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Last January at the North American International Auto Show, I explained the roots of
DENSO’s Green Ways run deep, very deep. All the way down through thousands of years of oriental culture.
I spoke about how DENSO’s environmental philosophy permeates every facet of DENSO’s global business; how we are continuing to work toward an advanced automotive society in which automobiles and people can coexist without impact to the Earth, and how the oriental philosophy of consideration requires a reverence for nature.
It was a philosophical speech aimed at helping you understand the foundation of our consideration for the environment. This consideration remains a long-standing principle throughout global DENSO. In fact, one of the key management principles embedded in our official DENSO Philosophy reads, “Environmental preservation and harmony with society.”
Last fall, our parent company, DENSO Corporation announced its EcoVision 2010, our global environmental plan. We’ve asked you here today not to just talk, but to walk the walk.
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As Matt said, environmental consideration is at the very core of this company, dating back to our humble beginnings in 1949. It is rooted in our culture. DENSO puts a premium on protecting the environment in our business practices.
I’m here today to tell you this is not simply lip service.
We genuinely feel it is our responsibility as a manufacturer to make products while consuming fewer resources, less energy, and reducing emissions of environmentally hazardous substances.
When DENSO says it will make every effort to control and reduce water consumption, we mean it. When DENSO says it is committed to the pursuit of a society where automobiles and people can coexist in harmony, we mean it. When DENSO says it will heighten environmental awareness among employees as it tackles new goals, we mean it.
We call this DENSO’s Green Ways. Just as we are world No. 1 leaders in many DENSOmanufactured products, we want to be leaders in our consideration for the environment.
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I don’t have to tell you that in today’s society people rely on automobiles. People enjoy the comfort and convenience they afford. In today’s technology-driven world, we can’t live without them. In fact, the latest estimate shows about 800 million cars and trucks on the world’s roads today. With the rapid expansion of the Chinese and other Asian markets that number will top a billion soon.
It’s no secret DENSO is in the business of engineering and making parts for these automobiles. What we don’t want kept secret is our commitment to running our business in a way that’s environmentally friendly – from R&D, product development, and manufacturing, to our employees working individually to reduce environmental impact – we pay attention to how we affect the world around us.
Today, I’d like to announce DENSO’s five-year Environmental Action Plan for North
America. This plan is our response to putting into action DENSO’s worldwide EcoVision
2015, our most recent 10-year environmental strategy released in November.
While DENSO prides itself on long-term business thinking, we recognize there may be less immediacy to a 10-year strategy. As environmental issues are ever-changing in complexity and scope, companies can’t wait until tomorrow to consider the burdens they pose on nature and people today. Hence, our five-year North American Action Plan.
The framework for our Action Plan is built on four key areas:
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Developing products that consider performance and environment improvement – We call that Eco-Product.
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Reducing environmental impact of our manufacturing facilities – We call that Eco-
Factory.
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Consolidating environmental management – We call that Eco-Management.
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And lastly, encouraging employee environmental activities and increasing interactions with the communities in which DENSO operates – We call that Eco-
Friendly.
Our chief goals as we put our plan into action are:
 one, help prevent global warming,
 two, recycle resources, and
 three, reduce environmentally hazardous substances.
These are what we’ll use to measure our success in each of the key areas of our Action Plan.
Let me give you some examples.
In the next five years, DENSO aims to reduce harmful substances in emissions, and, in turn, help prevent the greenhouse effect by developing additional parts for clean energy vehicles such as hybrids. Same with our diesel common rail systems, which DENSO sells to heavy equipment manufacturers in North America – we’re intent on improving diesel technologies and products that contribute to industry-leading, fuel consumption performance and cleaner exhaust.
Examples of commercialized North American products designed for higher fuel efficiency are
DENSO’s SC alternators and fine fuel-atomizing injectors. Our SC alternator, manufactured in Tennessee, uses DENSO’s innovative stator assembly process, which raised fuel efficiency by 10 percentage points over the previous generation.
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By 2010 our goal is to eliminate from DENSO products and DENSO manufacturing processes four environmentally hazardous substances – mercury, cadmium, hexavalent chromium and lead. DENSO co-developed the world’s first mercury-free discharge lamp system, and our starters use lead-free brushes.
Topping our list is a plan to adopt an environmental efficiency index to rank products in terms of environmental impact through their life cycles – from design and development, production and usage, to disposal. Our products will be assigned a green value calculated by determining a product’s performance function and dividing by its environmental burden. We’ll be able to compare products’ “eco-efficiency ratings” from one generation to the next and plan improvements.
Our goal is to promote “perfect energy” factories that minimize energy loss and reduce CO2 emissions by 18 percent from 2004 levels. And in our new Technical Center expansion
(getting under way next door), we’re implementing LEED criteria, which sets high standards for energy efficiency, water conservation, use of recycled materials and ventilation. LEED is a voluntary national construction or renovation system that stands for Leadership in Energy and Environmental Design.
We plan to reduce North American landfill waste by 75 percent of our 1999 level by 2010.
We aim to stay on the leading edge of waste consolidation and promote reduction, reuse and recycling wherever possible.
Across North America, DENSO is consolidating environmental management in order to work out the most comprehensive and effective strategies for minimizing environmental impact.
Each of our North American group companies will continuously evaluate environmental risk and develop preventive actions for accidents and violations through checklists, audits and information sharing. Together we will develop green procurement guidelines for all our parts and materials suppliers. All our manufacturing companies will maintain ISO 14001 certification, a voluntary standard of excellence for environmental management.
At DENSO, we foster a climate where employees voluntarily participate in community programs such as the River Rouge cleanup, which last year attracted a record number of
DENSO employees and friends.
We will double efforts to proactively disclose useful environmental information to employees and enhance our communication tools to actively communicate with stakeholders.
Obviously, environmental leadership is no small priority at DENSO. One of this country’s greatest leaders, John F. Kennedy, once said,
“I look forward to an America which will not be afraid of grace and beauty, which will protect the beauty of our natural environment, which will preserve the great old American houses and squares and parks of our national past and which will build handsome and balanced cities for our future.”
Kennedy made that statement more than 40 years ago.
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Today, at DENSO, we, too, want to protect the grace and beauty of America. We hereby declare that we will contribute to people’s happiness through research and development that is in harmony with the environment. We hereby declare to promote conservation activities by concentrating the wisdom and effort of every DENSO employee. That is our commitment, and we stand by it.
We recognize that environmentally oriented company management is the management style of the 21 st century. By doing our utmost to remain a forerunner among environmentally oriented companies, DENSO hopes to realize a sustainable automotive society.
We’ve already provided key parts for eco-friendly hybrid cars that consume less fuel, and we’ve developed a system that significantly improved the energy efficiency of refrigeration equipment. We’ve already made products that act to reduce or oxidize harmful emissions such as hydrocarbons, carbon monoxide and nitrogen oxides. We’ve already developed lighter, energy-saving products such as radiators and engine ECUs, and most of you are aware that we’ve developed the world’s first CO
2 air conditioning system, which replaced the use of ozone-depleting fluorocarbons.
But our environmental efforts will not stop here. Our business is expanding globally as well as here in North America, and we clearly understand the importance in staying aggressive in our approach to environmental conservation.
DENSO’s Green Ways represent a continuous journey along an ever-evolving road, and
Denso wants to lead the caravan of ecologically bent supplier companies on the path to environmental preservation and harmony with society.
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