• Basic Philosophy and Policy
  • Environmental Vision
  • Environmental Policy
• Environmental Management
  • Environmental Management Structure
  • Environmental Performance and Targets
  • ISO14001 Certification
  • Management of Environmentally Hazardous Substances
• Environmental Data
  • Environmental Accounting
  • Material Balance in Operations
• Carbon Neutrality
  • Governance & Risk Management
  • Risks and Opportunities
  • Reduction of CO₂ Emissions
  • Adopt Renewables and Saving Energy Through More Efficient
• Environmental Education
• History of Environmental Activities
• Eco-friendly Products
  • Recycling Projects at Our Offices
  • Resource Recycling Initiatives
  • Eco-Frendly Products and Services
  • Safety Data Sheet (SDS)

Basic Philosophy and Policy

Environmental Vision

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.

Environmental Policy

Our Course of Action

• To contribute to a sustainable society, we are committed to preserving and enhancing the environment throughout all stages of our tool lifecycle from development and design to disposal. We promote a circular economy through the effective use of resources and waste, and advance energy conservation and renewable energy. Additionally, we strive to provide environmentally conscious products.
• 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.
• We strive to reduce environmental impact and promote biodiversity through our environmental activities.
• This policy is the foundation of our environmental management system, and through maintaining it, it will become common knowledge to all employees.

Environmental Management

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

At OSG, we formulate a Medium-Term Environmental Plan every three years. Fiscal year 2025 marked the first year of the 10th Medium-Term Environmental Plan. We worked toward achieving our targets under three key management indicators: (1) Eco-Factory (environmentally friendly manufacturing),(2) Eco-Products (development of environmentally friendly products), (3) Energy improvement and reduction. As a result of these efforts, we successfully achieved all three management indicators.

Mid-Term Environmental Plan Targets & Performance

*Standards set by the Japan Cutting & Wear-Resistant Tool Association have been adopted for assessing Eco-factories (highest score: 100 pts.) and Eco-products (highest score: 60 pts.).

ISO14001 Certification

Management of Environmentally Hazardous Substances

Environmental Data

Environmental Accounting

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 the Past Three Years

[1,000 yen]

	FY2023	FY2024	FY2025
1.Positive costs	52,026	111,334	606,674
2.Maintenance costs	76,406	78,746	84,286
3.Environmental damage compensation	0	0	0
4.Environmental conservation loss	32,501	56,342	33,838

Detailed Accounting of Costs and Effects in FY2025

■Costs

[1,000 yen]

• Energy usage

  

• CO₂ emissions

  

• Waste emissions and ratio of valuable materials

  

• Drainage water volume

  

Material Balance in Operations

To contribute to the realization of a low-carbon society and the 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 usage and putting waste from our manufacturing processes to use as recycled material.

Carbon Neutrality

Governance & Risk Management

At OSG, the Risk and Compliance Management Committee evaluates the priority of climate change and other risks affecting us overall, based on their impact on our business. The Sustainability Committee, the Risk and Compliance Management Committee, and the Safety and Health Committee operate in conjunction with each other to monitor risks and opportunities associated with climate change. The Sustainability Committee deliberates on matters including ESG-related issues, the enforcement of policies and visions, and priority measures, and regularly reports on its activities to the Board of Directors.

Sustainability Committee Meetings in the Fiscal Year Under Review

Risks and Opportunities

We selected scenarios involving temperature rises of 1.5°C and 4.0°C, and reviewed risks, opportunities, and our responses.
Scenarios referenced: 1.5°C scenario (IEA NZE2050) and 4°C scenario (IPCC RCP 8.5) among others
We identified three points in particular as key risks exerting a high degree of influence: Cost increases due to the tightening of GHG regulations, decreased demand for tools for gasoline-powered vehicles due to the accelerating shift to electric vehicles, and damage to suppliers due to intensifying extreme weather.
To address these, we are undertaking medium- to long-term actions including energy conservation, the introduction of renewable energy, review of our business portfolio, diversification of suppliers, and strengthening of our BCP, with the aim of enhancing our resilience. In particular, we recognize the proliferation of renewable energy and energy-saving technologies and the expansion of the EV and storage battery markets as key opportunities, so we view climate change as an opportunity for business growth. To take advantage of these opportunities, we are strengthening our development of energy-saving-related and renewable energy-related tools, expanding our investment in the micro and precision machining field, and boosting quality and sales of our long-life tools. We are also increasing the transparency of our corporate activities through proactive information disclosure, while connecting the movement toward a low-carbon society to greater competitiveness.

Risks and Countermeasures

Note: Timeline ranging from 2030 to 2050 is assumed.

Opportunities and Responses

Note: Timeline ranging from 2030 to 2050 is assumed.

Reduction of CO₂ Emissions

Roadmap

The OSG Group has set a new Group-wide target for the reduction of CO₂ emissions. We will steadily undertake initiatives based on plans, aiming for a 20% reduction in 2030 compared to FY2024.
While our emissions in FY2025 exceeded those of the previous fiscal year, to achieve our medium- to long-term target, we will analyze the variable factors behind emissions and undertake continuous improvements to reduce CO₂ emissions.

Reduction Measures

The OSG Group is advancing measures under its Medium-Term Management Plan to address climate change.

Medium-Term Management Plan

FY2026 plan

1. 1. Introduce initiatives to reduce CO₂ emissions (Scope 1 and 2) in manufacturing divisions
2. 2. Introduce initiatives to reduce CO₂ emissions (Scope 1 and 2) at Group companies
3. 3. Calculate Scope 3
4. 4. Consider rules for visualization and disclosure of carbon footprint
5. 5. Prepare for the introduction of renewable energy

Adopt Renewables and Saving Energy Through More Efficient

Introduction of Renewable Energy

Energy Saving Activities

CASBEE Certification for the New Factory and Cafeteria Buildings at the Oike Plant and Energy-Saving Initiatives

Environmental Education

History of Environmental Activities

Eco-friendly Products

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%.

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.

Recycling rate

［%］

FY2021	FY2022	FY2023	FY2024	FY2025
99.8	99.7	99.8	99.7	99.7

Weight of recycled materials

［t］

Resource Recycling Promotion	FY2024	FY2025
Metal scrap (sold)	770.8	783.7
Cardboard boxes (sold)	52.4	63.5
Waste oil (sold and recycled)	485.1	550.5
Oil sludge (sold and recycled)	168.8	192.6
Diatomaceous soil (sold and recycled)	316.2	298.7
Waste grinding wheels (sold and recycled)	35.6	34.9
Waste plastic (recycled)	44.1	49.4
Wood chips (recycled)	122.4	109.8
Other (recycled)	61.5	63.2
Plastic and other (sold)	4.1	10.5
Total resources recycled	2,061.0	2,156.8

Reducing Environmental Impact with Thorough Management of Waste and Visualization of CO₂ Emissions

OSG is working to lower its environmental impact by improving how we manage waste and monitor CO₂ emissions.
We've made our waste tracking system clearer, so we can see what types of waste we produce, how it's handled, and where it comes from.
This helps us follow regulations and understand our impact more accurately.
With this data, we're taking steps to reduce waste, increase recycling, and cut CO₂ emissions.
We're also planning to connect waste and emission data to build a smarter, more sustainable system.
We are committed to contributing to a recycling-oriented society through environmentally conscious corporate activities.

Initiatives to Reduce Plastic Waste through Plastic Case Sorting

OSG is continuously working to reduce industrial waste generated at each of its business sites from the perspectives of environmental conservation and CO₂ emissions reduction.
Among these efforts, we promote material recycling of waste plastics, aiming to reuse them as resources rather than relying on incineration or simple disposal.
By carefully sorting waste plastics, it becomes possible for specialized recyclers to purchase them as valuable materials and recycle them.
We have established a sorting and collection system for rigid plastic packaging cases, returnable containers (such as bins and storage cases), and pallets.
At the Shinshiro Factory, which has packaging processes, plastic cases and other items are dismantled and unnecessary components are removed in cooperation with OSG Active, a special subsidiary dedicated to employing persons with disabilities, to prepare them for shipment as recyclable materials.
As a result, the annual volume of collected plastic cases, returnable containers, and pallets at the Shinshiro Factory has reached 4.1 tons, and by directing these materials to material recycling, we have reduced CO₂ emissions by 3.3 tons per year.
In addition, these efforts have enabled 28.4% of industrial waste (waste plastics) generated at the Shinshiro Plant to be converted to material recycling, thereby reducing the environmental impact associated with disposal.
Based on the results achieved at the Shinshiro Factory, we are expanding similar initiatives to the Oike Factory to further reduce plastic waste.
At the Oike Factory, approximately 8 tons of materials are expected to be collected annually, with an estimated reduction of about 6.5 tons of CO₂ emissions per year.
Going forward, we will continue to advance resource circulation and reduce environmental impact by building on the experience gained through establishing on-site sorting systems, ensuring stable operations in collaboration with our special subsidiary, and carefully complying with relevant regulations for the collection and transportation of waste plastics. Through these efforts, we will contribute to the realization of a sustainable society.

Environmentally-Conscious Product Transport

Our logistics departments replaced the cushioning material, which is used when products are transported to our customers, with an environmentally-friendly material. We found a cushioning material that would ensure safe transport and eventually opted for paper packaging for heavy items. After use, the paper packaging can be recycled. Air cushions made by thin film are also used, which do not produce toxic substances when incinerated. Our customers previously commented that cushioning material was bulky and difficult to dispose of. The new air-cushioning material makes it possible to reduce the amount of waste just by letting the air out. Also, we used to wrap pallet cargo with multiple layers of film to prevent the cargo from dislodging during daily shipments from our Shinshiro Factory to Logis Tokyo. However, we have eliminated this method and adopted a new one, which involves covering the entire pallet with a box assembled from five panels. These panels can be used repeatedly, so they reduce waste. As they can also be stacked, additional transport trucks no longer need to be dispatched depending on the volume of cargo. This makes our transport more efficient.

• Packaging with paper cushioning material
• Packaging with air packing
• Cargo loaded on pallet & protected with panels
• Use of panels allows for stacking

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

Tungsten, cobalt, and other rare metals are among the raw materials used in manufacturing carbide tools.
The entire OSG Group has been striving to recycle carbide products. We recover used tools from our customers and recycle the rare metals so that these materials may be reused as part of our efforts to effectively utilize resources. This also is beneficial to our customers in facilitating their CSR activities and achieving zero emissions.

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.

Reconditioning Service

Environmentally Conscious Product Development

At OSG, we are intent on leveraging cutting tools to solve challenges for customers as we strive for a sustainable society. High quality, highly efficient, and highly durable cutting tools contribute to improving customer productivity and reducing energy consumption.
Going forward, we are committed to developing environmentally conscious products while ecognizing social and environmental issues, and lending our effort--through cutting tools--toward the achievement of a sustainable society.

Showcase: One of Our Environmentally Conscious Products

Enabling supply chain emissions reductions that lead to a lower carbon footprint

Our Gtag series of low-carbon cutting tools reduce CO₂ emissions by 30-35% per tool through a new proprietary manufacturing method that consumes less power during manufacturing. While maintaining machining performance that equals or exceeds that of our conventional products, it helps to reduce CO₂ emissions on carbide drill, end mill, and forming tap lines and contributes to reducing environmental impacts across the supply chain.

Low-carbon Carbide Drill

Cutting dataSame performance as conventional product

Tool	AD-2D Gtag φ6
Work Material	S50C
Cutting Speed	90m/min（4,775min-1）
Feed	860mm/min（0.18mm/rev）
Depth of Hole	12 mm (through)
Coolant	Water-soluble Chlorine-free (5%)
Machine	Horizontal Machining Center (HSK-A63)

The development of Gtag products began from the pursuit of enhanced performance, as well as from consideration of how we can protect the manufacturing of the future. Our initiatives to control power consumption during manufacturing and reduce CO₂ emissions through proprietary manufacturing methods are essentially an endeavor to fulfill our responsibility to the environment. We realized that offering new ideas a step ahead of the industry is a key step toward creating new value and building a better future with customers.
One product exemplifying that approach is the AD-2D Gtag low-carbon carbide drill. This product reduces CO₂ emissions during manufacturing while ensuring performance and durability on par with those of our other products, thereby being environmentally conscious without compromising reliability. While maintaining the versatility to handle a wide range of work material, the product directly contributes to reducing CO₂ emissions.
By reducing the environmental burden and improving productivity, we hope to contribute to our customers' businesses and to society.

Kazutoyo Ito
Manager, Drill Design and Development Group, Design Center

Safety Data Sheet (SDS)

Please click here. SDS(GHS Classification) is in the "Technical Information" of the "Product" site.