Environment-contributing product

NTN develops business activities based on our corporate philosophy “We shall contribute to international society through creating new technologies and developing new products,” and the paragraph 1 of the NTN Environment Policy “Technologies to help prevent global warming.”
As bearings and driveshafts, which are main products of NTN, contribute to the reduction of energy loss in finished products of our customers equipped with them (hereinafter referred as “Finished Products”), all of these products can be considered as environmentally friendly products. They include products which are already commonly used in society because of the achievement of predecessors, as well as those with environmental contributions further enhanced by NTN’s engineering and development capabilities.
NTN continues unwavering efforts to realize its corporate philosophy by developing and providing higher-grade products that contribute to the environment while classifying the products according to environmental contribution levels based on our standards.

(1)Classification and grades of NTN products and their definition

(2)Calculation methods for environmental factors and environmental efficiency

To quantify products'environmental friendliness, NTN adopted environmental factors and eco-efficiency that are defined in the formula1and2as follows.

※1 D-eco product
※2 Values are quantified by using the QFD method (including CO₂ reduction contribution as Finished Products)
※3 From the perspective of evaluating contribution toward measures against climate change, environmental impact are calculated as CO₂ emissions generated throughout the process of raw materials mining to production (used the LCI calculation tool by the Japan Auto Parts Industries Association)

(1) Sales ratio of environmentally friendly products among driveshafts and hub bearings

Driveshafts and hub bearings, accounting for about 60% of our net sales, are all environmentally friendly products. Among them, the sales ratio of S to C-eco grade products, which show the achievement of NTN’s development efforts in recent years, continues to rise year by year, reaching 79% in the fiscal year ended March 31, 2019. In the fiscal year ending March 31, 2020, it is expected to go up to 83%.

(2) Contribution to CO₂ reduction from driveshafts and hub bearings

NTN calculates the amount of CO₂ emissions that can be reduced by the contribution of S to C-eco products throughout the assumed life period of Finished Products in comparison to the amount of CO₂ emissions in case D-eco products are continued to be used in Finished Products instead. Such amount is defined as “Contribution to CO₂ reduction” of the year the product was sold.
The contribution to CO₂ reduction from driveshafts and hub bearings for the fiscal year ended March 31, 2019 was approximately 1,400,000 tons (equivalent to approximately 600,000 liters of gasoline). Approximately 1,500,000 tons are forecasted for the fiscal year ending March 31, 2020.

Going forward, we will expand product categories subject to the calculation to include not only driveshafts and hub bearings but also other product and categories such as bearings. We will also seek the way to aggregate contributions from natural energy businesses such as NTN Micro Hydro Turbine.