aisin aw · 2018-03-11 · thank you for taking the time to review the autumn edition of the aisin...

AISIN AW

ENVIRONMENTAL REPORT 2017

ENVIRONMENTAL REPORT 2017Autumn Edition

0166301192-P01

Greetings

Environmental Management

Design and Development

Production

Environmental Protection Activities

Contribution to Society Activities

04

04

09

10

11

　

12

12

13

14

15

17

18

18

24

25

26

28

30

30

33

35

37

38

40

41

44

46

51

Corporate Philosophy and Policies

Acquisition of ISO 14001

Environmental Education and Training

Environmental Accounting

1.

2.

3.

4.

5.

1.11.21.31.4

Automatic Transmissions

ECUs for ATs (Electronic Control Unit)

Navigation Systems

EV (Electric Vehicle) and Hybrid Drive Systems

Initiatives for Reducing Use of Environmentally Harmful Substances

2.12.22.32.42.5

Production Processes

Improving Distribution

Remanufacturing

Energy Conservation

Reducing Waste Products and Encouraging Zero Emissions

3.13.23.33.43.5

Cooperation with Suppliers and Group Companies

Management of Chemicals

Dealing with Soil and Groundwater Problems

Air Quality Efforts

Conserving Water Quality

Noise Pollution

Greening Initiatives

4.14.24.34.44.54.64.7

Environmental Performance Data

Company Outline

CONTENTS

02

AISIN AW ENVIRONMENTAL REPORT 2017

Thank you for taking the time to review the Autumn Edition of the Aisin AW Environmental Report 2017.

Today, we in the automotive industry find ourselves undergoing the kind of transformation that occurs once in one hundred years. Society has come to view the environmental impact of automobiles in increasingly harsh terms, as is evidenced by the recent news that Britain and France have announced policies to ban the sale of gasoline- and diesel-powered vehicles starting in 2040. In response to such increasingly strict environmental regulations, automakers are vying to develop electric vehicles and fuel cell vehicles.

I believe that Aisin AW has taken advantage of the expertise it has fostered to date to help realize environmentally friendly automobiles by developing powertrain products that can be used in electrically powered vehicles and by boosting vehicles’ fuel efficiency and emissions performance.

At the same time, climate change that is likely caused by rising levels of greenhouse gases is resulting in frequent climate disasters in the form of giant typhoons and heavy local rains that are causing increasingly extensive damage. I believe that in order to continue our corporate activities and grow, it will be important for us to participate in the drive to realize a sustainable society that can coexist in harmony with the Earth’s environment. To that end, it is essential that we pursue a global program of environmental protection and conservation activities that is informed by a long-term perspective.

As a member of the Aisin Group, we will participate in the Environmental Initiative Plan that is being implemented by the entire Group, and in doing so we will work to make an even greater contribution to the environment.

In closing, I trust that this report will give you a deeper understanding of our environmental conservation activities, and I welcome your candid views and opinions of our efforts.

Kazuhisa OzakiPresident

AISIN AW Co., Ltd.November 2017

Message from the President

03

AISIN AW ENVIRONMENTAL REPORT 2017

Corporate Philosophy

Quality SupremacyOur basic principle is to sustain corporate

growth and ensure the well-being of our employees by contributing

to customers and society with supreme products and services.

Employees well-beingWe aim to ensure each individual feels a true

sense of accomplishment from their efforts and achievements as well as from their personal development and, in addition, offer a healthy

work life balance by fostering a corporate culture in which a wide diversity of individuals can take on the challenge of their work enthusiastically.

Customer delightWe aim to create value that exceeds customers'

expectations by pursuing pioneering technologies as well as "monozukuri" (manufacturing) with a

commitment to quality.

Contribution to the environment and societyWe contribute to creating a better world and

society through open and fair corporate activities that aim to achieve harmony between

environment and society, not only with our products and services, but with our entire

business practices.

Environmental Management1.Corporate Philosophy and Policies

Working to Contribute to Both Nature and Society

Environmental Policy

Aisin AW has established an Environmental Policy in order to achieve "Contribution to the environment and society" in accordance with its management philosophy of "Quality First." All employees are involved in the company's environmental conservation program.

1.1

1. AISIN AW implements an Environmental Management System that is geared to all the company's business activities, from development through to sales; it sets objectives and targets based on this Environmental Policy; and it works to make continual improvements to its Environmental Management System through regular reviews as it implements the system according to plan.

2. AISIN AW complies with all applicable environmental regulations enacted by national and local governments (laws and regulations, pollution control agreements, etc.) and with all other requirements to which the company commits. It also actively implements measures to prevent pollution.

3. AISIN AW prioritizes environmental friendliness throughout the product life cycle in the development of new products and technologies as well as in its manufacturing operations.

4. AISIN AW strives to expand activities in areas such as making effective use of natural resources and energy, minimizing use of environmen-tally harmful substances, and promoting a more efficient approach to distribution in which materials are reused.

5. AISIN AW carries out activities to protect nature and the environment. 6. AISIN AW maintains a written Environmental Policy and ensures that all employees are thoroughly conversant with its details. 7. AISIN AW publishes details of its environmental conservation activities, including its Environmental Policy.

04

AISIN AW ENVIRONMENTAL REPORT 2017 1.Environmental Management

Four types of evolution and key initiatives as we look toward 2050

Building a low-carbonsociety

・ Developing and expanding use of new functional parts to dramatically reduce CO₂ emissions・ Embarking on a project to establish plants that use clean energy and applying that technology across our operations

Priority initiative area

Optimization to eliminate CO₂ emissions throughout the product life cycle

Building arecycling-oriented

societyAugmenting measures to reduce waste by・ Redoubling efforts to effectively utilize and recycle water resources

Optimization to eliminate environmental impacts

Environmentalmanagement ・ Building and implementing structures to evaluate our global consolidated environmental

management system

Optimization to globalize management and communication

Building a society thatcoexists with nature ・ Implementing regional programs to protect biodiversity and sharing success stories

Optimization to coexist with nature

Environmental axis

Reflecting our belief that an evolution with the ultimate goal of eliminating CO2 throughout the entire product life cycle, from manufacture to use and disposal, is the best way to realize a sustainable society that coexists with the global environment as we look toward 2050, Aisin AW works to bring all of the Group’s resources and capabilities to bear in an effort to evolve its activities.To facilitate evolution to eliminate environmental impacts, we will augment our current focus on effectively using and recycling resources by undertaking a series of activities designed to ensure that water is valued. In this way, we will address growing risks such as water shortages and water pollution, which are growing more serious worldwide.To facilitate evolution to allow coexistence with nature, we will further broaden and connect past initiatives in areas such as biodiversity and environmental learning together with local communities and Group companies. To facilitate evolution to globalize management and communication, we will further upgrade our environmental management while strengthening the Aisin Groups global partnerships and deepening communication with customers and local communities.

05


In 2016, Aisin AW formulated a fiscal year plan and pursued activities in accordance with its 2016 Environmental Program Plan. As a result, we were able to meet all targets for each objective. The following table provides more detailed information:

Building a low-carbon

society

○・Rolling out multistage and HV drive systems・Rolling out high-efficiency AT and CVTs

Helping improvevehicle fuel efficiencyby pursuing high-fuel-efficiency technologies[Action target]

・Developed and began mass-production of four multistage AT models.・Developed and began mass-production of one hybrid drive system.

・Issuing annual LCA data reports to customers・Working to develop an integrated LCA assessment system for the entire Aisin Group

Pursuing LCAassessments inpartnership with customers[Action target]

○

・Completed arrangements for reporting three AT platforms for large, medium, and compact vehicles and two CVT platforms for medium and compact vehicles.・Studied shared Aisin Group tools through a collaborative Group approach.

Taking acomprehensiveapproach to reducingCO2 in road transportthrough ITS-relatedtechnologies[Action target]

・Helping improve fuel efficiency by avoiding inefficient and congested routes・Helping improve actual fuel efficiency through enhancements to vehicle performance

・Reduced CO2 emissions by 7.0% by reducing travel times through utilization of VICS and probe traffic information.・Brought predictive eco-drive functionality to other products.・Improved actual fuel efficiency 5% by enhancing vehicle performance

○

Buildinga recycling-

oriented society

Reduced by 1% comparedto FY2015 target.

Reduced by 1%compared toFY2015.

・Pursuing waste oil recycling activities(On an emissions per vehicle basis)

Domestic and overseas Group manufacturing companies・Building structures to reduce waste・Applying measures to reduce waste across the organization

・Reducing waste・Using resources effectively[Target defined in terms of productionvolume]

・Reducing waste[Target defined in terms

of unit revenue]

○

Reduced by 1%compared toFY2015 target.

Reduced by 1% compared toFY2015 target.

Reduced by 1%compared to FY2015.

・Converting to use of returnable packaging(On an emissions per vehicle basis) ○Reduced by 5% compared to

FY2015.

Reduced by 5% compared toFY2015.

Reduced by 1% compared toFY2015 target. ○

・Reducing scrap volume・Reducing machine tool chips・Reducing incomplete part incineration(On an emissions per vehicle basis)

・Developing drive systems engineered for compact size and light weight・Considering resource depletion and availability in product development

Using resourceseffectively throughremanufacturing activities[Action target]

○

○・Completed a move to alternative

materials for some parts due to reduced use of rare earth elements.

・Pursuing the remanufacturing business in Asia, North America, and Europe Working to expand reuse of parts

○

・Effectively utilized resources by implementing a remanufacturing program for RWD ATs in the North American market.・Expanded the number of models covered by the remanufacturing program for commercial ATs in the North American market.

Category Goal FY2016 targetPrincipal initiatives FY2016 results Assessment

・Thoroughly implementing energy-saving activities・Reducing greenhouse gas emissions[Target defined in terms of unit revenue]

・Pursuing distribution facility reorganization activities ・Completed a reorganization of our distribution bases.

・Pursuing transport efficiency・Reducing CO2 emissions [Target defined in terms of unit revenue]

○

Designing products tofacilitate more effectiveuse of resources[Action target]

Achievement of Environmental Program Plan Goals in FY2016

Reduced by 1.2%compared toFY2015 target.

AW (non-consolidated)・Strengthening the energy-savings certification program・Consolidating production lines・Pursuing manufacturing-led improvement activities

○Reduced by 5.8% comparedto FY2015 target.

Reduced by 1.6%compared toFY2015 target.

Domestic and overseas Groupmanufacturing companies・Building structures to pursue energy savings・Applying successful energy-saving measures across the organization

○Reduced by 1.6% comparedto FY2015 target.

06


Building a societythat coexistswith nature

Develop and switch to alternative

materials.

・Developing alternative materials to comply with environmental regulations in various countries and working to switch over to those materials

・Reducing styrene emissions during production of hybrid units

・Assessing, managing, and reducing chemical substances contained in products

・Enhancing management of chemical substances in production and reducing environmental emissions

［Target defined in terms of hybrid unit production volume］

・Developed and transitioned to alternative materials. ○

Reduced by 20%compared to

FY2015 target. ○Reduced by 15%compared to 2016 target.

・Planning and participating as a partner in the following activities held by the Aisin Group:

・Environmental symposiums and exhibitions・Eco Tour activities

・Verifying environmental management system certification status・Carrying out inspections of uncertified suppliers・Carrying out inspections of suppliers with processes that entail

environmental risks such as noise, vibration, wastewater, and water pollution・Monitoring and evaluating revisions to applicable laws; pursuing improvements・Following up in a reliable manner on the transition away from environmentally harmful substances in accordance with laws and customer requests

Undertaking biodiversity initiatives as a group

［Action target］

Enhancing and pursuing global environmental educational activities

Supporting suppliers’ environmental activities undertaken in accordance with the Green Procurement Guidelines

○

○

・Participated in the Aisin Group Eco Tour held by the Aisin Group (on July 27) with 4 attendees from AW.

・Environmental protection activities in the Mikawa district:Assisted with a Yahagi River estuary tideland clean-up projectand nature-viewing event held by the Hekinan Seaside Aquarium (about 30 employees from Aisin Group companies participated).

・Environmental protection activities in Hokkaido: Maintenance volunteering: Cut back invasive species of grass to protect rare plant species (about 30 employees from Aisin Group companies participated).

①Reviewed the certification status of the Environmental Management System (carried out for seven companies).②Checked new suppliers’ environmental management systems (carried out for one supplier).③Conducted site inspections at suppliers where environmental risks were identified.④Carried out transitions based on laws and customer requests.

・Attended environmental lectures at the Aisin Group Environmental Symposium.

・Held environmental seminars for workers with environmental responsibilities at AW consolidated companies (in June and November).

・Offered assistance and education to workers with environmental responsibilities at overseas AW Group companies in Southeast Asia (in March and May).

・Shared information about revisions to environmental regulations with domestic AW Group companies via the AW Group Consolidated Safety and Environmental Liaison Conference and implemented compliance activities (in June and November).

・Discussed methods for complying with revisions to ISO standards with domestic and overseas AW Group manufacturing companies (companies are now preparing for compliance according to plan).

・Japan: Completed Environmental Management System audits at AW Group manufacturing and non-manufacturing companies.

・Overseas: Completed site reviews at manufacturing companies in Europe.

○

○

○

○

○

Environmental management

Category Goal FY2016 targetPrincipal initiatives FY2016 results Assessment

Enhancing global environmental management(CO2, waste, water consumption)

Contributing to industry through environmental technologies and expertise

Pursuing community service activities related to the environment in partnership with local communities

Actively providing information and communicating with local communities

・Participating in environmental education offered by the Aisin Group・Holding environmental seminars for workers with

environmental responsibilities at AW consolidated companies・Offering assistance and education to workers with environmental responsibilities at overseas manufacturing companies

・Improving management by hosting safety and environmental liaison conferences with domestic and overseas AW Group companies・Pursuing Environmental Management System communication activities with domestic AW Group manufacturing and non-manufacturing companies・Pursuing Environmental Management System communication activities, including site reviews, with overseas AW Group manufacturing companies・Finalizing methods for evaluating water risk at domestic and overseas manufacturing facilities

・Planning and carrying out environmental protection activities that bring together employees, their families, and local communities at facility sites

・Offering an Aisin Environmental Learning program at local elementary schools

・Pursuing initiatives involving innovative technologies

・Providing information through the Environmental Report (spring and fall editions)

・Actively communicating with local communities (local gatherings, water environment meetings, etc.)

・Planned and carried out environmental protection activities involving employees, their families, and local residents at facility sites.

・Offered the Aisin Environmental Learning program (at least once per year at elementary schools in communities where facilities are located).

・Environmental protection activities in the Mikawa district: Assisted with a Yahagi River estuary tideland clean-up project and nature-viewing event held by the Hekinan Seaside Aquarium (about 30 employees from Aisin Group companies participated).

・Provided information through the Environmental Report (published in June and November).・Actively communicated with local residents.⇒Held local meetings with neighborhood

associations as well as regular hearings in areas where our facilities are located, including for the Head Office, Okazaki and Okazaki East (with a joint meeting), and Tahara districts, to receive and disseminate information.⇒Held water environment meetings with various

groups (Yahagi River Basin Land Development Alliance , Aburagafuchi Fishery Cooperative Association, etc.) (September, January).

・Exhibited products that can contribute to the ITS field at the ITS World Congress 2016.

・Presented a paper entitled “Development of an Automatic Map Generation Function” (advanced system development department).

07


Structure and Organization

Aisin AW uses organizational action in its environmental policy management approach as a means of making that policy more concrete. Subcommittees of the Environment Committee prioritize and discuss issues with particular significance for the company's business. Aisin AW is committed to sharing information to facilitate AW Group activities and initiatives.

Management Principles

Organizational ActivitiesBusiness plans for each department

Implementation of activitiesInternal

EnvironmentalAudits

Effectiveness verification

Environmental Policies

Objectives and targets

Annual goals and targets

Annual environmentalactivity plans

Environment Committee

The AW Group

Energy Subcommittee

Material Loss Reduction Subcommittee

Chemical Reduction Subcommittee

Distribution Rationalization Subcommittee

Subcommittee to Reduce EnvironmentallyHarmful Substances in Products

Sharing information (domestic and overseas groups)

Environmental target guidelines for thedomestic group

(manufacturing andnon-manufacturing companies)

Waste & Recycling SubcommitteeExecutive Committee

Company Audit

1-year management plans

Long-term management visionLong-term management plans

08


Internal Environmental Audits

Current ISO Status of Departments

ISO 14001 Certificate of Registration

Aisin AW acquired ISO 14001 certification for all departments on July 24, 1999, including the Head Plant, Machine & Tools Department and Prototype Department (each in Anjo City), Okazaki Plant and Okazaki East Plant (both in Okazaki City), Tahara Plant (Tahara City), Gamagori Plant (Gamagori City), Kira Manufacturing Department (Nishio City) and AWQUIS JAPAN Co., Ltd. (Okazaki City)

At least once a year we conduct our own internal environmental audits of every department to check that our environmental management system is being effectively implemented.

Aisin AW introduced effectiveness-oriented audits in FY2005 and continues to actively search for improvement opportunities in order to ensure that the auditing process drives operational improvements.

Aisin AW has acquired ISO 14001 certification for all its business activities. As well as strengthening our environmental protection efforts by making our operations transparent, ISO 14001 has enhanced the trust of our customers.

Acquisition of ISO 140011.2

Management andmanagement

representative incharge of environmental

management

ISO 14001Implementation

OfficeAudit Team All Departments

Review and implementchanges Annual plans Conduct audit

Report result Summarizeaudit results

Implementcorrective actions

09


persons

１９９８

１２７

１９９９

１７５

２０００

２１１

２００１

２２３

２００２

２３０

２００３

３３２

２００４

３８２

２００５

４４１

２００６

４６０

２００7

548

1,000900850800750700650600５5０５００４５０４００３５０３００２５０２００１５０１００５００

２００8

628

Trends in the Number of People Completing Internal Environmental Auditor Training

２００9

687

２０11

823

２０12

891

２０13 year２０14 ２０15 ２０16

923 954976 1005

２０10

763

Workers in environment-related facilities:Workers who are either directly involved in activities that impact on the environment or who work in facilities that have an impact on it.

Educating Internal Environmental Auditors

Aimed at: Main details

New employeesFundamentals of environmental protectionEnvironmental policies of Aisin AWImportance of observing rules

Newly appointed management supervisors

Environmental problemsEnvironmental management proceduresRoles and responsibilities

Workers in environment-related facilities

Operation and checkingMaintenanceDealing with abnormalities and emergencies

We believe that human resources are the most important factor in the success of environmental protection activities. To promote environmental protection effectively, it's vital that each and every one of our employees are made aware of environmental problems and that they work together with a clear understanding of their own roles in solving them. In view of this, Aisin AW runs continuous environmental education and training programs, in order to utilize the various skills of our employees to produce concrete results.

Internal environmental audits are an important means of checking the state of the company’s environmental management system. Similarly, the environmental management system operates most effectively when key personnel are also capable of acting as internal environmental auditors.Aisin AW is committed to improving its environmental management system by fostering the development of internal environmental auditors on an ongoing basis.

Environmental Education and Training1.3

Environmental Education System

10


AmountItem

1．Business costs 2.4 billion yen

3.8 billion yen

Preventing pollution, e.g. air, water and soil pollutionEnergy savingRecycling and waste disposal

Operating EMS, environmental education,environmental monitoring and measuring

Research and development to reduce environmental burdens

Nature protection and tree planting

Repairing environmental pollution damage

Economic benefitsItem Major challenges

Global warming preventionWaste reduction 1.7 billion yen

Material benefits

27,568c-tReduction of CO2 emissionsReduction of total emissions from waste products, etc.

Total

Environmental Conservation Costs

Environmental Conservation Benefits

Environmental accounting seeks to provide an understanding of environmental conservation costs, which represent outlays targeted at reducing the environmental burdens arising from business activities, and the environmental conservations benefits (material benefits and economic benefits) obtained as a result of those activities. The discipline serves as a means of evaluating the extent to which a given organization is engaged in environmental conservation.

Environmental conservation costs for FY2016 totaled ￥11.2 billion.These costs are equivalent to approximately 1% of the company’s annual revenue. Environmental conservation benefits (economic benefits) totaled ￥1.7 billion.

In addition to continuing its aggressive information disclosure policy, Aisin AW is committed to streamlining its environmental conservation programs by upgrading management tools to better reflect the unique requirements of environmental management.

Calculations are limited to substantive benefits that are conducive to well-grounded calculation.

Partial estimates were used in the calculations of capital investments and research and development expenses where objectives are difficult to classify precisely into environmental and non-environmental categories.

Environmental Accounting1.4

Collecting and remanufacturing products, recycling packaging２．Upstream and　 downstream costs

4．R&D costs

5．Social costs

６．Environmental harm costs

３．Management costs 0 billion yen

4.9 billion yen

0.1 billion yen

0 billion yen

11.2 billion yen

11


Improving fuel efficiency by limiting the increase in engine RPM triggered by acceleration with a newly developed torque converter

Delivering start/stop capability with newly developed valve bodies

Reducing torque loss with high-efficiency oil pumps and reduced-drag clutches and brakes

Design and Development2.

As a manufacturer of automatic transmissions, Aisin AW is working actively to develop and adopt fuel-efficient technologies by enhancing its line of automatic transmission and CVT products.We mass-produce 6-speed automatic transmissions featuring improvements in both acceleration performance and fuel efficiency for FWD and RWD vehicles. These products are delivered to a total of 51 customers (as of March 2017), including manufacturers such as Toyota and Volkswagen, where they contribute to improved vehicle fuel economy. To ensure our automatic transmissions deliver best-in-class fuel efficiency and satisfy the increasingly stringent standards set forth by various countries’ fuel efficiency regulations, we are working to dramatically improve vehicle fuel economy by incorporating features such as reduced torque loss, an expanded lock-up region, and start/stop capability. Having begun mass-production of the world’s first FWD 8-speed automatic transmission in 2012, of a new FWD 6-speed automatic transmission in 2013, and of the world’s first RWD 10-speed automatic transmission for a passenger car in 2016, we are helping manufacturers such as Toyota as well as overseas customers such as Volvo and BMW deliver improved acceleration performance and fuel efficiency in a manner that befits their premium products.

* FWD: Front Wheel Drive RWD: Rear Wheel Drive

オートマチックトランスミッション2.1 Automatic Transmissions2.1

The company’s AT Initiatives

・We delivered more efficient transmissions with reduced torque loss by using high-efficiency oil pumps and reduced-drag clutches and brakes. ・Furthermore, we improved fuel efficiency by using a newly developed torque converter to start lock-up slip control immedi-

ately after the vehicle accelerates from a stop and thereby expand the lock-up region. ・In addition, a newly developed valve body has made it possible to incorporate start/stop capability without sacrificing the

ease with which the transmission can be mounted in various vehicle designs, further improving fuel efficiency.・Use of gear ratios with broader coverage and expanded gearing enables a wider gear range and closer-set ratios than

previous automatic transmission technology, helping to improve both acceleration performance and fuel efficiency.

※Based on Lepelletier system

Thro

ttle

open

ing

New automatic transmissionAbout 1,000 rpm

Engine rotation speed

Previous 6-speedautomatic transmissionAbout 1,200 rpm

rpm

%

Expanded lock-up region

2 3 4 6 75 98 10 11 131 12 1514Totalgear ratio

New6-speedAT model

Previous6-speedAT model

New8-speedAT model

New8-speedAT model

2 3 4 6 75 98 10 11 1312 1514Totalgear ratio


New10-speedAT model

New10-speedAT model

km/l


New6-speedAT model

+7%

New8-speedAT model

+2%(NEDC mode) km/l


New10-speedAT model

+6%(NEDC mode)

Tenthgear

Ninthgear

●Lock-up region

●Automatic transmission structure

Improving fuel efficiency by reducing engine RPM through the use of gear ratios with broadercoverage and expanded gearing

●Gear ratios (FWD models)

●Fuel efficiency (FWD models)

●Gear ratios (RWD models)

●Fuel efficiency (RWD models)

Sixthgear

Firstgear

Secondgear

Thirdgear

Sixthgear

Fifthgear

Fourthgear

Eighthgear

Seventhgear

Firstgear

Secondgear

Thirdgear

Fifthgear

FourthgearEighth

gearSixthgear

Seventhgear

Bette

r

Bette

r

12

AISIN AW ENVIRONMENTAL REPORT 2017 2.Design and Development

More compact and lightweight ECUs

ECU with integrated neutral start switch (N.S.SW.)

The lengths of the harnesses between the automatic transmission and the ECU and between the vehicle and the ECU have been dramatically reduced.

Against a backdrop of growth in the highly developed functionality and performance offered by automobiles, Aisin AW is developing advanced technology for use in automatic transmission ECUs (controllers).These efforts are contributing to improved fuel efficiency not only through the development of new control technologies such as expanded gearing (8-speed models, etc.), but also through initiatives conceived to promote smaller and more lightweight ECU designs, reduce raw material use, share product design processes, and reduce and simplify the tools and hardware used in production processes.ECU with an integrated neutral start switch (N.S.SW.) incorporates a neutral start switch, one of the mechanical components of an automatic transmission, into the automatic transmission ECU. The design is contributing to improved fuel efficiency not only by reducing raw material use but also through reduced vehicle harness length and weight.

ECUs for ATs (Electronic Control Unit)2.2

Previous ECU model

New ECU model

－30％

Previous ECU model

New ECU model

－35％●Volume

Previous ECU model●Mass(weight)

New ECU model

Previous model

Integrated N.S.SW./ECU

－79％

Integration of automatic transmission ECU and N.S.SW.

Previous ECU model

Previous N.S.SW. model

Vehicle harness length

※ Based on Lepelletier system

13


Reducing fuel consumption through automatic map distribution

Car navigation systems receive signals from satellites and identify the vehicle’s position and direction by combining that data with information obtained from various onboard sensors, and navigate.

Navigation Systems

Car navigation system mechanism

Reducing fuel consumption with navigation route guidance

2.3

Speed sensor

Direction sensor

GPS receiver

GPS antenna

NavigationComputer

Display

Map database●SD card●HDD●DVD-ROM●CD-ROM

By guiding drivers to their destinations via optimal routes, voice navigation helps improve overall fuel econo-my. In this way, it allows drivers to avoid wasteful fuel consumption due to use of inefficient routes while disoriented or lost. Additionally, incorporation of functionality supporting the Vehicle Information and Communication System (VICS) and information about traffic congestion generated by vehicle driving history data (probe traffic information) improves fuel efficiency by helping drivers avoid congested areas.

Helping improve fuel efficiency by avoiding inefficient and congested routes

●Before opening of the Shin-Tomei Expressway

●After opening of the Shin-Tomei Expressway

If the distance and time to the destination can be shortened, the amount of fuel used can be reduced. Roads change on a daily basis, and while it would be ideal if drivers could immediately make use of new roads, updates of car navigation maps in the past have been limited to the publication of twice-yearly updated edition information.To address this issue, Aisin AW developed new functionality for automatically distributing differential map updates covering changes to major roads and roads near drivers’ residences and destinations to car navigation systems via mobile phones and other means. The service began operation in March 2007.The new function has enabled expressways and toll roads to be used in route guidance as soon as seven days after opening (with information about impor-tant roads updated within several hours), and for use of other roads to begin sooner than is possible with conventional updates. Using route guidance for a trip from Aisin AW’s Head Office Okazaki Plant to Gotemba Premium Outlets as an example, map data for the Shin-Tomei Expressway that was distributed after the new expressway’s opening made it possible to shorten the route by 6 kilometers, from 213 to 207 kilometers. (Updated data includes new expressway tolls.)

14


Comparison of CO2 emissions (well to wheel)JC08 mode (g-CO2/km)

Source: Japan Automobile Research Institute0

Gasoline-powered car

Hybrid car

EV(electric vehicle)(FY2009)

We have been developing compact, highly efficient drive systems for EVs and hybrid vehicles by combining our experience and know-how as a specialized maker of automatic transmissions with state-of-the-art motor technology.Our EV drive system program began with the development of a four-wheel electric car in 1986 and continued as Toyota selected our EV drive system for the Crown Majesta EV in1993. In 1998, we produced an EV system for Toyota's "e-com," an ultra-compact EV.The system was also used as the drive system for a super-compact EV (Coms) sold by Toyota Auto Body from 2000 to 2011.

For hybrid vehicle drive systems, which have been attracting increased attention recently, we are producing one 2-motor hybrid system for FWD vehicles and four for RWD vehicles.

Aisin AW's contribution to society originates in the development of forward-looking, environmentally responsible automobiles. Our drive systems for EV and hybrid vehicles help reduce exhaust gases and improve fuel economy.

55

147

95

EV (Electric Vehicle) and Hybrid Drive Systems2.4

15


FF 2-motor hybrid transmission

●The Toyota Prius, which has lower capacity than the Camry Hybrid, features an AW FF 2-motor hybrid transmission.

●The Toyota Prius and C-HR, which was launched in December 2016, feature an AW FF 2-motor hybrid transmission.

●The system is featured in the Lexus GS450h, which was launched in March 2006, and the Toyota Crown Royal and Crown Athlete, which were launched in May 2008.

●Lexus selected an Aisin AW 4WD hybrid transmission featuring improved quietness for use in its flagship LS600h (available May 2007).

RWD 2-motor Hybrid Transmission / 4WD Hybrid Transmission

This 2-motor hybrid system delivers improved fuel economy without sacrificing the power and speed that are expected of a luxury passenger car. A double reduction design that can select from two reduction gear ratios for the drive motor output shaft enabled a design that was compact enough to be integrated into existing RWD platforms.

This 2-motor hybrid transmission combines the advantages of series hybrid and parallel hybrid architectures to achieve optimal engine operation and super-high fuel efficiency through brake energy recovery and other means.

●The system is featured in the Toyota Crown Athlete, which was launched in January 2013; the Lexus IS 300h, which was launched in May 2013; and the Lexus GS 300h and RC 300h, which were launched in September 2013.

[Medium capacity]

[High capacity]

We took a high-capacity design and gave it a single reduction gear to create a high-efficiency, lightweight, and compact design.

●Lexus selected the world’s first RWD multi-stage hybrid transmission for use in its flagship LC500h (available March 2017).

16


Typical of regulations governing environmentally harmful substances that are being enacted in Japan and around the world is the European Union’s End-of-Life Vehicle directive (ELV), which regulates substances (lead, mercury, cadmium, and hexavalent chromium) that have a harmful effect on the environment when vehicles are disposed.In light of this regulatory environment, Aisin AW is pursuing initiatives to complete the transition to alternative substances as soon as possible by creating an internal “Subcommittee to Reduce Environmentally Harmful Substances in Products” and working in partnership with customers advancing global efforts to reduce environmentally harmful substances in our products (automatic transmissions, ECUs, satellite navigation systems, etc.).We are also working on a voluntary basis to establish alternative technologies for products that are currently unregulated.

Initiatives to reduce the use of environmentally harmful substances

Initiatives to comply with European End-of-Life Vehicle (ELV) directives●LeadIn 2004 we completed the transition to alternatives for the lead contained in materials such as vinyl sleeves for aluminum electrolytic capacitor and acrylic rubber used in O-rings. No lead is currently used in these materials.

We completed the transition to alternatives for the lead contained in parts such as copper bearings and aluminum valves in 2008. No lead is currently used in these parts.

We are developing and transitioning to alternative materials to replace the lead contained in solder used with electronic components.

●MercuryWe do not use mercury in automatic transmission products.

We completed the transition away from parts containing mercury in navigation displays in 2010. No parts containing mercury are currently used.

●CadmiumIn 2003 we completed the transition to alternatives for the cadmium contained in materials such as solder used in satellite navigation motor commutators and throttle cables. No cadmium is currently used.

●Hexavalent chromiumIn 2006 we completed the transition to alternative for hexavalent chromium used for surface treatment of bolts, nuts, and other parts. No hexavalent chromium is currently used.

Other initiatives●AsbestosAisin AW abandoned the use of asbestos in friction linings in the 1980s.

●Perfluorooctanesulfonic acid (PFOS)In 2008, we completed the transition to alternatives for the PFOS used for surface treatment of washers. No PFOS is currently used.

●Decabromodiphenylether (decaBDE)In 2011, we completed the transition to alternatives for the decaBDE contained in N-switch lead wire materials.

Initiatives for Reducing Use of Environmentally Harmful Substances2.5

17


Production3.

Innovative Manufacturing Framework

Production Processes3.1Aisin AW is working to design production processes with the goal of achieving innovative manufacturing.

We are exploring the possibilities for techniques, equipment, production systems, and quality through a “three-in-one” organization consisting of design and development, manufacturing technology, and production divisions. Through this approach we seek to apply the results of the research and development of innovative technologies to improving the environment.

The Monozukuri Center provides a place for the pursuit of activities that move beyond divisional boundaries and conventional thinking. The facility is increasing the speed of innovation in manufacturing by grouping teams of professionals to address and explore various manufacturing research themes.

This section introduces some specific examples of these activities.

Monozukuri Center

Research Theme onMonozukuri

EngineeringDivision

ProductionDivision

ManufacturingEngineering

Division

18

AISIN AW ENVIRONMENTAL REPORT 2017 3.Production

Benefit (Example project 1: Dream Carrier)

The Dream Carrier is an automatic transport device inspired by mechanical windup technology used in traditional Japanese dolls that deliver tea to guests. The dolly eliminates the need for a power source such as electricity by employing a mechanism whereby the weight of the product being carried is harnessed to convey it to the next process, after which the power stored in a spring returns the dolly to its original location. The Dream Carrier is used throughout our factories as a dolly for transporting products, contributing to dramatic savings in both capital investment and electricity expenses.

●Transport dolly using an existing electric motor●Dollies were used to transport automatic transmissions 　from Process A to Process B, after which they returned 　to Process A. Many such dollies were used along the 　production line.

Previous process ●Savings in electric energy　(1 dolly)(kWh/year ･ dolly)

Previous process Newly developed process

●The new process was inspired by a traditional Japanese doll that used a spring-loaded mechanism to deliver tea to guests.The new dolly is powered by a combination of the weight of the automatic transmission and a spiral spring, effectively replacing the energy used to power the previous dolly with the power of the spring.●The dolly moves forward as a result of the weight of

the automatic transmission (which is analogous to the cup of tea in the doll's hand, the weight of which propelled the doll towards the guest).

●It returns by the power stored in the spring.

Newly developed process

Weight of the A/TWeight of the AT

１,００８

０

５００

０

１,０００

１,５００

Power of the spring as it returns

Power of the spring as it returns

●Electric Energy Reduction　 (Cumulative Per Year)

2

5

8

25 26 26 26

year２００３２００4 ２００5 ２００6 ２００7 ２００8 ２００9

（kWh/year）（number）

０

５,０００２,５００

5

10

15

20

25

30

0

１０,０００１２,５００

７,５００

１５,０００17,5００２０,０００２2,5００２５,０００

19


Benefits (Example project 2: Kaiteki Gokusema Line)

The total number of processes required for a conventional production line is rather high, requiring extensive floor space. The production line we developed accommodates a total of seven processes within 108m2 of space through the use of compact facilities with intensive, high-speed process and process consolidation. This compact line has been successfully realized. Also, with contributing factors such as low energy and low cost, this technology has made our production engineering highly efficient to a revolutionary degree.

Conventional production line Kaiteki Gokusema Line



Conventionalproduction line

Line suited to mass production

Kaiteki Gokusema Line

Kaiteki Gokusema Line

Developed line suited to various and small production

18m

All 50 processes

Space／1,464ｍ2

All 7 processes

Space／108ｍ2

6m

Better

Better

Better

０

400

300

200

100 128.4

354

(tons)

●Energy SavingsPower Use

●Resource SavingsWeight (Iron Use)

０

24,000

18,000

12,000

6,000

4,400

20,000

(ℓ) Machining Oil Use

０

12

9

6

3 3.33

9.76

(kWh)

●Number of processes and production space required to manufacture a single AT

-65%

-65% -70%

Conventional production line

122m

12m

20


110100

Conventional technique

Newly developed technique

●Part strength after carburization (index)

60

100



●CO2 (index)

Flame

OilUnderground pit

Carburization and quenching

Vacuum carburization

●Gas carburization

Dedicated fire extinguishers

Underground pit

47 m470 min.

26 m210 min.

●Mild carburization

Induction hardening and tempering

Cleaning Tempering

Site environment

Benefits


Gas carburization


Mild carburization

Benefits (Example project 3: Mild Carburization)

Carburization and quenching are widely used as a heat treatment process that yields exceptional strength. In the past, an enormous gas carburizing furnace was used, consuming large amounts of energy. The mild carburization process developed by AW combines a vacuum carburization system with an induction hardening system to dramatically improve the working environment by eliminating use of flame and oil while simultaneously shrinking the system’s footprint. Additionally, mild carburization provides 10% higher strength than the conventional technique.

Quenching oilFlame + oily smoke

Dedicated 　air conditioning

firewall

21


Benefits (Example project 4: Elimination of mist exhaust)

Power use

Display panel at ENEX 2013 Developed equipment: Eco-washer

０

14.1

54.2

Conventional Newly developed

（MWh/Year）

40

20

60

▲40.1（▲74%）

Energy use (crude oil equivalent)

０

3.6

13.8


（KL/Year）

10

5

15

▲10.2（▲74%）

Water use

０

3.6

6.0


（KL/Year）

4

2

6

▲2.4（▲40%）

CO2 emissions

０

4.4

18.5


（t-CO2/Year）

15

5

10

20

▲14.1（▲76%）

Cleaning and drying processes are an essential part of the AT production process, and a large amount of energy is required to keep these processes short in duration. Additionally, the conventional approach involves exhausting mist scattered from parts into the outside air. To resolve these issues, we replaced the compressor used to generate air for drying with a blower. This approach has delivered a number of benefits, including improved environmental performance thanks to reuse of exhaust air, implementation of one-motor drive control, reduced washing and drying room size, and inverter control of washing pumps. As a result, power use and water use have been cut by 74% (40.1 MWh/yr) and 40% (2.4 kL/yr), respectively. The Energy Conservation Center, Japan, recognized the initiative with its Chairman’s Award (the Fiscal 2012 Energy Conservation Grand Prize).

22


Benefits (Example project 5: Index press)

By adopting an indexed process in which machining work is performed one location at a time while rotating the material as an alternative approach to press-punching holes in an automatic transmission carrier cover part, we were able to reduce the number of dies required while simultaneously enabling use of a significantly more compact press. This enhancement involved a switch from a mechanical press to a servo press, which reduced standby power consumption, as well as the adoption of “coining motion,” a characteristic of servo presses that allows machining work to be performed with the minimum necessary stroke length, thereby reducing the air-cutting region during press operation. As a result, the new process is characterized by a 76% reduction in both power use and CO2 emissions compared to the crank motion of the mechanical press that was used in the past. This innovation received the 2014-2015 MF Technology Award from the Japan Forming Machinery Association.

Target product: Carrier cover part Developed equipment: Index press Developed die: Index die structure

With punch returnedWith punch deployed

０

CT = 29.6 sec. (31 shots/unit)

180

Power use

００

6,103

25,954

Past approach Newly developed approach

(KWh/year)

20,000

25,000

15,000

10,000

5,000

30,000

▲76%

CO2 emissions

2,327

9,896

Past approach Newly developed approach

(kg-CO2/year)

2,000

4,000

6,000

8,000

10,000

▲76%

Past approach: Mechanical press (crank motion) Newly developed approach: Servo press (coining motion)

Sliding stroke

Sliding stroke

０

50

CT = 27.8 sec. (31 shots/unit)

180

Air cylinder

Punch

MaterialDies

Shaft

Cam

23


This section details Aisin AW’s efforts to reduce CO2 emissions and packaging material use in product distribution.

Initiatives to Reduce CO2 Emissions

Initiatives to Reduce Packaging Material Use

[Previously] Shipment by ship [After improvement] Shipping by rail

[Previously]Single-use cardboard packaging

[After improvement] Plastic returnable shipping containers and packaging

We in the Production Systems & Logistics Planning Department consider environmental conservation to be our mission, and as a result we are working to achieve environmentally friendly distribution. This year, we continued our stubborn commitment to this program of activities with a focus on our ongoing effort to apply measures horizontally across our organization. Typical of this initiative was a modal shift from shipping to rail in the Tohoku region (*1). (*1: CO2 emissions from rail transport are about 44.4% lower than those associated with ocean shipping.)Cargo is subjected to a higher level of vibration when shipped by rail than when shipped by ship or truck, making load shifts and similar issues a concern. Consequently, we carried out an evaluation of transport quality and confirmed that there were no problems in this regard.As a result, we expect to lower CO2 emissions by 60 tons per year (*2).(*2: This reduction is equivalent to the amount of CO2 that would be produced by driving back and forth between Tokyo and Osaka in a passenger car 350 times.)Going forward, we will continue to pursue the goal of environmentally friendly distribution, both by applying existing initiatives horizontally across our operations and by embracing the challenge of pioneering new improvements.

Although we have been using plastic returnable shipping containers, which are environmentally friendly since they can be reused, to ship production parts to overseas plants from the perspective of the 3Rs (reduce, reuse, and recycle), we’ve had to use single-use cardboard packaging for large, heavy parts due to constraints on the dimensions and strength of plastic containers.This year, we developed a new container that can accommodate large, heavy parts while working to ensure that it would be easy to handle, both for workers responsible for packaging the parts and for workers at the destination facility. As a result, we expect to reduce emissions by 128 tons per year.Going forward, we will continue to strive to achieve environmentally friendly distribution by embracing the challenge of making new improvements.

Improving Distribution3.2

Company A(Iwate)

Company A(Iwate)

Port of Sendai

OkazakiPlant

OkazakiPlant

Annual CO₂ emissions:132 tonsAnnual CO₂ emissions: 72 tons

(Reduction of 60 tons per year vs. previous approach)

Annual materialuse:132 tons

・Cardboard inserts and anti-rust pouches (for individual parts): Single use

・Carton, pallet, top cover: Single use

Inner packaging

Outer packagingOuter packaging

Inner packaging

Annual material use: 4 tons(Reduction of 128 tons per year vs.previous approach)

・Inserts: Returnable・Anti-rust sheets: Single use

・Carton and pallet: Returnable・Top cover: Single use

24


Remanufacturing3.3What is Remanufacturing?

Focus and History of Activities

2016:8,377 units remanufactured

AW Europe S.A.

2016:14,924 units remanufactured

AWQUIS JAPAN 2016:

25,821 units remanufactured

AW Transmission Engineering U.S.A., Inc.

Remanufacturing Process Outline

Ｔ/Ｃ＝Torque Converter

User Dealer Customer distribution

Complaint

Remanufactured

●Aisin AW has begun remanufacturing of each new AT as soon as it is launched, 　expanding its market through the years.●Over time we have steadily increased the proportion of recyclable parts in our products　(e.g. T/Cs, bushes).●We have reduced waste volume by using returnable containers for transport.

Benefits forthe globalenvironment

In a word, it's the automatic transmission recycling business. Aisin AW provides recycled automatic transmissions at an inexpensive price point for use in repair and replacement of models already in service. The company is contributing to global environmental conservation through its remanufacturing program, reducing waste products and effectively using resources. Three facilities-AWQUIS JAPAN (Aichi Prefecture), AW Transmission Engineering U.S.A., Inc. (North America), and the AW Europe Service Center (Europe) recover automatic transmissions from the market and disassemble and repair them, guaranteeing proper functionality.

Vehicle check and diagnosis

Remanufacturing basesDisassemble,repair and inspect

Parts recycling

T/C remanufacturingInstall remanufactured AT Inventory shipment

Order

ATremanufacturing

Dec. ’11:Started remanufacturing linear SOLs

June ’14: Startedremanufacturing CVTs in AWTEC

Aug. ’94:Establishedremanufacturing plant

April ’03:Established AWQUIS JAPANCO., LTD. (spun off from AW)

Dec. ’99:Introduced returnable containers

May ’69:Commenced AT remanufacturing with the founding of AW

July ’98:Opened AW Europe Service Center

April ’00:Started T/C remanufacturing

Aug. ’04:Started remanufacturingATs for TOYOTA models

Nov. ’07:Started remanufacturingCVTs for Aisin AW model

April ’88:Opened AWTEC U.S.A., Inc.

’79 to ’89:Started remanufacturing ATs for TOYOTA models

16

total units

６９７１

160150140130120110１０0９0８0７0６0５0４0３0２0１0０

７３７５７７７９８１８３８５８７８９８８９８９４９１９３０３０４９５９７９９０００7０１０５０6 ０8 ０9 11 1410 12 13 15

Remanufacturing Total Units

25


Aisin AW’s Commitment to Energy Efficiency

“BEST MIX” (Optimum Energy Mix) ●Our basic approach to energy consumption is focused on improving environmental performance, achieving greater cost effectiveness, and ensuring a stable energy supply. These three concepts add up to a balanced use of energy. Collectively we call this the "BEST MIX" of energy use. We also believe that it is important to precisely target energy delivery to reflect the locations, times, and quantities that characterize demand.

●Aisin AW sees the prevention of global warming as consisting of the suppression of CO2 emissions by promoting energy conservation initiatives. The Energy Subcommittee lies at the center of the company's efforts in this regard, which reflect the internal slogan, "Protecting the global environment is a job for everyone." Aisin AW has come together to focus on energy conservation.

BESTBEST MIXMIX

Environment

Businesscost

STablesuppy

Reducing CO2 Emissions per Unit of Energy Used and Total CO2 Emissions

Initiatives undertaken in FY2016 focused on (1) halving new-line CO2 emissions, (2) implementing an equipment energy-savings certification program (completing Level 4 items), and (3) applying energy conservation activities outside the company.

CO2 emissions perunit of energy used

Total CO2 emissionsSales

Energy Conservation3.4

＝

Trend in CO2 Emissions Per Unit of EnergyUsed and Total CO2 Emissions

０%

50%

100%

150%

200%

250%

300%

０%

20%

40%

60%

80%

100%

Total CO₂emissions

index

CO₂ emissionsper unit of energyused index

’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 year’10 ’12 ’13 ’14 ’15 ’16’11

Total CO₂ emissionsCO₂ emissions per unitof energy used

Better Better

Aisin AW’s energy conservation activities include establishing reduction targets for each fiscal year and undertaking a companywide effort to reduce CO2 emissions per unit of energy used and total CO2 emissions.

26


FY2016 Activities

Future DirectionsAisin AW’s design, production engineering, and manufacturing teams will continue to work together to pursue a series of sustained initiatives in order to achieve the goal of zero plant CO2 emissions by 2050, specifically:(1) Creating products with low CO2 emissions through SE activities (*2)(2) Further pursuing innovative processes designed to conserve energy(3) Expanding our compact, modular approach to power equipment (installing dual-mode hat pump systems, 　 compact compressors, and other equipment at existing plants)(4) Applying Level 4 checklist items from the equipment power conservation certification program(5) Replacing outdated equipment with high-efficiency equipment (updating existing plants to LED lighting, etc.)(6) Utilizing renewable energy to create energy

Objective: To reform energy use at production plantsHalving new-line CO2 emissions

Objective: To apply improvements elsewhere■Three examples were applied at the Energy Conservation Project Presentations, an annual event held by the Aisin Group.

Applying energy conservation activities outside the company

*2 SE activities focus on manufacturing-ready design, starting during the product design stage.

CO2 emissions from existing equipment (cumulative)(Thousands of t-CO2/year)

20

15

10

5

0FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

10,600 t-CO2

Certification sticker

　　 Level 2 checklist items･Intermittent operation of equipment, etc.

　　 Level 4 checklist items･Installation of air blowers･Installation of pump inverters･Use of lower coolant temperatures

LED lighting throughout buildingsDual-mode heat pump systems

Plant building

Compact compressorsIndependently operating, package-type air-conditioners

High-efficiency modular chillersHigh-speed machining lines

Implementing an equipment energy conservation certification program (completing Level 4 items)

Objective: To aggressively apply energy-saving changes across the organization and strengthen associated mechanisms■We use checklists that define energy-saving standards to

evaluate how well production, power, and other equipment has incorporated energy-saving specifications. This program enables us to visualize how well we are saving energy, apply energy-saving innovations horizontally across our organization, and strengthen associated mechanisms. In FY2011 we began applying checklist items by installing equipment such as pump inverters and blowers, which are Level 4 (*1) items.*1 Level 1: Energy-saving checklist items have not been

incorporated into the equipment.Level 2: Energy-saving circuitry has been incorporated into the

equipment.Level 3: Energy-devices have been incorporated into the

equipment.Level 4: State-of-the-art energy-saving devices have been

incorporated into the equipment.Level 5: The equipment does not use energy (power or air).

Equipment energy conservation certification program targetsNew equipment: Level 4; existing equipment: Level 3

Index

0

10050

Before After: Okazaki East expanded area

Energy-saving benefits

▲50%

■We worked to halve production energy use in areas targeted by the Okazaki East Plant expansion project (where production began in May 2016), including energy use by power and production equipment.

Priority measures include the following: ・Adoption of compact modules for power equipment (dual-mode heat pump systems, compact compressors, package-type air-conditioners, etc.) ・Reduction of the number of pieces of production equipment through new-product SE activities and development of new production technologies ・Pursuit of the goal of zero energy use (adoption of powerless processes based on KARAKURI as well as processes that do not use heat, air, or standby power)

During FY2016, we focused on the following activities as part of our effort to achieve zero plant CO2 emissions by 2050 and halve our CO2 emissions by 2030, which is our intermediate-term goal.

Energy savings: 100%

・The vinyl hoses would harden after two to three years.・Couplers were inserted into the hose and secured with hose bands.

・We began using vinyl hoses that are more resistant to hardening.・We secured hoses safely and robustly with box nut type couplers.

Intermittent supply of air to pneumatic micrometers with an air cutoff fixture

Energy savings: 99%

Modular air conditioning by reducing ventilationvolume and circulating inside air

Energy savings: 62%Before After

The plug was stored by inserting it into the master (so that air was being used continuously).

Air is used only when the plug is removed from the fixture.

Before After

・The plant was ventilated five times (requiring a large amount of energy to be used to heat outside air).・Air conditioning was performed by means of a large heat source.

・The plant is ventilated two times (requiring a smaller amount of energy to be used to heat outside air).・The new approach uses a modular heat source and separate air conditioners.

Before After

(Outside air processing and internal heating)Air conditioner

(Outside air processing)Outdoor unit

Modularheat

source

(Internal heating)PAC air conditioner

Exhauster Exhauster

100

Airintake

Largeheat source

40

Airintake

40

Airexhaust

Measures to permanently address air leaks by switching vinyl hose and coupler types

Vinyl hoses(Plasticizer: Phthalic acid)

Vinyl hoses(Plasticizer: Polyester)

Plug storage state Plug storage state

Air valveProximitysensor

Air cutoff fixture

With plug removed

Hose bandsExtended use

Couplers(Telescopic joint)

Couplers(Box nut design)

Plug 100

Airexhaust

27


Waste Reduction Activities

The Waste & Recycling Subcommittee determines targets for reducing waste and the direction of associated activities. We achieved zero emissions in 2002, and we worked to reduce total waste volume through 2010. In 2011, we launched an initiative to reduce waste volume per unit of production, and we achieved our targets through a waste plastic recycling program. In 2016, we launched an effort to recycle waste oil. Going forward, we will continue to work to reduce waste volume per unit of production.

We have continued to work to reduce waste volume per unit of production (Step 6) since FY2016. We will determine specific reduction targets based on a consideration of production volume forecasts. Our specific approach, which will be shaped by the 3Rs, will include recycling waste oil for use as a raw material in the production of remanufactured fuel oil and as a fuel for incinerators.

Reducing Waste Products and Encouraging Zero Emissions3.5

ＡＷ

Internal reuse External reuse (sale of waste for recycling)

Waste

(Step 2)Buried waste

(achieved zero emissions in May 2002)

(Step 3)Incinerated waste

(achieved target in FY2005)

(Step 6)Reduction of waste oil emissions (target to be achieved by end of FY2020)

(Step 5)Reduction of waste plastic emissions

(target achieved in FY2015)

(Step 1)Outsourcing of processing

(achieved target in January 2000)Internal processing

(reduction of waste volume)

(Step 4)Reduction in total waste volume

(program ended in FY2010)

Reducing total emissions (waste products)

Total industrial waste volume and industrial waste volume per unit of AT production

12,000

10,000

8,000

6,000

4,000

2,000

0

3.00

2.50

2.00

1.50

1.00

0.50

0.00

（Metric ton/year)

(kg/number)

（year）20052003

2.36

2004

1.941.73

2006

1.73

2007

1.68

2008

1.88

2009

1.45

2010

1.44

2012

1.21

2011

1.37

Total industrial waste volume　Industrial waste volume per unit of AT production

2014

1.22

2015 2016

1.22 1.21

2013

1.23

28


WasteWaste

ResourcesResources

Waste product volume reduced 180 tons/year (achieving our target of 165 tons/year)

Before

After

We converted the waste into a valuable resource by separating the water and oil.

･Quenching waste oil and cleaning waste liquid were being mixed together before being sent to the industrial waste treatment site.･We had asked the industrial waste processor to pick up the waste without looking into whether the oil could be recycled as a valuable resource.

Issues

Sale of quenching waste oil to a recycler (165 tons per year)

・A recycling company now picks up just the quenching waste oil, which it purchases as a resource.

The waste oil can be burnedcontinuously due to its low

moisture content.

We vetted candidate companies’ site operations and asked a trustworthy one to recycle the waste oil as a valuable resource.

Final effluent n-hex

・We chose a processor with a proven track record and asked it to recycle the waste oil as a valuable resource.

・Routing oil-water emulsion, cleaning liquid, and water to a wastewater treatment facility

Measure ①

Treatment of cleaning waste liquid in-house (77 tons per year)Measure ②

Waste (paid disposal)

Oil cannot be burned due to high moisture content.

233tons per

year（）Underground pit

Industrial wastetanker truck

Quenching waste oil

Oil-water emulsion

Cleaning liquid and water

Quenchingwaste oil

Collection Storage

Analysis Processing

No effluent issues

Underground pit Recycling tanker truck

mg/

L

0.800.700.600.500.400.300.200.100.00

Floated oil tank

Reaction tankFlocculation tank

Pressurizedflotation tank

Active carrierbiotreatment tank

Filtration and activatedcharcoal adsorption

Discharge

Wastewater treatment facility

P

Reducing quenching waste oil (Okazaki Plant, Okazaki East Plant, Tahara Plant)

Valuable resource (generates income)

29


Aisin AW pursues its environmen-tal conservation activities based on an Environmental Management Program (EMS) and with key em-phasis on the three imperatives of complying with laws, preventing accidents, and improving perfor-mance.

Complying with laws

Preventing accidents

Improving performance

AW’s approach toenvironmental conservation

Based on our EMS…

（Eliminating problems complaints from society and local communities）

（Minimizing social risks）

Leadingcompany

Improving performanceImproving performance

Preventingaccidents

Complyingwith laws

Eliminatingproblems

complaints

Minimizingrisks

EMS

Partnerships with the Aisin Group

Cooperation with Suppliers and Group Companies4.1

（Becoming a leading company in the effort to address environmental issues such as reducing CO2 emissions and waste products）

Environmental Protection Activities4.

Aisin AW is actively involved in a linked series of environmental conservation initiatives and is focused on deepening partnerships with Toyota, the Aisin Group, suppliers, and the AW Group (International and Japan).

TOYOTA : 21 companiesSuppliers : 500 companiesAisin Group : 12 companies

●AW North Carolina, Inc.●AW Europe S.A.●Tianjin AW Automatic

Transmission Co., Ltd.●AW Suzhou Co., Ltd.●AW Tianjin Automotive

Parts Co., Ltd.●AW (Thailand) Co., Ltd.

●AW Transmission Engineering U.S.A., Inc.●AW Technical Center U.S.A., Inc.●AW Technical Center Europe S.A.●AW Korea Co., Ltd.●AW Shanghai Automotive Parts Trading Co., Ltd.●AW Hangzhou Software Development Co., Ltd.●AW China Co., Ltd.●AW Suzhou Technical Center Co., Ltd.

Production Non-Production

AW Group International : 14 companies ●Aisin KIKO CO., Ltd.●Aisin AW Industries Co., Ltd.●CVTEC Co., Ltd.●AW Service Co., Ltd.●AW Engineering Co., Ltd.●Equos Research Co., Ltd.●AW Maintenance Co., Ltd.●IMRA JAPAN Co., Ltd.●AW Software Co., Ltd.●AWQUIS JAPAN Co., Ltd.

Production

Non-Production

AW Group Japan : 10 companies

Aisin AW participates in a variety of symposiums, exhibitions, and outdoor activities held jointly with Aisin Group companies.

○Aisin Group Consolidated Environmental SymposiumWe strive to raise awareness of environmental conservation by participating in the Aisin Group Consolidated Environmental Symposium.

○Aisin Group environmental communication activitiesIn addition to contributing to the environment in local communities, environmental communication activities provide opportunities to learn and think about everyday life and business activities based on the surrounding ecosystem.

Attendees learned about how to build a sustainable society. Environment communication activities

30

AISIN AW ENVIRONMENTAL REPORT 2017 4.Environmental Protection Activities

Partnerships with AW Group overseas companies

Aisin AW's goal is for manufacturing companies to earn ISO 14001 certification and for non-manufacturing companies to implement an equivalent level of environmental management in their operations. During FY2016, we implemented and supported initiatives such as the following at our overseas companies:

●In North America

・Sharing information about safety and health activities and enhancing management through site checks

Partnerships with AW Group companies in Japan

We host a semiannual Safety and Environment Liaison Conference together with AW Group companies in Japan to share information and exchange views on priority initiatives. We also invite expert speakers to conduct a variety of seminars.

●FY2016 priority initiatives・ Sharing information about environmental　accidents at other companies and taking steps　to prevent similar accidents from occurring

・ Sharing information about laws and regulations

At the Safety and Environment Liaison Conference

During FY2016, we will continue the above activities while working to enhance them through mutual refinement with overseas Group companies.

●In China

We shared information about safety and health management activities at AW Tianjin and carried out a site check.

We held a work risk assessment information session at AWNC.

・Sharing information about laws and regulations related to safety and the environment

●In Asia

・Supporting safety- and environment-related operations at newly opened facilities

●In Europe

・Sharing information about safety and environmental activities and enhancing management through site checks

31


Partnerships with suppliers

We published the Aisin Group Green Procurement Guidelines (2nd Edition) on March 31, 2017, to implement environmental management activities that include our suppliers.We will be conducting inspections based on these Guidelines to yield improvements in the environmental conservation practices of suppliers that have not yet received ISO certification and that do not currently have a certification plan. These assessments effectively serve as environmental performance inspections.●Green Procurement Guidelines

●Conducting environmental performance inspections

Four core activities of Green Procurement Guidelines（1）Building and maintaining an environmental management system　・Building an environmental management system on par with ISO 14001.

（2）Managing environmentally harmful substances　・Managing parts and raw materials used in products (ATs and car

navigation systems)　・Managing auxiliary materials such as grease and chemical substances

（3）Pursuing environmental initiatives related to business activities　・Complying with environmental laws　・Improving environmental performance

（4）Conducting environmental performance inspections of suppliers

(1)Inspection focusing on companies’ environmental risk management and environmental perfor-mance

(2)Assessment of the state of EMS development through on-site inspections and guidance in pollu-tion prevention activities

32


(Fiscal Year)2014

39.5

2015 2016

34.230.5

2001

8.9

2002

6.3

2003

2.1

2004

１.9

2005

１.1

2006

１.3

2007

１.4

2008

16.8

2009

15.9

2010

16.3

2012

45.2

2013

47.0

2011

30.3

(ton par year)50.0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

4.2

Preliminary Chemical Evaluation and Management Systems: Example Using Greases and Chemical Substances

Chemicals Reduction Activities

Examine introductionof new grease

and chemical substances

Preliminary evaluation of newgrease or chemical substance

While chemical substances provide numerous conveniences in our corporate activities, they also account for some of the environmental impacts of our operations. We strive to minimize the environmental impacts of chemical substances while taking advantage of the benefits they offer.

Sections of the company that plan to use new greases or chemical substances apply in advance to do so after taking such steps as checking applicable laws based on the relevant material safety datasheet (SDS) and testing whether the new material is amenable to removal from wastewater streams during treatment. Next, the Environmental Management Section conducts a comprehensive evaluation including the material’s impact on the human body and the environment. In this way, only approved greases and chemical substance are used in the company.

We have established annual targets for reducing chemical substance use and successfully lowered PRTR target substance emissions. Despite the challenges posed by increasing production volume and a trend toward increases in the variety and volume of chemical substances used, we will strive to achieve further reductions in the future.

PRTR chemical substance release

4.2 Management of Chemicals

•SDS data•Legal regulations•Banned substances•Environmental impact•Wastewater treatment test

List of approved substances

Approvedsubstances only

Register of approved greases and chemical substances

Circumstances from which it was not avoided to use the negative environmental impact material to make an environment friendly product, We research and develop an alternative material and the elimination technology, and try the negative environmental impact material decrease.

33


Anjo

Okazaki

Tahara

Unit：ton

Okazaki east

Gamagori

Release / Transfer by plants, substance

Substance TotalOn-site

decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption


decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption


decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption


decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption


decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption

Machinery & Tools Dept., and Prototype Dept., are not indicated here, due to their annual amounts of PRTR substances are not less than 1 ton.

PRTR chemical substances overview　－FY2016－Our FY2016’s amounts of PRTR chemical substances (substances handled in volumes of 1 ton or greater) release/transfer are as follows.

Off-site transfer

55.4 tonAir

30.5 ton

Public water0.0 ton

On-site decontamination

12.4 ton

On-site consumption346.7 ton445.0 ton

Volume of PRTR target substances handled

Total amounts

0.40.0010.001

ー0.00210.1

0.00010.0001

ー

176.456.412.91.64.8

39.612.30.99.4

ーーーーーーーーー

ーーー

1.6ーーーー

1.4

17656.39912.899

04.798

012.3

0.89990

ーーーーー

29.5ーー

8.0

0.0290.0001

0ー

0.0002ー

0.0001ー

18.05.61.30.90.50.41.16.0

ーーーーーーーー

ーーー

0.9ー

0.4ー

0.6

17.9715.5999

1.30

0.49980

1.09990

ーーーーーーー

5.4

0.1710.0001

00.00020.00010.0003

ー

14.24.41.00.40.97.2

10.5

ーーーーーーー

ーーーーーー

1.3

14.0294.3999

10.39980.89997.1997

0

ーーーーーー

9.2

23.5ー

38.53.9

ーー

ー0.6

00

153.3

0.0002ー

8.94.7

ーー

ー0.7

8.89980

ー4.0

TolueneXylene

Ethylbenzene2-Aminoethanol

BenzeneStyrene

1,2,4-TrimethylbenzeneMethylnaphthalene

N,N-Dicyclohexylamine

TolueneXylene

Ethylbenzene2-Aminoethanol

Benzene2-(Dimethylamino)ethyl methacrylate

1,2,4-TrimethylbenzeneN,N-Dicyclohexylamine

TolueneXylene

EthylbenzeneBenzene

1,2,4-TrimethylbenzeneMethylnaphthalene

N,N-Dicyclohexylamine

StyreneN,N-Dicyclohexylamine

MethylnaphthaleneN,N-Dicyclohexylamine

Kira


decontamination

Off-siteTransfer

ReleaseWaterAir

Consumption

ー5.0 ー 5.0 0ーN,N-Dicyclohexylamine

34


Information disclosure

Aisin AW's head office began submitting environmental reports to public authorities in January 1999. Since that time it has regularly submitted reports and worked on further countermeasures.Starting in June 2001, the company has been holding informal meetings with local residents and public authorities. At these meetings, which are held periodically each year, Aisin AW provides information about its ongoing efforts to improve soil and groundwater pollution countermeasures.

At the end of 1993, Aisin AW completely stopped using organic chlorine solvents that pollute soil and groundwater, such as trichloroethylene and 1.1.1-trichloroethane. Since then we have conducted soil and groundwater investigations at all our plants where these solvents had been used. We then examined the most effective solutions for rehabilitating our head plant after pollution was detected there, and implemented measures to repair the environmental damage.

Dealing with Soil and Groundwater Problems4.3

No history of organic chlorine solvent use

Head Plant Average levelＮＤ～０.０２０.０３ＮＤ～０.０２０.０４

Investigation Results and Addressing Problems

Decontamination in progresshas been used

Past UsageOffice Current Condition Detected substance

Cis-1.2-dichloroethylenenone

No influence to soil and surrounding area.has been used

Impact on AreasHead PlantTahara Plant

Gamagori PlantOkazaki Plant

Okazaki East PlantAWQUIS JAPAN

These showed that levels of organic chlorine exceeded environmental standards only within the compound of our head plant. So we then conducted a more detailed investigation and used the results to develop measures according to a cleanup plan. In addition we reported the pollution to the local government.We completed the collection of gas from the organic chlorine solvent that had penetrated the soil using the vacuum gas extraction method. Reflecting the fact that our first priority in dealing with ground water problems is to keep affected water from flowing off the premises, we have installed a pumping well near the boundary of our land, downstream of the ground water sources, as well as a facility for purifying ground water using an air stripping method. Along with these efforts, we continue to measure and continuously monitor the affected soil areas.

*1 Decontamination in progress: Tests showed that contamination levels here exceed environmental standards. These areas are currently undergoing groundwater purification.

*2 Tahara Plant: The chemical 1.1.1-trichloroethane was used at Tahara Plant for measurement for one year before its use was stopped completely in July 1993. However, since this chemical was used and stored on the second floor of the plant, there were no effects on soil and surrounding environment.

*3 Gamagori Plant: None of the toxic substances defined in the Agricultural Land-Soil Pollution Prevention Law were detected when Aisin AW conducted a site survey in accordance with that act at the time of the plant's acquisition in December 2003. A total volume of 50 liters of trichloroethylene and dichloromethane were used in the cleaning of some molds during the period from 1973 to 1992.

Trichloroethylene*1

*2

*3ND: Not detectedNo other organic chlorine chemical Solvents were detected.

Unit: mg/l

35


Cross-sectional view

Lining

Concrete

Example measures taken foran oil wastewater relay tank

Preventing underground seepage

Aisin AW has been installing linings in catch basins and relay tanks consisting of underground pits in an effort to prevent soil pollution caused by underground seepage of oils and fats. We completed these efforts for all 88 existing facilities in May 2008. New facilities are required to incorporate these specifications from the design stage.Starting in fiscal 2011, we have been focusing on making buried plumbing visible under the three-year plan.

Cross-sectional view

ConcreteCross-sectional view Work photograph

Iron hatch

Concrete

Pipes have been installed in concrete pits, allowing visual inspection and lowering the risk of soil pollution.

The pipe is buried underground, raising the risk of soil pollution.

Soil Soil

Example countermeasure designed to facilitate visual inspection of underground pipes

Before After

Pipe Pipe

36


Elimination of Ozone-depleting Substances

Introduction of Clean Fuels

Reducing Toxic Gas Emissions

Measures to Control and Eliminate Emissions of Toxic Substances

~ Head Plant incinerator ~Waste Disposal and Public Cleansing LawNon-compliance with “Standards for exhaust gas processing facilities” which strengthens the guidelines for controlling dioxin emissions from industrial waste incinerators.

November 30, 2002Complete shut-down of

the incinerator

Head Plant incinerator

To minimize emissions of SOx we use LNG as the fuel in almost all of our incinerating facilities in the company.(The only exceptions are the emergency electric generators)

We completely eliminated the use of CFCs and 1.1.1-Trichloroethane (Methyl chlorfor) at the end of 1993 by switching to alternatives.

０

5０

100tons/year

year

５６４２

１５

０

１９９１１９９２１９９３１９９４

Trend in use of CFCs and 1.1.1-Trichloroethane

To reduce air pollution, Aisin AW is promoting measures such as upgrading facilities to use state-of-the-art technology, eliminating the use of toxic materials, and making use of cleaner fuels.

To prevent the generation of toxic gases from our incinerators, we have implemented emissions controls. Through careful combustion control and exhaust gas treatment technology we have eliminated harmful gases such as hydrogen chloride gas and dioxin, We also conduct continuous measuring and monitoring to ensure compliance with emission standards.

Air Quality Efforts4.4

〔岡崎工場焼却炉〕

~ Okazaki Plant incinerator ~Due to outdated equipment

March 1, 2015Complete shut-down

of the incinerator

37


Rainwater treatment system

Treated wastewater recycling and abnormal wastewater/raw water return system

In addition to batch processing of oil-contaminated wastewater, production process wastewater, and domestic wastewater discharged by company facilities at a general water treatment plant, AW is working to prevent water pollution by installing equipment for separating oil from rainwater runoff at production plants. The company also recycles some processed water, circulating it for use in industrial processes in an effort to conserve water resources.

1. Treated water is recycled and used in industrial processes, to water grass and plants, etc.2. When abnormal wastewater is detected, the system automatically stops all discharge immediately and returns the abnormal

AW collects all rainwater runoff at its production plants for storage in regulating reservoirs after all oil content has been separated out. The system is designed to prevent oil from flowing into surrounding rivers.

Regulatingreservoir

WC

In the unlikely event that treated water exceeding control values were to be discharged, recovery pumps are capable of recovering all such water before it is released.

●Effluent recovery system

P

Treatmentplant

●Oil/water separation tank

Runoff water from rainfallingat AW facilities is not

released directly intosurrounding rivers.

Reuse (as water for industrial processes)

Water diluted with M/C coolant

Reuse (domestic treated water)

Automatic instrumentscontinuouslymeasure water quality.

Wastewater

Water forwatering grassand plants

M/C WC

Water foruse intoilets

Treatment plant

Abnormalwastewater

Carppond

Discharged into river

PH COD Nitrogen Phosphorus

Domestic wastewater

Industrial wastewater

Senser

When a sensor detects oil in the water, the oil is recovered instead of traveling on to the treatment plant.

Conserving Water Quality4.5

Industrialsystems

In the unlikely event that oil were to be discharged into a regulating reservoir, floating oil recovery pumps recover the oil before it is released.

●Oil/water separation tank upstream of the regulating reservoir

38


Biotope of Okazaki East Plant

The biotope at Okazaki East Plant is home to a variety of local animal and plant life clustered around a creek carrying water discharged from the plant’s wastewater treatment facility. The plant has released Japanese killifish and dark chub, species that live in downstream rivers, into the creek and continues to confirm that the newcomers are not having a harmful effect on the host ecosystem.

●Okazaki East Plant

●Wastewater treatment facility

Partnerships with local groups

To contribute to the conservation of local communities’ water resources, we regularly invite local fishing cooperatives to meetings where we introduce them to related conservation efforts being undertaken by the company and solicit their wishes and requests.

Water flows out from this point into the river.

Water discharged from the wastewater treatment plant

Japanese killifish Dark chub

●Japanese killifish and dark chub swim energetically about in the biotope’s creek.

Meeting with members of the Aburagafuchi fishery cooperative association

Discussion with members of the Aburagafuchi fishery cooperative association

39


Location Standard limit Measured value Evaluation

Okazaki Plant


No.1

No.2

No.3

No.4

No.5

57

56

57

55

58

○

○

○

○

○

75

No.1

No.2

No.3

No.4

42

47

49

41

○

○

○

○

60

No.1

No.2

No.3

No.4

No.5

No.6

No.7

※

49

47

52

61

50

52

51

○

○

○

○

○

○

○

60

75

60

No.1

No.2

No.3

No.4

No.5

No.6

No.7

No.8

No.9

No.10

No.11

49

61

63

48

61

56

57

51

47

49

47

○

○

○

○

○

○

○

○

○

○

○

70

No.1

No.2

No.3

No.4

No.5

45

37

45

46

44

○

○

○

○

○

60


Tahara Plant



Noise Pollution Countermeasures

Noise Pollution Results

Covers were installed toreduce fan noise.

Efforts to combat noise pollution include mechanisms to ensure not only evaluations at the planning stage for equipment and facilities whose impact may be felt at the boundaries of plant premises but also reliable re-evaluations when systems are updated or otherwise modified.

*Tables indicate daytime standard limits. Unit: dB(A)Standard limits vary according to the agreement made withthe city in which each factory is located.

*Daytime (8:00 am to 7:00 pm) measurement data shown.*Okazaki: Daytime (8:30 am to 5 :00 pm) *Tahara: Daytime (6:00 am to 10:00 pm)

Noise Pollution4.6Aisin AW’s noise pollution measures focus primarily on prevention. Our first priority is to address the source of noise, so we design all our facilities and machinery with low-noise specifications from the planning stage. We are also working to reduce the noise level in work areas by installing soundproofing materials and structures on equipment and machinery as necessary. Finally, we regularly take readings of noise levels at the boundaries of plant premises to ensure that noise levels meet environmental regulations.

Noise pollution countermeasures implemented when cleaning towers were updated

*Along National Route 23 (outside the scope of the Pollution Prevention Agreement since fiscal 2011)

Gamagori Plant

Head Plant Okazaki East Plant

Panels were installed on smoke outlets to reduce noise.

Measures to dampen noise from a dynamo room exhaust port

40


Creating Landscapes of Green and Flowers

●To promote Harmony and goodwill with local residents●To create safe, comfortable and healthy workplaces for employees●To promote communication between all employees●To improve the company's image

Awards

【Head Plant】【Gamagori Plant】

April 1985

June 1985

June 1989

Oct. 1997

Oct. 1998

Nov. 2000

8th Aichi Prefecture Factory Greening Contest Special Prize

President of the Japan Greening Center Award, for greening of industrial plants

Commendation from the Director-General of the Bureau of Nagoya Trade and Industry

Letter of appreciation from the Mayor of Anjo, for contributions to beautifying the environment

Minister for International Trade and Industry Award for the Greening of Industrial Facilities

Chief of Agricultural Production Bureau Award for the National Flower Town Creation Contest

Minister for International Trade and Industry Award for the Greening ofIndustrial Facilities

Chief of Agricultural Production Bureau Award for the National FlowerTown Creation Contest

Greening Initiatives4.7

Based on the four basic concepts listed above, Aisin AW develops attractive parks and gardens and opens them to the local community; it holds a flower festival with the participation of all employees; it is working to protect natural forest on the company's land; and it is implementing a "five-year greening plan" at all of its plants. In acknowledgement of these efforts we received the following awards:

Total at all AW facilities: 52 flower beds●Flower Festival (with participation by all employees)

41


【Okazaki Plant】

【Tahara Plant】

【Okazaki East Plant】

We added new break areas as one way to increase employee satisfaction. Designed to evoke parks and gardens so as to provide an environment that is conducive to employee relaxation, these areas incorporate trees and grass, exercise and health equipment, and other amenities.

Contact with Nature (Installation of a Break Area in a “Green” Setting)

42


Seasonal Flowers

Plants such as cherries and azaleas in the spring and pansies in the fall enable employees and visitors alike enjoy the changing of the seasons.

Relaxing by the Water (developing a park-like biotope)

We built a walking path and a grass plaza near a rainwater regulation pond at the Head Office Plant to serve as a place for improving communication among employees. We planted flowers and fruit trees so that employees could experience the passing of the seasons in the setting of a park-like biotope.

Rooftop Gardening

Rooftop gardening at the Monozukuri Center (approximately 2,000 square meters) was recognized as Aichi Prefecture’s first rooftop greenbelt in 2005. Rooftop gardening helps reduce air conditioning energy use.

【View from the southern side of the third floor】A grassy relaxation plaza lies in the center, and a walking path rings the pond (about 250 meters in length).

【View toward the west from the grass plaza】Visitors can see the pond in its entirety as well as Route 23. Benches in the plaza provide seating for about 30 people.

【Lotus flower at the Okazaki East Plant】*Lotus flowers bloomed in the biotope located on the plant’s grounds.

【Cherry trees at Headquarters】【Azaleas at the Okazaki Plant’s employee parking lot】

【Azaleas at the Gamagori Plant’s employee parking lot】

43


Contribution to Society Activities5.

■Facilitating local development

Approach to Activities

Priorities

Seeking to earn the admiration and trust of society by pursuing harmony with local communities

We focus on local issues and work to craft policies for contributing to our communities.We work with local communities to pursue activities that fit local circumstances.We foster the development of each employee’s independence and undertake activities that take advantage of their skills and expertise.

１．２．３．

Facilitating local developmentWe work actively with communities to enable local residents to enjoy richer and more fulfilling lives.Fostering the development of youthWe take pride in contributing to the development of our next generation of leaders.Protecting the natural environmentWe are actively involved with local communities to protect nature and the environment.

Coexistingwith local

communities

Facilitatinglocal

developmentFostering thedevelopment

of youth

Protectingthe natural

environment

●

●

●

●Participating in local events・We sponsor a variety of local events in order to encourage participation.

・We offer support through donations to disaster-stricken areas and sales of products produced in those areas.

●Support for reconstruction in earthquake -stricken areas

・We help organize local events.

Sponsorship of the Anjo Tanabata Festival

Support for the “Down the YAHAGI River” event A program to support reconstruction at a company event

Donation of field mustard seeds to be used in the Field Mustard Festival

44

AISIN AW ENVIRONMENTAL REPORT 2017 5.Contribution to Society Activities

■ Fostering the development of youth

■ Protecting the natural environment

■ Other activities・Monitoring of traffic safety・Zero-waste activities in partnership with local groups

「Aburagafuchi Cleanup Day」 Seaside Beach Cleanup on the Atsumi Peninsula

A field trip to view plant and animal life The AW Cup

Workplace experience educationA Monozukuri class

・We work with local groups to host Monozukuri classes that teach elementary school students about the joy and excitement of MONOZUKURI.

●Monozukuri classes ●Workplace experience education・We accept students from a local middle school to teach them about the meaning and difficulty of working as an adult by helping them experience what it’s like to actually work at a job.

・We visit local elementary schools and teach students about the importance of the environment through a yearlong, experience-based program.

●Environmental education program・We invite basketball teams from local middle schools to participate in a competition to help build the skills of participating schools.

●Sports classes

・We actively participate in cleanup activities in nearby lakes and marshes.

●Program to eliminate trash ・We participate in regular beach beautification activities while encouraging employee interactions with local residents.

Planting field mustard seeds in Tahara

・We’re helping beautify local scenery by planting seasonal flowers on idle land.

●Landscape beautification activities

Aisin AW get word of appreciation from local residents through various of activities.We appreciate local community and work actively while listening from local residents' voice.

45

AISIN AW ENVIRONMENTAL REPORT 2017 5.Contribution to Society Activities

* Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.* ND (“not detected,” i.e. level is below that detectable by measuring equipment)* Figures in brackets are daily average values.

Items Control Limits(incl. agreed limits)

Measured levels

Hydrogen ion concentration (pH)

Biochemical Oxygen Demand (BOD)

Chemical Oxygen Demand (COD)

Suspended Solids (SS)

Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Total Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Max. Average

Facility Names Control Limits(incl. agreed limits)

Small single-pass boilers

Items

SOｘ

NOｘ

SOｘ

Smoke and dust

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Dioxins

Max. Average

Boilers (cold and hot water generators)

Heating furnaces

Aluminum Melting furnace

Measured levels

Environmental Performance DataResult for the period from April 2016 to March 2017

Address: 10 Takane, Fujii-cho, Anjo City, Aichi 444-1192 JapanMajor products: Automatic transmissionsNo. of employees: 9,615

Head Plant

* Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; dioxin in ng-TEQ/m3N.* ND (“not detected,” i.e. level is below that detectable by measuring equipment)

Air Quality

Water Quality

6.0～8.0

10

10

10

2

0.5

0.5

1

3

3

0.1

5

200

10

1

1.95

120

３.０７

０.１０

0.20

１４４

３.８４

０.２０

5

7.2

0.9

3.7

ND

ND

ND

ND

0.02

ND

ND

ND

ND

ND

2.00

0.08

7.0/7.5

4.3

5.6

3.00

ND

ND

ND

0.03

ND

ND

ND

ND

ND

6.50

0.25

ND

39

ND

ND

ND

14

ND

0.012

0.034

ND

72

ND

ND

ND

32

ND

0.067

0.034

46

AISIN AW ENVIRONMENTAL REPORT 2017 Company Out l ine

* Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.* ND (“not detected,” i.e. level is below that detectable by measuring equipment)





Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency

Okazaki Plant

ItemsMeasured levels

Max. Average

Control Limits(incl. agreed limits)

Water Quality

Air Quality

Address: 6-18 Harayama, Oka-cho, OkazakiCity, Aichi 444-8546 JapanMajor products: Automatic transmissions/ Voice navigation systems/ EUCs for ATs(Electronic Control Unit)No. of employees: 3,694

Smoke and dust

Smoke and dustHeating furnaces


Facility NamesMeasured levels

ItemsMax. Average

Control Limits(incl. agreed limits)

0.1

0.1* Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; hydrogen chloride in mg/m3N; dioxin in ng-TEQ/m3N.* ND (“not detected,” i.e. level is below that detectable by measuring equipment)

5.8～8.6

10

10

10

2

0.5

0.5

1.0

3

3

0.1

1

300

15

2

20 degrees min

7.5

0.5

4.0

ND

ND

ND

0.01

ND

ND

ND

ND

ND

ND

0.82

0.23

100

7.0/7.8

1.5

5.4

ND

ND

ND

0.03

0.15

0.10

ND

ND

ND

ND

3.60

0.43

100

ND

ND

ND

ND

47


Tahara Plant

Water Quality

Air Quality

Address: 2-2 Midorigahama, Tahara City,Aichi 441-3401 JapanMajor products: Automatic transmissionsNo. of employees: 3,521

* Regulations governing total SOx emissions apply only to Aisin’s “boiler (cooling water generator).” Maximum and average emissions were 0.228 m3N/H and 0.213 m3N/H, respectively, compared to a regulatory limit of 2.50 m3N/H.

* Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.* ND (“not detected,” i.e. level is below that detectable by measuring equipment)* Figures in brackets are daily average values.

* Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; dioxin in ng-TEQ/m3N.





Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

6.0～8.5

－

20（15）

20（15）

1

0.5

0.5

1

5

5

2

15

（1500）

15

2


Measured levels

Max. Average


Measured levels

Boiler (chilled and hot water generators)

Boilers (cold and hot water generators

Aluminum Melting furnace

Items

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Dioxins

Max. Average

160

0.34

0.2

160

0.89

0.2

160

0.42

0.2

5

25

ND

ND

72.5

0.062

0.001

24

0.006

0.002

0.001

32

ND

ND

85

0.064

0.001

29

0.023

0.005

0.037

7.2

0.7

4.1

ND

ND

ND

ND

0.09

ND

ND

ND

ND

8

1.4

0.20

6.6/7.8

5.2

8.6

1.00

ND

ND

ND

0.14

0.2

0.3

0.04

ND

110

12.0

0.46

48






Colon bacilli

* Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N* ND (“not detected,” i.e. level is below that detectable by measuring equipment)


Facility Names Control Limits(incl. agreed limits) Average

ＳＯｘ

ＮＯｘ

ＳＯｘ

Smoke and dust

Measured levels


Measured levels

Max.

Gamagori Plant

ItemsMax.

Boilers (cold and hot water generators

Average

Address: 24-3 Hama-cho, Gamagori City, Aichi 443-0036 JapanMajor products: Automatic transmission componentsNo. of employees: 607

Water Quality

Air Quality


5.0～9.0

10

－

20

3,000

2.22

144

1.07

0.30

6.9

6.2

7.1

ND

ND

6.6/7.5

23

16.0

ND

ND

ND

66

ND

0.008

ND

76

ND

0.015

49


Address: 1-1 Oiri, Obata-cho,Okazaki City, Aichi 444-3502 JapanMajor products: Automatic transmissions/ EV and Hybrid Drive SystemsNo. of employees: 2,567



Measured levels

Max. Average





Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency

* Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N* ND (“not detected,” i.e. level is below that detectable by measuring equipment)


ItemsMax. Average

Measured levels

Smoke and dust

Smoke and dustHeating furnaces


Water Quality

Okazaki East Plant

Air Quality

5.8～8.6

10

10

10

2

0.5

0.5

1

3

3

0.1

1

300

15

2

20 degrees min

ND

ND

ND

ND

0.1

0.1

7.5

0.6

2.2

ND

ND

ND

ND

ND

ND

ND

ND

ND

ND

1.5

ND

100

7.0-7.8

1.9

3.8

ND

ND

ND

ND

ND

ND

ND

ND

ND

ND

2.1

0.03

100

50


Company Outline

TEL : +81-566-73-3181FAX : +81-566-73-1507

Inquiries Safety & Environment Department

Established

Capital

President

Sales

Major Products

No. of employees

Address

May 15, 1969

26.48 billion yen

Kazuhisa Ozaki

Automatic transmissions,　Hybrid transmissions　Car navigation systems

10 Takane, Fujii-cho, Anjo City, Aichi 444-1192 Japan Tel: +81-566-73-1111

This graphic and slogan, designed by our employees, is a unique symbol of our environmental commitment.The heart shape formed by the hands around the earth represents our care for the earth.

Aisin AW Environment Symbol

All Together in Protecting the Environment

This report is based mainly on the results of our environmental protection efforts in FY2016(Apr. 2016 - Mar. 2017).

Date of publication: October 2017Next planned report: Spring of 2018 (June)

Consolidated: ¥1,431.1 billion (fiscal year ended March 31, 2017)Unconsolidated: ¥1,204.5 billion (fiscal year ended March 31, 2017)

Consolidated: 29,977 (as of March 31, 2017)Unconsolidated: 17,590 (as of March 31, 2017)

51


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