Basic Environmental Management Policy and Structure

We envision a world in which people, now and in the future, can fulfill their hopes and dreamswhile enjoying safe, secure, and prosperous lives. In realizing that vision, we assume the importantresponsibility of passing on to future generations a healthy global environment in which all formsof life can thrive. To this end, the Kobelco Group has formulated long-term policies, set targets,and is promoting environmental management based on the Kobelco Group’s Basic Environmental Management Policy, which consists of three visions.

The Group has been and will continue to provide solutions to the needs of society, including thoserelated to global environmental issues by leveraging its diversity in its people and technologies with due consideration of the environment in all aspects.

The Group’s environmental management policies, targets, initiatives, and progress are deliberatedat the Environmental Management and Disaster Prevention Subcommittee, which is chaired by theexecutive officer responsible for Companywide environmental protection and disaster prevention,and whose members consist of managers of the Head Office’s administrative departments and therespective business divisions’ environmental management departments. At meetings held at leastonce a year, the subcommittee deliberates, reports, and evaluates policies, execution plans, andthe results of efforts concerning initiatives for implementation for each of the three visions regarding environmental management. Important matters are reported and submitted to the Executive Councilafter the Sustainability Management Committee, to which the subcommittee reports. The managementcycle is implemented with the Sustainability Management Committee at its center, and individualissues related to environmental management are further discussed by the Environmental Managementand Disaster Prevention Subcommittee under this committee. Regarding climate change-relatedrisks and opportunities, we have established the CO₂ Reduction Promotion Subcommittee under the Sustainability Management Committee to examine and implement activities cross-functionally acrossthe entire company.

Long-term environmental policies and execution plans for achieving medium-term managementplan targets are incorporated into the medium-term management plan and annual budgets of eachbusiness division.

In order to raise environmental awareness among all employees, we provide a range of environmental education programs, including those aimed at sharing action policies. For example, inJapan, in addition to holding the Kobelco Group Environmental Conference once a year, which is also attended by Group companies, the Company offers e-learning and stratified training programs. As foroverseas Group companies, particularly in the United States and China, where many of our Groupcompanies are located, we have assigned environmental managers to regional headquarters, in orderto thoroughly ensure the promotion of environmental activities in each country and the sharing of thelatest information on environmental regulations, etc. For overseas countries other than the above two,the Head Office’s Environment and Safety Department provides information and conducts on-site environmental audits to promote environmental management throughout the Group.

The KOBELCO Group aims to increase its corporate value through environmental management.

Our Group envisions a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives, as stated in KOBELCO’s View of the Future. With that view in mind, we have formulated the Basic Environmental Management Policy based on three core approaches: pursuing environmentally friendly manufacturing; contributing to the environment through technologies, products, and services; and coexisting and cooperating with society. In line with these principles, we will strive to enhance our corporate value by setting long-term policies and goals and practicing environmental management with the highest sense of ethics and professionalism.

In terms of CO₂ reduction in production processes, as announced in May 2021, we are working to achieve targets for 2030 and tackle the challenge of realizing carbon neutrality by 2050.

Along with the efforts to reduce CO₂ emissions in the production process, we are working to contribute to reduction of CO₂ emissions leveraging our strength that enables the fusion of diverse technologies and products.

In addition, we have set water recycling rate targets for water resource conservation, water pollution load, and resource recycling. We are working actively to achieve and maintain these targets. In fiscal 2021, we maintained a high water recycling rate at around 96% and a resource recycling rate at around 99% (for slag, dust and sludge). We will continue to strive for sustainable management of our Group.

The major premise of these environmental management practices is compliance. As new laws are being enacted and regulations are being tightened day by day, both in Japan and overseas, we will ensure that we respond to them, while also identifying and mitigating risks through measures such as identifying and improving environmental risks, sharing information inside the Group, and conducting internal environmental audits.

Executive Officer, and Chief Officer
Responsible for Companywide
Environmental Management

Daisuke Ogura