Supplementary Material for Integrated Report 2018

Environmental Accounting

The Kobe Steel Group continuously engages in environmental conservation. The costs and benefits of these efforts are analyzed, and relevant information is disclosed in order to deepen stakeholders’ understanding of our initiatives.

Environment-Related Investments and Results

Kobe Steel invests in the installation and continual maintenance of environmental equipment, and pursues environmental measures on a variety of fronts.

In fiscal 2017 we invested approximately ¥6 billion, primarily for energy savings through higher efficiency equipment and improvements in thermal efficiency; and reduction in the risk of industrial effluent leaks through updating of piping, tanks and other measures. These investments contribute to reduced CO2 emissions and the prevention of air and water pollution.

Breakdown of Investments in Fiscal 2017 (Kobe Steel, Ltd.)

Breakdown of Investments in Fiscal 2017 (Kobe Steel, Ltd.)

Total expenses in fiscal 2017 were approximately ¥35.4 billion. Approximately 28 percent of the expenses were used to limit air pollution, approximately 14 percent to limit water pollution, and approximately 25 percent for waste recycling and processing. Regarding contributions made through products, technologies and services, expenses for technical development, such as multi-materials in automobiles and the production of aircraft parts, amounted to approximately ¥9.4 billion, or 26 percent.

Breakdown of Expenses in Fiscal 2017 (Kobe Steel, Ltd.)

Breakdown of Expenses in Fiscal 2017 (Kobe Steel, Ltd.)

In the future, we will continue to take measures for environmental conservation.

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