YKK Group Social & Environmental Report 2015

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Environmental management

YKK Group Fourth Mid-term Environmental Management Principles (fiscal 2013–2016)

Themes Items Action plans

Corporate GovernanceStrengthen global environmental management system

• Continue and further develop group environmental management audit (enhance environmental management)• Continuestandaloneenvironmentalcrossauditswithineachregion(maintainenvironmental

compliance)

Green InnovationMonozukuri * for the next- generation (technological innovation)

• Constantlydevelopproductlinesthatcontributetoareducedcarbonfootprint,resourcerecyclingandasociety in harmony with nature

• Developnewproductsthatwillhelpsolvesocialissues

CSV: Creating Shared ValueSocial contribution through primary business (value of corporate presence)

• Promoteandfurtherdevelopcooperationwithsociety(customers,NPOs,communities,etc.)• Promoteandexpandthescopeofmutualdisclosureofenvironmentalinformation

(share approach to social issues)

Sustainability: low-carbon initiatives, resource recycling and harmonious coexistence with nature

CO2 reduction (low energy, energy saving)

• Keepworkingtoreduceelectricalusage(higherefficiency,stabilization,invention)• GraduallyreduceCO2 emissions including supply chain (introduction and expansion of Scope 3**)

Biodiversity• Introduceandexpandeffortsrelatedtotheconservationofnature,particularlywater(WET***)

• Cooperate with supply chain partners in consideration of biodiversity

Chemical substance risks• Clarifyenvironmentalobligationsineachcountryandreducerisksofmeetingthoseobligations

• Secure, maintain and improve the safety of manufacturing and products

Resource recycling• Reducewastevolumeandincreaserecyclingrate

• IntroduceMFCA****tofurtherincreaseuseofresourcerecyclingandimproveusageefficiency

* Monozukuri : Japanese term that has multiple meanings centering on manufacturing, such as “design” and “craftsmanship”** Scope 3: GHG emissions from supply chain (at stages of manufacture, transportation, business trip, product use, etc.)*** WET (Whole Effluent Toxicity): A method of wastewater management that uses biological impact as an indicator. It assesses groups of species—crustaceans, algae, and fish.****MFCA(MaterialFlowCostAccounting):Anenvironmentalmanagementaccountingsystemdesignedtomaintainabalancebetweenresourceefficiencyandeconomicefficiency

Our approach to environmental activities

YKK Group Fourth Mid-term Environmental Management Principles(Fiscal 2013-2016)

—Contribution to the creation of a sustainable society—

Monozukuri (manufacturing operations) in quest for “low energy/energy saving”

The YKK Group contributes to the creation of a sustainable society in

conformity with its environmental pledge, by caring for the environment

and by creating new values using its technological capabilities.

YKK Group Environmental Pledge

It is recognized today as being a most important duty for all humankind that

we preserve the abundantly endowed global environment and that we

transfer it to the next generation in a sound condition. Striving to be an

earth-friendly company, the YKK Group proclaims that it will address and

promote “harmony with the environment” as the highest priority of its busi-

ness activities.

September 20, 1994Tadahiro Yoshida, YKK Group

YKK Group Social & Environmental Report 2015

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Environmental management

INPUT OUTPUTYKK Group

Environmental impact mass-balance of YKK Group plants/offices in Japan (fiscal 2014)

Electric power (power purchased from power companies)

510.52 million kWh

CO2 414,000 t

NOx 55.1 t

SOx 13.0 t

Wastewater 16.25 million m3

BOD 40.8 t

Amount of waste disposed 93,895 t

Amount of waste recycled 92,907 t (recycling rate) 98.9%

Fuel (heavy oil, kerosene, gas, light oil, gasoline)

Energy equivalent 1,482 TJ

Water (not including reused water) 17.39 million m3

Chemical substances (PRTR substances ) 1,773 t

Aluminum 130,450 t Copper 12,919 t Recycled copper 1,064 t

Copy paper 312 t

The YKK Group’s fiscal 2014 environmental targets and performanceThemes Items Fiscal 2014 action plans Fiscal 2014 results Rating

Corporate Governance

Strengthen global environ-mental management sys-tem

Continuously perform Group environmental management audits (four bases in Japan)

Performed at four bases in Japan and two subsidiaries abroad

Implement environmental cross audits led by each regional headquarters Initiated environmental cross audits in each region

No violation of environmental laws and regulations No violation or environmental accident identified

Green InnovationMonozukuri * for the next generation (technological innovation)

Develop eco-products to meet social needs

YKK AP: Created in-house criteria for evaluating and certifying products as meeting industry-leading levels of eco-friendli-ness; Won external recognition for APW430Fastening: Prepared development plans in line with mainstay eco-friendly product themes

CSV: Creating Shared Value

Social contribution through primary business (value of corporate presence)

Continuously hold YKK Group Tree Planting Day with the goal of planting a total of 30,000 trees

Held at 46 bases worldwide, with a total of 33,500 trees plant-ed

Provide environmental education programs utilizing Furusato-no-Mori forest

Provided environmental education programs in tandem with NPOs based in the Kurobe area, hosting local elementary school students during the summer vacation period

Sustainability: low-carbon initiatives, resource recycling and harmonious coexistence with nature

CO2 reduction (low energy, energy saving)

Roll out the assessment of Scope 3 emissions to all bases in Japan

Calculated and disclosed the Scope 3 emissions from bases in Japan and overseas

Promote CO2reductionmeasures(realizeadrasticenergyeffi-ciency improvement)

Achieved a 16.8% reduction in unit energy consumption at the Kurobe Manufacturing Center compared with the fiscal 2010 level

BiodiversityEstablish methods for managing effluent by utilizing the native biota

Performed Whole Effluent Toxicity (WET) Testing as well as sur-veys on the impact of effluent emitted into the ocean

Chemical substance risksEliminate the use of mercury in Group operations in all six regions in anticipation of the expected enforcement of the Minamata Convention on Mercury

Prepared lists of equipment containing mercury at all bases and a master plan for disposing of it

Resource recycling Aim for a 99% recycling rate for all YKK Group bases in Japan Achieved a 99% recycling rate at all Group bases in Japan, includingaffiliates

* Monozukuri : Japanese term that has multiple meanings centering on manufacturing, such as “design” and “craftsmanship”

YKK Group Social & Environmental Report 2015

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Environmental accountingFiscal 2014 environmental conservation costs (total for YKK Group companies in Japan) (Unit: ¥1 million/year)

Item Description of main initiatives Equipment investment Cost

Costs withinbusiness area

Prevention of pollution

Operation, upgrading and maintenance of wastewater treatment facilities 195 912Conservation of the global environment

Theimprovementofenergy-savingefficiency,replacementofairconditioningandfluorescentlightingequipmentsandrenewalofcompressorsandhighefficiencyboilers

843 325

Recycling of resources

Promotion of resource recycling and management of industrial waste 56 745

Business area internal cost total 1,094 1,982

Upstream/downstream costsCost for processing debris and cost of equipment that helps operators load and unload cardboard boxes

0 504

Management activities costsThe maintenance of ISO certifications, participation in environmental exhibits, environ-mental reports, environmental analyses, tree planting and biodiversity protection

0 412

R&D costs Development of eco products 0 2,505Social activities costs Collaborative volunteer activities with local community 0 44Environmental damage repair costs Soil survey and remediation 110 0Other costs Inspection/management of fire extinguishing equipment 17 32Total 1,221 5,479

Fiscal 2013 809 4,975Fiscal 2012 650 5,191

Fiscal 2011 697 4,694

Fiscal 2010 291 4,457

Environmental equipment investment Environmental costsSales

(Unit: ¥100 million)

Total equipment investment(Unit: ¥100

million)(Unit: ¥100

million)Ratio to sales

(%)

Equipmentinvestment ratio

(%)

(Unit: ¥100 million)

Ratio to sales(%)

Fiscal 2014 12.2 0.3 4.1 54.8 1.4 3,844 295Fiscal 2013 8.1 0.2 3.3 49.6 1.3 3,904 245

Fiscal 2012 6.5 0.2 3.0 51.9 1.5 3,465 220

Fiscal 2011 7.0 0.2 3.5 46.9 1.4 3,284 202

Fiscal 2010 2.9 0.1 1.9 44.6 1.4 3,116 150

Environmental management

0

20

40

60

80

Record of ISO 14001 and other environmental management system certifications(total sites certi�ed)

(Number of sites)

(FY)

Japan (ISO 14001) Japan (Eco Action 21) Overseas (ISO 14001)

25

10

21

36

50

61 60

71 71717171

200920082007200620052004200320022001200019991998 2010 2014201320122011

57

666967

In February 2005, YKK AP Inc. unified 10 sites that had been independently certified into one organization, resulting in a reduction in the total site count.In May 2010, YKK Rokko Corporation acquired the Eco Action 21 certification. This completed the implemen-tation of an environmental management system at all domestic Group companies.Third-party ISO 14001 verification and an internal audit confirmed that there was no material violation of environment-related laws and regulations. Preparation is underway to respond to the anticipated revision of ISO 14001.