Keihin Corporation Environmental Report 2015 · Corporate Profile 35 Related Data 36 At the core of Keihin Corporation are two fundamental ... Latest NGV system for gas-fueled vehicles

Keihin Corporat ionEnvironmental Repor t

2015

Keihin

Keihin Environmental Report 2015

Keihin Corporation

Keihin CorporationKeihin Sakura CorporationKeihin Nasu CorporationKeihin Watari Co., Ltd.Keihin Electronics Technology Inc.Keihin Valve Corp.Keihin Thermal Technology Corporation

Japan

China

Asia

Europe

Americas

INDEXPROFILE

■ Environmental information disclosure by Keihin 2

■ This year in the Keihin Group 4

■ A message from our President 6

■ Fundamental stance on the environment 7

■ Global goals and business figures for fiscal 2014 8

■ Environmental management 10

■ Environmental conservation results for fiscal 2014 14

Product Development Segment

Purchasing Segment

Manufacturing Segment

Transport Segment

Social contribution activities

Environmental activities in Japan and oversea

■ Third-party Evaluation 34

■ Corporate Profile 35

■ Related Data 36

At the core of Keihin Corporation are two fundamental

ideas: Respect for Individuals and The Five Joys.

Respect for Individuals is the idea that independent

individuals, with a free way of thinking and conviction,

can go forward together with mutual respect,

a fair attitude, sincerity, and mutual trust.

The Five Joys is the idea of sharing joy with society,

customers, suppliers, shareholders, and ourselves.

Keihin is determined to promote business activities

that are grounded in these fundamental ideas and in

the mission statement “Keihin will contribute to the

future of mankind by the continuous creation of new

value.”

At Keihin, we release environmental information through our website

(http://www.keihin-corp.co.jp/english/).

In this environmental report, we introduce Keihin’s Fundamental

Environmental Stance, Environmental Goals for the Future, and

Environmental Conservation Activities Promoted in Various Segments, as

well as details of Keihin’s approaches to the environment, from planning

to achievements.

We are releasing this report as part of our year-round environmental

activities in the hope that you will assess our efforts. In addition, we

hope to use this report as a communication tool to further enhance our

environmental activities.

■ Scope of this report

○Period covered: Fiscal 2014 (April 2014 through March 2015)○Regions covered: All Keihin bases and all subsidiaries in Japan and overseas○Domestic companies covered are Keihin and other subsidiaries listed below.

*Data concerning our domestic and overseas business bases is posted on our website.

Environmental information disclosure by Keihin

Keihin Environmental Report 20152 Keihin Environmental Report 2015 3

This year in the Keihin GroupWe addressed the reduction of the environmental load worldwide.Here we introduce our main efforts including Keihin’s environmental activities.

4April

5May

6June

10October

11November

12December

7July

8August

9September

1January

2February

3March

Condenser fitted to the American FordLincoln MKC

Established new organizations such as the AdvancedTechnology Research Department,launched 12th medium-term business plan

Started voluntary application of InternationalFinancial Reporting Standards (IFRS)

38 companies voluntarily applying IFRS at present*First application in auto & automotive product industry

Our product adopted for the JapaneseHonda CBR650F

Products for Honda Fit increasing worldwide

Vehicles fitted with electronic fuel injection systems(FI systems) for small motorcycles increasing globally

Production of electronic control products forautomobiles launched at Indonesian subsidiary

Carried out tree-plantingat Keihin Kizuna (bond-promoting) Forest

High-efficiency production line establishedfor making small EGR valves for automobiles,production launched

Keihin product installed in HondaEU55is electrical generator

Exhibited for first time at InternationalAuto Parts Show in Germany

Preparations started for production of power modulesfor hybrid vehicles in Miyagi Prefecture

Thai subsidiary recognized as green company,received Outstanding Company Award fromThai Ministry of Industry

Our products installed in the Japanese Honda PCX (left photo),Indonesian Honda Vario 125 and Vietnamese Honda Vision

Our products installed in American Honda Fit (left photo),Chinese Honda Fit and Asian Honda Jazz.

Keihin products also adopted for Chinese Honda Vezel (left photo) and XR-Vand Asian Honda HR-V

Keihin product adopted for American Honda CR-V Launched integrated production ofair-conditioning products andheat exchangers at US subsidiary

No.3 plant for motorcycle products goesfully operational at Indian subsidiary

Parts for Honda Vezel expanded globally

*At end of March 2015

Latest NGV system for gas-fueled vehiclesadopted for Thai Honda City CNG

Established subsidiary in China producingair-conditioning products for automobiles

Held parent-child traffic safety classesin Saitama and Miyagi bases

Carried out beach cleaning activityat Ishinomaki, Miyagi

Keihin product installed in American Acura TLX.

Keihin product fitted in American Ford Mustang

Production facilities developed in the aim offurther improving productivity

Keihin product adopted forJapanese Honda S660

Global cumulative production of carburetorsfor motorcycles and power productsreaches 600 million units

Concluded agreement with Marumori, Miyagito take in evacuees in case of disaster

Joint research division opened at Institutefor Fluid Science, Tohoku University

Keihin product fitted in Japanese Honda Legend

Earned highest ever ranking in Nikkei newspaper’sCorporate Environmental Management Survey Keihin product adopted for Japanese Honda Jade

Keihin product installedin Triumph Tiger 800 XCx

FI system for small motorcycles installeAdin Indonesian Yamaha Jupiter Z1

Xiantao(KWH)

Shenyang

Dalian

Nanjing

Shanghai

Guangzhou

FoshanDongguan

Wuhan

Trade name: Keihin (Wuhan) Automotive Components Co., Ltd.Main production items: Air-conditioning products for automobilesAnnual production capacity: 400,000 itemsFull-time employees: 60 (estimated for fiscal 2016)

10th place in manufacturing industry,5th place in automobiles or auto parts

Keihin Environmental Report 2015Keihin Environmental Report 2015 54

Fundamental stance

Fundamental stance on the environment

Toward the realization of a sustainable society

A message from our President

Aiming for global environmental management

To alleviate the environmental load and create a sustainable

society, we have carried out unified global environment

management and consistently thought and acted on what is

best for the planet, the environment, society and communities.

For forward-looking environmental maintenance, we have set

ourselves the target of a 25% cut in CO2 emissions by fiscal

2020, taking fiscal 2000 as the starting point.

We will also work in all segments to halve our CO2

emissions, landfill waste, and water consumption by fiscal

2050 and to minimize them thereafter. Part of this will be a shift

in our attitude from “energy we use” to “energy we create.”

Environmental Initiatives that set our course of action for environmental conservation

Until now, we have strived to develop environmental load-

reducing products and cut CO2 emissions and waste in our

production bases. We have stated our ideas on environmental

conservation in the form of the Environmental Initiatives and

set a course of action for individual employees to act with an

awareness of their leading role.

Based on the Environmental Initiatives, all Keihin employees

will work hard to undertake activities that will contribute to the

reduction of environmental loads and the establishment of a

recycling-oriented society on a global scale.

Keihin recognizes that environmental conservation by corporations is strongly linked to maintaining a healthy global environment. As a responsible member of society, Keihin will actively endeavor to reduce the environmental load through all areas of our corporate activities in order to protect the global environment.

EnvironmentalInitiatives

Course ofAction

1 Keihin will strive to develop and supply products that are environmentally friendly, clean, and safe.

2 Keihin will strive to recycle materials and conserve resources and energy at the development, production, distribution, procurement and sales stages of our business activities.

3 Keihin will, as a member of society, proactively try to find ways to sustain the environment on a global scale.

4 Keihin will, as a corporate citizen, endeavor to actively support and cooperate in environmental protection in the community and to earn the respect of society.

Humankind has achieved a tremendous level of convenience with the spread of motorization, but this has depended on the burning of fossil fuels as a source of energy, with the unavoidable negative impact of exhaust fumes on the environment. The effects of this environmental damage are climate change and the health hazards of air pollution. Climate change in particular is being addressed as a global problem. Against this background, the 21st Conference of Parties to the UN Framework Convention on Climate Change (CoP21) being held at the end of 2015 is expected to reach agreement on temperature rise targets and a CO2 framework.

Being so heavily involved with motorization, we also see

environmental measures as one of the key challenges for our business. In 2014, we engaged in environmental activities in a variety of segments including eco-friendly product development, manufacture, distribution, procurement, and so on.

In the small motorcycle and power product sector, our electronic fuel injection systems (FI systems) for small motorcycles, including the world’s smallest injector that meets the emission regulations of countries where environmental awareness has risen, were fitted to the Honda Group’s motorcycles sold in Japan, Indonesia and Vietnam. With an FI system for small motorcycles also installed in the Yamaha Jupiter Z1, we expanded globally. In the large motorcycle product sector too, our FI systems were fitted in the Honda CBR650F and Triumph Tiger 800 XCx. As for power products, one of our FI systems was installed in Honda’s EU55is electrical generator.

And in the automobile product sector, our electronic control and fuel supply products including those for hybrid vehicles were fitted in the Honda Legend launched in Japan. We supplied gas fuel products to customers worldwide too, such as our Keihin original new system fitted in the Honda City CNG marketed in Thailand. With the supply of condensers (heat exchangers) to the American Ford Motor Company, Keihin products were installed in more and more cars worldwide such as the Lincoln MKC and Ford Mustang.

In the current fiscal year, we have strengthened our international environmental efforts by establishing a new Global Environmental Committee to review our environmental management enhancement system. As part of this system, we have addressed the reduction of carbon dioxide emissions, including those of our suppliers, through energy conservation and resource conservation in the manufacturing and transport segments.

Looking ahead, we will tackle the development of motorcycle, power and automobile products with an eye on the future and, to achieve this, bolster our production technology capabilities. With the combined strength of our 20,000-plus employees worldwide, we will endeavor to realize our corporate principle, “Keihin shall contribute to the future of mankind by the continuous creation of new value”.

President and CEOTsuneo Tanai


Japan

Manufacturing....6 locations

Development......2 locations

Others ................4 locations Americas

Manufacturing....7 locations

Development......1 location

Europe

Manufacturing ..2 locations

Development......1 location"

ChinaManufacturing....4 locations


AsiaManufacturing....11 locations


Others ................2 locations

Keihin is promoting environmental load reduction activities on a global scale to alleviatethe environmental impact of corporate activities.

Toward the reduction of environmental load

1. Promote environmental load reduction in each region

2. Expand made-in-Japan technologies globally

3. Promote environmental activities as a group-wide concerted effort

4. Establish environmental load reduction goals in all segments including manufacturing and development segments and promote activities with a long-term vision

Create New Value by Utilizing Keihin’s Collective Global Power

Improvement of the basic unit for global environmental load (1% down from previous year)Reduction of environmental loads in all segments

Mid- to long-term environmental goals from fiscal 2014

• Nikkei newspaper 18th Environmental Management Survey, overall in manufacturing industry ......Ranked 10th (out of 429 companies)

Auto & automotive product division ......5th (among 34 companies)

Evaluations by external organization

• Product development segment .. Contributed to fuel savings by reducing size and ................................................ weight of products for motorcycles and automobiles

• Purchasing segment ................... Reduced environmental load of suppliers• Manufacturing segment ............. Improved basic unit of global environmental load

................................................ Increased utilization of renewable energies• Transport segment ..................... Cut CO2 in transport and reduced packaging materialsSucceeded overall in each segment.*For more details, see the page for each segment...................... P14 - P25

Main achievements in FY2014Stance on reducing the global environmental load

Global goals and business figures for fiscal 2014

*12th Mid-term (FY2014-2016) Global Policy

Introduce curbs mainly in Americas and Asia where environmental load is high

FY2020 goal 25% cut in CO2 emissions

FY2050 goal Halve all environmental load 2000 2014 2015 2016 2020 (FY)(1,000 t CO2)

25% reduction18% reduction350

300

250

200

150

100

50

0

■ CO2 trend


Environmental management

Keihin has established Environmental Initiatives that set the course of our environmental conservation.To thoroughly implement these initiatives, Keihin has also formed a committee that carries out environmentalload reducing activities.The following describes Keihin’s system for working on environmental conservation activitiesand the roles within this system.

System and Roles

Global Environment CommitteeChair: PresidentVice-chair: Executive officer responsiblefor the environment

Secretariat

JapanEnvironment Subcommittee

AmericasEnvironment Subcommittee

AsiaEnvironment Subcommittee

ChinaEnvironment Subcommittee

• GHG Subcommittee

• Environment ISOSubcommittee

• Product EnvironmentSubcommittee

• Environmental AccountingSubcommittee


• Environment ISO Subcommittee

• Product Environment Subcommittee

• Environmental Accounting SubcommitteeConducted around the Japan Environment Subcommittee





Keihin’s system and vision for environmental conservation are

described below.

In order to accurately monitor domestic and overseas trends and

implement industry top level environmental management on the

basis of the environmental management system, Keihin has reviewed

its system since fiscal 2014 and further reinforced its environmental

management by setting up a Global Environment Committee.

This Global Environment Committee is made up of four regional

subcommittees, the Japan Environment Subcommittee, Americas

Environment Subcommittee, Asia Environment Subcommittee, and

China Environment Subcommittee. They recognize that disclosing

their activities and results is the correct attitude to take, and they

will, as standard, disclose their results to society.

●GHG (Greenhouse Gas) Subcommittee

This subcommittee assesses the actual situation with raw materials, energy consumption, chemical substances, waste, etc., as they relate to manufacture and development, thereby reducing substances of concern, including CO2 emissions.

●Environmental Accounting Subcommittee

This subcommittee works to win the confidence of society by calculating and clarifying the environmental costs required for environmental conservation and improvements and by disclosing environmental information to society.

●Environmental ISO Subcommittee

In addition to community contribution activities, this subcommittee is also engaged in activities to reduce the environmental load in manufacturing processes in order to improve, maintain, continue, and upgrade the environmental management system.

●Product Environment Subcommittee

In response to the changing environmental needs of the world, this subcommittee promotes the development of environmentally friendly products and works to reduce the environmental load through resource and energy saving.

Global Environment CommitteeIn order to win the confidence of society, the Global Environment Committee manages and promotes environmental activities to try and reduce the global environmental load, and discloses information to society through environmental reports etc.

AsiaISO 14001

7 locations

JapanISO 14001

14 locations

EuropeISO 14001

2 locationsAmericas

ISO 14001

5 locations

ChinaISO 14001

4 locations

32 locationscertified worldwide

■ Environmental Audits and Mechanism


Regional Acquisition of Environmental Management Certification and Environmental Audits

For the purpose of reducing the environmental load, Keihin encourages its bases to acquire certification of the international standard ISO 14001. So that the PDCA cycle of the environmental management system runs well, an action plan is formulated based on the annual goals set by the top management, environmental activities carried out, and their operation and management checked via environmental audits.

In China, Foshan Branch of Keihin-Grand Ocean Thermal Technology (Dalian)

acquired new certification in January 2015.

Worldwide, 32 locations have acquired ISO 14001 certification. Other overseas

bases are currently working to obtain certification in fiscal 2016.

An environmental audit is conducted

by an external examination body

annually. In this external audit, minor

nonconformities and cases to be put

under observation have been pointed

out, but all have been corrected.

Internal audits are also carried out in

a similar manner.

Internal auditors improve their

audit skills by attending an annual

seminar. In fiscal 2014, 42 new

internal environmental auditors were

appointed.

■ Status of acquisition of environmental management system certification (as of fiscal 2014)

Audit directions

Examination Examination

Implementation

Objective,goal,and

action plan

Operation andimplementation

records

Internal audit

Managementreview

Implementation

External examinationbody

Examination of environmentalmanagement system

Top management Internal environmentalauditor

Review of environmentalmanagement system Verification of compliance

and operation

EnvironmentalPolicy

PLAN

CHECK

ACTION

DO



Environmental Accounting

(Millions of yen) FY2012 FY2013 FY2014

Category Main endeavors Amount invested Cost Amount

invested Cost Amount invested Cost

Cost within business areas

Pollution control cost Prevention of air pollution, water contamination, soil pollution, etc. 60 49 8 12 0 17

Global environmental conservation cost Activities for global warming prevention, ozone layer protection, etc. 80 14 61 4 20 2

Resource recycling cost Treatment, disposal, reduction, recycling, resourcing, and proper handling of waste 0 57 0 128 0 117

Upstream/downstream cost Recycling and recovery of raw materials for manufacture, use of recycled materials 6 116 0 98 0 76

Management activity cost Environmental management operation man-hours, operation of environmental management system, environmental education for employees 0 140 0 96 0 79

Research & development cost Environmental measures for products, research & development and design for reducing environmental load 637 10,101 72 9,817 399 9,742

Social activity cost Clean activities, environmental learning “on demand,” nature protection activities 0 3 1 5 0 2

Environmental damage response cost Soil survey, contamination levy 0 1 0 1 0 1

Total 782 10,481 142 10,161 419 10,036

■ Volume generated or consumed

Class unit Segment FY2012 FY2013 FY2014

CO2 emissions t-CO2

Manufacturing Segment 27,751 25,882 22,033

Development Segment 7,494 8,510 7,782

Other Segments*1 209 195 168

Company total 35,454 34,586 29,983

Water resource consumption 1,000 m3

Manufacturing Segment 288 224 159

Development Segment 47 53 43


Company total 346 287 210

Volume of waste generated Tons

Manufacturing Segment 1,158 878 598

Development Segment 83 36 41


Company total 1,242 915 639

Volume of recyclables generated Tons Company total 1,229 1,144 976

Volume/transfer*2 of specific chemical substances Tons Company total 25 29 27

1 This report was compiled according to the Environmental Accounting Guidelines and Guidebook published by the Ministry of the Environment.

2This report does not include depreciation costs or electric power charges for environmental facilities.

3The following are included in the abovementioned accounting.

■ Companies subject to accounting

Keihin Corporation / Keihin Sakura Corporation / Keihin Nasu Corporation / Keihin Watari Co., Ltd.

Keihin Electronics Technology Inc. / Keihin Valve Corp. / Keihin Thermal Technology Corporation

■ Period covered: April 1, 2014 – March 31, 2015

■ Environmental Accounting

*1. Administration segment (head office, sales office, welfare facility) *2. Substances subject to notification under PRTR Act


Risk Management

Relief measures

Subcontractor

Relevant localgovernment organization

Top management

Main Departmental Manager

Security Room

Status report

Status report Statusreport

Statusreport

Report

Report

Report

Accident

Discoverer

Environmental Control Manager

Direction/Action

Direction/Action

Direction/Action

Requestfor action

On-site confirmation

PrimaryReport

Facilitiescontrol

departmentPerson on duty(nighttime/holidays)

■ Observance of laws and regulations

As a system for compliance, each executive officer

responsible serves as a compliance officer and

regularly checks whether laws and regulations are

strictly observed.

With regard to risks, each executive officer

responsible for the promotion of action against

risks serves as a risk management officer to

prevent environmental risks.

■ Dealing with emergencies

At Keihin, each base and department formulates a

procedure or system for preventing and reducing

contamination, which is intended to minimize

the environmental load, in addition to observing

the emissions standards required by laws and

regulations so that we can properly prevent

and deal with accidents. We regularly conduct

emergency response drills for possible accidents

with environmental equipment in preparation

for emergencies. In the case of an accident that

adversely affects the area outside of a plant or a

situation that deviates from a regulatory value,

we follow the Emergency Response Flowchart to

minimize its effects on the environment.

■ Environmental risk measures in risk management

◆Global implementation status of measures

・Keihin has identified 49 risk items, including environmental risks, that could significantly impact our business activities.

We manage risks generated by external and internal factors. To try and prevent risks in advance or stop their escalation,

there is an annual identification of risk items according to a multifaceted assessment of severity, urgency and potential for escalation,

followed by quarterly reviews by our risk management officers.

◆Future plans developed together with environment

・We are unfurling plans in Japan and overseas aimed at the reduction of environmental risk (environmental pollution, waste, waste water, air

and water quality, qualified personnel) and greater awareness and spread of overall risk management. We are also currently strengthening our

disaster countermeasures, including environmental ones, through the “genba, genbutsu, genjitsu” [actual site, actual articles, reality] principle.

◆Content of future expansion and emphasis

・Keihin has established Emergency Control Regulations*1, which are applied globally.

By standardizing the guidelines for risk management, all group companies conduct the same level of risk control.

We are also carrying out global training to raise the level of risk management, including environmental risk.

As well as clarifying the process from risk analysis and prevention to manual updates, training and training verification, and problem

identification, we are also developing personnel education to cultivate a “sense” for risk prediction and prevention.*1. Keihin Emergency Control Regulations are provided in Japanese, English, Chinese and Thai.

They are also available in other languages as required.

■ Emergency Response Flowchart（ daytime nighttime/holidays）



Motorcycle and Power products

Throttle body with fuel injecting solenoid

valves for fuel supply, which regulates air

volume drawn into the engine

Small engine control unit that controls

driving conditions with the optimal amount

of fuel injection

Contributes to making car bodies smaller due to compact layout

Reduced size and weight due to integration of parts

Throttle body

Honda PCX

Device body

Self-contained non-contact throttle position sensor for DBW

Throttle body Engine control unit

We develop fuel supply systems that comply with tightened emissions regulations and fit them into various products.

■ Electronic fuel injection systems for motorcycles

■ Power products

InjectorThrottle body

Keihin products are installed in the Honda EU55is electrical generator.

Fuel consumption 15% better than previous model

Engine control unit

Honda EU55is

Honda CBR650F

Yamaha Jupiter Z1

Triumph Tiger 800 XCx

We develop next-generation products that are compatible with the diversification of energy,as well as environmentally friendly technologies for low fuel consumption and clean emissions,alternative fuels, and hybrid vehicles.

Environmental conservation results for fiscal 2014




Automobile products

■ Products for hybrid vehicles

Keihin considers the development of environmental technologies to be an important theme and is committed to the technological development of

products for hybrid vehicles. The hybrid vehicle products we have developed so far include electronic control products that control the motor and

battery by receiving signals from the engine control unit.

In 2015, an electronic control product that is compatible with the higher output of a motor and the higher voltage of a battery while having a

reduced size was adopted for the Honda Legend. It helps improve fuel consumption with a more stable hybrid, by controlling a fuel injection engine

and a single motor, and twin motors that can drive the left and right rear wheels separately.

■ Products compatible with fuel injection engines

Keihin sees environmental technologies as an important theme and is committed to the technological development of products for fuel injection

engines. A direct injection engine injects fuel directly into the cylinders, a technology that can greatly improve fuel consumption and environmental

performance. In August 2014, various products were adopted for the Honda Acura TLX marketed in the USA, including products compatible with

its direct injection engine.

Honda Legend

Intake manifold Intake manifoldFor a V6 engine Made of magnesium

DBW throttle bodyReduced weight

ECU for active control engine mount

Solenoid lock

Spool valveReduced weight

ECU for four-wheel drive

ECU for engine controlUsing an L4 housing achieves

reduced size and weight

ECU for front motor and battery control ECU for control of 2 rear motors

Solenoid for active control engine mount

Acura TLX

■ Products for alternative fuels

The latest NGV system for gas-fueled vehicles that run on natural gas etc. performs as well as, or better than, the previous model and contributes

to lower fuel consumption due to its reduced size and weight. This system was adopted for the Honda City marketed in Thailand.

Honda (Thailand)City

●The required injection volume of CNG/LPG is calculated and the injectors are controlled according to the gasoline injection signal from the ECU.

●A housing of ECU for gasoline engines is used, reducing size and weight.

Fuel pipe assembly

2nd ECUPressureregulator

Oil trap filter

■ Air conditioning products

The compact, lightweight and high-performance HVAC was adopted in the Honda Jade released in Japan, helping to improve fuel efficiency,

reduce CO2 emissions, and enhance the in-car environment. Our condenser (heat exchanger) was also adopted for the Ford Mustang.

CondenserHVAC

Honda Jade


Environmental Activities in the Purchasing Segment

Purchasing Segment

■ Establishment of Green Purchasing GuidelinesTo achieve globally environmentally friendly manufacturing and provide safe, clean products to our customers, Keihin established its Green Purchasing Guidelines in 2010. We continue to implement the guidelines and share them with suppliers. In the procurement process for parts, etc., Keihin controls substances of concern and preferentially purchases parts, etc. compliant with the standards defined in the guidelines. In this way, we contribute to the manufacture of environmentally friendly products.

■ Product approach to the environmentIn connection with the chemical substances contained in our products, we perform advance investigations into the substances contained in all products purchased from suppliers.The Keihin Chemical Substance Management Standard has been updated to the ninth edition, and environmentally harmful substances are strictly controlled based on our rigorous criteria.

■ Environmental management at suppliersAmid rising awareness of environmental conservation due to climate change, Keihin is promoting environmental management in concert with suppliers. For suppliers who have not yet acquired official certification, we have established and are promoting a Keihin ISO 14001 alternative certification system. *The Keihin ISO 14001 alternative certification system involves introducing dedicated environmental manuals as an ISO 14001-compliant Keihin version EMS. We promote its adoption by suppliers unable to acquire EMS certification from an official organization. Goals are set in the environmental program and monitoring is performed to grasp a monthly progress. From fiscal 2013, we began to promote suppliers’ self-auditing and Keihin evaluates the obtained results. We will continue our alternative certification system using this method.

■ Biodiversity survey resultsIn 2014, we conducted a biodiversity survey by asking our suppliers to complete a questionnaire. We are repeating this survey in 2015 in order to further improve our approach to biodiversity.

■ Segmental purchasing policy presentation

Date: April 16, 2014Participants: 249 people from 157 companies

■ Establishment of low-carbon supply chainWe started a greenhouse gas emission survey, including CO2 from suppliers’ production and distribution, in December 2010.We are now able to understand emissions smoothly and bi-directionally as we measure emissions from business activities and suppliers become familiarized with the operating method of the Global CO2 Management System introduced in fiscal 2012.

■ CO2 emissions by suppliers

0

100

80

60

40

20

(1,000 tons) (FY)2011 2012 2013

55

97

81

2014

71

Emissions increased from fiscal 2012 as the number of companies covered increased.Emissions decreased in fiscal 2013 due the expansion of energy saving efforts

■ Rate of CO2 emissions by suppliers in fiscal 2014

Scope1*1

Scope2*2

4766%

1623%

811%

Scope3*3

(1,000 tons) 2011 2012 2013 2014Scope1＊1 12 19 12 16Scope2＊2 39 55 51 47Scope3＊3 4 23 18 8Total 55 97 81 71

*1. Scope 1 Direct emissions from business activities*2. Scope 2 Indirect emissions from the use of energy*3. Scope 3 Other indirect emissionsItems in categories 4 and 9 of Scope 3 only (CO2 emissions from upstream and downstream transport) are categorized as seen from the supplier side.

■ Completed establishing environmental awards to recognize suppliers, presented first awards

At the Supplier Conference in January 2015, we presented awards for outstanding environmental efforts in fiscal 2014, and introduced some examples of initiatives.

Date: January 28, 2015Participants: 148 people from 134 companies

In the Purchasing Segment, we strived to reduce environmental loads based on the standards defined in the Green Purchasing Guidelines. In fiscal 2015, we will further reduce environmental loads based on the Global CO2 Management System which was introduced to establish a low carbon supply chain.

～ Promoting a sustainable low-carbon supply chain ～In the purchasing segment, we are striving to reduce the environmental load of the parts andmaterials we purchase by setting voluntary company standards and extending them to our suppliers.


Purchasing Segment

Content of presentation

Environmental survey activities

1. Biodiversity survey Survey continued with more specific content

2. CO2 emissions survey Ongoing environmental load reduction activities

3. Environmental awards Awards presented this year too for outstanding efforts

We will continue these three activities in future and so ask suppliers for their further cooperation.

Biodiversitysurvey results

1. Environmental load reduction activities

2. Social contribution activities

3. Community environmental activities

4. Environmental education activities

5. Information sharing

Efforts in each itemImplementation Not conducted

0

122

64

96

115

87

58

26

7

35(company) 122

Keihin Environmental Report 2015 19Keihin Environmental Report 201518


Material Flow

Input of resources

●Input volume of energy: 519,373 GJ *1

●Input volume of water resources: 159,000 tons

●Input volume of materials / substances Purchased volume of materials: 3,369 tons

●Input volume of chemical substances (PRTR*²-regulated substance): 26.9 tons

Manufacture/Assembly

●Volume of CO2 emissions: 22,000 tons

●Volume of chemical substances (PRTR*²-regulated substances) discharged:

•7.1 tons discharged into air 0 tons discharged into water •6.6 tons moved out of business facility concerned

●Total volume of waste discharged: 598 tons

●Volume of waste subjected to final disposal (landfill): 0 tons

*1. GJ: Unit of calorific value. The figure is the aggregate of all usage amounts converted into calorific values.*2. PRTR (Pollutant Release and Transfer Register) The Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and

Promotion of Improvements to the Management Thereof

INPUT

OUTPUTAs much as 97.0% of the waste yield is recycled.

In manufacturing activities,we place emphasis on energy and resource saving activities to reduce the environmental load.In addition to zero emissions, we are also striving to minimize the waste yield and reduce the release of chemical substances through the expansion of the three Rs (Reuse, Reduce, Recycle).



● For example, resin waste is crushed into pieces and recycled.



Energy and resource saving

■ CO2 emissions and basic unit index

We endeavor to reduce CO2 emissions by setting a target of a 1%

reduction from the 2008 level each year on a basic unit index basis

(CO2 emissions per sales amount).

In fiscal 2014, we achieved a reduction of 22% in contrast with the

target of 6%. The basic unit index was also 33% down compared

with fiscal 2008.

■ CO2 emissions and basic unit index (taking fiscal 2008 as 100)

2008 2010 2011

50

40

30

20

10

0

100

60 120

80

60

40

20

0（%）(1,000 tons) (FY)2012 2013 2014

2933

29

Basic unit index (%)CO2 emissions (1,000 tons)

28

100

88 85

28 26

8579

22

67

*We have reviewed our calculation of the basic unit index.

■ Examples of CO2 reduction

● Exhaust system improvements (air intake)

Power reduction effect: 29.1Mwh/yearCost effect: 0.6 million yen/yearCO2 reduction effect: 11.0 tons/year

● Oil cooler waste heat improvements


■ Energy usage ratio

Keihin is shifting its energy source from heavy oil to LNG and

electricity to reduce CO2 emissions, and our electricity dependence

has dropped below 80%.

■ Energy usage ratio by type

0

20

40

60

80

（%） LPGFuel oil AElectric power

FY2011 FY2012 FY2013FY2010 FY2014

7882 74 76 83

1012 11 9 11 136

15 15

6

■ Water resource consumption

Water consumption in the manufacturing segment in fiscal 2014

was 159,000m3, a 66% fall in the basic unit index compared with

fiscal 2000.

■ Water resource consumption and basic unit index

(taking fiscal 2000 as 100)

2000 2010 2011 2012 2013 2014

500

375

250

125

0

100

75

50

25

0（%）(1,000 m3) (FY)

Basic unit index (%)Tap water

468

233

67

222

66

174

114

64 6256

191

95

55

10059

34

100Groundwater

● Cooling water pump control improvements


Having established a long-term vision for the manufacturing segment,Keihin is addressing environmental load reduction in the form of energy and resource saving.

Zero emissions / Effective use of resources


■ Reduction of waste

We are reducing waste through the promotion of the 3Rs.*3Rs = Reduce, Reuse, Recycle

FY2000 FY2014 Reduction Rate

2,701 tons 598 tons 78%

■ Volume of waste disposed of and basic unit index

2000 2011 2012 2013 20142010

4,000

3,000

2,000

1,000

0

100

75

50

25

0（%）(Tons) (FY)

100

5042

Basic unit index (%)Waste yield (tons)

2,701

1,342 39 3422

1,138

1,158 905598

*The basic unit for waste is expressed as an index taking fiscal 2000 as 100.

■ Chemical substance release and transfer

Release and transfer of chemical substances was 64% down on

fiscal 2007. We will further reduce the use of chemical substances

and ultimately discontinue their use.

■ PRTR substance release and transfer, and basic unit index

2007 2011 2012 2013 20142010

50

10

20

30

40

0

100

20

40

60

80

0（%）(tons) (FY)

4636

100

4146

39

18 1621

54

1814

Basic unit index (%)Release amount (tons)

*Values were calculated from the results of domestic Keihin group companies. *PRTR (Pollutant Release Transfer Register) The Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof *We have reviewed our calculation of the release and transfer of chemical substances.

■ Internal disposal of water-soluble waste oil

Since the 2011 earthquake, have increased internal disposal by building a complex system that combines biotreatment.

In fiscal 2014, we reviewed our manufacturing items and reduced the generated amount of cutting oil, but were able to dispose of almost all of it

within the company. We are also reusing treated water.

■ Volume of industrial waste internally disposed of

2011 2012 2013 20142008 2009 2010

800

600

400

200

0(Tons) (FY)

505

159

547448

710

660622

295

578520 487

440 412 411

31

82

93

47

90 90100

100

25

50

75

0（%）

Basic unit index (%)Internal disposal (ton)Yield

Keihin will strive to reduce the environmental load to half by fiscal 2050 and also work to minimize those volumes. With the 3Rs as a basis, we will expand our reduction activities to minimize our impact on the environment.

Water-solublewaste oil

Separationof chemicals

Separatedsludge

Ca. 80 tons/yr

Ca. 50 tons/yr

Separatedwater Biotreatment Reuse of

treated water

Evaporation & volume reduction

treatment

Chemicaltreatment

Dischargeinto rivers(within permitted values)

Dehydratedresidue

Residue

Externalincineration

Internal disposal

*We have established our own unique internal disposal.

FY2007 FY2014 Reduction Rate

39 tons 14 tons 64%


5,000

4,000

3,000

2,000

1,000

80

60

40

20

0

100

0（%）（Tons）（FY）

Basic unit index (%)CO2 emissions (tons)

2004

100

3,916

200５

98

3,834

2006

98

3,843

2007

95

3,730

2008

92

3,614

2009

75

2,945

2010

77

3,028

2011

76

2,980

2012

74

2,897

2013 2014

42 35

1,642 1,380

Keihin is aiming for higher efficiency through a modal shift toward marine transportation and the global sharing of packing styles by product.

We are promoting the reduction of shipping and packing materials, such as by simplifying packaging,

reviewing the materials used, changing specifications, and increasing the use of returnable containers.

Commitment to the environment in the transport segment

Transport Segment

■ Reuse/recycling of shipping and packing materials

■ Returnable (reusable) individual packaging for overseas

Returnable outer cases for export are currently used at seven bases.

In addition, we recycle both returnable individual packaging boxes and

interior partitions. They are now used for exports to North America

and Thailand and will be expanded to Indonesia this fiscal year.

Led by Japan and in collaboration with our overseas bases, we

have reviewed our cardboard packaging specifications and changed

from 8 parts to 1 part (individual integral packaging). We have also

changed from wooden pallets to cardboard pallets and increased

load efficiency with tiered pallets.

■ CO2 emissions in transport segment

■ Environmental initiatives in product transport

We are extending our CO2 reduction through a model shift,

transporting to our overseas bases by sea (domestic vessels)

instead of overland. In fiscal 2014, we made this switch for exports

to Mexico, Indonesia and Thailand, thereby expanding such

transport to 12 bases.

We are making improvements aimed at reducing packaging

materials and increasing packing numbers and load efficiency. We

are addressing improvements aimed at meeting customer needs

(small-lot multi-item orders) and increasing load efficiency.

*Index taking fiscal 2004 as 100*CO2 emissions were recalculated in accordance with the Fuels Act.*Total CO2 emissions from product transport in 2013 were significantly lower due to our

customer policy brought in that year (HM transaction distribution)

●Reduction in industrial waste (cardboard, wood) Tons/year

Cardboard Wood

Waste 24t 24t

●Container load efficiency Case/year

Current Revision Reduction

Load efficiency 4368 9,984 2.3 times

Reduced numberof containers 84 37 47

Keihin

In the transport segment, we carry out activities such as increasing load rates through improved packing efficiency.


Transport Segment

Miyagi areaPort ofSendai Indonesia

Mexico(4 bases)

Ocean-going ship

Sayama area

Toho

kuEx

pres

sway

Suzuka area

Keihin

Keihin

Sea transport

Port of TokyoPort of Yokohama

Thailand(3 bases)Thailand(5 bases)

Improved packing Suzuka FactoryCurrent packing composed of 8 parts One-piece folding-type packing specification design

Wooden pallet Cardboard pallet

➡

➡ *Already adopted forcondensers manufacturedin Thailand

Greater load efficiency

Furthermore

From 1 pallet, 7 layers to 1 pallet, 9 layers (4 x 5 layers)

➡

*DBW: Trial calculation at 1,500 items/day, 366,000 items/year

8Parts 1Parts

Assembled

Extra 5,616 items2.3 x container

●Reduction of CO2 emissions in transportKakuda, Miyagi to Port of Tokyo: 17.1 tons

Kakuda, Miyagi to Port of Sendai: 1.26 tons

Reduction of CO215.84 tons CO2 reduction Before

improvements

After improvements


■ Local forest improvement activity

We carried out tree planting on 0.33 hectares of prefectural land in

Nasukarasuyama, Tochigi with the cooperation of local volunteers.

The volunteers helped us to plant 204 trees of nine varieties.

■ Beach cleaning activity to support reconstruction

Together with the Miyagi Honda-kai, and with the cooperation of

Honda Motor Co., Ltd., we carried out a beach cleaning activity to

restore Shirahama beach in Ishinomaki, Miyagi, hit by the Tohoku

earthquake, to its former beauty and leave a sandy beach for future

generations to walk along barefoot.

■ Support activities for reconstruction

We have been carrying out weeding and cleaning at the venue of the

Watari Reconstruction Marathon held in Watari, Miyagi.

■ Satoyama conservation activities

In 2010, we planted trees at the site of a large-scale forest fire that

occurred near our base in Miyagi. Every year since then, we have

carried out weeding to protect seedlings.

■ Traffic mirror cleaning activity

Together with local companies,

Keihin cleaned the traffic mirrors

located on the roads to elementary

schools again this year, hoping

that pupils can commute to school

safely.

■ Activities supporting local communities

We plant trees and cut weeds together with residents of the Sakura

area in Kakuda, Miyagi.

■ Providing environmental lessons at schools

Keihin communicates the importance of the environment to pupils at

elementary schools in Kakuda and Marumori, Miyagi. In fiscal 2014,

we taught 288 pupils at eight schools about the importance of the

environment.

■ Saving the lives of the world’s children

Keihin has been participating in the Ecocap Movement since fiscal

2009. To cooperate with the community and increase the scale of

this initiative, in fiscal 2014 we asked six local primary schools to

join us and make it a joint collaboration.

2012 2013 20142009 2010 2011（People） (FY)0

500

1000

1500

2000

2500

3000

3500

1,5711,571

2,4262,426

3,2103,210

6146141,038.51,038.5

145145

Vaccinations (Keihin) Vaccinations (elementary schools)

*These are the total numbers of vaccinations done in the Keihin Group and elementary schools.

■ Kinu River cleanup activities

Keihin employees actively conduct environmental activities to protect

this beautiful river in their community.

■ Environmental communication

To publicize our environmental

activities, we introduced Keihin’s energy

saving, waste recycling, and climate

change prevention measures via easy-

to-follow panels at an environmental

forum held in Kakuda, Miyagi.

■ Kakuda Abukuma Eco Forum

The Kakuda Abukuma Eco Forum is made up of four companies in

Kakuda, who propose a program of action and exchange information

at a meeting each year. Among their main efforts to reduce their

environmental load are energy conservation activities, waste reduction

initiatives, case reports, and communication and information sharing.

■ Tree-planting activity promotion

We conduct tree-planting activities to cultivate healthy forests that can

be passed on to future generations, for which we have received a letter

of thanks from the Miyagi Tree-planting Promotion Committee.

We are carrying out a variety of activities, such as cleanup activities and recovery support activities,in collaboration with local communities.






Biodiversity initiatives

■ Keihin Biodiversity Guidelines

The Keihin Group recognizes the affect its business activities have on the ecosystem

and tries to exist in harmony with nature, taking concrete action toward effective and

sustainable environmental conservation.

Basicconcept

Local forest improvementKeihin values local forests and, as a legacy to future generations,

helps to maintain healthy forests that offer an environment for small animals to live well.

By proper thinning, pruning and weeding and the active expulsion of invasive species,

we will maintain the vitality and biodiversity of our forests.

We set up a forest bulletin board on which we announced the results of our surveys on animals, plants, birds, trees, and so on.

In 2014, Keihin employees and local botanical experts confirmed the existence of 26 new species in the forest. The surveys will continue to be carried out in future.

Reptiles such as the Japanese striped snake

Our improvement of the forest environment includes the reuse of wood from thinning to install new walking trails.

We have rented the site of Kakuda

City Water Authority’s former

Hachiman Reservoir, and in fiscal

2014 continued our Keihin eco

forest program there.

●Forest environmental improvement

●Ecological survey

●Animal monitoring

●Forest environmental improvement

Related companies from Japan and abroad have actively engaged in environmental conservation activitieswith the aim of coexisting with the communities at their various bases.




Environmental load results of subsidiariesEnvironmental efforts of the global Keihin Group

Environmental activities in Japan and oversea Environmental activities in Japan and oversea

Trend in environmental load of domestic subsidiaries

■ CO2 emissions

Due to an increase in the number of subsidiaries since fiscal 2011,

CO2 emissions from Japanese subsidiaries in fiscal 2014 were

201% up on fiscal 2005.


0

5,000

10,000

15,000 300

200

100

0（%）(Tons) (FY)

Basic unit index (%)CO2 emissions (tons)

2005 20112008 2009 2010 2012

5,011 6,045

2,293

6,762 5,823 6,409

2013

6,163

5,472

Keihin Thermal Technology Corporation portion

100

166

135116

128135 128

6,577

5,493

2014

241232

201

5,157

4,900

■ Volume of waste disposed of

The volume of waste disposed of by subsidiaries in fiscal 2014

was 510 tons, 59% of the fiscal 2005 figure. This was due to the

increased number of subsidiaries since fiscal 2011.

■ Disposed waste and basic unit index (taking fiscal 2005 as 100)

2005 2011 2012 2013 20142008 2009 2010

1,000

800

600

400

200

0

100

80

60

40

20

0（%）(Tons) (FY)

100

35865

248

52

5057

229

202

228

263

59

250

2603025

20

261 212 176

20

Basic unit index (%)Released amount (tons)Keihin Thermal Technology Corporation portion


The water resource consumption of subsidiaries in fiscal 2014 was

1,134,000 tons, a significant rise due to the increased number of

subsidiaries since fiscal 2011.

■ Water resource consumption and basic unit index (taking fiscal 2005 as 100)

0（%）

1,000

2,000

3,000

0

500

1,000

1,500

(1,000Tons) (FY)

1,099

2,373

270

1,0801,090

2,364

664

2,314

Basic unit index (%)Water consumption

2005 20112008 2009 2010 2012 2013

Keihin Thermal Technology Corporation portion

2014

4955 68

46 43 47

100 8894 9664 54

Trend in environmental load of overseas subsidiaries

■ CO2 emissions

Overseas CO2 emissions in fiscal 2014 were 154% of the fiscal 2005

figure due to the increased number of subsidiaries and new bases.


250

200

150

100

50

200

150

100

50

0

250

0（%）(1,000Tons) (FY)

8083

166

176

57

140 142 143 145

100 101 102 104

133154

164

51

143

104121

Basic unit index (%)CO2 emissions (1,000tons)Subsidiaries and new bases

2005 20112008 2009 2010 2012 2013 2014


The waste yield of overseas subsidiaries in fiscal 2014 was 88% of

the fiscal 2005 figure. In future, we will promote further reductions

globally.

■ Disposed waste and basic unit index (taking fiscal 2005 as 100)

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 0（%）

15

30

45

60

75

90

105

(Tons) (FY)

100

66

85

667311,818

10,005

8,4597,751 8,023

100

72

91

9,93466

73

91

10,686

98

859

9,431

88

614

794935

Basic unit index (%)Externally disposed amount (tons)Subsidiaries and new bases

2005 20112008 2009 2010 2012 2013 2014


The water resource consumption of overseas subsidiaries in fiscal

2014 continued to rise due to the launch of new subsidiaries and

bases. We are addressing further improvements from fiscal 2015.

■ Water resource consumption and basic unit index (taking fiscal 2005 as 100)

2,000

1,600

1,200

800

400

0 0（%）

25

50

75

100

125

(1,000Tons) (FY)

91 98

854

319

889

363287195928

1,284 1,2401,135

887

100 9788

728484

915

94

Basic unit index (%)Water consumption (1,000 tons)Subsidiaries and new bases

2005 20112008 2009 2010 2012 2013 2014

■ CO2 emissions

0

80

160

240

320

400 150

120

90

60

30

0（%）(1,000 tons) （FY）

Basic unit index (%)

2008 20122009 2010 2011 2014 2015plan

2013

107100

133 127

102 103 104

Japan North America South America Asia China Europe

178 168 182

235249

257

98

247 227


0

4,000

8,000

12,000

16,000 120

90

60

30

0（%）

100 101109

104 10397

10,92111,84912,376

10,4269,806

8,295

10,361

91 94

10,331

Basic unit index (%)

(tons) （FY）2008 20122009 2010 2011 2014 2015plan

2013

Japan North America South America Asia China Europe


0

1,000

2,000

3,000

4,000

5,000 250

200

150

100

50

0（%）(1,000 m3) （FY）

113100

107

229215 210 215 213

1,142 1,139 1,236

2,601 2,694 2,634 2,513 2,513

2008 20122009 2010 2011 2014 2015plan

2013

Basic unit index (%)Japan North America South America Asia China Europe

■ Volume of chemicals handled

0

30

60

90

120

150 200

150

100

50

0（%）(tons)

100

153 146

173161

169

95

1197884

7157

4648

82

74

（FY）2008 20122009 2010 2011 2014 2015plan

2013

Basic unit index (%)Japan North America South America Asia China Europe

Included in totals: All Keihin consolidated companies and subsidiariesThe basic unit index takes fiscal 2008’s basic unit as 100.Increased since fiscal 2011 due to incorporation of the automobile air conditioning heat exchanger business.



Included in totals: All Keihin consolidated companies and subsidiariesThe basic unit index takes fiscal 2008’s basic unit as 100.Calculation on the basis of chemical control by country

■ Total CO2 emissions (1,000 t CO2) ■ Volume of waste disposed of (tons) ■ Water resource consumption (1,000 m3)

■ Environmental load results by region

Keihin aims to reduce its global environmental load at its non-manufacturing bases as well as its manufacturing bases,through initiatives such as

energy saving, waste reduction, water resource conservation, and so on. We also carry out structural evaluations with a basic unit*1 in our efforts

to build a low carbon society. In future, we will pursue further controls through the integrated management of our overseas environmental load and

the expansion of our accumulated reduction technologies.

In the manufacturing segment, Keihin is taking global initiatives such as energy saving, waste reduction, etc. in the pursuit of a recycling-oriented

society. In fiscal 2014, we managed the CO2 emissions of subsidiaries in Japan and overseas by a global management system.

Europe Asia China Japan NorthAmerica

SouthAmerica

0

20

40

60

80

100

■2008　■2009　■2010　■2011　■2012　■2013　■2014


SouthAmerica

■2008　■2009　■2010　■2011　■2012　■2013　■2014

0

1,000

2,000

3,000

4,000

5,000


SouthAmerica

■2008　■2009　■2010　■2011　■2012　■2013　■2014

0

400

800

1,200

1,600

2,000

*1. The base unit is CO2 emissions divided by value-added sales.


CHINAJAPAN

INDIA

THAILAND

INDONESIA

BRAZIL

UNITED STATES


Social contribution activities all over the world

■ Activities in India

■ Activities in Thailand

■ Activities in Indonesia

■ Activities in China

■ Activities in Brazil

■ Activities in the USA

■ Activities in Japan

World Environment Day Tree-planting activity

Beautification activity

Street cleanup program

Factory site cleanup

Cleanup activities around basesTree-planting activity

Stop AIDS Campaign

Tree-planting activity

Environmental learning

Beautification activity Beautification and energy conservation publicity activity

Community contribution activities


Third-party Evaluation

Third-party comments on Keihin Environmental Report 2015 Corporate Profile

Name: Keihin Corporation

Head Office: Shinjuku Nomura Bldg.,

1-26-2 Nishi-shinjuku, Shinjuku-ku,

Tokyo 163-0539

Tel: 03-3345-3411

Established: December 19, 1956

President and CEO: Tsuneo Tanai

Capital: ¥6,932,000,000

As an environmentally advanced company that is making progress worldwide, Keihin consistently appears high up in the Nikkei newspaper’s Corporate Environmental Management Rankings. The environmental report is extremely easy to read, and properly discloses details of the company’s development of innovative, eco-friendly products, its approach in its expanding business activities, and its proactive environmental measures. My main evaluations and suggestions are given below.

◆Keihin’s medium-term policy to “create new value with global collective capabilities” is currently being put into practice. Reading the strong messages from its managers and the content of sections such as “This Year in the Keihin Group”, it is clear that the company is contributing significantly to the reduction of the load on the global environment in all its business areas. Regarding its continually expanding global business, the company recognizes that the primary challenge is the reduction of CO2, which has the biggest impact on the global environment. In all its business segments, Keihin is reinforcing its activities both in Japan and overseas in pursuit of its target of halving its entire environmental load by 2050. In Japan, CO2 emissions in 2014 were reduced to 33% of their 2008 level, while the intrinsic reduction in terms of the basic unit (CO2 emissions per sales) was 22%, much greater than the targeted 6% reduction.

◆Regarding group companies and the supply chain, operations were expanded to unify their activities with Keihin Corporation, dependent on the Green Purchasing Guidelines and global CO2 management system, while support for strengthening CO2 reduction, centered mainly around domestic companies, was launched overseas.

◆Social contribution activities such as joint community activities, educational activities, and so on were actively and broadly expanded at all global bases, both in Japan and overseas. I can see a strong vision for the future in Keihin’s efforts to rehabilitate and revitalize ecosystems, such as local forest improvements.

◆Keihin’s business risk management, regarded as the most advanced within the industry, now includes region-specific and diversifying environmental risk management as part of the management of risks faced by global business, such as the Tohoku earthquake and the Thailand floods. The company has strengthened this with a unified management structure, which it is steadily implementing now.

◆Keihin did excellently in the Nikkei newspaper’s 18th Corporate Environmental Management Survey of 1,729 major listed and unlisted corporations, taking 5th place in the separate manufacturing industry category and 10th place in the overall manufacturing industry category. This is the result of its scrupulous ongoing activities.

■Looking at Keihin’s international business activities and the emission of CO2, which has the greatest impact on the global environment, Keihin and its group companies have already exceeded five times their domestic emissions, and its supply chain has more than doubled that. While further increases are expected, Keihin’s globally unified green management shows that the company is promoting a series of measures using its global CO2 management system. However, in order to develop measures in synchronization with business speed, I would like Keihin to further strengthen its system for implementing them and produce a timely and steady reduction effect.

■As for Keihin’s business risk management and response incorporating environmental risk, the company has finished verifying all its bases using its own BCMS*2 method, and is currently building up the excellent management knowhow of its leading response offices in Japan followed by Asia and the Americas. I hope this will be passed on quickly to all bases so that Keihin can develop high level “zero risk offices” compliant with ISO 22301*1, first in Japan and then everywhere else.

■Environmental reports are released according to the company’s business conditions, scope and characteristics. Delivering the reports in book form and online seems to have some appeal. Keihin reports on the state of its CSR activities on its website, while periodically issuing more reports than ever before though this book version containing the required amount of information. Looking forward, I would like Keihin to consider visualization of actual activities that correspond to its domestic + global business and develop it as a communication tool for its stakeholders.

Finally, I have high hopes that Keihin, based on its fundamental beliefs and Environmental Initiatives, will draw up a concrete development scenario and roadmap toward a global vision for the Group with a long-term perspective of tens of years. I also expect Keihin to further integrate its Japanese knowhow with the wisdom and ingenuity of its various bases and, through determined action, contribute to the creation of a globally sustainable recycling-oriented society.

Motorcycle and power products (main products)

■ No. of employees

■ Sales or sales revenue ■ Operating profit

Fuel supply system products

Fuel supply products

Electronic control products

Electronic control system products

Air-conditioning system products

Automobile products (main products)

0

50

25

75

100

125（¥100 million）

2011

42

2012

26

2013

104

2014

111

（FY） 0

5,000

10,000

15,000

25,000

20,000

（People） Stand-alone Consolidated

(FY)

4,286

2011

4,313

2012

4,273

2013

4,170

2014

19,843 20,807 21,482 22,060

0

1,000

2,000

3,000

4,000（¥100 million）

2011

2,600

2012

2,949

2013

3,187

2014

3,271

（FY）0

300

200

100

250

150

50

（¥100 million）

（FY）

108

2011

100

2012

195

2013

227

2014

*1,2 ISO22301: International standard for business continuity management system (BCMS)

Here I give my comments on Keihin’s environmental report, including my impressionsfrom interviews with people concerned, on-site checks, and so on.

Corporate Profile Introduction to products

About the third-party commentsI would like to thank Jun’ichi Ishihashi, Director of the Environmental, Safety and Educational Support Organization, for his

third-party comments again this year. We have made efforts to implement Keihin’s Environmental Initiatives, which are our fundamental stance on the environment, and Course of Action. For the Keihin Group to realize a sustainable recycling-oriented society, we will promote the strengthening of activities in Japan and the reduction of our global environmental load, including the above new recommendations, and take positive action to make a more stable corporate environmental structure and establish a global competition-beating business structure.

Keihin Corporation

■ Current net income or net income attributable to parent company owners

Jun’ichi Ishihashi Director of the Environmental, Safety and Educational Support Organization, a government authorized NPORepresentative director of that NPO’s Low Carbon Society Strategy CenterTest Center, Japan Automobile Research InstituteEnvironmental and energy assessment committee member

Overall

Future suggestions

Amounts under ¥100 million are shown rounded off.Figures shown for fiscal 2013 and 2014 comply with IFRS.Figures shown for fiscal 2011 and 2012 comply with Japanese standards.


Measurement item Legal standard valueMiyagi No. 1 Plant Miyagi No. 2 Plant

Kakuda No.1 Factory Marumori Factory Kakuda No.2 Factory Kakuda No.3 Factory

Total cyanide Not detected Not for measurement

Hexavalent chromium 0.05mg/L or less Less than 0.005 Less than 0.005 Less than 0.005 Not for measurement

Lead 0.01mg/L or lessNot for measurement

1,1-Dichloroethene 0.02mg/L or less

1,1,1-Trichloroethane 1mg/L or less Less than 0.1 Less than 0.1 Less than 0.1 Less than 0.001

Dichloromethylene 0.02mg/L or less

Not for measurement

Cis-1,2-dichloroethene 0.04mg/L or less

1,2-Dichloroethane 0.004mg/L or less

Trichloroethylene 0.03mg/L or less

Tetrachloroethylene 0.01mg/L or less

Fluorine 0.8mg/L or less

Boron 1mg/L or less

Class Domestic Overseas

■ Scope 1 Direct emissions

Direct emissions of greenhouse gases due to corporate activity as defined by the GHG Protocol 0.88 1.93

■ Scope 2 Indirect emissions

Indirect emissions of greenhouse gases from the use of energy in corporate activity as defined by the GHG Protocol 3.31 13.80

Category 1 Purchased products & services 6.32 15.06

Category 2 Capital goods 5.29 13.83

Category 3 Fuel & energy activity not included in scope 1 or 2 0.00 0.00

Category 4 Transport & distribution (upstream) 1.80 ーCategory 5 Waste produced by business 0.03 0.32

Category 6 Business trips 0.00 ーCategory 7 Employee commuting 0.37 1.74

Category 8 Leased assets (upstream) ーー■ Scope 3 Upstream Total 13.81 30.95

Category 9 Transport & distribution (downstream) ーーCategory 10 Processing of sold products

368.10 432.20Category 11 Use of sold products

Category 12 Disposal of sold products

Category 13 Leased assets (downstream) ーーCategory 14 Franchises ーーCategory 15 Use of investments ーー

■ Scope 3 Downstream Total 368.10 432.20

381.91 463.15

■ Groundwater measurement data

Keihin endeavors to prevent water contamination by using observation wells to continuously monitor substances contaminating the groundwater at

its manufacturing plants.

■ Disclosure of greenhouse gas emissions

To protect the global environment, Keihin has endeavored since fiscal 2012 to improve the tracking and accuracy of results in our corporate activities in terms

of emissions of greenhouse gases in scopes 1 and 2, of course, along with greenhouse gases in the 15 categories of scope 3. In the auto parts manufacturing

industry, we view this as our duty in order to protect the global environment, and will address the further reduction of our environmental load in future.

・Category 1 emissions are the total for primary suppliers.・Category 2 emissions are the total according to facility investment in all consolidated manufacturing companies.・Categories 8, 9, 13 and 15 emissions are included in scope 2.・Categories 10, 11 and 12 emissions are the total according to the sales ratio from the sale of Keihin products.・Category 14 emissions are excluded since there are no franchise stores.

■ Greenhouse gas emissions in the global Keihin Group (unit: 10,000 tons CO2)

Domesticfiscal 2014 results3.82 million t CO2

Scope 3 Downstream368.10

Scope 10.88

Scope 23.31

Scope 3 Upstream13.81

Overseasfiscal 2014 results4.63 million t CO2

Scope 3 Downstream432.20

Scope 11.93

Scope 313.80

Scope 3 Upstream30.95

Greenhouse gas emissions and groundwater data

Related Data


Related Data


Miyagi No.1 Plant

Address: 213 Takahata-minami, Kajika, Kakuda-shi, Miyagi Prefecture

Main products: Motorcycle and power products, fuel supply system products for automobiles

■ Air quality

No Regulated item Unit Facility Standard Measured value

1 Soot and dust g/Nm3

Boiler No.1 0.1 or less Less than 0.01



Boiler No.4 0.1 or less Less than 0.01Reverberating furnace 0.2 or less Less than 0.01Chilled and hot water generator 0.1 or less -

2 Sulfur oxide Nm3/h




Boiler No.4 3.32 or less Less than 0.001Reverberating furnace 2.77 or less 0.181Chilled and hot water generator 1.90 or less -

3 Nitrogen oxide ppm

Boiler No.1 150 or less 28



Boiler No.4 150 or less 33Reverberating furnace 180 or less 45Chilled and hot water generator 150 or less -

■ Water quality

No Item Unit Standard Measured value

1 Hydrogen-ion concentration pH 5.8～8.6 7.1

2 Biochemical oxygen demand

mg/ℓ

30 or less 7.4

3 Amount of suspended substances 70 or less 13

4 Normal hexane extracts 5 or less Less than 1

5 Chromium content 2 or less Less than 0.2

■ Energy

No Item Unit Achieved value

1 Electricity consumed MWH 11,733

2 Fuel consumed (fuel oil A) kℓ 188

3 Fuel gas consumed (LPG) ton 449

4 Water consumed (tap water)m3 44,105

5 Water consumed (ground water) 28,010

■ Waste materials


1 Generated volumeton

210

2 Final disposal amount 0

■ PRTR substances (kg)

No Item Handled quantity

Air emissions

Transfer(outside the office concerned)

1 Nickel compounds 2,404 0 721

2 Boron compounds 1,097 0 1097

3 Methylnaphthalene 2,035 10 0

Total 5,536 10 1,818

Address: 97 Terauchi-mae, Marumori-machi, Igu-gun, Miyagi Prefecture

Main products: fuel supply system products for automobiles (injectors)

■ Air quality


1 Soot and dust g/Nm3


Boiler No.2 0.3 or less Less than 0.01Aluminum melting furnace 0.2 or less Less than 0.01

Chilled and hot water generator 0.1 or less Less than 0.01

2 Sulfur oxide Nm3/h

Boiler No.1 0.53 or less 0.29

Boiler No.2 0.53 or less 0.25Aluminum melting furnace 6.2 or less Less than 0.01

Chilled and hot water generator 0.53 or less Less than 0.01

3 Nitrogen oxide ppm


Boiler No.2 180 or less 56Aluminum melting furnace 180 or less 23

Chilled and hot water generator 150 or less 53

■ Water quality


1 Hydrogen-ion concentration pH 5.8～8.6 7


mg/ℓ

30 or less 2.1


4 Normal hexane extracts 5 or less Less than 1


■ Energy







■ Waste materials



174




Air emissions



Miyagi No. 2 Plant

Address: 3 Miyayachi, Sakura, Kakuda-shi, Miyagi Prefecture

Main products: Fuel supply system products for automobiles, air conditioning system products (throttle bodies, plastic intake manifolds, compressors, etc.)

■ Air quality


1 Soot and dust g/Nm3Small boiler 0.3 or less 0.013

Melting furnace No. 1 0.2 or less 0.03

2 Sulfur oxide Nm3/hSmall boiler 4.37 or less 0.056

Melting furnace No. 1 3.16 or less 0.028

3 Nitrogen oxide ppmSmall boiler 180 or less 58

Melting furnace No. 1 180 or less 29

■ Water quality




mg/ℓ

30 or less 5.4


4 Normal hexane extracts 5 or less 1


■ Energy







■ Waste materials



128




Air emissions


1 Antimony and other compounds 3,525 0 150


Total 10,303 34 150

Address: 4-3 Miyayachi, Sakura, Kakuda-shi, Miyagi Prefecture

Main products: Motorcycle and power products,

electronic control unit system products for automobiles

■ Air quality


1 Soot and dust g/Nm3Boiler No.1 0.3 or less 0.022


2 Sulfur oxide Nm3/hBoiler No.1 1.4 or less 0.13


3 Nitrogen oxide ppmBoiler No.1 180 or less 96


■ Water quality




mg/ℓ

160 or less 7.9


4 Normal hexane extracts 30 or less Less than 0.1

■ Energy





4 Water consumed (tap water) m3 11,668

■ Waste materials



57




Air emissions


1 Toluene 3,003 2,851 152

2 HCFC-225 3,491 3,275 216

Total 6,494 6,126 368

No measurement data with cool water generator due to equipment shutdown

Domestic base data

Related Data


Sayama Plant

Address: 481-1 Hiranoshita, Nakashinden, Sayamashi, Saitama Prefecture

Main products: Air conditioning system products (HVAC)

■ Energy



2 Fuel gas consumed (LPG) ton 2.9


■ Waste materials



21.3


Tochigi Research & Development Center

Address: 2021-8 Hoshakuji, Takanezawa-machi, Shioyagun, Tochigi Prefecture

Business activities: Overall control of Tochigi area, business management, research and development Overall control of Miyagi area, research and development

■ Energy





■ Waste materials



25.4




Air emissions


1 Toluene 5,105 3,595 1,510

2 Xylene 1,644 1,153 491

3 1,2,4-Trimethylbenzene 1,088 783 305

Total 7,837 5,531 2,306

Suzuka Plant

Address: 3361-1, Ichigaya, Kou-cho, Suzuka-shi, Mie Prefecture

Main products: Air conditioning system products (HVAC)

■ Energy





■ Waste materials



7.2


Kakuda Research & Development Center

Address: 197-1 Nagare, Kakuda, Kakuda-shi, Miyagi Prefecture

Business activities: Overall control of Miyagi area, research and development

■ Energy





■ Waste materials



15.7


Keihin Nasu Corporation

Address: 818 Kanaga, Nasukarasuyama-shi, Tochigi Prefecture

Main products: Motorcycle and power products and automobile products

■ Energy



2 Fuel consumed (heating oil) kℓ 30



■ Waste materials



30


Keihin Sakura Corporation

Address: 13-1 Suwawaki-minami, Sakura, Kakuda-shi, Miyagi Prefecture

Main products: Motorcycle and power products and automobile products

■ Energy



2 Fuel consumed (light oil, heating oil) kℓ 10



■ Waste materials



10


Keihin Thermal Technology Corporation

1-480, Inuzuka, Oyama-shi, Tochigi

Main products: Air-conditioning system products (heat exchangers)

■ Energy



2 Fuel gas consumed (city gas) 1000m3 1,200

3 Water consumed (tap water) m3 1,112,670

■ Waste materials



232


Keihin Watari Co., Ltd.

Address: 1-5 Doda, Okuma-koya, Watari-cho, Watarigun, Miyagi Prefecture

Main products: Motorcycle and power products, fuel supply system products for automobiles

■ Energy



2 Fuel consumed (light oil) kℓ 6



■ Waste materials



88


Keihin Valve Corp.

Address: Higashi Kanagawa 1-1-6, Kanagawa-ku, Yokohama, Kanagawa Prefecture

Main products: Automatic valves, etc.

■ Energy


1 Electricity consumed MWH 187

2 Fuel gas consumed (city gas) 1000m3 8.5


■ Waste materials



5.7


Keihin Electronics Technology Inc.

Address: Senhagi Bldg. 2F, 5-1-12 Tsutsujigaoka, Miyagino-ku, Sendai-shi, Miyagi Prefecture

Business activities: Research and development of motorcycle and power products and automobile products

■ Energy



Domestic base data Domestic base data (Domestic subsidiary companies)

Related Data Related Data


North America

Keihin Carolina System Technology, LLC.

■ Energy



2 Fuel consumed (heating oil) kℓ 113



■ Waste materials


1 Generated volume ton 25

Keihin IPT Manufacturing, LLC.

■ Energy



2 Fuel gas consumed (LNG) ton 3,921


■ Waste materials


1 Generated volume ton 3,419

Keihin Michigan Manufacturing, LLC.

■ Energy



2 Fuel gas consumed (city gas) 1000m3 126


■ Waste materials



Keihin Thermal Technology of America, Inc.

■ Energy



2 Fuel consumed (light oil) kℓ 7.9


4 Fuel gas consumed (city gas) 1000m3 1,524


■ Waste materials


1 Generated volume ton ー

South America

Keihin Tecnologia do Brasil Ltda.

■ Energy





4 Water consumed (industrial water) m3 19,623

■ Waste materials



Mexico

Keihin de Mexico S.A. de C.V.

■ Energy





■ Waste materials



Thailand

Keihin Asia Bangkok Co., Ltd.

■ Energy



2 Water consumed (tap water) m3 890

Keihin (Thailand) Co., Ltd.

■ Energy






■ Waste materials



Keihin Auto Parts (Thailand) Co., Ltd.

■ Energy





■ Waste materials



Keihin Thermal Technology (Thailand) Co., Ltd.

■ Energy



2 Fuel gas consumed (city gas) 1000m3 220


■ Waste materials



India

Keihin Panalfa Ltd.

■ Energy



2 Fuel consumed (light oil) 1000m3 45


■ Waste materials



Keihin FIE Pvt. Ltd.

■ Energy





4 Fuel gas consumed (LNG) 1000m3 434

5 Water consumed (tap water)

m3

67,883

6 Water consumed (industrial water) 41,340


■ Waste materials



Overseas base data

Related Data


Indonesia

P.T. Keihin Indonesia

■ Energy





■ Waste materials



Taiwan

Taiwan Keihin Carburetor Co.,Ltd.

■ Energy






■ Waste materials



Vietnam

KeihinVietnamCo.,Ltd.

■ Energy





■ Waste materials



China

Dongguan Keihin Engine Management System Co., Ltd

■ Energy





4 Water consumed (tap water)m3

91,144

5 Water consumed (industrial water) 4,189

■ Waste materials



Nanjing Keihin Carburetor Co.,Ltd

■ Energy






■ Waste materials



Keihin R&D China Co., Ltd.

■ Energy




■ Waste materials


1 Generated volume ton 3.6

Keihin Grand Ocean Thermal Technology (Dalian) Co., Ltd.

■ Energy




■ Waste materials



United Kingdom

Keihin Europe Ltd.

■ Energy



2 Fuel gas consumed (LNG) 1000m3 20.3


■ Waste materials



Germany

Keihin Sales and DevelopmentEurope GmbH

■ Energy



2 Fuel consumed kℓ 4.0

■ Waste materials


1 Generated volume ton 0.5

Czech

Keihin Thermal Technology Czech, s.r.o.

■ Energy





■ Waste materials



Overseas base data

Related Data


Issued September 2015

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