Environmental Management Environmental Sustainability Report 2005

Thorough Risk Management

In order to minimize environmental risk, it is important to recognize potential risk in our day-to-day operations and improve the sensitivity to risk. The Kobe Steel Group undertakes thorough risk management, taking environment, disaster prevention, and labor safety into consideration, in addition to observance of laws. Promoting Compliance In 2000, Kobe Steel established the Corporate Code of Ethics to provide guidelines for business conduct. The guidelines provide parameters for operating within the acceptable norms of society under established laws and regulations. In 2002, a standing Compliance Committee was established as an advisory body to the board of directors to promote the reinforcement of the system. In 2003, the Corporate Code of Ethics was revised to respect overseas cultures and customs, solve problems and investigate causes, and clarify accountability. Furthermore, an internal reporting (whistle blowing) system was organized to enable employees to report possible in-house misconduct. Corporate Code of Ethics Observe the laws and regulations, as well as the standards of society, and conduct business in a fair and sound manner. Contribute to society by providing excellent products and services. Respect each employee's personality and individuality and create an open work environment. Respect stakeholders. Be a good corporate citizen and contribute to the community. Contribute to protecting the environment and building a more affluent and comfortable society. Respect overseas cultures and customs and contribute to local development. Environmental Audit At Kobe Steel's works and plants, audits are carried out by a company-wide environmental administration department in compliance with risk management guidelines based on internal and external ISO14001 audits. With respect to group companies, the confirmatory survey is carried out on the observance condition of the environment-related laws and regulations. In fiscal 2004, no violation of the law was recognized in any of Kobe Steel's works, plants and group companies.