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.

Environmental Action Plan 2025/FY2022 Activity Result

Promotion structure

JTEKT has established a structure to promote environmental management centered on the "JTEKT Environmental Committee", which is chaired by the president. The "JTEKT Environmental Committee" meets twice a year to set target values based on company policy, as well as to deliberate and determine measures and manage progress. The results of deliberations by the Committee are reported and deliberated at the "Council for Enhancement of Corporate Value", which is attended by all directors, including outside directors, and when budgetary measures are required for countermeasures, they are brought up for discussion to the the Senior Executive Officer Meeting or the Board of Directors, and following discussion by management,they are reflected in management strategies.
Furthermore, subcommittees of the "JTEKT Environmental Committee" have been established, where practical studies and assessments in various fields are conducted, addressing climate change including the reduction of Scope 3 emissions in energy conservation, resource recycling, production engineering innovation, energy infrastructure, logistics, technology and research, and value chains.
As for the system at plant level, each plant has Plant Environmental Conservation Committee chaired by the plant manager, which monitors CO2 emissions, waste emissions, water consumption, etc. at a committee meeting in the following month. JTEKT also has established the Global JTEKT Group Environmental Coordinating Committee to implement groupwide environmental initiatives. This committee reviews actions by individual domestic and overseas Group companies, discusses annual action plans, and exchanges information and opinions relating to environmental management. Furthermore, in 2021, JTEKT established the Carbon Neutral Strategy Department under the direct authority of the president, and it is facilitating communication among business divisions.
These initiatives are periodically reported to the "Council for Enhancement of Corporate Value", a company-wide registered meeting with members of the Board of Directors including outside directors, and are subject to oversight by the Council.

JTEKT Group Environmental Coordinating Committee in Japan

JTEKT's 17 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 April 2022, the environmental officers of domestic group companies gathered to remotely review each company's FY2021 environmental activities and planned activities for FY2022. In July 2022 and January 2023, 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

JTEKT ELECTRONICS CORPORATION Safety and Environment Committee

"Carbon Neutrality Initiative"

Our company manufactures and sells automotive equipment, electric control equipment, FA control systems, and video information equipment. A lot of electric power (energy) is consumed in the design and manufacturing processes of each equipment. As the world calls for SDGs, the JTEKT group is also taking up concrete measures against climate change (i.e., carbon neutrality). The Environmental Committee at our company plays a central role in the promotion of carbon neutrality initiatives and works to develop energy-saving products and install solar power systems using power-saving devices and natural energy.
We will continue to work on CO2 reduction through energy-saving developments and expansion of solar power generation facilities.

Overseas JTEKT Group Environmental Coordinating Committee

Global Safety & Environment Conference

In June 2022, JTEKT held a web meeting with regional headquarters (North America, Europe, ASEAN, China, India, South America), to confirm our Medium-Term Management Plan in the environmental field, our initiative policies, and the status of our initiatives to achieve the total CO2 emissions target by 2030. And thus, we mutually confirmed that the JTEKT Group will unite to improve environmental performance and work together to achieve the "Environmental Action Plan 2025", which was formulated to realize the Environmental Challenge 2050.

Overseas Regional Environmental Meeting

The regional headquarters gathered regional business entities to hold remote regional environmental meetings. In 2022, the Safety and Health Meeting was held in China in December, the Safety and Health Environment Meeting was held in the United States in October. It has also been held as a regular monthly meeting since October 2020 in Europe and January 2023 in ASEAN (Thailand). 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.

Environmental accident prevention activities

To prevent environmental incidents, JTEKT prepares an" 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 the"environment risk map" as part of efforts to prevent environmental incidents. In order to comply with environmental legislation, treaties and convention levels, we have set internal standards (*) more stringently than each regulation requires.

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

Legal compliance with environmental legislation

• In FY2022, there were no environmental abnormalities occurred at JTEKT.
• There were no fines or charges related to Environmental accidents or complaints, nor were there any lawsuits related to the environment.
• JTEKT has been implementing a focused confirmation of omission of facility notifications by the company-wide secretariat since FY2021, and the confirmation of all business sites except Tokushima has been completed. Confirmation at all of business sites will be completed within FY2023.

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.

Emergency drills

JTEKT performs regular emergency drills to prepare for the occurrence of various environmental incidents. As an example of what was done in 2022, the Hamura Plant conducted a drill on abnormalities with its cogeneration system.

Wastewater treatment plant management level improvement WG

A working group was newly established in FY2022 to improve management levels. The meetings were held twice this fiscal year, in November and March, to identify problems with operators at each business site and discuss and share solutions.

Environmental education

Environmental awareness education

During Environment Month in June 2022, an environmental awareness training was provided for all employees through e-learning. In FY2022, about 160 participants took the course on the theme of "Current Status and Challenges of Japan's Energy Policy Toward Carbon Neutrality."

Education for affiliated companies

JTEKT aims to achieve carbon neutrality for all products, including those of its suppliers, by 2050. In FY2022, in addition to sharing examples of improvements made by JTEKT and its suppliers, JTEKT held a tour of the JTEKT Hanazono Plant and invited major suppliers to participate and learn about energy-saving initiatives together.

Main activities

Community gathering

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 initiatives with its supply chain, since FY2018, sicne FY2018, in addition to the surbey of each supplier's environmental management system development status and environmental performance targets and performance, JTEKT has been investigating their understanding status of water risks with a questionnaire, and in FY2022, JTEKT added a survey on initiatives related to the Plastic Resource Circulation Promotion Act (enacted in April 2022).
JTEKT has established "JTEKT Environmental Award System" in order to promote further improvement efforts by awarding suppliers with excellent environmental performance.
In FY2022, we honored Mitsuboshi Corporation, Asahi Forge Corporation, Yokota Corporation and Showa Seiko Corporation for their outstanding initiatives.

Initiatives with local organizations

JTEKT has been collaborating with the Nishimikawa Bird Club to develop nesting sites for little terns on the premises of the Tadomisaki Plant since 2015. Receiving advice on site maintenance, ways to attract little terns, and measures to protect chicks from birds of prey, we also host bird watching events every spring.

CO2 emissions throughout the supply chain

Based on the guidelines* of the Ministry of the Environment and the Ministry of Economy, Trade and Industry, we calculate CO2 emissions associated with our business activities, including the supply chain, and the use and disposal of sold products, and are working to reduce them.

* Guidelines of the Ministry of the Environment and the Ministry of Economy, Trade and Industry: Guidelines for calculating greenhouse gas emissions throughout the supply chain

FY2022 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.

Scope 3 CO2 emissions by category (FY2022) *1

★ Third party verification portion
*1 Calculated using the emission base unit in the guideline
*2 Calculated for the purchase volume of raw materials and emission volume of suppliers in Japan
*3 Calculated for steering, drive products, bearing products, and machine tools

CO2 conversion factor used to calculate CO2 emissions
For electric power for both Japan and overseas, emission factors by each electric power company are used.
For items other than electric power, the emission factors of the Keidanren (Japan Business Federation) are used in Japan, and the official published factors of each region are used overseas.

Global Environmental Management

We are working to further enhance our environmental management for 17 group companies in Japan, and 31 overseas group companies.

Business sites compliant with ISO14001 certification