Environmental Management Environmental Sustainability Report 2005

Environment-friendly Production (1)

[1] Measures against Global Warming

Global warming is believed to be caused by the increase of greenhouse gases, such as carbon dioxide and methane, created by human activity. The Kyoto Protocol went into effect in February 2005, and preventive measures are being undertaken at an international level. Kobe Steel and its group companies are implementing energy-saving activities and reviewing energy use in their operations, in accordance with voluntary action plans in their respective industries. Energy Savings in Production Processes At steelworks and plants, efforts have been made to greatly reduce energy consumption. Measures include implementing concatenated processes, introducing large exhaust heat recovery equipment, and minimizing the number of heating and cooling processes. At the same time, we are developing new ironmaking technologies for higher energy savings and lower impact on the environment. Coal accounts for around 90% of Kobe Steel's energy used. City gas, which emits a low level of CO2, has been increasingly used since 1990.   Breakdown of Energy Sources and Volume of Energy Used (Non-consolidated, fiscal 2004)       Voluntary Action Program Voluntary Action Program in Industry Industry Segment (Trade Association) Target Iron and Steel (The Japan Iron and Steel Federation) Reduce energy consumption in production processes by 10% between 1990 and 2010. Another 1.5% reduction from the 1990 level is also planned through such measures as using waste plastic in blast furnaces, provided the necessary infrastructure (namely collection systems) is built. Aluminum (Japan Aluminium Association) Target a 10% reduction in specific energy consumption between 1995 and 2010. Rolled Copper (Japan Copper and Brass Association) Target a 7.5% reduction in specific energy consumption in production between 1995 and 2010. Industrial Machinery (The Japan Society of Industrial Machinery Manufacturers) Reduce CO2 emission by 12.2% between 1997 and 2010. (Evaluating the CO2 emission coefficient of utility power based on the fiscal 1997 coefficient) Aluminum and Copper Company The Aluminum and Copper Company is promoting energy savings in accordance with the voluntary action plan of the Japan Aluminium Association and Japan Copper and Brass Association. In fiscal 2004, the Daian Plant started operating a cogeneration plant (a NEDO-subsidized project), utilizing liquid natural gas, which resulted in an annual reduction of crude oil equivalent to 1,600 kiloliters. CO2 emission leveled off in fiscal 2004, but the energy consumption rate increased slightly during this period. In fiscal 2005, Kobe Steel will strive to improve its energy consumption rate by promoting energy-saving activities. Changes of Energy Consumption Rate and CO2 Emission (estimated value)   Iron and Steel Sector At Kakogawa and Kobe Works, concatenated processes in steelmaking, recovering and reusing waste heat from processing, and new energy-saving technology have been implemented since the 1970s. In 2000, a high level of energy savings was achieved by utilizing waste resources effectively such as waste plastic in the blast furnace, updating the facilities, and making use of new technologies. In addition, environment-conscious products are actively being developed. Such products include high strength steel sheet, which makes automobiles lighter, and heat-releasing aluminum sheet (Kobehonetsu Aluminum), which enables energy savings in electrical instruments. CO2 emission in fiscal 2004 increased from the previous year, as production increased. However, the emission rate declined from fiscal 2003 as a result of various measures such as improving the power generation efficiency at the steelworks. Changes in CO2 emission (estimated value) and CO2 emission rate index (Iron and Steel Sector)   Energy Consumption Rate (Kakogawa Works)   Changes in Energy Consumption under Steel Industry's Voluntary Action Program   Kakogawa Works Presented with 5th Aozora Award Kakogawa Works won the 5th Aozora Award in June 2004 from the Hyogo Council for Air Environment Conservation (Chairman: Governor of Hyogo Prefecture) for its remarkable achievement in air quality control, including measures against global warming. This award is presented to organizations or individuals, who are role models in Hyogo Prefecture, for their achievements in improving air quality. Kakogawa Works has actively promoted environmental activities including ISO14001 certification and waste reduction measures. It won recognition also for reducing CO2 emissions by cutting coal consumption, using alternative energy sources such as waste plastics. Energy Savings in Logistics Kobe Steel is striving to improve distribution efficiency by unifying administrative and back office operations. Efforts include achieving optimum and quick domestic and overseas raw material distribution as well as optimum and quick product distribution inside the plants and works and from the plants and works to customers. In addition, each office and group company is also making efforts to reduce carbon dioxide emission. Efforts include introducing eco cars and "idling stop" campaigns for all commercial cars in our business operations. One of Japan's largest unloaders is operating at Shinko Kobe Power Station. Iron and Steel Sector The Iron & Steel Sector has strived to improve the transportation efficiency of its steel products by selecting optimal routes and means and upgrading distribution information systems such as a ship allocation system. Since 2003, action has been taken to cut the travel distance of trucks by delivering products by ships or freight cars to the customers' nearest possible locations. Logistic changes affecting about 20,000 tons of cargo per month in 2003 and 2004 resulted in a 3% reduction of CO2 emission. Of the 20,000 tons of cargo that used to be sent to customers directly from steelworks by trucks, 16,000 tons are now transported by both ships and trucks, and 2,000 tons by freight cars. As for the remaining 2,000 tons, transportation time by ship was lengthened, while the distance for trucks was shortened. Under the three-party alliance, Kobe Steel cooperates with Nippon Steel Corporation and Sumitomo Metal Industries in logistics. One of the cooperative measures includes joint operation of domestic vessels. Returning ships, which were empty before, are now able to take on as cargo the steel of any of the three companies. This improves transportation efficiency and contributes to lower energy consumption. Furthermore, as for domestic raw material transportation, Kobe Steel plans to replace the current iron ore carriers used between Kakogawa and Kobe with larger ships in 2007 to reduce the environmental burden. Modal Shifts New loading cranes Container of steel wire rod coils Welding Company The Welding Company's efforts include selecting appropriate modes of transportation in accordance with shipment volume and modal shifting to ships and railways. Aluminum and Copper Company The Aluminum and Copper Company promotes joint distribution with other companies in the same field. For example, the Moka Plant is increasing transportion efficiency through joint vehicle allocation with Sumitomo Light Metal Industries, Ltd. The Chofu Plant is also expanding its energy-saving measures such as joint truck delivery and joint utilization of warehouses. Also Moka Plant changed the landing port for some of its imported aluminum ingots from Yokohama Port to Hitachinaka Port, which is closer to Moka, reducing the transportation distance in half. Also, when using Yokohama Port, efforts are made to improve transportation efficiency by taking on exports as cargo on the return trip. As a result, the energy used in the domestic distribution of imported ingots is reduced by 7%. Group Company Activities Undertaken to Reduce Global Warming Group company Office location Activity Shinko Wire Company, Ltd. Kakogawa, Hyogo Amagasaki, Hyogo Increased efficiency in trucking products. Kobelco Logistics, Ltd. Kobe Kakogawa, Hyogo Introduced Japan's largest-class unloader for unloading coal at Shinko Kobe Power Station, achieving Japan's highest cargo-handling efficiency. Shinko Kohan Kako, Ltd. Ichikawa, Chiba Changed standard commuter buses to eco-friendly versions. Kobe Special Tube, Co., Ltd. Shimonoseki, Yamaguchi Continuous improvement of loading ratio of trucks and vessels. Kobe Welding Wire Co., Ltd. Fukuchiyama, Kyoto Reduced the number of transportation vehicles by adopting larger vehicles for product shipping. Shinko Taseto Co., Ltd. Fujisawa, Kanagawa Switched from gasoline forklifts to electric lifters. Hanshin Yosetsu Kizai Co., Ltd. Okayama, Okayama Reduced power consumption rate of pumps at plant facilities by using inverters to control rotating speed. Kobe Leadmikk, Ltd. Kitakyushu Requested logistic companies to use vehicles that meet vehicle exhaust gas standards. Sun Aluminium Industries, Ltd. Chiba Replaced wood and steel packing containers with foldable plastic ones to reduce weight. Kobelco Sanki Service Co., Ltd. Takasago, Hyogo Reduced trial operation time for compressor maintenance by 5%. Shinsho Corporation Tokyo Osaka Adopted hybrid car to reduce CO2 emission. Shinko Engineering Co., Ltd. Ogaki, Gifu When receiving parts, requested mixed loads. Mixed loading is also used for product shipment. Shinko Electric Co., Ltd. Toyohashi, Aichi Ise, Mie Reduced the number of trucks to transport products by increasing the mixed loads. This enabled the number of trucks to be reduced by over 20%. Installed cogeneration equipment at the Ise Plant in June 2004. ECOWAY Office Activities Under the Kobe Steel Group's Ecoway Office Activities,, air conditioning is set at 28 degrees C (82 F) in the summer and 20 degrees C (68 F) in the winter at the head offices, branch offices and sales offices. In the summer, employees are no longer required to wear neckties. Other activities include turning off lights during lunchtime, using energy-saving lighting, and using energy-saving computers. For example, at the Okinawa Sales Office employees wear Kariyushi shirts, or cool looking Okinawan Aloha shirts, from April to November. Also, at Kobe Welding Wire, Co. Ltd., meticulous measures are taken, such as turning off air conditioners when the temperature is high and the humidity is low, based on the temperature-humidity discomfort index. Kariyushi Shirts at Okinawa Sales Office "Summer Eco-Style" poster promotes no necktie attire.