|
| |
 |
 |
 |
Environmental
Management
Sustainability Report 2006 |
 |
 |

| Environmental Management |
 |
| Basic Policy for Environmental Management & Implementation
Priorities |
 |

The preservation of the global environment is the
most important issue shared by all living creatures, and it is our responsibility
to ensure that a healthy environment is passed down to future generations.
To protect our irreplaceable planet, the Kobe Steel Group has formulated
a Basic Policy for Environmental Management designed to help us promote
the environmentally responsible management of all of our business operations.
In response to the emissions problems recently discovered at our steelworks,
we reorganized and strengthened our environmental management system.
|
 |
Basic Policy for Environmental Management: Increasing
Corporate Value Through the Implementation of Sound Group Environmental
Management |
 |
In our quest to
become an advanced, environmentally responsible corporate enterprise,
the Kobe Steel Group is committed to:
1)
|
Engaging in
environmentally friendly production practices |
2)
|
Contributing
to the environment through products, technologies and
services |
3)
|
Coexisting
and harmonizing with society |
By these means, we will fulfill our
corporate social responsibilities while increasing our corporate
value. |
|
 |
Environmental Goals |
 |
The Environmental
Management Committee decides which specific steps are taken to promote
environmentally responsible management for the entire Group.
Currently, the Committee has identified six areas to focus on: 1)
thorough pursuit of risk management; 2) thorough commitment to environmentally
friendly manufacturing practices; 3) contributing to the environment
through our products, technologies and services; 4) disclosing environmental
information; 5) coexisting and harmonizing with society; and 6) achieving
participation of all employees in environmental programs.
The Environmental Management Committee is also pushing forward to
implement countermeasures in response to the emissions problem recently
discovered at our steelworks. |
 |

Environmental Management Committee |
| Diagram of Medium-Term Group Environmental Management
Policies |
| |
 |
| Current Status and Evaluation of Medium- and Long-Term
Environmental Goals |
| |
| Item |
Long-Term
Policy |
2006-2008
Goals |
| Environmental
Management |
Implement organizational
and systematic measures to maintain and strengthen the
environmental management system. |
Comply with all laws, ordinances and agreements. Strengthen
the management system of the overall Group. |
| Thorough
Pursuit of Risk Management |
Reduce guidance from administrative
agencies and complaints from local residents, to zero.
Establish environmental management systems in Group companies
that run large environmental risks. |
| Thorough
Commitment to Environmentally Friendly Manufacturing Practices |
Countermeasures
Against Global Warming |
Take various steps to reduce CO2
emissions to help control global warming |
Encourage the adoption of energy-efficient
practices so that action plans can be successfully realized
in all business sectors. |
| Creating a Recycling
Society |
Continue efforts to reduce the generation
of landfill waste to zero. |
By fiscal 2008, achieve a 20% reduction
in landfill disposal compared with fiscal 2004 levels. |
| Reducing the
Use of Hazardous Substances |
Work to reduce hazardous substances
on the basis of the Kobe Steel Group's Management Policy
for Hazardous Chemical Substances. |
Establish an appropriate, Group-wide
management system for hazardous chemical substances (especially
VOCs, asbestos and PCBs). |
| Reducing the
Burden on the Environment |
Continue working to reduce the burden
we place on the environment by thoroughly implementing
self-management. |
Reduce the environmental burden of
manufacturing activity by strengthening the functions
of pollution control equipment. |
| Contributing
to the Environment through Products, Technologies and
Services |
Take the environment into account whenever
products and technologies are developed. Create environmentally
friendly products and new business. |
Give priority to energy savings and
new energy sources. Constantly work to strengthen the
environmental functions of current products and technologies. |
| Disclosing
Environmental Information |
Actively disclose environmental information
and communicate openly with stakeholders. |
Use media such as the annual environmental
report and Web site to disclose information. |
| Coexistence
and Harmony with Society |
Work on coexisting and harmonizing
with society from an environmental perspective. |
Continue beautification programs around
our operating locations, support environmental activities, promote
environmental volunteering, etc. |
| Participation
of All Employees in Environmental Programs |
Work on instilling a constant environmental awareness
in all Group employees.
|
Expand environmental training and education to all
Group employees.
Broaden the scope of eco-office activities.
|
|
|
Self-evaluation
O: Progressing essentially as planned
: Some issues still
to be resolved
X: Plan not achieved |
| Item |
2003-2005
Goals |
Achievement
of
2003-2005 Goals |
Self-
Evaluation |
| Environmental
Management |
Strengthen follow-through efforts to ensure
that all in-house operating locations and research laboratories
receive ISO14001 certification. All Group companies will establish
environmental management systems appropriate to their business
circumstances, scale of operations, etc. |
Environmental management systems were established in all in-house
manufacturing facilities. ISO14001 certification was temporarily
suspended at Kakogawa Works and Kobe Works because of emission
problems, but was later restored.
Environmental management systems were established in 14 Group
companies that place an especially heavy burden on the environment.
|
X |
| Thorough
Pursuit of Risk Management |
Reduce environmental risk and maintain
stable operation, including Group companies. |
Surveys were conducted at Group companies
to determine environmental risks and confirm administrative
conditions. Emissions had exceeded the statutory limits and
other problems were discovered at the steelworks. It became
clear that the existing risk management system was inadequate.
|
X |
| Thorough
Commitment to Environmentally Friendly Manufacturing Practices |
Countermeasures Against
Global Warming |
Establish the foundation for in-house measures
against global warming prior to the First Commitment Period
(2008-2012) under the Kyoto Protocol.
Use primarily subcommittees to conduct economic evaluations
of measures. |
CO2 emissions from
steelmaking operations were reduced by 1.8% compared with 1990
levels. |
 |
| Creating a Recycling
Society |
Reduce the volume of final-disposal waste
by focusing on hard-to-reuse materials. Conduct a survey of
current conditions at Group companies and set numerical targets
for zero emission activities. |
In fiscal 2005, Kobe Steel's total amount
of final-disposal waste was approximately 170,000 tons, with
a recycling ratio of 96.1%. The amount of waste generated by
all Group companies was determined, and plans were laid to reduce
that amount. |
 |
| Reducing the Use of
Hazardous Substances |
Formulate guidelines concerning the management
of hazardous substances based both on the current management
conditions for hazardous materials specified by Kobe Steel and
on customer demand.
|
A management policy for hazardous chemical
substances was formulated, and emergency measures were implemented
for asbestos. |
O |
| Reducing the Burden
on the Environment |
Improve manufacturing processes effective
in environmental protection, introduce the latest equipment
or renovate current equipment, and thoroughly implement self-management. |
We improved the performance of our exhaust
gas treatment equipment and reduced the amount of water we use.
|
 |
| Contributing
to the Environment through Products, Technologies and Services
|
Provide information that contributes to
manufacturing environmental friendly products. Strengthen communication
among in-house segments, internal companies and Group companies.
Aim to enter new business fields. |
We formed a study group on hydrogen fuel
cells and aggressively promoted technologies owned by the Kobe
Steel Group. |
O |
| Disclosing
Environmental Information |
Implement a strategic PR campaign using
various media, including the annual environmental report. |
We issued environmental reports that contain
more information about Group companies and have sponsored various
types of exhibitions as a Group. |
 |
| Coexistence
and Harmony with Society |
Continue to implement existing measures
so that they become well established. |
We continued our funding and other support
programs and dispatched lecturers in environmental education. |
O |
| Participation
of All Employees in Environmental Programs |
Implement environmental education programs
throughout the Group so that they become well established. Add
new elements to eco-office activities and promote them more
aggressively |
We created videos and texts for use in
Group-wide environmental education and training programs. In
fiscal 2005, we also promoted two eco-office campaigns: the
summer Eco-Style Campaign and the Winter Energy-Saving Campaign. |
 |
|
 |
Group Environmental Management System |
 |

In the past, the Kobe Steel Group promoted its
environmental operations through the Environmental Management Committee.
In response to the recent emissions incident, however, we have reorganized
and strengthened our environmental management system by establishing
a new Environmental Administration Committee, which is dedicated to
preventing similar lapses from happening again.
The Environmental Administration Committee includes experts from outside
the Group and is charged with ensuring environmental safety by studying
the formulation, implementation and management of environmental policie
and providing reports and recommendations to the Board of Directors.
Meanwhile, the Environmental Management Committee maintains close
contact with the activities of the Environmental Administration Committee.
It creates subcommittees dedicated to efficiently studying different
designated themes as part of active efforts to promote environmentally
responsible corporate operations.
|
| Company-Wide Environmental Management System |
| |
 |
 |
Composition of the Environmental Administration Committee |
 |

Committee for Following Up Measures
To ensure that no further lapses occur, we established five new subcommittees.
The Committee for Following Up Measures is in charge of making sure
that each subcommittee makes progress in its assigned tasks.
| (1) |
Education Subcommittee
Plans and promotes compliance education, environmental education
and training, and similar programs. |
| (2) |
Organization & Regulation Subcommittee
Reviews organizational restructuring, operational regulations,
etc., and formulates and enforces operational standards that
reflect environmental policy. |
| (3) |
Personnel Subcommittee
Increases the number of employees working in environmental administration
in the Head Office and in environmental administration departments
in other operating locations. |
| (4) |
Facility & Technology Subcommittee
Implements measures related to the installation and technology
of incineration facilities. |
| (5) |
Information Disclosure Subcommittee
Plans and implements information disclosure programs to regain
the trust of local communities. |
Environmental Administration Committee
Works with operating locations to restructure the environmental administration
system and improve the level of administration.
Environmental Audit Committee
Being partly comprised of outside consultants, this section conducts
environmental audits in conjunction with the Environmental Control
& Disaster Prevention Department and the Audit Department.
|
 |
 |
 |
 |
  |
Environmental
Management in the United States |
Kobe Steel USA Inc. (KSU) serves as the
headquarters for Kobe Steel companies in the United States.
Every November, it holds an Environmental, Health and Safety
(EHS) meeting in which member companies report on their activities
and experts give lectures. In 2005, participants from Japan
also attended and explained the importance of pursuing environmental
management as a unified, coherent Group. Opinions were also
exchanged concerning the Kobe Steel Group's environmental policy
and the policies established by KSU.
The Japanese participants later visited six KSU companies to
confirm their environmental management practices. |
 |
 |
|
 |
 |
 |
 |
 |
 |
 |
 |

Hiroshi Sato
Executive Vice President, Kobe Steel, Ltd.
Responsible for the Environmental Control & Prevention Department
|
 |
Placing Our
Highest Priority on the Environment, Promoting Environmental
Management from all Angles
The Kobe Steel Group's Fiscal 2006-2008
Medium-Term Business Plan identifies one of the Group's fundamental
policies as increasing corporate value through the implementation
of Group environmental management. Using our cooperative networks
we have already created, we are disseminating a basic awareness
of the environment throughout the Group with the aim of increasing
corporate value.
In May of 2006, however, we discovered that emissions at our
steelworks exceeded the regulatory limits, and we are now working
in various ways to regain the trust of local residents and administrative
agencies.
Returning to our starting point of giving top priority to environmental
protection, we are diligently working to prevent a recurrence
of infractions while rebuilding our control systems, with an
emphasis on ensuring that all Kobe Steel Group employees understand
the importance we place on the environment.
As the chairman of the Environmental Management Committee, I
am personally committed to ensuring that environmental awareness
and sensitivity are firmly rooted in all Kobe Steel Group employees,
and that we fulfill our corporate social responsibility through
the promotion of sound environmental management. |
|
 |
 |
 |
 |
 |
Environmental Management Based on ISO14001 |
 |

The Kobe Steel Group has obtained ISO14001 certification,
as well as certification through the Japanese Ministry of Environment's
Eco-Action 21 program*1 and the Kobe Environmental
Management System (KEMS)*2 of the Kobe
Environmental Forum. As such, we are engaged in continuous and effective
efforts to improve the environment. In fiscal 2004, we succeeded in establishing
our environmental management system in all of Kobe Steel's manufacturing
locations.
In February 2005, the Kobe Office of Kobelco Logistics, Ltd. received KEMS
certification, followed by ISO14001 certification for its Marine Transport
Department in February 2006. This company has been especially effective
in cutting distribution costs and raising environmental awareness. Similarly,
the Head Office of The Kansai Coke and Chemicals Co., Ltd., received Eco-Action
21 certification in November 2005.
Because of the excessive emissions discovered at our Kakogawa Works and
Kobe Works, certification at these two facilities was temporarily suspended
on May 24, 2006, but was later reinstated on November 16, 2006.
| *1. |
Eco-Action 21 is a certification and registration
system for environmental management established by the Ministry of
the Environment. Based on ISO14001, it provides a more convenient
approach to environmental management. |
| *2. |
The Kobe Environmental Management
System (KEMS) was established by the Kobe Environmental Forum
to make it easier for companies to take concrete steps to protect
the environment while reducing costs. |
|
| Operating Locations That Have Received Environmental
Management System Certification |
| |
| Sector/Company |
Operating
Location |
Date of Certification |
Iron
and Steel
|
Kakogawa Works |
February 1998 |
| Kobe Works |
February 1998 |
| Takasago Works*1 |
March 1999 |
| Welding |
Ibaraki Plant |
July 2001 |
| Saijo Plant*2 |
February 2005 |
| Aluminum
& Copper |
Moka Plant |
December 2000 |
| Chofu Plant |
March 2001 |
| Daian Plant |
December 2002 |
| Machinery
& Engineering |
Takasago Works*1 |
March 2002 |
| Harima Plant |
June 2002 |
| Machinery & Engineering Head Office |
June 2002 |
|
|
List of companies that have received ISO14001 certification
| *1. |
In 2002, Takasago Works received expanded
certification. |
| *2. |
Received Eco-Action 21 certification. |
| Group Companies That Have Received Environmental
Management Certification |
| |
| Group
Company |
Scope of Certification |
Date
of
Certification |
| The Kansai Coke
and Chemicals Co., Ltd. |
Kakogawa Plant, Head Office*2 |
March 1998 |
| Kobelco Logistics,
Ltd. |
Kobe Office*1,
Amagasaki Office*1, Marine
Transport Department |
February 2005 |
| Shinko Kobe Power,
Inc. |
Shinko Kobe Power Station |
August 2002 |
| Sumitomo Titanium
Corporation |
Head Office in Amagasaki, Hyogo Prefecture |
March 1999 |
| Shinko Engineering
& Maintenance Co., Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| PRO-TEC Coating
Company |
Head office, plant |
December 1996 |
| Kobe Welding Wire
Co., Ltd. |
Former Fukuchiyama Plant |
October 2002 |
| Shinsho Kobe Welding
Co., Ltd. |
Osaka Head Office (expanded certification
for Shinsho Corporation's Osaka Head Office) |
July 2001 |
| Kobelco & Materials
Copper Tube, Ltd. |
Hatano Plant |
June 2000 |
| Shinko Fab Tech,
Ltd. |
Within Shinko Chofu Plant |
March 2001 |
| Shinko Leadmikk,
Ltd. |
Head Office (Moji) |
April 2005 |
| Toyotsu Nonferrous
Center Corporation |
Head office, Anjo Plant (acquired through
Toyota Tsusho Group) |
December 2001 |
| Niko-Aluminum Industries,
Ltd. |
Within Kobe Steel's Moka Plant |
December 2000 |
| Shinko-North Co.,
Ltd. |
Head office, plant (CHECK), Tokyo Branch
|
July 2005 |
| SINGAPORE KOBE
PTE.LTD. |
Head office, plant |
July 2005 |
| EarthTechnica
Co., Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| Yachiyo Plant |
September 2000 |
| Kobelco Sanki Service
Co., Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| Shinko Techno Engineering
Co., Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| Shinko Inspection
& Service Co., Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| Shinwa Wood Works,
Ltd. |
Within Kobe Steel's Takasago Works |
March 1999 |
| Kobelco
Research Institute, Inc. |
Within Kobe Steel's Takasago Works (chemical
analysis, material testing) |
March 1999 |
| Within Kobe Steel's Takasago Works (Sputtering
Target Division) |
February 2004 |
| Kobelco Construction
Machinery Co., Ltd. |
Development & Production Division
(Hiroshima) |
November 2001 |
| Kobelco Cranes
Co., Ltd. |
Okubo Plant |
March 2001 |
| Kobelco Eco-Solutions
Co., Ltd. |
Head office, Tokyo and Osaka branch
offices, technical research laboratory, Harima Plant |
December 1999 |
| Shinsho Corporation |
Head offices in Osaka and Tokyo |
October 2000 |
| Shinko Engineering
Co., Ltd. |
Head office (Ogaki) |
February 1999 |
| Shinko
Electric Co., Ltd. |
Toyohashi Plant |
December 1998 |
| Ise Plant (including Toba) |
January 1999 |
| Genesis Technology,
Inc. |
Nishiwaki Plant, Tokorozawa Plant, Kyushu
Plant |
March 2004 |
|
|
List of companies that have received ISO14001 certification
| *1. |
In 2002, Takasago Works received expanded
certification. |
| *2. |
Received Eco-Action 21 certification. |
|