Environment

• 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
• Disclosure Based on TCFD Recommendations
  • Risk Management
  • Strategy and Scenario Analysis
  • Carbon Neutral
  • 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

• 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

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 drafts mid-term environmental plans every three years. FY2023 is the second year of our 9th Mid-Term Environmental Plan, in which we set four management metrics as targets for our activities. Our entire company is working together to improve the environment and achieve our targets for eco-factories (environmentally-friendly manufacturing), eco-products (environmentally-friendly product development), energy improvement and reduced usage, and CO₂ emission reductions. CO₂ emission reduction is a new metric that we set in FY2022 to address to recent carbon neutrality efforts.

Mid-Term Environmental Plan Targets & Performance

*Numerical scores under OSG standard set for improvement of environmental activities

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]

	FY2021	FY2022	FY2023
1.Positive costs	51,026	68,827	8,009
2.Maintenance costs	63,824	74,989	76,406
3.Environmental damage compensation	0	0	0
4.Environmental conservation loss	12,103	33,431	32,501

Detailed Accounting of Costs and Effects in FY2023

■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 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.

Risk Management

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

*Timeline ranging from 2030 to 2050 is assumed.

Opportunities and Responses

*Timeline ranging from 2030 to 2050 is assumed.

Carbon Neutral

Reduction of CO₂ Emissions

OSG set the following targets in our Medium-Term Management Plan Beyond the Limit 2024, which was launched in FY2022.

• ・ FY2030 target: 30% reduction from FY2019 level
• ・ FY2050 target: Achievement of carbon neutrality

We will be advancing initiatives with an eye toward calculating Scope 3 CO₂ emissions and acquiring a score of" A" from the Carbon Disclosure Project (CDP).

Carbon Neutral Declaration

Carbon Neutral Measures

Adopt Renewables and Saving Energy Through More Efficient

A Farm-based Off-site PPA Service Installation

Energy Saving Activities

Operational Optimization of Central Tank System

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

［%］

FY2019	FY2020	FY2021	FY2022	FY2023
99.7	99.7	99.8	99.7	99.8

Weight of recycled materials

［t］

Resource Recycling Promotion	FY2022	FY2023
Metal scrap (sold)	661.1	643.0
Cardboard boxes (sold)	47.2	51.9
Waste oil (sold and recycled)	477.1	498.8
Oil sludge (sold and recycled)	211.5	194.1
Waste diatomaceous soil (sold and recycled)	433.1	379.1
Waste grinding wheels (recycled)	41.5	37.0
Waste plastic (recycled)	54.2	46.1
Wood chips (recycled)	83.5	88.6
Other (recycled)	58.8	54.8
Total resources recycled	2,068.5	1,993.4

Streamlining Product Packaging to Reduce Plastic Usage

Increasingly-complex packaging cases and configurations resulting from the development of multiple models of taps, end mills, and drills have decreased packaging productivity, increased costs, and led to errors in the packaging process. Marine microplastic pollution is a major global problem now that urgently needs to be addressed. OSG Group is streamlining our packaging and labeling process as part of our commitment to reduce the amount of plastic we use by adopting new eco-friendly cases and switching packaging films.
In FY2023, our efforts reduced the number of packaging configurations from 78 to 58, effectively halving the amount of plastic used compared to FY2021 levels. In addition, unification of case materials has significantly contributed to automating the packaging process.
Once the packaging process was automated to accommodate different case types, these were then unified, making it possible to also integrate the automation equipment. This automation has also allowed us to carry out work with greater efficiency. We are taking a proactive approach to utilizing recycled materials and improving packaging methods so that we may reduce our impact on the environment and enhance work efficiency.

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

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.

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

Safety Data Sheet (SDS)

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