Nitto Group Report 2018

Nitto Group Report 201815Environmental ManagementESG Issue 2At the Nitto Group, as a part of the drive to integrate our management objectives with our environmental activities, environmental goals are set not only for the Group, but also for each division, and steady efforts are being made to achieve them. We have established an environmental fund to purchase state-of-the-art equipment and develop new technologies – something that had until now been difcult under the previous investment criteria. In scal 2017, we introduced high-efciency solvent recovery equipment and treatment equipment for exhaust air containing toluene to the Toyohashi Plant and an advanced water purication system to the Shiga Plant, thereby reinforcing our environmental activities. We are also conducting a series of demonstrations of new technologies and products that make use of Nitto products, including cyclical utilization of water and photocatalytic air purication.Climate Change CountermeasuresTwo of the Nitto Group’s key platforms for tackling climate change are reduction of CO2 emissions and reduced use of hydrochlorouorocarbons (HCFCs).The amount of CO2 emissions by the Nitto Group depends on how much energy is used at production processes and how much waste and solvents are combusted. We thus came up with an energy-conservation strategy that includes introduction of renewable energy and co-generation systems, with the result that our CO2 emissions in scal 2017 exhibited a downward trend to amount to 829,868 tons.Pursuant to the Montreal Protocol, the Nitto Group began abolishing equipment using HCFCs and has successfully scrapped approximately 10% of such equipment over the past two years. Our goal is to abolish all such equipment in Japan, Taiwan, the U.S., and Europe by scal 2020 and in other regions by scal 2030. At the same time, according to the Kigali Amendment, we preferentially purchase equipment using refrigerants with low global warming potential.• Mid- and Long-Term Environmental PlanTargetMid-termLong-termCO2 emissions805,000 tons/year (Fiscal 2019)730,000 tons/year (Fiscal 2025)Atmospheric toluene emissions (non-consolidated)200 tons/year (Fiscal 2020)—Waste reduction3% reduction in per unit production (vs. the previous year)21% reduction in per unit production (scal 2025 levels vs. scal 2015 levels)Resource Depletion CountermeasuresIn scal 2018, the Nitto Group embarked on a new initiative to reduce waste by 21% versus scal 2015 (target: 3% reduction per material input from the previous year) by scal 2025 by using the 3R (Reduce, Reuse, and Recycle) approach.We also take note of the economic effects of Material Flow Cost Accounting (MFCA)* and promote efcient use of resources by proactively recycling waste plastics, organic solvents, and chemicals for production.*MFCA: An environmental accounting method that monitors resource and energy loss from the production process in order to visualize wasteWater Crisis CountermeasuresWater is a vital resource for our business activities. At production processes where large amounts of water are used, we reduce such amounts by using our membrane products to recycle water. We have designated our Shiga Plant as a “recycling-oriented green plant” with a plan to increase the water recycling ratio from 50% to 90% within the next ve years.Decreased Biodiversity Countermeasures (Hazardous Chemical Substance Countermeasures)In order to minimize any biological impact that our business activities might have, we are working to reduce atmospheric emissions of chemical substances and also to properly manage such substances. Accordingly, we have set the target of reducing our total atmospheric toluene emissions to 200 tons per year by fiscal 2020. In fiscal 2017, we implemented anti-leakage measures and switched to chemical substances with lower environmental impact at the Toyohashi Plant, where a large quantity of chemical substances is used, as well as other locations, thereby successfully reducing their atmospheric emissions by 313 tons from the previous fiscal year to 277 tons per year.Climate change• Global warming• Abnormal weatherWater crisisResource depletion• Energy resource depletion• Increase of wasteDecrease of biodiversity• Use of harmful chemical substancesThe Nitto Group remains committed to its environmental policy of “Protecting our planet to pass on to future generations.”Under a full recognition of the four types of risk that our business activities can pose to the global environment, we are engaged in addressing such risks while at the same time tapping into our vast experience so that we can offer solutions to society that contribute to environmental conservation.• Environmental risks incidental to the Nitto Group’s business activities

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