NSK - Investors/Financial information Annual Report 2005

Under the concept of CSR (Corporate Social Responsibility), a company seeks a balanced approach that focuses not only on earnings, but also on responsibilities towards the global environment and society. As a result, it can achieve success and development in partnership with society. NSK has consistently worked toward this ideal to realize our corporate philosophy, and we have accumulated a proud record of achievement through our social initiatives.

NSK and Society

The Foundation’s 2005
R&D grant-award ceremony

Supporting the Advancement of Mechatronics
In 1988, NSK established the Electro-mechanic Technology Advancing Foundation to contribute to the advancement of mechanical technology. For 18 years, this organization has supported work in this field, which has contributed to progress in many industries.

The Foundation provides grants for mechatronics R&D at universities. It also sponsors technology exchange programs, lectures, research seminars and other events for young researchers. To date, it has provided 379 grants and supported 158 technology exchange programs and lectures. In fiscal 2005, it provided 24 research grants, including a project by Assistant Professor Isobe of the University of Tsukuba’s graduate school to develop a feed-forward control system for robot mechanisms using integrated logic.

Traffic safety seminars for local children (Brazil)

Expanding CSR Activities by NSK Brazil
CSR activities are an essential aspect of global corporate citizenship for NSK subsidiaries and affiliates in various countries. For example, NSK Brazil has been contributing to local communities with a campaign called “Internal Weeks” since 2001.

In one of the “Internal Week” activities, NSK employees collect food for donation to various institutions. Last year, 11 tons of food was collected. Another activity is charity sales of recycled goods donated by employees’ families. Throughout the year, there are traffic safety campaigns in cities, traffic and fire safety seminars for children, nutritional instruction programs, health-check services, factory tours and social interaction with disabled people.

High Valuation from Representative SRI Indices

In recent years, there has been growing support for the concept of socially responsible investment, whereby companies are chosen for investment on the basis of corporate governance, response to environmental problems, social contribution activities and other aspects of corporate social responsibility. NSK has earned considerable recognition for its efforts in these areas, leading to its inclusion in internationally respected indices, including the Dow Jones Sustainability World Indexes, the FTSE4Good Global Benchmark Index and the Ethibel Sustainability Indexes. NSK is also listed in Japan’s first socially responsible investment index, the Morningstar Socially Responsible Investment Index.

http://www.sustainability-indexes.com

http://www.ftse.com/index.jsp

http://www.ethibel.org/index.html

http://www.morningstar.co.jp/sri/index.htm

*For more information on NSK’s social and environmental activities, please refer to the NSK CSR Report 2006.

NSK and the Global Environment

NSK Environmental Policy

Our commitment to environmental management forms the basis of our existence and our pursuits. We are determined to take independent and assertive actions.

1. Overall Goals

To create harmony between people and the Earth by developing environmentally friendly manufacturing processes and technology, such as our tribology friction control technology, using the full efforts of all employees and all divisions in our company.

2. Reduction of Negative Environmental Impact

To establish and continually improve the environmental management system, comply with regulations, prevent pollution and reduce environmental impact.

3. Contribution to Societies

To be a good global corporate citizen, contributing to the social development of countries and communities where we operate, and also to advance the realization of affluent societies that are in harmony with the environment.

Developing Environment-friendly Products
Friction inevitably occurs whenever machines are in motion. In most cases, the result is a loss of energy. NSK is applying its knowledge of tribology to develop products to conserve energy by reducing friction. In fiscal 2005, we developed 21 products and production technologies that meet our environmental protection standards, for a total of 129. For example, our vacuum cleaner motor bearings halve the friction of high-speed rotation, saving 4–10 watts per cleaner. We have also tripled their life compared with earlier products.

NSK will continue to expand sales of these environment-friendly products worldwide.

Early Compliance with RoHS Directive
The European Union (EU) is tightening its environmental regulations, and in July 2006 it enacted the RoHS Directive, which restricts the use of certain hazardous substances in electrical and electronic equipment. Compliance with the RoHS Directive is an important priority for NSK as a manufacturer of machinery components that are used throughout the world. Our goal was to achieve compliance in advance of the deadline of the directive, and by June 2005 we had eliminated the use of all six substances covered by the directive.

July 2007 will see the full implementation of the ELV Directive for hazardous substances in motor vehicles. NSK plans to also achieve compliance with this directive ahead of the scheduled deadline.

NSK Group Green Procurement Standards

Green Procurement

We are determined to ensure that our products contain no hazardous substances, and to make our products as environment friendly as possible. These goals cannot be achieved solely through our own efforts, however, and we need an approach that encompasses the entire supply chain. With the cooperation of our suppliers, we are implementing green procurement initiatives designed to eliminate the use of hazardous substances for raw materials and components and ensure that environmental concerns are consolidated.

In 2001, we distributed the “NSK Green Procurement Standards” to our suppliers giving detailed information on our general procurement policies and the management measures required. The standards have been progressively expanded and amended, and in February 2006, we published the fourth edition as “NSK Group Green Procurement Standards.”

Since March 2006, Green Procurement Seminars at five locations around Japan have informed suppliers and encouraged them to cooperate fully in our efforts.

We have published an English version of the green procurement standards and are extending these activities in incremental steps to our international business locations.


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Annual Report 2006