective utilization of resources through yield improvement.
Resources and energy input and emissions of substances of concern

*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 WasteExcluding PCB waste

*6 Charged recyclingA processing fee is paid in order to recycle.

*7 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 established the Council for Enhancement of Corporate Value chaired by the president to initiate improvement of environmental management. The council sets target values based on company policies, discusses and determines measures, and manages the progress thereof. To flexibly respond to issues relating to business activities, six specialized environmental subcommittees were established to work to achieve the goals defined in Environmental Challenge 2050, but to achieve carbon neutrality even earlier, from FY2021, the company-wide Carbon Neutral Strategy Dept. was set up directly under the president. Three new environmental subcommittees were established to implement specific measures for each initiative to accelerate JTEKT’s efforts to achieve carbon neutrality.
Organizational chart

Integration with the Council for Enhancement of Corporate Value

In June 2020, JTEKT discontinued the Global Environmental Conservation Committee and reorganized and integrated it with the Council for Enhancement of Corporate Value. Collaboration with the Corporate Planning Department through the Council for Enhancement of Corporate Value positions environmental activities as an important management issue as JTEKT works more actively as ever to resolve environmental issues such as climate change and water risks.

JTEKT Domestic Group Environmental
Coordinating Committee

JTEKT’s 20 domestic group companies share targets and promote group-wide activities to reduce CO2 emissions, reduce waste, and prevent environmental abnormalities.
Environmental Coordinating Committee meetings for the group companies are held three times a year. At the meeting in June 2020, the environmental officers of domestic group companies gathered to remotely review each company’s FY2019 environmental activities and planned activities for FY2020. In July 2020 and January 2021, the meetings were held by the environmental managers of each company to discuss the results of their activities and future efforts and to exchange opinions about the next Environmental Action Plan 2025, initiatives for achieving carbon neutrality, and improvement of each company’s environmental management level.
My SDGs
Yutaka Gears and Machinery Corp.
Safety and Facility Environment Office, Facility Environment Group
Water Environment Initiatives
At Yutaka Gears and Machinery Corp., we manufacture and distribute general industrial gears and machine tools. A large amount of clean water is used in the processes of cleaning processed products and heat treatment when manufacturing gear parts. As the world takes on the challenge to reduce water consumption, our group initiates the promotion of water environment initiatives and development of devices that reuse wastewater and recycle rainwater and water treated at wastewater treatment plants. We are working to develop downsized, chemical-free equipment to promote the reduction of waste and water consumption and the effective use of resources.

JTEKT Overseas Group Environmental Coordinating Committee

Global Safety & Environment Conference
In June 2020, JTEKT distributed materials and held web meetings with each regional headquarters (North America, Europe, ASEAN, China, India, South America), rolling out the mid-term environmental management plan and the total CO2 emission target for 2030. The meetings served as opportunities to mutually confirm that the JTEKT Group will unite to improve environmental performance and work together to achieve the Environmental Action Plan 2025, which is the next five-year target newly formulated to realize the Environmental Challenge 2050.
Regional Environmental Meeting
The regional headquarters gathered regional business entities to hold remote regional environmental meetings. In September 2020, the meeting was held as the Safety and Health Environment Meeting in the United States and since October 2020, monthly meetings have been held in Europe. The meetings are attended by the safety and environment manager of each region and regional corporation, and through reports about the environmental activities and issues of each local subsidiary and disclosure and sharing of improvement cases and JTEKT’s initiatives, we endeavored to raise mutual awareness of environmental issues among the business entities.
Web Meeting with Overseas Group
JTEKT holds regular web meetings to communicate more closely with overseas subsidiaries. By confiming the progress of each subsidiary' activities and exchanging opinions about problems faced and requests for JTEKT at the meetings, JTEKT endeavors to share the challenges faced for improving environmental performance. JTEKT will continue striving to establish smooth cooperation with its overseas affiliates.

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 each regulation requires.
  • *1: JTEKT's internal standards for effluent and atmospheric discharge are below 80 percent of regulatory requirements.

Legal compliance with environmental legislation

・In FY2020, there were no environmental abnormalities occurred at JTEKT.
・No environmental accidents occurred at JTEKT’s domestic and overseas group companies either.
・JTEKT was also not subjected to any fines or charges relating to environmental accidents or complaints, and no legal action was taken against JTEKT relating to environmental matters.

Workshops on environmental abnormalities and near misses

Kanto Plant (Hamura)

Based on the past case studies of environmental abnormalities and near misses*, JTEKT held workshops on environmental abnormalities and near misses in all of its plants from 2014 to November 2019. However, the workshops have been canceled since March 2020 to prevent the spread of COVID-19. JTEKT is considering holding them online in FY2021.

  • *: Incidents that had only a slight impact on the environment and could be handled within the premises where they occurred.
To collect information and roll it out even for cases that are even more minor than environmental near misses, JTEKT has established standards for quasi-environmental near misses, gathered information, and is working to prevent the occurrence of similar cases.

Environmental patrol by plant managers

Okazaki Plant

As part of our initiatives of Environment Month every June, plant managers of all plants conduct environmental patrols.
In FY2020, the patrols were carried out with a focus on grasping the daily management conditions of equipment and facilities with environmental risks.

Emergency drills

Kanto Plant (Sayama)

JTEKT performs regular emergency drills to prepare for the occurrence of various environmental accidents.
As an example of what was done in 2020, the Kanto Plant (Sayama) conducted a drill on abnormalities in exclusion devices.

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 FY2020, our audits 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. JTEKT also regularly holds new auditor training sessions that are extended to our domestic group companies. (Sessions were cancelled in FY2020 due to COVID-19.)

External audits

In October 2020, JTEKT was subjected to an ISO14001 surveillance audit in October 2020. The result was 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 nine cases identified as having room for improvement, all cases have been corrected. In the JTEKT Group, 20 domestic companies and 39 overseas companies have been certified. The one remaining company is scheduled to receive certification within the current fiscal year. Based on the ISO14001 standard, JTEKT will regularly undergo audits, take appropriate corrective actions for indicated matters, and strive to improve the environmental management level.

Environmental audits of JTEKT group

The JTEKT group has established the auditing system on a consolidated basis and has been conducting the environmental audits on group companies since FY2014. These audits focus on legal compliance activities aiming at preventing environmental issues and complaints. In FY2020, JTEKT audited one domestic group company. Audits of overseas group companies were postponed due to COVID-19.

Environmental education

Environmental awareness education

During Environment Month in June 2020, an environmental awareness training was provided for all employees through e-learning. The theme was “Corporate Environmental Activities and Effects on Business” and 8,388 employees completed the training.

Stakeholders’ engagement

Basic concept
JTEKT engages in communication activities using various means with our stakeholders, including customers, employees, local/international communities, business partners, and shareholders/investors.
Opinions and expectations from stakeholders obtained through communication are reflected in JTEKT’s environmental policies and initiatives as we further develop activities for the achievement of the targets set out in Environmental Challenge 2050 and the improvement of corporate social value.
Environmental stakeholders’ engagement results
Main activities

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

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, as well as status of understanding of water risks at each company through surveys. JTEKT added the management status of chemical substances as an investigation item in FY2020.
JTEKT has established a new JTEKT Environmental Award System in order to promote further improvement efforts by awarding suppliers with excellent environmental performance.
In FY2020, Sankei C and C Co., Ltd. was awarded for its distinguished activities.

Response to CDP*

JTEKT responded to the CDP-sponsored Climate Change and Water Security surveys, with a FY2020 rating of A- for climate change and A- for water security, which was one rank higher than in FY2019. We also position the CDP supply chain program as an important opportunity for generating dialogue with our customers.

  • *CDP: A non-governmental organization (NGO) managed by a British charity that operates a global information disclosure system for investors, companies, nations, regions, and cities to manage their own environmental impact

Environmental Accounting Report for FY2020

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 FY2020 were 1.33 billion yen in investments and 4.18 billion yen in expenses respectively, adding up to the total of 5.51 billion yen, a decrease of 23.5% compared to the previous fiscal year but exhibiting nearly equivalent effects.
Environmental conservation costs
(Unit : Million yen)
Economic benefits associated with environmental conservation measures
(Unit : Million yen)
Quantitative effects associated with environmental conservation measures
Cost and benefits of environmental conservation measures
  • * 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 alone (including a certain group companies working at JTEKT sites)
  • * Tallying period: FY2020 (April 2020 to March 2021)
FY2020 CO2 emissions from the entire 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.
FY2020 Result
*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 emissions by scope (unit: 1000t-CO2)
CO2 emissions by scope 3 category2(ratio)
Scope 3 CO2 emissions by category(FY2020) *1
★ Third party verification portion
*1 Calculated using the emission base unit in the guideline
*2 Calculated for the purchase volume of steel materials
*3 Calculated with consideration for working from home
*4 Calculated for steering, drive products, bearing products, and machine tools

Third party verification

In order to improve the reliability of our data, JTEKT has requested SGS Japan Inc. to verify our FY2020 results as a third party. The scope of the verification covered Scope 1 and Scope 2 emissions, water consumption, and waste emissions, and Scope 3 – Category 6 (business trips), Category 7 (employee commuting), and Category 11 (usage of sold products) of JTEKT production sites, domestic business sites of group companies, and some overseas group companies.
Verification Statement

Global environmental management

We are working to further enhance our environmental management for 20 group companies in Japan, and 39 overseas group companies.
Europe
13 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)
  • JTEKT AUTOMOTIVE MOROCCO, S.A.S. (Morocco)
Asia / Oceania
6 production companies
  • JTEKT(THAILAND)CO., LTD. (Thailand)
  • JTEKT AUTOMOTIVE(THAILAND)CO., LTD.(Thailand)
  • KOYO MANUFACTURING(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
20 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)
  • Yutaka Seimitsu Kogyo, Ltd. (Aichi)
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 BRASIL LTDA. (Brazil)
  • JTEKT AUTOMOTIVE ARGENTINA S.A. (Argentina)