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 Sustainability Report 2009
Message from the President
Overview of the Kobe Steel Group
1. ITmk3 Ironmaking Technology
2. Upgraded Brown Coal
Corporate Social Responsibility and Corporate Governance
Strengthening Compliance
Highlights on Society
Contributing to Society
Relations with Customers and Business Partners
Relations with Shareholders and Investors
Creating an Attractive Working Environment
Disaster Prevention Activities
Eco Highlights
Policy and Framework for Environmental Management
Countermeasures for Air Emission Problem at Steelworks
Material Balance
Medium-Term Environmental Targets, Results and Evaluation
Measures Against Global Warming
Resource Recycling Measures
Proper Control of Chemical Substances
Reducing the Environmental Burden
Environmental Accounting
Products, Technologies and Services to Benefit the Environment
Contributing to the Environment through R&D
Disclosure of Environmental Information
Cooperation with the Local Community
Promotion of Employee Initiatives
Thorough risk management
Emission Data of Production Facilities
Reader Evaluations
Third-Party Comment and Editorial Postscript
machinary
Sustainability Report 2010
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 2009
Environmental Accounting

With a quantitative understanding of the costs and effects of environmental protection measures, the Kobe Steel Group is using an environmental accounting method evaluating investment and effectiveness for more cost-effective environment management.
Environment-related Investment
To reduce environmental impact, investment in the building and maintenance of environment-friendly facilities is ongoing, and wide-ranging environment-related measures have been introduced. Improvements to efficiency are also being made by eliminating some production processes.
Total environment-related capital investment (Parent only)
Total environment-related capital investment (Kobe Steel)
Total environment-related maintenance costs (Parent only)
Total environment-related maintenance costs (Kobe Steel)
Total energy-saving-related capital investment (Parent only)
Total energy-saving-related capital investment (Kobe Steel)
Values above graphs indicate total summed up from 1970.

Capital investment for fiscal 2008 totaled approximately 9.6 billion yen and expenditure reached about 43.7 billion yen. Some 49% of this expenditure went to atmospheric pollution prevention, 14% went to water pollution prevention, and 23% went to waste and by-product processing. Also, about 3.2 billion yen, or 7% of total expenditure, was spent on research and development.
Breakdown of Capital Investment and Expenditure (Parent only)
(unit: billion yen)
Category Capital expenditure Costs
Environment protection measures Atmospheric pollution prevention 3.12 21.33
Water pollution prevention 4.89 6.27
Measures to prevent global* warming Energy-saving measures 0.38 -
Recycling Processing of by-products and wastes 1.19 10.20
EMS formulation, maintenance, education - 0.01
Monitoring Monitoring and measuring environmental impact - 0.46
Personnel costs for monitoring environmental measures - 1.65
R&D Eco products, lowering environmental impact of manufacturing processes - 3.22
Community activities Planting, support for environmental groups, publicity - 0.06
Others Levies on volumes of pollutants - 0.46
TOTAL 9.58 43.66

*Expenditure on measures to prevent global warming is included as operations. Therefore, only capital investment is listed.

Environment Conservation Effect
For effects of environmental conservation, please refer to Measures to Prevent Global Warming and Resource Recycling.
The benefit of investment to control dust is shown as the amount of dustfall.

Topics
Highly Rated by Development Bank of Japan

In 2009, Kobe Steel was assessed as having a "Highly Advanced Approach to Environmentally Responsible Management," the highest environment rating* offered by the Development Bank of Japan (DBJ). This rating is the result of Kobe Steel's efforts to strengthen its environment management system and develop environment-friendly products.

* Implemented as a part of the DBJ's environmentally rated financing system. A company's environmental management is assessed and favorable financing extended based on three rating stages.


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