Environmental

　In the IWATSU Group, we have created an Environmental Management System (EMS) based on ISO 14001, and we are now operating and managing this system as part of our efforts to improve environmental performance.
　Under the direction of the manager responsible for the EMS, the Group Secretariat coordinates with each department and internal auditors to monitor environmental performance, the status of compliance with laws and regulations, the effectiveness of our activities, etc., through internal audits and management reviews.

Environmental management system promotion organization chart

　Through such measures as increasing the efficiency of production processes, energy-conservation activities, and resource-conservation activities, the IWATSU Group works to reduce the impact of our production activities on the environment, while also engaging in activities to monitor and improve various types of environmental performance.
　The key trend in the environmental performance of the IWATSU Group between fiscal 2018 and fiscal 2021 is shown in the chart on the right.
　In fiscal 2021, we successfully reduced our total energy input, as well as Scope 1 and 2 emissions, compared with the previous fiscal year.
　In fiscal 2020, our total water resource intake and waste output fell because utilization dropped as a result of the COVID-19 pandemic, but they increased again in fiscal 2021 compared with the previous fiscal year because utilization recovered.
　Furthermore, in fiscal 2021, our environmental efficiency index (CO₂ emissions per 100 million yen in revenue) was 22.75, an improvement of 11.28% compared with the previous fiscal year, when it was 25.64.

Environmental Efficiency Index

■ Internal audits

　The IWATSU Group conducts internal audits overseen by the head office of IWATSU ELECTRIC once a year, in which we confirm the conformity and effectiveness of our EMS.

■ External inspections

　Once a year, the IWATSU Group receives an external inspection of the conformity and effectiveness of our EMS from a certification body. We correct or rectify any non-conforming items within a predetermined period. Each department considers ways to respond to opportunities for improvement, and they are confirmed in internal audits.

■ Management review

　Twice a year, the IWATSU Group Secretariat leads management reviews within the Group. Environmental performance, the status of compliance with environmental laws and regulations, points for improvement, and other related matters are reported to senior management.

■ Environmental education

　In order to effectively operate our EMS, we plan and execute environmental education and awareness-raising activities.

Status of implementation in fiscal 2021

■ External communication

　We disclose information related to the environment in this sustainability report. We also endeavor to appropriately respond to inquiries, requests, etc., from stakeholders through internal communication with relevant departments.

■ Response to environmental laws and regulations

　We perform regular checks for amendments to environmental laws and regulations, etc., and endeavor to respond appropriately to obligations related to filings, reports, etc., as well as licensing, permission, and approval requirements, etc.

Status of compliance of ISO 14001-certified organizations (Japan)

■ Management of chemical substances in products

　The IWATSU Group works to reduce harmful chemical substances in our products, through compliance with laws and regulations in Japan, as well as laws and regulations overseas, such as the RoHS Directive and REACH regulation in Europe. Specifically, we clarify substances subject to laws and regulations and voluntary controls, which are covered by internal regulations, and thoroughly manage them.
　IWATSU ELECTRIC participates in the Joint Article Management Promotion-consortium (JAMP), and conducts surveys of chemicals in products in the supply chain using “chemSHERPA*,” a survey tool provided by JAMP. We also survey the status of inclusion of five substances controlled under the US TSCA PBT regulations in our products, as part of our endeavor to reduce environmental impact associated with chemical substances.

• A system that was developed under the leadership of the Ministry of Economy, Trade and Industry (METI) for communicating information related to chemical substances in products in the supply chain. This system succeeds and integrates the former JAMP AIS and JGPSSI systems.

■ Environmental assessments

　In order to reduce the impact of products designed, manufactured, and sold by the IWATSU Group on the global environment, we perform environmental assessments that take into consideration the product lifecycle of new products. When designing products, we compare them with equivalent existing products and take steps to assess and improve them, including conserving resources, recycling resources, making it easier to recycle products, conserving energy, and controlling the use of harmful chemical substances.

　In order to respond to climate change in a concrete way, in December 2021, the IWATSU Group submitted a Commitment Letter to the “SBTi*1,” indicating our aim to acquire certification within two years.
　For Scope 1 and 2 emissions, we have estimated business-as-usual (BAU) emissions for fiscal 2030 using fiscal 2020 as the base year, and formulated emissions reduction targets for fiscal 2030 under the 1.5°C target standard (see chart on the right). We are currently calculating Scope 3 emissions, and plan to promote the reduction of GHG emissions after setting emissions reduction targets based on the results of this calculation.

　As energy-conservation measures, the IWATSU Group implements initiatives such as cutting electric power use at peak hours, Cool Biz, Warm Biz, and the automatic turning off of lights in areas where there are no people, on an ongoing basis. We reduced CO₂ emissions in fiscal 2021 by 292 tons (5.25%) compared with the previous fiscal year.

*1 Emissions from the Kugayama site include emissions associated with company cars belonging to the sales office of IWATSU ELECTRIC CO., LTD., as well as the emissions of IWATSU Business Services Co., Ltd. and IWATSU SYSTEM & SOFTWARE CO., LTD.*2 From fiscal 2021, emissions from the Kugayama site and the sales site include emissions from the head office of IWATSU NETWORK SOLUTION CO., LTD. and emissions from the Kita-Kanto sales office, respectively.In addition, the Company monitors CO₂ emissions per 100 million yen of revenue as an indicator of environmental efficiency, and we pursue efficiency in both environmental and economic terms.

■ Scope 1 and 2 emissions

　Trends in the Scope 1 and 2 emissions of the IWATSU Group between fiscal 2018 and 2021 are as follows.
　Note, when calculating emissions for Malaysia using the location standard, emissions factors have been replaced with those for Japan.

■ Sources of CO₂ emissions

　Sources of CO₂ emissions by the IWATSU Group include electric power, gas, fuel (fuel oil, diesel oil, kerosene, and gasoline), and other types of fuel Other liquid fuel includes organic solvents abated by combustion with VOC abatement systems.*

Distribution of CO₂ emissions sources (fiscal 2021)

• Heat storage-type deodorizing systems: Installed on Tochigi site coater dryers

■ Iwatsu Izumizaki Mega Solar Power Plant

　IWATSU ELECTRIC operates the Iwatsu Izumizaki Mega Solar Power Plant, which covers an area of approximately 34,500 m² at our Izumizaki site, and has a generation capacity of approximately 2 MW.
　This power plant began operating in October 2013, and we contribute to reducing CO₂ emissions from the regional community by selling the power generated to electric power companies using the feed-in tariff scheme for renewable energy.
　In fiscal 2021, we generated and sold 2,436 MWh of electric power, equivalent to a reduction in CO₂ emissions of 1,104 tons.

• Calculated using the replacement values for emissions factors for each electricity company (actual data for fiscal 2020)

Iwatsu Izumizaki Mega Solar Power Plant

Breakdown of energy usage in fiscal 2021

■ Examples of applications

• Heating: Heating spaces, kitchens, company cars, drying furnaces
• Steam: Drying furnaces, steam boilers, humidification
• Cooling: Air-conditioning (hot and cold water generators)

　Fuel used by the IWATSU Group for heating, steam, and cooling in fiscal 2021 was as follows.

Steam generation

Cooling

• Used the calorific value conversion coefficient in the Act on Rationalizing Energy Use and Transition to Non-fossil Energy, etc.
  Converted at 1 [GJ] = 0.2778 [MWh]
  Other liquid fuel refers to organic solvents combusted with VOC abatement systems (heat storage-type deodorizing systems).

Heat generation

Energy used for heating, steam, and cooling

■ Management of Use of Chemical Substances

　The IWATSU Group uses chemical substances such as solder, organic solvents, and paint as auxiliary materials for manufacturing business telephones, test and measurement equipment, and printing systems devices. Supplies for printing systems devices supplied by the Company are also chemical products, and approximately 90% of the chemical substances used by the IWATSU Group are used when manufacturing these products.
　The IWATSU Group uses chemical substance management records to ascertain and manage the amounts of chemical substances used, etc.

Use of chemical substances

• This data aggregates chemical substances used in manufacturing and repair processes. The following three companies are covered.
  
  • Iwatsu Manufacturing Co., Ltd.
  • Tohtsu Industry Co., Ltd.
  • Iwatsu (Malaysia)Sdn Bhd

■ Notification of Substances Subject to PRTR

　As part of our response to the Act on the Assessment Releases of Specified Chemical Substances in the Environment and the Promotion of Management Improvement, the IWATSU Group monitors and manages the amounts of class I designated chemical substances handled, output, moved, etc.
　In fiscal 2021, the IWATSU Group used 17 substances categorized as class I designated chemical substances under this law.
　We submitted notifications for the following class I designated chemical substances: 1-bromopropane, toluene, exylene, and ethylbenzene (Izumizaki site), and toluene and exylene (Tochigi site).

Notification amounts for substances subject to PRTR

■ Initiatives to prevent air pollution

　The IWATSU Group endeavors to control the emission of volatile organic compounds (VOCs), which are contributors to photochemical smog and suspended particulate matter (SPM).
　Among IWATSU Group facilities, coater dryers at our Tochigi site are specified facilities subject to controls on the emission of VOCs. These coater dryers have heat storage-type deodorizing systems installed, which use heat to decompose VOCs emitted and detoxify them before emission.
　IWATSU Group companies in Japan also participate in the “Continuous Survey on the Status of VOC Emissions by Four Electrical Machinery and Electronics Organizations,” and endeavor to monitor and control emissions of 20 applicable VOC substances.

VOC abatement system in the Tochigi site

• Emissions standard concentration: 600 [ppmC]

■ Initiatives to prevent soil pollution

　The IWATSU Group does not have any specified facilities under the Soil Contamination Countermeasures Act.
　At our Izumizaki and Tochigi sites, however, we have underground tanks where we store fuel oil and organic solvents. At our Sukagawa, Izumizaki, and Tochigi sites, we also have outside storage facilities for type IV hazardous materials.
　The IWATSU Group designates any leaks of hazardous materials from underground tanks, outside storage facilities, etc., as emergencies, and prepares for such emergencies by holding emergency response drills at each site.

■ Initiatives to prevent water contamination

　We have installed purification tanks at our Aizu, Sukagawa, and Izumizaki sites, and we perform regular inspections of purification tanks, while also monitoring water quality at final discharge points.
　When inspecting water quality at final discharge points, we check that hydrogen ion concentration and biological oxygen demand (BOD), etc., are below reference levels.

■ Direct impact of business activities on biodiversity

　We have not identified any IWATSU Group business activities that have a significant direct impact on biodiversity.
　We believe, however, that we have an indirect impact on biodiversity in areas such as rising temperatures caused by the emission of greenhouse gases, ocean acidification, droughts, harmful chemical substances and industrial waste output by our business activities, and the problem of plastic waste, which has attracted attention as a major environmental issue in recent years.
　Under this belief, we are engaged in the following activities, which we believe contribute to conserving biodiversity.

■ Initiatives aimed at the sustainable use of forest resources

　The IWATSU Group offers some types of Master Paper used in reprographic devices, one of our printing system products, as products that use FSC-certified materials and managed materials, as we obtained FSCⓇ-CoC certification for these products in September 2016. The applicable Master Paper is manufactured at the Tochigi Business Site of Iwatsu Manufacturing Co., Ltd.
　At the purchasing stage, we confirm that the paper is made from wood from responsibly managed forests, and we also manage separation to ensure that no paper made from wood from non-managed forests is mixed in during the Master Paper production process. In this way, we provide our customers with an FSC-certified product.

• IWATSU Group business sites with FSCⓇ Certification:
  IWATSU ELECTRIC CO., LTD. Sales Dept. No. 1 [FSCⓇC131860] (Main Site)
  Iwatsu Manufacturing Co., Ltd. Tochigi Business Site (Sub Site)
• FSCⓇ: Forest Stewardship CouncilⓇ
  An international NGO that operates a forest certification system related to forests producing timber around the world, as well as processes for the distribution and processing of timber harvested from those forests
  FSCⓇ certification is an international certification system aimed at spreading appropriate forest management that is economically sustainable, while also being appropriate from the perspective of environmental conservation and consistent with social interests.
  There are two types of certification: FM (Forest Management) and CoC (Chain of Custody (processing and distribution processes)).
  Consumers can indirectly support global forest conservation by purchasing products that have the FSC mark.

■ Recycling designs for IWATSU products

　In product assessments related to products developed by IWATSU, the IWATSU Group sets and assesses the following criteria related to recycling.
　Products developed by IWATSU must satisfy the following criteria related to recycling.

　We are currently revising these recycling-related criteria in product assessments in light of the enactment of the Act on Promotion of Resource Circulation for Plastics and the IWATSU Group’s “initiatives targeting resource circulation,” one of the activity themes of our key sustainability issues.

■ Promotion of recycling of portable rechargeable batteries

　IWATSU ELECTRIC and Tohtsu Industry are contributing to resource recycling based on the Act on the Promotion of Effective Utilization of Resources, by participating in JBRC, Inc. and collecting and recycling portable rechargeable batteries under the recycling scheme operated by JBRC.
　The batteries collected under this scheme include the following batteries used in products such as IWATSU-manufactured on-premises PHS systems.

• JBRC, Inc.
  A body that conducts joint recycling activities for portable rechargeable batters sold and provided by its members (manufacturers of portable rechargeable batteries and the devices that use those batteries, importers, etc.), based on the “Act on the Promotion of Effective Utilization of Resources.”

■ Heat recovery with VOC abatement system

　At our Tochigi site, in order to remove volatile organic compounds (VOCs), we recover generated heat with heat storage-type deodorizing systems attached to our coater dryers, and reuse it as a heat source for our boilers.
　In fiscal 2021, we actually used 44 tons of LPG (butane), compared with the 62 tons that would have been required if we had not recovered this heat, thus successfully reducing LPG usage by 18 tons.

■ Distillation and reuse of organic solvents

　We have installed a distillation and recovery system at our Tochigi site to enable us to reuse organic solvents such as toluene, which are used to clean manufacturing equipment. Using this equipment allowed us to reuse 9,300 liters of organic solvents in fiscal 2021.

■ Waste management

　Waste output and recycling rates at IWATSU ELECTRIC (Kugayama site) and our plant sites in Japan in fiscal 2021 were as follows.

Waste output

[tons]

Recycling rate

Total output, total amount recycled, final disposal amount

[tons]

　We did not achieve our target in fiscal 2021 because waste increased at plant sites as production volume recovered after falling during the COVID-19 pandemic in fiscal 2020.
　We also did not achieve our target for the recycling rate at our Izumizaki site because plastic container and packaging materials that we were previously able to recycle became subject to treatment as industrial waste.
　The recycling rate also includes thermal recycling. Increasing the quality of recycling, through changing to material recycling, etc., is an issue for the IWATSU Group.

■ Appropriate management of PCB waste

　The IWATSU Group appropriately manages and systematically disposes of PCB waste stored by IWATSU ELECTRIC and Iwatsu Manufacturing.

PCB waste managed by the IWATSU Group

　We have registered high-concentration PCB waste (fluorescent light stabilizers and capacitors) with JESCO (Japan Environmental Storage & Safety Corporation), and expect to complete disposal by March 2023.
　We are also disposing of low-concentration PCB waste at facilities certified by the Minister of the Environment and facilities licensed by prefectural governors.

• JESCO (Japan Environmental Storage & Safety Corporation)
  A special company fully funded by the national government that processes PCB waste, which was previously performed by intermediary storage operators contracted by the national government, etc., and the former Japan Environmental Safety Corporation