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(1)

F l e x i b i l i t y C h a l l e n g i n g S p i r i t

S i n c e r i t y

2010

ENVIRONMENTAL

(2)

Environmental Philosophy

Environmental Policy

The JFE Group considers improving the global environment a management priority and promotes business operations in harmony with the environment. These efforts aim to create a prosperous society.

1. To reduce the environmental impact of all business operations

2. To make contributions through technologies and products

3. To make contributions through conservation of resources and energy

4. To promote communication with society

5. To promote international cooperation

Striving to “exist in harmony with the global environment” and “improve the global environment” through our business activities, as called for in the Corporate Standards of Busi-ness Conduct and Environmental Philosophy, the JFE Group is actively working to develop innovative technologies and promote international cooperation to protect the global environment.

As reflected in COP15, held in December 2009, and the passage of Japan’s Act on Promotion of Global Warming Countermeasures, public interest in, and demands regard-ing, actions concerning global warming continue to grow.

For its part, the JFE Group will carry on with its concerted efforts to protect the environment as it works to steadily achieve the Voluntary Action Plan reduction goals for the first commitment period for the Kyoto Protocol.

The JFE Group is striving to improve its energy efficiency, which already ranks among the best in the world, by pursuing its own energy efficiency activities and technology development,

and working to develop significant new CO2 reduction

technolo-gies, for example, through its participation in the CO2 Ultimate Reduction in Steelmaking process by Innovative technology for Cool Earth 50 (COURSE50) project. Furthermore, by taking our pursuit of activities aimed at lowering environmental burden through the provision of environmentally friendly products and technologies to an even higher level, we will continue to play an important role in protecting the global environment.

Receiving feedback from our stakeholders as we improve our environmental initiatives is important for improv-ing the quality of our environmental management. We, there-fore, encourage you to send us your unbridled opinions on our environmental activities.

Kohei Wakabayashi

Executive Vice President and Representative Director JFE Holdings, Inc.

Pursuing Business Development in Harmony

with the Environment

Message from Senior Management

F l e x i b i l i t y C h a l l e n g i n g S p i r i t

S i n c e r i t y

Editorial Policy

The JFE Group Environmental Sustainability Report 2010 describes the Group’s environmental protection activities for FY2009, as well as the results of those activities in the business operations of JFE Holdings, Inc., which is the holding company of the JFE Group. This report was edited/prepared in accordance with the “Guidelines for Environmental Reports (FY2007 edition)” issued by Japan’s Ministry of the Environment and “Sustainability Reporting Guidelines Version 3.0” Please note that this report is disclosed only on our website. If you need a brochure(s), please print this document. *For further Group information, business descriptions, product information, and operation facilities, etc., please refer to JFE Group Business Report 2010 or our website: www.jfe-holdings.co.jp/en/

Message from Senior Management

CONTENTS

Special Feature

JFE Steel’s Activities to Prevent Global Warming

Environmental Management System

Communication with Society Related to the Environment

Environmental Accounting

Reducing Environmental Loads in Business Activities

Priority Environmental Targets and Results

Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities at JFE Steel

Reducing Environmental Loads in Business Activities at JFE Engineering

Reducing Environmental Loads in Business Activities at Universal Shipbuilding

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities at JFE Urban Development

Reducing Environmental Loads through Products and

Technologies

R&D of Environmental Conservation Technology

JFE’s Technologies Contribute to Global Environmental Protection

Recycling Technology Supporting a Sustainable Society

Marine Environmental Activities

Third-Party Comments

1

2

3

11

12

13

14

15 17

19

23

25

27

27

28

29

31

37

39

41

2010

ENVIRONMENTAL

(3)

Crane

Bucket

CDQ

Drum

Turbine

Power generator

Circulating blower Coke oven

Reservoir

(PJ*3)

‘90 ‘01 ‘02

2,216

‘04 ‘05

‘03 ‘08~’12

(Target)

‘95 ‘00

2,234

‘06 ‘07

2,196

(FY)

1,600 1,800 2,400

2,200

2,000 2,600

2,440

2,273 2,313 –11.5%

–10%

Source: The Japan Iron and Steel Federation (JISF)

‘08

2,159

2,264 2,239

2,380

2,164 2,349

Boiler CDQ operation and exterior view

During FY2008, energy consumption was reduced 11.5% compared to FY1990. As a supplementary measure to achieve program goals, JISF has made emission reduction purchase agreements of 56

million tons of CO2 in total under the Kyoto Mechanisms. Of them, 40 million tons has already been

registered with the UN.

Hiroshi Nishizaki

Vice President

JFE Steel Corporation

JFE Steel is constantly working to fight global warming.

FY2009 was the second year of the first commitment period for the Kyoto Protocol*1, and

the 15th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP15) was held in Copenha-gen in December 2009. Important developments, such as discussion of the Act on Promotion of Global Warming Countermeasures in the Diet in June 2010, have also taken place in Japan. While responding to these demands flow, JFE Steel will strive to take serious steps toward realizing a low-carbon society in accordance with the Group’s Corporate Vision of contributing to society with the world’s most innovative technology.

Examples of specific initiatives we have implemented are given below.

• Steady implementation of the Japan Iron and Steel

Federation’s (JISF’s) Voluntary Action Program*2

• Introduction of new processes wherever possible

to reduce energy consumption and CO2 emissions

• Further development and promotion of

high-performance steel to reduce society’s CO2

emissions

• Development of Ferro-Coke production process and other innovative technologies that anticipate the future

Under our Second Medium-Term Business Plan (FY2006 – FY2008), we made approximately 100 billion yen in CO2 emission reduction and

energy-efficiency investments to achieve goals stated in the JISF’s Voluntary Action Program, and have seen steady improvements as a result. We continued to make such investments in FY2009. Examples of main investments made to date include: •Construction of a new CDQ

(Commenced its operations in March 2009 at West Japan Works, Kurashiki)

•Construction of a new high-efficiency oxygen facility

(West Japan Works, Kurashiki)

•Upgrade of blast furnace stoves to energy-efficient models

(West Japan Works, Fukuyama and Kurashiki) We are also taking energy saving actions on a continuous basis, such as conducting energy-saving patrols at our head office and business offices.

*1 First commitment period for the Kyoto Protocol

The period FY2008 to FY2012. The world’s developed countries have committed to reducing greenhouse gas emissions by 5% compared to the 1990 level during this period.

*2JISF’s Voluntary Action Program

The goal of the JISF’s Voluntary Action Program is to reduce average energy consumption during the period FY2008 to FY2012

by 10% compared to the 1990 level (premised on the production of 100 million tons of crude steel). As an additional initiative, the JISF has also established the goal of recycling 1 million tons of waste plastic, premised on the establishment of a collection system. *3 PJ

Petajoule (1015 joules). 1PJ is equal to the amount of energy in 25,800kℓ of crude oil.

CDQ process

Progress of the JISF’s Voluntary Action Program

Message from Senior Management

Initiatives for Achieving the Voluntary Action Program

JFE Steel’s Activities to Prevent Global Warming

—To Realize a Low-Carbon Society—

(4)

• Reduction of reheat furnace fuel

• Large-scale waste heat recovery equipment

BF top pressure recovery turbine (TRT), sintering waste heat recovery, etc.

• Process continuation

Continuous casting line, continuous annealing line, etc.

Introduction of energy saving equipment

History of Energy Saving Activities

• Waste plastics feeding into BF

• Introduction of regenerative burner

• Endless rolling

• City gas blowing technology for BF

• High efficiency oxygen plant

Further promotion of energy saving

• Added a new shaft furnace (commenced its operation in August 2008)

• Enhanced CDQ (commenced its operation in March 2009)

• Broader introduction of regenerative burner

• Augmentation of high efficiency oxygen plant

• BOF gas sensible heat recovery

• Introduction of Super-SINTERTM • Upgrade of blast furnace stoves

Global warming prevention measures by energy saving

‘73 ‘80 ‘85 ‘90 ‘95 ‘04 ‘05 ‘06 ‘07 ‘08

Index (FY1973 = 100)

(FY)

‘09

100

JFE Steel

67

67 65 64 65

63

Unit Energy Consumption Index 37% cut

83 77 79 88

‘09 20 24 28 32 (FY)

‘90 ‘05 ‘06

29.04

‘07 ‘08

+10%

(Millions of tons per year)

23.55 26.72 30.52 26.55

25.83

30 28 26 24 22 ‘09

587

22.7

(FY) (GJ/t-s) 599 200 0 400 600 800 ‘90 666 ‘05 641 ‘06 677 ‘07 703 ‘08 617 ‘08~‘12 (target) 23.0 23.2 (PJ) Unit energy consumption Total energy consumption

28.3 –10% –12% –20% 24.0 23.3 1.90 0 2.50 (t-CO2/t-s) 2.00 2.10 2.30 2.20 2.40 20 30 10 40 50 60 (FY)

‘90 ‘05 ‘06 ‘07 ‘08 ‘09 ‘08~‘12

(target)

(Millions of tons)

50.4

52.9 58.1

2.47

Unit CO2 emissions Total CO2 emissions

–9% –13% –21% 2.02 2.00 1.98

1.95

2.07 55.3 61.2 52.7 58.6

In FY2009, we worked to achieve even greater reductions in CO2 emissions, despite production

cutbacks, and succeeded in lowering our unit energy consumption to 37% of what it was in FY1973. As a result, JFE Steel has achieved world-class efficiency in energy consumption. As shown in the graph below, JFE Steel has

been working for a long time to use energy more

efficiently and reduce CO2 emissions. Our efforts

include the recovery of by-product gases gener-ated in the process of ironmaking and

steelmak-ing and the use of CDQ*1 and TRT*2 to recover

waste heat and pressure. *1 CDQ (Coke Dry Quenching)

*2 TRT (Blast Furnace Top Pressure Recovery Turbine Generation)

Crude steel production through the first half of FY2009 fell sharply in response to the global economic decline that began in FY2008. Second-half production, on the other hand, recovered on strong export market conditions, leaving total production for the year basically unchanged from FY2008, and 10% higher than the figure for FY1990.

Even though our crude steel production for FY2009 increased by 10% compared to FY1990, our energy consumption fell by 12% in total and the amount of energy we used to produce 1 ton of crude steel (unit energy consumption) dropped by 20%.

The level of energy consumption still remains lower, an 8% decrease, when compared with that of FY2005 where the production volume of crude steel was almost the same level of that of FY2009.

Even though our crude steel production for FY2009 increased by 10% compared to FY1990,

our CO2 emissions fell by 13% in total and

the amount of CO2 emissions we used to

produce 1 ton of crude steel (unit CO2 emissions)

dropped by 21%.

The level of CO2 emission still remains

lower, a 9% decrease, when compared with that of FY2005 where the production volume of crude steel was almost the same level of that of FY2009.

Unit Energy Consumption Index at JFE Steel

Crude Steel Production at JFE Steel

Energy Consumption and Unit Energy Consumption at JFE Steel (Estimates)

CO2 Emissions and Unit CO2 Emissions at JFE Steel (Estimates)

Multiple awards for energy saving

JFE Steel’s ongoing efforts with regard to energy saving have received various awards for its contri-butions to society. In FY2009, our technical endeavors were again acknowledged with the following awards.

JFE Steel’s Super-SINTERTM selected as a Low CO2 Kawasaki Pilot Brand Three JFE Group technologies, including JFE Steel’s

Super-SINTERTM, were selected as Low CO2 Kawasaki Pilot Brands by the City of Kawasaki for FY2009. This is the first year for the awarding of this designation, which recognizes technologies and products that are particularly effective in reducing CO2 emissions and were researched, developed, and created in the City of Kawasaki. Super-SINTERTM is a technology for infusing

hydrogen-based fuel into a sintering machine, and JFE Steel was the first company in the world to

•Contribution Prize of the 42nd annual Ichimura Industrial Awards for development of high-strength steel with high earthquake resistance. •56th Okochi Memorial Production Prize for

develop-ment of nano-scale surface-treated high-performance steel sheet for automobiles.

succeed in applying this type of technology commer-cially. Our East Japan Works (Keihin) has been using Super-SINTERTM technology since January 2009.

Recognition at Kawasaki International Eco-Tech Fair 2010

Approaches to Energy Saving and CO

2

Reduction

Crude Steel Production for FY2009

Energy Consumption and Unit Energy Consumption for FY2009

CO

2

Emissions and Unit CO

2

Emissions for FY2009

JFE Steel’s Activities to Prevent Global Warming

Special Feature

37

% cut

Unit energy consumption in comparison to FY1973

20

% cut

Unit energy consumption in comparison to FY1990

21

% cut

Unit CO2 emissions

(5)

JFE Steel’s Estimated Non-Energy-Related CO2 Emissions

(FY) Truck 30%

JFE Steel’s Modal Shift Rate

Ship+Rail

70%

Ship+Rail

95% Ship+Rail

40%

Truck

60%

Truck 5%

Overall

Delivery distance of 500 km and

longer

Delivery distance of 500 km and longer

Total Modal Shift Rate for the Industry

Ships

1.39

Trains

0.1

Transformers

1.42

Automobiles

4.96

Boilers for power generation

0.63

Domestic

CO2 Emission

Reduction

8.51

million t-CO2

Export

CO2 Emission

Reduction

6.36

million t-CO2

Ships

0.24

Transformers

2.16

Automobiles

3.00

Boilers for power generation

0.96

Source: The Japan Iron and Steel Federation JFE Steel works with customers to help reduce

CO2 emissions not only in the development,

production, and supply of the high-performance steel necessary to realize a low-carbon society and pursue economic interests but also in the application of that steel in end-products used by consumers.

According to figures calculated by the

Institute of Energy Economics, Japan, for FY2008, Japan Iron and Steel Federation member companies, by supplying 7.97 million

tons of high-performance steel, reduced CO2

emissions from the usage of products by consumers by upwards of 14.87 million tons (8.51 million tons domestically, 6.36 million tons overseas).

To reduce CO2 and NOx emissions from the

transportation of steel products, JFE Steel is making a “modal shift” to relatively low-environmental impact ship and rail transporta-tion modes. In its pursuit of efficient transport, it is also taking steps like introducing the use of

large specialized freighters for transporting raw materials from overseas.

JFE Steel achieved a modal shift of 95% in

FY2009. The amount of CO2 emissions for

deliv-eries was approximately 300,000 tons.

To remove iron ore impurities, lime and dolomite

are added to BF and converters. The CO2 from

the breaking down of these materials is

non-energy-related CO2.

During FY2009, JFE Steel’s

non-energy-related CO2 emissions were approximately 1.75

million tons.

Source: Ministry of Land, Infrastructure, Transport and Tourism CO2 Emission Reduction Effect at the Stage of Using High-Performance Steel Products (FY2008)

Tour of the East Japan Works (Keihin) by METI Minister Naoshima

Minister of Economy, Trade and Industry Masayuki Naoshima and Masaki Koito, the Director of the Iron and Steel Division of the ministry's Manufac-turing Industries Bureau toured the East Japan Works (Keihin). After explaining measures the company is taking to protect the global environ-ment and stop global warming, JFE Steel person-nel escorted Mr. Naoshima and Mr. Koito on tours of areas including the waste plastic recycling plant, blast furnace, plate mill, and hot rolling mill, as they explained the steps JFE Steel is taking to reduce

CO2 emissions and protect the environment. Minister Naoshima on a tour of the hot rolling mill

Contributing to the Reduction of CO

2

through Our Products

Transportation Division’s Energy-Saving Measures

Non-Energy-Related CO

2

Emissions

100

50

0 150 200

‘05 ‘08

(10,000 t/year)

–5%

179 183

‘06 185

‘07 193

‘90 185

‘09

175

JFE Steel’s Activities to Prevent Global Warming

Special Feature

14.87

million tons

JISF’s reduction of CO2 emissions in

FY2008

95

%

(6)

Russia

•FS for conversion of a coal-fired power plant in Sakhalin to a natural gas-fired plant (2 others)

Ukraine

•FS for BOF gas recovery (FY2009) (2 others) Poland

•Study on introducing high-performance industrial technology for reheat furnaces in Poland

Vietnam

•FS for saving energy at Vietnam Steel Corp. (1 other)

China

•Waste heat recovery power plants for cement factories (Sichuan Province and 4 other locations) •Environmental preservation and an energy-

conservation diagnosis at Taiyuan Iron & Steel •DME production from unused coke oven gas •Study for energy-saving measures for lime

burning furnace

•Study of natural gas DME project in Sichuan Province (17 others)

Malaysia

•FS for power generation by waste heat recovery from cement production process Philippines

•Project for power generation by waste heat recovery from sintering furnace Indonesia

•FS for use of biofuel for an electric arc furnace (FY2009) (2 others)

Brazil

•Study on energy-saving measures by low- temperature waste heat recovery at Acominas Works (1 other) Pakistan

•FS for saving energy at Pakistan Steelworks India

•An energy conservation diagnosis at Steel Authority of India Limited

•Environmental preservation and energy conservation diagnosis at Vizag Steel •FS for waste heat recovery at sintering cooler at

Tata Iron and Steel Co., Ltd. (5 others) Bangladesh

•FS for rehabilitation and optimization of pipelines to reduce GHG emissions

Thailand

•Study on introduction of high-performance industrial furnace for steel rolling reheat furnaces in Thailan (6 others)

Mexico

•Energy conservation diagnosis for electric arc furnac

The U.S.

•Regenerative burners for reheat furnace at CSI

APP member nations

Preheating of Scrap with ECOARCTM Technology

Preheating of scrap with high-temperature waste gas

Continuous charging of scrap O2, C

Electrodes

International Cooperation Projects by the JFE Group

*1 APP

The Asia Pacific Partnership on Clean Development and Climate is an international organization founded in July 2005 to address climate change, energy security, and other issues. Its members include Japan, Australia, China, India, South Korea, the US, and Canada (joined in May 2007). *2 worldsteel

The World Steel Association (worldsteel) is comprised of approximately 180 of the major iron and steel companies and industry organizations in 55 countries, including Japan, the US, EU-member states, and Russia.

*3 ECOARCTM

A trademark of JP Steel Plantech Co.

JFE Steel is fighting global warming by applying world-class energy-efficiency technology in global initiatives like APP*1 and worldsteel*2 activities,

and through technical exchanges with China. In addition, the JFE Group is contributing to international society by actively pursuing the development of technology overseas.

Environmental Technology Exchanges

with China

The Japan Iron and Steel Federation (JISF) and the China Iron and Steel Association (CISA) have been holding the Japan China Steel Industries Conference on Exchange of Advanced Tech-nologies on Environmental Preservation and Energy Saving annually since 2005. The fifth meeting, held on April 27 and 28, 2010 in Anshan City in the Chinese province of Liaoning, featured active discussions focused on environmental protection technology.

JFE Group’s Overseas Technology

Development

•Waste Heat Recovery System for Sintering Plant This work, which is being undertaken as a NEDO energy efficiency model project in India, got under way in FY2009.

•ECOARCTM*3 Ecologically Friendly and

Economi-cal Arc Furnace

With its effectiveness recognized internationally, ECOARCTM technology is set for introduction in Korea.

In addition, the feasibility studies to introduce this

technology in Thailand are currently underway.

The JFE Group has used environmental

preser-vation, energy conserpreser-vation, and CO2 reduction

technologies in its R&D to contribute to interna-tional society by undertaking numerous

technol-ogy transfers that fight global warming and help developing and developed countries advance economically while protecting their environments.

Introduction of Regenerative Burners for CSI’s No. 5 Reheat Furnace

California Steel Industries (CSI), a joint venture of JFE Steel and Companhia Vale do Rio Doce of Brazil, is one of the largest steel re-rollers in the Western US. CSI completed construction on its No. 5 reheat furnace* on May 18, 2010 and has since brought it on line. This is the first large reheat furnace in the US to use regenerative burners and is 20% more efficient, in terms of specific energy consumption, than traditional reheat furnaces. A regenerative burner achieves extremely high heating efficiency by using heat from exhaust gas.

CSI No. 5 reheat furnace * Reheat furnace

Reheat furnaces are used to heat steel slabs, which are then put through hot rolling mills to produce hot-rolled steel sheets. Construction of a Pilot Plant for Ferro-Coke Production Process at the East Japan Works (Keihin)

JFE Steel has decided to construct a pilot plant* as part of its effort to develop processing technology for Ferro-Coke production, which constitutes a novel approach for greatly reducing CO2 emissions. Ferro-Coke is an innovative material that promises to not only improve the efficiency of iron ore reduction inside a blast furnace but also deliver significant reductions in the proportion of reduction agent used, thereby minimizing CO2 emissions and energy consump-tion. This construction project is being pursued by JFE Steel and three other blast furnace companies aiming to develop new, more resource-efficient iron production technologies. It is being subsidized by the New Energy and Industrial Technology Develop-ment Organization (NEDO), and the project partici-pants hope to perfect this new technology and commercialize it as soon as possible.

Fighting Global Warming through Environmental and Energy Technologies

Projects Outside Japan

JFE Steel’s Activities to Prevent Global Warming

Special Feature

* Construction of the plant began in December 2009 at the East Japan Works (Keihin), with completion scheduled to take about two years.

Current Ironmaking Process

Present Project

Reduced CO2

emissions

Energy saving

Iron ore

Coal High-grade

Shaft furnace

Innovative Ironmaking Technology Using Ferro-Coke

Briquetting Ferro-Coke production process

Charging material 1

Charging material 2

Charging material 3

Blast furnace

Expanded use of low-grade

materials

Ferro-Coke Sintering

machine

Coke oven

Iron ore

Coal Low-grade

Sintered ore

(7)

JFE Group Environmental Committee

Affiliated Company Environmental Committee Affiliated Company Environmental Committee

Universal Shipbuilding Corporation Environment Council

JFE Urban Development Environmental Committee

Kawasaki Microelectronics Environmental Committee

Group Environmental Liaison Committee Group Company

Environmental Liaison Committee JFE Engineering

Environmental Committee JFE Steel

Environmental Committee

Members: Persons responsible for environment

at JFE Holdings and each operating company Members: Persons responsible for environmentat each operating company and group company

Eco-Products 2009

Local elementary school students planting aquatic plants at the opening ceremony

Official recognition as one of 100 aquatic and green sites in the Kanto area of Japan

Under the JFE Group CSR Council, the JFE Group has set up the JFE Group Environmental Committee chaired by the President of JFE Holdings, as well as an Environmental Commit-tee in each of the Group’s operating companies and affiliated companies. With this multi-tiered

committee system, JFE has been dealing with environment-related issues, such as setting objectives for environmental protection activi-ties, checking progress of those activiactivi-ties, and improving environmental performance for the whole Group.

Each company in the JFE Group has been aiming to receive ISO 14001 certification in order to promote voluntary and continuous environ-mental activities. Four operating companies with production facilities have all received ISO 14001 certification for individual works. The JFE Group will continuously extend the number of accred-ited companies/production facilities.

At the JFE Group, environmental auditing has been conducted on the basis of ISO 14001 with the aim of enhancing environmental manage-ment quality. Regarding environmanage-mental auditing on the basis of ISO 14001, inspections are made by certification authorities, while internal auditing is conducted mainly by qualified employees who not only have taken the auditor-training course offered by an external institution, but also have experience in environment-related work.

The JFE Group participates in various exhibitions on environmental themes in order to provide stake-holders with necessary information on its activities. In December 2009, we participated in Eco-Products 2009, one of Japan’s largest environ-mental fairs, presenting our environenviron-mental initia-tives, along with our technologies/products that support entire society and life, and contribute to environmental preservation.

The JFE Group actively offers information related to the environment through the JFE Group website. Its environmental management policy, results and activities are introduced under the title of “Environmental Activities.”

Moreover, JFE has been cooperating with an environmental website “ecobeing,” where general knowledge on environmental issues is presented in an easily comprehensive way. Through this linkage, the Group introduces comments of “eco people,” who are innovatively involved in environ-mental issues. This is one example of JFE’s efforts to promote environmental awareness activities among the general public.

At the JFEThe JFE Group is actively conducting environmental education aiming to foster a corporate culture of engaging in environmental protection activities. In each operating company, environmental education is incorporated in training programs for new employees and promotions, and also includes annual programs at each level, covering environmental protection.

JFE Engineering and eleven other companies with business facilities in the Suehiro area of Yokohama’s Tsurumi Ward signed a joint greenifi-cation pledge made to the City of Yokohama and embarked on the Keihin no Morizukuri (Forest Building in. Keihin) project. In May 2009, JFE Engineering completed and held the opening ceremony for a public green space consisting of walking paths and a biotope, and developed with a subsidy from the City of Yokohama. Named the “JFE Tonbo Michi” (JFE Dragonfly Path) based on responses to a call for name suggestions, this

green space is overseen by volunteers invited to form the Tonbo Michi Fan Club. Volunteers under-take activities like cleaning the area around the biotope’s pond, trimming grass, and observing the behavior of organisms living in the biotope to protect its biodiversity. They are also taking steps to ensure maintenance of the biotope is continued by future generations. In August 2009, the Kanto Kensetsu Kousaikai and Ecosystem Conservation Society—Japan selected the “JFE Tonbo Michi” for inclusion in their list of 100 aquatic and green sites in the Kanto area of Japan.

JFE Holding’s environmental initiative website at:

www.jfe-holdings.co.jp/en/environment

Environmental website “ecobeing” at:

www.ecobeing.net Environmental Management System

Construction and Operation of the Environmental Management System

Promotion to Receive ISO 14001

Environmental Auditing

Exchanges through Exhibitions

Information through the Internet

Environmental Education

Opening of JFE Tonbo Michi

Environmental Management System

Communication with Society Related to

(8)

(Billions of yen) (Billions of yen)

100

0 200 400

300

‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08‘09

398.9

100

0 200 600

400 500

300

‘73 ‘75 ‘80 ‘85 ‘90 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08‘09

553.3

(FY) (FY)

* Investment in environmental protection:

Total investment in effective use of resources and environmental protection

In FY2009, environment-related capital invest-ment totaled 30.6 billion yen and expenses amounted to 90.4 billion yen. The ratio of environment-related capital investment against

total capital investment is approximately 18%. As a result of activities during FY2009, the effects of energy conservation were valued at an estimated 0.8 billion yen.

To promote energy saving and further reduce environ-mental loads, JFE has actively invested in plant and equipment based on R&D achievements in the Group’s proprietary environmental technologies.

Cumulative investment in energy saving since 1990 has reached ¥398.9 billion, enabling us to achieve energy efficiencies that rank among the

highest in the world. We are planning further investment in plant and equipment to promote global warming prevention. Meanwhile, cumu-lative investment in environmental protection since 1973 has reached ¥553.3 billion. We will continuously invest in measures to further reduce environmental loads.

Cumulative Investment in Environmental Measures* Cumulative Investment in Energy Saving

Cumulative Energy-Efficiency Investments (April 1, 2009, to March 31, 2010)

Description Investment Expenses

Investment & expenses related to JFE’s own business

Investment & expenses related to customers and society

Management Prevention of global warming Effective use of resources Environmental protection Miscellaneous Research & development Social activities

0.2 13.6 11.9 4.4 – 0.5 –

30.6

2.4 23.6 18.2 38.0 1.5 6.1 0.6

90.4

Monitoring & measurement of environmental influence, EMS-related activities, environmental education & training, etc. Energy conservation, effective use of energy, etc.

Recirculation of industrial water, recycling of by-products & waste generated in-house, waste management, etc. Prevention of air pollution, water pollution, soil contamination, noise, vibration, ground subsidence, etc.

Fees/charges, etc.

Technology development for environmental protection, energy conservation, prevention of global warming

Protection of nature, support for afforestation, information disclosure, exhibitions, advertising, etc.

Total

Environmental accounting data stated above was calculated on the basis of the following assumptions.

Above costs are environment-related investments and expenses at JFE’s steelworks, except the item of research & development, for which the scope is extended to cover the entire Group.

* The effects in environmental accounting such as expected effects and risk avoidance effect are excluded from calculations.

* Calculations do not include capital investments made primarily for purposes other than environmental protection, such as renovation of superannuated facilities, even if the process as a whole resulted in a net energy saving compared to the former process.

(Billions of yen)

Environmental Accounting

Transition of Capital Investment

F l e x i b i l i t y C h a l l e n g i n g S p i r i t

S i n c e r i t y

Priority Environmental Targets and Results 15

Energy/Material Flow in the Steelmaking Process 17

Reducing Environmental Loads in

Business Activities at JFE Steel 19

Reducing Environmental Loads in

Business Activities at JFE Engineering 23

Reducing Environmental Loads in

Business Activities at Universal Shipbuilding 25

Reducing Environmental Loads in

Business Activities at Kawasaki Microelectronics 27

Reducing Environmental Loads in

Business Activities at JFE Urban Development 27

Reducing

Environmental

Loads in Business

Activities

By Utilizing the World’s Most Advanced Technology

for Reduction of Environmental Loads

(9)

Group Companies FY2009 Priority Environmental Targets FY2009 Results FY2010 Priority Environmental Targets Refer to Pages

JFE Steel

JFE Engineering

Universal Shipbuilding

JFE Urban Development

Promote measures to prevent global warming

•Promoting measures to prevent global warming in line with the Voluntary Action Program of the Japan Iron and Steel Federation (JISF) (Compared to FY1990, we plan to achieve a 10% decrease in energy consumption for the period from FY2008 to FY2012)

Continuously strive to reduce environmental risks

•Comply with new laws and regulations

•Promote voluntary environmental conservation activities

Promote byproduct recycling

•Continue development of recycling technology for dust and sludge and implementation of actual equipment

Improve waste control

•Introduce an electronic manifest system to the entire group, targeted at 80% computerization

•Develop a group-wide waste material collection system

Promote energy-saving activities in production divisions

•Tsurumi Works: reduction of 13% compared to FY1997 (electric power consumption per hour of operation)

•Tsu Works: increase of 5% compared to FY1997 (electric power consumption per unit weight processed)

•Shimizu Works: a reduction of 24% compared to FY1997 (electric power consumption per unit weight processed)

*An increase compared to FY1997 is anticipated for Tsu Works due to an increased usage of high current welding machinery.

Promote reduction of construction site waste

•Recycling rate of 74% or more

Promote measures to prevent global warming

•Target a 10% reduction in electric power consumption in basic unit within FY2010 compared to the level of FY1990 (scope: new shipbuilding shipyards)

•Target a 1% reduction in energy consumption in basic unit compared to the previous year (scope: group-wide level)

Reduce waste emissions

•Target the waste recycling rate to be 85% or more at the stage of production in FY2010 (scope: group-wide level)

Take measures to regulate VOC emissions

•Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more) Monitor chemical substances restricted under PRTR

•Monitor emission into the air as well as transfer to other places of the restricted chemical substances, particularly Xylene, Ethylbenzene, and Toluene (scope: 5 shipyards)

Promote energy-saving activities in the condominium development business

•Acquire Housing Performance Evaluation Reports

Anti-degradation of structural frames measure grade: Grade 3 Energy efficiency grade: Grade 3

Formaldehyde emission control grade: Grade 3

•Promote the use of energy-conserving materials and facilities

Promote measures to prevent global warming in the facility manage-ment business

•Renew energy-conserving equipment

Promote measures to prevent global warming

•Promoting measures to prevent global warming in line with the Voluntary Action Program of the Japan Iron and Steel Federation (JISF)

(Compared to FY1990, we plan to achieve a 10% decrease in energy consumption for the period from FY2008 to FY2012)

Continuously strive to reduce environmental risks

•Comply with new laws and regulations

•Promote voluntary environmental conservation activities

Promote byproduct recycling

•Continue development of recycling technology for dust and sludge and implementation of actual equipment

Improve waste control

•Introduce an electronic manifest system to the entire group

•Develop a group-wide waste material collection system

Promote energy-saving activities in production divisions

•Tsurumi Works: reduction of 5% compared to FY1997

•Tsu Works: increase of 4% compared to FY1997

•Shimizu Works: reduction of 20% compared to FY1997

*An increase compared to FY1997 is anticipated for Tsu Works due to an increased usage of high current welding machinery.

Promote reduction of construction site waste

•Recycling rate of 80% or more

Promote measures to prevent global warming

•Target a 10% reduction in electric power consumption in basic units within FY2010 compared to the level of FY1990 (scope: new shipbuilding shipyards)

•Target a 1% reduction in energy consumption in basic units compared to the previous year (scope: group-wide level)

Reduce waste emissions

•Target a waste recycling rate of 85% or more at the stage of production in FY2010 (scope: group-wide level)

Take measures to regulate VOC emissions

•Aim to meet an emission standard level of less than 700 ppmC (scope: coating facilities with an air-exhaust capacity of 100,000 m3/hour or more)

Monitor the chemical substances restricted under PRTR

•Monitor emissions into the air as well as transfer to other places restricted chemical substances, particularly Xylene, Ethylbenzene, and Toluene (scope: 5 shipyards)

Promote energy-saving activities in the condominium development business

•Acquire Housing Performance Evaluation Reports

Anti-degradation of structural frames measure grade: Grade 3 Energy efficiency grade: Grade 3

Formaldehyde emission control grade: Grade 3

•Promote the use of energy-conserving materials and facilities

Promote measures to prevent global warming in the facility management business

•Renew energy-conserving equipment

•Approx. 12% reduction in energy consumption, and approx. 20% reduction in unit energy consumption compared to FY1990

•Commenced Kurashiki CDQ operation in March 2009

•Built new high-efficiency oxygen facility (Kurashiki)

•Upgraded blast furnace stoves to energy-efficient types (Fukuyama and Kurashiki)

•Built new wastewater treatment facilities (in order to comply with stricter restrictions on nitrogen in Chiba region)

•Continued voluntary control measures for VOC reduction

•Commenced operation of dust recycling facilities (Fukuyama)

•Introduced an electronic manifest system to over 90%

•Tsurumi Works: reduction of 5% compared to FY1997

•Tsu Works: increase of 9% compared to FY1997

•Shimizu Works: reduction of 23% compared to FY1997

•Total CO2 emission of 3 works: 16,344 t-CO2

•Recycling rate of 86.2%

•Achieved a 22% reduction compared to the level of FY1990

•Achieved a total of 7.6% reduction in 5 shipyards compared to the previous year

•Achieved a 7.6% reduction in CO2 emission at the

group-wide level with the emission amount of 67,084 t-CO2 •Achieved a group-wide waste recycling rate of 84.7%, a

slight decline from the previous year

•Achieved a level of less than 700 ppmC of the emission standard at both the Ariake and Tsu Shipyards

•The amounts of emission and transfer regarding 3 major chemical substances under control were almost the same as the previous year

•Acquired for all condominiums

•Adopted latent-heat-recovery water heaters and double-glazed windows

BR53-58 ER3-10

ER19-20 BR60 ER21 ER39-40 ER17-18 ER21

BR59 ER23-24

BR59 ER24 BR59 ER25 BR59 ER26 ER26 ER26

ER27

Kawasaki Microelectronics

With the closure of the Utsunomiya Works, review our activity themes and implement the following

•Target a 100% recycling rate for the wastewater treatment-origin dehydrated sludge

•Aim to reduce consumption of PRTR substances

In addition, further improve the chemical substance control system for LSI products under EU-REACH

Continue environmental protection activities at the head office building under the following themes

•Take preventive measures for global warming in building operations

•Conserve paper resources

•Reduce waste (construction byproducts) With the closure of the Utsunomiya Works, wastewater

and sludge discharges have ceased, as has the usage of PRTR substances.

ER27

Reduce waste emissions in the facility management business

•Improve the recycling rate of targeted commercial and business waste THINK: Recycling rate of 56.5%

Orto Yokohama: Recycling rate of 50%

Reduce waste emissions in the facility management business

•Improve the recycling rate of targeted commercial and business waste THINK: Recycling rate of 81.6%

Orto Yokohama: Recycling rate of 49%

•THINK: Renewed substations, etc.

•THINK: Recycling rate of 77.7%, a 16.9% increase from the level of FY2008

•Orto Yokohama: Recycling rate of 48.2%, a 0.3% increase from the level of FY2008

* In the column “Refer to Pages,” the number preceded by BR represents the corresponding page number in the “JFE Group Business Report 2010” and the ER number in the “JFE Group Environmental Sustainability Report 2010” respectively. The “JFE Group Environmental Sustainability Report 2010” can be downloaded from our website.

Priority Environmental Targets and Results

Reducing Environmental Loads in Business Activities

(10)

JFE Steel Corporation has endeavored to reduce environmental loads through R&D on energy saving and environmental protection technologies and aggressive investment in facilities. As a result, our steel production processes now boast the world’s

highest energy efficiency and recycling rates. Far from becoming complacent with its achievements, JFE Steel still continues to conduct R&D and introduce equipment to further reduce environ-mental loads in each steel production process.

JFE Steel helps to reduce society’s waste by taking in approxi-mately 50,000 tons of waste plastic containers and packaging —an amount greater than that sent for disposal.

Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities

65

%

Energy recycling in works

99.8

% Byproduct recycling rate

93.2

% Water recycling Materials for steel production

• Iron ore 33 million tons • Coal 21 million tons • Lime 5 million tons

Byproducts 14.2 million tons

• Slag • Dust • Sludge

Recovered energy recycling

• Byproduct gas • Waste heat recovery steam • Power (BF Top pressure

Recovery Turbine: TRT)

Purchased energy

• Electricity + Oil type 101 PJ

Industrial water

230 million tons

Recycled materials

• Steel scrap (BOF) • Waste plastic (BF) • Toner (sintering)

Recycled materials

• Waste plastics • Waste PET bottles • Electric appliances • Food waste • Dust/ Sludge, etc

Input

Recycling Process at the JFE Group

Steel Production Process at JFE Steel

Energy conservation technology

Counter-measures facility

Steel production process

Raw material yard

Coke oven

Coke oven gas BF gas BOF gas

Sintering plant Blast furnace Reheat furnace

Power generating plant Oxygen plant Hot rolling, cold rolling Continuous annealing, coating Shipment BOF, EF, CC

Environmental conservation technology Generated substance Environ-mental impact Counter-measures facility Recycled water Energy supply (35%) • Power • Fuel gas • Steam Chemical

substances

• Release 483 tons • Transfer 1,431 tons

CO2 Approx. 52 million tons

Flue-gas

• SOx 3.5 million m3 • NOx 11.1 million m3 • Dust

Wastewater, evaporation loss (6.8%)

Landfill disposal (0.2%)

Marine & land civil engineering materials (72.4%)

• Material for cement • Roadbed material • Port & harbor

construction material • Fertilizer

Iron and steel products 25.8 million tons

(crude steel base)

Other products • Chemicals • Oxygen • Nitrogen • Hydrogen • Argon Byproducts

• NF® Board

• PET material

Output

Energy recycling in works (65%)

Byproducts recycling (27.4%)

Water recycling (93.4%)

Coke dry quenching (CDQ), coal moisture control (CMC), combustion control

Yard water spraying, belt conveyor dust collection, laser dust monitoring

Coke oven gas desulfurization, waste ammonia liquor COD treatment, chemical by-product recovery Flue gas desulfurization & denitrification

Gas recovery, dust collection, dust treatment, slag recycling

Gas recovery, dust collection, dust treatment, slag recycling

Low-NOx burner, use of cleaner fuel

Waste acid & waste alkali treatment, waste oil recycling, coagulating sedimentation Wastewater treatment Conversion to low-emission vehicles

Dust Flue gas, dust,

wastewater (ammonia liquor)

Flue gas, dust, wastewater

Flue gas, slag, dust, wastewater

Flue gas, slag, dust, wastewater

Flue gas, dust Rolling wastewater, pickling wastewater

Coating wastewater Exhaust gas

Dust Dust, NOx, SOx,

COD

Dust, NOx, SOx Dust, SS Dust, SS NOx SS, waste oil, waste

acid, iron salt

Metallic ion, etc. NOx, SPM (suspended particulate matter) Gas turbine combined cycle power plant,

power plant fuel preheating device, high-efficiency air separation equipment

Sintering cooler waste heat recovery, line burner

Waste plastics feeding, pulverized coal injection, top pressure recovery turbine, hot stove waste heat recovery

Gas recovery, gas-sensible heat recovery Regenerative burner, direct charging, low-temperature extraction Waste heat boilerrotary regenerative heat exchanger Shortening of transportation distance, improvement of load efficiency, modal shift, application of IT

Local community/Other industries/Society

(11)

‘90 13.7

‘85 12.3

‘80 15.3

‘73 34.6

0 20

10 40

30 (million Nm3)

‘95 13.0

‘05 12.6

‘00 13.8

‘07 12.7

‘08 11.9

‘73 ‘90

6.0

‘85 5.8

‘80 7.1 36.8

0 20

10 40

30 (million Nm3)

‘95 5.4

‘00 5.9

‘05 3.6

‘07 3.7

‘08 3.7

94.1

93.4 93.3

‘07 ‘08

0 200

100 400

300 (million t)

93.6 93.7

93.2

93.4 Industrial water circulation rate

94

93

92

91

90

(%)

‘90 ‘07 ‘08

0 2.0

1.0 4.0

3.0 (t/day)

‘09

3.5

‘09 ‘09

Volume of industrial water received

‘00 210

‘95 214

‘90

220 243

‘05

231 238

‘00 3.5

‘95

3.2 3.2

‘05

3.3 3.2

3.7

230

3.0

‘09

11.1

(FY) (FY)

(FY) (FY)

Exhaust gas treatment equipment for sintering machine: an example of the activated coke method at the West Japan Works (Fukuyama)

Dust prevention fence at East Japan Works (Chiba)

Wastewater treatment equipment: Example of denitrification equipment for wastewater at the East Japan Works (Chiba)

Remote surveillance of environmental data: an example from East Japan Works (Keihin)

Automatic wastewater analyzer: an example from East Japan Works (Chiba)

Exhaust gas sampling JFE Steel has been earnestly promoting

circulation/recycling of industrial water consumed in the steel production process, with its industrial water circulation rate* maintained at as high a level as about 93%. For release into public waters, wastewater is given appropriate purification treatment so that its pollution loads can be reduced. *Industrial water circulation rate

Industrial water circulation rate = (Total consumption – Received industrial water) / Total consumption

To prevent environmental abnormalities, JFE Steel constantly monitors the load on air and on water quality through a combination of methods like periodic batch analyses, continuous analy-ses by an automatic analyzer, and ITV-based remote monitoring.

Reducing Sulfur Oxide (SOx) and

Nitrogen Oxide (NOx) Emissions

In an effort to control emissions of SOx and NOx, JFE Steel is actively pursuing the installation and usage of desulfurization equipment and denitrifi-cation equipment for major emissions sources.

Reducing Dust

Since dust is generated from various sources in the steel production process, JFE Steel has been promoting appropriate reduction mea-sures by identifying individual sources and designing specific measures for each source. NOx Emissions

Received Industrial Water and Circulation Rate COD (Chemical Oxygen Demand)

SOx Emissions

Air Quality Preservation

Water Quality Preservation

Environmental Surveillance

Reducing Environmental Loads in Business

Activities at JFE Steel

(12)

1 16 25 26 30 40 43 63 68 69 85 100 132 144 145 177 178 179 198 200 207 224 227 230 231 232 253 283 299 304 309 310 311 345 346 0 0.1 0 0 0 26 1.6 166 0.03 0 0 0 47 12 26 0.3 0 4.8 0 22 0 3.9 62 0 0 0.01 0 0 25 0 0 0 0.07 0.0001 0.001 392 5.4 0.05 0.4 0 0 0 0.06 0 0.6 0.1 0 0.05 0 0 0 0 0.3 0.0002 0 0 0.04 0 0 0.01 0 2.2 0 21 0 31 9.2 0 15 0 5.6 91 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5.2 11 0 4.9 5.6 8.5 489 1.4 2.2 0.3 0 0 0 0 1.8 0 0 0 0 0 1.6 52 8.3 46 0 15 0 2.2 3.3 0 672 0 101 1,431

Zinc compounds (water-soluble) 2-aminoethanol

Antimony and its compounds Asbestos

Bisphenol A type epoxy resin (liquid) Ethylbenzene

Ethylene glycol Xylene

Chromium and chromium (III) compounds Chromium (VI) compounds

HCFC-22

Cobalt and its compounds HCFC-141b

HCFC-225 Dichloromethane Styrene

Selenium and its compounds Dioxins

Hexamethylenetetramine Tetrachloroethylene Copper salts (water-soluble) 1,3,5-Trimethylbenzene Toluene

Lead and its compounds Nickel

Nickel compounds Hydrazine

Hydrogen fluoride and its water-soluble salts Benzene

Boron and its compounds Poly (oxyethylene) nonylphenyl ether Formaldehyde

Manganese and its compounds Mercaptoacetic acid

Molybdenum and its compounds

Substance

Total

Release

Total release 483 Total transfer 1,431

Air Public waters Soil on-site Landfill on-site Sewerage Off-site Transfer No. Landfill disposal ‘04 ‘03 ‘90 ‘95 11.0 99.3 9.5 99.3 96.5

‘05 ‘06 ‘07 ‘08 0 20 10 40 50 30 (10,000 t)

7.9 6.0 6.0 5.0 5.1

100 99 98 97 96 95 (%)

48.0 99.6 99.6 99.799.6

Recycling rate

Release into air and public waters

‘04

‘02 ‘03 ‘05 ‘06 ‘07 ‘08

0 1,000 3,000 2,000 (t) ‘09 843 633 1,415 1,053

7631,098 720 698 621

1,327 2,003 2,572 2,883 Landfill disposal 574

1,431

483

‘09

3.2

99.8

(Unit: tons/yr; dioxins: g-TEQ/yr)

99.5

(FY)

(FY)

Example of a sample collection kit High resolution GCMS for measuring PCB

PCB extraction and isolation work

of PCB, which is based on a manual specified by the Ministry of the Environment. JFE Techno-Research offers JFE Group companies and outside entities services for accurately, economi-cally, and rapidly testing for the presence of PCB in insulating oil used in electrical devices.

JFE Steel has been promoting voluntarily release reduction program, which gives the first priority to chemical substances having higher toxicity

and larger release amounts. Since FY2001, total release into air and public waters has been reduced continuously.

JFE Steel has been recycling byproducts (i.e., iron and steel slag*1, dust, and sludge*2) in the steel production process in the works as raw materials for steel manufacturing and has been promoting effective utilization of byproducts as resources. In FY2009, JFE Steel started up a dust recycling facility in the Fukuyama area as a further step to recycle site dust.

We practice appropriate storage of PCB waste in accordance with the law as well as disposal of such waste based on the schedule directed by the Japan Environmental Safety Corporation (JESCO).

In addition, the group company, JFE Techno-Research, finished putting together a PCB analy-sis system in April 2010. This system employs a simplified method for measuring minute amounts *1 Iron and steel slag:

Material consisting of non-iron rock components in iron ore and lime, etc. It separates from the molten metal. Slag is mainly used as material for cement.

*2 Sludge:

Mud-like substance remaining after wastewater treatment.

Substances Reported under PRTR (FY2009)

Landfill Disposal and Recycling Rate of Byproducts

Release and Landfill Disposal of Chemical Substances

JFE Techno-Research’s simplified approach for measuring minute amounts of PCB

www.jfe-tec.co.jp/envi-ene

Effective Utilization of Byproducts

Control/Release Reduction of Chemical Substances

Appropriate Processing of PCB Waste

Reducing Environmental Loads in Business Activities at JFE Steel

(13)

(kg)

(FY)

Recycling patrols under way at the Tsurumi Works

Solar-tracking power system installed at JFE Engineering's Tsurumi Works

JFE Engineering has established environmental management systems in line with the function and activities of each production center and is promoting activities to reduce environmental loads.

In 1997, the Japan Society of Industrial Machin-ery Manufacturers, of which JFE Engineering is a member, embarked on its voluntary action plan to cut CO2 emissions by 12.2% relative to

FY1997 level by the end of FY2010.

To help achieve that goal, JFE Engineering has begun using Clathrate Hydrate Slurry (CHS) Heat Storage Air Conditioning Systems, turning off lights during break times, and actively taking other steps to reduce its energy usage in its office divisions. In the spring of 2010, it installed a large 50kW solar power system and a 6kW solar-tracking power system at its Tsurumi Works. It is also working to reduce electric power consumption and use of cutting and welding gas, and to increase the efficiency of compressed air usage, in its production

depart-ment. In FY2009, total office and plant CO2

emissions of JFE Engineering were16,300 tons, a figure 3% below that for the prior fiscal year and 13.3% below the level for FY1997 though it merged four of its group companies.

JFE Engineering is actively working to recycle waste generated in its business activities.

To promote recycling in its offices, it is clarifying waste separation rules and implement-ing recyclimplement-ing patrols.

And at its construction and manufactur-ing sites, it is continuously promotmanufactur-ing reduc-tion and recycling of industrial waste by means of thorough separation and revising recycling approaches.

Meanwhile, JFE Engineering’s planning and design divisions are incorporating recycled materials, using energy-efficient equipment, and

taking other such steps that are friendly to the environment.

In compliance with the Pollutant Release and Transfer Register (PRTR) Law, JFE Engineering controls release and transfer volumes of the designated chemical substances and reports those figures to the national government through local governing bodies. The company has been promoting activities to reduce controlled substances, including paints, solvents, and gasoline.

Material Balance for FY2009

Reduction of Waste (FY2009)

CO2 Emissions

Substances Reported under PRTR (FY2009)

INPUT

OUTPUT

Raw materials 63,464 t Energy

Electricity consumption 33,781,097 kWh A-heavy oil 197.2 kℓ

Kerosene 71.1 kℓ Light oil 197.6 kℓ

Gasoline 25.2 kℓ Urban gas 792,254.0 Nm3

LPG 205.2 t LNG 0.0 t Water 152,701 t

Products 60,126 t Air pollutants

CO2 16,344 t

NOx max 85 ppm SOx max – ppm Dust max 0.019 g/Nm3

Waste generated 1,643.3 t

Wastewater 223,430.1 t Other (PRTR) 172,500 kg

JFE Engineering

• Tsurumi Works

• Shimizu Works

• Tsu Works

Waste recycling in offices

Recycling rate in offices

Tsurumi Works (%) Tsu Works (%) Shimizu Works (%)

Target 97 82 97.6 Actual 98.7 85.8 98.8

Waste recycling in the manufacturing sites

Recycling rate in the manufacturing sites

Tsurumi Works (%) Tsu Works (%) Shimizu Works (%)

Target 52 29 16 Actual 47.7 22.2 16.7

Waste recycling at construction sites

Recycling rate at construction sites

Construction sites (%)

Target

74

Actual

86.2

(1,000 t-CO2)

5 0 10 20 15 ‘90 16.8 ‘05 ‘06 16.4 ‘08 ‘07 16.8 15.3

16.3

‘09 ‘04 14.0 ‘97 18.8 14.5 No. Public waters Landfill on-site Offsite Air Soil onsite Sewer-age Substance Total Release 116,635.3 55,909.6 172,544.9 Transfer 30 40 63 177 227 230 311

Bisphenol A type epoxy resin Ethylbenzene

Xylene Styrene Toluene Lead and its compounds Manganese and its compounds 0.0 22,436.8 55,904.0 1,807.6 36,486.9 0.0 0.0 116,635.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12,787.0 1,680.4 4,800.9 475.7 7,386.4 3,680.0 25,099.2 55,909.6

Global Warming Prevention

Recycling

Control and Reduction of Chemical Substances

Reducing Environmental Loads in Business

Activities at JFE Engineering

(14)

(t/yr.)

138

8

4

0 16

12

‘05

‘04 ‘06 ‘07

156

‘08 50

100 150 200

0

148

148 149

‘09

138

(%)

60

40

20

0 100

80

‘05

‘04 ‘06 ‘07

51

‘08

82.6

81.5 84.2 83.7

30

15 45 60 75

0 (1,000 t)

85.7

54 54

‘09

84.7

53

54 56

(MWh/kh)

(GWh)

(FY)

Electricity consumed per work hour Electricity consumption

Recycling rate

(FY)

Waste emissions

Training to respond to fuel leaks

Universal Shipbuilding has built environmental management systems tailored to the functions and operations of individual shipyards in an effort to lower its environmental burden.

A breakdown of Universal Shipbuilding’s

energy-origin CO2 emissions shows that 86% are

associ-ated with electricity usage, 10% with petroleum usage, and 4% with gas usage. These figures remained unchanged over the past several years. The company’s most pressing concern is to lower its electricity consumption, the greatest

source of its energy-origin CO2 emissions. Toward

that end, the production divisions are taking steps like turning off lights during lunch hours, reducing electricity consumed by welding equipment standing by for use, and replacing electrical equip-ment with energyconserving options. The office divisions are promoting such activities as turning off lights during lunch hours, turning off computers when not in use, and adjusting thermostats to use air conditioners and heaters less.

Total electricity consumption of production and office divisions for FY2009 came to 138,030 MWh, 11,207 MWh less than in the previous year. Electricity consumption per work hour (MWh/1,000 hours) also declined on a year-to-year basis. Simultaneously with efforts to reduce electricity consumption, the company is also proactively engaged in activities such as turning off the engines of shipyard vehicles and trucks when idling, shutting off gas mains at the comple-tion of work, etc. in order to reduce wastage of petroleum and gas.

Universal Shipbuilding is working to reduce the generation and discharge of waste.

For this purpose, the production divisions are putting out more garbage receptacles for separated waste, conducting patrols, and taking other steps to help ensure that garbage is prop-erly separated, reused, and recycled. The office divisions are reusing wastepaper and thoroughly separating garbage in a bid to dispose of less and recycle more.

As a result of such activities, production and office divisions cut their combined discharge of waste for FY2009 to 52,880 tons, a decrease of 1,141 tons compared to the prior fiscal year.

As for recycling, results were slightly disap-pointing as the recycling rate declined to 84.7%, from 85.7% in the previous fiscal year.

In compliance with the Pollutant Release and Trans-fer Register (PRTR) Law, Universal Shipbuilding controls release and transfer volumes of the desig-nated chemical substances and reports those figures to the national government through local governing bodies. The company has been promot-ing activities to reduce controlled substances, including paints, solvents, and gasoline. As a shipbuilder, Universal Shipbuilding pays particular attention to monitoring releases and transfers of three key substances, namely ethylbenzene, xylene, and toluene that are important for painting work.

Universal Shipbuilding considers fuel leaks to be a significant source of marine environmental pollution and conducts regular training to prevent accidents and minimize damage.

Material Balance for FY2009

Conditions of Three Key Substances

Power Consumption

Waste Disposal Volume

INPUT

OUTPUT

Raw materials 525,300 t Energy

Electricity consumption 138,030 MWh A-heavy oil 460 kℓ

Kerosene 443 kℓ Light oil 1,623 kℓ

Gasoline 112 kℓ Urban gas 91 km3

LPG / LNG 857 t

Water 1,410,000 t

Products 486,400 t Air pollutants

CO2 67,084 t

NOx 75 t SOx –

Waste generated 52,880 t Recycling rate 84.7 %

Universal Shipbuilding

• Ariake Shipyard

• Tsu Shipyard

• Maizuru Shipyard

• Keihin Shipyard

• Innoshima Shipyard

Ethylbenzene Xylene Toluene

Total

298 968 404

1,670

254 723 577

1,554

20 70 29

119

19 54 35

108 Atmospheric

releases

FY2008 Three key

substances FY2009 FY2008 FY2009

Transfers to off-site locations

Global Warming Prevention

Reducing Generation/Discharge

of Waste

Control and Reduction of

Chemical Substances

Zero Fuel Leak Campaign

Reducing Environmental Loads in Business

Activities at Universal Shipbuilding

(15)

Reference value (100%)

The Place Hachioji (76%)

35% 22% 43%

12% 25% 39%

Con-struction

Operation

Reduction

Repairs, remodeling,

–24% 3 6 9

5.9 5.8 5.6

(1,000 t-CO2)

6.3

5.7

0 The Real Estate Companies Association of Japan adopted its voluntary action plan for reducing CO2

emissions related to new condominiums in February 2009. The aim of this plan is to reduce condominium life cycle CO2 emissions—emissions related to

everything from construction through demolition—to a level below that for general construction.

Condominiums sold by JFE Urban Development already boast environmental performance above During FY2009, production operations at the Utsunomiya Works were gradually shut down, lower-ing discharges of greenhouse gases and other environmentally-harmful substances at Kawasaki Microelectronics. That testing procedures, which consume large amounts of electricity, remained in operation until the beginning of calendar year 2010,

meant that CO2 emissions related to energy

consumption declined only slightly. Kawasaki Micro-electronics ceased usage of three Freon-substitute PFC gases that have extremely potent greenhouse effects in October 2009, lowering emissions for FY2009 to a level 30% below that for FY1995. In the area of chemical substance management, Kawasaki Microelectronics, after discontinuation of the use of toluene, was using five PRTR substances. Usage of all five of these substances was halted in October 2009.

Stopping Global Warming and Reducing

Chemical Substance Emissions

Reducing CO

2

Emissions

Related to Condominiums

The waste generated by the THiNK (Techno Hub innovation Kawasaki) science park, the Globo shopping center, and other facilities managed by JFE Urban Development Group is all separated and measured. Steps are taken to reduce and recycle waste, as well as cut energy consumption.

Cutting Waste Generation and

Energy Consumption at Facilities

under Management

what is necessary to achieve the association’s goal.

CO2 Emissions at THINK Calculation example: Life Cycle CO2 Comparison

for The Place Hachioji Material Balance for FY2009

INPUT

OUTPUT

Total energy 0.347 PJ Electricity 33.7x106 kWH

Gas 4 t

Coal and oil 550 kℓ PFC purchase

(CO2 equivalent) 44x10 3 t-CO2

Chemical purchase 5,400 t Water usage 178x103 m3

Resource input (raw material) 1.23 t

CO2 16x103 t-CO2

PFC emissions

(CO2 equivalent) 23x10 3 t-CO2

SOx 263.8 m3

NOx 1,351 m3

Wastewater 181x103 m3

Waste generated 1,309 t Chemical emissions/transfer 2.2 t

Products 1.22 t

Kawasaki Microelectronics

• Utsunomiya Works

Reducing Environmental Loads in Business

Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities

Reducing Environmental Loads in Business

Activities at JFE Urban Development

F l e x i b i l i t y C h a l l e n g i n g S p i r i t

S i n c e r i t y

R&D of Environmental Conservation Technology 29

JFE’s Technologies Contribute to Global Environmental Protection 31

Recycling Technology Supporting a Sustainable Society 37

Reducing

Environmental

Loads through

Products and

Technologies

参照

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