HORIBA/Environmental Report. HORIBA s business revolves around the global environment

Transcription

1 HORIBA/Environmenal Repor HORIBA s business revolves around he global environmen

2 Profile Company Ouline (As of March 20, 2003) Corporae Name: HORIBA, Ld. Head Office: 2, Miyanohigashi-cho, Minami-ku, Kyoo, , Japan Founded: Ocober 17, 1945 Incorporaed: January 26, 1953 Paid-in Capial: 6,577 million Employees: Consolidaed 3,691 Unconsolidaed 980 Fiscal Closing Dae: March 20, annually Sock Lisings: Tokyo Sock Exchange (1s Secor) Osaka Securiies Exchange (1s Secor) Ediorial Policy and Coverage HORIBA, Ld. has been producing environmenal repors since This repor, Gaiarepor 2003, was compiled wih he objecive of describing he environmenal aciviies conduced a HORIBA, is Head Office, Head Facory and 11 sales offices hroughou Japan during fiscal 2002 (March 21, 2002 o March 20, 2003). Conens: Presiden s Message Business Ouline and Resuls Environmenal Managemen Environmenal Accouning R&D Green Producs Communicaion, Healh and Safey Hisory of Environmenal Aciviies

3 Presiden s Message Conribuing o Socieal Wellbeing hrough Advanced Technologies and Corporae Culure greaer environmenal awareness, energy conservaion, zero-emissions, resource recycling and produc safey. We prioriize he effecive use of mineral and waer resources, he prevenion of global warming and he reducion of oxic chemicals, o realize a susainable sociey. We will develop our business wih he objecive o creae new corporae value as we coninuously work o lessen environmenal impac in all operaions, including manufacuring and end-producs. Celebraing 50 years HORIBA, Ld. has consisenly produced op resuls during he curren severe economic environmen. This year we are celebraing he 50h anniversary of HORIBA, Ld. Beginning wih a ph meer, HORIBA has srived o conribue o environmenal conservaion and resolve polluion problems by providing analyical measuring equipmen o analyze solids, liquids and gases. We will seek business expansion o mee modern needs hrough he developmen of new echnology, including nanoechnology for he semiconducor indusry and bio-echnology for he medical indusry. In recogniion of a rapidly growing world populaion and he associaed environmenal changes and resource depleion, HORIBA will srive o promoe Sriving o be a Firs-Rae Company The HORIBA GROUP has grown ino an organizaion consising of 38 Group companies in 22 counries. Operaing in a changing world wih heighened scienific and echnological expecaions, we are commied o leveraging our accumulaed echnological experise and corporae culure o conribue o socieal wellbeing. We will creae a balanced managemen syle in Japan, he Unied Saes and Europe, while coninuously improving produc qualiy and advancing environmenal and safeyrelaed aciviies o furher enhance corporae value. We will pursue an acive managemen syle based on openness and fairness, wih he ulimae objecive of being a firs-rae company. I look forward o your coninued undersanding and guidance. Asushi Horiba Presiden 1

4 Business Ouline and Resuls Enhancing Lifesyles wih Unique Technologies Business Ouline The HORIBA Group suppors indusry and enhances lifesyles hrough he provision of a wide range of high qualiy, sophisicaed measuring and analyical insrumens employing sae-of-he-ar echnologies. Uilizing echnical know-how developed for semiconducors, elecrical equipmen, physical science, chemisry, bioechnology and medicine, as well as environmenal monioring and clean energy, he HORIBA Group is sriving o expand is business globally. Over half of he group s employees are foreign ciizens. HORIBA conducs business in four disinc areas. Firs, in he semiconducor and elecronic indusries, HORIBA s producs aid sric qualiy conrol in producion processes for new maerials and semiconducors. Second, in he medical indusry, HORIBA provides diverse insrumens, especially for esing and analyzing blood. Third, environmenal and analyical insrumens and sysems include over 500 differen producs for physics, chemisry and new maerials research, ranging from ph meers o X-ray equipmen. Fourh, in engine measuremen insrumens and sysems, HORI- BA is he global marke leader. HORIBA insrumens play a vial role in he research and developmen of clean engines and fuel cells, which reduce he environmenal burden of auomobiles. Ne Sales Operaing Income Number of Employees (Billion ) (Billion ) ,000 3,500 3,000 3,540 3,583 3,691 3,257 3, ,500 2,000 1,500 1,018 1, Unconsolidaed Consolidaed Unconsolidaed Consolidaed Unconsolidaed Consolidaed Sales by Business Segmen (Consolidaed) Semiconducor Insrumens & Sysems 18.3% Medical Diagnosic Insrumens & Sysems 20.3% Engine Measuremen Insrumens & Sysems 26.9% Sales by Business Segmen (Unconsolidaed) Semiconducor Insrumens & Sysems 4.5% Oher 2.7% Medical Diagnosic Insrumens & Sysems 8.1% Engine Measuremen Insrumens & Sysems Environmenal and Analyical Insrumens & Sysems 34.5% Environmenal and Analyical Insrumens & Sysems 40.7% 2

5 Overall Environmenal Impac Head Office and Facories Power Waer Maerials Chemical Subsances IN PUT Iem Toal consumpion Toal consumpion Paper Packaging Liquid nirogen Liquid oxygen Liquid argon Toal consumpion PRTR relaed chemical consumpion (over 10 kg, 8 kinds) Lead consumpion (as lead compounds) Uni TJ km 3 FY OUT PUT Iem Uni Toal CO2 emissions -CO2 Wasewaer discharge km 3 Toal wase produced emissions Emission ino air Emission ino air Emission ino air Amoun ransferred (disposed) Amoun ransferred (disposed) Emissions (air, waer) Recycled amoun FY , Toal of 11 Sales Offices Power Waer Maerials Chemical Subsances IN PUT Iem Toal consumpion Toal consumpion Paper Packaging Liquid nirogen Liquid oxygen Liquid argon Toal consumpion PRTR relaed chemical consumpion (over 10 kg, 8 kinds) Lead consumpion (as lead compounds) Uni TJ km 3 FY OUT PUT Iem Uni Toal CO2 emissions -CO2 Wasewaer discharge km 3 Toal wase produced emissions Emission ino air Emission ino air Emission ino air Amoun ransferred (disposed) Amoun ransferred (disposed) Emissions (air, waer) Recycled amoun FY Group Company Informaion Region Company Name No. of Employees Power Consumpion (MWh) Town Gas Consumpion (km 3 ) Waer Consumpion (m 3 ) Auomobile Fuel Consumpion (kl) Wase Emissions () USA EU ASIA HII (Irvine) HII (Ann Arbor) HII (Tempe) HE (Sulzbach) ABX (QA&BPT) JOBIN YVON HKL COS STEC (187) ,113 1, ,842 (2,900) , ,440 10,326 1, ,962 (10,000) 6,000 10, (38) , (1,100) Noe: Figures in parenhesis are from fiscal

6 Environmenal Managemen Developing a Comprehensive Global Environmenal Managemen Sysem As a Manufacurer of Environmenal Measuremen Insrumens HORIBA s major produc groups produce a wide range of analyical devices o measure car exhaus gas, sack gas, air polluion, waer qualiy and oxic chemicals. HORIBA aggressively promoes environmenal managemen hroughou he Group, creaing indusry sandards along he way o business expansion. We obained ISO4001 cerificaion in 1997 and creaed an Environmenal Projec aimed a energy conservaion, wase reducion and lessening chemical risk o couner ozone depleion and global warming. We launched sage wo of his projec in fiscal 2001, implemening environmenally friendly designs for all new producs o reduce heir environmenal impac. Corporae Officer Toshihiko Uno Improving Environmenal Managemen Sysems (EMS) HORIBA obained ISO9001 cerificaion for qualiy assurance in 1993 and was graned ISO14001 cerificaion in 1997 for is environmenal managemen sysem. Saring in fiscal 2003, HORIBA began a shif o an Inegraed Managemen Sysem (IMS), combining qualiy, environmenal and safey managemen. The benefis of simplified operaion and common goals will srenghen environmenal managemen hroughou he Group, ensuing he realizaion of he long-erm vision o reduce our environmenal impac. 4

7 Ouline of Inegraed Managemen Sysem (IMS) Creaing New Corporae Value Inegraed Managemen Sysem Qualiy ISO-9001 Environmen ISO Worker Healh & Safey OHSMS Through he promoion of an inegraed managemen sysem which pools he knowledge of all our employees, we seek o raise he brand value of he HORIBA Group and enhance corporae qualiy. Presiden Asushi Horiba Mainain sales/profis Improve qualiy and reduce loss from goods reurned Producion Qualiy Acion Managemen Plan/Objecives Record Operae Plan Record Operae Plan IMS Record Operae Plan Boos reliabiliy Reduce managemen coss Toal Qualiy Corporae Philosophy To Consanly Broaden Our Horizons o Ensure a Prosperous Fuure for All Environmenal Managemen Reduce environmenal load/coss Efficien managemen Worker Safey Reduce risk of accidens/improve produciviy Promoing he Proecion of Our Earh and Coexisence wih he Naural Environmen Inegraed Managemen Policy 1. We will mee diversified cusomer needs by providing producs and services creaed wih an environmenally friendly producion sysem. IMS Sysem Presiden 2. We will comply wih all laws and local regulaions o promoe muual prosperiy. IMS Direcor in Charge Council for IMS Promoion 3. We will srive for coninuous improvemen hrough he esablishmen of appropriae business goals and objecives plus he plans o achieve hem. Inernal Audiing Team IMS Manager IMS Commiee Qualiy, Environmen & Safey Commiee Healh & Safey Commiee Workers Union Adminisraive Secor Business Secor Supporing Secor and Relaed Deparmens Technical Commiee Commiee for ISO Promoion Work Groups 5

8 Environmenal Managemen Inroducing IMS ISO Managemen HORIBA has obained inernaionally recognized ISO cerificaions for boh qualiy and environmenal managemen sysems, Viewing hese qualificaions as essenial, HORIBA coninually srives o improve qualiy and environmenal managemen performance o expand cusomer and sociey rus in he company and raise brand image. Iniial IMS Meeing Changes in ISO Condiions The harsh business climae has creaed a demand for even higher qualiy. Aggressive developmen of an efficien managemen sysem incorporaes ISO sandards ino company policies. Furhermore, compliance and risk managemen and full disclosure of informaion are increasing in imporance as he public demand grows for corporae social awareness and ehical business operaions. Increased safey concerns have led o he esablishmen of he Occupaional Healh and Safey Sandard (OHSAS). Poenial Problems wih ISO There has been duplicaion of effor and documens as sysems and records have been independenly managed, creaing unnecessary cos. In addiion, complex and ofen rouine operaions have caused a drop in employee ineres. I is herefore essenial o have a sreamlined and efficien managemen sysem o generae desired resuls. Plan, Do, Check, Acion (PDCA) cycle of IMS Se arges for each aciviy Daily aciviies P D C A (daily, weekly) Person in charge Deparmenal developmen Targe P (yearly) D (year-round) Repor Annual deparmenal arges PD (yearly) CA (1-6 monhly) CA arges Manager Review Improving Sysem Managemen HORIBA aained he ISO 9001 Sandard for qualiy managemen 10 years ago and he ISO Sandard for environmenal managemen six years Monhly managemen meeing Invesigaion Mid-erm managemen plan Proposal IMS Meeing (monhly) Confirmaion/problem resoluion PD (3-5 years) CA (yearly) Meeing o se arges Annual arges Plan achievemen program (resource allocaion ec.) ago. Since he inroducion of hese sandards HORIBA has srived o implemen objecive policies and sraegies o opimize company operaions. Wih he cooperaion of ISO invesigaory bodies, HORIBA has been able o creae is IMS, encompassing no only qualiy and environmenal ISO Sandards bu also OHSAS. The basic framework for he IMS sysem was compleed in fiscal 2002, wih fiscal 2003 slaed as he rial period. Fullfledged operaion of he sysem is scheduled for fiscal

9 Enhancing Environmenal Aciviies Environmenal Projec Sage 2 was launched in The following are objecives for he final year of he plan, fiscal Implemen EMS in all Group and affiliaed companies. 2. Aim for zero-emissions. 3. Promoe environmenally-applied design. 4. Reduce he use of harmful chemical subsances and CO2 emissions. HORIBA will make he necessary invesmens o ensure he plan is successfully carried ou. Sage hree of he projec will be formulaed his fiscal year wih he objecive of furher reducing environmenal impac, raising cos performance and bolsering he inegraed managemen of qualiy, environmen and safey. Environmenal Managemen Sysem Flow Char Environmenal Philosophy Inerim Program of Environmenal Managemen Enlighenmen Meeing for Achievemen Repors Environmenal Policy P Acions Achievemen Environmenal Objecives Targes Environmenal Managemen Program Environmenal Improvemen Program Educaion Improvemen Aciviies D Review Achievemen Insrucions Acions Inernal Audi Legal and Oher Requiremens Evaluaion of Environmenal Impac Mainenance and Improvemen Review and Self-Appraisal A Verificaion and Checking C Promoing EMS Globally Saus of EMS a Affiliaes No answer 15% No plan or aciviies 8% No plan, bu aciviies 18% Plan o obain KES 15% Obained ISO 18% Plan o obain ISO 3% Obained KES 23% EMS a Group Companies The creaion of an EMS a each of HORIBA s 12 producion companies - wo in Japan and 10 overseas - has been progressing smoohly wih he provision of environmenal informaion, ISO cerifica- Supporing EMS Creaion a Affiliaes HORIBA held is hird EMS Creaion Seminar. During he seminar a quesionnaire was presened o he 64 major affiliaed companies. Tweny hree percen of hese companies have obained he Kyoo Environmenal Managemen Sandard (KES) drafed by he Kyoo Agenda 21 Forum* for small- and medium-sized businesses. In all, 59 of hese companies are ion applicaions and suppor aciviies. A presen, HII and HAD in he Unied Saes have obained he ISO qualificaion, while ABX and HE in Europe and STEC Inc. in Japan are preparing o aain qualificaion. acively implemening EMS aciviies. Oher resuls can be seen in he graph a lef. *Kyoo Agenda 21 Forum: A body formed in November 1998 wih he ask of developing a sociey ha exiss in harmony wih he environmen, wih join paricipaion by he ciy, is residens and business 7

10 Environmenal Managemen Environmenal Projec Sage 2 Ouline Theme A. Promoe Environmenal Managemen B. Creae Environmenally Friendly Producs C. Implemen Eco-Conscious Producion Sysem and Aciviies D. Energize Communicaion Fiscal 2002 Acion and Achievemens 1. Mainain and enhance Environmenal Managemen Sysem (EMS) 2. Coninually improve self-appraisal sysem 3. Creae an environmenal accouning sysem and promoe effecive and economic conservaion 1. Develop environmenally friendly producs and expand produc reuse and recycling 1. Reduce environmenal impac and aim for zero-emissions 2. Advance sric adherence o regulaions 3. Enhance chemical managemen and reduce he use of harmful subsances 1. Promoe disclosure of informaion 2. Enhance conribuion o sociey Targes for FY 2003 * Esablish EMS a all producion companies * Implemen SO and SS * Creae informaion ne for purchasing and promoe awareness/suppor aciviies * Improve GP-21 (Green Poin 21 self-appraisal sysem) by 65% (1998 sandard) * Mainain environmenal accouning (coss a 0.5% of sales) * Apply environmenally friendly designs o over 60% of new producs * Achieve 100% green procuremen * Reuse over 60% of colleced producs * Reduce elecricial consumpion by 15%, CO2 producion by 3% and surplus by 30% (2002 sandard) * Reduce wase o less han 1% (final wase a landfill), and less han 50% (oal wase) (FY 2002 sandard) * Boos he resource recycling rae o 75% * Creae a managemen sysem * Reduce chemical invenories and harmful subsances by 30% each * Effecively uilize informaion * Advance inernal awareness aciviies Environmenal Projec Sage 2 Resuls and Targes Theme A. Promoe Environmenal Managemen B. Creae Environmenally Friendly Producs C. Implemen Eco-Conscious Producion Sysem and Aciviies D. Energize Communicaion E. Supplemenary Theme 1. Mainain and enhance Environmenal Managemen Sysem (EMS) 2. Coninually improve he self-appraisal sysem 3. Creae an environmenal accouning sysem; promoe effecive and economic conservaion 1. Develop environmenally friendly producs; expand reuse and recycling 1. Reduce environmenal impanc and aim for zero-emissions 2. Comply wih rules and regulaions 3. Reduce harmful subsances 1. Promoe informaion disclosure 2. Enhance conribuion o sociey FY 2002 Targes * Transmi informaion and reduce impac a 13 producion companies * Reduce impac a local sies * Uilize green procuremen forum; conduc EMS research * Achieve 700 in GP-21 * Seek exernal recogniion * Aain 0.5% coss agains sales * Aain 20% developmenal coss agains invesmen * Apply environmenally-friendly design o all new producs * Creae lead-free echnology * Reuse 50% of colleced producs * Reduce elecricial consumpion by 3% * Reduce CO2 emission ino he environmen by 2% * Reduce surplus by 10% and invenories by 20% * Reduce wase deposis a landfill o less han 30% of wase * Reduce emissions by 25% * Boos recycling rae o over 65% * Implemen sable monioring sysem * Research a daa managemen nework * Enhance compliance and self-evaluaion * Reduce harmful subsances by 20% * Reduce invenories by 20% * Release Gaiarepor in mid-june for Japanese and end of June for English * Hold EMP meeings, presenaions * Commence eco-label * Conduc more han 3 aciviies * Reduce paper use, packaging maerials Fiscal 2002 Resuls * Obained ISO cerificaions a 2 sies * Enhanced environmenal performance undersanding a 8 companies * Commenced aciviies a 4 SO and 7 branches * Conduced firs EMS Workshop * GP-21: 705 poins * Awarded Chairman s Prize by he Council for Recycle Promoion * Mainained coss a 0.5% of invesmen * Implemened environmenally applied design in 9 ou of 22 producs * Researched echnology for lead-free prined circuis * Reduced polyeser packaging by 27% * Colleced producs: 175 poins; reused 95 poins (54%) * Energy-savings: Decreased power consumpion facor by 3.8% Reduced CO2 load by 19% * Reduced surplus by 20% * Final wase a landfill: 30%; reduced emissions by 30%; resource recycling rae: 40% * Implemened inernal monioring sysem; insalled ciy gas sensors * Reduced use of harmful subsances by over 30% and invenories by 30% * Released Japanese environmenal repor in June * Inroduced independen environmenal labels (2 producs) * Reduced noise level * Performed 4 social conribuion acs * Conduced 32 independen enlighenmen aciviies * Sared rial of IMS * Noe: Self-Evaluaion Caegory: = Goal achived; = Achieved more han 80% of goal ; = Achieved less han 80% of goal Self-Evaluaion Fiscal 2003 Targes * Esablish EMS a all producion companies * Implemen 22 SS * Creae informaion ne for purchasing and promoe awareness/suppor aciviies * Improve GP-21 (Green Poin 21 selfappraisal sysem) by 65% (1998 sandard) * Mainain environmenal accouning (coss a 0.5% of sales) * Apply environmenally friendly design o over 60% of new producs * Develop echnology for lead-free prin circui solders * Creae reuse/recycling sysem (Reuse over 60% of colleced producs) * Reduce elecricial consumpion by 15% and CO2 emission by 3% (FY 2000 sandard), and surplus and invenories by 30% (FY 2001 sandard) * Reduce wase o less han 1% (final wase a landfill), and less han 50% (oal wase) (FY 2002 sandard) * Boos resource recycling rae o 75% * Creae a managemen sysem * Reduce chemical invenories and harmful subsances by 30% each (FY 1999 sandard) * Reduce use of harmful subsances by 30% (FY 2000 sandard) * Creae sysem o boos awareness and reduce environmenal impac of chemical subsances * Effecively uilize informaion * Advance inernal awareness aciviies * Complee shif o IMS * Uilize environmenal informaion * Social Acion Program * Esablishmen and promoion of in-house enlighmen aciviies * Shif o Inegraed Managemen Sysem now complee 8

11 Self-Evaluaion of Environmenal Aciviies Green-Poin 21 Informaion disclosure and educaion Managemen of chemical subsances Environmenal policies Compliance wih environmenal regulaions Environmenal accouning The degree of environmenal managemen is self-appraised on an eigh-poin scale, as seen in he diagram a lef, using fiscal 1998 as a baseline. HORIBA srives o make improvemens in each area, focusing on weaker secions o coninually enhance is environmenal managemen sysem. HORIBA expecs o raise arges for fiscal 2003 by 65%. Furhermore, a new evaluaion sysem is now in he planning sage. This Green-Poin sysem was formulaed by Hiachi, Ld. Clarified Areas for Improvemen Recycling Energy savings a facories Consideraion for environmenal issues in producs and services HORIBA focuses on implemening policies, esablishing regulaions, ransmiing informaion and enhancing educaion. Consequenly, Group-wide environmenal awareness is heighened and resuls, such as energy-savings, are achieved. Wih he launch of he Environmenal Projec Sage 2, HORIBA aims o furher srenghen eco-conscious producs, chemical subsance managemen, resource recycling and globalizaion of environmenal managemen. Targes Reached ISO14001 cerificaion was aained in June 1997, laying he foundaions for environmenal managemen. In 1998, HORIBA inroduced a self-evaluaion sysem and inends o raise arges by 65% in fiscal Afer a review of he fiscal 2000 acion plan, HORIBA formulaed he Environmenal Projec Sage 2, which was iniiaed in Self-Evaluaion of Environmenal Aciviies (%) Rae of Improvemen (Sandard) (Targe) 9

12 Environmenal Managemen Obaining ISO14001 Cerificaion By June 1997 he HORIBA Head Office and all HORIBA facories obained ISO cerificaion. In fiscal 2001, HORIBA exended is environmenal improvemen aciviies o is 11 sales offices. Moreover, he HORIBA goal is o aain he cerificaion a he 21 naionwide service ceners of is sales subsidiary, Horiba Techno Service Co., Ld., from fiscal HORIBA will also provide suppor and guidance o he Group s producion companies in preparaion for aaining ISO Environmenal Monioring HORIBA regularly conducs inernal environmenal monioring audis in each of is 38 deparmens. HORIBA has esablished annual guidelines for each deparmen o ensure all ISO requiremens are me. In he pas year he average number of nonconformance cases decreased from 1.13 o 0.92, represening a 19% improvemen. Observaion of Laws and Prevenaive Mainenance Environmenal monioring As HORIBA s producion faciliies have relaively minor impac on he environmen, hey do no specifically fall under requiremens se by environmenal proecion laws. The Company does, however, enforce sric adherence o rules and regulaions in is daily operaions, and has esablished parameers ha apply o is business pracices a all sales sies. Informaion concerning new laws is promply disseminaed hroughou he Group. To preven accidens HORIBA conducs regular inspecions of is environmenal faciliies and performs essenial safey drills. HORIBA is consanly sriving o reduce oxic chemical invenories. Educaion and Enlighenmen Aciviies HORIBA promoes environmenal and safey raining for all employees. Specialized raining is based on deparmenal goals and needs for faciliy mainenance and environmenal managemen. When necessary, compeency evaluaions are performed o improve skill levels and aain legal cerificaions. Employees are also insruced in proper echniques for chemical managemen and wase separaion. Lecures, an in-house nework and inernal magazine are used o rain employees. Paricipaion in EMS seminars o review monhly resuls and recen environmenal opics is also encouraged. 10

13 Educaion Sysem Educaion classified Rank Company-wide Educaion Specialized Educaion Needs of Educaion/ Training Environmenal Forum Company-wide Enlighemen Aciviies Educaion by Secion General Educaion of Environmenal Managemen Specified Educaion by Secion Emergency raining in he clean Room Developing Inernal Environmenal Audiors Seven employees were dispached o exernal organizaions in fiscal 2002 o receive raining on audiing procedures. There are now 49 environmenal audiors and 31 senior audiors in he company. HORIBA inends o implemen an inegraed audiing sysem in fiscal Training for Emergencies HORIBA conduced regular drills for emergency raining, acciden prevenion and evacuaion procedures for 350 employees in hree deparmens. The drills were moniored and he resuls were reviewed o reinforce emargency prevenion and pracices. Emergency raining wih drains Holders of Major Environmen-Relaed Qualificaions Environmenal Analyzing and Measuring Manager Polluion Prevenion Manager (General) Polluion Prevenion Manager (Air) Polluion Prevenion Manager (Waer) Polluion Prevenion Manager (Ohers) Energy Manager Chief Elecrical Engineer Manager, Specially Conrolled Indusry Chief Engineer for Radioacive Subsances Poisonous and Harmful Subsance Supervisor (Manufacuring indusry) Poisonous and Harmful Subsance Supervisor (Sales indusry) Working Environmen Measuremen Exper.. 4 Legal Qualificaions HORIBA always encourages is personnel o aain legal qualificaions o raise educaion levels relaed o R&R, producion and sales. Qualified personnel receive financial incenives. 11

14 Environmenal Accouning Promoing Proacive Environmenal Accouning Overview In fiscal 1999 HORIBA inroduced environmenal accouning as an imporan ool for environmenal preservaion aciviies and managemen. HORIBA discloses environmenal aciviy informaion o enhance openness and promoe environmenal managemen. In compliance wih he guidelines of he Minisry of he Environmen of Japan (2002 Version), HORIBA supplies informaion for all domesic sies. We will coninue o improve environmenal managemen effors o ensure effecive cos conrol of environmenal effecs hroughou produc life cycles. Environmenal Accouning in FY 2002 In addiion o raising awareness of coss and effecs by promoing energy-savings, zeroemissions and environmenally applied design, we increased he operaional efficiency of our EMS. Furhermore, we coninued o develop low-energy producs and calculae he savings benefi on our cusomers elecrical consumpion. HORIBA will now seek o implemen environmenally applied design in more producs and bolser undersanding of environmenal coss and effecs over he enire produc life cycle. Analysis of FY 2002 Accouning Effecs Sandards for Environmenal Accouning Coverage : Head Office/facory, 11 sales offices Period : March 21, 2002 o March 20, 2003 Invesmen/ expendiure : Figures for FY 2001 has been revised in line wih a review of accouning mehods and in compliance wih financial accouning Expendiure sandards. : Includes personnel, managemen and research coss (no depreciaion). I) Personnel coss : Average labor cos muliplied by he number of working hours relaed o environmenal preservaion. II) R&D expenses : Includes research coss relaed o R&D expenses (maerials, personnel coss) and environmenal preservaion aciviies. Calculaion effecs I) Amoun reduced : Amoun in previous year minus amoun in curren year. Changes in he amoun of business aciviies have been adjused for in he calculaion of income and expenses. II) Economic effecs: Based on he useful life (usually six years) of major capial invesmens, as well as producs wih greaes environmenal impac and environmenal preservaion aciviies. III) Energy-savings in fiscal 2002 are calculaed in relaion o environmenally-friendly producs sold. In fiscal 2002 a oal of 3 million was invesed in environmenal preservaion aciviies, a 52% increase over he previous year. Toal expenses amouned o million, up 1.7%. A primary focus was o improve energy-conservaion and implemen new faciliies for produc developmen. Alhough HORIBA reduced managemen aciviy coss by 15%, coss relaed o aciviies o reduce energy and resource consumpion rose 27.8%, wih social conribuion coss increasing 20%. We reduced he amoun of CO2 emissions (energy and service waer relaed) by ons, or 6.7%, hrough sales flucuaion adjusmens. Alhough energy consumpion remained roughly on par wih he previous Fuure Iniiaives HORIBA will concenrae on raising produc qualiy as well as worker healh and safey. The company will implemen an IMS in fiscal 2003 o improve operaing efficiency. In he fuure, we will creae an index relaed year, we were able o reduce he overall power consumpion facor by 3% hrough effors o save energy used by air-condiioners, which consume 60% of oal energy. We also reduced he use of own gas by 19%. Effors coninue o reduce consumpion of chemical maerials wih he ulimae objecive of zero-emissions. We also promoed recycling of resources, improving our recycling rae by 2.1 poins and reducing he power consumpion facor of harmful emissions by 6.4%. Moreover, he inroducion of environmenally applied designs in new producs helped raise gross sales of energy saving producs by 137%. Cos of maerials increased 1% despie he uilizaion of lead-free prined circui boards. o managemen qualiy o ensure coninuous improvemen of corporae developmen and increased environmenal, healh and safey awareness. 12

15 (1) Coss and Effecs of Environmenal Preservaion Aciviies Deails Iem (1) Business Area 1. Polluion prevenion 2. Environmenal preservaion 3. Resource recycling (2) Upsream/downsream (3) Mainenance and managemen (4) R&D (5) Social aciviies (6) Damage o environmen Toal Invesmen Expendiure Noe: Relaed index (Millions unless saed) Iem Capial invesmen R&D Eco-conscious producs (%) Invesmen in environmen (Environmenal invesmen/capial invesmen) (%) Cos of sales (%) Toal Change % ,00 1, FY 2002 Measures Taken Polluion prevenion; regulaion compliance (P.17, 18) Preven global warming/ozone depleion; energyconservaion; reduce harmful chemicals (P.16) Effecive waer use; reduce wase (zero-emissions); promoe recycling; improve produciviy; reuse surplus (P.18, 19) Green procuremen; package recycling; collec and reuse used producs (P.19) Effecively use EMS; informaion disclosure and adverising; reduce harmful chemicals; environmenal educaion (P.10, 11) Develop eco-conscious producs; promoe environmenally applied design; eliminae use of lead (P.14, 15) Provide informaion on acid rain/environmen; suppor various forums; promoe educaion a schools; enhance voluneer aciviies; expand green aciviies and environmenal communicaion (P.21, 22) Amoun , Economic effecs (Inernal) Classificaion Iem 1,452.5 a: acual effec b: minimal effec Reduced power, moniored hours; increased efficiency ec. Reduced/eliminaed subsances ha effec global warming ec. Reused surplus; reduced waer consumpion/wase ec. Sold recycled producs; colleced and reused producs ec. Enhanced educaion/managemen/adverising ec. Boosed profi margins hrough effecive R&D and eco-conscious producs Environmenal adverising effecs ec. (Million ) Reducion of CO2 emissions (minimal effecs) CO2 1, ,459.4 (2) Environmenal Preservaion Effecs Indirec environmenal load during produc use (compared o previous year) Effec of aciviies Energy conservaion Waer Maerials Chemical subsance use Effecs during produc use (Inernal) Iem Cos reducion Profi Toal Iem Power, own gas, fuel IN PUT Waer consumpion (well-waer, ciy waer) Paper, packaging, maerials Liquid N2, O2, Ar Chemical subsance use PRTR relaed chemical consumpion (over 10kg, 8 kinds) Lead consumpion (compounds) Iem Energy-conservaion Reducion of wase disposal coss Reducion of wasewaer coss Reducion of packaging, maerials Sale of goods from recycled wase Sales of goods from recycled producs Uni TJ km 3 Change Iem CO2 emissions (3) Inernal Economic Effecs Effec on cos reducions and profis of environmenal preservaion measures Amoun (Millions ) Wase waer produced Toal wase produced emissions Air emissions Wase ransferred Wase ransferred Emissions (Air, waer) Recycled amoun No. of unis: 5,146 OUT PUT Uni -CO2 km 3 -CO2 Change (4) Cusomer Economic Effecs Reducion of power coss during produc use Environmenal Preservaion Effecs and Cusomer Economic Effecs Environmenal Preservaion Effecs (Millions ) Environmenal Performance Improvemen (Reference) Toal 41.9 Noe: CO2 calculaion: 9,425/on-CO2; maximum esimae of 34,560/on-C o achieve arges se by Kyoo Proocol FY Unis Sold Energy Saved (10,000kw/h) Amoun Saved (Millions ) year oal Noe: There are 40 producs relaed o energy-saving; elecriciy coss are calculaed a 15 per kw/h 13

16 R&D Providing Eco-Conscious Producs wih Environmenally Applied Design R&D Produc Developmen for a Susainable Sociey HORIBA desires o provide low-impac producs, nine of which have passed inernal producs by uilizing environmenally sandards. Fuure producs will no only applied design. In 2002, we inroduced realize resource and energy savings bu also environmenally friendly designs in 22 new longer-life and higher reuse/recycling raes. Environmenally Applied Design in Acion New Sysem for Measuring Toal Nirogen and Phosphorous (TPNA-300) This new sysem has improved operaion measuremens. Furhermore, power consumpion is less han half and he size is efficiency by incorporaing he ulraviole acidolysis decomposiion mehod, which reduced o 52%, when compared wih reduces reagen consumpion during earlier producs. (Compared o convenional producs) Amoun of reagen... approx. 1/10 Waer consumpion... approx. 1/10 No. of replacemen pars... approx. 1/2 Measuring wase... pprox. 1/5 Power consumpion... approx. 1/2 TPNA-300 Applied Design Evaluaion Informaion provision Energy saving Environmenal conservaion Weigh reducion Easy reamen Lenghen produc life Recyclabiliy Degradabiliy This produc was developed o mee he specificaions of he fifh series of waer qualiy regulaions ha are scheduled o become effecive in The new rules make i necessary o measure no only oal nirogen and phosphorous bu also COD a sies where drainage is over 400m 3. The TPNA-300 accomplishes his. Toal nirogen/phosphorous analyzer: TPNA-300 Convenional producs TPNA-300 FG-120 Applied Design Evaluaion Informaion provision Energy saving Environmenal conservaion Weigh reducion Easy reamen Lenghen produc life Convenional producs FG-120 Recyclabiliy Degradabiliy FG-120 Compac FTIR Gas Analyzer This produc achieves a 44% reducion in space requiremens as well as a 44% reducion in power consumpion. The FG-100 series is designed for gas analysis in semiconducor and FPD producion processes, plus greenhouse gases and PFCs, and is herefore an essenial insrumen in he figh o preven global warming. HORIBA has developed boh singlecell and dual-cell insrumens, which are porable and may be applied o a wide range of applicaions. Compac FTIR gas analyzer: FG

17 Promoing Lead-free Producs In fiscal 2000 HORIBA commenced a new program o reduce lead in is prined circui boards as par of is environmenal managemen program. Alhough hese producs were already being used in some MD players and oher producs from major manufacurers by 1998, paen license issues delayed he full removal of lead from prined circui boards, resricing produc inroducion aciviies o lecures and exhibiions. Once hese issues were seled, HORIBA reiniiaed producion of lead-free prined circui boards. HORIBA inends o oally eliminae he use of lead by 2004 under he hird draf of European direcives. Alhough he fourh and fifh drafs are scheduled for 2006 and 2008, respecively, HORIBA will push ahead wih measures for early eliminaion of lead from is operaions. As a resul of his program we were he firs in he indusry o launch lead-free phmeers, in he F-50 and D-50 series, in May Lead-free ph-meer: F-50 Topics EU Direcive on WEEE and RoHS To increase he qualiy of life and proec he environmen regions such as he Unied Saes, Europe and Japan are promoing wase recycling and he reducion of harmful subsances. As one example, he EU direcive on Wase and Elecronic Equipmen (WEEE) was enaced in early 2003 o increase reuse and recycling raes. A he same ime, addiional direcives for Elecrical & Elecronic Equipmen (EEE) and Resricion of he use of cerain Hazardous Subsances in EEE (RoHS) were also issued. Accordingly, HORIBA iniiaed a Group-wide projec in line wih hese direcives, creaing a sysem o suppor he general cener for qualiy, environmen and safey, paricipaing in he echnical council for elecriciy, equipmen and chemicals and he board assembly eam. HORIBA will issue produc design policies and release deailed informaion abou our operaing mehods o our cusomers and ohers. The HORIBA Group also inends o se guidelines for use of chemical subsances in areas ouside he EU. Mark for equipmen ha comply wih WEEE 15

18 Green Producs Eco-conscious Producion Incorporaing Environmenal Design Technology Eco-conscious Producion Aciviies Reducing Energy & Resources HORIBA has iniiaed procedures o cu power consumpion and reduce wase and OA paper. As par of our compliance effors, we also promoe prevenion and proecion aciviies by esablishing an inernal environmenal managemen sysem (EMS). As par of his program we adhere o good environmenal manners by urning off lighs during lunch periods and swiching off equipmen during holidays. Decreasing CO2 Emissions o he Environmen We reduced running coss of high-elecrical-consumpion air condiioners hrough vice waer use and wase, which are oher HORIBA will coninue o reduce ser- he GHP sysem. Alhough overall power causes of global warming, while aiming o consumpion increased for he fiscal period, mainain CO2 emissions a 1990 levels unil due o higher producion levels and unusual weaher paerns, we were able o reduce Environmenal Projec Par 2, we will srive a leas In keeping wih he he amoun of own gas consumpion, he for zero-emissions by reducing energy oal amoun of CO2 emissions by 1.7% and consumpion by 1% annually. he power consumpion facor by 8.1%. Cuing Elecriciy Usage Despie inroducing energy-saving equipmen such as inverers and sprinklers and sopping non-essenial equipmen, an unusually warm winer coupled wih coninuous operaion of air condiioners caused consumpion o increase 3% over he previous year. The power consumpion facor decreased 3.8% o 304 MWh/billion yen. Toal CO2 Load on Environmen Elecric Energy Usage (-CO2) 5,000 4,000 3,000 2,000 3,185 3,626 3,859 3,988 4,0594,123 3,697 (-CO2/billions ) 5,101 4,886 4,750 4, ,745 4, (TJ) (TJ/billions ) , Toal CO2 emissions (-CO2) PCF (-CO2/billions ) Includes: elecriciy, gas, waer, fuel and wase Elecric energy usage (TJ) PCF (TJ/billions ) 16

19 Town Gas Consumpion (K-m 3 ) Town Gas Consumpion We made a significan reducion in own gas consumpion of 14%, year on year, by cuing he amoun of energy used by our air condiioners hrough such measures as eliminaing he use of a waer generaor when he sensible hea load is low in winer, inroducing a new sysem in he cooling owers and eliminaing dual use of waer coolans. PRTR No (K-m 3 ) CAS No Ciy Waer Consumpion Reducion of Chemical Subsances PRTR (annual amoun over 10kg) Chemical subsance Annual usage Invenories a year-end Solder (lead), lead compound Ehylene di-amine eraaceic acid Xylene (including mixures) Hydrazine hydrae ,4-Diehyleneoxide ,4-dioxane Alkyl benzene sulfonae (subsance in mixure) Sodium eraborae decahydrae Toal Noe: Figures have been rounded o hree decimal places Ciy Waer Consumpion As a resul of conserving 190m 3 of waer by conrolling overflow in he cooling ower Volume handled (Annual) Fuure Iniiaives o Conserve Energy We regularly review our energy usage o improve energy saving effors. HORIBA elecric power consumpion is heavily influenced by air condiioning unis ha have variable power demands due o changing Reducing he Environmenal Effec of Chemical Subsances In 1991 HORIBA iniiaed a program o moed he eliminaion or reducion in use and reduce, and finally eliminae, he use of chloride-based organic solvens and oher sub- oher, safer subsances, which culminaed in an invenories, while also promoing he use of sances ha cause ozone depleion. The mission succeeded in Since hen, HORIBA ardous chemicals. overall reducion of 7.2% in he use of haz- has also furher reducions in he number of As a resul of ongoing research since 1998 chemical subsances used in R&D and producion. Moreover, we expec o reduce he use of deal wih a maximum measure of 0.4 ons. ino PRTR-relaed subsances, we now only chemical subsances by 30% (FY 2000 sandard) hrough oher programs under our EMS. o reduce he use of chemicals ha we used Despie an increase in producion, we managed Main chemical arges for reducion or more han 10kg per year, by 39.8%, o 0.63 eliminaion are seleced using our Chemical ons. We will coninue o srive o decrease he Subsance Managemen Policies. We conduced a review of operaing procedures and use of chemical subsances. pro- Exhaus (Air) Release Drain (Waer) Dump (Soil) Changed Neuralize ec. Transfer Wase producs and sopping he use of coolans on holidays, we reduced ciy waer consumpion by 1.5%. weaher paerns. From he curren fiscal erm and beyond, we will boos energy efficiency hrough privae power generaion using a co-generaion sysem and invesing in energy-saving faciliies and equipmen. Recycle Reprocess (Uni: ) Consumpion Shipped Main use as produc Prin circuis and soldering aachmens Produc exra Cleaning componens and semiconducors Semiconducors Produc exra 25 Reagen exra Semiconducors Produc exra 17

20 Green Producs Prevening Environmenal Polluion To preven air polluion and ensure waer qualiy, HORIBA has esablished volunary conrol sandards for exhauss and effluens discharged from our facories. The effluen from rinsing plans is specially reaed for reuse, which helps reduce waer consumpion. Drainage Measuremen and Acual Measuremen ( ) Wase Emissions ( ) (mg/l) *Under deecion limi so omied Iems o be Regulaed Kyoo Ciy HORIBA Maximum Value Non-deecable Regulaions Sandards amoun ph / n-hexane exrac / phenol * * * 02 copper / zinc / Iron (soluble) / Manganese (soluble) * * 2 fluorine / nickel * * * 2 boron * * 2 Cadmium and is compounds * * 01 cyanide * * * 0.1 Lead and is compounds * * 05 6-chromium * * * 4 Arsenic and is compounds * * * 05 Mercury and is compounds * 5 * / richloro ehylene * / dichloro mehane * * 02 Carbon erachloride 2 14 * * * 2 1,1,1-richloroehane * * 5 Noe: Regulaion figures are from Kyoo Ciy sewage and drainage sandards. Iems Concerning Home Environmen Iems Concerning Human Healh Air Measuremen and Acual Measuremen Iems o be moniored Uni Kyoo Ciy HRIBA Maximum Value Non-deecable Regulaion Sandards amoun di-chloromehane Vol ppm Xylene Vol ppm <5 <2 <2 Ammonia Vol ppm Fluorine compounds mg/m3n <0.7 <0.7 Hydrogen chloride Vol ppm <1 <1 Nirogen oxides (NOx) Vol ppm <10 13 di-chloromehane Vol ppm 2 under 0.5 Xylene Vol ppm <0.3 <0.3 Ammonia Vol ppm 1 < Fluorine compounds mg/m 3 N Hydrogen chloride Vol ppm Nirogen oxides (NOx) Vol ppm Noe: Regulaion figures are based on Kyoo Ciy environmenal laws. A Oule A he Boundary Line Recycled Amoun Drainage Managemen and Regulaions HORIBA has se volunary conrol sandards based on sewage waer laws and Kyoo Ciy sewage waer regulaions o preven any waer conaminaion from is experimenal laboraories and facories. The ph is moniored and regularly measured a he drainage channel and he oule. All mesuremens for he period were below our conrol sandards. Prevening Air Polluion HORIBA has se volunary conrol sandards for he emission of harmful subsances. Through regular surveillance, mainenance and conrol of equipmen, we are working o preven air polluion. All iems for he period were below our conrol sandards. Measures o Reduce Wase In fiscal 2002, wase emissions amouned o 103 ons, down a significan 20%, mainly by recycling maerials for wooden srucures. We improved our recycling rae by 2.7%, o 59.7%, by separaing wase paper and promoing he oal reuse of cardboard boxes

21 Environmenally Friendly Producion To eliminae he wase of resources due o surplus producion, especially when orders change, HORIBA has been analyzing he various causes since fiscal 2002 in an aemp o resolve he problem. Aciviies o Improve he Environmen a Sales Offices Wih regard o volunary EMP aciviies a HORIBA s 11 sales offices (SOs) and echnical plazas, we achieved OA paper reducion (8 SOs) and gasoline reducion (2 SOs). Energy-saving vending machines were also insalled. Eigh of our SOs achieved objecives for he year. Green Procuremen Aciviies We have been promoing he green procuremen of office producs. In fiscal 2001, we inroduced a delivery sysem for domesic subsidiaries, acquiring only hose producs specified wih he green mark. Overall purchases during fiscal 2002 amouned o million (9,422 iems), while we purchased 4,857 green iems, or 52% of he oal. Measuring exhaus emission Green Procuremen of Office Supplies (by cos) Breakdown of Green Procurmen (by cos) Packaging maerials 4% Office equipmen/appliances 6% Green procurmen producs 39% Sandard producs 61% Desk eqipmen (wriing and correcion maerials) 32% Office supplies 10% Noebooks/paper 6% Files 42% Disribuion Aciviies o Proec he Environmen Naural gas delivery HORIBA Group companies have been using mixed conainers o reduce he number of deliveries required. This cooperaive sysem no only saves on coss bu also reduces ruck exhaus emissions. By using an informaion nework, we are able Enlighenmen Aciviies All employees paricipae in creaing enlighenmen hemes o improve environmenal awareness. All levels of he organizaion se objecives and arges o o coordinae delivery schedules beween companies. As a resul, we have almos halved he number of deliveries from 145 o 75, while decreasing charer service coss by 2.2%. reduce environmenal load and carry ou independen aciviies o accomplish hem. In fiscal 2002, 30 deparmens se goals, wih 19 of hem achieving heir goals. 19

22 New Eco-Conscious Technologies & Producs XGT-1000WR fluorescen X-ray esing equipmen Deecing Hazardous Subsances Recognized by EU direcives, WEEE and RoHS, he newly developed XGT-1000WR fluorescen X-ray esing insrumen can deec hazardous elemens such as cadmium and lead in elecronic componens, resuling in he reurn of some producs or he incorporaion of a produc warning in oher cases. The equipmen is capable of sensing hazardous elemens in an exremely small objecive area (1.2 mm) wih very high sensiiviy (cadmium sensiiviy 2 ppm). A CCD camera makes i easy o idenify he measuremen poin. Sraighforward analysis of any iem is possible, from cables o elevision casings. OBS-1000 on-board emissions measuremen sysem World s Firs On-Board Emissions Measuremen Sysem HORIBA has developed he world s firs HORIBA iniiaed a campaign called Joy analyical emissions sysem for on-board & Fun: Eco-Drive EKI-DEN, on January measuremen and recording of raw 21, HORIBA Group voluneers exhaus gases, fuel consumpion and drove vehicles fied wih he On-Boardsimulaneous collecion of daa from he Sysem hroughou Japan, he Unied vehicle and driving environmen. The new Saes and Europe in a relay, aking vially On-Board-Sysem has far-reaching environmenal and economical applicaions. relaed daa, which has been repored o imporan environmenal and energy- To celebrae 50 years in business, schools and on our homepage. Diesel Gas Measuring Sysem The exhaus gas from diesel engines is diesel engines. In cooperaion wih affiliaed companies, HORIBA has designed a hough o conain dangerous carcinogens. To paricipae in he movemen o exhaus measuring sysem wih echnology o deec exremely low levels of car- eliminae his problem, HORIBA has buil a research faciliy o es he exhaus gas of cinogens in diesel emissions. Measuring exhaus gas in Chicago during he EKI-DEN relay 20

23 Communicaion, Healh and Safey Acively Communicaing wih Sociey hrough our Corporae Aciviies Environmenal Communicaion Applicaion for Awards Eco Kyoo 21 Sysem Sponsor Kyoo Prefecure Resul Acceped in all 3 divisions 3R (Reduce, Reuse, Recycle) Promoion Meri Award Recycling Promoion Council Awarded Chairman s prize for 3rd consecuive year for recycling prin circuis Eco Kyoo 21 cerificaion Nikkei Environmenal Managemen Survey Nikkei Research 2002: 96h place Nominaed Divisions: Prevenion of global warming (for he reducion of CO2) Promoion of a recycling sociey (for aggressively reducing wase) Regisered Division: Eco-syle (for promoing ISO a schools and encouraging a charge sysem for supermarke bags ec.) Visis, ours, informaion gahering 3% Requess for cooperaion, informaion 5% Environmen-Relaed Inquiries Oher 16% Requess for quesionnaire resuls 44% HORIBA Recognized by Eco Kyoo 21 The Kyoo Prefecure governmen nominaed HORIBA for he firs ime as a model business for environmenal proecion as par of Eco Kyoo 21. Oher Kyoo Complains and Accidens HORIBA conducs volunary conrol measures o ensure he prevenion of problems relaed o waer qualiy from facory effluen, noise and he emission of harmful subsances. We insalled efficien drainage faciliies o neuralize acids, and employed ph meers o monior inernal wase sysems. Furhermore, we formula- Environmen-Relaed Inquiries We received 75 inquiries, down 12% from he previous year. Requess were for docu- nominaions of HORIBA were for he prevenion of global warming, he promoion of a recycling sociey and eco-syle. ed a mainenance manual o preven noise polluion by using proper equipmen conrol. We received one complain for noise during fiscal The problem semmed from he sudden freezing up of an air condiioning uni. In response o he complain, we promply sopped he equipmen and solved he problem. menaion relaed o he PRTR Law and EU direcives (WEEE and RoHS) increasing. Research, maerial requess 32% 21

24 Communicaion, Healh and Safey Social Aciviies Conduced Voluneer Clean-Up Aciviies During his pas fiscal year a oal of 143 Aid) and Nagoya. In addiion, 14 workers HORIBA employees paricipaed in various ook par in he campaign o clean he rubbish collecion evens hroughou Suma seashore near Kyoo. Japan, including Tokyo (Arakawa Clean Arakawa Clean Aid Increasing Environmenal Awareness in Children Wih he objecive o raise public ineres menal-relaed alks and demonsraions. in environmenal issues, HORIBA echnicians each lessons o elemenary school equipmen ha measures car exhaus gas As one example, children were shown children. Using HORIBA srenghs as a emissions o help preven global warming, manufacurer of analyzing and measuring and a ph meer o measure acid rain. equipmen, he lessons consis of environ- Conducing a lesson a elemenary school A Workshop on Waer Qualiy sponsored a he World Waer Forum HORIBA co-sponsored a workshop on waer qualiy monioring of lakes a he 3rd World Waer Forum wih ILEC (Inernaional Lake Environmen Commiee Foundaion). As par of he presenaion, we proposed he esablishmen of global waer qualiy monioring sandards. HORIBA workshop a he World Waer Forum 22

25 Worker Healh & Safey Healh & Safey Based on he principle ha every employee is imporan, HORIBA is resolue in is effors o ensure a safe and comforable working environmen. Iniiaives aimed a safey include he esablishmen of a healh and safey commiee o promoe he eliminaion of accidens and healhiness in body and mind. Healh & Safey Managemen Srucure Board of Direcors Managemen Srucure Commiee Srucure Safey Manager Company Presiden Healh & Safey Commiee Healh Manager General Healh & Safey Manager High Pressure Gas Meeing Fire exinguishing drill Indusrial Physician Healh & Safey Promoion Officer Manager of Head Office/General Affairs Deparmenal Heads Radioacive Maerials Meeing Tokyo Healh & Safey Commiee Healh Officers Liaison Commiee Healh & Safey Manager Team Leaders Employees Heads of Operaions Elecriciy & Technology Commiee Machine Technology Commiee Chemical Technology Commiee Top managemen inspecion Safey Saisics (rae) Aiming for Zero-Accidens HORIBA conducs safey-oriened raining for managers and new employees o We have a goal of 1,600 consecuive days regular inspecions of working condiions. promoe safey in operaions and eliminae accidens alogeher from he work- Occupaional Healh and Safey Sandard wihou accidens based on our place. Top managemen, healh officers (OHSAS). and indusrial physicians also conduc Towards a Comforable Work Environmen To ensure safe and comforable working harmful subsances, we conduc regular, condiions a sies ha handle designaed independen evaluaions of faciliies Frequency rae = no. of incidens ha cause shudown/worker exended hrs x 1,000,000 Severiy rae = days los/worker exended hrs x 1,000 Encouraging a Healhy Lifesyle We acively encourage employees o aend lecures on healh and obain medical checkups, while also using medical consulaion services. Moreover, we creaed a healh follow-up sysem wih reexaminaions, in-deph checks and ongoing monioring. We ry o preven healh problems by uncovering hem as early a possible. 23

26 Communicaion, Healh and Safey Boosing Employees Compeencies Fosering an Advenurous Spiri o be Top in he World HORIBA consanly aims o be he op global We srive o implemen creaive ideas and insrumen companyby working o provide reforms everyday. We are currenly aiming o superior producs based on our sae-of-hear echnology. To raise cusomer saisfacion, aggressive invesmen in R&D and expansion achieve 100 billion in Group sales hrough we seek o increase produc and service qualiy o he highes possible degree. To achieve planning o creae a new human resources of our global nework. Accordingly, we are his, all employees are encouraged o pursue sysem o develop he workers of oday ino advenurous and enrepreneurial behavior. he leaders of omorrow. Linking Managemen and Individual Objecives Wha does each employee have o do o group of expers o pursue challenges help achieve Company and divisional aimed a increasing personal value. goals? To clarify required acions, we Employee se objecives and resuls are inroduced a arge formulaion sysem in released on he company inrane so ha Each employee has se goals based each deparmen knows wha iniiaives on managemen objecives and is working oher groups have underaken. This aids owards speedy achievemen. We have in boosing collecive power and maximizing also boosed compeiiveness by creaing a synergies. Supporing Sar-Up Businesses Wih he objecive o develop an enrepreneurial spiri in our employees, we inroduced a venure business suppor program in 2000 o offer financial and human resource assisance o sar-up businesses. This has led o he birh of a number of new companies ha can respond o diversified needs in new marke areas. Developing Global Personnel HORIBA producs have been delivered o worldwide markes for many years. Therefore we encourage our employees o adop a more worldwide perspecive in heir oulook. We inroduced an overseas rainee program in 1977, sending a number of employees abroad for specialized educaion. We also esablished a foreign-based operaions raining program in 2003 o expand our globally culured personnel. Employing he Physically Challenged HORIBA does no discriminae in any way agains people wih disabiliies, opening our doors o all hose who are willing. To accommodae he physically challenged, we have inroduced special ramps, elevaors and oile faciliies. The number of hese employees has risen seadily since 1995, when he Company modified he employmen crieria. In 2001, we were awarded a special commendaion from he mayor of Kyoo for our effors for our physically challenged employees. 24

27 Hisory of Environmenal Aciviies Measures Taken by Horiba Relevan World Evens 1970s 1980s 1990s 2000s Year Environmenal Preservaion/Improvemen Aciviies Launched a series of measuring insrumens for waer reamen and waer qualiy monioring sysems. - Esablished an environmenal conrol secion wihin he company Nine HORIBA personnel passed he naional examinaion for polluion conrol supervisor - Esablished a polluion conrol sysem wihin he company Regisered he company's wasewaer reamen faciliies in line wih legislaive requiremens for waer polluion conrol Conneced public sewage by building sewage sysems Esablished a commiee for environmenal man age men wihin he company Reduced he use or swiched o subsiues for chlo rine-based organic solvens and he specified CFCs Sopped he use of 1,1,1-richloroehane and swiched o dichloromehane - Eliminaed use of CFC-113 (shifed o HCFC-225b) Sipulaed he company's conribuion o environ menal managemen in he corporae philosophy Commenced preparaion for EMS (BS7750) - Sared he raining of environmenal audiors wihin he company Launched he projec o qualify for ISO14001 cerificaion. - Sipulaed he company's environmenal philosophy and he environmenal policy Sared aciviies o disconinue he use of subsiues for CFCs and dichloromehane The HORIBA environmenal managemen sysem was cerified as meeing ISO requiremens Sopped all use of HCF HORIBA was designaed a 2nd model facory for saving energy. - Sared a preparaory work on rules for PRTR Published he firs ediion of Gaiarepor Sopped all use of dichloromehane, a chlorinebased organic solven Independenly developed oal environmenal monioring sysem HORTEM Implemened he recycling of packaging maerials in line wih legislaive requiremens Esablished he Environmenal Projec Sage Began projec o expand environmenal managemen aciviies based on ISO o all he local sales offices English version of environmenal repor firs issued Obained ISO a overseas subsidiary HAD Esablished self-approved environmenal mark Awarded he Chairman s Prize from he 3R (Reduce, Reuse and Recycle) Promoion Commiee - Paricipaed in rubbish collecion in Kyoo, Tokyo and Nagoya Iniiaed inegraed managemen sysem for qualiy, environmen and safey - Inroduced lead-free prin circuis in 14 producs Year Technical developmen/exernal Aciviies Developed a glass elecrode ph meer and enered he analyical insrumens business Developed a non-dispersive Infrared Gas Analyzer Launched a series of measuring insrumens for waer reamen and waer qualiy monioring sysems. Sared markeing air qualiy and waer qualiy for he monioring sysems Became a charer member of he Japan Environmenal Technology Associaion Donaed he Sensorize Tower, a display on air polluion monioring, o Kyoo Ciy Presened vehicle for measuring air polluion o Chinese Academy of Sciences - Opened "HONEST" websie on acid rain Donaed acid rain measuring equipmen o elemenary school in Kyoo hrough accumulaed bell marks - Paricipaed in he Eco Brazil Exhibiion held concurrenly wih he UNCED. - Independenly developed and commenced operaions of he Reurnable Display Booh Inroduced an air background observaion sysem o he Minami Torishima Observaory, Japan Meeorological agency Published message regarding environmenal issues in Kyoo magazine, "Club Fame" in conjuncion wih Qinghua Universiy Developed air polluion monioring equipmen for HAPs Organized an inernal meeing on he environ men in corporaion wih he foreign paricipans of COP3 held in Kyoo. - Paricipaed in he ECO JAPAN exhibiion held during COP Developed waer qualiy monior ha can measure 13 iems a once - Dispached acion and guidance personnel hrough a JICA projec o suppor waer qualiy managemen in Paraguay HORIBA HIT-700 digial driving recorder won an award in he 2nd Eco-drive Cones (March) Esablished Bio Applied Sysem, Ld. o analyze endocrine disrupors. - Sponsored workshops a he 9h Inernaional Conference on he Conservaion and Managemen of Lakes Compleed Miyako Ecology Cener and inro duced permanen displays Sared round he world relay wih car exhaus measuring vehicle Sponsored and held workshops for he 3rd World Waer Forum Year Indusrial Wasewaer Conrol law Basic Ani-Polluion Law Clean Air Law Clean Waer Law - Revised Clean Air Ac (U.S.A.) Environmen Agency - Qualificaion of Polluion Conrol supervisor Regulaion o Preven Gross Waer Polluion Monreal Proocol on Subsances ha Deplee he Ozone Layer The Environmen Charer: The Federaion of Economic Organizaion Unied Naions Conference on Environmen and Developmen Basic Environmen Law Unied Naions Framework Convenion on Climae Change Packaging Maerials Recycling Law Appeal for Environmenal Preservaion by he Federaion of Economic Organizaion Kyoo Proocol o he Unied Naions Framework Convenion on Climae Change a COP Revised Energy Saving Law Promoion of Conrol of Chemicals Law Guidelines on Environmenal Accoun Basic Formaion of Recycling Sociey Law Inernaional Acid Rain Conference a Tsukuba Enforcemen of Polluan Release and ransfer Law Enforcemen of Home Appliances and Food Recycling Law Enforcemen of Green Purchasing Law Implemened fifh series of waer qualiy regulaion Announced mehod o recover and breakdown CFCs Announced policy o reduce NOx/PM in cars Framework Convenion on Climae Change approved by Kyoo Proocol Announced EU direcives (WEEE and RoHS) - Implemened law on soil polluion 25

28 Explore he fuure HORIBA, Ld. 2, Miyayanohigashi-cho, Kisshoin, Minami-ku, Kyoo , Japan TEL: (81) FAX: (81) hp:// Fron cover: Gaia was he Greek goddess known as Moher Earh who brough abou purificaion and prosperiy. HORIBA, a maker of analyical and measuring equipmen, provides producs ha keep a wachful "eye" on he earh, conribuing o he preservaion of he environmen. Using his premise as he mainsay of is operaions, HORIBA expresses is websie as "GAIAPRESS" and is environmenal repor as "Gaiarepor." This repor was prined on recycled paper. Prined in Japan