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.

*The disclosed greenhouse gas emissions are calculated using the adjusted emission factor.

Subject: All locations of Nihon Parkerizing

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
	FY2022	FY2023	FY2024	FY2022	FY2023	FY2024
Scope 1	11,536	10,803	10,410	26,593	29,224	27,808
Scope 2	9,530	9,607	6,198	23,770	24,015	18,823
Scope 3	180,452	161,939	169,295	573,119	507,208	712,418
Total	201,517	182,349	185,902	623,482	560,447	759,050

[Breakdown of Scope 3 emissions]

Unit: t-CO₂

Category	The Company			The Group
	FY2022	FY2023	FY2024	FY2022	FY2023	FY2024
1 Purchased products and services	99,942	91,145	95,768	165,322	173,000	203,211
2 Capital goods	4,935	5,829	4,852	7,536	22,219	15,807
3 Fuel- and energy-related activities	4,462	4,492	4,834	10,403	11,763	13,086
4 Upstream transport/distribution	14,794	8,891	11,229	19,102	15,220	18,748
5 Waste generated in operations	1,183	1,294	1,274	2,709	3,279	2,785
6 Business travel	187	185	178	342	347	340
7 Employee commuting	561	575	537	1,038	1,082	1,000
11 Use of sold products	0	0	0	304,741	222,895	400,610
12 End-of-life treatment of sold products	54,387	52,953	53,326	61,928	57,402	56,830
Total	180,452	165,363	171,997	573,119	507,208	712,418

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

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

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

 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.

[Breakdown of water consumption]

Unit: m³

Subject: Nihon Parkerizing

Air Pollutant Emissions

We comply with the Air Pollution Control Act of Japan and other related regulations. From FY2022 to FY2024 (as of March 31, 2025), there were no administrative penalties for violations of environmental laws.
Our facilities are small enough and not subject to regulatory requirements or mandatory measurements for NOx (nitrogen oxides), SOx (sulfur oxides), or VOCs (volatile organic compounds).

We will continue to respect the intent of the relevant laws and maintain appropriate operations while promoting environmental conservation.

Dust Measurement Method: JIS Z 8808 (Filtration method)
Measurement Result: Less than 0.001 g/m³ (below the detection limit)

Volume of Industrial Waste

We aim to achieve sustainable resource circulation by promoting environmentally conscious business operations and proper waste management, thereby reducing waste emissions intensity by 1% per year.
Across our group (the company and eight domestic affiliates), we visualize the final disposal status of industrial waste and promote initiatives to reduce and recycle waste.
GHG emissions derived from industrial waste are classified as Scope 3 (Category 5), and the industrial waste emissions data used for the calculation are subject to third-party assurance by Socotec Certification Japan Co., Ltd.
As we advance, we will continue to enhance our efforts to realize a circular economy and contribute to creating a low-impact society on the environment.

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