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/FY2023 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, from 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": "Sustainability Council "*name change from 2024, 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 Safety and 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. Coordinating Committee meetings for the group companies are held three times a year. At the meeting in April 2023, the environmental officers of domestic group companies gathered to review each company's FY2022 environmental activities and deliberated initiative plans for FY2023. In July 2023 and January 2024, the meetings were held with the participation of the person responsible for environment from each company to discuss the results of their activities and future initiatives 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.

Initiatives to Reduce CO₂ Emissions

In FY2023, we established the Domestic Group 6 -Company-Meeting with the aim of reducing CO₂ emissions by domestic group companies. The top six companies, which account for 73% of CO₂ emissions by JTEKT's domestic Gr companies, participate in this 6-company-meeting and are working together with JTEKT to reduce and eliminate air leakage.
In FY 2023, we conducted on-site visits to those 6 companies to share their respective CO₂ reduction initiatives and problems, and to deploy good practices. There was a lively exchange of opinions among the group companies, leading to the generation of concrete ideas for reductions.
As for the new reduction items obtained through the 6-company-meeting, we will make plans and implement initiatives from FY2024 onward, which will lead to the reductions in CO₂ emissions.

Overseas JTEKT Group Environmental Coordinating Committee

Global Safety & Environment Conference

In June 2023, 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 2023, 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 FY2023, 1 environmental abnormality occurred at JTEKT and 4 at the domestic group, but countermeasures have been completed.
• There were no fines or charges related to Environmental accidents or complaints, nor were there any lawsuits related to the environment.

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 2023, the Tokushima Plant conducted training for abnormalities in LPG plants.

Wastewater treatment plant management level improvement WG

A working group was newly established in FY2023 to improve management levels. The meetings were held twice this fiscal year, in July and February, to identify problems with operators at each business site and discuss and share solutions.

Environmental education

Environmental awareness education

During Environment Month in June 2023, an environmental awareness training was provided for all employees through e-learning.In FY2023, we attended  an environmental lecture on the theme of "Trends in Japan and Overseas and Trends in the Automotive Industry toward the Realization of Carbon Neutrality."

Education for affiliated companies

JTEKT aims to achieve carbon neutrality for all products, including those of its suppliers, by 2050. In FY2023, 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

In order to share environmental initiatives with everyone in the supply chain, JTEKT has been conducting surveys on the status of suppliers' environmental management systems, environmental performance targets and results, as well as the status of each company's understanding of water risks, through questionnaires since FY2018, and in FY2023, we have added a survey on the status of initiatives related to the recycling of emissions such as steel, aluminum, and plastics.
Also, we have established the "JTEKT Environmental Award System" for suppliers who achieved excellent environmental performance, to encourage suppliers to make further improvements.
In FY2023, we honored NSC Co.,Ltd., SAMTECH Corporation, IBARA SEIKI Co., Ltd. and  HEISEI INDUSTRY CO.,LTD. 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

FY2023 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 (FY2023) *1

★ Third party verification portion
*1 The scope of verification is steering and machine tools (5,649kt-CO₂)

CO₂ conversion factor used to calculate CO₂ emissions
Electric power: Emission factors for each electric power company are used both in Japan and overseas.
Other than electric power: Keidanren factors are used in Japan and IPCC Guideline 2006 is used overseas.

Third party verification

In order to improve the reliability of our data, JTEKT underwent third-party verification by SGS Japan Inc. for our FY2023. The scope of the verification covered Scope 1 and Scope 2 emissions, amount of renewable energy, water consumption,  waste emissions, and Scope 3 - Category 1 (Purchased products and services ), and Category 11 (Utilization of sold products) of JTEKT production sites, domestic business sites of group companies, and some overseas group companies.
Starting this year, in addition to the scope of SBTs, Scope 1, Scope 2, and Scope 3 will include subsidiary companies in domestic and overseas group companies.

　
Certificate of verification