AISIN AW...AISIN AW strives to make effective use of natural resources and energy, and actively implements measures to minimize use of environmentally harmful substances. AISIN AW

ENVIRONMENTAL REPORT 2014AISIN AW

ENVIRONMENTAL REPORT 2014

Autumn Edition

Greetings

Environmental Management

Design and Development

Production

Environmental Protection Activities

Contribution to Society Activities

04

04

08

　09

10

　

11

11

12

13

15

17

18

18

23

24

27

29

31

31

34

36

38

39

41

42

45

47

52

Corporate Philosophy and Policies

Acquisition of ISO 14001

Environmental Education and Training

Environmental Accounting

1.

2.

3.

4.

5.

1.1.

1.2.

1.3.

1.4.

Automatic Transmissions

ECUs for A/Ts (Electronic Control Unit)

Navigation Systems

EV(Electric Vehicle) and Hybrid Drive Systems

Initiatives for reducing use of environmentally harmful substances

2.1.

2.2.

2.3.

2.4.

2.5.

Production Processes

Improving Distribution

Remanufacturing

Energy Conservation

Reducing Waste Products and Encouraging Zero Emissions

3.1.

3.2.

3.3.

3.4.

3.5.

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

4.1.

4.2.

4.3.

4.4.

4.5.

4.6.

4.7.

Environmental Performance Data

Company Outline

CONTENTS

02

AISIN AW ENVIRONMENTAL REPORT 2014

Thank you for taking the time to review the Autumn Edition of the Aisin AW Environmental Report 2014.

Surveying the worldwide automobile market, total sales of automobiles worldwide during the second half of the 2010s exceeded 100 million vehicles, and it is likely that vehicles with automatic transmissions accounted for half of the total volume. In light of the large number of automobiles in use around the world and their impact on the environment, I believe that contributing to the health of the environment by working to improve customers’ vehicles’ fuel efficiency and convenience through the supply of products such as automatic transmissions, hybrid transmissions, and navigation systems will only become more important.

Looking at our business activities, the entire Aisin Group has been pursuing a program of environmental protection activities since finalizing its Fifth Environmental Initiative Plan in fiscal 2011. In terms of both our products and our production operations, we will continue to contribute to the environment by working to curtail CO2 emissions, for example by making energy-saving improvements to production equipment and by consolidating product shipments. More detailed information about these and other initiatives can be found in this report, and I encourage you to review its contents and learn more about these important activities.

We have identified “Harmony with nature and society” as part of our management philosophy, and we will continue to contribute to society through a variety of activities and programs.

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

Mutsumi KawamotoPresident

AISIN AW Co., Ltd.October 2014

Message from the President

03

AISIN AW ENVIRONMENTAL REPORT 2014

Environmental Management1.Corporate Philosophy and Policies

Working For Harmony with Both Nature and Society

Environmental Policy

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

1.1

Satisfaction ofour employees

Satisfaction ofour customers

Respect forother culturesand forthe environment

Quality SupremacyWe aim to better serve our customers and contribute to society,while, at the same time, continuously growing our company.

We can only achieve this through having a body of outstanding peoplewho are motivated and fulfilled by their work.

Therefore, our people are our most valuable asset.

Respect for other cultures and for the environmentRespect the culture and laws of all the countries in which we carry out business.

At the same time, we pledge to respect the environment in all our business activitiesand in every product we develop.

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 Environ-

mental Management System through regularly reviews, as it implements the system according to plan.

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.

AISIN AW strives to make effective use of natural resources and energy, and actively implements measures to minimize use of environmentally

harmful substances.

AISIN AW clearly documents its Environmental Policy and ensures that all employees are thoroughly conversant with its details. It also urges

them to act on the letter and spirit of the policy.

AISIN AW publishes details of its environmental conservation activities, including its Environmental Policy.

04

AISIN AW ENVIRONMENTAL REPORT 2014 1.Environmental Management

In 2013, AISIN AW formulated a fiscal year plan and pursued activities in accordance with its 2013 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 one multistage AT model・Developed and began mass- production of two high-efficiency AT models

・Issuing annual LCA data reports to customers・Working to develop an integrated Group-wide LCA assessment system

Pursuing LCAassessments inpartnership with customers[Action target]

○・Completed arrangements for reporting for large, medium, compact, and CVT vehicles.・Participated in Aisin Group study group.

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

・Reducing CO2 emissions by avoiding inefficient and congested routes・Estimating fuel efficiency improvements to prepare for improved vehicle performance, completing design work in anticipation of implementing functionality, and building in functionality

・Developed and began mass- production of new products with functionality for avoiding inefficient and congested routes.・Developed and began mass- production of new products with functionality for improving fuel efficiency.

○

Buildinga recycling-

oriented society

Reduce by 40%compared to FY2003.

Reduce by 40.7%compared to FY2006.

・Pursuing the 3Rs activities for waste[Target defined in terms of production volume]

・Reducing the volume of scrap・Reducing the volume of machine filings・Reducing the quota of defective parts[ Target defined in terms of production volume]

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

・Reducing waste[Target defined in terms of unit revenue]

○


Reduced by 49.2%compared to FY2003.

Reduced by 44.5%compared to FY2006.

Reduced by 25.9%compared to FY2009. ○

・Reducing use of packaging materials・Expanding efforts to phase out rust- preventing bags across the organization・Improving packaging[Target defined in terms of unit revenue]

・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 transition to alternative materials for some product parts in order to reduce use of rare-earth elements.

・Expanding reuse of parts (three parts per year) ○・Began reusing certain component parts.

Category Goal FY2013 targetPrincipal initiatives FY2013 results Assessment


・IIncorporating energy savings considerations into existing and new equipment around an energy savings certification program

・Carrying out a program of activities to eradicate air leaks companywide and applying permanent measures to address this issue

・Adopting a compact, modular approach to power equipment

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

○Reduced by 33.7%compared to FY2001.

・Reducing distribution waste and losses・Pursuing mixed-load distribution with other companies

・Pursuing transport efficiency

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

Reduce by 9.4%compared to FY2006. ○Reduced by 9.4%

compared to FY2006.

Designing products tofacilitate more effectiveuse of resources[Action target]

Achievement of Environmental Program Plan Goals in FY2013

05


Building a societythat coexistswith nature

Develop and switch to alternative materials.

・Working to transition to lead-free products (to comply with the European ELV Directive)・Working to transition to PFOA-free products (to comply with U.S. regulations)

・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 switched to alternative materials. ○

Reduce by 27.7% compared to FY2008. ○Reduced by 36.0%

compared to FY2008.

・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 entailenvironmental risks such as noise, vibration, wastewater, andwater pollution

・Following up in a reliable manner on the transition away fromenvironmentally harmful substances in accordance with laws andcustomer requests

Undertaking biodiversity initiatives as a group

［Action target］

Enhancing and pursuing environmental education activities

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

○

○

・Participated in the Aisin Group Consolidated Environmental Symposium, which included all AW Group companies and attracted 35 participants from AW (June 26).

・Hosted and participated in workshops on processing of PCB wastes (August and November).

＊Both of these events were hosted by the Aisin Group.

①Reviewed the certification status of　 the Environmental Management System.②Found that 34 new suppliers had developed

environmental management systems.③Carried out on-site inspections at six

companies, all of which passed.④Carried out transitions based on laws and customer requests

in fiscal 2013.Transition to PFOA alternative materials: 2

・Offered environmental education programsthrough position-specific training (Marchthrough May: offered training for newemployees, skill trainees, newly appointedmanagers, and internal auditors).

・Held environmental seminars for workerswith environmental responsibilities at AW consolidated companies in Japan (in May and November)

・Held the Consolidated Safety & Environmental Liaison Conference for domestic AW Group companies in May and November and asked companies to apply lessons from All-Toyota environmental incidents and complaints and cooperate in efforts to prevent similar occurrences in the Group’s own operations.

○

○

○

○

・Provided information through the EnvironmentalReport (published in June and December).・Actively communicated with local residents.⇒Held local meetings with neighborhoodassociations as well as regular hearings inareas where our facilities are located, includingfor the Head Office, Okazaki and Okazaki East(with a joint meeting), and Tahara districts toreceive and disseminate information.⇒Held water environment meetings with variousgroups (Yahagi River Basin DevelopmentAssociation, Aburagafuchi Fishery Cooperative Association, etc.) (July, late November).

○

Environmental management

Category Goal FY2013 targetPrincipal initiatives FY2013 results Assessment

Enhancing global environmental management

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

・Offering environmental education programs through position-specific training

・Holding environmental seminars for workers with environmental responsibilities at AW consolidated companies

・Sharing info by developing an AW safety and environment website

・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.

・(Anjo: Participated in the Aburagafuchi Cleanup Day; Tahara: Held the Nanohana Project)

・Offered the Aisin Environmental Learning program at local elementary schools. (Anjo: 7 schools; Okazaki: 3 schools; Gamagori: 3 schools)

・Participated in All-Aisin Energy-saving Project Presentations.AW presented panel displays of three projects, one of which received top honors (March 4, 2014).

06


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 Activities

Business 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

07


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) and AWQUIS JAPAN Co., Ltd. (Takahama 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

08


AmountItem

1．Business costs 1.8 billion yen

2.8 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

2.2 billion yenReduction 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 FY2013 totaled ￥8.2 billion.These costs are equivalent to approximately 1% of the company’s annual revenue. Environmental conservation benefits (economic benefits) totaled ￥2.2 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. The company also plans to aggressively introduce consolidated environmental accounting for targeted group companies.

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.

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 Accounting1.4

Environmental Education System

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

4．R&D costs

5．Social costs

６．Environmental harm costs

３．Management costs 0.1 billion yen

3.4 billion yen

0.1 billion yen

0 billion yen

8.2 billion yen

persons

１９９８

１２７

１９９９

１７５

２０００

２１１

２００１

２２３

２００２

２３０

２００３

３３２

year２００４

３８２

２００５

４４１

２００６

４６０

２００7

548

1,000900850800750700650600５5０５００４５０４００３５０３００２５０２００１５０１００５００

２００8

628

２００9

687

２０11

823

２０12

891

２０13

923

２０10

763

Trends in the Number of People Completing Internal Environmental Auditor Training

09


AmountItem

1．Business costs 1.8 billion yen

2.8 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

2.2 billion yenReduction 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 FY2013 totaled ￥8.2 billion.These costs are equivalent to approximately 1% of the company’s annual revenue. Environmental conservation benefits (economic benefits) totaled ￥2.2 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. The company also plans to aggressively introduce consolidated environmental accounting for targeted group companies.

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.

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 Accounting1.4

Environmental Education System

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

4．R&D costs

5．Social costs

６．Environmental harm costs

３．Management costs 0.1 billion yen

3.4 billion yen

0.1 billion yen

0 billion yen

8.2 billion yen

persons

１９９８

１２７

１９９９

１７５

２０００

２１１

２００１

２２３

２００２

２３０

２００３

３３２

year２００４

３８２

２００５

４４１

２００６

４６０

２００7

548

1,000900850800750700650600５5０５００４５０４００３５０３００２５０２００１５０１００５００

２００8

628

２００9

687

２０11

823

２０12

891

２０13

923

２０10

763

Trends in the Number of People Completing Internal Environmental Auditor Training

10


Design and Development2.

More compact and lightweight ECUs

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

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 44 customers (as of June 2014) 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 and of a new FWD 6-speed automatic transmission in 2013, 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.

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.

Vehicle harness length

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

Previous ECU model

Previous N.S.SW. model

Previous ECU model

New ECU model

※Based on Lepelletier system

※ Based on Lepelletier system

* 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 ECUs for A/Ts (Electronic Control Unit)2.2

Previous ECU model

New ECU model

-61%

Previous ECU model

New ECU model

Previous ECU model

New ECU model

●Area ●Mass(weight) ●Jigs

-60%-79%

Integrated N.S.SW./ECU

Previous model

-65%

The company’s A/T Initiatives

●Gear ratios

●Fuel efficiency●Lock-up region

●Automatic transmission structure

・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 an eight-speed design enables a wider gear range and closer-set ratios than previous automatic transmission technology, helping to improve both acceleration performance and fuel efficiency.

Improving fuel efficiency by reducing engine RPM through the use of gear ratios with broader coverage and an eight-speed design

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

New 6-speed A/T model

Differential ratio 3.200

14.278.033.662.15

Sixth gear

Previous 6-speed A/T model


2.28 7.89 13.81

First gearSecond gearThird gearSixth gear

3.84

14.918.605.54

4.143.47

2.84Differential ratio 2.839 Eighth gear Seventh gear

2.301.91New 8-speed

A/T modelNew 8-speed A/T model

Throttle opening

New automatic transmissionAbout 1,000 rpm

Engine rotation speed

Previous 6-speed automatic transmissionAbout 1,200 rpm

rpm

%

Expanded lock-up region

km/l

Conventional 6-speed A/T model


+7%


+2%

Better

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

(NEDC mode)

Fifth gear Fourth gear

2.86 5.18

2.73 4.98

11

AISIN AW ENVIRONMENTAL REPORT 2014 2.Design and Development

Design and Development2.

More compact and lightweight ECUs

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

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 44 customers (as of June 2014) 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 and of a new FWD 6-speed automatic transmission in 2013, 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.

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.

Vehicle harness length

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

Previous ECU model

Previous N.S.SW. model

Previous ECU model

New ECU model

※Based on Lepelletier system

※ Based on Lepelletier system

* 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 ECUs for A/Ts (Electronic Control Unit)2.2

Previous ECU model

New ECU model

-61%

Previous ECU model

New ECU model

Previous ECU model

New ECU model

●Area ●Mass(weight) ●Jigs

-60%-79%

Integrated N.S.SW./ECU

Previous model

-65%

The company’s A/T Initiatives

●Gear ratios

●Fuel efficiency●Lock-up region

●Automatic transmission structure

・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 an eight-speed design enables a wider gear range and closer-set ratios than previous automatic transmission technology, helping to improve both acceleration performance and fuel efficiency.

Improving fuel efficiency by reducing engine RPM through the use of gear ratios with broader coverage and an eight-speed design

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



14.278.033.662.15

Sixth gear

Previous 6-speed A/T model


2.28 7.89 13.81

First gearSecond gearThird gearSixth gear

3.84

14.918.605.54

4.143.47

2.84Differential ratio 2.839 Eighth gear Seventh gear

2.301.91New 8-speed

A/T modelNew 8-speed A/T model

Throttle opening

New automatic transmissionAbout 1,000 rpm

Engine rotation speed

Previous 6-speed automatic transmissionAbout 1,200 rpm

rpm

%

Expanded lock-up region

km/l

Conventional 6-speed A/T model


+7%


+2%

Better

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

(NEDC mode)

Fifth gear Fourth gear

2.86 5.18

2.73 4.98

12


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

Navigation

Computer

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 economy. 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) 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 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, shorter routes, 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 automati-cally 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, 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 within seven days of 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.)

13


Reducing fuel consumption with Eco Trial

Eco advice is given when the navigation system is launched.

Fuel consumption varies with driving style and technique. In order to drive in a consistently fuel-efficient way, drivers must understand and follow eco-driving practices. Aisin AW has commercialized a function known as Eco Trial, which helps drivers practice eco-driving consistently while having fun by focusing on their commute, which typically consists of movement between the same points on a daily basis, and allowing them to compete against their own past gas mileage. Additionally, by displaying past and current driving results on the map, the function helps drivers understand where they should make an effort to drive more efficiently, making it easier to improve fuel efficiency.Drivers can also check their results on a smartphone.

The following areas can be checked on the map:・Area where driver practiced eco-driving・Area where driver did not practice eco-driving・Area where vehicle operated on electric power alone

Before drivingBefore driving

While drivingWhile driving

After drivingAfter driving

Current driving results

Faint display of past driving results

Comparison of fuel efficiencyDrivers can see their results at a glance, even while driving.

14


Comparison of Energy Use（10-15 Mode）

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 two 2-motor hybrid systems for FF vehicles and three for FR 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.

EV (Electric Vehicle) and Hybrid Drive Systems2.4

Energy utilization index0

Gasoline-powered car

Hybrid car

EV(electric vehicle) 34

100

62

15


FF 2-motor hybrid transmission

●The Toyota Camry Hybrid features an AW 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 system is featured in the Lexus GS450h, which was launched in March 2006, and the Toyota Crown Hybrid, which was 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 Hybrid, which was launched in January 2013, and the IS 300h, which was launched in May 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.

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. No decaBDE is currently used.

Initiatives for reducing use of environmentally harmful substances2.5

17


Production3.

Innovative Manufacturing Framework

Benefit (Example project 1: Dream Carrier)Production Processes3.1The 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.

AISIN 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

ManufacturingEngineeringDivision

●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 A/T

１,００８

０

５００

０

１,０００

１,５００

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

18

AISIN AW ENVIRONMENTAL REPORT 2014 3.Production

Production3.

Innovative Manufacturing Framework

Benefit (Example project 1: Dream Carrier)Production Processes3.1The 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.

AISIN 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

ManufacturingEngineeringDivision

●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 A/T

１,００８

０

５００

０

１,０００

１,５００



●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 Savings

Power Use

●Resource Savings

Weight (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 A/T 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


Outward trip: 95%Return trip: 60%


No. 1 Plant

No. 2 Plant

10 trips per day of two 15-ton trucks and 4 employees

4 trips per day of one 15-ton truck and 2 employees

Meiko Vanning Center

Meiko Pallet Center

Total: 14 trips per day of three 15-ton trucks and 6 employees


No. 1 Plant

No. 2 Plant

10 trips per day of two 15-ton trucks and 4 employees

Meiko Vanning Center

Meiko Pallet Center

Total: 10 trips per day of two 15-ton trips and 4 employees

Improving Distribution3.2This 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

《Before improvement》Truck movements by factory

《Before improvement》Single-part-type packaging 《After improvement》Packaging of different parts bound for the same process together

《After improvement》Consolidation of truck runs and effective use of space on return trips at plants in the Head Office area

In the Production Division and Distribution Division, we consider our mission to be environmental conservation, and we strive through our operations to achieve environmentally friendly distribution. During FY2013, we focused on simply applying improvements that we have made to date to other routes.As a typical example of these efforts, we consolidated truck runs between our Head Office Plant and the Meiko area and made changes so that space on return trips could be used more effectively. The resulting increase in transport efficiency allowed us to reduce CO2 emissions by 10 tons (see Note 1) per year.

Going forward, we will continue to pursue the goal of environmentally friendly distribution, both by applying existing improvements horizontally across operations and by embracing the challenge of pioneering new improvements.

Note 1:Equivalent to the amount of CO2 emitted by 43 round-trip runs between Tokyo and Osaka in company-operated trucks.

Although we use plastic returnable shipping containers, which are environmentally friendly since they can be reused, to ship parts to overseas plants from the perspective of the 3Rs (reduce, reuse, and recycle), we rely on secondary materials such as vinyl bags and PET as packaging materials, which are difficult to manage in a manner that would allow them to be returned for reuse.We used to package one part type per container, but in an effort to reduce the dead space that is a byproduct of this approach, we began packaging multiple part types in each container, thereby improving the container fill rate and reducing use of secondary packaging materials. As a result, we were able to reduce our use of packaging materials by 13.7 tons. In addition, the Manufacturing Engineering Division and Production Division worked together to identify parts used in the same process, refine the layout of those parts in the packaging according to their order of assembly, and minimize movements of parts around plants in the field and manual handling of parts on assembly lines.Going forward, we will work to apply this effort horizontally across our operations by pursuing packaging and transport process design upstream to the production process design stage.

Capacity: 6No. of containers: 236 containers/day

Capacity: 2 of each partNo. of containers: 825 containers/day

ActionsDifferent parts that will be used in the same process are packaged in the same container in a manner that takes into account the order in which they will be removed, thereby using space in the container effectively.

Capacity: 4No. of containers: 413 containers/day

Capacity: 3No. of containers: 551 containers/dayTotal: 1,200 containers/day

Pouches of rust inhibitor and desiccant in each container → Secondary materials: 883 g/unitNo. of containers: 1,200 containers/day → 825 containers/day (▲375 containers/day)Secondary materials: 15 g/unit (▲68 g/container)

C1 clutch Waste Mixed packaging of parts used in the main kit process

C2 clutch Waste

Rr carrier Waste

23


Dec. ’11:Started remanufacturing linear SOLs

Remanufacturing3.3What is Remanufacturing?

Focus and History of Activities

2013:4,800 units remanufactured

AW Europe S.A.


AWQUIS JAPAN


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 A/T 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).

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.

Aug. ’94:Establishedremanufacturing plant

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

Dec. ’99:Introduced returnable containers

May ’69:Commenced A/T remanufacturing with the founding of AW

Vehicle check and diagnosis

Remanufacturing bases

Disassemble,repair and inspect

Parts recycling

T/C remanufacturingInstall remanufactured A/T Inventory shipment

Order

A/Tremanufacturing

Further Developments●Promoting initiatives to 　Remanufacturing HV●Promoting initiatives to recover　discarded parts

Remanufacturing Total Units

July ’98:Opened AW Europe Service Center

April ’00:Started T/C remanufacturing

Aug. ’04:Started remanufacturingA/Ts for TOYOTA models

Nov. ’07:Started remanufacturingCVTs for AISIN AW model

April ’88:Opened AWTEC U.S.A., Inc.

’79 to ’89:Started remanufacturing A/Ts for TOYOTA models

total units

６９７１

150140130120110１０0９0８0７0６0５0４0３0２0１0０

７３７５７７７９８１８３８５８７８９８８９８９４９１９３０３０４９５９７９９０００7０１０５０6 ０8 ０9 1110 12 13

24


Management planningdept.

Manufacturingdept.

Market quality investigation dept.

Overseasfacilities

To contribute to society through effective use of resources by pursuing our remanufacturing business

Pursuingthe remanufacturingbusiness

11Promotinguse of reusable

parts

22Priorities

Objective

Using resources effectively through remanufacturing

All packing boxes: Thickness of 10 mm

Container test

Packing box use cycle (average: 7 uses)

Projected benefit: After permanent measures, savings of ¥833,760 per year

Reduction of 432 kg in annual quantity of boxes discarded

Circulating box: Reinforcements are added. New orders: Boxes with thicker walls are ordered.

•Additional adjustments to boxes in current circulation: 7 → 20 (affixing reinforcements)•New orders for boxes with reinforced specifications: 7 → 25

T/C packaging Circulation

Disposal

・Current quantity in circulation: About 2,000 boxes・FY2013 purchase quantity: 600 boxes (50 boxes/month)・Purchase price: ¥2,230/box・Replacement standard: Units are discarded if there is even one dent (to prevent stacked boxes from collapsing).

Thickness: 10 mm

Thickness: 5 mm

Damage locations:Area in which all dent damage must have a thickness of no greater than 5 mm

Area circled at left

Initiative 1: Reducing use of secondary materials through partial reinforcement of remanufactured product packing boxes

※Month of implementation: Began in January 2014.

Current boxes

Reinforced boxes in circulation

Newly designed, thicker boxes

¥2,230

¥2,230 + ¥300

¥2,530

7

20

25

¥320

¥149

¥101

50 boxes/month

17 boxes/month

14 boxes/month

Cost per use Order frequencyNo. of usesPrice

Inspection

BenefitsCountermeasures

Background

For reinforcing base (thickness: 5 mm)Unit cost: ¥300

1 box1 kg

Packing boxes are recycled by adding reinforcements.

25


We changed the cleaning fluid we use after relocating to a new plant in order to comply with the Fire Service Act. This initiative led to the realization of new cost benefits by switching to refill cans.

Initiative 2: Reducing secondary material use by reviewing the manner in which cleaning fluid is purchased

Need to switch

Product name

Fire Service Act(flash point)

Volume

Appearance

Unit cost

Super Check

Class 1 petroleum

product (-4°C)

0.3 L cans¥310

¥1,033/L

Pro-Use

Class 2 petroleum product

(41°C)

0.42 L cans¥400

18 L cans¥7,100

Filling machine Refill can

Positioning of refill cans in the second-floor assembly area

Projected annual savings

■Super Check cans　FY2013: Purchased 1,754 cans (263 kg)　FY2014: Projected purchase of 125.6 cans 　(18 L each for a total of 144.4 kg)

■Annual reduction in waste volume　263 kg - 144.4 kg = 118.6 kg/year

Positio

ned

thro

ugho

ut plant

We use a filling machine to load refill cans (0.3 L) from the 18 L cans. (This approach has been applied to

60 locations throughout the company.)

¥952/L ¥395/L

Savings: ¥638/L

Bulk-purchased product

From filling machine

※Month of implementation: Began in January 2014.

Collection

and filling

0.15 kg per box

Signif icant advantage

1.15 kg per box

■2013 usage: 1,052.4 L　▲¥638 1,052.4 L = ¥670,000/year

26


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.

AISIN AW has accepted the energy conservation targets that have been embraced by the industry groups of which it is a member. In fiscal 2008, we augmented our reduction targets for CO2 emissions per unit of energy used with a new series of initiatives to reduce total CO2 emissions.

BESTBEST MIXMIX

Environment

Businesscost

STablesuppy

Results

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

Initiatives undertaken in fiscal 2013 focused on (1) implementing an equipment energy conservation certification system (level 4 items carried out), (2) eliminating air leaks companywide, and (3) transitioning to smaller motor modules (deploying simultaneous heating and cooling heat pump systems).

Better

CO2 emissions perunit of energy used

Total CO2 emissions

Sales

Energy Conservation3.4

＝

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 ’13’11

Total CO₂ emissionsCO₂ emissions per unitof energy used

Better

27


Future directions

FY2013 activities

Aisin 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 objectives of the FY2015 Environmental Initiative Plan, specifically:(1) Creating products with low CO2 emissions through SE activities (*3)(2) Articulating clear CO2 emissions reduction and process design targets through visualization of energy consumption(3) Reducing CO2 emissions from new equipment by applying and pursuing innovative processes designed to conserve energy(4) Reducing CO2 emissions from existing equipment by pursuing aggressive zero-waste activities and transitioning from

superannuated equipment to high-efficiency replacements(5) Applying our compact modular approach to power equipment (heat pumps, compact compressors, etc.)

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

During FY2014, we will continue to steadily implement energy-saving activities to achieve our energy-saving targets by actively adopting Level 4 action items under our energy-saving equipment certification program and eliminating air leaks at all company-operated production facilities.Additionally, as part of our effort to modularize power equipment, we will install new dual-mode heat pump systems while continuing to study the compact modular concept.

During FY2013, we focused on the following activities:

Benefits of the effort to eliminate air leaks

Installing dual-mode heat pump systems on production lines

Level 4 initiatives in the energy-saving equipment certification program

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 from Level 4 (*1), our target for new equipment, to existing equipment (for example, by installing blowers and pump inverters).

*1 Level 1: Energy-saving initiatives are being pursued, but progress is inadequate at the

present time. Level 2: Similar improvements have been made, and the investment associated with the

improvement can be recouped in less than one year. (Target for existing equipment)

Level 3: It may take one year or more to recoup the investment, but the change should be made if possible.

Level 4: Costs can be reduced by implementing the change for new equipment.(Target for new equipment)

Level 5: Energy consumption is minimized using the best technology currently available.

Energy-saving equipment certification program (Level 4 initiative)

Objective: To eliminate waste

■Air leaks (*2) throughout plants account for about 9% of operating consumption (3,135 t-CO2), and we have been working to limit the leak rate to 5% or less since FY2011. In FY2013, we not only repaired leak locations, but also analyzed the causes of leaks and launched a series of activities to choose equipment that is less likely to develop leaks and to end use of equipment that uses air, where possible.Going forward, we will apply this initiative to new and existing equipment. *2 Normally, there is no air leakage when equipment is not operating since workers are careful

to close air valves.

Companywide effort to eliminate air leaks

Objective: To supply power only when and where it is needed

■We deployed 14 of these units, which we developed jointly with CHUBU Electr ic Power Co., Inc., and ZENERAL HEATPUMP INDUSTRY CO., LTD., at the Gamagori Plant in FY2010, allowing production equipment to be heated without the use of steam. We received the FY2011 Agency for Natural Resources and Energy Director-General’s Award for Energy Conservation in recognition of our use of this system to lower CO2 emissions by 80% compared to previous levels. We began deploying the technology to other plants in FY2011, and as of the end of FY2013, we had deployed 54 units (41 in Japan and 13 overseas). Going forward, we will continue to install the system at other facilities we operate.

Adopting a modular approach to power equipment

Certification sticker

《Benefits(CO2 emissions)》

Before

Washer

Heat pump

Heat pump system

Lathe

Electric chiller

Steam After

Before After

(Index)

-87%100

50

0

Separate cooling systems were used on each piece of equipment to cool cutting fluid. Steam from a boiler was used to warm cleaning fluid.

We deve loped a system using heat pump techno logy to ha rness heat gene rated dur ing cu t t ing to warm cleaning fluid.

　　《Level 2》(Target for existing equipment)

・Intermittent operation《Benefits (CO₂ emissions)》(Thousands of tons of CO₂ per year)20

15

10

5

0Forecast reduction To 2012 FY 2013 From 2014

△947t-CO₂

　　《Level 4》(Target for new equipment)

・Installation of blowers・Installation of pump inverters・Reassessment of coolant warming・Lighting update

Air consumption when plant is idle

Air consumption when plant is operating

FY2013・Number of improvements: 4,089・CO2 reduction: 979 t-CO2

《Change in air hose material》

Phthalic acid hoses Polyester hoses(More resistant to degradation)

Before initiative FY2012 From 2014FY2013

《Trend in air leak rate》

（%）15

10

5

0

Air leak rate ＝

8.9%7.6%

5.7% Target

Before After

《Transition to electric air pumps》

Air-driven and always operating

Electric and timer-controlled(Reducing CO2

emissions by 99%)

Before After

28


Waste Reduction Activities

The Waste and Recycling Subcommittee is responsible for setting waste reduction targets and determining the overall direction of related activities. As of 2005, we had achieved the first three waste reduction steps—reducing waste product processing by outside companies, eliminating landfilled waste, and reducing incinerated waste. Fluctuations in production volume have made it challenging to achieve the fourth step of reducing total waste product volume, but we have nonetheless achieved annual targets for the subsequent five years. We began the fifth step of reducing waste product volume per unit of production in 2011, and we will work to recycle waste plastic this year in an effort to achieve the associated targets.

Reducing Waste Products and Encouraging Zero Emissions3.5

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

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

We have been working to reduce total emissions (the fifth step) since fiscal 2011. Future reduction targets will take into account expected production volumes, and future activities will include reducing use of water-soluble oils and fats as well as waste plastic volumes from the standpoint of the 3Rs.

Reducing total emissions (waste products)

ＡＷ Waste

Resources (substance that can be profitably recycled)

Reuse inside the company

Recycled (fee-based)

【1st Step】Processing by outside company (Target met in January 2000)Transition to in-house processing(to reduce waste product volumes)

【2nd Step】Landfilled waste(Zero-emission target met in May 2005)

【3rd Step】Incinerated waste (target met in FY2005)

【4th Step】Reduction of total waste product volume(Activities completed in FY2010)

【5th Step】Reduction of waste product volume per unit of production (Target to be met by end of FY2015)

2003 2004 2005 2006 2007 2008 2009 2010 2012 20132011

2.36

1.941.73 1.73 1.68

1.88

1.45

1.441.21 1.23

1.37

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

(kg/number)

（year）

（Metric ton/year)

29


Example of our waste plastic sorting program (FY2013)

Part trays (73.4 tons collected)

Collection of individual materials (PP, PS, and PET)

Incinerated as a combustion improver

Crushing, mixing, and compactionWaste products

(payment of disposal fees)

Proposed solutionsProblem areas

・Add collection boxes for each material. → There is not enough space.・Sorting takes time and would impact production.

・Add collection boxes for each material. → Sufficient space is available.・Minimize the impact on production by limiting the number of workers tasked with responsibilities in this area.

Due to increases in waste plastic volume, sorting takes time and is inefficient.

Different types of waste plastic and other waste products are mixed together (PP, PS, PET, paper, etc.).



Collection boxes on production lines

Temporary storage area

Final storage area

Mixed PP, PS, and PET

Waste productsPP PS PET

Collection boxes on production

lines

Equipment

Temporary storage area

Final storage area

Waste product volume reduced ▲82.6tons/year (achieving our target of ▲80tons/year)

Before

AfterSorting waste products and using them

as valuable resources

Electronics Plant Okazaki Plant

Raw materialsPulverizing, sorting, washing, and drying

Compaction and crushing

Valuable resources (sold for a fee)

Resources

Collection boxes on production lines

EquipmentFinal storage area

PSPPPETTemporary

storage area

PET16 types

PP11 types

PS13 types

Packaging materials (9.2 tons collected)

PPbands

PEfilm

Contributing to a recycling-based

society

Improvement

30


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 per-formance.

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

Eliminatingproblemscomplaints

Minimizingrisks

EMS

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

Partnerships with the Aisin Group

○Aisin Group Consolidated Environmental SymposiumWe strive to raise awareness of environmental conservation by participating in the Aisin Group Consolidated Environmental Symposium, which is held during Environment Month.

○Aisin Group marsh conservation projectsThe Aisin Group is participating in conservation projects targeting the Yanami Marsh in the city of Toyota, Aichi Prefecture, and the Nakaikemi Marsh in the city of Tsuruga, Fukui Prefecture, both of which were targeted for conservation by the Ramsar Convention. At the Nakaikemi Marsh, we participated in a project held by the non-profit organization that manages the marsh to clear grass from waterways.

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 : 22 companiesSuppliers : 500 companiesAISIN Group : 11 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 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 : 13 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

Employees learned about the importance of building a society that coexists with nature.

Employees participated in remedial work in the Nakaikemi Marsh.

Partnerships with AW Group companies in Japan

●FY2013 priority initiatives〈Safety and disaster prevention〉・Applying successful examples of the Stop 6+2+1 initiative・Offering training on statutory reporting requirements for employees working in equipment design departments

〈Health〉・Dealing with the risks posed by avian flu and studying how to proceed in the future・Implementing activities to help employees quit smoking〈Environment〉・Compiling information detailing progress toward implementation of the Fifth Environmental Initiative Plan・Compiling information about processing of equipment waste materials containing PCBs

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

At the Consolidated Safety and Environment Liaison Conference

We host a semiannual Consolidated 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.

Partnerships with suppliers

During FY2014, we will continue the above activities while working to enhance them through mutual refinement with overseas Group companies.

We worked with local communities to manage construction safety. We offered training to employees in charge of workplace safety at a facility in North America.

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. Additionally, we collect data on metrics such as CO2 emissions and waste volume and have started to investigate how we can establish global targets in order to ensure compliance with local laws and improve environmental performance.

●Facilities in China

●Facilities in North America and Europe

・Sharing of information concerning safety, disaster prevention, health, and environmental issues

・Working with local communities to develop a basis for a safe environment, for example by applying for safety-related permits and licenses and creating construction safety management structures, as we open two new facilities (one manufacturing facility and one non-manufacturing facility)

●Fiscal 2013 Priority Initiatives


31

AISIN AW ENVIRONMENTAL REPORT 2014 4.Environmental Protection Activities

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 per-formance.

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

Eliminatingproblemscomplaints

Minimizingrisks

EMS

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

Partnerships with the Aisin Group

○Aisin Group Consolidated Environmental SymposiumWe strive to raise awareness of environmental conservation by participating in the Aisin Group Consolidated Environmental Symposium, which is held during Environment Month.

○Aisin Group marsh conservation projectsThe Aisin Group is participating in conservation projects targeting the Yanami Marsh in the city of Toyota, Aichi Prefecture, and the Nakaikemi Marsh in the city of Tsuruga, Fukui Prefecture, both of which were targeted for conservation by the Ramsar Convention. At the Nakaikemi Marsh, we participated in a project held by the non-profit organization that manages the marsh to clear grass from waterways.

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 : 22 companiesSuppliers : 500 companiesAISIN Group : 11 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 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 : 13 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

Employees learned about the importance of building a society that coexists with nature.

Employees participated in remedial work in the Nakaikemi Marsh.

Partnerships with AW Group companies in Japan

●FY2013 priority initiatives〈Safety and disaster prevention〉・Applying successful examples of the Stop 6+2+1 initiative・Offering training on statutory reporting requirements for employees working in equipment design departments

〈Health〉・Dealing with the risks posed by avian flu and studying how to proceed in the future・Implementing activities to help employees quit smoking〈Environment〉・Compiling information detailing progress toward implementation of the Fifth Environmental Initiative Plan・Compiling information about processing of equipment waste materials containing PCBs

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

At the Consolidated Safety and Environment Liaison Conference

We host a semiannual Consolidated 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.


During FY2014, we will continue the above activities while working to enhance them through mutual refinement with overseas Group companies.

We worked with local communities to manage construction safety. We offered training to employees in charge of workplace safety at a facility in North America.

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. Additionally, we collect data on metrics such as CO2 emissions and waste volume and have started to investigate how we can establish global targets in order to ensure compliance with local laws and improve environmental performance.

●Facilities in China

●Facilities in North America and Europe

・Sharing of information concerning safety, disaster prevention, health, and environmental issues

・Working with local communities to develop a basis for a safe environment, for example by applying for safety-related permits and licenses and creating construction safety management structures, as we open two new facilities (one manufacturing facility and one non-manufacturing facility)



32



We published the Aisin Group Green Procurement Guidelines on March 31, 2010, 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 hazardous substances　・Managing parts and raw materials used in products (A/Ts and car

navigation systems)　・Managing secondary 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 performance

(2)Assessment of the state of EMS development through on-site inspec-tions and guidance in pollution pre-vention activities

33


Anjo

Okazaki

Tahara

Unit：ton

Okazaki east

Gamagori

Release / Transfer by plants, substance

Substance TotalOn-site

decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption

AWQUIS is not indicated here, due to its annual amounts of PRTR substances are not less than 1 ton.

PRTR chemical substances overview　－FY2013－4.2

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

Chemicals Reduction Activities

(Fiscal Year)

１０.0

2000 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

45

40

35

30

25

20

15

10

5

0

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 (MSDS) 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.

Our FY2013’s amounts of PRTR chemical substances (substances handled in volumes of 1 ton or greater) release/transfer are as follows.

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

Off-site transfer

63.9 tonAir

47.0 ton

Public water0.0 ton

On-site decontamination

8.7 ton

On-site consumption379.2 ton498.8 ton

4.2 Management of Chemicals

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

List of approved substances

Approvedsubstances only

Register of approved greases and chemical substances

Volume of PRTR target substances handled

Total amounts

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.

0.40.0020.001

ー0.00210.3

0.00010.0001

ー

167.760.713.41.75

21.612.91.29.5

ーーーーーーーーー

ーーー

1.7ーーーー

1.4

167.360.69813.399

04.998

012.89991.1999

0

ーーーーー

11.3ーー

8.1

0.0520.0003

0ー

0.0004ー0ー

34.510.82.40.90.91.42.26.0

ーーーーーーーー

ーーー

0.9ー

1.4ー

0.6

34.44810.7997

2.40

0.89960

2.20

ーーーーーーー

5.4

0.1870.0002

0.10.00030.00020.0006

ー

18.26.71.50.62.1

31.813.6


ーーーーーー

1.6

18.0136.6998

1.40.59972.0998

31.79940

ーーーーーー

12.0

36ー

56.92.9

ーー

ー0.4

00

20.92.5

0.0002ー

7.34.4

ーー

ー0.7

7.29980

ー3.7

Toluene

Xylene

Ethylbenzene

2-Aminoethanol

Benzene

Styrene

1,2,4-Trimethylbenzene

Methylnaphthalene

N,N-Dicyclohexylamine

Toluene

Xylene

Ethylbenzene

2-Aminoethanol

Benzene

2-(Dimethylamino)ethyl methacrylate



Toluene

Xylene

Ethylbenzene

Benzene


Methylnaphthalene


Styrene


Methylnaphthalene


34


Anjo

Okazaki

Tahara

Unit：ton

Okazaki east

Gamagori

Release / Transfer by plants, substance


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption


decontamination

Off-siteTransfer

Release

WaterAirConsumption

AWQUIS is not indicated here, due to its annual amounts of PRTR substances are not less than 1 ton.

PRTR chemical substances overview　－FY2013－4.2

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

Chemicals Reduction Activities

(Fiscal Year)

１０.0

2000 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

45

40

35

30

25

20

15

10

5

0

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 (MSDS) 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.

Our FY2013’s amounts of PRTR chemical substances (substances handled in volumes of 1 ton or greater) release/transfer are as follows.

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

Off-site transfer

63.9 tonAir

47.0 ton

Public water0.0 ton

On-site decontamination

8.7 ton

On-site consumption379.2 ton498.8 ton

4.2 Management of Chemicals

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

List of approved substances

Approvedsubstances only

Register of approved greases and chemical substances

Volume of PRTR target substances handled

Total amounts

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.

0.40.0020.001

ー0.00210.3

0.00010.0001

ー

167.760.713.41.75

21.612.91.29.5

ーーーーーーーーー

ーーー

1.7ーーーー

1.4

167.360.69813.399

04.998

012.89991.1999

0

ーーーーー

11.3ーー

8.1

0.0520.0003

0ー

0.0004ー0ー

34.510.82.40.90.91.42.26.0

ーーーーーーーー

ーーー

0.9ー

1.4ー

0.6

34.44810.7997

2.40

0.89960

2.20


5.4

0.1870.0002

0.10.00030.00020.0006

ー

18.26.71.50.62.1

31.813.6


ーーーーーー

1.6

18.0136.6998

1.40.59972.0998

31.79940

ーーーーーー

12.0

36ー

56.92.9

ーー

ー0.4

00

20.92.5

0.0002ー

7.34.4

ーー

ー0.7

7.29980

ー3.7

Toluene

Xylene

Ethylbenzene

2-Aminoethanol

Benzene

Styrene


Methylnaphthalene


Toluene

Xylene

Ethylbenzene

2-Aminoethanol

Benzene

2-(Dimethylamino)ethyl methacrylate



Toluene

Xylene

Ethylbenzene

Benzene


Methylnaphthalene


Styrene


Methylnaphthalene


35


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 level

０.０１～０.０２０.０３ＮＤ～０.０２０.０４

Investigation Results and Addressing Problems

Decontamination in progresshas been used

Past UsageOffice Current Condition Detected substance

Cis-1.2-dichloroethylene

none

No influence to soil and surrounding area.has been used

Impact on Areas

Head Plant

Tahara Plant

Gamagori Plant

Okazaki Plant

Okazaki East Plant

AWQUIS JAPAN

These showed that levels of organic chlorine exceeded environ-mental 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

36


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

Concrete

Cross-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

37


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

Okazaki Plant

Fluidized-bed incinerator Bag filter dust collection

Adsorbs and eliminates acidic gases,hydrogen chloride gas and dioxin.

Decomposes dioxin by re-burningexhaust gases at over 800℃

Adds calcium hydroxideand activated carbon

Head Plant incinerator

Okazaki 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

●For the results of exhaust gas data measurements, see page 47. Monthly ope ra t i ng da ta i s available on the Aisin AW website.

38


Rainwater treatment system

Treated wastewater recycling and abnormal wastewater/raw water return system

Biotope of Okazaki East PlantIn 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.

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.

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

●Okazaki East Plant

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.

●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.

4.5

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.

Industrialsystems

Meeting with members of the Aburagafuchi fishery cooperative association

Discussion with members of the Aburagafuchi fishery cooperative association

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

39


Rainwater treatment system

Treated wastewater recycling and abnormal wastewater/raw water return system

Biotope of Okazaki East PlantIn 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.

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.

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

●Okazaki East Plant

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.

●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.

4.5

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.

Industrialsystems

Meeting with members of the Aburagafuchi fishery cooperative association

Discussion with members of the Aburagafuchi fishery cooperative association

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

40


Location Standard limit Measured value Evaluation

Okazaki Plant


No.1

No.2

No.3

No.4

No.5

55

57

52

57

56

○

○

○

○

○

75

No.1

No.2

No.3

No.4

42

46

50

39

○

○

○

○

60

No.1

No.2

No.3

No.4

No.5

No.6

No.7

※

51

47

47

57

51

49

48

○

○

○

○

○

○

○

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

50

57

62

52

59

57

57

51

48

51

50

○

○

○

○

○

○

○

○

○

○

○

70

No.1

No.2

No.3

No.4

No.5

45

42

45

48

46

○

○

○

○

○

60


Tahara Plant



Creating Landscapes of Green and Flowers

Noise Pollution Countermeasures

Noise Pollution Results

●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

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.

*Okazaki: Daytime (8:30 am to 5:00 pm)*Tahara: Daytime (6:00 am to 10:00 pm)

Noise Pollution4.6 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)

AISIN 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

41



Okazaki Plant


No.1

No.2

No.3

No.4

No.5

55

57

52

57

56

○

○

○

○

○

75

No.1

No.2

No.3

No.4

42

46

50

39

○

○

○

○

60

No.1

No.2

No.3

No.4

No.5

No.6

No.7

※

51

47

47

57

51

49

48

○

○

○

○

○

○

○

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

50

57

62

52

59

57

57

51

48

51

50

○

○

○

○

○

○

○

○

○

○

○

70

No.1

No.2

No.3

No.4

No.5

45

42

45

48

46

○

○

○

○

○

60


Tahara Plant



Creating Landscapes of Green and Flowers

Noise Pollution Countermeasures

Noise Pollution Results

●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

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.

*Okazaki: Daytime (8:30 am to 5:00 pm)*Tahara: Daytime (6:00 am to 10:00 pm)

Noise Pollution4.6 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)

AISIN 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

42


【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)

43


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. To the left is the Vehicle testing building. 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】

44


Contribution to Society Activities5.

●Participating in local events

●Communications with welfare facilities

・ Opening company facilities to community use

■Facilitating local development

Approach to Activities

Priorities

Facilities or Events

Family Festival

Anjo(HeadOffice)

Okazaki

Tahara

Gymnasium

Sports field

Harmony Hall

Okazaki Festival

Okazaki East PlantAutumn Festival

Tahara Festival

once a year

Throughoutthe year

Throughoutthe year

once a year

once a year

once a year

once a year

Frequency

Seeking to earn the admiration and trust of society by pursing harmony with local communities as a good corporate citizen

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.

Both employees and local residents enjoy the benefits of our employee welfare facilities.

１．２．３．

・ Anjo Tanabata Festival

Many employees carry out volunteer activities in order to liven up local festivals.

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.

Coexisting with local communities

Facilitating local development

Fostering the development

of youth

Protecting the natural environment

Family Festival

Charity concert at Harmony Hall

We visit welfare facilities and interact with local residents through recreation.

・ Down the YAHAGI River

Skill trainees of “Global Training and Development Center” support this event.

■ Fostering the development of youth

Elementary school students learn about the joy and excitement of building things through Monozukuri classes working in partnership with local groups.

We sent instructors to participate in the Automobile Design Study Project※ in an effort to foster the creativity of elementary, middle-school, and high-school students.

Environmental education program

We visit local elementary schools, and teach importance of the environment through yearly nature experience programs (classroom lectures and experiences).

Basketball coaching

We send Wings and Areions ※ players and ex-players to teach basketball skills to elementary and middle school students.

※Our men’s and women’s basketball teams

※A youth development program offered by the public-interest foundation ASTE.

■ Protecting the natural environment

■ Other activities

We signed a forestry foster parent agreement in order to futher efforts to conserve the headwaters of the Yahagi River, and we participate in a variety of hands-on nature events.

We’re working with local groups to create a scenic landscape by planting rape blossoms.（AI DOURO Partnership Project and the Tahara Adapt Program.）

Zero waste activities in partnership with local groups

Employees regularly pick up litter in partnership with local residents in an effort to beautify the community.

・Monitoring of traffic safety・Support for Nishimikawa homecare center・Cooperation for Aburagafuchi cleanup day・Mikawa Bay coastal cleanup

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.

●

●

●

We sponsor or support a variety of local events.

Participation in a forestry foster parent programadministered by Neba-mura in Nagano Prefecture

Tahara Rape Blossom Project

Supporting automobile design study projectMonozukuri classes

45

AISIN AW ENVIRONMENTAL REPORT 2014 5.Contribution to Society Activities

Contribution to Society Activities5.

●Participating in local events

●Communications with welfare facilities

・ Opening company facilities to community use

■Facilitating local development

Approach to Activities

Priorities

Facilities or Events

Family Festival

Anjo(HeadOffice)

Okazaki

Tahara

Gymnasium

Sports field

Harmony Hall

Okazaki Festival

Okazaki East PlantAutumn Festival

Tahara Festival

once a year

Throughoutthe year

Throughoutthe year

once a year

once a year

once a year

once a year

Frequency

Seeking to earn the admiration and trust of society by pursing harmony with local communities as a good corporate citizen

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.

Both employees and local residents enjoy the benefits of our employee welfare facilities.

１．２．３．

・ Anjo Tanabata Festival

Many employees carry out volunteer activities in order to liven up local festivals.

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.

Coexisting with local communities

Facilitating local development

Fostering the development

of youth

Protecting the natural environment

Family Festival

Charity concert at Harmony Hall

We visit welfare facilities and interact with local residents through recreation.

・ Down the YAHAGI River

Skill trainees of “Global Training and Development Center” support this event.

■ Fostering the development of youth

Elementary school students learn about the joy and excitement of building things through Monozukuri classes working in partnership with local groups.

We sent instructors to participate in the Automobile Design Study Project※ in an effort to foster the creativity of elementary, middle-school, and high-school students.

Environmental education program

We visit local elementary schools, and teach importance of the environment through yearly nature experience programs (classroom lectures and experiences).

Basketball coaching

We send Wings and Areions ※ players and ex-players to teach basketball skills to elementary and middle school students.

※Our men’s and women’s basketball teams

※A youth development program offered by the public-interest foundation ASTE.

■ Protecting the natural environment

■ Other activities

We signed a forestry foster parent agreement in order to futher efforts to conserve the headwaters of the Yahagi River, and we participate in a variety of hands-on nature events.

We’re working with local groups to create a scenic landscape by planting rape blossoms.（AI DOURO Partnership Project and the Tahara Adapt Program.）

Zero waste activities in partnership with local groups

Employees regularly pick up litter in partnership with local residents in an effort to beautify the community.

・Monitoring of traffic safety・Support for Nishimikawa homecare center・Cooperation for Aburagafuchi cleanup day・Mikawa Bay coastal cleanup

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.

●

●

●

We sponsor or support a variety of local events.

Participation in a forestry foster parent programadministered by Neba-mura in Nagano Prefecture

Tahara Rape Blossom Project

Supporting automobile design study projectMonozukuri classes

46

AISIN AW ENVIRONMENTAL REPORT 2014 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.

ItemsControl 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

NOｘ

SOｘ

Smoke and dust

Max. Average

Boilers (cold and hot water generators)

Heating furnaces

Aluminum Melting furnace

Gas turbine generator

Measured levels

Environmental Performance DataResult for the period from April 2013 to March 2014

Address: 10 Takane, Fujii-cho, Anjo City, Aichi 444-1192 JapanMajor products: Automatic transmissionsNo. of employees: 8,079

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

35

２５.６６

0.05

Disuse(in fiscal 2013)

7.3～7.4

1.1

3.5

ND

0.1

ND

ND

0.06

ND

ND

ND

0.10

ND

2.4

0.11

7.0～7.6

2.3

5.4

ND

1

ND

ND

0.06

ND

ND

ND

ND

ND

5.8

0.43

ND

45

ND

ND

ND

36

ND

0.004

0.028

ND

72

ND

0.006

0.004

41

ND

0.006

0.028

47

AISIN AW ENVIRONMENTAL REPORT 2014 Environmenta l Per formance Data

* 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

Negative ion surfactants (MBAS)

Dissolved oxygen (DO)

Tahara PlantOkazaki Plant

ItemsMeasured levels

Max. Average

Control Limits(incl. agreed limits)

Water Quality

Air Quality

Water Quality

Air Quality

Address: 6-18 Harayama, Oka-cho, OkazakiCity, Aichi 444-8546 JapanMajor products: Automatic transmissions/ Voice navigation systems/ EUCs for A/Ts(Electronic Control Unit)No. of employees: 2,986

Address: 2-2 Midorigahama, Tahara City,Aichi 441-3401 JapanMajor products: Automatic transmissionsNo. of employees: 3,777


NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Hydrogen chloride

Dioxins


Heating furnaces

Incinerator

Facility NamesMeasured levels

ItemsMax. Average


70

17.26

0.1

110

3.16

0.1

0.1

200

2.38

0.1

700

10

Disuse(February 2009)

* 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)

* 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.


* 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

ItemsControl Limits


Max. Average

Facility NamesControl Limits(incl. agreed limits)

Measured levels

Boiler (chilled and hot water generators)

Boilers (cold and hot water generators


Items

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Dioxins

Max. Average

5.8～8.6

10

10

10

2

0.5

0.5

1

3

3

0.1

1

300

15

2

20 degrees min

0.5

7 min

160

0.34

0.2

160

0.89

0.2

160

0.42

0.2

5

7.3 ～ 7.7

1.1

5.0

ND

0.48

ND

ND

0.03

ND

ND

ND

ND

ND

1.51

0.46

100

0.01

7.06

7.1 ～ 7.8

0.33

5.9

1.00

1.4

ND

ND

0.4

ND

ND

ND

ND

ND

3.00

0.71

100

0.04

7.20

62

0.068

0.002

72.5

0.120

0.002

34

ND

0.003

0.13

80

0.086

0.004

87

0.144

0.003

43

ND

0.005

0.13

22

ND

ND

ND

109

0.13

ND

67

0.000057

34

ND

ND

ND

130

0.23

ND

100

0.000057

7.05～7.29

0.92

3.35

ND

0.50

0.02

0.01

0.15

0.08

0.09

ND

ND

ND

1.80

0.27

6.8 ～ 7.5

1.75

5.15

1.00

0.50

0.03

0.01

0.22

0.1

0.1

ND

ND

ND

2.36

0.43

48







Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency


Dissolved oxygen (DO)

Tahara PlantOkazaki Plant

ItemsMeasured levels

Max. Average


Water Quality

Air Quality

Water Quality

Air Quality

Address: 6-18 Harayama, Oka-cho, OkazakiCity, Aichi 444-8546 JapanMajor products: Automatic transmissions/ Voice navigation systems/ EUCs for A/Ts(Electronic Control Unit)No. of employees: 2,986

Address: 2-2 Midorigahama, Tahara City,Aichi 441-3401 JapanMajor products: Automatic transmissionsNo. of employees: 3,777


NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Hydrogen chloride

Dioxins


Heating furnaces

Incinerator

Facility NamesMeasured levels

ItemsMax. Average


70

17.26

0.1

110

3.16

0.1

0.1

200

2.38

0.1

700

10

Disuse(February 2009)

* 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)

* 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.


* 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

ItemsControl Limits


Max. Average

Facility NamesControl Limits(incl. agreed limits)

Measured levels

Boiler (chilled and hot water generators)



Items

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

NOｘ

SOｘ

Smoke and dust

Dioxins

Max. Average

5.8～8.6

10

10

10

2

0.5

0.5

1

3

3

0.1

1

300

15

2

20 degrees min

0.5

7 min

160

0.34

0.2

160

0.89

0.2

160

0.42

0.2

5

7.3 ～ 7.7

1.1

5.0

ND

0.48

ND

ND

0.03

ND

ND

ND

ND

ND

1.51

0.46

100

0.01

7.06

7.1 ～ 7.8

0.33

5.9

1.00

1.4

ND

ND

0.4

ND

ND

ND

ND

ND

3.00

0.71

100

0.04

7.20

62

0.068

0.002

72.5

0.120

0.002

34

ND

0.003

0.13

80

0.086

0.004

87

0.144

0.003

43

ND

0.005

0.13

22

ND

ND

ND

109

0.13

ND

67

0.000057

34

ND

ND

ND

130

0.23

ND

100

0.000057

7.05～7.29

0.92

3.35

ND

0.50

0.02

0.01

0.15

0.08

0.09

ND

ND

ND

1.80

0.27

6.8 ～ 7.5

1.75

5.15

1.00

0.50

0.03

0.01

0.22

0.1

0.1

ND

ND

ND

2.36

0.43

49


工機部本社工場





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

Address: 1-1 Oiri, Obata-cho,Okazaki City, Aichi 444-3502 JapanMajor products: Automatic transmissions/ EV and Hybrid Drive SystemsNo. of employees: 1,233


ItemsControl Limits


Max. Average





Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency





ItemsMax. Average

Measured levels

ＳＯｘ

Smoke and dust

Smoke and dustHeating furnaces

Water Quality

ItemsControl Limits


Max.

Okazaki East PlantGamagori Plant

ItemsMax.


Average

Address: 24-3 Hama-cho, Gamagori City, Aichi 443-0036 JapanMajor products: Automatic transmission componentsNo. of employees: 529

Water Quality

Air Quality


Air Quality

5.0～9.0

10

－

20

3,000

2.22

144

1.07

0.30

5.8～8.6

10

10

10

2

0.5

0.5

1

3

3

0.1

1

300

15

2

20 degrees min

0.45

ND

ND

ND

ND

ND

ND

3.16

0.1

0.1

6.9～7.0

2.3

1.2

ND

ND

6.6～7.2

5.5

2.9

ND

ND

0.02

81

0.07

0.002

0.02

91

0.07

0.004

7.2～7.8

0.8

3.2

ND

ND

ND

ND

0.1

ND

ND

ND

ND

ND

1.5

0.016

100

0

6.5～8.0

1.5

3.9

ND

0.2

ND

ND

0.1

ND

ND

ND

ND

ND

2.0

0.02

100

0.1

* 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)* Total for septic tanks: 75 persons, 16 m3/day





Colon bacilliAddress: 3-2-7 Shimizu-cho, Takahama City,Aichi 444-1312 JapanMajor products: Remanufacture of automatictransmissionsNo. of employees: 126

AWQUIS JAPAN Co., Ltd.

Items Control Limits(incl. agreed limits)

Measured levels

Max. Average

Water Quality

－

３０

３０

３０

－

6.9

7.3

3.3

0.4

ND

6.5～7.6

9.7

13.0

2.0

ND

50


工機部本社工場





Colon bacilli



Facility Names Control Limits(incl. agreed limits) Average

ＳＯｘ

ＮＯｘ

ＳＯｘ

Smoke and dust

Measured levels

Address: 1-1 Oiri, Obata-cho,Okazaki City, Aichi 444-3502 JapanMajor products: Automatic transmissions/ EV and Hybrid Drive SystemsNo. of employees: 1,233


ItemsControl Limits


Max. Average





Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency





ItemsMax. Average

Measured levels

ＳＯｘ

Smoke and dust

Smoke and dustHeating furnaces

Water Quality

ItemsControl Limits


Max.

Okazaki East PlantGamagori Plant

ItemsMax.


Average

Address: 24-3 Hama-cho, Gamagori City, Aichi 443-0036 JapanMajor products: Automatic transmission componentsNo. of employees: 529

Water Quality

Air Quality


Air Quality

5.0～9.0

10

－

20

3,000

2.22

144

1.07

0.30

5.8～8.6

10

10

10

2

0.5

0.5

1

3

3

0.1

1

300

15

2

20 degrees min

0.45

ND

ND

ND

ND

ND

ND

3.16

0.1

0.1

6.9～7.0

2.3

1.2

ND

ND

6.6～7.2

5.5

2.9

ND

ND

0.02

81

0.07

0.002

0.02

91

0.07

0.004

7.2～7.8

0.8

3.2

ND

ND

ND

ND

0.1

ND

ND

ND

ND

ND

1.5

0.016

100

0

6.5～8.0

1.5

3.9

ND

0.2

ND

ND

0.1

ND

ND

ND

ND

ND

2.0

0.02

100

0.1

* 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)* Total for septic tanks: 75 persons, 16 m3/day





Colon bacilliAddress: 3-2-7 Shimizu-cho, Takahama City,Aichi 444-1312 JapanMajor products: Remanufacture of automatictransmissionsNo. of employees: 126

AWQUIS JAPAN Co., Ltd.

Items Control Limits(incl. agreed limits)

Measured levels

Max. Average

Water Quality

－

３０

３０

３０

－

6.9

7.3

3.3

0.4

ND

6.5～7.6

9.7

13.0

2.0

ND

51


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

Mutsumi Kawamoto

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 FY2013

(Apr. 2013 - Mar. 2014).

Date of publication: October, 2014

Next planned report: Spring of 2015 (June)

Consolidated: ¥1,053 billion (fiscal year ended March 31, 2014)Non-consolidated: ¥939.1 billion (fiscal year ended March 31, 2014)

Consolidated: 23,603 (as of March 31, 2014)Unconsolidated: 14,369 (as of March 31, 2014)

52


Documents

AISIN AW...AISIN AW strives to make effective use of natural resources and energy, and actively implements measures to minimize use of environmentally harmful substances. AISIN AW