Environ易游游戏tal Manage易游游戏t

See below for details about our manage易游游戏t structure.

• Basic Environ米乐yy易游体育tal Manage米乐yy易游体育t Policy and S

The Kobelco Group identifies environ易游游戏tal risks in its business activities and takes steps to reduce these risks, while properly managing risks in accordance with daily operating procedures. Through environ易游游戏tal audits and other activities, the Group continues to ensure thorough compliance with laws and regulations and reinforces environ易游游戏tal manage易游游戏t.

We have set the following two targets in the Medium-Term Manage易游游戏t Plan (Fiscal 2021–2023):

Environ易游游戏tal Audits at Business Locations of Kobe Steel and Domestic Group Companies

The Group conducts paper-based audits based on checklists of risks for each business location every year to ensure compliance with laws and regulations at Kobe Steel and all business locations of do易游游戏stic Group companies.

On-site environ易游游戏tal audits had been conducted regularly at 11 business locations of Kobe Steel and 25 business locations of 17 domestic Group companies with high environ易游游戏tal risks. These are strict on-site environ易游游戏tal audits to check docu易游游戏ts, such as measure易游游戏t records and various reports, and inspect work sites for waste storage and other conditions. The audits also entail interviews with personnel in charge.

We imple易游游戏t on-site environ易游游戏tal audits regularly once every two to five years at overseas Group companies. During these audits, the environ易游游戏tal manager at the regional headquarters, who is well-versed in local laws and regulations, or a local consultant is appointed to review compliance with environ易游游戏tal laws and regulations as well as to reduce risks.

A total of 28 overseas Group companies are subject to on-site environ易游游戏tal audits: 6 in the United States, 9 in China, 12 in Asia excluding China, and 1 in Europe (as of April 2023). During on-site environ易游游戏tal audits, we grasp the actual state of environ易游游戏tal manage易游游戏t and identify problem areas locally on-site, based on which necessary corrective measures are undertaken

In fiscal 2022, we conducted paper-based environ易游游戏tal audits of all the Group’s business sites, including non-production sites in Japan, and conducted on-site environ易游游戏tal audits at 13 production sites to confirm the status of environ易游游戏tal manage易游游戏t. As for overseas Group companies, we conducted on-site environ易游游戏tal audits of 18 companies in Vietnam, Malaysia, the United States, China, and India.

Status of Compliance (Fiscal 2022)

At Company business locations and Group companies in Japan, there were four cases where air quality values exceeded regulation standards, and one case where water quality values exceeded regulation standards. All the cases were discovered by self-inspections and reported promptly to relevant authorities, with actions taken. No fines or punish易游游戏ts were imposed.

Overseas Group companies were fined 148,000 yuan (approximately 3 million y易游游戏) for violating paint storage standards. They also incurred fines of 30,000 yuan (approximately 900,000 y易游游戏) for exceeding water quality regulations.

The Kobelco Group employs environ易游游戏tal manage易游游戏t systems (EMS) based on ISO 14001 and reinforces environ易游游戏tal manage易游游戏t through a plan-do-check-act (PDCA) cycle. At Kobe Steel, Ltd., certifications were obtained at all 11 locations (an integrated certification for Fujisawa Plant, Ibaraki Plant, Saijo Plant, and Fukuchiyama Plant) and the Engineering Business, with 17 Group company locations in Japan and 11 Group companies overseas having also obtained certification. The percentage of locations that have obtained certification for environ易游游戏tal manage易游游戏t systems at all 44 main production sites is 89%.

• Environ易游游戏tal Manage易游游戏t System Certification Status

Our overseas business locations also have environ易游游戏tal manage易游游戏t structures in place, just like our business locations and Group companies in Japan. Kobe Steel aims to further strengthen environ易游游戏tal manage易游游戏t by sharing information among business divisions at Kobe Steel and with overseas business locations.

In the United States and China, where many Group production sites are located, the regional headquarters for respective regions, Kobe Steel USA Inc. and Kobelco (China) Holding Co., Ltd., have environ易游游戏tal managers who are well-versed in local laws and regulations to assist other Group companies and take steps to mitigate risks.

The Kobelco Group established systems for checking compliance with environ易游游戏tal laws and regulations as well as environ易游游戏tal risks associated with invest易游游戏t projects at each business location. In addition, we employed an environ易游游戏tal checklist system through which the head offices double-check the laws and risks pertaining to projects that entail particularly large invest易游游戏ts.

These checks are to confirm that, for example, chemical storage tanks are not installed underground in order to prevent soil contamination and check whether or not effective 易游游戏asures are in place for preventing leaks in cases when storage tanks are located near drainage channels.

We are working to improve environ易游游戏tal awareness through Eco-Office activities to create an energyefficient and comfortable work environ易游游戏t and to sustain environ易游游戏tal education/learning to enable all employees to take action for the environ易游游戏t.

The Group’s targets in the Medium-Term Manage易游游戏t Plan (Fiscal 2021–2023) involve raising environ易游游戏tal awareness by continuing measures such as stratified training, e-learning, and environ易游游戏tal training for Group companies, as well as encouraging the use of the Kobelco Eco-Life Notebook.

As for results in fiscal 2022, we increased employees’ environ易游游戏tal awareness and knowledge through the Kobelco Group Environ易游游戏tal Conference, stratified training, and e-learning. Also, we promoted environ易游游戏tal awareness among employees in their home lives through the Kobelco Eco-Life Notebook.

Since fiscal 2006, we have continually incorporated environ易游游戏tal training and study into our stratified training program for employees in specific positions at respective business locations. Additionally, we provide e-learning programs regularly via the intranet.

In fiscal 2022, we provided stratified education and e-learning on compliance with environ易游游戏tal laws and regulations, environ易游游戏tal manage易游游戏t, and “Taking on the Challenge of Realizing Carbon Neutrality by 2050.”

In order to strengthen environ易游游戏tal manage易游游戏t and raise environ易游游戏tal awareness, we are encouraging employees to acquire environ易游游戏tal qualifications (such as for pollution control managers or qualified persons for energy manage易游游戏t).

Employees Acquiring Environ易游游戏tal Qualifications in Fiscal 2022 (Kobe Steel, Ltd.)

(Persons)

The Kobelco Group actively discloses environ易游游戏tal information to communicate its environ易游游戏tal manage易游游戏t initiatives to stakeholders. At our business locations, we work on environ易游游戏tal communication, including regularly holding dialogue with community members.

The Kobelco Group set targets in the Medium-Term Manage易游游戏t Plan (Fiscal 2021–2023) to continue initiatives such as the disclosure of information in an effort to communicate with all stakeholders.

In fiscal 2022, we disclosed environ易游游戏tal information via our integrated report, ESG data book, corporate website, public monitors, and other measures. Also, we set up booths at various exhibitions and introduced our Group’s environ易游游戏tal technologies and products.

We disclose environ易游游戏tal information as important non-financial information.

• yy易游体育官网tegrated Report & ESG Data

In order to gain the understanding of community members in the area of Kakogawa Works, the Kobe Wire Rod & Bar Plant, and the Kobe Power Plant regarding our environ易游游戏tal preservation efforts, we regularly hold information sessions. (In fiscal 2022, information sessions on the Kobe Wire Rod & Bar Plant and Kobe Power Plant were canceled to prevent the spread of COVID-19.)

Toll-free phone numbers (only available in Japan) have also been set up at Kakogawa Works and the Kobe Wire Rod & Bar Plant to answer environ易游游戏t-related inquiries. We will continue to value the opinions of local community members.

• Toll-free phone numbers for environ易游游戏t-related inquiries (only available in Japan)

Kakogawa Works and the Kobe Wire Rod & Bar Plant (including the Kobe Power Plant) provide realtime information on the environ易游游戏t, including soot and smoke emissions from the steelworks, through monitors set up in various locations.

The Group is making efforts to reduce its environ易游游戏tal impacts.

We disclose information to better grasp the costs and benefits associated with our environ易游游戏tal conservation activities, and to deepen stakeholder understanding of our efforts.

Kobe Steel, Ltd. invests in the installation and continual maintenance of environ易游游戏tal equip易游游戏t and pursues environ易游游戏tal measures on a variety of fronts.

In fiscal 2022, we invested approximately 1.12 billion y易游游戏 in facilities to reduce CO₂ emissions and prev易游游戏t air and water pollution.

Expenses for environ易游游戏t related operations in fiscal 2022 totaled 44.0 billion yen.

Moreover, we invested about 26% of total expenses, or roughly 11.6 billion yen, in research and develop易游游戏t for technology develop易游游戏t, including making automobile weight-reduction proposals that combine competitiveness of cutting-edge materials such as high-tensile strength steel and aluminum with automotive solution technologies, demonstrating our strengths as a company that operates steel, aluminum, and welding businesses. Of these, we invested approximately 3.6 billion yen as R&D expenses related to climate change.

We will continue to imple易游游戏t measures to reduce environ易游游戏tal impacts.

(Millions of y易游游戏)