Environmental Management

To promote environmental management, the Shinko Group has established an environmental management system based on the international standard ISO14001 as a framework for balancing business activities with social needs and environmental issues. Through the PDCA cycle, we strive for continuous improvement and betterment of our environmental performance.

Reporting boundary: Shinko Group in Japan

Environmental Activity Promotion System

We have made environmental protection a top management priority and are engaged in environmental preservation activities based on a promotion system established in accordance with the Shinko Way, the basic philosophy of the Shinko Group.

Environmental Activity Promotion System

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Environmental Management Promotion System

To promote environmental management, we have established an Environmental Committee chaired by the Representative Director of Board, President. As the highest deliberative body for environmental measures, the Committee reviews medium-and long-term issues, formulates policies, and proposes, deliberates, and decides upon matters related to environmental management, including measures to address business risks and opportunities related to climate change, waste, water resources, and biodiversity. These results are reported to the Board of Directors, which oversees environmental activities. We have established a structure that is described above.
We have also established an Environmental Measures Execution Committee as a subordinate organization under the Environmental Committee to deliberate matters such as the progress of activities to achieve environmental goals. While strengthening governance through the establishment of this promotion system, we are promoting the maintenance and improvement of our environmental management system.

Environmental Management Promotion System

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Identifying Environmental Challenges

The Paris Agreement1 and the Sustainable Development Goals (SDGs) are accelerating efforts to realize a globally sustainable society, and Japan has declared that it will "Aim for carbon neutrality and a decarbonized society by 2050." In tandem with efforts to fight climate change, global movements to solve social issues are accelerating in such areas as transitioning to a circular economy2, tackling the marine plastic problem, conserving water resources, and achieving a nature-positive3 world.
Reflecting this situation, we have decided upon the environmental issues that we should be addressing in order to practice better business ensuring that our activities are environmentally friendly. In addition to identifying the effects that our business activities have on the environment, we clarify the challenges and requests from stakeholder related to the environment and make them the issues to work on that year, while gauging the importance and urgency of their potentially deleterious impact (risks) or beneficial impact (opportunities). We reflect these environmental challenges in the activities of our environmental management system, and are deploying our initiatives to resolve them.


1 Paris Agreement: An international framework for the prevention of global warming agreed to at the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) held in Paris in 2015
2 Circular economy: A circular economic system that is designed on the premise that recycling and reuse will occur starting at the stage where goods and services are produced. It maximizes the value of resources and products and minimizes resource consumption and waste generation by reducing the input and consumption of new resources as much as possible. Intended to replace the conventional economic system based on the premise of "mass production, mass consumption, and mass disposal."
3 Nature positive: The nature positive initiative seeks to arrest the loss of biodiversity and put the environment on a recovery path. Natural restoration.

Risks and Opportunities Related to Major Environmental Issues

  • Climate Change

> Sustainability Report2023(Information Disclosure Based on TCFD Recommendations (page 36))

  • Resource Circulation

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> Sustainability Report2023(Water Risk and Water Stress Assessment (page 41))

  • Living in Harmony with Nature

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> Sustainability Report2023(Biodiversity Risk Assessment (page 43))

  • Others

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Environmental Audits

Every year we conduct our own internal environmental audit, in addition to one conducted by the Fujitsu Group, to check ISO14001 conformance, the effectiveness of our environmental management system, and legal compliance.
The audits are conducted by internal environmental auditors, including environmental management system examiners (personnel qualified to examine ISO14001 conformance). We continually improve our management system through the internal audits.
When nonconformity items are revealed by audits, we analyze the causes from multiple perspectives and promptly make improvements. The results of audits, including conformity items, are disseminated throughout the company and are tied in with activities in the coming fiscal year.
In FY2022, we made compliance with laws and regulations a priority check item and increased the number of items to be checked.
We have taken corrective action on all audit findings.

Response to Environmental Laws and Regulations

We strive to comply with national environmental laws and regulations as well as prefectural and city regulations, pollution prevention agreements, industry guidelines, and environmental requests from customers.
In FY2022, there were 2 cases of inadequate authorization or notification and 4 cases of complaints, but we responded appropriately and corrected them. As for others, there were no litigation issues, fines, or petty fines for violations of environment-related laws, including overseas production sites. Moreover, there were no accidents that had a serious impact on the environment.

> Sustainability Report2023(Environmental Measurement Data (Water Quality) (page 97))

Number of Environmental Laws and Regulations Violations or Complaints
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Environmental Education and Awareness

We conduct environmental education for all employees in Japan at least once a year to ensure that each employee always acts in an environmentally conscious manner, both in conducting corporate activities and in living as a member of society. In FY2022, we initiated education on biodiversity, which is the foundation of a sustainable society and corporate activities. In addition, by incorporating the Shinko Group's "Environmental Vision 2050" into education and enlightenment programs, we aim to spread the vision among our employees and develop human resources who can recognize the necessity of environmental activities and act independently to implement them.
We disseminate information on a variety of topics throughout the company on a monthly basis, including familiar seasonal themes and environmental issues surrounding our company. In June, Environment Month provides an opportunity to think about a sustainable global environment. We conduct activities such as beautifying the area around our plants and holding environmental quizzes to contribute to the community and raise environmental awareness.

Environmental Education Achievements in FY2022 [Shinko Group in Japan]
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Environmental Risk Measures

The Shinko Group is continually making improvements to prevent and minimize environmental risks using our environmental management system. We also prepare to minimize damage in the event of a disaster.

Preventing Environmental Pollution

Prevention of Air Pollution

We use natural gas as boiler fuel because it produces the lowest CO2 emissions among fossil fuels and releases the smallest amounts of the environmentally harmful substances that are contained in soot and smoke (dust, sulfur oxides, and nitrogen oxides) during combustion. Some exhaust emissions from manufacturing equipment and wastewater treatment facilities also contain hazardous substances. Under thorough control, such exhaust gas is input to a unit called a “scrubber” so that hazardous substances can be removed and discharged to air.

Prevention of Water Pollution
Wastewater discharged from plants is detoxified, and its discharge into sewers or rivers is strictly controlled.
The water discharged from our plants is regulated by the Water Pollution Prevention Act and the Sewerage Act, but we set voluntary standards that are stricter than the national and prefectural effluent standards, and we conduct regular water quality measurements to ensure thorough wastewater management.

Prevention of Soil and Groundwater Contamination
For soil and groundwater, we set voluntary standards that are stricter than the standards set by the Soil Pollution Countermeasures Law and other regulations, and we conduct regular surveys and management.

Preventing Leaks of Chemical Solutions and Waste Liquids
We carefully manage safety when we store chemical solutions and waste liquids. Tanks are systematically updated after a certain number of years, based on the material and the contents. Also, we have installed liquid containment walls around our tanks to prevent leaks in and outside our premises. In addition, liquid containment walls, tanks, piping, etc. are regularly inspected to detect deterioration and anomalies at an early stage, leading to the prevention of leaks.
We also conduct practical response training and protective equipment training in preparation for minimizing environmental risks in the event of a leak.

Plant Safety Management
To ensure early responses to any problems, every plant’s facilities management department conducts monthly comprehensive safety inspections of each equipment to achieve compliance, environmental protection, and the prevention of accidents.

Disaster Response

Based on the Company-wide Disaster Prevention Guidelines and Business Continuity Management (BCM), we prepare for the occurrence of natural disasters, and implement measures and training to minimize environmental risks in the event of unforeseen circumstances.
> Sustainability Report2023(Risk Management (page 81))

Adaptation measures to climate change
> Sustainability Report2023(Information Disclosure Based on TCFD Recommendations - Risk Management (page 38))

Flood Control
In response to the frequent flood damage caused by heavy rains and typhoons in recent years, we have implemented flood control measures, after referring to hazard maps. We installed waterproof barriers to stop the flow of water as a measure against indoor flooding. In addition, outdoor equipment is raised on platforms so that even if water damage does occur, it will be minimized.

Earthquake Countermeasures
Seismic strengthening work for buildings constructed under the old quake-resistance standards has been completed at all plants, and we are now seismically retrofitting rooftop equipment (piping and ducts).

Preparing for a Largescale Blackout
As part of our business continuity planning, we installed emergency power generators at all plants in case of a largescale blackout due to an accident or disaster, ensuring power for lights, fire alarm systems, and other equipment during a blackout.

Status of Environmental Management System ISO14001 Certifications (As of October, 2023)

Percentage of Shinko Group Business Sites with ISO14001 Certification

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Japan: Acquired integrated certification as Fujitsu Group
Overseas production sites: Individual companies obtained certification

List of Business Sites with ISO14001 Certification

[In Japan]

SHINKO ELECTRIC INDUSTRIES CO., LTD.

Registration office SHINKO ELECTRIC INDUSTRIES CO., LTD.
Head Office (Kohoku Plant), Wakaho Plant, Takaoka Plant, Arai Plant, Kyogase Plant, SHINKO R&D Center
Domestic Subsidiary
SHINKO TECHNOSERVE CO., LTD.
Certification body Japan Audit and Certification Organization for Environment and Quality(JACO)
Registration number EC98J2005-D601
Date of registration September 12, 1995

[Overseas]

SHINKO ELECTRONICS (MALAYSIA) SDN. BHD.

Certification body Bureau Veritas Quality International
Registration number MY008657
Date of registration October 18, 2000

KOREA SHINKO MICROELECTRONICS CO., LTD.

Certification body Korean Foundation for Quality
Registration number EAC-06428
Date of registration July 3, 2003