Medium- and Long-Term Environmental Targets, Results and Evaluation || KOBE STEEL, LTD.

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		Environmental Management Sustainability Report 2007

Medium- and Long-Term Environmental Targets, Results and Evaluation

The Kobe Steel Group is striving to make all aspects of its manufacturing activities environmentally friendly, incorporating measures to help prevent global warming, to help build a recycling-based society, and to reduce hazardous substances, based on a medium-term environmental management plan that runs from fiscal 2006 to 2008.

After the air emission problem came to light, in 2006 a range of measures for complete risk management was systematically implemented.

Self-evaluation
O: progressed as planned

: some issues remaining
X: plan not achieved

Item	Long-term policy	Fiscal 2006-2008 Medium-term targets	Main achievements for Fiscal 2006	Self-evaluation
Environmental management	To constantly maintain and strengthen environment management systems in a planned and organized way.	To fulfill legal responsibilities, ordinances and agreements, and strengthen management systems throughout the Group.	ISO14001 qualification at the Kakogawa and Kobe Works was resumed after a temporary suspension. Among Group companies, Kobe Special Tube (Chofu-Kita Plant) gained ISO 14001 certification, and Hanshin Yosetsu Kizai, Kobelco Logistics (Kanto Distribution Center), and Kansai Coke and Chemicals (Amagasaki Plant) acquired Eco-Action 21 certification.	O
1. Environmentally friendly manufacturing
Measures against global warming	To help prevent global warming by cutting CO₂ emissions wherever possible.	To promote energy-saving measures, with each business sector aiming to achieve its voluntary action plan targets.	In fiscal 2006, the Kobe Steel Group used 231 PJ of energy. In the Iron and Steel sector CO₂ emissions were 3.2% lower than fiscal 1990 levels.
Building a recycling-based society	To further pursue activities aimed at zero landfill waste.	To reduce landfill waste in fiscal 2008 by 20% of the fiscal 2004 level.	In 2006, the volume of landfill waste originating from Kobe Steel Group companies was approximately 220,000 metric tons, and the recycling rate was 95.2%. All Group companies were required to ascertain their volume of waste and draw up reduction plans.
Reducing hazardous substances	To reduce hazardous substances in accordance with the "Kobe Steel Group Policy on Controlling Hazardous Chemical Substances"	To establish Group-wide control systems for hazardous chemicals, especially VOCs, asbestos and PCBs.	Group-wide information was compiled and shared to reduce transfers of substances subject to PRTR registration. Asbestos facilities were listed and labeled, and work commenced on appropriate disposal in accordance with government guidelines.	O
Reducing environmental impact	To make continuing efforts to reduce the environmental impact through thorough voluntary controls.	To reduce the environmental impact of production activities by upgrading facilities to prevent pollution of all types.	At the Kakogawa Works dust-generating locations are better sealed, dust-control nets have been installed, and water-sprinkler systems for roads have been improved. Fuels have been switched to those with low SOx and CO₂ emissions	O
2. Products, technology and services for the environment	To make all product development and technical development environmentally accountable, and to create environmentally friendly products and new businesses.	To place priority on energy savings and new energy sources, and continue to improve the environmental performance of existing products and technologies.	Information on all Group-owned technologies relating to energy savings and new energy sources in addition to hydrogen fuel cells, was compiled and shared.
3. Disclosure of environmental information	To take active steps to disclose environmental information and improve communication among interested parties.	To promote greater disclosure using such media as annual reports and websites.	The earlier Environmental Report has been published as the Sustainability Report, with improved data from Group companies, environmental targets, results and evaluations, and third party comments.	O
4. Harmony with society	To promote harmony with the local community in terms of the environment.	To continue clean-up activities around works, plants and offices, support environmental activities and encourage environment volunteers.	Clean-up activities around works and plants and financial support schemes were continued.	O
5. Full staff participation	To boost constant environment awareness in every employee of the Kobe Steel group	To broaden the Eco Office activities and extend opportunities for education and training on environmental issues to all employees.	Summer Eco Style Campaign and Winter Energy Saving Activities promoted as Eco Office activities. Education and training on environmental issues provided for various staff ranks. Training in environmental compliance provided to all employees.	O
6. Thorough risk management	To direct ceaseless efforts in a systematic and organized way to reduce risks.	Reduce administrative guidance from government authorities, and complaints from local residents to zero. Establish environmental management systems for Group companies where environment risks are great.	In response to the air emission problem at the steel works, a new environmental management system was formulated that included setting up an environmental management committee. Data from environment recordings from Kobe Steel and main Group companies was compiled and analyzed, and local joint surveys were made. Environmental audits and verification surveys was undertaken with external consultants (11 sites for Kobe Steel, 14 sites for Group companies).