Business activities and environmental impact

To ensure work on environmental preservation is done efficiently, the NTN Group companies in Japan have quantified investment/development costs and benefits as they are classified in guidelines released by the Ministry of the Environment. Environmental preservation costs for the fiscal year ended March 31, 2019 (including eco-friendly product R&D costs) were about 5.5 billion yen, and economic benefits from environmental preservation measures were about 1.0 billion yen.

Classification		Equipment investment		Development costs		Grand total
		Costs	Details	Costs	Details
Business areas internal costs	Pollution prevention costs	22	Environmental equipment (dust collectors etc.)	234	Cost of maintenance, inspecting, etc., environmental facilities (including dust collectors and wastewater treatment equipment)
	Expenses to preserve the global environment	206	Energy saving equipment (Invertors for air compressor, LED lighting apparatus, High-effiency air conditioning equipment)	444	Installation, maintenance and inspection etc, of energy saving equipment
	Resource recycling expenses	1		648	Labor costs related to the Environmental management system (EMS)
					Disclosure of information on advertising and NTN Report and the greening and cleaning of business sites
Upstream/downstream costs		0		34	Costs of analysis related to green procurement
Costs of management activities		0		392
					Disclosure of information on labor costs related to the EMS (advertising and NTN Reports) and the greening and beautification of company grounds
R&D costs		2,150		1,397	R&D of eco-friendly products (such as bearings, CVJ and electric modules)
Costs of social activities		0		5	Greening and cleaning outside the company
Environmental remediation expenses		0		5	Cost of soil sampling and countermeasures
Total		2,379		3,162		5,541
(Reference) Total for fiscal year ended March 31, 2018		3,369		3,150		6,519

Item	Costs	Details
Global environment preservation expenses, effects	85	Benefit from the use of energy-efficient air conditioning, compressors, and lighting
Resource recycling expenses, effects	897	Profit from sales of valuable materials such as metal sludge
Other	1	Social contribution activities etc.
Total	983
(Reference) Total for fiscal year ended March 31, 2018	844

Indicator	Fiscal year ended March 31, 2018	Fiscal year ended March 31, 2019
CO2emissions	286,000 tons	289,000 tons
Reduction of waste	Recycling rate 99.9%	Recycling rate 98.6%