SustainabilityEnvironmentTargets and results

Results in fiscal 2024 and targets for fiscal 2025

Results in fiscal 2024
We achieved our target in 43 out of 44 categories.

The Environment Promotion Department holds an Energy Conservation and Environment Conference every three months to promote energy conservation and environmental activities throughout the Company. Specific initiatives have included converting to 100% power generated from renewable energy sources, upgrading to energy-saving, high-efficiency air conditioners, and creating visualization for power consumption for use in planning decisions, and installing equipment to improve heat exchange efficiency.

In fiscal 2024, we actively implemented various energy and resource conservation initiatives, as well as specific measures aimed at reducing waste and increasing recycling.

Environmental measures related to ISO 14001 in fiscal 2024 were focused on conserving energy and resources in our business activities, using our businesses to make a positive contribution to the environment, and mitigating climate change, with specific targets set for each operating site. As a result, we achieved 43 targets for environmental contribution through our business activities, with just one target not reached.

Targets for fiscal 2025
We are focusing on conserving energy and resources in our business activities, using our businesses to make a positive contribution to the environment, and mitigating climate change.

TOCALO has set the group goal of reducing greenhouse gas emissions to 54% of the fiscal 2013 level by fiscal 2030. The first step to achieving that target is to reduce our energy consumption by improving our production efficiency. Other steps will include using solar power generation to produce our own power and purchasing electricity generated from renewable energy sources. We are also making preparations to recycle plastics and oils and to recapture and reuse waste cooling water, which used to be discharged. We are also planning to begin several activities aimed at achieving carbon neutrality, although we anticipate some variation in the results because of the wide variety of orders we receive our clients.

As in fiscal 2023, we used power consumption data to develop energy-saving measures in fiscal 2024. We also took on the challenge of insulating our furnaces. We are gradually implementing more measures to ensure we attain our targets for reducing greenhouse gas emissions as well to progress toward our goal of being carbon neutral.

Environmental measures related to ISO 14001 in fiscal 2025 will continue to focus on conserving energy and resources in our business activities, using our businesses to make a positive contribution to the environment, mitigating climate change, and preserving water environments. All of our bases will set goals and conduct activities toward the same targets.

Site	Environmental target	Target for fiscal 2024	Fiscal 2024 results
Conserving energy and resources in our business activities
Miyagi TSC	Energy- and resource-saving activities	Use the power monitoring system to identify aging equipment and energy loss, implement improvement and power-saving measures Power consumption per unit of cumulative sales: less than 2.20 kWh/¥1,000(2% reduction compared with the average for the past five years)	Cumulative yearly energy consumption: 1.089 kWh/¥1,000
	Energy- and resource-saving activities	Collect and report data to verify improvements in air conditioning equipment efficiency following the installation of a new system	July: Interim report on cooling use October: Final report on cooling use January: Interim report on heating use
Tokyo Gyoda	Energy- and resource-saving activities	Reduce the total amount of materials used for thermal spray touch-up and re-spraying activities to under 1.8% of the total (average for the previous fiscal year: 1.82%)	1.60%
	Energy- and resource-saving activities	Produce a minimum of four new products each year using the improved thermal spraying program with 5% less material usage than previous methods	5 products/year
	Energy- and resource-saving activities	Visualize electricity usage by equipment and prioritize upgrading to high-efficiency systems	Order replacement of aging air conditioners and additional power monitoring work
	Non-conformity ratio reduction activities	Non-conformity claims and complaints that are the responsibility of quality control: 0.06% or less	0.045%
Tokyo Suzumi	Energy- and resource-saving activities	Reduce dust collector operating hours by interlocking dust collectors to thermal spraying machinesReduce operating time of the 9 dust collectors: reduce to under 179% of arc time per year	176%
	Energy- and resource-saving activities	Reduce annual electricity consumption by 300 hours through the appropriate use of lighting, air conditioning, electric heaters, and other devices in the office building, and the implementation of no-overtime days	Reduced 317 hours
Nagoya	Energy- and resource-saving activities	Reduce air-conditioning electricity consumption through the installation of setting optimization systemsYear-on-year reduction of 3%	Year-on-year reduction of 36%
Headquarters	Energy- and resource-saving activities	Explore energy conservation initiatives for 2025 and beyond	Set summer and winter indoor temperatures
Kobe	Energy- and resource-saving activities	Report on activities that reduce energy consumption at least four times per year	4 reports/year
Akashi	Energy- and resource-saving activities	Propose test methods to verify the effectiveness of ener-gy-saving equipment prior to its introduction Target: 4 methods/year	4/year
R&D	Energy- and resource-saving activities	Reduce electricity use by 14,686 kWh year-on-year (equivalent to 3% of usage in the previous fiscal year)	Reduction of 20,574 kWh/year
Kurashiki	Energy- and resource-saving activities	Reduce electricity usage by interlocking dust collectors and thermal spray equipment. First half: Plan installation of interlocking program and determine existing electricity usage Second half: Determine the percentage reduction and ascertain the amount of electricity saved by checking demand	First half: Ascertained existing electricity usageSecond half: Verified demand and determined level of reduction
Kitakyushu	Energy- and resource-saving activities	Reduce electricity consumption per unit of sales by dust collectors and compressors by 3% year-on-year	Reduced by 19.4%
Business operations
Miyagi TSC	New development activities	Develop a minimum of two eco-friendly coatings per year	3/year
Tokyo Gyoda	New development activities	Develop 12 or more new TD specifications/customer prototypes per year	14/year
Nagoya	New proposals/orders	Orders received in the environment and energy sector: ¥165.3 million/year (year-on-year increase of 8%)	¥219.4 million/year (year-on-year increase of 43%)
Headquarters	New proposals/orders	New project orders (A) Over ¥1,000,000/month, and (B) Over ¥18,000,000/half year	(A) ¥3,042,000/month (B) Second half cumulative result: ¥9,659,000/half year
Kobe	Work improvements	Minimum of 24 work efficiency improvement reports per year	25/year
Akashi	New proposals/orders	New visits: 228/year	233/year
R&D	New development activities	Minimum of 60 new development initiatives per year	69 developments/year
	New development activities	Implement initiatives develop coatings and equipment that can contribute to environmental improvementMinimum 3/year	3/year
Kurashiki	New proposals/orders	Number and value of environmental field orders (related targets to be set from fiscal 2026 onwards)	Orders: 48 Total value: ¥22,055,000
Kitakyushu	New proposals/orders	Minimum of ¥148,548,000 in environmental field orders per year	¥243,638,000/year
Climate change measures
Miyagi TSC	Climate change measures	Determine the expected reduction of CO2 emissions resulting from the use of web conferences instead of visits to clients	721.59kg CO2/year
Tokyo suzumi	Climate change measures	Reduce CO2 emissions from business vehicle use by promoting the use of online meetings: Minimum of 600 online meetings per year	807 meetings/year
	Climate change measures	Active transition to hybrid work vehicles: 6 vehicles	Hybrid vehicles: 6
Others
Miyagi TSC	Recycling	Survey rubber glove disposal volumes and promote recyclingDetermine actual quantity of rubber gloves disposed of per month	Rubber gloves found to account for approximately 15% of plastic waste
Tokyo Gyoda	Law compliance	Reduce industrial noise pollution	Nighttime noise reduced
	Law compliance	Reduce hazardous gas emissions	Installed new equipment and conducted tests to confirm the elimination of hazardous gas
	Recycling	Recycling of thermal spray materials	Prototype recycled thermal spray materials verified as matching the quality of new materials, customers now being asked to select parts
Tokyo suzumi	Recycling	Recycle 100kg or more of paper tubes per year	200.35 kg/year
	Recycling	Recycle items such as plastic bottles, wire bobbins, packaging materials, and plastic pallets into useful materials	Prepare for the start of operations, including the selection of items for recycling and the signing of contracts relating to confidential information
Nagoya	Recycling	Waste recycling rate: 55% or higher	65%
Headquarters	Information disclosure	Expand and organize environmental information on the corporate website	August 2024: Sustainability page information updated November 2024: English sustainability page updated
Kobe	Waste reduction	General waste emissions per year: 3,838kg or less(year-on-year reduction of 3%)	3,457 kg/year
	Recycling	Metal recycled as valuable materials per year: 1,292kg or more(3% increase over the previous fiscal year)	2,596kg
Akashi	Waste reduction	Waste grinding oil discharged per year: 509,819 kg or less(year-on-year reduction of 10%)	488,745 kg/year
	Waste reduction	Reduce mixed waste by 5% from the previous fiscal year’s level through appropriate waste sorting	Year-on-year reduction of 28.8%
	Recycling	Reduce waste dust generated through material recycling by introducing a classification system and ensuring its use as routine practice	Amount recycled: 1,527kg/year
	Recycling	Recycling of shredded waste	Amount recycled: 940 kg/year
Kurashiki	Waste reduction	Reduce industrial waste through sorting	Year-on-year reduction of 79%
Kitakyushu	Waste reduction	Reduce waste generated by 3% year-on-year (excluding waste generated by the move to the new administration building and internal maintenance activities)	Reduction of 9.4%

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