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Medium- to Long-Term Environmental Objectives and Initiatives

The Kobe Steel Group is committed to environmentally friendly business practices. We implement activities in the six key areas of our Basic Environmental Management Policy and have established a Fiscal 2013-2015 Medium- to Long-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 2013 Results	Initiatives for Fiscal 2014
1. Environmentally Friendly Manufacturing
Global-Warming Countermeasures	To save energy, reduce CO₂ emissions and combat global warming in every aspect of the Group's operations.	To engage thoroughly in energy-saving activities, and to achieve voluntary action plans in each industry.	Carried out energy-saving capital investment projects, such as the installation of gas turbines, while also pursuing operational improvements and other ground-level activities.	To work towards achievement of the Keidanren low-carbon society action plan, and continue to implement energy-saving initiatives.
Promoting Resource Recycling	To continue activities aimed at zero landfill waste.	To achieve the goals set in voluntary action plans for each industry by using the appropriate amount of raw materials and auxiliary materials and developing new recycling technologies and new applications.	Pursued plans reflecting the 2015 objectives for each industry, achieving objectives for a portion of business units ahead of time. Achieved a Groupwide resource recycling rate of approximately 98%.	To smoothly pursue plans reflecting targets for each industry, and to proactively engage in recycling measures that surpass the divisions between different business units.
Appropriate Management of Chemical Substances	To reduce hazardous substances in accordance with the "Kobe Steel Group Policy on Controlling Hazardous Chemical Substances."	To continue proper groupwide chemical substance management, with efforts to reduce or replace substances associated with future risks (dichloromethane, lead, etc.).	A small amount of PCB waste was shipped erroneously from the Kakogawa Works. This information was disclosed, and thorough steps were undertaken to identify the underlying cause of the error and prevent the problem from reoccurring.	To aim for Groupwide understanding of harmful substance management via environmental audits and Group environmental conferences. To reduce or replace harmful chemical substances (dichloromethane, lead, etc.).
Reducing the Environmental Impact	To make continuous efforts toward reducing the impact on the environment through comprehensive voluntary controls.	To continue meticulous operating management and facility management, with efforts to reduce the environmental impact from soot and other such factors.	Dustfall at Kakogawa Works in July 2013 was 3.21 t/km² per month, exceeding the voluntary target of 3t/km² per month.	To formulate policies to prevent reoccurrence of problem at Kakogawa Works. To continue meticulous operational management and facility management and reduce environmental impact.
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 strengthen initiatives toward a low-carbon society through development and sale of renewable energy (such as binary power generation) equipment and hydrogen equipment, in addition to promotion of other high-performance products that contribute to the environment.	Established a lateral organization crossing the Kobe Steel Group for hydrogen and fuel cell projects, and achieved some results in the hydrogen fueling station business. Also aimed to strengthen environmental business initiatives, such as through participation with the Kobe FCV^* Promotion Council.	To participate actively in the Kobe FCV* Promotion Council and otherwise contribute to the realization of a low-carbon society. To explore new business opportunities in the energy and low-carbon technology fields.
3. Disclosure of Environmental Information	To take active steps to disclose environmental information and improve communication with stakeholders.	To continue with disclosure and increase communication with all stakeholders.	Disclosed environmental information via the Sustainability Report, company website, environmental monitors and other sources. Introduced Group environmental products and technologies at exhibitions.	To continue with appropriate disclosure.
4. Coexisting and Cooperating with Society	To promote coexistence and cooperation with local communities in regard to the environment.	To operate the KOBELCO Green Project, which includes new initiatives such as the KOBELCO Forest Fairy Tale Prize, while also engaging in forest maintenance and educational outreach programs.	For thee First KOBELCO Forest Fairy Tale Prize, 347 entries from 21 different prefectures were received. Picture books were created from the two winning stories, with approximately 1,700 sets donated to Hyogo Prefecture elementary and middle schools and libraries. Began forest maintenance activities within Ibaraki, Osaka Prefecture, in addition to the two established Hyogo Prefecture locations.	To develop PR activities that raise awareness of the KOBELCO Forest Fairy Tale Prize and increase the number of children participating. To continue carrying out forest maintenance activities and participating in children's center environmental outreach programs.
5. Promoting Initiatives with Full Employee Participation	To constantly improve the environmental awareness of all Kobe Steel Group employees.	To raise the environmental awareness and expertise of all employees through environmental training (stratified training, e-learning), and to continue promotion of the KOBELCO Eco Life Notebook.	Carried out stratified training and environmental seminars to increase awareness of compliance and environmental risks. Promoted participation in KOBELCO Eco Life Notes, aiming for environmental awareness at employees' homes.	To continue with e-learning, stratified training, and other efforts to promote employee environmental awareness and education. To promote general environmental awareness by continuing to encourage participation in KOBELCO Eco Life Notes.
6. Thorough Risk Management	To pursue systematic and deliberate efforts to reduce risks.	To establish mechanisms to ensure compliance at all locations by implementing environmental audits and verification, and maintaining groupwide environmental management systems. To continue with on-site environmental assessments and promote a greater level of environmental management for overseas Group companies.	Inappropriate handling of environmental data occurred at one site under operation by a Group company. Thorough steps were undertaken to identify the underlying cause of the error and prevent reoccurrence. Carried out on-site environmental assessments at six overseas Group companies in China, South Korea and the Netherlands. Also carried out environmental seminars in Southeast Asia and China.	To enhance and strengthen risk management systems, such as through improvements to the environmental auditing process. To create an environmental consultation center in China, with the aim of raising the level of environmental management. To continue carrying out environmental seminars for overseas Group companies.