SustainabilityEnvironmentTargets and results

Results in fiscal 2023 and targets for fiscal 2024

Results in fiscal 2023
We achieved our target in 42 out of 43 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 2023, specific measures were aimed at reducing waste and increasing recycling.

Environmental measures related to ISO 14001 in fiscal 2023 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. Of the 43 energy conservation targets we set for the year, these efforts achieved 42 of the targets and fell short of only one.

Targets for fiscal 2024
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. 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.

In fiscal 2023, we used our power consumption data to help formulate measures to reduce our power usage and conducted trial low-power periods and energy-efficiency measures. 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 2024 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 2023	Fiscal 2023 results
Conserving energy and resources in our business activities
Headquarters	Energy- and resource-saving activities	Analyze power consumption, review progress of countermeasures and energy-saving measures	Measure 2023 electricity volume Lower to 96.7% of the previous fiscal year Set summer and winter indoor temperatures (temperature control)
Miyagi	Energy- and resource-saving activities	Use the power monitoring system to confirm the current status of heating and cooling power consumption	Confirm heating and cooling power consumption Complete the acquisition of data, including on the correlation between power consumption and the external temperature
	Energy- and resource-saving activities	Use the power monitoring system to identify aging equipment and energy loss, implement improvement and power-saving measures (1) Reduce by 1,200 kWh/month from the same month of the previous year (2) Identify power and time efficiency fluctuations for each type of equipment	(1) Lower 8,140 kWh/month average consumption (2) Verify compressor efficiency fluctuations
	Energy- and resource-saving activities	Identify the current status to reduce paper resource consumption	Monthly paper waste is approximately eight 90-liter bags
Tokyo Gyoda	Energy- and resource-saving activities	Cumulative amount used for thermal spray touch-up and re-spraying Cumulative amount used in the previous fiscal year: 664,105g	390,027g
	Energy- and resource-saving activities	Produce a minimum of three new products each year using the improved thermal spraying program with 5% less material usage than previous methods	New program used for coating of 5 new items
	Energy- and resource-saving activities	Non-conformity claims and complaints that are the responsibility of quality control: 0.05% or less	0.03%
	Energy- and resource-saving activities	Reduce power consumption by 3% in the TD Manufacturing Division	Reduced by 8.1%
	Energy- and resource-saving activities	Reduce power consumption by attaching dust collectors to thermal spray equipment	Reduced 265 kWh/month per booth
Tokyo Suzumi	Energy- and resource-saving activities	Reduce operating hours by interlocking dust collectors to thermal spraying machines Reduce operating time of the 9 dust collectors: reduce to under 180% of arc time per year	Total operating rate of 9 units: 178%
	Energy- and resource-saving activities	Power saving in office buildings (lighting, air conditioning) Reduce night working hours (using “no overtime days”) First half: Total hours reduced Second half: Introduce power monitoring systems, to monitor total electricity usage	Reduced 269 hours
Nagoya	Energy- and resource-saving activities	Reduce power consumption by interlocking dust collectors to thermal spray equipment Reduce by 40% from the previous fiscal year	Reduced by 37% from the previous fiscal year
Kobe	Energy- and resource-saving activities	Reduce air leakage Reduce power consumption by retrofitting firing furnaces Reuse wastewater Improve heat-retention capacity by using heat-insulating paints Implement at least 2 of the above	All implemented
	Energy- and resource-saving activities	Reduce copy machine paper usage Reduce blasting media usage Implement at least one of the above	Copy machine paper May-March: Reduced 9,784 sheets in total
Akashi	Energy- and resource-saving activities	Energy-saving initiatives Reduce power consumption by 43,483 kWh/month or more	Overall reduction at Akashi: 44,601 kWh/month
R&D	Energy- and resource-saving activities	Reduce power consumption by reducing standby power and interlocking dust collectors to thermal spraying equipment Reduce power consumption by 3% from the previous fiscal year (annual reduction target: 14,604 kWh)	Reduced by 21,130.4 kWh from the previous fiscal year
Kurashiki	Energy- and resource-saving activities	Reduce compressor power consumption by controlling the number of compressors First half: Plan the number of compressors, verify current power consumption Second half: Identify the reduction rate after the measures The first half average was 0.129% of sales, so target less than 0.129% in the second half	Results: The percentage was below 0.129 in 4 of 6 months in the second half
Kitakyushu	Energy- and resource-saving activities	Reduce annual power consumption by 9% from the previous fiscal year	Reduced by 20.4%
Contributing to the environment by promoting business activities
Headquarters	Information disclosure	Expand and organize environmental information on the corporate website	August 2023: Sustainability page information updated October 2023: English sustainability page updated
	New proposals/orders	New project orders: ¥1.0 million or more/month Target: ¥12.0 million or more/year	¥89.0 million/year
Miyagi	New development activities	Develop and propose long-life coatings: 2 new types per year	2
Nagoya	New proposals/orders	"Orders received in the environment and energy sector: ¥108.0 million/year	¥153.0 million/year
Akashi	New proposals/orders	New visits: 20/month, 240/year	252/year
R&D	New development activities	New developments: 60 or more/year	65 developments/year
	New development activities	Implement initiatives develop coatings and equipment that can contribute to environmental improvement Minimum 3/year	3/year
Kurashiki	New proposals/orders	New product orders: ¥153.0 million/year	¥246.0 million/year
Kitakyushu	New proposals/orders	Orders received in the environment and energy sector: ¥66.0 million/year	¥298.7/year
Mitigating climate change
Miyagi	Global warming mitigation	Reduce the number of commutes by promoting and sustaining work from home (1) Telecommute at least one day a week (2) Verify reduction in vehicle CO2 emissions when working from home	(1) and (2) both achieved Verified an average of 418 kg/month reduction in CO2 emissions for single-occupancy vehicle commutes
Tokyo suzumi	Global warming mitigation	Reduce gasoline consumption by converting to hybrid vehicles for sales	Reduced by 5% from the previous fiscal year
Akashi	Global warming mitigation	Eliminate equipment using Freon (HCFC-R22)	Completed September 2023
Others
Tokyo Gyoda	Pollution prevention	Reduce waste and promote recycling	Developed recyclable thermal spray materials
	Law compliance	Reduce industrial noise pollution	Improvement measures implemented
	Pollution prevention	Reduce hazardous gas emissions	Verified and implemented reduction methods
Tokyo suzumi	Pollution prevention	Increase material recycling by thoroughly separating waste plastics Increase material recycling rate by 20%	Increased 41% from the previous fiscal year
	Pollution prevention	Implement noise regulation compliance measures Change from Class 2 to Class 4 agreement standard and install noise leakage prevention equipment	No physical changes were made, but the goal was achieved from the perspective of PDCA.
Nagoya	Pollution prevention	Reduce mixed waste 5% from the previous fiscal year	Reduced 97% from the previous fiscal year
Kobe	Pollution prevention	Reduce sludge production and waste Reduce specified wastewater Recycle metals Implement at least one of the above	Reduced specified wastewater by 36 m³/year by using water-conserving nozzles Implemented metal recycling
Akashi	Pollution prevention	Waste CO2 emissions Reduce by 0.5% from the previous fiscal year	Reduced by 23.2% from the previous fiscal year
	Pollution prevention	Increase plastic recycling through separate collection and disposal of empty plastic containers of thermal spray materials: 1,200kg or more/year	1,590kg
	Pollution prevention	Reduce mixed waste: reduce by 22,000kg/year	Reduced by 29,100kg
R&D	Pollution prevention	Verify waste volume to prepare measures to reduce mixed waste	Verified the percentage of mixed waste
Kurashiki	Pollution prevention	Reduce waste volume by communicating information about the return and reuse of wooden pallets Average 1,268kg/month"	Average 232.75kg/month
Kitakyushu	Pollution prevention	Reduce waste as a percentage of sales by 23% from the previous fiscal year	Reduced 27.2% from the previous fiscal year

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