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Sustainability Report 2008

Kobe Steel Group Sustainability Report 2008

Through Diverse Businesses and Activities, the Kobe Steel Group Contributes to a Better Society

Table of Contents
Message from the President
Overview of the Kobe Steel Group
Special Feature: Quality Assurance
Case 1 Iron & Steel Sector: Kobe Works
Case 2 Welding Company: Fujisawa Industrial Operations
Case 3 Aluminum and Copper Company: Moka Plant
Case 4 Machinery & Engineering Company: Takasago Works
Corporate Social Responsibility
Social Report
Relations with Stakeholders
Working in Harmony with Local Communities
Relations with Customers and Business Partners
Relations with Shareholders and Investors
Maintaining a Pleasant Working Environment
Disaster Prevention Activities
Environmental Report
Environmental Management
Basic Policy and Framework for Environmental Management
Progress on Countermeasures to the Steelworks Emissions Problem
Material Balance
Medium- and Long-Term Environmental Targets, Results and Evaluation
Environmental Activities & Performance
1. Ensuring all aspects of manufacturing take the environment into account (1) Global Warming Countermeasures
1. Environmental Activities & Performance (2) Building a Recycling-based Society
1. Environmental Activities & Performance (3) Reducing Hazardous Substances
1. Environmental Activities & Performance (4) Lowering the Environmental Impact (Air, Water, Noise, Odors, Soil)
1. Environmental Activities & Performance (5) Environment-related Investment and Environment Accounting
2. Products, Technologies and Services to Benefit the Environment
3. Contributing to Environmental Conservation through R&D
4. Disclosure of Environmental Information
5. Cooperation with the Local Community
6. Promotion of Employee Initiatives
7. Thorough Risk Management
Emission Data of Production Facilities
Group Companies
Third Party Comment and Editorial Postscript

The Kobe Steel Group has established a symbol mark with the aim to cultivate an "environmental mind" among its employees and to enable an environment image to take root.

Editorial Policy
The content of this report was selected, written and edited by the Report Production Subcommittee of the CSR Committee in consultation with all relevant divisions and companies within the Kobe Steel Group. Also taken into consideration were topics of interest to stakeholders and the significance (materiality) of business activities. This year's Report features a special section that provides an introduction on how different businesses within the Group deal with the issue of quality assurance.

In addition to the usual report content, we have included new material on environmental contributions in the section on Products, Technologies and Services, with a focus on technical development connected with environmentally friendly products. We have also included a continued update on countermeasures we have taken in response to the emissions incidents that occurred in fiscal 2005.

This report was formulated with reference to other works, notably the GRI Guidelines, 3rd Edition as a general reference; Guidelines for Environmental Reporting, 2007 Edition for environmental matters; and for disaster prevention, a PR paper published on August 1, 2005 by the Working Group of the Central Disaster Prevention Council on corporate evaluation and business continuity.

Period and Scope Covered
The Sustainability Report 2008 presents the Kobe Steel Group's achievements in environmental protection and community activities in fiscal 2007 (April 1, 2007 to March 31, 2008). Some data from previous years are also included. The report includes the Group's basic stance on environmental protection and social contributions. It also describes past, current and future activities.