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| Promoting Energy Conservation |
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TDK is giving top priority to attaining the target of reducing CO2 emissions 7% from FY 1990 levels by March 2010, as cited in the TDK Environmental Action 2010 plan, and is promoting energy conservation throughout the company. To this end, individual business units at TDK are promoting their own energy conservation activities with the aim of achieving an additional 1.5% or more improvement over the more than 1% improvement in energy consumption compared to the previous year's level, which constitutes the nonbinding target set down in the Energy Conservation Law. TDK believes that the key to preventing global warming lies in controlling CO2 emissions through energy conservation.
The chart below indicates trends in CO2 emissions since 1990. CO2 emissions in 2004 were 370,724 ton-CO2, representing a 1.0% decrease from the previous year's level, or a 6.3% increase from that in 1990. |
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Trends in TDK's Emissions in Basic CO2 Units
Total results of TDK's own production and R&D plants and those of its domestic subsidiaries
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Note: TDK's standards for CO2 emissions conversion are as follows:
Figures for the energy used by each facility are calculated by multiplying the volume of electricity and fuel (such as gas and oil) purchased by a CO2 conversion factor.
The CO2 conversion factor and domestic corporate price index are figures used in the 2004 Follow-up Report (surveyed in July 2005) on the Voluntary Action Plan for Global Warming Prevention Activities issued by the electrical and electronics industries.
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| Improving Energy Management Organization |
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| METI's site inspection at a Type 1 Energy Management-Designated Plant MCC Akita (December 2004) |
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TDK started energy management within the framework of its environmental management system, integrating all manufacturing plants of the TDK Group in Japan into a single energy management system. TDK's Type 1 Energy Management-Designated Plants underwent site inspections by the Ministry of Economy, Trade and Industry (METI) and received high marks for their energy management activities. With the introduction of an internal audit system for energy management in FY 2005, we will strive to enhance our energy management activities. |
| Reduction of CO2 Emissions Related to Distribution |
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| In April 2006, the Law concerning the Rational Use of Energy will be partially revised. The amended law will require cargo owners who order more than a certain scale of freight shipping to report their energy consumption and energy conservation plans to the competent ministry. TDK has started determining its energy consumption by using its domestic distribution management system. In FY 2005, TDK aims to improve the precision of that measurement to develop energy conservation plans. |
| Utilizing Renewable Energy |
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TDK's Kofu Plant applied for a grant under NEDO's* 2005 field test projects for new solar energy generation technologies and was approved. TDK will install a solar energy generation system with an output of 300 kW in FY 2005 and start joint research activities with NEDO for five years, starting in FY 2006.

*NEDO is the abbreviation for the New Energy and Industrial Technology Development Organization. It is an independent administrative institution that promotes the development and introduction of new energy and the development of industrial technologies.
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| Energy Conservation Efforts in FY 2004 |
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Before improvement Electric heating |
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After improvement Oil-fired hot water heating |
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1) Changing the heat source of air-conditioning systems that provide constant temperature and humidity

The Sakikata Plant of TDK-MCC, a TDK Group company, changed from electric heating to oil-fired hot water heating as the heat source for its air-conditioning systems that provide constant temperature and humidity, thus conserving energy.

| Investment |
¥10 million |
| Effect of energy conservation |
Crude oil equivalent effect: 240 kl/year |
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Breakdown |
Reduced electricity |
1,230 MWh/year (crude oil equivalent: 325 kl/year) |
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Increased fuel |
85 kl/year |
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2) Reducing the number of hydraulic pumps in operation by consolidating those used by molding machines

TDK's Shizuoka Plant previously employed two 22-kW hydraulic pumps for each ferrite magnet molding machine: one for the press and the other for the filler. By installing an inverter on the hydraulic pump for the press and an accumulator at a system branch on the filler side, we were able to cut down to only one 22-kW hydraulic pump for each molding machine.
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| Investment |
¥4.5 million/unit |
| Effect of energy conservation |
Reduction in electricity: 1,848 Mwh/year |
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Breakdown |
Average reduction in electricity use per unit |
154 Mwh/year/unit |
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Number of units modified |
12 units |
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