Biodiversity Conservation

NSK’s Approach
Main Initiatives

NSK’s Approach

To contribute to our nature positivity^*1 goal, the NSK Group has established the NSK Biodiversity Guidelines, ^*2 which set forth basic policies and action guidelines for biodiversity conservation. We strive to understand the impact of our business activities on biodiversity and work to suppress negative impacts and promote positive ones.

The main raw material for the NSK Group's primary products, bearings, is special steel made from recycled steel scrap. After being used by customers, the bearings become steel scrap again and are used as raw materials for steelmaking. Therefore, the dependence and impact on biodiversity at each stage, from the procurement of parts and raw materials to production at the NSK Group, use by customers, and disposal, is not significant. However, the NSK Group recognizes that a wide range of activities relate to biodiversity. Accordingly, we are working to ensure no net loss^*3 of biodiversity by minimizing impacts and expanding contributions, including efforts to prevent deforestation^*4 in procurement and production activities.

*1: Nature positivity: Refers to putting nature on a path to recovery, halting and reversing biodiversity loss.
*2: NSK Biodiversity Guidelines: Established on October 5, 2010, with the approval of the President and CEO, after being deliberated by the relevant officers at the Global Environment Protection Committee meeting in August 2010.
*3: No net loss: Ensuring sufficient compensatory measures are in place to offset the decrease in biodiversity caused by human activities, resulting in no net loss.
*4: Deforestation: Refers to the loss of natural forests through their conversion to non-forest land or plantations or through continuous degradation.

NSK Biodiversity Guidelines

Basic Policy

The NSK Group recognizes the importance of biodiversity, and understands the relationship between our business activities and the ecosystem. We aim to reduce our impact on the environment by creating systems and initiatives that ensure biodiversity is conserved.

Established October 5, 2010 NSK Ltd.

Action Agenda

1. Research and Development
We will contribute to the conservation of biodiversity by developing products that save energy and resources.

2. Procurement and Purchasing
We will contribute to the conservation of biodiversity throughout the supply chain when procuring main materials, sub-materials, and packaging/packaging materials. We will promote the purchase of the environmentally-friendly products, and consider the conservation of biodiversity in product selection criteria.

3. Manufacturing and Logistics
We will minimize the impact of our production on biodiversity by reducing consumption of energy and resources, and emission of environmentally harmful substances.

4. Plant and Office Grounds
We will consider the impact on the ecosystem when acquiring land for our places of business and during greening initiatives.

5. Social Contribution Activities
We will perform social contribution initiatives as a member of international society, and value our collaboration with public and private institutions.

6. Communications
We will actively disclose information on biodiversity-related initiatives to persons both inside and outside the company. We will heighten employee awareness of biodiversity-related issues, and constantly work to improve the quality and efficiency of initiatives.

Established October 5, 2010 NSK Ltd.

Main Initiatives

Overview of Main Biodiversity Initiatives

Action agenda classification	Main initiatives
1. Research and development	Creating Environmentally Friendly Products
2. Procurement and purchasing	Climate Change Measures Resource Conservation and Recycling Measures Reducing Use of Environmentally Harmful Substances
3. Manufacturing and logistics
4. Plant and office grounds	Protecting Endangered Species Conducting Biodiversity Risk Assessments (IBAT Analysis) Conducting environmental impact assessments during plant construction
5. Social contribution activities	Preservation of Satoyama Forest Areas Tree Planting Marine Plastic Reduction Activities (Cleanup Activities) Efforts to Remove Specific Invasive Species Protecting Endangered Species Donating to organizations
6. Communications	Cooperation with NPOs, local governments, and local residents and organizations Inclusion in internal and external communications

NSK's Business and Its Relationship with Biodiversity

Assessing the Relationship with Biodiversity

Using the tool ENCORE^* to assess the relationship with biodiversity, we analyzed the dependence and impact of NSK's business on ecosystem services. The results showed no significant dependencies on ecosystem services for the business sectors to which the NSK Group belongs. It also revealed that the potential impacts of the Group's business activities are relatively large in terms of GHG emissions, soil pollutants, solid waste, water pollutants, and water use. We plan to advance our analysis and evaluation further in the future.

*ENCORE: Exploring Natural Capital Opportunities, Risks and Exposure. Jointly developed by the Natural Capital Finance Alliance (NCFA, an international financial industry group in the field of natural capital) and the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC). A tool to visualize the impact of environmental changes on the economy.

Biodiversity Risk Assessments (IBAT*1 Analysis)

A survey of protected areas within a three-kilometer radius of all NSK Group production sites revealed one IUCN Category Ib^*2 site and two Ramsar wetland sites. (The survey encompassed World Natural Heritage Sites; IUCN Categories I, II, and III; and Ramsar Sites) We do our utmost to care for biodiversity at these sites.

For plants located near wetlands or water sources, such as those around Lake Biwa, we recognize that the impact of water pollution is a particularly important risk in terms of biodiversity conservation. Therefore, we are strengthening our efforts to preserve water quality, such as by installing oil film detectors in the rainwater drainage paths within the plants to prevent even the slightest amount of oil from escaping the premises.

*1 IBAT: Integrated Biodiversity Assessment Tool. A tool provided by BirdLife International, Conservation International, IUCN (International Union for Conservation of Nature and Natural Resources), and UNEP-WCMC (UN Environment Programme World Conservation Monitoring Centre) to help businesses assess biodiversity risks.

*2 IUCN Ib: A protected area management category defined by the International Union for Conservation of Nature and Natural Resources. IUCN Ib refers to wilderness areas.

Expanding Social Contribution Activities Related to Biodiversity Conservation