Resource Recycling and Pollution Prevention

The NTN Group promotes initiatives toward achieving a circular economy to ensure the sustainable use of finite resources.
We strive to reduce waste and achieve efficient utilization of raw materials and water, by thoroughly implementing the 3Rs (reduce, reuse, and recycle).
We also impose strict control on chemical substances used in our products and manufacturing processes, and actively promote conversion to alternatives to substances subject to Japan’s Pollutant Release and Transfer Register (PRTR) Act.
NTN sets annual targets for waste generation control, maintenance of high recycling rates, and reduction of the volume of chemical substances used, and engages in continuous improvement.

Material balance

The NTN Group is working to reduce environmental impact in its business activities. As part of this effort, we have introduced the concept of “material balance,” which involves understanding and analyzing energy and resource inputs (inputs) and environmental impacts such as waste and CO₂ emissions (outputs). Through this approach, we are promoting the circular use of resources, waste reduction, and energy conservation to achieve harmony with the environment.

■Material balance of business activities (FY2025) [Global]

＊1 Applies to domestic sites, primarily targeting electric furnace materials made from iron scrap. Data aggregation began in 2024.

＊2 For electricity energy, we use the physical quantity of 3.6MJ/kWh. For fuel energy, we use the emission factors listed in the “Emissions Unit Values Database for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Version 3.5)” published by the Ministry of the Environment.

＊3 For domestic business sites, we use “Electric Utility Emission Factors (Ministry of the Environment and Ministry of Economy, Trade and Industry)”. For overseas business sites, we use emission factors from “Emissions Factors (IEA)”.

＊4 Limited to manufacturing sites that discharge wastewater into public water bodies.

＊5 Following a review of the data collection and aggregation processes for NOx, BOD, COD, nitrogen compounds, and phosphorus compounds at business sites in Japan for FY2023 and FY2024, the previously disclosed figures were recalculated. The figures presented in this table are the recalculated figures and therefore differ from those previously disclosed.

Reducing Environmental Impact Across the Entire Product Life Cycle

The NTN Group recognizes that environmental impact occurs throughout the entire product life cycle, from raw material procurement and manufacturing to use, end-of-life collection, and recycling.
The NTN Group positions Life Cycle Assessment (LCA) as one of the foundations of product development and business decision-making and promotes its application.
LCA is a method for assessing environmental impact throughout the product life cycle, including raw material procurement, manufacturing, use, end-of-life collection, and recycling.
By applying LCA, the NTN Group identifies processes with significant environmental impact and areas for improvement, leading to reviews of product designs and manufacturing processes.
In addition to advancing its own initiatives, the NTN Group works with suppliers and customers to reduce environmental impact across the entire product life cycle.

Initiatives at each stage of the life cycle

Raw material procurement
In manufacturing our products, we actively use recycled steel made from iron scrap.
By reducing the use of new resources, we contribute to CO₂ reduction from the raw material stage onward.
In fiscal year 2025, 54% of the steel used at our domestic business sites was recycled steel.

Manufacturing
At our plants, we visualize not only the amount of energy used but also data such as temperature, processing time, and equipment operating status.
Based on this information, we are advancing initiatives to reduce energy waste.
We are also reviewing equipment upgrades and production process improvements while considering which processes or equipment would yield the greatest environmental benefit if improved.

Use and maintenance
The energy consumed by customers when using our products, as well as how long the products can be used, are also important considerations in addressing environmental impact.
Through longer-life bearing designs and reduced friction, we reduce energy loss during use and lessen the burden on the environment.

End-of-life collection and recycling
We are advancing initiatives to refurbish used bearings so that they can be used again.
This extends product lifespans and realizes circular manufacturing that makes efficient use of resources without waste.
Beyond manufacturing new products, we are also developing new business models that make use of refurbished products.

Contributing to the environment through products and services

We apply the issues identified through this analysis to improve our products and services.

Product development that leads to energy conservation
With the aim of extending the driving range of electric vehicles (EVs) and reducing the electricity consumption of industrial machinery, we are advancing energy conservation through miniaturization, weight reduction, and friction reduction in the following products.

• Bearings
• Driveshafts
• Hub bearings

Bearing refurbish business
We provide services to refurbish used bearings, primarily in the paper manufacturing, steel, and railway fields.
By combining refurbishment work with training on proper usage and mechanisms for monitoring equipment condition, we generate the following benefits.

• Equipment can continue to be used stably
• Energy efficiency improves
• Resource consumption is reduced

Evaluation of environmentally conscious products
The NTN Group evaluates products that make a high degree of environmental contribution using our own standards.
Through this framework, the contribution to CO₂ reduction from environment-contributing products in fiscal year 2025 was approximately 1.876 million tons.

Reducing energy waste through IoT
We utilize IoT technologies such as “Talking Bearings” to make equipment conditions easier to visualize.
By detecting early signs of abnormalities and appropriately adjusting operating conditions, we reduce unnecessary energy consumption.

Looking ahead

The NTN Group aims to achieve carbon neutrality (Scope 1 and 2) from our own business activities by the fiscal year 2035.
Going forward, we will continue to view product design, procurement, manufacturing, use, and reuse as a single continuous flow, and advance environmentally conscious initiatives.
Furthermore, we will take on the challenge of new technologies, including wind power generation and hydrogen-related fields, and contribute to realizing a sustainable society.

■Approach to reducing environmental impact across the product life cycle

Water resource management initiatives

The NTN Group considers water resource conservation to be an important issue and aims for sustainable water resource management. Specifically, we are conducting the following initiatives.

■Initiatives for sustainable water resource management

■Initiatives for efficient water resource management

Through these initiatives, we will realize sustainable water resource management and contribute to environmental conservation.

Reducing water consumption

Water consumption intensity for fiscal year 2025 was 3.25 ㎥/million yen globally, achieving our target of 3.95 ㎥/million yen. We will continue to aim for further reduction of water consumption intensity in fiscal year 2026.

■Water consumption and usage intensity (FY2025)

＊Water consumption intensity is calculated in the main text using “production value,” based on an internal price indicator, as the denominator. On the ESG Data page, it is calculated using “net sales” as the denominator to enhance comparability for external stakeholders.

Water stress analysis and sustainable water resource management

The NTN Group conducts water stress analysis using the Aqueduct, a tool provided by the World Resources Institute (WRI), and utilizes it for managing water risks such as water resource depletion. Through this approach, we understand future water stress conditions and promote sustainable water resource management. We also regularly evaluate water stress conditions to identify high-risk business sites.
Furthermore, for sites located in regions with high water stress, we track actual data on water intake and wastewater volume to continuously verify the actual state of water use. In addition, by analyzing water use by region, we quantitatively grasp the actual water use conditions in each area, which supports the consideration of countermeasures suited to the characteristics of each region.
The table below shows water intake and wastewater volumes at major sites located in regions with high water stress. The figure below also shows AQUEDUCT’s projected changes in water stress by 2050, alongside FY2025 water usage by region. Based on this information, we identify both regions where water risk is expected to increase in the future and regions where current water usage is high, and use this to prioritize the regions and sites where countermeasures should be implemented.

We recognize India as a region with high water risk, and are implementing the following specific actions:

• Introducing efficient water utilization technologies and establishing recycling systems to reduce water consumption.
• Cooperating with local communities to jointly implement water resource protection activities.
• Regularly monitoring water stress conditions and reviewing countermeasures, as necessary.

We will continue to predict and evaluate water risks and work to reduce business continuity risks.

■Water intake and wastewater volume at major sites located in regions with high water stress (FY2025)

■AQUEDUCT projected future water stress (2050) and water usage by region (FY2025)

Water resource management initiatives in India

Reducing water consumption through improvements to water supply equipment

NTN NEI Manufacturing India Private Limited (NNMI, India) is working to reduce water consumption, as part of its water resource management efforts at its Indian site, by reviewing the operation of everyday equipment.
This time, NNMI implemented improvements to water supply equipment used for domestic water purposes outside the production process at shared facilities—such as restrooms and cleaning—and also reviewed water supply methods to achieve more efficient water use.
Prior to the improvement, the pumps used in this equipment repeatedly operated at high pressure, which tended to increase water consumption. Analysis of the cause confirmed that the existing pumps were not equipped with VFDs (variable frequency drives), making it difficult to control flow rate appropriately according to actual usage conditions.
To address this issue, NNMI replaced the conventional pumps with VFD-controlled pumps. This enabled water supply control according to the actual amount of water required, suppressing excess water delivery and achieving a reduction in water consumption for domestic water use outside the production process.
The average monthly water consumption before the improvement, from February to November 2025, was 603.67 kiloliters. After the improvement, water consumption was 448 kiloliters in December 2025 and 352 kiloliters in January 2026, confirming an overall reduction in usage. The reduction amounted to 155 kiloliters in December 2025 and 255 kiloliters in January 2026, quantitatively demonstrating the effectiveness of this initiative.
This initiative is expected to reduce water consumption by approximately 100 kiloliters per month on average. This equipment improvement is one specific initiative aimed at making effective use of finite water resources. NNMI will continue to advance further sophistication of water resource management through improvement activities rooted in on-site operations.

■Water supply pump equipment upgraded to reduce water consumption (NNMI, India)

Waste reduction and maintaining high recycling rates

In fiscal year 2025, we worked on improving the recycling rate, achieving 96.9% (global), which fell slightly short of our target of 97.0% (global). In fiscal year 2026, we will continue with efforts to minimize the volume of waste generation, and work toward achieving our target recycling rate, using the reduction of waste generation and the maintenance of a high recycling rate as key indicators.

■Waste Generated and Recycling Rate (FY2025)

Solidification of sludge generated in grinding processes

The NTN Group has developed grinding sludge solidification equipment and introduced it within the Group, as well as selling it to external parties. Sludge discharged during the grinding process of metal components contains a large amount of coolant liquid in addition to metals. However, the introduction of this equipment can realize material recycling by separating the coolant liquid and compressing the sludge into solids with a high metal content. Furthermore, the separated coolant liquid is filtered within the equipment and reused. In fiscal year 2025, we recycled 4,123 tons of solidified grinding sludge.

■Grinding Sludge Solidification Equipment Results (FY2025)

	Units in operation	Recycled weight (tons/year)
Domestic business sites	54	3,143
Overseas business sites	13	980＊1
Total	67	4,123

＊1 Following a review of the reporting scope for the FY2025 results of overseas business sites disclosed in the previous year, it was found that some weights outside the calculation scope had been included. As a result of refining and reviewing the reporting scope in accordance with the calculation criteria, the figure decreased significantly from the previously disclosed amount.

Reducing packaging materials

Examining Packaging Material Reduction Through the Use of Returnable Plastic Containers

As part of its resource recycling initiatives, the NTN Group is reviewing ways to reduce packaging materials.
One area of focus is returnable plastic containers used for in-plant and inter-site logistics.
Because returnable plastic containers can be used repeatedly, they may help reduce the use of single-use packaging materials. We are currently organizing information on the containers used at each business site, including specifications, weight, quantity, and whether recycled materials are used.
At this stage, quantifying the company-wide reduction in plastic waste achieved through the use of returnable containers presents challenges, such as establishing a baseline year and understanding actual logistics conditions. We are therefore first prioritizing an understanding of the actual situation, including container types, sites of use, and quantities used.
Going forward, based on the data collected, we will consider reviewing container specifications and expanding the use of products made with recycled materials, and will continue to advance our efforts to reduce packaging materials.
The NTN Group will continue to work on the effective use of resources and the reduction of environmental impact, on the premise of ensuring product quality.

Reducing plastic waste

The NTN Group is strengthening initiatives to reduce plastic waste. Through improving recycling technologies and proper waste treatment, we aim to reduce environmental impact and realize a better environment and lifestyle.

Response to the Plastic Resource Circulation Act

To respond to the Plastic Resource Circulation Act, the NTN Group is strengthening cooperation throughout the supply chain to reduce plastic usage and promote recycling. Specifically, we are working on creating mechanisms to promote circular resource utilization through product design reviews, recycling system development, technology development, and information sharing. We also promote environmental awareness and behavioral change through employee education and activities to enhance understanding of important environmental measures. Through these efforts, we contribute to achieving both effective resource utilization and environmental conservation.

Reuse of production by-products

Rather than directly disposing of production by-products such as coolant generated during production, the NTN Group is discussing operational improvements and regeneration possibilities with external contractors to promote reuse. For example, we are advancing initiatives to regenerate used coolant through filtration and refining processes for reuse in production processes. Through this approach, we are reducing waste and effectively utilizing resources.

Mineral waste recycling business

At NTN CASTING CORP. (Izumo-shi, Shimane), we launched a mineral waste recycling business through public-private cooperation with full support from Shimane Prefecture in FY2021. At that time, mineral waste that had previously been disposed of in landfills was, through insolubilization treatment involving the kneading of an insolubilizing agent, brought into compliance with recycling standards, becoming a resource that can be used as roadbed material and embankment material for development sites.

Through the use of insolubilization treatment equipment, in fiscal year 2025 we recycled the entire 940,830 kilograms of mineral waste generated at NTN CASTING CORP., achieving a 100% recycling rate. This mineral waste recycling has also brought the recycling rate at NTN CASTING CORP.’s business site to 100%, advancing our zero-emission initiatives.

We will continue to work on reducing environmental impact and promoting resource circulation in cooperation with local communities and related organizations.

The NTN Group strives to reduce environmental impact associated with business activities through exhaust gas reduction utilizing the latest environmental technologies, water pollution prevention measures including circular water utilization systems, soil contamination countermeasures through regular soil inspection and chemical substance management, recycling activities promoting waste reuse in manufacturing processes, and employee environmental education and community awareness activities.

Current status and countermeasures for air pollution

Air pollution is becoming a serious global environmental issue. The NTN Group contributes to improving air quality by promoting exhaust gas reduction and the introduction of clean energy.

Preventing air pollution through oil mist capture

At AMERICAN NTN BEARING MFG. CORP. Elgin Plant (EMF), as part of efforts to prevent air pollution, we have introduced mist collection equipment that captures oil mist and consolidates it in a recovery system, reducing the dispersion of oil mist into the working environment.
In addition, local exhaust hoods have been installed in some processes to efficiently capture oil mist suspended in the air.
Through these initiatives, we are reducing the impact on the working environment and the surrounding environment, while also strengthening the management of emissions into the atmosphere.
In addition, based on Illinois state air-related permits, EMF strives to preserve the local environment by ensuring appropriate management of emitted substances and compliance with laws, regulations, and permits.
Going forward, we will continue the appropriate operation and maintenance of equipment while further reducing air-related environmental impact and strengthening our pollution prevention initiatives in business activities.
The NTN Group will continue to work on reducing air-related environmental impact and preventing air pollution through the appropriate management and conversion to alternatives of chemical substances used in manufacturing processes, appropriate management of emitted substances, compliance with laws and permits, and appropriate operation of related equipment.

■Oil mist collection equipment (EMF)

Response to the Fluorocarbons Emission Restraining Law

Based on the Fluorocarbons Emission Restraining Law (Act on Rationalization of Use and Proper Management of Fluorocarbons), the domestic group manages the leakage volume of alternative fluorocarbons (HCFC and HFC) and records of inspections and maintenance performed for refrigeration equipment and cleaning solvents for machine parts subject to the law. The leakage volume for the entire domestic group in fiscal year 2025 was 1,121 tons-CO₂e (NTN alone: 847 tons-CO₂e). Going forward, we will strengthen management systems according to the scale of business sites and promote switching to refrigeration equipment and cleaning solvents for machine parts that do not use R22 (HCFC-22), which is a primary subject of the law, while actively considering the introduction of non-fluorocarbon equipment that does not use alternative fluorocarbons.

■Fluorocarbon Leakage Volume

Addressing water pollution

Water pollution has significant impacts on ecosystems. The NTN Group strives to maintain clean water environments through innovation in wastewater treatment technology and thorough water quality management.

Preventing Water Pollution by Reducing the Volume of Chemical Substances Used in Cleaning Processes

At ICSA INDUSTRIA CUSCINETTI S.P.A. (ICSA), as part of efforts to prevent water pollution, we trial-introduced a bio-based detergent for the washing machines used in the cleaning process.
This initiative aims to reduce the chemical substances flowing into water treatment facilities and thereby lessen the environmental impact associated with wastewater treatment.
We have confirmed that this detergent meets our quality requirements in terms of cleaning performance, efficiency, and rust prevention, and we will continue to evaluate the results regarding the reduction of chemical substance usage and treatment load.
As favorable results were confirmed in trials using ICSA’s small washing machines, ICSA expanded the use of this detergent to its main washing machines as well. In parallel, ICSA has begun analysis to compare the quality of treated plant wastewater before and after the use of the detergent. Through this, ICSA aims to further strengthen its pollution prevention initiatives in its business activities.
The NTN Group will continue to work on the conservation of water resources and the prevention of water pollution through the appropriate management of chemical substances used in manufacturing processes and adoption of alternative substances, water quality management of wastewater, and improved efficiency of wastewater treatment.

■Use of Bio-Based Detergent in Washing Machines (ICSA)

Impact of noise pollution and prevention

Noise pollution adversely affects people’s health and quality of life. The NTN Group aims to provide quiet environments through the development and application of noise reduction technologies.

Noise countermeasures aimed at coexistence with the local community

At NTN KINAN CORP., we are implementing noise countermeasures tailored to conditions both inside and outside the site, with the aim of minimizing the impact on residents living near the plant. On the residential side (river side) of the No. 1 Plant, cedar trees have been planted at approximately one-meter intervals, an initiative undertaken with consideration for harmony with the surrounding environment.
In addition, sound-absorbing materials have been installed on the walls and ceilings of the forging workshop, and soundproof walls have been installed to reduce noise transmitted outside the plant. Furthermore, equipment that generates loud noise is positioned away from residences and entrances, or in the center of the plant, to reduce the impact on the surrounding area.
The NTN Group will continue to improve the operating environment at each of its sites, and will continue to promote manufacturing that values coexistence with local communities.

■Tree planting around the plant to reduce noise (NTN KINAN CORP.)

Reducing the Handling Volume of Chemical Substances Subject to the PRTR Act

The NTN Group is working to understand and reduce the handling volumes of chemical substances subject to the PRTR Act among the substances used in manufacturing processes at its business sites in Japan. Following a legal revision that took effect in April 2023, the number of substances subject to the PRTR Act increased to 515, including 23 Specified Class I Designated Chemical Substances. In FY2025, we identified the applicable purchased items, collected safety data sheets (SDSs), and calculated the handling volumes of the relevant chemical substances. For the eight substances with particularly high handling volumes shown in the table below, we are promoting substitution with raw materials containing less hazardous substances. Through these initiatives, we will further strengthen our environmental conservation efforts and fulfill our responsibilities to local communities.

■Handling Volumes of Chemical Substances Subject to the PRTR Act (FY2025)

Substance name	All substances		When substances contained in steel materials and other substances are separated
	Handling volume (tons)	％	Handling volume (tons)	％
Chromium and trivalent chromium compounds＊	3,905	44.7%	3,905	45.5%
Manganese and its compounds＊	1,842	21.1%	1,842	21.5%
Nickel＊	1,570	18.0%	1,570	18.3%
Molybdenum and its compounds＊	1,264	14.5%	1,264	14.7%
			8,581	100%
Diethanolamine	45	0.5%	45	27.4%
Boron compounds	34	0.4%	34	20.9%
Silicon carbide	14	0.2%	14	8.8%
Trimethylbenzene	14	0.2%	14	8.6%
Xylene	13	0.2%	13	8.3%
Sulfide (2,4,4-trimethylpentene)	10	0.1%	10	5.9%
Hexahydro-1,3,5-tris(2-hydroxyethyl)-1,3,5-triazine	9	0.1%	9	5.8%
Water-soluble zinc compounds	7	0.1%	7	4.5%
Others	16	0.2%	16	9.9%
Total	8,745	100%	163	100%

＊Substances contained in steel

Management of hazardous waste and other waste, and management of transportation and disposal contractors

The NTN Group disposes of waste generated at its business sites in accordance with the laws and regulations of each country, and the Japanese group companies dispose of waste in compliance with the “Waste Management and Public Cleansing Act” (Waste Disposal Law). In fiscal year 2025, the volume of specially controlled waste was 567 tons. We will continue to ensure that all waste, including specially controlled waste, is properly disposed of in accordance with laws and regulations, and will thoroughly manage the outsourcing of transportation and disposal to licensed contractors.

■Specially Controlled Waste Volume

Response to the PCB Special Measures Act

In accordance with the Act on Special Measures Concerning Promotion of Proper Treatment of PCB Wastes, the NTN Group in Japan has been promoting the identification and management of equipment containing PCBs and the reliable implementation of systematic disposal. We are currently continuing to investigate equipment containing low-concentration PCBs, and are advancing efforts toward completing disposal of all such equipment by the statutory deadline of the end of March 2027.
While we have previously worked toward completing disposal ahead of the statutory deadline, in some cases the effects of production restructuring and other factors have required us to continue confirming and addressing the status of equipment subject to treatment. Going forward, we will work in coordination with each business site to steadily proceed with ledger organization and on-site confirmation, and will strive to reliably complete disposal within the statutory deadline.
We will continue to prioritize compliance with laws and regulations above all else, and strive to reduce environmental impact and fulfill our social responsibilities.