- Basic Philosophy and Policy
- Environmental Management
- Environmental Data
- Disclosure Based on TCFD Recommendations
Basic Philosophy and Policy
Basic Environmental Ideas
- We recognize that the preservation of the global environment and symbiosis with nature are in harmony with our business plan and are fundamental obligations.
- Our three declarations made in October 1996 ("Global Expansion" "Health-consciousness" "Eco-friendliness") are part of our corporate ethics and we will disclose this universally.
- While offering products and services that contribute to society, we will make consideration of the environment an essential task.
- While following societal norms, we will use our power to harmoniously promote sustainable development.
Our Course of Action
- From planning and development to disposal, for each phase in the life of our tools, we will strive to save resources, conserve energy, and reduce waste to preserve the natural environment. Additionally, we will offer products considerate of the environment.
- We will strive for continuous improvement and pollution prevention.
- While complying with environmental laws and other requirements, we will bear the responsibility for and manage all business activities that have an impact on the environment, and strive to elevate our level of social responsibility.
- Our environmental goals and targets will be based on environmental laws, environmental concerns, and the ideas of stakeholders. These goals will be adjusted annually.
- This policy is the foundation of our environmental management system, and through maintaining it, it will become common knowledge to all employees.
- When disclosure of this policy is requested outside of the company, it will be open to the public.
Environmental Management Structure
OSG has formulated a company-wide environmental strategy and established an "Environmental Headquarters Committee" to proactively address environmental issues. The environmental management system is led by the departments close to the work site, which have a large environmental impact. The environmental management activities are organized by the director in charge of the environment as top management and the general manager of the Quality Assurance Department as the overall environmental management representative.
Environmental Performance and Targets
OSG is working toward 1% energy use reduction per annum as stipulated in the Act on Rationalizing Energy use in accordance with the 9th Mid-Term OSG Environmental Plan. In its eco-products initiative, efforts are made to develop products with a high level of environmental consideration. Design review is conducted in the design & development stage to promote environmental considerations across product lifecycle from material procurement to product disposal.
In order to achieve the Eco-Factory vision of "producing environmentally-friendly products at environmentally-friendly factories," OSG is implementing initiatives under various themes including reducing environmental impact, reducing risks, raising environmental awareness, bringing digital transformation to production processes for highly-efficient and energy-efficient production. For "eco-products and eco-factory" goals, FY2021 performance is used as the benchmark in assessing progress toward environmental targets. For FY2022, OSG achieved targets in the areas of energy saving, eco-products and eco-factories.
FY2022 Environmental Performance and FY2023 Targets
|1||Energy Conservation||Reducation in total energy use
(energy sources: electricity, fuel oil, and LPG)
Total usage BM: 95,676 GJ/month
|2||Eco-Products||Development of eco-friendly products||34 points||45 points||35 points*|
|3||Eco-Factory||Eco-friendly production||37 points||74 points||38 points*|
*Numerical scores under OSG standard set for improvement of environmental activities
Management of Environmentally Hazardous Substances
As part of our efforts to prevent contamination, each of our si tes conducts emergency training and drills to verify countermeasures to be employed when there is an oil spill or leak.
In conjunction with these initiatives, we have ascertained those chemical substances handled in our production processes that are subject to controls under the PRTR system. We have also identified the amounts of six controlled chemical substances (see diagram at right): chromium, molybdenum, cobalt, vanadium, manganese, and nickel.
OSG's environmental accounting system references the Environmental Accounting Guidelines established by the Ministry of the Environment. Our aim to present an environmental accounting to facilitate understanding of our philosophy and environmental conservation efforts so as to improve our relationship with society.
Costs and Effects over Past Three Years[thousand yen]
|3.Environmental damage compensation||0||0||0|
|4.Effects of environmental conservation||37,169||12,103||33,431|
Detailed Accounting of Costs and Effects in FY2022
|Category||Item||Specific initiatives||Investments in equipment, etc.|
|1. Positive costs for achieving environmental targets||①Pollution prevention costs||-||0|
|②Global environmental conservation costs||Updating heat source devices, transformers and air conditioning units, converting to LED lighting, etc.||68,827|
|③Resource environmental costs||-||0|
|2. Environmental management system maintenance costs||①Labor costs associated with environmental conservation activities||Environmental secretariat expenses, management operating expenses||13,500|
|②Environmental education and training material preparation costs||Seminar participation, etc.||2,723|
|③Environmental audit expenses||External review expenses, registration maintenance expenses||816|
|④Environmental regulation compliance costs||Designated chemical substance measurement, etc.||1,478|
|⑤Waste disposal and recycling expenses||Waste disposal expenses||52,404|
|⑥Circulation measurement expenses||Various environmental measurement and analysis expenses||4,068|
|⑦Environmental conservation costs associated with social activities||Japan Cutting & Wear-resistant Tool Association Environment Committee activity expenses||0|
|3. Compensation costs for environmental damage||Costs for soil remediation, restoration of natural destruction, etc.||-||0|
|Category||Item||Specific initiatives||Investments in equipment, etc.|
|4. Effects of environmental conservation||Total environmental improvement effects||Energy savings achieved by updating heat source devices, transformers and air conditioning units, and converting to LED lighting||33,431|
Waste emissions and ratio of valuable materials
Drainage water volume
Material Balance in Operations
To contribute to realization of a low-carbon society and creation of a resource-recycling society, OSG ascertains and manages the various environmental impacts of our business activities. We continually strive to manage these effects with initiatives, such as reducing energy use and putting waste from our manufacturing processes to use as recycled material.
Disclosure based on TCFD recommendations
OSG Group recognizes climate change as an important issue affecting the sustainable growth of our business.
Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) agreed in October 2021, we have started analyzing climate change scenarios and promoted initiatives within the following framework.
OSG ranks climate change as an important management issue and the president, serving as chair of the Sustainability Committee, is responsible for monitoring and oversight of climate-related issues.
The Sustainability Committee deliberates climate change and other ESG-related issue, policy and vision consistency, priority measures, and other items, and regularly reports on its activities to the Board of Directors.
Measures for promoting sustainability are implemented by department heads (ESG officers) and facilitators in each organization based on decisions made by the President, who chairs the Sustainability Committee.
Based on the impact to our business, the Risk and Compliance Management Committee evaluates the priority of climate change and other risks affecting our entire company.
The Sustainability Committee, Risk and Compliance Management Committee, and Safety and Health Committee operate in conjunction with each other to monitor risks and opportunities associated with climate change.
Strategy and Scenario Analysis
Scenarios projecting a 1.5℃ and a 4.0℃ rise in temperature were selected and a review conducted, referencing the following sce narios, of the risks, opportunities, and OSG's responses.
[Referenced Scenarios]1.5℃ scenario: IEA NZE2050, etc. 4.0℃ scenario: IPCC RCP8.5, etc.
Risks and Countermeasures
|Tighter regulations on GHG emissions||Increase in manufacturing, development, production and procurement costs due to carbon taxes and other charges||High||Set targets for reduction of CO2 emissions
At plants, introduce CO2-free purchasing, off-site power purchase agreements, and carport power purchase agreements
Promote eco-friendly factories and plants (more energy efficient in-house machine tools, improve facility operation, and greater transparency)
|Tighter regulations on fossil fuel power generation||Decrease in demand and increase in development and manufacturing costs of tools for fossil fuel power generation||Moderate||Reassess items manufactured in light of changes in target markets|
|Technology||Dissemination of renewables and energy-saving technologies||Increase in development and manufacturing costs||Moderate||Closely watch renewable energy market trends, and commit resources to development of cutting tools whose demand is forecast to increase|
|Market||Transition to environmentally-friendly products||Decrease in sales of eco-unfriendly products and services||Moderate||Develop environmentally-friendly cutting tools|
|Greater use of electric vehicles and fuel-cell vehicles||Decrease in demand for tools for gasoline-powered vehicles||High||Commit resources to development and design of non-gasoline-powered vehicles|
|Reputation||Changes in customer base and investors||Decline in corporate value and loss of opportunities for securing orders due to insufficient information disclosure||Moderate||Proactively disclose information and reply to CDP questions|
|Contraction of scale of eco-unfriendly business||Moderate||Consider optimizing business portfolio (small-diameter micro-tools)|
|Increase in financing procurement costs||Moderate||Adopt ESG/SDGs financing|
|Physical risks||Acute||Increased severity of extreme weather events||Increase in procurement costs due to reassessment of suppliers||Moderate||Review BCP for all suppliers (understand risks affecting suppliers in terms of naturaldisasters, logistics, raw material procurement, etc.)|
|Difficulty in procuring materials, production shutdowns, and production delays due to disasters affecting suppliers||High||Diversify suppliers|
|Damage to production facilities, production shutdowns/delays, discharge of toxic substances due to damage to OSG plants||Moderate||Draft and revise BCP, implement concrete facility countermeasures, diversify production sites, and thoroughly control hazardous and other such substances|
|Chronic||Rise in mean temperatures||Increase in air conditioning energy||Moderate||Adopt high-efficiency air conditioners|
|Deterioration of working environment||Moderate||Promote labor savings and automation at factories (automated measuring and packaging), promote safety and health management, improve thermal environment inside factories|
|Production shutdown due to shortage of electricity or water||Moderate||Introduce in-house power generation facilities and storage batteries, and reduce electricity and water usage at factories and offices|
*Timeline ranging from 2030 to 2050 is assumed.
Opportunities and Responses
|Transition risks||Policies & legal||Tighter regulations on GHG emissions||Investment hurdle lowered due to consolidation of internal carbon pricing (ICP) or the number of years for recouping investments incorporating carbon tax||Moderate||Adopt international carbon pricing|
|Technology||Dissemination of renewables and energy-saving technologies||Increase in demand for renewable energy and energy-saving technology-related tools||Moderate||Develop and increase sales of tools for renewable energy facilities and renewable energy-related items|
|Market||Expansion of renewable energy||Increase in demand for renewable energy projects due to development increased of solar panels and offshore wind power||Moderate||Develop and increase sales of tools for storage batteries, renewable energies, and hydrogen-related items|
|Transition to environmentally-friendly products||Greater demand for long-lasting products||Moderate||Further enhance quality, develop, and increase sales of long-lasting products
Develop tools that enable to enhance efficiency and shorten
|Greater use of electric vehicles and fuel-cell vehicles||Increase in demand for precision die machining due to development and promotion of batteries||High||Increase sales in the precision micro-machining sector|
|Increase in demand for EV chargers and storage batteries||High||Accelerate development of machining tools for EV chargers and storage batteries|
|Greater demand for small-diameter tools (micro-tools) due to larger market for semiconductors, connectors, and electronic components||High||Develop, increase investment, and build sales of small-diameter tools|
|Reputation||Changes in customer base and investors||Proactive information disclosure to improve evaluation by stakeholders||Moderate||Adopt ESG/SDGs financing|
|Physical risks||Acute||Increased severity of extreme weather events||Increase in demand for disaster prevention products, services, etc. for times when natural disasters strike||Moderate||Develop tools for disaster preparedness items|
*Timeline ranging from 2030 to 2050 is assumed.
Reduction of CO2 Emissions
OSG set the following targets in our Medium-Term Management Plan" Beyond the Limit 2024," which was announced in January 2022.
- ・ FY2030 target: 30% reduction from FY2019 level
- ・ FY2050 target: Achievement of carbon neutrality
In FY2023, OSG will be advancing efforts with a view toward calculating our Scope 3 CO2 emissions and obtaining a CDP score of" A."
Carbon Neutral Declaration
- STEP1 Reduce (save energy)
Greater energy savings in manufacturing process
- ・Install high-efficiency equipment and implement initiatives to enhance energy efficiency during production at in-house factories
- ・Invest in high-efficiency equipment achieving a sufficient level of energy savings to realize carbon neutrality
- ・Research and develop new processes for saving energy
- STEP2 Create
Utilize clean energy
- ・Introduce solar power generation facilities, etc.
- ・Install facilities and implement initiatives to convert electricity used during in-house operations to clean energy
- STEP3 Utilize
- ・Purchase electricity sourced from renewable energies
- ・Consider carbon offset platforms
Adopt Renewables and Saving Energy Through More Efficient
A Farm-based Off-site PPA Service Installation
In December 2022, OSG Corporation entered into an agreement with Agri-Gascom Co., Ltd. and Chubu Electric Power Miraiz Co., Inc. to take steps toward implementing a farm-based off-site PPA service Pursuant to the agreement, Chubu Electric Power Miraiz is to procure electricity from photovoltaic power plants that Agri-Gascom installs at 10 locations in Toyokawa City, Aichi Prefecture. These photovoltaic power plants will be for the exclusive use of OSG. The electricity generated as part of these off-site PPA services, which began on February 26, 2023, will be supplied for a period of 20 years to four of OSG's factories. This initiative reduces CO2 emissions by 2000 tons annually. In addition, six of the photovoltaic power plants set up by Agri-Gascom are a farm-based power plants, marking the first a farm-based off-site PPA service in the Chubu area.
OSG will make use of electricity sourced from renewable energies as part of our efforts to contribute to realizing a carbon neutral society.
|1||Kaminagayama-cho Nishiaraya PV Power Plant 5||249.9kW||294 MWh/year|
|2||Berryland Farm Ashiyamada||249.9kW||423 MWh/year|
|3||Ashiyamada Nakano Solar Farm||249.9kW||359 MWh/year|
|4||Kaminagayama-cho Konakobara Solar Farm 7||249.9kW||475 MWh/year|
|5||Kaminagayama-cho Takaragawa PV Power Plant||49.5kW||110 MWh/year|
|6||Kaminagayama-cho Tsuchihashi Solar Farm 11||800.0kW||1,625 MWh/year|
|7||Kaminagayama-cho Tohachi PV Power Plant 6||249.9kW||365 MWh/year|
|8||Kaminagayama-cho Konakobara Solar Farm 18||249.9kW||339 MWh/year|
|9||Kaminagayama-cho Kamiaraya Solar Farm 17||499.0kW||612 MWh/year|
|10||Kaminagayama-cho Konako PV Power Plant||249.9kW||354 MWh/year|
Total output of plants (AC): 3.1MW
Total planned output of plants: 5,175 MWh/year
|1||Yana Factory||1,553 MWh/year|
|2||Shinshiro Factory||2,070 MWh/year|
|3||Toyohashi Factory||776 MWh/year|
|4||Oike Factory||776 MWh/year|
Total amount purchased by user factories: 5,175 MWh/year
Energy Saving Activities
Saving Energy Through More Efficient Compressor Use
At OSG, we operate compressors to supply air, so we have been saving energy by checking how machinery and compressors are operated and operating this equipment when conditions are optimal. We have been ascertaining the status of machinery operations at night and shutting down air supplies at plants where equipment is not operated at night. In areas where equipment is operated at night but air usage is modest, we have switched to using small air compressors. These activities have curbed our electricity usage.
In FY2022, this effort was recognized by Japan Cutting & Wear-resistant Tool Association with the presentation to OSG of the Environmental Activity Award at the 7th Awards Ceremony.
Newly appointed managers and supervisors are provided with competence training and in-house certification to ensure that they understand the ISO 14001 management system and are able to serve as environmental internal auditors. In addition, to ensure that environmental personnel at each business site acquire basic knowledge of a wide range of environmental laws and regulations, we are working to improve their knowledge and practical competence through education on environmental laws and regulations. Emergency response training is also provided to all employees in charge at each business site.
History of Environmental Activities
OSG engages in the development of products and new technology that can improve the machining efficiency and reduce the machining costs of our clients, and allow them to engage in environmentally-friendly machining that does not waste energy.
Recycling projects at our offices
OSG's major business locations actively promote recycling and the reduction of waste, and since FY2005 we have achieved a recycling rate of over 99%.
A high recycle rate aiming for a "Sustainable Society"
Resource Recycling Initiatives
OSG has been promoting zero emission activities to reduce waste. We have also developed a system to recycle reusable and recyclable resources and established a structure to ensure the proper disposal of waste from our operations. These efforts have enabled us to maintain a recycling rate of over 99% since 2005.
Weight of recycled materials［t］
|Metal scrap (sold)||661.1||Waste grinders (recycled)||41.5|
|Cardboard boxes (sold)||47.2||Waste plastic (recycled)||54.2|
|Waste oil (sold and recycled)||477.1||Wood chips (recycled)||83.5|
|Oil sludge (sold and recycled)||211.5||Other (recycled)||58.8|
|Waste diatomaceous soil
(sold and recycled)
Streamlining Product Packaging to Reduce Plastic Usage
With the development of multiple models of taps, end mills, and drills, the types of cases and packaging used for these have also become much more varied. Nevertheless, marine microplastic pollution is a global problem now and we urgently need to reduce the amount of plastic that we use. OSG has been working to standardize packaging cases and labels and has taken other steps to adopt more eco-friendly new cases as well as switch to ecological packaging film.
We launched this effort in 2021 and have steadily made headway, consolidating or integrating 20 of the 78 types of packaging. We anticipate these initiatives will ultimately reduce annual plastic waste volume by 12 tons.
Eco-Frendly Products and Services
OSG is committed to developing and providing eco-friendly products to our customers.We are actively working to reduce environmental impact by enhancing our regrinding business and developing high-speed cutting, long-life, high-efficiency, and resource-saving products.
Promotion of Carbide Recycling
Carbide tools contain minor metals such as tungsten and cobalt as raw materials, and OSG Group is working to recycle carbide products.We collect used tools from our customers and recycle the minor metals that recycled as materials and resources can be effectively utilized, thereby contributing to our customers' CSR activities and promotion of zero emissions.
Activities of carbide recycling
In order to contribute to a recycling society and reuse precious resources, OSG has joined hands with Nihon Hard Metal Co., Ltd. in an effort to recycle hardened tools.
Merits of hardened tool recycling by Nihon Hard Metal Co., Ltd.
- As long as the tool has been hardened, it doesn't have to be separated into categories such as end mills, drills, reamers, and tips.
- It's okay if the tools contain small amounts of a different material (tools with cermet, ceramic and steel shanks are separated)
- Amount of material that can be sent for recycling: 20kg and over (shipping costs are paid by Nihon Hard Metal Co., Ltd.)
- Recycling cost: Payment may be made through bank deposit
Environmentally Conscious Product Development
- Indexable Flat Drill PDZ
- When counterboring* diameters of φ16 or greater, it is common to use a sol id carbide tool or a head exchangeable tool. Carbide tools are costly and reground many times, and it is troublesome to manage those reground tools.
With conventional drills, the bottom surface needs to be flatted after drilling process. For turning operations, different tools need to be used for drilling, internal turning, and face turning, which inevitably increases the number of tools required.
OSG started working on a indexable flat drill development that can minimize a use of multipe tools. Enlarging the diameter of the top of the drilled hole so that a head of bolts can sit inside the workpiece surface.
*Enlarging a hole so that the head of a screw or bolt may be inserted and not project out as well as evenly machining the hole so that the torque for tightening the bolt or nut is uniform, which ensure its rigidity.
OSG Developed Product
The Indexable Flat Drill PDZ, which boosts machining efficiency and tool life, has three key features.
Outstanding chip breaking capability
With OSG's proprietary chip breaker called "Muscle breaker", it helps to curl and break chips into small pieces
Outstanding chip evacuation
With smoother flute surface finish, chip evacuation capability is maximized
Optimized insert positions
Cutting load on the center cutting edge is reduced by optimizing insert positions. In addition, internal and face turning is possible with PDZ.
Today, high-efficiency, high-precision, and long tool life are not the only characteristics required for machining. With efforts to achieve SDGs, we now also need to eliminate waste as much as possible and establish environmentally-conscious processes.
Customers can reduce waste by a use of indexable tools. By a use of multi-tasking tool, such as PDZ, higher productivity is achivable.
OSG will contribute to society by supplying earth-friendly products as a part of our efforts to promote ESG management.
Indexable Tool Development Team Development Group Design Center
Safety Data Sheet (SDS)
Please click here. SDS(GHS Classification) is in the "Technical Information" of the "Product" site.