1st edition June, 2016 DENSO ECO VISION 2025 I II Commitment Environmental policy -Target 3 -Action III Environmental action plan (6th)
I Commitment ( - 2050) DENSO group preserves the earth and delivers the bright future to the next generations by solving problems of environment and energy through all the cooperate behaviors and natural symbiosis and creating a new environmental value for the sustainable region and society in 2050. II Environmental policy ( - 2025) We define Target 3 to be achieved in 2025 as a milestone of the commitment, and enhance Action as initiatives of ten concrete fields. [Target 3] Energy 1/2 Clean x2 Green x2 Contribute to permanent maintenance of global environment by the technologies that can solve the problems of global warming, energy and resources. Comply with law and promote continuous improvement in order to provide reassurance to all stakeholders and remain a cooperation that grows with the society. Realize a society with sharing nature's wisdom and benefit in order to take over rich natural environment to the next generation through cooperate activity aiming at symbiosis with nature. [Action ] We define action plans with three axes of Energy, Clean and Green and approach in all business scope from viewpoints of product, factory, associates and management. Energy 1/2 Clean x2 Green x2 Product Ecoproducts 01 Ultimate fuel efficiency 04 Eco materials & low emission 07 New green technologies Factory Ecofactory 02 Minimum CO 2 Monozukuri 05 Minimum impact production 08 Nature rich workplace Ecofriendly Associates 03 Low carbon life style & transport 06 Earth consciousness, knowledge & skill 09 Environmental volunteer action Management Ecomanagement Environmental value efficiency management 1
III Environmental action plan (6th) ( - ) We define Environment action plan towards and approach it in order to embody the commitment and environmental policy. [Energy 1/2] Action [01-1 Enlargement of product contribution] Take leadership to reduce environmental load of automobile society by introducing products contributing in reduction of energy consumption and CO 2 emission to be the first in the world. 01 Ultimate fuel efficiency (1) Acceleration of the world first technology and development of product to contribute in reduction of consumption energy by half for automobile society (2) Promotion of new technology development responding to fuel diversification (without depending on fossil fuels such as hydrogen, bioenergy) CO 2 emission from the whole new car which is installed DENSO products *1 Global 2012 30% *1 Integrated CO 2 emission volume corresponded to DENSO products which relate directly to fuel efficiency. [01-2 Promotion of development of micro grid technology] Utilize technology cultivated in automobile field and contribute to maximization of energy utilization efficiency. Promotion of development of the technology HEMS (Home Energy Management System), CEMS (Community Energy Management System), etc. [02-1 Reduction of Monozukuri CO 2 ] Promotion of CO 2 reduction in production and logistics for achieving energy half. 02 Minimum CO 2 Monozukuri (1) CO 2 reduction in production - Promotion of on-site energy saving activity in facility (supply) side through to production (use) side - Development of high efficient production line by Monozukuri innovation such as Dantotsu plants *2 including 1/N equipment *3 etc. *2 Factory that manufactures with overwhelming low cost comparing others by speed up and high operation in production line, development of compact original equipment and downsizing logistics/ inspection etc. *3 Equipment that significantly reduces installation area, equipment cost and process cost by equalizing production volume (economic unit) according to assembling process, including minimization and improvement of process line. N means integral multiple. - Energy JIT (Just In Time) activity following the production changes and minimization of energy loss by all associates - Introduction of high efficiency cogeneration and renewable energy creating and stocking system Production CO 2 *4 (value added productivity) 2012 30% 2012 40% *4 Energy-derived CO 2 only 2
Action 02 Minimum CO 2 Monozukuri (2) CO 2 reduction in logistics - Improvement of transportation, reduction by Eco-drive etc. Logistic CO 2 (sales) 2012 8% - Top level of each country [03-1 Reduction of life and moving energy] Reduction of fossil energy use in life and move aiming at realization of carbon neutral life. 03 Low carbon life style & transport (1) Reduction of fossil energy use for transfer in-site and between the plants by introduction of low-carbon type of next generation automobile (such as PHEV, EV and FCV) and car sharing system, etc. Transfer energy in and out of site (Object: Large scale plant) (2) Reduction of energy in life by making efforts such as power saving by energy management at home and visualizing energy use (3) Reduction of energy use for private cars by improvement of individual Eco-drive technique and promotion of utilizing Eco-car 2012 30% 3
[Clean x2] Action 04 Eco materials & low emission [04-1 Management and reduction of substances of environmental concern] Promotion of activity provide security to all the stakeholders through minimization of environmental concern of products focusing on global restriction tendency of substances of environmental concern. (1) Promotion of aggressive switching towards global scale restriction of substances of environmental concern (2) Further earning of reliability by visualizing reduction activity of harmful substance contained in the products (3) Establish green purchasing system enriching further supply chain management, aiming further smooth and appropriate reduction of the restricted substances (4) Continuous promotion of technological development for of exhaust emission reduction contributing for improvement of urban atmosphere for respective countries and regions [05-1 Promotion of efficient resources use] Improvement of efficient resources use in production and logistics for contribution to recycling society 05 Minimum impact production (1) Reduction of total waste - Promotion of total waste reduction by development and introduction of innovative technology and improvement of yield Total waste (2) Reduction of cost waste (zero emission ADVANCE) - Improvement of recycling for further efficiently resources use (material recycle etc.) Cost waste (value added productivity) (value added productivity) 2003 47% - Top level of each country 2012 25% - Top level of each country 4
Action (3) Landfill waste Zero(zero emission) - Maintenance and achievement of zero emission *5 Landfill waste emission & Groups within Japan Groups outside Japan 1999 1999 Maintain zero emission Achievement of zero emission in all company *5 Reduction of landfill waste over 99% from 1999 (4) Reduction of packing and wrapping material in logistics - Reduction of packing and wrapping material purchasing weight by slimming of wrapping and expansion of returnable containers etc. 05 Minimum impact production Packing and wrapping material (sales) [05-2 Regional contribution through preservation of water resource] Promotion of reduction activity of water consumption considering water environment conditions of each country and region (1) Development of water management - Aggressive development of water resource securement for emergency according to regional needs, utilization of rainwater, etc. along with tracking water consumption and understanding water risks for improvement of regional security through water globally (2) Reduction of water consumption - Reduction of water consumption by process improvement (such as changeover to no washing process), expansion of water JIT or reuse of drainage water, etc. 2012 8% - Top level of each country Water (value added productivity) 2015 2.5% - Top level of each country 5
Action 05 Minimum impact production [05-3 Reduction of risk of substances of environmental concern] Reduction of risk of chemical substances discharged in the environment by new technology development (without using and substitution), optimization of consumption, collecting and recycling, etc. [05-4 Individual approach of each country and region] Promotion of individual approach for the particular problems of each country and region <Promotion items> - VOC(Volatile Organic Compound) regulation correspondence - Reduction of Greenhouse gas except the energy derivation (Gas for the semiconductor manufacture)* 6 *6 PFCs, HFCs, SF 6 etc. - Air emission (such as PM 2.5 )etc. 06 Earth consciousness, knowledge & skill [06-1 Expansion of environmental education] Expand environmental education for the purpose that each associate of DENSO group focuses on preservation of global environment and takes action aimed at sustainable society in each position and situation on a voluntary bases as our mission. (1) Reinforcement of competence of environmental staffs Number of person certified with S-class, etc. (2) Reinforcement of business operation ability based on life cycle viewpoint of person related to product design (including sales, etc.) (3) Reinforcement of environmental staff s knowledge and capability for environmental equipment and operation risks Global 2015 x1.5 (4) Improvement of environmental leadership in top management and managerial position (5) Reinforcement of activity to raise environmental awareness to each associate of DENSO group 6
[Green x2] Action [07-1 Promotion of green environmental business] Contribution to the society through new business by preserving the global environment and supporting sustainable and prosperous future with technology. 07 New green technologies 08 Nature rich workplace 09 Environmental volunteer action (1)Development of micro algae application business which does not have direct conflict with food production and continuous promotion of biofuel research (2) Development of agricultural support business with the DENSO technology acquired in the automobile field (3) Promotion of food transportation streamlining system utilizing refrigerating machine technology (4) Promotion of development and utilization of renewable bio resource (sustainable green material) (5) Promotion of efficient resource use and recycling technology development Scale of green environment related business [08-1 Promotion of rich greenery plant ] Promotion of greenery activity that regional community harmonizes with, customers can sympathize with, and associates can work comfortably (1) Creation of rich greenery plant *7 Formulate DENSO original evaluation index and evaluate greenery [09-1 Contribution to environmental society and creation of human resources] Promotion of creating green & clean community and developing human resources capable of respecting nature and moving into action (1) Global development of One DENSO Action with theme of Green & Clean (2) Promotion of nature protection and preservation activity for biodiversity utilizing various ecosystems (such as company owned woods, green space and biotope, etc.) of in and out of the company, and fostering mindset of caring nature (3) Improvement of environmental awareness and promotion of associates action through environmental education for the community people and the next generation of children by respective region and office 2014 x1.5 Evaluation index of rich greenery *7 2012 x2 Number of companies participating in One DENSO Action Global 2014 x1.5 7
[Energy1/2, Clean x2, Green x2] Action [-1 Fusion of environmental preservation and business management] Enhance environmental management by merging DENSO EMS (Environment Management System) and early stage control* 8 and improving global environment from a life cycle viewpoint by each associate of DENSO group *8 System to ensure that quality must be built in the process of planning - design - production for new product (1) Enhancement and global development of DENSO manufacturing EMS - Promotion of continuous improvement in the manufacture by visualizing the environmental activity that DENSO group should approach in common Environmental value efficiency management (2) Establishment of DENSO product EMS - Reduction of environmental load from the beginning by designing environmental consideration (3) Visualization of the environmental value in the whole business activities - Indication of added value to the global environmental preservation by evaluating and measuring the environmental load and contribution of the business activities from a viewpoint of life cycle 2025 Contribution to the earth and society Global - [-2 Minimization of Environmental risk] (1) Thorough environmental compliance - Thorough compliance through reduction activity of environmental risk Number of cases of environmental violation/abnormal Global Contribution > Load Maintain 0 counts [-3 Disclosure of information] Aggressive disclosure of environmental related information to all the stakeholders (1) Aggressive disclosure of environmental CSR information such as brochures, reports, internet, etc. and promotion of environmental approaches through interactive communication between the regional society and experts. (2) Publication of visualized contribution to the environment in business activities (including supply chain, use, disposal and recycling of products) based on LCA (Life Cycle Assessment)* 9 *9 Method of evaluation by measuring environmental impact value of lifetime of product (material part product use recycling & disposal) 8
[Reference] Total image drawing of DENSO ECO VISION 2025 I. Commitment ( - 2050) II. Environmental policy ( - 2025) [Target 3] Preserving the planet earth and preparing a bright future for generations to come Energy 1/2 Clean 2 Green 2 [Action ] Product Ecoproducts 01 Ultimate fuel efficiency 04 Eco materials & low emission 07 New green technologies Factory Ecofactory 02 Minimum CO 2 Monozukuri 05 Minimum impact production 08 Nature rich workplace Ecofriendly Associates 03 Low carbon life style & transport 06 Earth consciousness, knowledge & skill 09 Environmental volunteer action Management Ecomanagement Environmental value efficiency management III. Environmental action plan (6th) ( - ) Concrete initiatives of 16 items to embody commitment and environmental policy. 9