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Medium-Term Environmental Targets, Results and Evaluation

The Kobe Steel Group promotes manufacturing that takes full account of the environment in all respects, including curtailing global warming, building a recycling-based society, controlling hazardous substances and so on, on the basis of our fiscal 2006 - 2008 Medium-Term Environmental Management Plan. At the end of fiscal 2008, progress had been made largely according to plan, but some aspects of measures to reduce global warming, resource recycling and environmental risk management remained and all efforts will be made to complete them.

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 2006-2008	Future activities	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, 13 worksites in 11 companies gained ISO14001 certification, and 12 worksites in 9 companies were EA21 certified.	Strict compliance with all legislation, agreements, etc, and maintaining management systems throughout the Group.	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 2008, the Kobe Steel Group used 219 PJ of energy. CO₂ emissions in the Iron and Steel sector were reduced by 4.7% of 1990 levels through rationalized operations and lower production, but further efforts are needed to meet Voluntary Action Plan targets.	Meeting Voluntary Action Plan targets in each business sector.
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.	Some steel slag was disposed of in landfill rather then recycled to boost slag quality control. As a result, the recycling rate for the whole Group was 95.9% in 2008, short of the 98.4% target.	Cutting volumes of waste sent to landfill in each business sector to meet Voluntary Action Plan targets. Special efforts must be made to recycle steel slag.
Controlling Hazardous Chemical 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.	Continued compiling statistics and sharing information Group-wide to reduce movements of substances requiring PRTR notification. Logging and information displays were implemented for facilities using asbestos, and disposal was based on government guidelines. Disused equipment containing PCBs was logged, and legal disposal commenced.	Continued efforts on the control of chemical substances throughout the Group. Voluntary reductions in the use of hazardous substances to be made where possible.	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.	Further dust-control measures implemented at the Kakogawa Works such as installing nets as windbreaks. Chofu and Takasago Works switched to low-sulfur fuels to reduce sulfur oxides, and construction work began on new de-nitrification equipment at the Kakogawa Works.	Lowering environmental impact of all production activities by expanding or upgrading pollution control facilities.	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 hydrogen fuel cells and other energy-saving technologies owned by the Group prepared for sharing. Cooperative efforts made in the Group on product development and sales promotion. Steam Star received award for energy saving.	Upgrading environment-friendly aspects of existing products (contributing to lightening vehicle weight, etc.)	O
3. Disclosure of environmental information	To take active steps to disclose environmental information and improve communication among interested parties.	Provide stakeholders with all appropriate information through the Sustainability Report and company websites.	The Material Balance page was added to the Sustainability Report to make the overall picture of environmental activities easier to grasp. CO₂ emissions data was shown in graph form for greater clarity.	Promote further disclosure of information using the Sustainability Report and company websites.	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.	Activities to beautify the environment around plants and works, and the systems of support for the Kobelco Environment Creation Fund and Kobelco Natural Environment Conservation Charitable Trust Fund were continued.	Continue activities to beautify the environment around plants and works, support further environment activities, encourage environment volunteers, etc.	O
5. Full staff participation	To boost constant environment awareness in every employee of the Kobe Steel group	To extend opportunities for education and training on environmental issues to all employees and broaden the Eco Office activities.	Regular inclusion of education and training on environmental issues for staff at all levels. Eco Office activities continued in the form of the Summer Eco Style campaign and winter energy-saving activities. Kobelco Eco Life Notebooks (notebooks for environmental accounting) were introduced.	Continuing Eco Office activities and environmental accounting to heighten awareness of environmental issues. Increasing all employees' sensitivity to environmental issues through education and study, and cultivating a workplace culture in which compliance with the laws and regulations is expected.	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.	Environment management committees were set up and environmental management systems redesigned and upgraded. The Kobe Steel Group received warnings and administrative guidance from government authorities on five occasions during fiscal 2008.	Rigorous environmental management in all Group companies in Japan and overseas. Targeting zero administrative guidance from government authorities and zero complaints from the public.