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Basic Policy and Framework for Environmental Management

Basic Policy and Framework for Environmental Management
The Kobe Steel Group regards conservation of the global environment as an issue of major importance impacting on all living beings, and recognizes that we have a mission to make the worldwide environment cleaner and healthier for the next generation. We have formulated a Basic Policy for Environmental Management and are working to promote environmentally friendly management in all aspects of corporate operations. The Global Environment Committee set up in 1992 was reconstituted as the Environmental Management Committee in 2002 to undertake environmental management for the Group as a whole. Since the works emissions problem was uncovered in 2006, we have been putting added effort into strengthening environmental controls, setting up a new Environmental Administration Committee as an advisory body to the Board of Directors.
Basic Policy for Environmental Management:
Increasing Corporate Value Through the Implementation of Sound Group Environmental Management
In our quest to be an advanced, environmentally responsible corporate enterprise, the Kobe Steel Group is committed to:
1.
Engaging in environmentally friendly production practices
2. Contributing to the environment through products, technologies and services
3. Coexisting and harmonizing with society
By these means, we will fulfill our corporate social responsibilities while increasing our corporate value.
Diagram of Medium-Term Group Environmental Management Policies

Diagram of Medium-Term Group Environmental Management Policies
Environmental Goals
To promote environmentally responsible Group operation, we formulated a Medium-Term Environmental Management Plan that defines six focus areas: 1) thorough commitment to environmentally friendly manufacturing practices; 2) contributing to the environment through our products, technologies and services; 3) disclosing environmental information; 4) coexisting and harmonizing with society; 5) achieving participation of all employees in environmental programs; and 6) thorough pursuit of risk management.

In manufacturing, we are stringent about observance of all relevant laws and regulations, and the environmental-friendliness of all aspects of our activities, including the siting of operations, construction of facilities, installation of equipment, purchasing, production, distribution, and product life-cycles. We supply products, technologies and services that are beneficial in reducing environmental impact, and we work to involve all staff in efforts to maintain good communication with the local community.

Director's Message
"The Kobe Steel Group is making steady progress in environmental management"

Hiroshi Sato, Executive Vice President and Chairman of the Environmental Management Committee

This financial year of 2008 is the last year of our 2006-2008 Medium-Term Environmental Management Plan, and the whole Group is currently working to meet its targets.

Two years have now passed since the emissions problem at our steelworks was discovered, and during this period we have implemented a number of countermeasures, both technical and procedural. As a result we have been able to work together with all Group companies on ensuring observance of rules and regulations, training all staff in compliance, strengthening our environmental management system, and improving our facilities to better protect the environment. We will continue to work hard to maintain constant awareness of environmental considerations among all staff.

With regard to global warming, in order to meet the first-stage greenhouse gas reduction targets of the Kyoto Protocol, all plants and works are active in pursuing energy-saving measures. We are also continuing efforts toward building a "recycling-based society" through measures to reduce waste and the use of toxic substances. Furthermore, we are directing efforts to developing environmentally friendly products in order to make a greater contribution with products, technologies and services that benefit the environment.

In all operations and activities throughout the Kobe Steel Group, decision-making that takes the environment into account is seen as a vital management issue. As chairman of the Environmental Management Committee, I am pressing to make environmental management an established part of our corporate culture.
Hiroshi Sato, Executive Vice President and Chairman of the Environmental Management Committee
Group Environmental Management System
Environmental management in the Kobe Steel Group is promoted through the Environmental Management Committee and the Environmental Administration Committee. In 2002, the Global Environment Committee, set up in 1992, was reconstituted as the Environmental Management Committee to strengthen efforts to bring a management response to environmental problems. Various endeavors have been carried out under the Kobe Steel Group’s environmental management. Subcommittees have been set up to study specific issues such as countermeasures to global warming, and promote activities to make a swift and well-targeted response. Also, ongoing efforts have been made to strengthen environment management following the discovery of the works emissions problem in 2006, with the setting up of a new Environmental Administration Committee, which includes outside experts, as an advisory body to the Board of Directors.
Environmental Administration Committee (October, 2007)
Environmental Administration Committee (October, 2007)

Kobe Steel Group Environment Meeting (July, 2007)
Kobe Steel Group Environment Meeting (July, 2007)
Company-Wide Environmental Management System
Company-Wide Environmental Management System
Building an Environmental Management System
The Kobe Steel Group is continuously and productively engaged in efforts to ensure compliance with all relevant laws and regulations and to enhance the environment. To this end we encourage obtaining certification that includes ISO14001 certification in environment management systems (EMS), the Japanese Ministry of Environment's Eco-Action 21*1 and the Kobe Environmental Management System (KEMS)*2 of the Kobe Environmental Forum.

Since the emissions problem discovered in May 2006, we have been working to strengthen environmental management systems at all works, plants and Group companies. In April 2007, Fujisawa Industrial Operations obtained ISO14001 certification, and in January 2008 the Kobe Corporate Research Laboratories gained EA21 certification. Between April 2007 and March 2008, 11 workplaces at nine Group companies also obtained certifications.

Obtaining certification for environmental management systems at all workplaces in the parent company has now been completed. In April 2008 a further two workplaces at one Group company were certified, leaving only five major workplaces that are still on their way toward gaining certification.
Operating Locations That Have Received Environmental Management System Certification
Sector/Company Operating Location EMS Type Date of Certification
Iron and Steel Kakogawa Works*3 ISO14001 February 1998
Kobe Works ISO14001 August 1998
Takasago Works ISO14001 March 1999
Welding Ibaraki Plant ISO14001 July 2001
Fujisawa Industrial Operations ISO14001 April 2007
Saijo Plant EA21 February 2005
Aluminum & Copper Moka Plant ISO14001 December 2000
Chofu Works ISO14001 March 2001
Daian Plant ISO14001 December 2002
Machinery & Engineering Takasago Works ISO14001 March 2002
Harima Plant ISO14001 June 2002
Engineering Division ISO14001 June 2002
Technical Development Group Kobe Corporate Research Laboratories EA21 January 2008

Topics
Sun Aluminium Industries, Ltd.
In April 2006 we launched a 15-month program aimed at gaining ISO14001 certification. This included checking up on environment-related legislation and regulations, studying the environmental impact, and putting in place rules and standards. In July 2007 we became ISO14001 certified. Together with activities under ISO9001 (obtained in September 1999), we have started working to include ongoing environmental management system activities.
 
Kobe Corporate Research Laboratories
Preparations began in July 2006 to obtain EA21 certification. With regard to a system for implementation, groups were set up for specific purposes, such as cutting electricity consumption or reducing wastes, in addition to the individual organizational divisions such as the research labs, to achieve greater effectiveness. To hasten wide understanding and activate employees, about one third of staff members were designated as activity leaders, and with all staff involved, certification was obtained in January, 2008.

It seems to be rare for a whole research institution to receive this certification, however we will continue to work in unison on activities to upgrade the environment.
Kobe Corporate Research Laboratories
Kobe Corporate Research Laboratories
Group Companies That Have Received Environmental Management Certification
Group Company Scope of Certification Type of EMS Date of Certification*5
Kansai Coke and Chemicals Co., Ltd. Kakogawa Plant ISO14001 March 1998
Head Office EA21*1 November 2005
Amagasaki Office EA21*1 March 2007
Kobelco Eagle Marine Engineering Co., Ltd Kure Plant, Takasago Office (overall certification as Eagle Industry Co., Ltd.) ISO14001 June 2006
Shinko Kobe Power, Inc. Shinko Kobe Power Station ISO14001 August 2002
Shinko Special Tube Co., Ltd. Chofu-Kita Plant ISO14001 February 2007
Shinko Logistics, Ltd. Kobe Office, Amagasaki Logistics Center KEMS*2 February 2005
Marine Transport Department ISO14001 February 2006
Kanto Logistics Center EA21*1 March 2007
Nippon Koshuha Steel Co., Ltd. Head Office, Osaka Branch, Nagoya Branch, Kita-Kanto Sales Office, Toyama Sales Office, Toyama Plant, NK Mex K.K., NK Seisen K.K. ISO14001 October 2006
Shinko Engineering & Maintenance Co., Ltd. Takasago Plant (Certified as part of Kobe Steel's Takasago Works) ISO14001 March 1999
Shinko Wire Company, Ltd. Head Office, Amagasaki Plant EA21 June 2007
Onoe Plant EA21 October 2007
Shinko Bolt, Ltd. Head Office, Plant EA21 September 2007
Pro-Tec Coating Company Head Office Plant ISO14001 December 1996
Kobe Welding Wire Co., Ltd. Head Office ISO14001 October 2002
Shinko Taseto Co., Ltd. Certified as part of Kobe Steel's Fujisawa Industrial Operations ISO14001 April 2007
Taseto Co., Ltd. Certified as part of Kobe Steel's Fujisawa Industrial Operations ISO14001 April 2007
Shinko Welding Service Co., Ltd. Certified as part of Kobe Steel's Fujisawa Industrial Operations ISO14001 April 2007
Hanshin Yosetsu Kizai Co., Ltd. Okayama Plant EA21*1 January 2007
Shinsho Kobe Welding Co., Ltd. Head office, Tokyo Branch Office, Nagoya Sales Office, Okayama Sales Office (Certified as part of Shinsho Corporation) ISO14001 October 2000
Thai-Kobe Welding Co., Ltd. Head Office Plant, Bangkok Office ISO14001 January 2007
Kobe Mig Wire (Thailand) Co., Ltd. Head Office Plant (Certified as part of Thai-Kobe Welding Co., Ltd.) ISO14001 January 2007
Shinko-North Co., Ltd. Head Office, Kasumigaura Plant, Tokyo Branch, Osaka Branch ISO14001 July 2005
Shinko Fab Tech, Ltd. Certified as part of Kobe Steel's Chofu Plant ISO14001 March 2001
Shinko Leadmikk Co., Ltd. Head Office, plant (Moji) ISO14001 April 2005
Shinko Daian Sohgo Service Ltd. Certified as part of Kobe Steel's Daian Plant ISO14001 December 2002
Shinko Metal Products, Co., Ltd. Head Office, Plant EA21*1 April 2007
Shinko Moka Sohgo Service, Ltd. Certified as part of Kobe Steel's Moka Plant ISO14001 December 2000
Niko-Aluminum Industries, Ltd. Certified as part of Kobe Steel's Moka Plant ISO14001 December 2000
Kobelco & Materials Copper Tube, Ltd. Hatano Plant ISO14001 June 2000
Sun Aluminium Industries, Ltd. Head Office, Plant ISO14001 July 2005
Kobe Aluminum Automotive Products, LLC Head Office Plant ISO14001 May 2007
Singapore Kobe Pte. Ltd. Head Office Plant ISO14001 July 2005
Kobelco Sanki Service Co., Ltd. Certified as part of Kobe Steel's Takasago Works ISO14001 March 2002
Shinko Techno Engineering Co., Ltd. Certified as part of Kobe Steel's Takasago Works ISO14001 March 2002
Shinko Inspection & Service Co., Ltd. Certified as part of Kobe Steel's Takasago Works ISO14001 March 1999
Shinwa Wood Works, Ltd. Takasago Plant (Certified as part of Kobe Steel's Takasago Works) ISO14001 March 1999
Kobelco Research Institute, Inc. Takasago Plant (Certified as part of Kobe Steel's Takasago Works) ISO14001 March 1999
Sputtering Target Division ISO14001 February 2004
Applied Chemistry Division, Material Evaluation Division, Engineering Mechanics Division, LEO Division, Planning & Administration Department ISO14001 July 2006
Kobelco Construction Machinery Co., Ltd. Development & Production Division (Hiroshima) ISO14001 November 2001
Ogaki Plant (Certified as part of Shinko Engineering Co., Ltd.) ISO14001 February 1999
Kobelco Cranes Co., Ltd. Okubo Plant ISO14001 March 2001
Kobelco Eco-Solutions Co., Ltd. Head Office, Technical Research Laboratory, Harima Plant, branches and other operating locations ISO14001 December 1999
Shinko Engineering Co., Ltd. Head Office, plant (Ogaki) ISO14001 February 1999
Shinko Electric Co., Ltd. Toyohashi Plant ISO14001 December 1998
Ise Plant (including Toba) ISO14001 January 1999
Genesis Technology, Inc. Nishiwaki Plant, Tokorozawa Plant, Kyushu Plant, Kobe Office ISO14001 March 2004
Japan Superconductor Technology Co., Inc. Moji Plant EA21 March 2008
Head Office, Seishin Plant EA21 March 2008
Ceratechno Co., Ltd. Head Office, Akashi Plant, Bizen Plant EA21 April 2008
Shinsho Corporation All operating locations in Japan ISO14001 October 2000
Shinko Real Estate Co., Ltd. Building Management Dept. KEMS*2 December 2006

*1 Eco-Action 21 is a certification and registration system for environmental management established by the Ministry of the Environment. Based on ISO14001, it provides a more convenient approach to environmental management.
*2 The Kobe Environmental Management System (KEMS) was established by the Kobe Environmental Forum to make it easier for companies to take concrete steps to protect the environment while reducing costs.
*3 Includes Group companies.
*4 Takasago Works received expanded certification in 2002.
*5 When multiple sites have received certification, the date shown is the earliest certification date.