Business activities and environmental impact

To ensure work on environmental preservation is done efficiently, the NTN Group companies in Japan have quantified environmental preservation 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, 2020 (including environment- contributing products R&D costs) were about 4.5 billion yen, and economic benefits from environmental preservation measures were about 0.9 billion yen.

Classification		Equipment investment		Development costs		Grand total
		Costs	Details	Costs	Details
Business areas internal costs	Pollution prevention costs	15	Environmental equipment(dust collectors etc.)	204	Cost of maintenance, inspecting, etc., environmental facilities(including dust collectors and wastewater treatment equipment)	219
	Expenses to preserve the global environment	145	Energy saving equipment(Invertors for air compressor, LED lighting apparatus, High-effiency air conditioning equipment)	156	Installation, maintenance and inspection etc, of energy saving equipment	301
	Resource recycling expenses	0		865	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	865
Upstream/downstream costs		0		18	Costs of analysis related to green procurement	18
Costs of management activities		0		370	Disclosure of information on labor costs related to the EMS (advertising and NTN Reports) and the greening and beautification of company grounds	370
R&D costs		935		1,748	Research and development of products including environment-contributing products	2,638
Costs of social activities		0		5	Greening and cleaning outside the company	5
Environmental remediation expenses		0		5	Cost of soil sampling and countermeasures	5
Total		1,095		3,371		4,466
(Reference) Total for fiscal year ended March 31, 2019		2,368		3,162		5,541

Item	Costs	Details
Global environment preservation expenses, effects	51	Benefit from the use of energy-efficient air conditioning, compressors, and lighting
Resource recycling expenses, effects	849	Profit from sales of valuable materials such as metal sludge
Total	900
(Reference) Total for fiscal year ended March 31, 2019	983

Indicator	(Reference) Fiscal year ended March 31, 2019	Fiscal year ended March 31, 2020
CO2 emissions	289 ktons	270 ktons
Reduction of waste	Recycling rate 98.6%	Recycling rate 97.6%