Medium- to Long-Term Environmental Objectives and Initiatives

The Kobe Steel Group is committed to environmentally friendly business practices and has been implementing activities in six key areas according to the Fiscal 2010-2012 Midterm Environmental Management Plan.

We will continue to pursue such initiatives under the new Fiscal 2013-2015 Medium-Term Environmental Management Plan.

Self-evaluation
Progressing as planned
Some issues remaining
Plan not achieved

Areas for Implementation	Long-Term Policies	Medium-Term Targets	Fiscal 2010-2012 Results	Initiatives for Fiscal 2013-2015	Evaluation
1. Environmentally friendly Manufacturing
Measures Against Global Warning	To save energy, reduce CO2 emissions and combat global warming for in every aspect of the Group's operations.	To achieve the voluntary action plan targets set for each industry sector.	Target values set by all industries and for Kobe Steel business units were generally met.	To implement thorough energy-saving measures, geared toward achieving goals set by plans in each industry for the realization of a low-carbon society.
Promoting Resource Recycling	To continue activities aimed at zero landfill waste.	To reduce the volume of waste sent to landfills according to voluntary action plans set for each sector, focusing particularly on recycling slag from the Iron & Steel Business	Implemented plans that reflect each industry, achieving targets for landfill waste and resource recycling, with an overall resource recycling rate for Kobe Steel of 96.2%.	To achieve the goals set in voluntary action plans for each industry through using the appropriate amount of raw materials and auxiliary materials development of resource recycling, new recycling technologies and new applications, etc.
Appropriate Management of Chemical Substances	To reduce hazardous substances in accordance with the "Kobe Steel Group Policy on Controlling Hazardous Chemical Substances."	To continue with proper Groupwide chemical substance controls, and to make voluntary reductions of chemical substances wherever possible.	Took appropriate action in response to revisions to the Act on the Evaluation of Chemical Substances and the Regulation of their Manufacture, and to the Pollutant Release and Transfer Register Law, and suitably disposed of waste electronic materials containing PCBs. Strove to reduce and replace hazardous substances as one part of efforts to reduce total waste.	To continue proper groupwide chemical substance management, with efforts to reduce or replace substances associated with risks (dichloromethane, lead, etc.).
Reducing the Environmental Impact	To make continuous efforts toward reducing the impact on the environment through comprehensive voluntary controls.	To reduce the environmental impact of production activities by upgrading pollution control equipment, etc.	Installed the latest flue gas desulphurization and denitrification equipment at the sinter plant at Kakogawa Works in fiscal 2010. While the volume of dustfall (steelworks influence value) at the Kakogawa Works in fiscal 2010 exceeded voluntary targets in certain months, fiscal 2011 and 2012 targets were met consecutively.	To continue meticulous management and facilities controls, with efforts to reduce the environmental impact from soot and other such factors.
2. Contributing to the Environment through Products, Technologies and Services	To keep all product and technical development environmentally friendly, and to create environmentally sustainable products and new businesses.	To improve the environmental performance of current products (by contributing to automotive lightweighting, etc.). To identify long-term priorities with regard to resources and energy, taking into account matters such as legislation and national policies.	Contributed to reduced CO2 emissions through Kobe Steel Group products, technologies and services. CO2 emissions were reduced by approximately 40.5 million tons through Kobe Steel Group products in fiscal 2012.	To strengthen initiatives to achieve a low-carbon society through development and sale of renewable energy (such as binary power generation) and hydrogen equipment, in addition to promotion of other high-grade products that contribute to the environment.
3. Disclosure of Environmental Information	To take active steps to disclose environmental information and improve communication with stakeholders.	To adequately disclose information to all stakeholders via media such as annual reports and the company website.	Disclosed information via the Sustainability Report, the company website, public monitors, and other channels. Introduced Kobe Steel Group environmental products and technologies through exhibitions at a variety of expos.	To continue with disclosure and increase communication with all stakeholders.
4. Cooperation with Local Communities	To promote coexistence and cooperation with local communities in regard to the environment.	To continue clean-up activities around company locations, support environmental activities and encourage environmental volunteerism.	Began forest maintenance at two locations in Hyogo Prefecture (Miki City and Rokko Mountains in Kobe), and took part in children’s center environmental education outreach (sponsored by Kobe City).	To introduce the KOBELCO Green Project, which includes new initiatives, such as the KOBELCO Forest Fairy Tale Prize, in addition to forest maintenance and educational outreach programs.
5. Full Employee Participation in Initiatives	To constantly improve the environmental awareness of all Kobe Steel Group employees.	To raise environmental awareness by continuing with Eco Office activities and environmental accounting, to make all employees more sensitive to environmental issues through environmental training and education, and to foster a climate in which legal compliance is second-nature.	Implemented stratified training to increase awareness of compliance and environmental risks. Introduced an online registration system for the KOBELCO Eco Life Notes, which promotes environmental consideration at home, and encouraged participation.	To raise the environmental awareness and expertise of all employees through environmental training (stratified education, e-learning), and to continue promotion of the KOBELCO Eco Life Notes.
6. Thorough Risk Management	To pursue systematic and deliberate efforts to reduce risks.	To reduce administrative guidance from government authorities and complaints from local residents to zero. To explore the best approach to environmental management in line with practices in Japan at overseas locations.	Promoted familiarity with environment-related laws at the Kobe Steel Group Environmental Conference, evaluated compliance through environmental audits and other such methods, and offered support for on-site reduction of environmental risks, promoting a greater overall level of environmental management. Carried out on-site environmental assessments at 11 overseas group locations in China, Malaysia, Thailand, India and elsewhere. Was unable to completely eliminate administrative guidance from the government and complaints from local residents throughout the Kobe Steel Group.	To establish mechanisms, such as environmental audits, to ensure compliance at all locations, in addition to updates to group-wide environmental management systems. To continue with on-site environmental assessments and promote a greater level of environmental management for overseas Group companies.