Medium- to Long-Term Environmental Targets and Initiatives

Here at the Kobe Steel Group, we are committed to environmentally friendly business activities and implement initiatives in each of the following six categories, in accordance with our Basic Environmental Management Policy.

Self-evaluation
O: Progressed as planned
: Some issues remaining
X: Plan not achieved

Category	Long-term policy	Medium-term targets	Achievements during fiscal 2011	Initiatives for fiscal 2012	Self-evaluation
1. Environmentally friendly manufacturing
Measures against global warming	To save energy, reduce CO2 emissions and help prevent global warming through every aspect of the Group's business activities.	To achieve voluntary action plan targets set by each industry sector.	Implemented planned energy saving measures at all facilities. Improved specific energy consumption in the Iron & Steel Business by 14.3% and reduced CO2 emissions by 7.7% compared to fiscal 1990.	Implementing planned measures in each business to help achieve sector-specific targets. Taking appropriate action at all locationss to deal with anticipated power shortages, in both summer and winter months	O
Promoting recycling	To continue activities aimed at zero landfill waste.	To reduce the volume of waste sent to landfill in line with voluntary action plans in each sector, focusing particularly on recycling resources from slag in the Iron & Steel Business.	Continued to reduce waste and study the feasibility of recycling technologies in the Iron & Steel Business, in an effort to achieve industry voluntary action plan targets for the volume of waste sent to landfill by fiscal 2015.	Continuing to conduct extensive research into waste reduction and recycling technologies, and examining the feasibility of installing existing recycling technologies. Focusing on further reducing the volume of waste sent to landfill in the Iron & Steel Business in particular.	O
Proper control of chemical substances	To reduce hazardous substances in accordance with the "Kobe Steel Group Policy on Controlling Hazardous Chemical Substances."	To continue to properly control chemical substances on a Groupwide basis. To make voluntary reductions of chemical substances wherever possible.	Took appropriate action in response to the revised Act on the Evaluation of Chemical Substances and the Regulation of their Manufacture, the revised PRTR Act.	Exploring alternative products in order to reduce usage of dichloromethane and naphthalene.	O
Reducing the environmental impact	To make continuing efforts to reduce the impact on the environment through comprehensive voluntary controls.	To reduce the environmental impact of production activities by upgrading pollution control facilities, etc.	Maintained dust generated at the Kakogawa Works to within targeted levels in every month of the year.	Working to reduce dust levels at the Kakogawa Works.	O
2. Contributing to the environment through environmentally friendly products, technologies and services	To make all product development and technical development environmentally accountable, and to create environmentally friendly products and new businesses.	To improve the environmental performance of existing products (contributing to lightweight vehicle development, etc.). To identify long-term priorities with regard to resources and energy, taking into account matters such as legislation and national policies.	Helped to reduce CO2 emissions through Kobe Steel Group technologies, products and services. Reduced CO2 emissions by approximately 40.3 million tons through Kobe Steel Group products in fiscal 2011.	Continuing to contribute to the environment through our products, technologies and services and focusing on research and development to create new technologies and products.	O
3. Disclosure of environmental information	To take active steps to disclose environmental information and improve communication among stakeholders.	To adequately disclose information to all stakeholders via media such as annual reports and the company website.	Disclosed environmental information via channels such as our Sustainability Report, the company website and environmental monitors. Showcased Kobe Steel Group environmental products and technologies at exhibitions.	Continuing to ensure adequate disclosure.	O
4. Cooperation with the local community	To promote harmony with the local community in terms of the environment.	To continue clean-up activities around company locations, support environmental activities and encourage environmental volunteers.	Carried out activities to make the areas around our facilities cleaner and more beautiful and took part in Hyogo's New Forest Project, the Rokko Mountains Greenbelt Development Project, and Kids Eco-challenge 21.	Continuing to carry out activities to make the areas around our facilities cleaner and more beautiful, engaging in forest improvement activities, and organizing environmental education activities for children.	O
5. Full staff participation	To ensure that every employee of the Kobe Steel Group is constantly aware of the environment.	To continue with Eco Office activities and environmental accounting in order to raise environmental awareness, to make all employees more sensitive to environmental issues through environmental training and education, and to create a climate in which legal compliance is regarded as second nature.	Raised awareness of legal compliance and improved employees' ability to identify risks via training at all levels. Increased the number of households taking part in our environmental household accounting scheme, Kobelco Eco-Life Notes, to 4,743 families.	Continuing to raise awareness, educate and improve employees' ability to identify environmental issues, through training at all levels and e-learning.	O
6. Comprehensive risk management	To direct ceaseless efforts in a systematic and organized way to reduce risks.	To reduce administrative guidance from government authorities and complaints from local residents to zero. To explore the possibility of environmental management in line with domestic practices at overseas locations.	Verified legal compliance at individual locations and group companies via environmental audits and verification surveys, and carried out risk reduction activities. Conducted overseas environmental surveys at three group company sites in Singapore and Malaysia. Unable to completely eliminate government guidance and complaints from local residents throughout the Kobe Steel Group.	Continuing to maintain groupwide management systems and establishing mechanisms to ensure legal compliance at all locations, through activities such as environmental audits and verification surveys.