EnvironmentEnvironmental Data

Energy and Greenhouse Gases

We regard environmental preservation as one of the most critical management issues. We are committed to energy conservation and reduction of greenhouse gases. Regarding energy use, we aim for a 1% annual reduction in accordance with the "Act on Rationalization of Energy Use and Shift to Non-fossil Energy." In addition, we are implementing various measures to reduce greenhouse gases by 30% by FY2030.

* We have been calculating GHG emissions using the “basic emission factors”. In FY2021, we have decided to disclose calculated values using “adjusted emission factors”, which more closely reflect actual conditions.

Subjects: Nihon Parkerizing (excluding Kiyosato Education Center, Tomiura beach house, Akakura Training Center, Utsunomiya Medical Factory)

Domestic Group's GHG Emissions

Scope 1:  Direct emissions resulting from the use of fuel by the company
Scope 2:  Indirect emissions resulting from the use of electricity or heat purchased by the company
Scope 3:  Other indirect emissions other than those included in Scope 1 and Scope 2

Subject: Nihon Parkerizing, Parker Engineering, Parker Processing, Oita Parkerizing, Komatsu Parkerizing, Japan Kanigen, Hamamatsu Netsushori Kogyo, Million Chemicals, and Kyodoyuso.

[Breakdown of GHG emissions by scope]

Unit: t-CO₂

	The Company		The Group
	FY2023/3	FY2024/3	FY2023/3	FY2024/3
Scope 1	11,536	10,803	26,593	29,224
Scope 2	9,530	9,607	23,770	24,015
Scope 3	180,452	161,939	573,119	507,208
Total	201,517	182,349	623,482	560,447

[Breakdown of Scope 3 emissions]

Unit: t-CO₂

Category	The Company		The Group
	FY2023/3	FY2024/3	FY2023/3	FY2024/3
1 Purchased products and services	99,942	91,145	165,322	173,000
2 Capital goods	4,935	5,829	7,536	22,219
3 Fuel- and energy-related activities	4,462	4,492	10,403	11,763
4 Upstream transport/distribution	14,794	5,466	19,102	15,220
5 Waste generated in operations	1,183	1,294	2,709	3,279
6 Business travel	187	185	342	347
7 Employee commuting	561	575	1,038	1,082
11 Use of sold products	0	0	304,741	222,895
12 End-of-life treatment of sold products	54,387	52,953	61,928	57,402
Total	180,452	161,939	573,119	507,208

Category 8, 11, 13, 14, and 15: N/A
Category 9: Not calculated because the amount is small
Category 10: Not calculated because the calculation is difficult

To ensure the transparency and reliability of the disclosed GHG (greenhouse gas) emissions data, we have received assurance from an external organization (SOCOTEC Certification Japan K.K.) since FY2022.

Independent assurance report

Overseas Group's (Excluding Domestic Group) GHG Emissions

From FY2023, we have calculated GHG emissions by expanding the scope to include major overseas group companies. We plan to promote specific reduction measures as a group to reduce GHG emissions for the entire group.

Unit: t-CO₂

	Overseas Group
Scope 1	18,025
Scope 2	39,460
Total	57,486

Unit: t-CO₂

	FY2024/3
Gasoline	475
Kerosene	71
Diesel oil	967
Heavy Oil Type A	226
LPG	15,391
Town gas	895
Electricity	39,460
Total	57,486

Subject: Rizhao Parker Surface Treatment Co., Ltd., Parker Surface Technologies (Shanghai) Co., Ltd., Guangzhou Parkerizing Co., Ltd., Foshan Parker Surface Modification Co., Ltd., Chung Jih Metal Treatment Chemicals, Inc., Dae Han Parkerizing Co., Ltd., Nihon Parkerizing (India) Pvt. Ltd., P.T. Nusantara Parkerizing, P.T. Parker Metal Treatment Indonesia, Thai Parkerizing Co., Ltd., Parker Surface Technology Asia Pacific Co., Ltd., Philippine Parkerizing, Inc., Vietnam Parkerizing Co., Ltd., Vietnam Parkerizing Hanoi Co., Ltd., Nihon Parkerizing Malaysia Sdn. Bhd., Parker Trutec Inc., Parker Trutec Mexicana S.A. De C.V.

Water Consumption

We use water in the manufacturing of chemicals and toll processing. We strive to effectively use water resources, including reusing rinsing water and steam drains.

Water Resources

We use Baseline Water Stress, an evaluation indicator of Aqueduct Country Ranking developed by the World Resources Institute, to check the water stress conditions in the countries where the Group’s business sites are located. We strive to manage our water consumption as a precious resource and to make effective use of water resources.

Created based on scores by country for Base Water Stress used in Aqueduct from the World Resources Institute

Air Pollutant Emissions

We are conducting production activities in compliance with regulation values under the Air Pollution Control Act. As a result of introducing new facilities and proceeding with the energy conversion of facilities, the emissions of NOx, SOx, and dust generated during their use are below the minimum detection limit.

Dust Measurement method: JIS-Z-8808 (filtration collection method)
Measurement result: Less than 0.001 g/m³ (less than the lower limit of detection)

Substances Subject to the PRTR Act

In accordance with the "Act on the Assessment of Releases of Specified Chemical Substances in the Environment and the Promotion of Management Improvement (PRTR Act)," every year, Nihon Parkerizing notifies the government of the amount of designated chemical substances released into the environment and the amount transferred. The PRTR Act covers chemical substances, including volatile organic compounds (VOCs), which are considered hazardous to humans and ecosystems, and we are working to properly manage them and reduce the amount released into the atmosphere.

Volume of Industrial Waste

We are appropriately managing industrial waste. We aim to reduce industrial waste emissions by 1% per year and operate our business in an environmentally friendly manner.

Scope: Nihon Parkerizing