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 Sustainability Report 2008
Message from the President
Overview of the Kobe Steel Group
Case 1 Iron & Steel Sector: Kobe Works
Case 2 Welding Company: Fujisawa Industrial Operations
Case 3 Aluminum and Copper Company: Moka Plant
Case 4 Machinery & Engineering Company: Takasago Works
Corporate Social Responsibility
Relations with Stakeholders
Working in Harmony with Local Communities
Relations with Customers and Business Partners
Relations with Shareholders and Investors
Maintaining a Pleasant Working Environment
Disaster Prevention Activities
Basic Policy and Framework for Environmental Management
Progress on Countermeasures to the Steelworks Emissions Problem
Material Balance
Medium- and Long-Term Environmental Targets, Results and Evaluation
1. Ensuring all aspects of manufacturing take the environment into account (1) Global Warming Countermeasures
1. Environmental Activities & Performance (2) Building a Recycling-based Society
1. Environmental Activities & Performance (3) Reducing Hazardous Substances
1. Environmental Activities & Performance (4) Lowering the Environmental Impact (Air, Water, Noise, Odors, Soil)
1. Environmental Activities & Performance (5) Environment-related Investment and Environment Accounting
2. Products, Technologies and Services to Benefit the Environment
3. Contributing to Environmental Conservation through R&D
4. Disclosure of Environmental Information
5. Cooperation with the Local Community
6. Promotion of Employee Initiatives
7. Thorough Risk Management
Emission Data of Production Facilities
Group Companies
Third Party Comment and Editorial Postscript
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Sustainability Report 2009
Sustainability Report 2008
Sustainability Report 2007
Sustainability Report 2006
Environmental Sustainability Report 2005
Environmental Sustainability Report 2004
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Environmental Management
Sustainability Report 2008
Message from the President
On the Publication of the Sustainability Report 2008
The Kobe Steel Group: Committed to Being Trustworthy and Useful to Society
Yasuo Inubushi In the more than a century since Kobe Steel was founded in 1905, the Kobe Steel Group has contributed to society through a dedication to skilled manufacturing. Our spirit of craftsmanship has remained unchanged throughout the decades and continues in an unbroken line in the entire Group. It is one of the main pillars supporting our Group Corporate Philosophy.

We are a diverse corporate entity, with operations in iron and steel, welding, aluminum and copper, industrial and construction machinery, engineering, environmental services, wholesale power supply, real estate, electronic materials, and other fields. By further strengthening our commitment to high-end, "Only One" products and quality manufacturing, we will continue to contribute to the betterment of society though our superior technologies, products and services.
Promoting CSR Activities as an Important Policy of Group Management
In our Fiscal 2006-2008 Medium-Term Business Plan, we outlined a vision to maintain profitability and technical capabilities at a high level while setting our sights on further growth. We also defined the promotion of corporate social responsibility (CSR) as a primary Group business policy and recommitted ourselves to strengthening our environmental conservation activities; complying with laws and regulations; dealing honestly with customers, business partners and shareholders; contributing to the well-being of local communities; and creating a pleasant working environment for our employees.

Unfortunately, an in-house investigation conducted two years ago revealed that our Kakogawa Works and Kobe Works had both exceeded permissible air emission standards and that the related data had been mishandled. This seriously compromised the trust that many people had placed in us. Today, we are strongly committed to preventing a recurrence and working hard to restore public confidence by reinforcing our environmental control measures while continuing to improve our environmental facilities.

Our use of many resources and materials has made our operations what they are today. While keeping this fact firmly in mind, we re-dedicate ourselves to contributing to the realization of a prosperous society through a commitment that transcends simple economic activity to include preserving the environment in local communities and reducing the burden placed on the environment by our manufacturing processes. In these ways we will strive to be a corporate group that develops responsibly along with society.
Maximizing Group Capabilities by Strengthening Quality Manufacturing and Expanding the Line-up of Only One Products
Quality manufacturing is born from the synthesis of Group-wide strengths, including the advancement of production technologies; a commitment to stable output; and the transmission of creative solutions; technical expertise and skills on the factory floor. By thoroughly engaging in quality assurance and expanding plant investment and R&D systems aimed at creating further added value, we will enhance our quality manufacturing capabilities while working to create and develop new Only One products. Concentrating our wide-ranging technical expertise on broadening our range of Only One products, we will contribute to society while amplifying the presence of the Kobe Steel Group.

This fiscal 2008 edition of the Kobe Steel Group Sustainability Report explains the environmental measures we are currently implementing while introducing our various CSR programs. I hope it serves as a useful guide to our commitment to sustainability.


June 2008
Yasuo Inubushi
Yasuo Inubushi
President, CEO and Representative Director
Our Corporate Philosophy
1. We provide reliable and advanced technologies, products and services that satisfy customers.
2. We support each employee in developing his or her abilities, while respecting mutual cooperation within the Kobe Steel Group.
3. Through continuous efforts for innovative change, we aim to enhance our corporate values.


With the great support of our stakeholders, we have contributed to the development of society and the happiness of working people by meeting societal needs through the advancement of our technologies, skills, products and services. We have also created a workforce composed of people who respect each other, promote Group harmony, and cooperate as they work together toward a common goal. Amid a dramatically evolving business environment, we remain committed to maintaining a sense of challenge while quickly and appropriately responding to change.

Our Group Corporate Philosophy reflects these concerns. As we develop in step with society, we will work to ensure that these precepts are shared by all Kobe Steel Group employees.
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