Climate Change Data

NTN Corporation

Climate Impact & Sustainability Data (2018-04 to 2019-03)

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:674,000 metric tons
Scope 1 Emissions:57,000 metric tons
Scope 2 Emissions:327,000 metric tons
Water Consumption:3.47 million m3
Waste Generated:177,000 metric tons

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions intensity by 4.8% compared to fiscal year ended March 31, 2011 (Japan)
  • Reduced CO2 emissions intensity by 5.4% compared to fiscal year ended March 31, 2011 (Overseas)
  • Reduced water consumption intensity by 10.9% compared to fiscal year ended March 31, 2015 (Overseas)
  • Reduced water consumption intensity by 13.9% compared to fiscal year ended March 31, 2015 (Japan)
  • Maintained 99% reduction in Styrofoam compared to fiscal year ended March 31, 2000 (Japan)
  • Achieved 97.4% recycling rate (Japan)
  • Achieved 98.6% recycling rate (Overseas)
  • Received Nikkei Global Environmental Technology Award for NTN Micro Hydro Turbine

Social Achievements

  • Launched NTN Rotating School for environmental education
  • Increased percentage of hired female graduates to 16%
  • Achieved 90% post-retirement rehiring rate (NTN only)
  • Increased number of employees taking childcare leave
  • Increased number of employees returning after childcare leave
  • Implemented NTN Job Return Scheme for employees returning after life events
  • Selected as “Best Practice Company” by Osaka Labour Bureau for work style reform initiatives

Governance Achievements

  • Transitioned from a Company with Board of Company Auditors to a Company with Nominating Committee, etc.
  • Increased the number of Outside Directors from 2 to 5
  • Established the Compensation Committee
  • Held first ESG meeting for institutional investors

Climate Goals & Targets

Long-term Goals:
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Medium-term Goals:
  • Achieve 7.1% operating margin
  • Achieve 30 billion yen net income attributable to shareholders (parent company)
  • Generate 45 billion yen free cash flow (3 years)
Short-term Goals:
  • Improve profitability for domestic businesses
  • Reduce inventories from OEM business
  • Generate free cash flow

Environmental Challenges

  • Net loss for the first time in five years due to impairment of domestic fixed assets, declining return on investment in domestic production, increased head office expenses, rising raw material prices, and increased expenses from additional tariffs
  • Declining market share in some overseas regions for aftermarket business
  • Intensifying competition due to commoditization of bearings and influx of low-priced products
  • Shrinking working-age population in Japan
  • Global risks including leakage of confidential information, computer virus/cyberterrorism, violation of antimonopoly laws, natural disasters, and human rights issues
  • Potential legal challenges related to intellectual property and competition laws
Mitigation Strategies
  • Accelerating structural reforms in manufacturing divisions in Japan (outsourcing, variable cost reformation, business restructuring)
  • Strengthening sales and technical service network for aftermarket business
  • Improving supply capacity for aftermarket business
  • Utilizing CAE technologies and RPA to achieve high productivity with fewer human resources
  • Developing a system for comprehensive worldwide risk management
  • Promoting BCP/BCM
  • Strengthening global compliance structure
  • Implementing various compliance training programs and a whistle-blower system

Supply Chain Management

Supplier Audits: 489 business partners

Responsible Procurement
  • NTN CSR Procurement Guidelines
  • Green Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
Transition Risks
  • Changes in end-user needs
  • Demands for energy-saving products
Opportunities
  • Development of energy-efficient products
  • Growth of renewable energy industry

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) International Framework

Certifications: ISO 14001, ISO 45001

Third-party Assurance: SGS Japan

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

NTN's initiatives contribute to these goals through energy-efficient products, sustainable procurement, waste reduction, and renewable energy development.

Sustainable Products & Innovation

  • NTN Micro Hydro Turbine
  • N3 N-CUBE
  • Low Friction Hub Bearing III
  • Sensor Integrated Bearing Unit
  • i-WRIST

Awards & Recognition

  • Nikkei Global Environmental Technology Award
  • CHO MONODZUKURI Innovative Parts and Components Award