With the Global Environment(The Environment)

Global Warming Preventive Measures

We are developing an environmental management system to be an Asian company. In order to take measures to significantly cut the amount of greenhouse gases with a view to achieving a low-carbon society, we expanded the scope of our reporting targets.

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Summary for Fiscal 2013

If calculated for the existing scope of operations using the electricity emissions factor of 0.378 kg-CO2/kWh (which is the overall power average in 2000 as reported by the Federation of Electric Power Companies), the KOKUYO Group's CO2 emissions in fiscal 2013 totaled 26,626 tons, 866 tons more than in the previous fiscal year. Based on estimates, there were emission reductions of 768 tons due to operational improvements and 281 tons due to equipment improvements. Manufacturing operations and the closing and consolidating of facilities raised emissions by 1,915 tons. As a result, there was an effective reduction in CO2 emissions of 1,049 tons from a combination of operational and equipment improvements. Consequently, excluding the impact of production activities, emissions were down 4.1% from the previous fiscal year to allow us to meet our goal of a 2.8% reduction.

Looking at sources of CO2 emissions, there was a decrease of 537 tons at factories due to higher manufacturing efficiency and other improvements. However, factories recorded a net increase in emissions of about 954 tons because growth in production volume raised emissions by 1,491 tons. For distribution activities, although emissions increased by 250 tons because of a higher volume of operations, there was a reduction of 178 tons due to heightened measures to conserve electricity and other energy use for a net increase in emissions of 72 tons. In the offices, emissions were down 160 tons thanks to the more efficient use of heating and cooling systems and the effective use of heat storage. Additionally, to use energy more efficiently, we oversee unit energy consumption, which is obtained by dividing energy consumption by sales. In fiscal 2013, our unit energy consumption was 0.9% less than in the previous fiscal year.

Major Increase in CO2 as Emission Figures Worsen

If the figures for each of the various countries on the greenhouse gas (GHG) protocol website made public by the World Business Council for Sustainable Development (WBCSD) and the World Resource Institute (WRI) are adopted as the figures for the CO2 emission coefficients and added to the Japanese CO2 emission coefficients based on the Act Concerning the Promotion of Global Warming Countermeasures (for fiscal 2013, figures by electric power utility in fiscal 2011 and actual emission coefficients in fiscal 2012), then the total rises 7,178 tons to 33,804 tons.

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Expanding the Scope of Reporting

While 17 companies were included in the scope of CO2 emission reporting (reporting scope A(*1)) until fiscal 2011, all consolidated subsidiaries came to be included in the scope of reporting starting in fiscal 2012 (for fiscal 2013, 36 companies; reporting scope B(*2)). As a result, CO2 emissions totaled 44,777 tons (including 1,800 tons at non-consolidated sales companies). The use of a less favorable emission coefficient and the extension of CO2 emission reporting to the supply chain have resulted in significant changes for the KOKUYO Group. Consequently, we believe that the medium-term goals for emissions will have to be reexamined.

*1: A: KOKUYO Co., Ltd., 13 consolidated subsidiaries, and 3 affiliated companies

*2: B: KOKUYO Co., Ltd., 24 consolidated subsidiaries, and 11 affiliated companies

* Related information:「Changes in CO2 emissions

Global Warming Preventive Measures at Factories

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Solar panels installed at KOKUYO Product Shiga

Operational improvements at factories lowered CO2 emissions by 325 tons. This was achieved in part by replacing product molds faster, reviewing compressor operations, performing inspections, strictly following operating rules for production equipment, and conducting energy checks to reduce waste. Installing energy-conserving equipment, such as inverters and LED lighting, also cut emissions by 212 tons. A higher volume of production raised emissions by 1,491 tons over the previous fiscal year. However, the aforementioned operational and equipment improvements lowered emissions by 537 tons for a net increase of 954 tons (649 tons in Japan and 305 tons at factories overseas).

Global Warming Preventive Measures for Distribution

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Hybrid street lights installed at the KOKUYO Metropolitan IDC

Emissions associated with distribution (storage and shipments) were 72 tons more than in the previous fiscal year. Constant measures to conserve energy resulted in operational improvements that cut emissions by 112 tons. Equipment improvements, such as the installation of energy-efficient lighting fixtures and the reviewing of the proper lighting of distribution centers, lowered emissions by 66 tons. At the KOKUYO Logitem Ina Distribution Center (which has an automated multilevel warehouse), a power demand monitoring system was installed to reduce this facility's peak electricity use. While CO2 emissions attributed to distribution increased 352 tons due to the opening of the KAUNET Sapporo Distribution Center and a larger volume of operations in 2013, the net increase was 72 tons because of offsetting by a reduction of 178 tons from operational and equipment improvements and 102 tons from the closing and consolidation of distribution facilities.

Global Warming Preventive Measures at Offices

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Solar panels installed at our Shinagawa office

Offices lowered CO2 emissions by 160 tons over the previous fiscal year. To accomplish this, we conducted a review of the methods by which heating and cooling systems were being operated, a review of working styles, promotion of no-overtime days and activity encourages employees to go home early, and reduction of electricity use, such as by replacing lighting fixtures with LEDs. At our Shinagawa office, an electric power visualization system is used to lower electricity use during on-peak hour of daytime through the efficient operation of heating and cooling systems and heat storage tanks. In addition, a program that encourages people to use public transportation for sales activities cut gasoline use by 7%, which represents a reduction in CO2 emissions of 74 tons. In fiscal 2013, the cool biz and warm biz campaigns were combined into a smart biz campaign that is in effect all year long.

The Voice of a Person in Charge

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Shiori Yomogida
Environmental Business TCM Tasks
TCM Value Unit
KOKUYO Furniture

Renewing Our Understanding of How People Work and the Importance of Awareness on Their Part (ECO LIVEOFFICE SHINAGAWA)

The ECOLIVE Office was opened in November 2008. Progress has been steadily made towards achieving our goal of reducing CO2 emissions to half of what they were before renovations were undertaken. However, emissions rose on a year-on-year basis for the first time in fiscal 2012. In fiscal 2013, operating rules were reviewed and strictly applied once again to employees working at this office. This helped to bring about a 56.2% reduction in emissions.

It goes without saying that basic rules consist of such stipulations as those that require that employees refrain from using electricity wastefully. In 2013, particular effort was directed at area lighting during overtime periods. Thus, the use of lighting is reduced after 7:00 pm and only certain areas are permitted for overtime use.

Although we were beginning to lose sight of what this initiative was all about after the passage of five years from the opening of our office, we were glad to have had a chance to renew our understanding of how people work and the importance of awareness on their part.

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