|| As one of the world's leading suppliers of automobile
systems and components, DENSO is striving to reduce the impact
of the car on the environment. With this in mind, we are implementing
numerous initiatives that influence all stages of the life of
the car, from manufacturing processes where DENSO is directly
involved, through car use and end-of-life stages. In June 2000,
we formulated DENSO EcoVision 2005. This Vision provides the
foundation for environmental action plans initiated by DENSO
and its consolidated subsidiaries and affiliates, and details
concrete measures and targets related to environmental issues.
The resulta comprehensive approach to environmental activities
utilizing the resources of the entire DENSO Group. The following
are just some of the steps we are taking in this area.
| Based on DENSO's own product recyclability appraisal method, we
are working to ensure that a higher proportion of the car can be recycled.
We set ourselves a clear target: 95% of DENSO automobile components
to be recyclable by fiscal 2005. These efforts are aimed at European
Union regulations that stipulate an actual recycle rate for end-of-life
cars of 95% by 2015. In fact we have already cleared the first hurdle,
achieving a 96.9% recyclability rate for automobile components in
the year under review. We are now focusing on maintaining this high
recyclability rate and achieving more gains. Despite available technology
that enables the recycling of some components, the high cost of this
technology, the need to build infrastructure, and the degraded quality
of recycled material, all mean that actual recycle rates have still
not matched the recyclability of components. So at DENSO, we are now
developing new recycling technologies and pushing ahead with reuse
and remanufacturing businesses to improve the actual component recycle
|DENSO AND DUPONT:
DEVELOPING COMPOSITE RECYCLE TECHNOLOGY FOR RADIATOR END TANKS
| Nylon-based radiator end tanks currently used in cars are recycled
using a crushing process. Unfortunately, the process cannot recover
material properties that have severely degraded during the life of
the tanks. This limits the reuse of the crushed material. The inherent
inefficiency in the process means the great majority of radiator end
tank material is sent to landfills. In an attempt to rectify this,
DENSO has joined hands with DuPont Engineering Polymers to enable
the recycling of nylon-based radiator end tanks using new technology.
The new technology can recover degraded nylon material with minimal
losses. DENSO has already succeeded in producing a radiator end tank
made from reclaimed material, and it is currently undergoing evaluation
in a test vehicle.
| In order to control and reduce the use of environmentally harmful
chemicals in its operations, DENSO has compiled a chemical substance
databasethe Material Chemical Assessment System (MACAS). The
database, which became fully operational in April 2001, lists over
1,400 primary chemicals used to produce DENSO products and secondary
chemicals such as cleaning agents employed in manufacturing processes.
The MACAS database allows DENSO to keep a close watch on chemical
usage and releases. The database is a vital tool in reducing the volume
of environmentally harmful chemicals used in DENSO's operations.
INDUSTRIAL WASTE AND RESOURCE MANAGEMENT SYSTEM
| DENSO has developed and introduced a system to manage the volume
of resources it uses and to verify the amount of waste reused in its
operations. Using proprietary bar code scanning systems, DENSO can
accurately measure and monitor the volume of waste and scrap materials
generated at its facilities. This data helps DENSO to reduce waste
volumes, cut back on waste management costs, and utilize resources
more effectively. This system can be integrated with another DENSO-developed
productthe advanced vehicle operation system (AVOS). AVOS uses
GPS and a network of communication satellites to track the location
of vehicles. Fitted to waste disposal vehicles, AVOS allows DENSO
to verify that all waste is disposed of appropriately and in accordance
with relevant regulations by monitoring waste transportation routes
and records. DENSO began sales of this system, sold as "Eco-Manage,"
in December 2001.
|PROGRESS ON FLUOROCARBON
RECOVERY AND DESTRUCTION
| In anticipation of Japan's Fluorocarbon Recovery and Destruction
Law that came into effect in April 2002, DENSO joined hands with Japan
Automobile Manufacturers Association Inc. and the Japan Auto Parts
Industries Association, to help build a recovery and destruction system
for chlorofluorocarbon (CFC-12) substitute HFC-134a. The project includes
putting in place necessary infrastructure. As part of the system,
in May 2001, DENSO started transferring HFC-134a it recovers in one-liter
canisters to larger containers. This increases efficiency at destruction
facilities. DENSO has carried out similar operations for CFC-12 since
1998. In the year under review, around 31,000 canisters of CFC-12
and 4,000 canisters of HFC-134a were transferred at three facilities
in Japan. Moreover, DENSO has put in place its own recovery and destruction
system to ensure the safe disposal of refrigeration vehicle fluorocarbons,
which are different to those used in car air-conditioning systems.