2015 - YUDEN · Safety & Environmental Report 2015 CONTENTS Editorial Policy Scope of Disclosure 02 03 04 05 06 Environmental 07 08 09 10 11 12 13 14 15 16 17 Building Safety and

2015 Safety & Environmental Report

Safety & Environmental Report 2015

C O N T E N T S

EditorialPolicy ScopeofDisclosure

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BuildingSafetyandEnvironmentalFoundation

OurEffortstowardImprovingtheEnvironment

ApproachtoHealthandSafetyEfforts

WhythisReportwasPublished

The Taiyo Yuden Group strives for perpetual growth while fulfilling its corporate social respon-sibilities. Making efforts toward improving safety and the environment is an important social re-sponsibility at Taiyo Yuden, so we promote such activities on a global scale. Every fiscal year, we publish a Safety and Environmental Report presenting our goals, our efforts, major results, and other details in a comprehensive yet easy to understand format.

IntendedReadership

This publication assumes a target readership consisting not just of customers and clients, but also local communities in the vicinity of our sites, stockholders, investors, people involved in environmental activities or occupational health and safety, NGOs, students, group employees, and a wide range of other stakeholders. We also publish this English version to make the contents available to readers overseas.

ReferencedGuidelines

This report follows the Environmental Reporting Guidelines (2012 edition) issued by the Japanese Ministry of the Environment. We have listed the core indicators of environmental performance with reference to GRI’s “Sustainability Reporting Guidelines (4th edition)”. Mixing in charts and figures, it outlines Taiyo Yuden Group’s envi-ronmental impact describes our management systems, spotlights current issues and reports on specific measures for improving that impact.

PublicationonourWebsite

This report is published on the Taiyo Yuden website, in consideration of effective use of resources, etc. We hope that this report will help you gain a deeper understanding of our environ-mental, health, and safety activities, and be used as a reference for making an objective judgment of the Group.

Reference：TheTaiyoYudenwebsite http://www.ty-top.com/

OrganizationsCoveredbythisReport

This report covers TAIYO YUDEN CO., LTD. and its domestic and overseas subsidiaries and affiliates. Safety and environment data covers the following Taiyo Yuden Group members: six domestic sites, eight domestic group compa-nies, and eight overseas group companies.

[Within Japan]TAIYO YUDEN CO., LTD.Takasaki Global Center / Haruna Plant / Nakanojo Plant / Tamamura Plant / Yawatabara Plant / R&D Center

Consolidated SubsidiariesTAIYO CHEMICAL INDUSTRY CO., LTD. / AKAGI ELECTRONICS CO., LTD. / THAT’S FUKUSHIMA CO., LTD. / NIIGATA TAIYO YUDEN CO., LTD. / TAIYO YUDEN ENERGY DEVICE CO., LTD. / CHUKI SEIKI CO., LTD. / TAIYO YUDEN MOBILE TECHNOLOGY CO., LTD. / KANKYO ASSIST CO., LTD.

[Outside Japan]Consolidated SubsidiariesSouth Korea: KOREA TAIYO YUDEN CO., LTD. / KOREA TONG YANG YUJUN CO., LTD. / KOREA KYONG NAM TAIYO YUDEN CO., LTD.

China: TAIYO YUDEN (GUANGDONG) CO., LTD. / TAIYO YUDEN (TIANJIN) ELECTRONICS CO., LTD. TAIYO YUDEN (SUZHOU) CO., LTD.

Philippines: TAIYO YUDEN (PHILIPPINES), INC.

Malaysia: TAIYO YUDEN (SARAWAK) SDN. BHD.

PeriodCoveredbythisReport

This Report focuses on our performance from April 1, 2014 to March 31, 2015 (Date of any activities which have taken place outside this period are specified).

DateofIssue July 2015(Previous Issue: July 2014; Next issue scheduled for July 2016)

SafetyandEnvironmentalManagementSystem2-1

DeterminingEnvironmentalImpactofCorporateActivities

AchievementLevelsforMedium-TermOccupationalHealthandSafetyTargets

SafetyandEnvironmentalManagementSystem2-2

AchievementLevelsforMedium-TermEnvironmentalTargets EffortsandStatus2-1

SafetyandEnvironmentalAudits CurbingGlobalWarming EffortsandStatus2-2

SafetyandEnvironmentalRiskManagement

ReducingWaste/PreservingWaterResources2-1

EmployeeEnrichmentthroughSafetyandEnvironmentalTraining

ReducingWaste/PreservingWaterResources2-2

EnvironmentalAccounting OurEfforts

AppropriateManagementofChemicalSubstances

Building Safety andEnvironmental Foundation

Our Efforts toward Improvingthe Environment

Approach to Health and Safety Efforts

02


Safety and EnvironmentalManagement System 2-1

SystemOverview

PromotionStructure

Ourgroup-wideSafetyandEnvironmentalManagementSystemkeepsindividualactivitiesproceedingtowardcommongoalsunderacommonphilosophy.

This management system consists of a small plan-do-check-action (PDCA) cycle inside a big one. The big PDCA cycle specifies shared objectives and standards, checks implementation status using internal site audits and reports from sites, and reviews the management system, seeking continuous improvement.The small PDCA cycle builds and promotes management systems compliant with ISO14001 and OHSAS18001 standards at each business site.

The officer in charge of safety and environmental affairs appointed by the President has overall responsibility for building and managing the promotion structure for Taiyo Yuden’s Safety and Environmental Management System.The Taiyo Yuden Group Safety and Environment Committee, the Taiyo Green Strategy (TGS) Committee, and the Energy and Resource Conservation Committee debate and decide policies and issues to be addressed. Each manager of sites then converts his/her decisions into actual plans matching the characteristics of each site, and takes charge of publicizing, enforcing and promoting these concrete targets.

Decision-making body for safety &environmental activitiesDiscusses and decides the activity policies, targets, etc. for the Group as a whole

Core organization responsible fordiscussing and examining chemicalmanagement policy

Core organization responsible fordiscussing and examining energy andresource conservation issues

Decision-making body of each siteSubcommittees are established under the committee by theme.The Health & Safety Committee investigatesand deliberates on matters required by law.

Secretariat in charge of promotingactivities of each site

TaiyoYudenGroupSafety&EnvironmentCharter

Group’sMedium-termHealth&Safety/EnvironmentalTargets

OperationandOperationStandards

Accident&PerformanceReport ManagementReview

GroupSafety&EnvironmentalDocumentation

ResponsetoLegalRegulationsandMajorRisks On-SiteSafety&EnvironmentalAudits

ContinualImprovement

Plan

Plan

Do

Action

Check

Do Check Action(Review)Group’sOrganizationonHealth&

Safety/Environment EachSite

TaiyoYudenManagementPhilosophyCSRCharterandCodeofConduct

PublicDisclosure

Safety&EnvironmentalManagementSystem

TaiyoYudenGroupSafety&

EnvironmentCommittee

TGSCommittee

EnergyandResourceConservationCommittee

EachSiteofTaiyoYuden DomesticAffiliatedCompanies OverseasAffiliatedCompanies

Individual responsible for coordinating activitiesfor the entire Group

Health&SafetyCommittee

Safety&EnvironmentPromotionSecretariat

EachDivision

EnvironmentalSolutionsCommitteeHealth&SafetyCommittee


EachDivision

EnvironmentalSolutionsCommitteeHealth&SafetyCommittee


EachDivision

EnvironmentalSolutionsCommittee

Department that promotesthe activities of the entire group

Safety&EnvironmentalPromotionOffice

President

OfficerinChargeofSafety&EnvironmentalAffairs




03


Safety and EnvironmentalManagement System 2-2

CertificationAcquisitionStatusThe Taiyo Yuden Group has obtained ISO14001 certification for production sites and development centers. The Group has obtained OHSAS18001 certification in all but a few of these ISO14001-certified sites.

ListofCertificationsAcquired

Location NameofSites AcquiredISO14001Certification

AcquiredOHSAS18001Certification

Japan

TAIYO YUDEN CO., LTD. Takasaki Global Center, Yawatabara Plant, Tamamura Plant, Haruna Plant, Nakanojo Plant, R&D CenterTAIYO CHEMICAL INDUSTRY CO., LTD.AKAGI ELECTRONICS CO., LTD.CHUKI SEIKI CO., LTD.KANKYO ASSIST CO., LTD.NIIGATA TAIYO YUDEN CO., LTD.TAIYO YUDEN ENERGY DEVICE CO., LTD.TAIYO YUDEN MOBILE TECHNOLOGY CO., LTD.

2849355 (as of Oct. 1998)Collectively certified in Japan

2849356 (as of May 2001)Collectively certified in Japan(Except TAIYO YUDEN ENERGY DEVICE CO., LTD. and KANKYO ASSIST CO., LTD.)

SouthKorea

KOREA TAIYO YUDEN CO., LTD.KOREA TONG YANG YUJUN CO., LTD.KOREA KYONG NAM TAIYO YUDEN CO., LTD.

20BK00114-UK (as of Mar. 2002)

20BK00084-UK (as of Mar. 2002)

20BK00113-UK (as of Mar. 2002)

BK50172 (as of Oct. 2002)

BK50169 (as of Oct. 2002)

BK50173 (as of Oct. 2002)

China

TAIYO YUDEN (GUANGDONG) CO., LTD. 300593-UK (as of Dec. 2001) OH1419GZ (as of Jan. 2003)

TAIYO YUDEN (TIANJIN) ELECTRONICS CO., LTD.TAIYO YUDEN (SUZHOU) CO., LTD.

CN08/10665 (as of Aug. 2008)

CN13/205444 (as of Sep. 2013)Planning to acquire certification

Philippines TAIYO YUDEN (PHILIPPINES), INC. PH13/0920.00 (as of Nov. 2001) CH14/1329.00 (as of Nov. 2002)

Malaysia TAIYO YUDEN (SARAWAK)SDN. BHD. ER0280 (as of Oct. 2002) SR0198 (as of Sep. 2004)

BV

BV

BV

SGS

SGS

SIRIM

Certificationauthorities

Certificationauthorities

BV

BV

BV

SGS

SIRIM




04


Safety and Environmental Audits

ExternalAudits

InternalSiteAudits

InternalAudits

OtherAudits

Tripleauditsevaluateeachsite’scompliance,accidentriskmanagement,andtheenvironmentalimpactsituationaimedatproducingcontinuousimprovement.

Sites with ISO14001 or OHSAS18001 certification underwent the audits required to update or maintain such certification. These audits uncovered 15 nonconformities. The root causes were analyzed and corrective action was promptly taken in response to each issue. The nonconformities were minor issues relating to our management systems, and were not directly linked with environmental pollution or occupational accidents.

In FY2014, audits were conducted at 17 sites for the purpose of confirming the status of compliance with the group’s health & safety standards.Various measures that were specified as the group’s common standards for protecting employees from occupational accidents were confirmed, including indication, work in high places, the handling of heavy objects, lockout/tagout, fire prevention, and evacuation and safety.In general, measures were implemented in accordance with the standards. However, as 10 nonconformities including erroneous indication on subdivided solution containers were found, new measures were also implemented.By reflecting world-wide social requirements in a timely manner and benchmarking and sharing sites, we are improving the health & safety standards of the whole group.

Necessary content indications, including the GHS symbol mark, were found to be missing on certain subdivided organic solution containers.

Although the work to remove refuse from the roof rainwater gutter involves a risk of falling, no fall prevention measures were taken.

Some employees were conducting the cleaning of plating devices without wearing goggles (unsafe action).

NonconformityExamplesandDetails Corrective/ImprovementMeasuresThough a new plating solution was kept in the plating workplace, identification of risk sources and risk assessment regarding the raw material were not implemented.

▶The risk source of the new plating solution was identified and risk assessment was conducted. Measures against risks including the installation of a fence to prevent the overturning of the container were taken.

While acidic wastewater produced in the exhaust gas elimination device was monitored using a pH meter, the pH meter inspection procedures were not explicitly specified.

▶The pH meter inspection procedures were reviewed and the inspection tasks were explicitly specified.

While corrective actions for nonconformities pointed out in the internal audit were taken, recurrence prevention measures were not taken.

▶The format of the written response to a corrective action request was improved and the corrective action column and recurrence prevention measure column were drawn up.

IssueExamples

NonconformityExamplesNumberofNonconformityInstancesFoundwithExternalAudits

All sites conducted internal audits of their departments in accordance with their management systems. Priority areas were determined for each site, and 12 nonconformities were uncovered as a result of conducting internal audits (for the Group in Japan). Corrective action was completed in all cases without delay, and after a follow-up check, it was reported to the managers that the management system has been effective in complying with the Taiyo Yuden Group’s policies and goals.

On-siteinspectionofwastedisposalcontractors(SitesinJapan)FY2014 saw on-site inspections and audits of 19 operators: Five waste collection and transporting companies, seven waste collection and transporting/intermediate processers, six intermediate processors and one purchaser of items that have a resale value. As a result, it was confirmed that all inspected operators are processing and disposing of waste in an appropriate fashion. The operators have been classified into three ranks from the results of these inspections, with the frequency of future inspections varying depending on the rank of the operator.

ISO14001andOHSAS18001certificationauditsbycertificationauthorities

Auditsofsitesafetyandenvironmentalactivitiesatregularlyscheduledintervalsallowustocomparesites.

Auditstargetingsitedepartmentsonobservanceofsafetyandenvironmentlaws,targetachievement,andperformance.

Domestic sites: Once every two yearsOverseas sites: Once every three years

Between once and twice a year

4

6

3Total:15

ACTION2

PLAN

CHECK

Do




05


Varioustypesofregularlyscheduledtrainingareimplementedtorespondtosuddenaccidents,disasters,andotherrisks,withtheobjectivesofearlydiscovery,rapidresponse,preventionandmitigation.TheTaiyoYudenGroupreconfirmsappropriateproceduresandstrivesforcontinuousimprovement.

Safety and Environmental Risk Management

FirefightingTraining

EmergencyTrainingforSpillageofChemicalSubstances

EvacuationandMedicalEmergencyTraining

RemovingSoilContamination

EnvironmentalAccidents

We completed our soil and ground water contamination surveys and made clean-up efforts following the Japanese Ministry of the Environment guidelines in 2003. No surveys were conducted in FY2014.

At TAIYO CHEMICAL in July 2014, an accident occurred in which heavy fuel oil escaped from the site through a rainwater gutter.This accident occurred because during transport of a waste container, an operator hit it against the heavy fuel oil piping by mistake and a small amount of heavy fuel oil flew out from a crack into the rainwater gutter.We immediately cut off the rainwater gutter. However, as a small amount of heavy fuel oil had escaped from the site, we recovered it with the aid of relevant government agencies.

TAIYOYUDEN(PHILIPPINES)Hose training using a hydrant was performed so that the participants can take actions promptly in the event of an emergency.The photograph above shows the scene of a local fire-fighting contest in which our employees participated.

NIIGATATAIYOYUDENTraining was held simulating the scenario of a leakage during transportation of chemical substances using a wheeled platform. Exercises in gutter cutoff and recovery of such leaked chemical substances were held.

HARUNAPLANTEmergency life-saving training was held under the guidance of a fire station. Participants, mainly consisting of inexperienced persons, learned about arrival resuscitation techniques and the use of AEDs.

TAMAMURAPLANTHose training using a hydrant and early fire-fighting training using a fire extinguisher were conducted to minimize damage in the event of a fire.

TAIYOYUDEN(GUANGDONG)Diffusion prevention and recovery training was held simulating the scenario of a leakage of chemical substances in a hazardous material warehouse.

KOREATAIYOYUDENEvacuation training was given to all employees of the plant so that they can promptly evacuate in the event of a fire.

TAIYOYUDEN(SARAWAK)On the site of the employee dormitory, early fire-fighting training using an actual powder fire extinguisher was conducted.

TAIYOYUDENMOBILETECHNOLOGYEmergency training was held simulating the scenario of a leakage of hazardous gas. The participants quickly put on aerial respiration devices, headed to the site of the accident and conducted life-saving training exercises.

NAKANOJOPLANTFirst-aid and casualty-carrying training was held simulating the scenario of casualties caused by an earthquake.




06


Employee Enrichment through Safetyand Environmental Training

TrainingStructure

TrainingExamples

Awidevarietyoftrainingprogramscoveringeverythingfromgeneralknowledgethroughtofieldsrequiringspecializedknowledgeandtechnologyraiseemployeeawarenessofthenecessityofpreventingon-the-jobinjuriesandwork-relatedillnessandaggressivelytacklingenvironmentalpreservation.

GeneralTraining

OccupationalHealthandSafetyTraining

EnvironmentalTraining

OccupationalHealthandSafetyEventWe hold various events relating to health and safety at all our sites. These are opportunities to improve the health and safety awareness of our employees. Events such as life-saving training, exercise lessons, health improvement fairs, and smoking cessation seminars were held.

Forklifttraining/LasersafetylectureForklift training was given by an external lecturer at each site. Lectures on case examples of accidents in general society and inspection methods, as well as training on operations and maneuvering were held. Each workplace has various devices using lasers. To prevent laser-related injuries, a lecture on laser safety was held and education on the dangers of lasers and measures against such dangers was given.

EducationforwastemanagersIn order to appropriately manage waste, education on waste-related regulations (the responsibilities of businesses discharging waste), observation methods of waste processing consigners, and reuse/recycling technologies was given to employees who will become new waste managers.

Purpose MainSubjectsRaising new recruits' awareness of occupational health & safety and environmental preservation, and ensuring they understand environmental problems pertinent to companies

General theory of Safety & Environment / Status of Safety & Environment at the Taiyo Yuden Group

Deepening all employees' understanding of the Taiyo Yuden Group Safety and Environment Charter and Course of Action and teaching them the skills to act accordingly

Management system (including the Safety and Environment Charter) / Mental health

Understanding potential hazards and environmental impact with regard to divisionalhealth and safety/environmental activities and work

Division activities / Matters for compliance in work

Deepening understanding of the role of the duty for employee safety required by legal regulations

Role of the General Manager of Health and Safety /Role of management

Teaching foremen skills to instruct their subordinates in health and safety Role of foreman / Chemical substance management / Hazardous material management

Teaching of specialized skills to operators of forklifts, cranes, and other heavy equipment, as well as managers of processes that handle organic solvents and the like, and employees involved in these tasks

Workplace restricted duties / Training for specific tasks / Prevention of static electricity accidents

Teaching special skills to managers and relevant employees involved with equipment and facilities for which a legal notification is required

Management to prevent deterioration of water quality / Management to prevent air pollution / Waste management

Training skills to integrate business activities with environmental activities in order to balance an improvement in our environmental impact with improved resource productivity

Chemical substances and their environmental impact / Environmental targets / Cases of environmental improvements / Causes of environmental accidents and their countermeasures

Name

GeneralTraining

Training for new recruits

General training

Workplace training

Health & SafetyTraining

Training for managers

Training for instructorsand supervisors

Training for specialists

EnvironmentalTraining

Training for specialists

Specialized training

Health improvement fairsExercise lessons

Laser safety lectureForklift training

Education for waste managers Education for waste managers




07


Environmental Accounting

EnvironmentMaintenanceCosts

EnvironmentMaintenanceEffectiveness

TrendsinEnvironmentalAccounting

TheTaiyoYudenGrouppromotesaneffectiveenvironmentalmanagementbyadoptingenvironmentalaccountingtomakeclearwhatresourcesourdomesticsitesapplytotheirenvironmentalpreservationactivities.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2010 2011 2012 2013 2014 FY

(million yen)

Costs

Effectiveness

1,441

1,9201,845 1,843

1,3511,294

1,915

9761,0741,086

EnvironmentalAccountingStandards

Lowered costs through reducing waste and recycling =

[Unit cost of waste treatment in the prior fiscal year (JP¥/ton) – Unit cost of waste treat-

ment in this fiscal year (JP¥/ton)] × Amount of waste generated (tons)

1. The sum total of the costs for complying with environment-related laws and regulations, the costs incurred purely for the purpose of improving our environmental impact, and the EMS operation costs are calculated. However, in cases where environmental preservation costs partially overlap the costs for other purposes, the latter shall be deducted and the balance shall be applied.

2. Depreciation costs shall be the current fiscal year's depreciation expenses at the environmental conservation facilities.

3. If a clear-cut distinction cannot be made between the environmental cost and that for other purposes, if 50% or more of the content is environment-related, the full amount can be counted as the environmental preservation cost.

4. The cost-effectiveness by saving energy is yielded from the reduction of either the rated dissipation or the operating time or both.

5. The cost-effectiveness by reducing and recycling waste is calculated as follows:

Expenses(million yen)

Investment(million yen)

Main items

677 170

363 90 Monitoring and measurement of atmosphere, water quality, noise, and vibration; emergency preparedness and response

161 80 Curbing emission of greenhouse gases; curbing emission of ozone-depleting substances; improvements in waterquality; exhaust gas cleaning; energy saving; resource saving

153 − Waste management, and outsourcing of waste treatment; reduction of waste; recycling

0 − Activities to improve the environmental impact of products, green procurement

284 − Building and operating an EMS; surveillance audits; environmental training; costs for operating secretariat;department operations costs

778 − R&D costs to improve the environmental impact of product processes etc.

6 − Donations to environmental groups; participation in communities' global environmental preservation events

0 −

1,745 170

Economic effect(million yen)

Effects on amounts*

Main items

203 5,199kL Improvement in productivity; improvement in energy management method

36 1t Reduction in amount of chemical substances used through improvement in process yield etc.

737 2,166t Improvement in recycling rate

976 *”Effects on amounts” indicate the calculated difference with the case where no activities are conducted to improve our environmental impact.

Type of cost

Business unit area costs

Brea

kdow

n Pollution prevention

Conservation ofglobal environmentResource recyclingcosts

Upstream / downstreambusiness activities

Management activity costs

R&D

Social activities

Response to environmentaldamage

Total

Type of effectiveness

Energy saving

Conservation of resources

Reduction in waste, and recycling

Total

Wecalculatetheeconomiceffectsonlyforthoseactivitiesclearlyimprovingourenvironmentalimpact.

08


Determining Environmental Impact of Corporate Activities

FY2014MaterialBalance

Detailedunderstandingandanalysisoftheenvironmentalimpactofcorporateactivitiesisaprerequisitetodevisingvariousmeasurestoimprovethis.

The Taiyo Yuden Group primarily produces electronic components for delivery to our customers, set manufacturers. These electronic components have a life cycle with only a small environmental impact during use. The bulk is during production, with the main environmental impact arising from energy and water consumption, emissions (including CO2) in the course of manufacture, waste and waste water. The Taiyo Yuden Group is striving to improve our environmental impact by first identifying and analyzing in detail this environmental impact and then taking such measures as minimizing the resources applied and conserving other energy and resources by improving production processes. Taiyo Yuden Group products are used in electrical and electronic equipment, automobiles, and other products which become waste once their product lifetime is over. We are therefore also striving to remove toxic substances from these products.

ReasonsforChangesfromFY2013

The consumption of light diesel oil increased due to temporary backup power generation at TAIYO YUDEN (GUANGDONG).Energy consumption and water consumption have increased due to an increase of production sites of TAIYO YUDEN MOBILE TECHNOLOGY.

INPUT OUTPUT

R&D/Design

MaterialProcurement

Sales/Logistics

Production




Rawmaterials(Includingrecycling)

Products

Atmosphere

Waste

Wastewater

Electricity 766.29kWhHeavy fuel oil 3,242kLDiesel 681kLKerosene 1,583kLGasoline 227kLLP gas 1,410tTown gas 6,655,000m3

Resin materials

Inorganic materials

Organic solvent

etc.

Capacitors

Inductors

Modules

Recording media

etc.

CO2* 32,401tNOx 59tSOx 221t

Recycling 17.8ktFinal disposal 1.6kt

Industrialwastewater 3,663,000m3

Domesticwastewater 193,000m3Tap Water 3,608,000m3

Groundwater 451,000m3

* Excluding CO2 emission equivalent of electricity

Total emission: 19.4ktRecycling rate: 91.4%

million

Energy

BusinessActivitiesofTaiyoYudenGroup

Water

09


Achievement Levels forMedium-Term Environmental Targets

TaiyoYudenGroupEnvironmentalTargetsandResults

Wesetmedium-termenvironmentaltargetsfortheGroupoverall.Ourenvironmentalimpactimprovementeffortsareimplementedoverallsites.

We have set targets for improving our environmental impact over the 5-year period from FY2011 through FY2015. Specifying medium-term environmental targets for each business unit, each site and each division helps ensure active participation at each level.

Environmentalriskmanagement Global

Compliance with applicable environmentallaws and regulations

Compliance has been achieved in all categoriesfor applicable laws and regulations. ○

Maintain zero accidents that affect theecosystem and carry out ongoing training

Zero accidents occurred that affect the ecosystem and ongoing training has been carried out. ○

Contributingthroughenvironmentallyfriendlyproducts

Global

Develop "green products"Using downsized shapes, for example, ongoing efforts are being made to develop green products that improve our environmental impact. ○

Reduce environmental impact pereach product

Our environmental impact has been improved by re-examining production conditions, methods and equipment. ○

Regulatory compliance for chemicalscontained in products (RoHS, ELV, REACH)

Compliance measures were updated to meet changes in regulatory requirements. ○

Curbingglobalwarming Global

10% improvement in "average energyconsumption per unit" (weighted averageby business unit) over FY2011-FY2015compared with FY2008-FY2010

The target of 10% was exceeded with a result of 37.2% on average during the period of FY2011-14. ○

PreservingbiodiversityEffectiveuseofresourcesby"Reducing"consumption

Global

5% improvement in "average wastegeneration per unit" (weighted averageby business unit) over FY2011-FY2015compared with FY2008-FY2010


10% improvement in "average water useper unit" (weighted average by businessunit) over FY2011-FY2015 compared withFY2008-FY2010


PreservingbiodiversityEffectiveuseofresourcesby"Reuse"and"Recycling"

Global5% improvement in "average final disposalvolume per unit" (weighted average bybusiness unit) over FY2011-FY2015compared with FY2008-FY2010


Japan Recycle 99.5% of waste or moreThe target of 99.5% was exceeded with a result of 99.5% during the period of FY2014. ○

PreservingbiodiversityNatureconservationinlocalarea

Global Continue to carry out nature conservationactivities in local area (in forests etc.)

Ongoing tree-planting activities and conservation activities at Taiyo no Mori (Forest of Taiyo Yuden) and Taiyo-yama (Mountain of Taiyo Yuden) were conducted. ○

Medium-Term(FY2011toFY2015)EnvironmentalTargets Results Evalua-

tion

* Weighted average: An average in which each quantity to be averaged is assigned a weight.




10


0

50

100

150

200

250

2010 2011 2012 2013 2014 FY

(thousand kL)Energy consumption (domestic)Energy consumption (overseas)

101109

95105

91113

81117

89121

Curbing Global Warming

Resultsofeffortstoreducegreenhousegasesandenergyconsumption

Therearethreecategoriesforgreenhousegasesemittedduringthecourseofbusinessactivities:Directemissionsfromuseofenergy(SCOPE1),Indirectemissionsfromenergyuse(SCOPE2)andIndirectemissionsotherthanfromenergyuse(SCOPE3).Greenhousegasemissionscannotbeeasilymeasured,soweconcentrateonenergyuseandreducingenergyconsumption.

In FY2014, the Group’s overall greenhouse gas emissions increased year-on-year by 27 kilotons-CO2e. This figure includes an increase from 183 kilotons-CO2e to 200 kilotons-CO2e at domestic sites and an increase from 275 kilotons-CO2e to 285 kilotons-CO2e at overseas sites compared with FY2013 (See G1). Energy consumption for the Group overall increased by 12 thousand kiloliters from FY2013. This figure includes an increase from 81 thousand kiloliters to 89 thousand kiloliters at domestic sites and an increase from 117 thousand kiloliters to 121 thousand kiloliters at overseas sites compared with FY2013 (See G2).The breakdown of energy consumption was 93% in SCOPE 2 and 7% in SCOPE 1 (See G3).The average energy consumption per unit of the environmental medium-term target improved by 37.2% for FY2011-14 (See G4).We continue to work on reviewing production processes, especially those for our major products, in order to further improve production efficiency and reduce total energy consumption.Note: Changes in the conversion factor have a major impact on greenhouse gas calculations, so the medium environmental targets were set according to energy consumption (crude oil equiva-

lent), a factor that has measure able results.Note: Greenhouse gas emissions are calculated using GHG Protocol factors (electricity by country).Note: There was a review and revision to the CO2 conversion factor of electricity in regards to domestic greenhouse gas emissions in FY2013. In FY2014, the FY2013 CO2 conversion factor was used.

G1:GreenhouseGasEmissions(calculatedfromtotalenergyconsumption)

G3:BreakdownofEnergyConsumption(crudeoilequivalent)

G2:EnergyConsumption(crudeoilequivalent)

G4:AverageEnergyConsumptionPerUnit(resultscomparedtotarget)

0

100

200

300

400

500

2010 2011 2012 2013 2014 FY

(1,000t-CO2e)GHG emissions (domestic)GHG emissions (overseas)

172

2.06

262195

2.43

252

206

2.47

271

200

2.13

285183

2.20

275

0

3

2

1

Sales per unit

-10

0

10

20

30

40

Base 2011 2012 2013 2014 2015 FY

（％）Rate of improvement compared to the reference year (Activity year average)

37.2% improvement

Target: 10% improvement

SCOPE 1 (petroleum, gases)

SCOPE 2 (electricity)

93%

7%

EffortsonIndirectEmissionsOtherthanfromEnergyUse(SCOPE3)In recent years, there has been an increasing trend to seek the disclosure of information on SCOPE 3 in addition to SCOPE 1 and SCOPE 2 among stakeholders. In line with this request, we have been trying to keep up with SCOPE 3. We have ascertained that our greenhouse gas emissions from purchased goods/services were 267kilotons -CO2e (group), 6,866t-CO2e (domestic sites) from commutes, 581t-CO2e from business trips (domestic sites), 4,000t-CO2e from disposal and processing of waste (domestic sites) and 28,762t-CO2e from transporting products (group).




11


Reducing Waste /Preserving Water Resources 2-1

ResultsofReducingWaste

Westrivetoreduceenvironmentaleffectonbiodiversitywhilecoexistingwithnature,andweusethe3Rs(reduce,reuse,recycle)toreducewasteandmakeeffectiveuseofwaterresources.

In FY2014, the Group’s overall waste volume increased from 18.5 kilotons in FY2013 to 19.5 kilotons. This increase was due to factors such as an increase of production volume (See G1).The figures for waste, including items that have resale value, reveal that the largest shares are for plastic refuse, sludge, waste paper, and waste oil (See G2).Domestic final disposal volumes increased from 0.017 kilotons in FY2013 to 0.029 kilotons. The waste recycling rate of the environmental medium-term target decreased to 99.5% from 99.7% (See G3).Overseas final disposal volumes decreased from 2.3 kilotons in FY2013 to 1.6 kilotons (See G4).The waste generation per unit of the environmental medium-term target improved by 27.6% on average for FY2011-14 (See G5). The final disposal volume per unit improved by 42.5% on average for FY2011-14 (See G6).We will continue working to reduce waste volumes, boost in-house recycling rates, and recycle waste into resources at our overseas sites.

G1:AmountofWasteGeneration

G4:OverseasFinalDisposalVolumesandRecyclingRates

G2:BreakdownofWaste

G3:DomesticFinalDisposalVolumesandRecyclingRates

0

5

10

15

20

25

2010 2011 2012 2013 2014 FY

(kilotons)Amount of waste generation (domestic)Amount of waste generation (overseas)

10.212.4 9.2

11.2

7.211.6

5.712.8

6.213.3

Wood chips /Glass and pottery shards

Plastic refuse

Sludge

Waste oil

Scrap paper

Scrap metal

Waste liquids

51%

15%

9%

12%

6%5%

1% each

Definition of waste: general waste, industrial waste, and items having resale value.

0.00

0.05

0.10

0.15

0.20

2010 2011 2012 2013 2014 FY

(kilotons) Final disposal volume

Final disposal volume

Recycling rate

Recycle rate

（%）

0.091

0.024

0.007

0.0290.017

96

97

98

99

100

99.1

99.7

99.799.9 99.5

0

1

2

3

4

2010 2011 2012 2013 2014 FY

（%）Final disposal volumeRecycling rate

(kilotons)

Final disposal volume

Recycle rate

2.9

2.6

2.0 2.3

1.6

72

75

78

81

84

87

90

7677

82

88

83




12


Reducing Waste /Preserving Water Resources 2-2

ResultsofWaterResourceEffortsIn FY2014, the Group’s overall water use increased from 3,564 thousand cubic meters in FY2013 to 4,059 thousand cubic meters. This figure includes an increase from 1,234 thousand cubic meters to 1,743 thousand cubic meters at domestic sites, and a decrease from 2,330 thousand cubic meters to 2,316 thousand cubic meters at overseas sites compared with FY2013 (See G7).Water use per unit of the environmental medium-term target improved by 40.6% on average for FY2011-14 (See G8).The amount of recycled water was 371 thousand cubic meters.

G5:AverageWasteGenerationPerUnit(resultscomparedtotarget)

G7:WaterUse

G6:AverageFinalDisposalVolumePerUnit(resultscomparedtotarget)

G8:AverageWaterUsePerUnit(resultscomparedtotarget)

0

1000

2000

3000

4000

5000

2010 2011 2012 2013 2014 FY

(thousand m3)Water use (domestic)Water use (overseas)

1,3252,854 1,351

2,514 1,3652,373

1,2342,330

1,7432,316

Base 2011 2012 2013 2014 2015 FY

（%）Rate of improvement compared to the reference year (Activity year average)

0

10

20

30

40

50

27.6% improvement

Target: 5% improvement0

10

20

30

40

50

Base 2011 2012 2013 2014 2015 FY

（%）Rate of improvement compared to the reference year (Activity year average)

42.5% improvement


0

10

20

30

40

50

Base 2011 2012 2013 2014 2015 FY

（％） Rate of improvement compared to the reference year (Activity year average)

40.6% improvement


ResultsofReducingWaste




13


Our Efforts

ReducingGreenhouseGasEmissions

ReducingWaterUse

Others(Visualization)

Change of fuel/Thermal efficiency improvement[TAIYOCHEMICAL]Changed fuel from heavy fuel oil to town gas.[R&DCenter/KOREAKYONGNAMTAIYOYUDEN]Introduced a high-efficiency kerosene boiler.[HarunaPlant]Changed from a kerosene boiler to a heat pump. The reduction amount of overall greenhouse gas emissions was 626t-CO2e per year.

Efficiency improvement of freezer[TAIYOYUDEN(GUANGDONG)]Introduced a high-efficiency inverter-control freezer.[NIIGATATAIYOYUDEN]Improved the freezer system. The reduction amount of overall greenhouse gas emissions was 924t-CO2e per year.

Efficiency improvement of transformer/motor[NakanojoPlant]Upgraded to high-efficiency transformer.[TAIYOYUDEN (GUANGDONG)/KOREAKYONGNAMTAIYOYUDEN]Upgraded the motor in the facility to a high-efficiency type. The reduction amount of overall greenhouse gas emissions was 606t-CO2e per year.

Energy-saving through introduction of LEDs[YawatabaraPlant/HarunaPlant/NakanojoPlant/NIIGATATAIYOYUDEN]Upgraded the lighting to LEDs. The reduction amount of overall greenhouse gas emissions was 80t-CO2e per year.

Water-saving through waste water recycling[TAIYOCHEMICAL/NakanojoPlant]By filtering the waste water from the cutting process using a filter, a volume of water could be reused. The amount of reduced water was 535t per year.

Energy consumption monitoring system[TamamuraPlant]electricityperunit,compressedair,etc.By visualizing energy consumption, we are operating a leaner business. By leveraging the monitoring system, we are conducting energy-saving activities in a more timely manner.

Energy-saving activities using our proprietary WSN[R&DCenter]indoorenvironment(temperature,humidity)By leveraging our proprietary wireless sensor network technologies, we are monitoring the temperature/humidity in the building and electricity consumption in real time. We are conducting energy-saving activities through fine-tuned management.

Real-time monitoring of environmental conservation facilities[TAIYOCHEMICAL]environmentalconservationfacilityoperationdataWe are automatically collecting operation data of environmental conservation facilities at domestic and overseas sites and conducting centralized monitoring. Based on the collected data, we provide operational advice to local sites.




14


Appropriate Management of ChemicalSubstances

ChemicalManagementFramework

PRTRLawCompliance

Ozone-depletingSubstances

The Taiyo Yuden Group has adopted its own Chemical Substances Control Standards. These standards define which substances are to be prohibited, reduced, and managed.To tighten up control, we set up a chemical substances management structure specifying the persons in charge and their responsibilities.

In order to reduce the risks that chemicals impose on the environment, the Taiyo Yuden Group reports to the government the amounts of chemicals released to the environment (air, water, and soil), and waste chemicals transported and recycled under the Japanese Law for Pollutant Release and Transfer Register (PRTR). The government publishes the records and a database of these quantities making them widely available to members of the general public.

We do not use ozone-depleting substances in our production processes. Although we use HCFC as a coolant in air conditioners and other equipment, we carry out appropriate collection and disposal.

Towardoffenvironmentcontaminationwithchemicalsandadverseeffectsonhumanhealth,wehavebannedtheuseofforbiddensubstances,implementedachemicalmanagementframework,andareworkingonreducingemissionvolumes.

PRTRRestrictedSubstances

Prohibitedsubstances Cadmium, compounds containing cadmium, mercury, compounds containing mercury, hexavalent chromium compounds, etc.

Substancestoberestricted Lead in ceramic in capacitors, lead in ceramic or glass frit, dibutyltin compounds, etc.

Substancestobereduced Toluene, REACHSVHC (substance of very high concern), xylene, etc.

SubstanceNumber

Chemical Substance NameEmission(ton/year)

Amount Transferred(ton/year)

Amount Recycled(ton/year)

71 Ferric chloride 0.0 23.1 0.0

82 Silver and its water-soluble compounds 0.0 0.0 13.8

87 Chromium and trivalent chromium compounds 0.0 0.0 0.6

272 Water-soluble copper salt 0.0 0.2 0.1

300 Toluene 17.4 5.6 26.5

SubstanceNumber

Chemical Substance NameEmission(ton/year)

Amount Transferred(ton/year)

Amount Recycled(ton/year)

306 Hexamethylene diacrylate 0.0 4.2 0.4

308 Nickel 0.0 0.5 26.3

309 Nickel compounds 0.4 4.9 18.2

405 Boron compound 0.2 0.2 0.0

438 Methylnaphthalene 0.2 0.0 0.0

Note: Target chemical substances and their incoming amount shown refer to substances for which their incoming amount exceeds 1 ton in compliance with the PRTR Law.Emission: This refers to the total emission into the atmosphere, water, and soil.Amount Transferred: This refers to the amount whose disposal is outsourced to an industrial waste contractor outside the business facility concerned.




TargetChemicals

*TGS: Taiyo Green Strategy

Supervises chemical substance management for his/her business unit, based on its activities

Comply with theChemical Substances Control Standards

Consider replacements for restricted substances and those to be reduced,product assessment for new products

Prevent the purchase of components containing toxic substances, in compliance with green procurement

Gathers information on chemical substances relating to laws, regulations, customer’s needsand requirements, etc., and updates and maintains chemical substance management

Body in charge of discussing and examining activity policies for chemical substance management

Officer responsible for organizing the whole management of chemical substances (Officer in charge of Quality)

Individual responsible for coordinating activities ofhis own business unit

Promotes the activities of the entire group (Products and Environment Division)

TGS*Committee

Chairman

GeneralManager Secretariat

ManufacturingDivisions EngineeringDivisions MaterialsProcurementDivisions

15


Achievement Levels for Medium-TermOccupational Health and Safety Targets

FundamentalPrincipleofSafety&HealthandTargets

FY2014Work-relatedAccidentsandSafetyIndicators

In order to realize our health and safety philosophy of “creating a workplace where employees can work without anxiety,” the Taiyo Yuden Group has drawn up group-wide medium-term plans. The medium-term plan is set to prevent industrial accidents by clarifying action targets for each 5Ms (Man, Machine, Method, Material, Measurement) and by setting a target incidence rate of injuries and illness for numerically evaluating the result of such efforts.

In FY2014, the medium-term target regarding the incidence rate of injuries and illness for the entire Group was less than 0.04, and we were able to achieve this by resulting in 0.03 (see G1). In FY2014, the accident frequency rate for the entire Group was 0.94 (see G2), and the danger ratio was 0.0032. We are promoting countermeasures for occupational accidents and occupational disease by conducting risk assessments in all workplaces. We found no workplace with high-risks. We will continue to work on activities geared toward zero work-related accidents in terms of 5Ms based on the medium-term health and safety plan for the future.

AllemployeesparticipateinhealthandsafetyeffortsbasedontheFundamentalPrincipleofSafetyandHealthoutlinedintheTaiyoYudenGroupSafetyandEnvironmentCharterandimplementedaccordingtoOHSAS18001specifications.

G1:Trendsinincidencerateofinjuriesandillness G2:TrendsinAccidentFrequencyRate

Total actual number of hours worked by registered workers

Number of the victims of industrial accident (at least one workday lost)

＝ × 1,000,000

Taiyo Yuden Co., Ltd. (Group as a whole)

0.00

0.01

0.02

0.03

0.04

0.05

2013 2014 2015 FY

Target : Less than 0.04

0.02

0.03

Taiyo Yuden Co., Ltd. (Group as a whole)Manufacturing

0.2

0.4

0.6

0.8

1.0

1.2

2010 2011 2012 2013 2014 FY

0.981.05

0.100.15

0.090.150.15

1.00 0.94




5MsforFY2013-FY2015Medium-termTargets

Man •Creationof“Safeworkplace”culture

Machine •Reachingfortheworld’sstandardslevel

Method •Standardizationofproceduresforsafework

Material •Minimizationoftoxicityanddangerofchemicalsubstances

Measurement •Strengtheningofcheckingsystem

FY2015Targets Achievementlevels

Incidencerateofinjuriesand

illness


illness

AccidentFrequencyRate

lessthan

0.04 0.03

Medium-term Plan TaiyoYudenGroupOccupationalHealthandSafetyManagementPlan

In order to ensure the well-being of our workers, who are an important resource of the company, we shall pursue workplaces which always maintain safety and where employees can work in confidence while maintaining the health of our workers.

Total actual number of hours worked by registered workers

Number of the absentees due to industrial accident (at least one workday lost)( ) )( Number of the absentees due to occupational

injury (at least one workday lost)＝

＋× 200,000


illness

PrincipleofSafety&Health

16


Efforts and Status 2-1

Man

Measurement

Machine

Method

Material

Creation of “Safe workplace” cultureIn order to create a “Safe workplace” culture, the educational system, which is the foundation of the entire Group, and the level of stratified training are improved for increasing the knowledge of all employees, and it enables them being aware of health and safety. In FY2014, we investigated the content of the education given at each site as the basic knowledge that employees possess varies from country to country, and found that the shared knowledge on health & safety varied from site to site. Therefore, we identified key educational issues and prepared education materials based on information collection from the ILO (International Labour Organization) and other sources, held training for educators at the sites, and started an education program that is common across the group with the aim of having all employees possess the same knowledge on health & safety. From now on, we will continuously improve the education systems and implement activities to ensure that all employees are conscious of health & safety and take actions based on such knowledge.

Strengthening of check systemIn order to strengthen our safety check system, we have been improving our Occupational Health and Safety Inspection (Health and Safety patrol), the extraction of problems, and implementation of measures against them based on the Genba, Genjitsu, Genbutsu (actual place, actual situation, and actual product) principle. In FY2014, an audit team consisting of health and safety experts was formed, visited sites, and checked the implementation status of the health and safety basic rules from the same viewpoint and based on the same standards. In addition, we gave improvement instructions to sites and persons in charge in the field based on excellent case examples of top runners to reduce gaps in the level of activity. From now on, focusing on risk extraction and measures during irregular work, we will conduct checks based on the Genba, Genjitsu, Genbutsu principle.

Reaching for the world’s standard levelIn order to reach the world’s standard level of machine safety operations, reviews of “Machine Safety Standards,” which specifies risk prevention commonly acknowledged for production machine, have been initiated, and we have been working on the improvement of the evaluation accuracy based on the standards. In FY2014, realization of a safety circuit configuration and safety measures during transport of machine were added to the Machine Safety Standards for the purpose of standardization. In addition, we trained our employees to be machine safety experts (Safety Sub-assessor Certification) to assist safety assessors and strengthen the operation system of machine safety activities. Further reviews of the standards will be initiated, and the standards will be evaluated from the machine safety experts’ point of view.

Standardization of procedures for safe workWe listed potential dangers in all operations, and we have been establishing and reviewing procedures so that operators can work in a safe and hygienic environment. In FY2014, in accordance with the basic rules for the entire Group, we have extracted and introduced tasks that require lockout and tagout. In addition, we have established a rule for ergonomics measures, started the identification of tasks that put excessive burden on the human body, and also started implementation of measures against them. The ergonomics measures will be implemented in compliance with the new basic rules.

Minimization of toxicity and danger of chemical substancesIn order to minimize toxicity and danger of chemical substances, measures against risks of operations in handing chemical substances are continuously implemented. On piping carrying chemical substances and the like, indication of contents and other information is attached so that actions can be promptly taken in the event of emergencies including leakage, but the indication positions and indication methods vary from site to site. Therefore, in FY2014, we established a basic rule to unify these indications and modified the piping indications. From now on, we will evaluate the levels of measures against risk related to chemical substances and promote activities to minimize the risk levels.

Group-commoneducationatsiteinChina

Evaluation bymachine safetyexperts

Lockout

Indicationsonpiping




17


Efforts and Status 2-2

Health① Maintaining low incidence ratio for mental health problemsIt has been over 10 years since the group introduced a mental healthcare program. Efforts such as “counseling” and “support for leaving of absence and returning to work” have taken root. In FY2014, following “line care training” for acquisition of basic knowledge on mental health, we gave training for harassment prevention to all managers and supervisors. We have also continuously implemented stress checks by means of the web system to enable employees to “find their own stress and address it”. Counselors, nurses and public health nurses are available for individual counseling for those who have been identified as having high stress in the stress check. In addition, we also started self-care training in small groups under the themes of “communication experience,” “counseling on experience” and “coping with stress.” We will continue to promote activities that focus on promoting mental health so that it is possible for all employees to work in good health with early detection and treatment of any problems.

② Keeping down abnormal checkup findingsIn order to keep down abnormal checkup findings, we continue to provide (1) exercise guidance, (2) health guidance and (3) nutritional guidance, promoted mainly by nurses and public health nurses at each site. For recovery from lifestyle-related diseases, we have established and are running a health improvement program for those who have been identified as in need of health guidance from the results of regular health checks. In FY2014, we gave exercise lessons. We gave a lecture on the importance of periodical exercise and locomotive syndrome to motivate the participants to start exercising. We will continue to promote activities that focus on preventing and improving lifestyle-related diseases so that it is possible for our employees to work in good health.* Locomotive syndromeThis refers to the phenomenon of becoming susceptible to falling and bone fractures caused by bone or joint disease, loss of muscle strength, and deterioration of body balance capability. A person with this syndrome is at high risk of becoming unable to live independently and requiring nursing care.

0.0

0.2

0.4

0.6

20142013201220112010

Taiyo Yuden Co., Ltd.（％）

FY

0.4 0.4

0.20.3 0.3

G1:IncidenceRate

Self-care training

Exercise lesson




Mental Healthcare System

Line care

In-house staff care

External careSelf care

Individual

Manager ofAdministration

Dept.

Operationsmanager

Psychologicalcounselors

(Medical staff room)

Managersand supervisors

(Superiors)

Outside healthcareprofessionals(Psychiatrist)

Clinical psychotherapists and

industrial counselors

Contractedindustrial physician

Collaboration

Consultation /Collaboration Collaboration

Consultation Treatment

Consultation / Advice

Documents

2015 - YUDEN · Safety & Environmental Report 2015 CONTENTS Editorial Policy Scope of Disclosure 02 03 04 05 06 Environmental 07 08 09 10 11 12 13 14 15 16 17 Building Safety and