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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. During fiscal 2007, a range of measures was implemented to deal with the plant emissions problem that came to light in 2006. Overall, progress is largely being made to meet plan objectives, but some issues remain unresolved in terms of global warming countermeasures and building a recycling-based society, due to the effects of increases in production.

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 2007	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.	Fujisawa Plant gained ISO14001 qualification, Kobe Corporate Research Laboratories gained EA21 certification, and Environment Management System (EMS) certification was completed for all workplaces in the parent company. Among Group companies, 11 acquired this latter certification during fiscal 2007.	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 2007, the Kobe Steel Group used 226 PJ of energy. In the Iron and Steel Sector, reflecting increased production, CO₂ emissions were 0.1% higher 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 fiscal 2007, the volume of landfill waste originating from Kobe Steel Group companies was approximately 290,000 metric tons, and the recycling rate was 93.9%, compared with a target for fiscal 2008 of 98.4%.
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.	Transfers of substances subject to PRTR registration were reduced in volume, and information continued to be compiled and shared for the Group overall.	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.	Dust-control measures such as installing windbreak netting at the Kakogawa Works were implemented on an ongoing basis. Also, switching of fuels used at the Chofu and Takasago Plants to those with low sulfur content is continuing, to control SOx 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.	Product development and sales promotions were undertaken throughout the Group. A compact, screw-type generator, the Micro Steam Energy Generator (M.S.E.G.), named Steam Star, was awarded the Prime Minister’s Award in the Japan Industrial Techniques Grand Prix.	O
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.	To provide a better overall view of environmental activities, a new section entitled Material Balance, with graphs showing CO₂ emissions, etc. were added to the Sustainability Report.	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 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.	More formal education and training on environmental issues was provided and continued for various staff ranks. The Summer Eco Style Campaign and Winter Energy Saving Activities were again promoted as Eco Office activities. KOBELCO Eco Life Note activities were implemented.	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.	Environmental audits and verification surveys were undertaken on an ongoing basis with external consultants (11 sites for Kobe Steel, 27 sites for Group companies). Improvements have been made to activities or events that run the risk of violating legislation, including those for Group companies.	O