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Message from Senior Management

Coordinating Corporate Growth,

Environmental Conservation

responses to the various risks brought about by changes in climate. We are also contributing to reduction of greenhouse gas emissions worldwide by supplying the JFE Group's cutting-edge technology.

In addition to greenhouse gases, our business activities generate environmental loads such as wastewater, exhaust gases, and chemical substances. The JFE Group strives to thoroughly reduce these loads and protect the global environment.

The JFE Group has developed and provided a large quantity of environment-conscious products and technology, and we shall continue to promote these activities even more intensely while playing our part in the protection of the global environment.

JFE Holdings, Inc. Member of the Board Senior Vice President

Eiji Hayashida

Environmental Philosophy

The JFE Group considers the improvement of the global environment to be of utmost importance for management, and promotes business operations in harmony with the environment to create a prosperous society.

Environmental Policy

1. To reduce environmental influence in 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

Message from Senior Management

Priority Environmental Targets and Results

Special Feature: JFE Steel's Activities to Prevent Global Warming

International Contribution by Providing Environment/Energy Technologies

Environmental Management System

Communication with Society Related to the Environment

Environmental Accounting

CHAPTERⅠReducing Environmental Loads in Business Activities Energy/Material Flow in the Steelmaking Process

Reducing Environmental Loads in Business Activities at JFE Steel

Efforts to Restore Marine Environments using Steel Byproducts

Reducing Environmental Loads in Business Activities at JFE Engineering

Reducing Environmental Loads in Business Activities at Kawasaki Microelectronics

Reducing Environmental Loads in Business Activities at JFE Urban Development

1

2

3

11

13

15

17

19 21 25 27 29 30

CHAPTERⅡReducing Environmental Loads through Products and Technologies Research & Development of Environmental Conservation Technology

JFE's Technologies Which Contribute to Global Environmental Protection

Contributing to Global Environmental Protection through Steel Technologies/Products

JFE Engineering's Activities to Prevent Global Warming

Recycling Technology Supporting a Sustainable Society

History of Environmental Measures in JFE Group

Environmental Businesses Network of JFE Group Companies

Awards Received for Excellence of Environmental Technologies

Third-party Comments

Editorial Policy

"JFE Group Environmental Sustainability Report 2008" states environmental protection activities in the year ended March 2008, as well as results of those activities in the business operations of JFE Holdings, Inc., which is the holding company of the JFE Group, and its operating companies. This Report was edited/prepared in accordance with "Guidelines for Environmental Reports (FY 2007 ed.)" issued by Japan's Ministry of the

Environment (MOE) and "Sustainability Reporting Guidelines 2006". Please note that this Report is disclosed solely on the website. If you need (a) brochure(s), please print out this document.

*For further company information, business descriptions, product information, and operation facilities, etc., please refer to JFE GROUP BUSINESS REPORT 2008 or our website at

http://www.jfe-holdings.co.jp/en/index.html

CONTENTS

32

33

39

41

43

45

47

49

50 The JFE group is dedicated to actualizing through

corporate actions our corporate standards of business conduct as well as environmental philosophy and policy that emphasize coexistence with and enhancement of the global environment.

(3)

Priority Environmental Targets and Results

2008 Results 2009 Priority Environmental Targets 2008 Priority Environmental Targets

• Promote measures to prevent global warming based on Japan Iron and Steel Federation’s Voluntary Action Program (Achieve a 10% reduction in energy consumption amount during the period from the year ending March 2009 to the year ending March 2013, compared to the year ended March 1991 level, and another 1.5% reduction (additional target) through effective usage of waste plastics, etc.) Promote measures to prevent global warming

Promote byproduct recycling

• Continuously look at developing and applying technologies for recycling dust and slag

• Reduce landfill of slag by 20%

Continuously strive to reduce environmental risks

• Comply with new regulations

• Promote voluntary environmental conservation activities

Reduce consumption of chemical substances

• Reduce consumption of the notification substance

Reduce consumption of chemical substances

• Reduce usage amount of notification substances

• Reduce the amount of types of substances used

Reduce industrial waste

• Reduce wastewater treatment-origin dehydrated sludge by 10%

Reduce industrial waste

• Achieve recycling rate of over 50% for the dehydrated sludge from wastewater treatment

Promote energy-saving activities in production divisions

Tsurumi Engineering & Manufacturing Center:

11% reduction compared to the year ended March 1998 level Shimizu Works:

17% reduction compared to the year ended March 1998 level Tsu Works:

11% reduction compared to the year ended March 1998 level

At Tsurumi, the target is calculated based on electricity usage per hour of operation

At Shimizu and Tsu, the target is calculated based on electricity usage per unit volume of production

• Tsurumi and Shimizu met targets, Tsu did not Tsurumi Engineering and Manufacturing Center : achieved a reduction of 11% compared to the year ended March 1998 Shimizu Works :

achieved a reduction of 37% compared to the year ended March 1998 Tsu Works :

generated an increase of 17% compared to the year ended March 1998

• Approximate 19% reduction of energy consumption in basic unit compared to year ended March 1991

• CDM implementation (The Philippines: approved by the UN in May 2007)

• Commenced shaft furnace construction

• Approved CDQ addition plan

• Regenerative burner addition

• Oxygen plant efficiency upgrade

• Introduced and currently constructing dezincing and recycling equipment for dust containing zinc to the Fukuyama region

• Implementing modifications and equipment upgrades to Kurashiki region combustion incinerators and roasting furnaces for recycling oil sludge

• Oil sludge recycled: 5,000 tons (20% decrease in sludge landfill)

• Complied with new laws and regulations Reinforcement and new installation of wastewater treatment equipment

• Promoted voluntary environmental conservation activities Reinforcement of surveillance sensors

Continued independent control for VOC reduction

Promote reduction of construction site waste

• Reduce final disposal rate to 35% or less in three years ended March 2008

Note : Final disposal rate = {total waste volume - (volume recycled + volume reduced)} / total waste volume

• Achieved target with a final disposal rate of 19.0% for the year ended March 2008

(Generated 2,020 tons)

Promote resource-saving and

• 6% increase in green procurement rate of office supplies compared to the year ended March 2005 level environmentally friendly office activities

Promote energy-saving activities in production divisions

Tsurumi Engineering and Manufacturing Center:achieves a reduction of 12% compared to the year ended March 1998 Shimizu Works : achieves a reduction of 40% compared to the year ended March 1998

Tsu Works : limit the increase to a maximam of 15% compared to the year ended March 1998

*An increase compared to year ended March 1998 is anticipated for Tsu Works due to an increased usage of high current welding machinery

Promote byproduct recycling

• Continue development of recycling technology for dust and sludge and implementation of actual equipment Improve waste material management

• Enact a group-wide waste material collection system

• Introduce electronic manifest group-wide Over 80% computerization

Continuously strive to reduce environmental risk

• Comply with new regulations

• Promote voluntary environmental conservation activities 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 1990, we plan to achieve a 10% decrease in energy consumption for the period from the year ending in March 2009 to 2013)

Promote reduction of construction site waste

• A recycle rate of over 73%

Promote resource-saving and environmentally friendly office activities

• Percentage of money used for green purchasing of office supplies

Tsurumi Engineering and manufacturing Center : over 75%

Shimizu Works : over 90% Tsu Works : over 93%

• Tsurumi, Shimizu, and Tsu did not meet targets The following results were caused by an inability to purchase copy paper under green purchasing standards due to the incident concerning false labeling of recycled paper Tsurumi Engineering and Manufacturing Center : 4.0% increase

Shimizu Works: 13.1% decrease Tsu Works: 4.1% decrease

Promote measures to prevent global warming

• Energy saving rate: 1% or higher

• Complete alternatives for C2F6 and commence specific reduction measures aiming at 10% reduction of PFC*1 emissions compared to the year ended March 1996 level

Promote measures to prevent global warming

• Achieve more than 1% energy saving rate

• Complete new C2F6 gas substitute experiments and will begin reductions in early 2009

• Achieved a 2.3% energy conservation rate

• Plans to completely substitute alternatives for C2F6 (PFC gas) and begin reduction of emissions were put on hold due to a suspension of the supply of alternative gases

• Accomplished an additional decrease in the usage amount of our sole substance targeted for notification (hydrogen fluoride and its water-soluble salts)

• Achieved a reduction of over 10% for dehydrated sludge

*1 PFC: Perfluorocarbon

JFE Steel JFE Engineering Ka w a saki Micr o electr onics

(Year ended / ending March 31)

(4)

Special Feature

Efforts of Iron Industry

(The JISF's Voluntary Action Program)

Energy consumption for the year ended March 2007 was down 5.2% from the year ended March 1991. As a supplementary measure, a contract has been made under the Kyoto Mechanisms for the purchase of 44 million tons by the total of the Japan Iron and Steel Federation (JISF).

We plan a 10% reduction in average energy consumption (predicated on the production of 100 million tons of crude steel) over the year ending March 2009 to the year ending March 2013 compared to the year ended March 1991. And, as an additional task, we plan to establish a collection system for waste plastic, consuming 1 million tons.

Message from Senior Management

JFE Steel Corporation Senior Vice President

Takashi Sekita

JFE Steel's Activities to

Prevent Global Warming

Stepping into the first fiscal year of the Kyoto Protocol

We have engaged in a variety of activities to date in order to adhere to the Voluntary Action Program of the Japan Iron and Steel Federation (JISF). Entering the first fiscal year of the first commitment period of the Kyoto Protocol, we will use technological development and facility investments to focus to the greatest degree possible on this arena, in line with our reduction of energy consumption (and CO2emissions). Also, we will

aim to fully accomplish the JISF Voluntary Action Program by using the Kyoto Mechanisms as a complementary measure.

Furthermore, we will do our part to assist in the reduction of CO2emissions through supplying high

performance steel products such as high tensile steel sheets, which contribute to improvements in fuel consumption for automobiles. And on the international stage, by converting our steel production process to employ energy saving technology that meets the highest global standards, we will contribute to the reduction of CO2on a global scale.

PJ

▼5.2%

▼10% 2,500

2,000

1,500 1991 2,527

1996 2,427

2001 2,328

2003 2,309

2002 2,255

2004 2,327

2005 2,357

2,274

2006 2,342

2007

2,394

Source: The Japan Iron and Steel Federation Transition in Energy Consumption

by the Iron and Steel Industry in Japan

(5)

Since the 1970s, we have worked towards CO2

reduction through technological development and the introduction of a variety of different kinds of equipment. For example, we use gases generated from various processes for fuel and electric power required in our steelworks and we also assiduously collect and efficiently use emission gasses and exhaust heat. Thanks to these efforts, we have achieved a 36% reduction in unit energy from 1973 to the present, achieving world-class efficiency in energy consumption.

Energy Saving Activities

We have been increasing production in response to stronger demand for highly functional steel products from customers mainly in the automobile, electric appliance, and shipbuilding industries. As a result, compared to the year ended March 1991 level, crude steel production had increased 30% by the year ended March 2008.

Achievements in Crude Steel Production

for the Year Ended March 2008

1991

23.55

2004

27.01

2005

27.65

2006

26.72 30%

2007

29.04

2008 30.52 30

28

26

24

22

20

0

Transition of Crude Steel Production at JFE Steel

( Years ended March 31)

(million t ) Crude steel production

in comparison to the year ended March 1991

30

%

increase 1974

100

1981

83

1986

77

1991

79

1996

88

2004

68

2005

67

2006

67

2007

65

100

90

80

70

60

2008

64

Unit Energy Consumption Index

36% cut

Transition of Unit Energy Consumption Index at JFE Steel

JFE Steel

Index (1974 = 100)

( Years ended March 31)

1 9 7 4 - 1 9 9 0

Introduction of energy saving equipment • Reduction of reheating 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.

1 9 9 1 - 2 0 0 7

2 0 0 8

-Further promotion of energy saving • Waste plastics feeding into BF

• Introduction of regenerative burner

• Endless rolling

• City gas blowing technology for BF

• High efficiency oxygen plant

Global warming prevention measures by energy saving • New construction of shaft furnace (operation start scheduled in August 2008)

• Augmentation of CDQ

(operation start scheduled in March 2009)

• Broader introduction of regenerative burner

• Augmentation of high effeciency oxygen plant

• BOF gas sensible heat recovery

History of Energy Saving Activities

(6)

Special Feature

Though crude steel production had increased 30% by the year ended March 2008 when compared to the year ended March 1991, we were able to keep the increase in CO2emissions to 5.0%. And, using the

most sophisticated equipment and technology in the world resulted in a 19% reduction in the amount of CO2

emissions involved in producing one ton of crude steel (unit CO2emissions).

The CO2emissions for each fiscal year presented here are different from the numerical values given in the business report for the previous fiscal year (year ended March 2008). The reasons for the change in values and the difference of this report from the CO2emission levels officially announced in the Law Concerning the Promotion of the Measures to Cope with Global Warming are presented on page10.

Though crude steel production increased 30% in the year ended March 2008 when compared to the year ended March 1991, we were able to keep the increase in energy consumption to 5.6%. Additional efforts to conserve energy through technological development and equipment investment resulted in dramatic streamlining, with an 18.7% reduction in the amount of energy consumption required to produce one ton of crude steel (unit energy).

Achievements in Energy Consumption

Amount and Unit Energy for the Year

Ended March 2008

Achievements in CO

2

Emissions and Unit

Emissions for the Year Ended March 2008

1991 2004 662 24.2 2005 641 2006 677 24.0

−10% +5.6%

18.7% cut 2007 666 23.3 2008 703 800 600 400 200 0 30 28 26 24 22 599 653 24.0 23.0 28.3

(Years ended/ending March 31) Total energy consumption (PJ) Unit energy consumption (GJ/t-s)

2009-2013 (target)

Transition of Total Energy Consumption and Unit Energy Consumption at JFE Steel

57.3 57.7 −9%

+5.0%

19% cut 58.661.0 2.00 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 2.47 58.1 2.12 2.09 2.07 2.02 52.9 55.3

Transition of Total Energy Origin CO2 Emissions and

Unit CO2 Emissions at JFE Steel (Estimation)

Total CO2 emissions (million t-CO2) Unit CO2 emissions (t-CO2/t-s)

1991 2004 2005 2006 20072008

(Years ended/ending March 31) 2009-2013 (target)

Unit CO2emissions

in comparison to the year ended March 1991

19.0

cut

Unit energy

consumption in comparison to the year ended March 1991

18.7

(7)

To date, we have consistently carried out improvements in the efficiency of operations and investment for energy conservation. In the current Medium-Term Business Plan (from the year ended March 2007 to the year ending March 2009) as well, we are promoting the investment of 100 billion yen for CO2

reduction and energy conservation. We expect to achieve a CO2reduction of 4.2 million tons per year

through this investment.

In addition to these improvements in operation and equipment efficiency, we are involved in other efforts to reduce CO2emissions in the future, such as the

implementation of projects to develop innovative steel production methods.

We are also using the Kyoto Mechanisms as a

Future Plans to Reduce CO

2

Emissions

supplementary measure for achieving the Voluntary Action Program of the Japan Iron and Steel Federation (the entire group of companies in the JISF generated a total purchase agreement value of 44 million tons for a five year period from 2008 to 2012). Also, JFE Steel is implementing CDM*1for PSC*2(registration with the United Nations was completed in May 2007), and is currently constructing waste heat recovery equipment for sintering machines.

*1CDM (Clean Development Mechanism)

This is a system introduced in the Kyoto Protocol wherein developed nations supply developing nations with technology and funds to reduce CO2emissions, and in return the supplying country can list the reductions in their own target achievement records.

*2PSC (Philippine Sinter Corporation)

A project involving factories that manufacture sintered ore as raw material for steel production

Improving efficiency of operation

•Installing a shaft furnace: restricts the amount of CO2emissions by liquefying 500 thousand tons of scrap per year (operation planned to start in August 2008) •Lowering the reducing agent rate for blast furnaces: infusions of city gas,

infusions of pulverized container and packaging plastic (capacity: 8,000 tons per year), etc.

Super streamlining equipment (energy conservation)

•CDQ: Power generation using sensible heat for coke ovens Kurashiki CDQ: operation planned to start in March 2009 Fukuyama CDQ: operation planned to start in May 2010 •Regenerative burners: Burners with better thermal efficiency

(16 additional burners)

•Oxygen plant upgrade: upgrading to state of the art, high efficiency plants Chiba No.14: Operation started September 2007

Kurashiki No.12: Operation planned to start September 2009

Research and Development for the Future

•Projects to develop innovative steel production techniques Technology to effectively utilize unused waste heat

Technology to control reactions in hydrogen reduction furnaces •Technology for capture and storage of CO2

CO2Reduction

through Technology

Reduction of

appox. 4.2 million tons per year

Kyoto Mechanisms Considerations

Implementing CDM (Clean Development Mechanism)

•PSC (Philippine Sinter Corp.) waste heat recovery from sintering Registration with the United Nations was completed in May 2007

CO2emissions

reduction through investment

4.2

million tons

We are currently con-structing a shaft furnace (height from ground= 50 meters)

State of the art regenera-tive burner

At PSC we are con-structing equipment for waste heat recovery from sintering

(8)

Special Feature

We actively promote the development of high performance steel that is lightweight, highly efficient, and long lived through superior technological prowess. For example, because automobiles and ships can be made stronger and lighter with high tensile steel sheets (HITEN), it becomes possible to increase safety and improve fuel efficiency. Also, using high performance electrical steel sheets enables a high level of efficiency in electrical machinery and transformers.

Thanks to this high performance steel, the calcu-lated level of CO2emission reduction for the year ended March 2007 was 7.86 million tons for the entire group of companies in the JISF.

Contributing to the Reduction of CO

2

through Our Products

CO2Emission Reduction Effect at the Stage of Using Steel Products (As of the year ended March 2007)

CO2 emission reduction

7.86

million tons

We produce high performance steel that is lightweight, highly efficient, and long lived.

Because high tensile steel sheets (HITEN) both strengthen and lighten automobiles, they are used in the manufacture of many different parts. The JISF's

reduction of

CO2emissions

7.86

million tons

8.0

6.0

4.0

2.0

0.0

20.0

15.0

10.0

5.0

0.0

Lightening rate (%)

Standard: 1997 zero

1) Source: The Institute of Energy Economics, Japan

2) Source: Estimate by JFE Steel based on data from the Institute of Energy Economics, Japan Large passenger automobile base for the year ending March 2009

Fuel expense improvement rate (%)

~ 2007 2011 2016 2020

19% 17%

13%

9%

(Years ended/ending March 31)

Automobile weight reduction and economical mileage with high tensile steel sheets (HITEN)

Reduction in CO2 emissions

– 4.95 million tons

Improvement of mileage

Improvement of mileage 3.3% 6.2% Reduction in CO2 emissions

– 7.53 million tons

1)

2)

Transformers

1.21

Trains

0.07

Automobiles

4.95

Ships

1.00

Boilers for power generation

0.63

(9)

A modal shift is also taking place in the transportation of steel products, with a switch to the use of the more environmentally friendly shipping and rail transport. JFE Steel has achieved a modal shift of 94%.

The amount of CO2emissions for deliveries in the

year ended March 2008 was approximately 450,000 tons. Corresponding with an increase in crude steel

Energy Saving Measures at the Transportation Division

production, the emissions amount increased approximately 5% compared to the previous fiscal year (ended in March 2008). However, we are continuing streamlined usage of operating cars and ships.

Note: CO2emissions amount for the delivery division in year ended March 2007 – 427 thousand tons

RORO vessel that enables efficient transportation of steel An all-weather berth that allows cargo loading even in bad conditions

On April 10, 2008, Minister of the Environment, Ichiro Kamoshita, visited the East Japan Works (Chiba). After viewing the Environmental Abnormality Prevention System at the Visitors' Center, he inspected the No.6 Blast Furnace and No.3 Hot Strip Mill.

After the tour was finished, Minister Kamoshita commented, "I experienced firsthand the wealth of technology that has been accumulated to support the industrial base of Japan. And I can see that efforts are being made with measures to counter global warming and a great deal of energy is being focused on CO2reduction measures. Please keep up the good work in the areas of innovation and technological advancement to prevent global warming."

Minister of the Environment, Ichiro Kamoshita – inspection of East Japan Works in Chiba

Modal shift rate for the entire industry total

Delivery distance of 500 km and over Truck

39

Ship+Rail

61

Overall

Delivery distance of 500 km

and over Truck

33

Truck

6

Ship + R ail

67

Ship + R ail

94

JFE Steel modal shift rate

Source : Ministry of Land, Infrastructure, Transport and Tourism

Modal shift rate

(10)

Special Feature

Limestone and dolomite used in BF, converters and the like produce non-energy origin CO2emissions. In the

process of manufacturing coke, N2O is emitted by fuel usage or from water treatment equipment and similar sources.

The total preliminary estimate of the CO2equivalent

of non-energy origin greenhouse gas emissions emitted by JFE Steel reached approximately 2.2 million tons in the year ended March 2008.

Non-energy Origin CO

2

Emissions

1991 1996 20012002 2003 2004 2005 2006 0.2

0.2 0.1 0.1 0.1

0.1 0.1 0.1

11.6 10.5 10.3 10.1 10.3 8.7 9.2 9.4

2007 96 2.0 4.1 2.4 8.3 2.1 9.7 6.6

0.1

9.8 12

10

8

6

4

2

0

Transition of Non-energy Origin GHG Emissions by the Iron and Steel Industry in Japan

Non-energy origin

(million t-CO ) Methane

(11)

The amount of CO2 emissions is calculated by multiplying the amount of energy used for each energy type (coal, electricity, byproduct gases, etc.) by its CO2

coefficient. Because the coefficient values were completely revised, our energy origin CO2emissions

values have also changed for this fiscal year.

As a result, the emissions figures for year ended March 2007 reported in the Environmental Report for the year ended March 2008 was 55.8 million tons and the figure reported in the Environmental Sustainability Report for this year is 58.6 million tons.

(Note 1) Reasons for the revision of energy conversion coefficients: revision of electric energy conversion coefficient and the standard thermal output amount in the Ministry of Economy, Trade and Industry's General Energy Statistics (conducted every five years)

(Note 2) Reasons for the revision of CO2emissions coefficients: in the National Greenhouse Gas Inventory Report of Japan (May 2007), which was compiled under the supervision of the Ministry of the Environment and reported to the UN, the CO2emissions coefficients for some fuels were revised and reviewed from the benchmark year. The electric power CO2 emissions coefficient was also revised from the benchmark year to fit the new figures.

Regarding differences in the amount of

CO

2

emissions in the year ended March

2008 Environmental Sustainability

Report and this fiscal year's

Environ-mental Sustainability Report

The CO2emissions amount officially reported in this Environmental Sustainability Report handles energy-origin CO2calculated under Japan Iron and Steel

Federation's Voluntary Action Program.

However, according to the Law Concerning the Promotion of the Measures to Cope with Global Warming (Global Warming Measures Law), the reporting of all greenhouse gases stipulated in the Kyoto Protocol is required. This is why there is a difference between the two figures. The actual figures for the year ended March 2007 are shown in the graph to the right.

In addition to CO2, JFE Steel strives to reduce all

greenhouse gases.

Regarding differences of the figures

between the Environmental

Sustain-ability Report and Global Warming

Measures Law

60

59

58

57

56

55

54

55.3 58.1

55.8 58.6

2.8 2.8

CO2 emissions for year ended March 2007 CO2 emissions

for year ended March 1991

Energy origin usage after the change in the coefficients used in converting data to CO2 values *The energy amount is determined by the energy conversion coefficient (Note 1) *The CO2 amount is determined by the CO2 conversion coefficient (Note 2)

Differences in CO2 emissions amount figures

(million t-CO ) Difference due to coefficient revision Emissions amount before coefficient revision

Environmental Sustainability Report 2008 Environmental

Sustainability Report 2007

Environmental Sustainability Report 2008 Environmental Sustainability Report 2007

60

59

58

57

56

55

54

60.29

58.60

58.16

58.16 2.13

1) Because under the Global Warming Measures Law data is totaled for each corporation (company), CO2 emissions from Kyodo Oxygen are not included

2) Non-energy origin CO2: generated from heating limestone and dolomite CaCO3 (limestone) heat CaO (calcium oxide)

3) Generated by combustion of greenhouse gases such as methane and nitrous oxide in reheating furnaces and neutralizing factory wastewater (bacteria treatment)

Differences in CO2 emissions amount figures from year ended March 2007

(million t-CO ) Energy origin CO2

Non-energy origin greenhouse gases

Environmental Sustainability Report 2008

Energy origin CO2 under the Global Warming

Measures Law

Amount notified under the Global Warming

Measures Law

<Explanation> Changes in the amount of JFE Steel's CO

2

emissions in the year ended March 2007

(12)

International Contribution

Using energy conserving technology of the highest international standards, we are involved in the following international actions in the fight against global warming.

Japan and China held the Japan China Steel Industries Conference on Exchange of Advanced Technologies on Environmental Preservation and Energy Saving. In December 2007, prominent experts on Japanese steel, including JFE Steel, conducted diagnoses regarding environmental preservation and energy saving at three steelworks in China.

The APP *1steel task force (chaired in Japan) is

promoting CO2reduction in seven countries through environmental preservation and energy conservation.

IISI *2provides a framework for CO2reduction by

introducing superior modern operational technology and energy conservation technology in steel industry centers across the world in the short term, and

International Activities to Prevent Global Warming

promoting the development of innovative steel production technology in the long term.

Along with other major Japanese steel companies, JFE Steel is asserting to APP and IISI the effectiveness of the Sectoral Approach, a powerful strategy for reducing CO2emissions on a global scale from 2013

onwards (Post-Kyoto Protocol).

*1APP: Asia Pacific Partnership (an Asian-Pacific partnership concerned with clean development and weather) was launched in July 2005 with the participation of Australia, China, India, the Republic of Korea, and the United States. (From October 2007, Canada, the seventh nation, will also take part.) The goal of APP is to take on issues such as climate fluctuation and energy security. It set eight target areas, including steel, and established a task force for each field, composed of members from the public and private sectors. It is currently conducting activities in each field.

*2IISI: The International Iron & Steel Institute is composed of approximately 180 leading steel manufacturing corporations in territories including Japan, the USA, the EU, Russia, India, Brazil, and Korea. It covers almost all of the world's crude steel production needs. In their October 2007 board meeting, they decided to use the Sectoral Approach internationally.

International Contribution

by Providing Environment

/Energy Technologies

An energy conservation diagnosis at Taiyuan Iron & Steel in China

(13)

World Map of International Cooperation Projects by the JFE Group APP member nations

Thailand

• Industrial waste incinerator heat recovery model project for Industrial Estate Authority of Thailand • Study on introduction of high performance industrial furnace for steel rolling reheating furnaces in Thailand

5 others

Malaysia

• Energy saving model project for waste heat recovery from papermaking sludge incinerator

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

• FS for palm refuse fueled biomass power generation Other

Brazil

• Study on energy saving measures by low-temperature waste heat recovery at Acominas Works

Other

Vietnam

• FS for energy saving at Vietnam Steel Corp.

Other

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

Indonesia

• FS for biomass (palm refuse) power generation using circulating fluidized bed (CFB) boiler

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

• FS for fuel conversion of diesel power generation system

Other Bangladesh

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

China

• An environment preservation and

energy conservation diagnosis at Taiyuan Iron & Steel • DME production from unused coke oven gas • Model project to reduce energy consumption at ferroalloy electric furnace by raw material pretreatment and utilization of flue gas • FS for regenerative burners at Shougang Iron & Steel Co. and Anshan Iron & Steel (Group) Co. • Study for energy saving measures for lime burning furnace

• Study of natural gas DME project in Sichuan Province

14 others India

• An energy conservation diagnosis at Steel Authority of India Limited • FS for waste heat recovery at sintering cooler at Tata Iron and Steel Co., Ltd.

3 others

• Study on introduction of high performance industrial furnace technology for reheating furnaces in Poland

Poland

• Study on optimization of gas pipeline improvement 2 others

Ukraine

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

Russia

• FS for energy saving at Pakistan Steelworks Pakistan

The Future of Reducing CO

2

through Steel and the Sectoral Approach (see Note below)

Projects outside Japan

Deployment of top world class energy-conserving technology from the Japanese steel industry to steelworks all over the world

A CO2emissions reduction of 300 million tons for worldwide

steelworks is possible (calculated by JISF and the Research Institute of Innovative Technology for the Earth)

CO2 reduction from advanced technology research and

development in the Japanese steel industry

➠➠

Note : The Sectoral Approach is a CO2reduction method that applies efficiency indices (example: unit CO2per ton of crude steel) across the entire world. The indices are categorized by each sector, such as steel or electrical power. Because the Approach is based on efficiency indices, it is easy for developing countries such as China and India to participate. It is a reliable method of reducing CO2backed by technology.

Possible CO2 emissions reduction through technology switching 130

120

110

100

90

Japan South Korea EU Large-scaleNation-wide

China USA Russia 100 105 110 120 110 120 125 International Comparison of the Unit Energy Consumption of Integrated Steelworks

Index (Japan = 100)

Source: The Japan Iron and Steel Federation

Based on the environmental preservation, energy conservation, and CO2reduction technology achieved by JFE through ongoing technological development, we are conducting numerous projects to fight global

(14)

Environmental Management

Environmental

Management System

Under the JFE Group CSR Council, the JFE Group has set up not only the Group Environmental Committee chaired by the President of JFE Holdings, but also an Environmental Committee 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 activities, progress checks of those activities, and evaluation of environmental performance for the whole group.

JFE has also established the Group Environmental Liaison Committee made up of persons responsible for environmental matters at JFE Holdings and the five operating companies in order to spread environmental

Construction and Operation of Environmental Management System

activities within the Group evenly and improve the level of activities. From 2008, with under a new system by which Universal Shipbuilding Corporation has been added to the five operating companies, JFE aims to further improve the Environment Management system.

JFE Steel Group Companies Environmental Liaison Committee

JFE Group Environmental Committee Environmental Management System

JFE Steel En

vir

onmental

Committee JFE Engineering En

vir

onmental

Committee Univ

er

sal Shipbuilding Corpor

ation

En

vir

onment Council

Ka

w

asaki Micr

oelectr

onics

En

vir

onmental Committee

JFE R&D En

vir

onmental

Committee

JFE Urban De

velopment

En

vir

onmental Committee

Affiliated Compan

y

En

vir

onmental Committee

Affiliated Compan

y

En

vir

onmental Committee

Gr

oup En

vir

onmental Liaison Committee

Affiliated Compan

y Gr

oup En

vir

onmental

Liaison Committee

Member

s: P

er

sons r

esponsible f

or en

vir

onment

at JFE Holdings and each oper

ating compan

y

Member

s: P

er

sons r

esponsible f

or en

vir

onment

at each oper

ating compan

y and affilia

ted compan

y

JFE Group Environmental Committee

Chairman: President of JFE Holdings

Members: Directors responsible for environmental matters at JFE Holdings and each operating company

Environmental Committee (Operating Company)

Chairman: President or director responsible for environmental matters at the operating company Members: Managers of related departments, persons responsible for environment at each works, center

Environmental Committee (Affiliated Company)

(15)

Each company in the JFE Group has been aiming to receive ISO 14001 certification in order to promote voluntary and continuous environmental activities. Three operating companies with production facilities have all received ISO 14001 certification, either for individual works or at the whole company level. In March 2008, Steel Research Laboratory of JFE Steel received ISO 14001 certification. Many affiliates of the operating companies have also been aiming to receive the certification. The JFE Group will continuously extend the number of accredited companies/produc-tion facilities.

Promotion to Receive ISO 14001

At the JFE Group, the environmental auditing has been conducted on the basis of ISO 14001, and with the aim of enhancing environmental management quality. As for the environmental auditing on the basis of ISO 14001, external inspection is made by certification authorities, while internal auditing is conducted 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

As for the environmental auditing with the aim of enhancing environmental management quality, internal auditors of the head office's audit department and environmental experts of the head office's environmental management division conduct auditing on issues centering on the environmental management status and compliance system with environment related regulation of each of the operation facilities and affiliated companies.

Environmental Auditing

The JFE Group conducts environmental education at all levels to deepen the understanding of each employee and encourage individual efforts to improve the environment as part of regular work. In each operating company, environmental education is incorporated in training programs for new employees and promotion, and also includes annual programs at each level, covering social trends related to environmental problems, the significance of the environment to JFE and measures being taken by the company, the responsibility of individual employees, and the importance of environmental management.

Environmental Education

In 2002, the JFE Group established a common group-wide set of "Green Purchasing Guidelines" for purchases of office supplies and parts/materials for production.

Green Purchasing

In outline, the Guidelines specify

•Adequate study of required quantities

before purchase to minimize purchased amounts. •Consideration of environmental loads

over the entire life cycle of final products, in addition to price, quality, delivery schedules, etc.

•Requests for and cooperation with environmental protection efforts of suppliers on a daily basis. Examples of green purchasing:

•Stationery, office equipment •Recycled oil, solvent containers,

packaging materials,

electric/natural gas/hybrid vehicles, etc.

Profile of ISO 14001-certified companies is provided at the following website: http://www. jfe-holdings.co.jp/ environment/

(16)

Communication with Society

Related to the Environment

Tsurumi ward system, in September of last year we held a tree planting festival in a green belt we own alongside Japan Railway's Tsurumi Line. Together with about 50 local residents, company employees and employees from other companies in the JFE Group participated as volunteers.

Planting trees for "Forest Building in Keihin"

The JFE Group participates in various exhibitions on environmental themes to encourage information exchanges with a wide range of people. At Eco-Products 2007, which attracted approximately 160,000 visitors, we presented JFE's environmental initiatives as well as the Group's technologies/products that support society and life, and contribute to environmental protection.

Exchanges through Exhibitions

JFE booth at Eco-Products 2007

General Affairs Section of the JFE Engineering Tsurumi Engineering and Manufacturing Center – Facilities and Environment Group We enjoy interaction with many people outside the company through environmental activities such as Keihin no Morizukuri (Forest Building in Keihin) and the Tonbo wa Dokomade Tobuka Forum (The How-Far-Will-a-Dragonfly-Fly? Forum). We want to expand these types of activities within our company and within the JFE Group as a whole, and link this to a greater feeling of satisfaction among employees as well.

The Tree Planting Festival held together with the Environmental Planning Bureau, City of Yokohama and the Tsurumi Ward Office

Environmental Communication

Along with ten companies in the nearby area, JFE Engineering Tsurumi Engineering and Manufacturing Center exchanged a pledge with Yokohama City to cooperate together for the goal of expanding greenery, and is taking part in the Keihin no Morizukuri (Forest Building in Keihin) in an effort to energize the ecology.

(17)

The JFE Group actively offers information related to the environment through the Internet. On the JFE Group website, its environmental management policy, activities and results are introduced under the title of "Environmental Activities."

Moreover, JFE has been cooperating with an environmental website, where general knowledge on

environmental issues is presented in an easily comprehensive way. Through this linkage, the Group introduces voices of "eco people," who are innovatively involved in environmental issues. This is one example of JFE's efforts to promote environmental awareness activities among the general public.

Information through the Internet

JFE Holding's environmental initiative website at:

http://www.jfe-holdings.co.jp/ environment/index.html

Please visit our website

Environmental website "ecobeing" at:

http://www.ecobeing.net/ JFE Steel promotes the maintenance of greenery on

(18)

Environmental Accounting

Environmental Accounting

To promote energy saving and further reduce environmental 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 ¥366.2 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, cumulative investment in environmental protection since 1973 has reached ¥517.2 billion. We will continuously invest in measures to further reduce environmental loads.

Transition of Capital Investment

Cumulative investment

in energy saving since 1990

366.2

billion yen Cumulative investment in environmental measures since 1973

517.2

billion yen

'91'92 '93 '94 '95 '96 '97 '98 '99 '01 '01 '02 '03 '04 '05 '06'07'08

400

300

200

100

0

366.2

'74'76 '81 '86 '91 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06'07'08

517.2 500

400

300

200

100

0

* Investment in environmental protection:

Total investment in effective use of resources and environmental protection

Cumulative Investment in Energy Saving

(billion yen) (billion yen)

(Years ended March 31) (Years ended March 31)

Cumulative Investment in Environmental Measures*

The year ended March 2008: Environmental cost

83.4

billion yen

Environmental accounting

In the year ended March 2008, environment-related capital investment totaled ¥14.8 billion and expenses amounted to ¥83.4 billion. The ratio of environment-related capital investment against total capital

investment is approximately 10%. As a result of activities during the year ended March 2008, the effects of energy conservation were valued at an estimated ¥1.9 billion.

Environmental Protection Costs

Description

Total

Amount of Investment

Amount of Expenses

Environmental investment & expenses related to JFE’s own business

Management Monitoring & measurement of environmental influence, EMS-related activities, environmental education & training, etc.

4.3 1.1

฀ ฀

14.8

2.5 15.5 18.7 38.1 1.6 6.4 0.6

83.4

(billions of yen)

Environmental investment & expenses related to customers and society

Prevention of global warming

Effective use of resources Environmental protection

Miscellaneous

Research & development

Social activities

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 environment, energy, prevention of global warning

Protection of nature, support to forestation, information disclosure, exhibition, advertisement, etc.

Environmental accounting data stated above were calculated on the basis of the following assumptions. Period subject to accounting: April 1, 2007 to March 31, 2008

Scope of Compiled Data: For costs, data on environment-related investment and expenses at JFE’s steelworks were gathered, but in the field of research & development, Group-wide data were collected.

The effects refer to “presumed effects”; “risk aversion effects,” etc., are excluded from calculations.

(19)

Reducing Environmental Loads

in Business Activities

By Utilizing the World's Most Advanced Technology

for Reduction of Environmental Loads

• Energy/Material Flow in the Steelmaking Process 19

(20)

Reducing Environmental Loads in Business Activities

Energy/Material Flow

in the Steelmaking Process

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 environmental loads in each steel production process.

Materials for steel production • Iron ore 47 million tons • Coal 24 million tons • Lime 6 million tons

Purchased energy • Electricity + Oil type 108 PJ

Industrial water 243 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

• Others

Input

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

Gas turbine combined cycle power plant, Power plant fuel preheating device, High-efficiency air separation equipment Coke dry quenching

(CDQ), coal moisture control (CMC), combustion control

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

Dust Dust

Coke oven gas desulfurization, waste ammonia liquor COD treatment, chemical by-product recovery Dust, NOx, SOx, COD Flue gas, dust, wastewater (ammonia liquor)

Flue gas desulfurization & denitrification Dust, NOx, SOx Flue gas, dust, wastewater

Gas recovery, dust collection, dust treatment, slag recycling Dust, SS Flue gas, slag, dust, wastewater

Gas recovery, dust collection, dust treatment, slag recycling Dust, SS Flue gas, slag, dust, wastewater Counter-measures facility Generated substance Environmental impact Counter-measures facility

Energy conservation technology

Steel production process

Environmental conservation technology

Recycling Process at the JFE Group

Steel Production Process at JFE Steel

Energy recycling in works 66%

Wastewater, evaporation loss 6.4%

Landfill disposal 0.3%

BOF, EF, CC Blast furnace

Sintering plant Coke oven

Raw material yard

Coke oven gas BF gas BOF gas Oxygen plant

Byproducts recycling 29.7%

Water recycling 93.6%

Recycled water

Byproducts 16.7 million tons

(21)

Energy supply 34% • Power • Fuel gas • Steam

Marine & land civil engineering materials 70% • Material for cement • Roadbed material • Port & harbor construction material • Fertilizer

Other products • Chemicals • Oxygen • Nitrogen • Hydrogen • Argon Iron and steel products 30.5 million tons (crude steel base)

Byproducts • NF® Board

• PET material

Output

Regenerative burner, direct charging, low-temperature extraction

Endless rolling, online heat treatment

Waste heat boiler, rotary regenerative heat exchanger

Shortening of transportation distance, improvement of load efficiency, modal shift, application of IT

Low-NOx burner, use of cleaner fuel NOx Flue gas, dust

Waste acid & waste alkali treatment, waste oil recycling, coagulating sedimentation SS, waste oil, waste acid, iron salt Rolling wastewater, pickling wastewater

Wastewater treatment Metallic ion, etc. Coating wastewater

Conversion to low-emission vehicles NOx, SPM (suspended particulate matter) Exhaust gas Chemical

substances • Release 643 tons • Transfer 2,053 tons

CO2 Approx. 63 million tons Flue-gas • SOx 3.7 million m3 • NOx 12.7 million m3 • Dust

Continuous annealing, coating Hot rolling,

cold rolling

Reheating furnace Shipment

Power generating plant

Recovered energy recycling

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

Turbine: TRT)

Local community/Other industries/Society

Byproduct recycling rate

99.7

%

Water recycling

(22)

Reducing Environmental Loads in Business Activities

Reducing Environmental Loads in

Business Activities at JFE Steel

Air Quality Preservation

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 denitrification 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 measures by identifying individual sources and designing specific measures for each source.

40

30

20

10

0

1974 1981 1986 1991 1996 2001 2006 2007

36.8

7.1 5.8 6.0

5.4 5.9 3.6 3.6

2008 3.7

34.6

15.3

12.3 13.7 13.0 13.8 12.6 13.012.7

30

20

10

0

Transition of SOx Emissions

(million Nm3) (million Nm3)

(Years ended March 31)

1974 1981 1986 1991 1996 2001 2006 20072008 (Years ended March 31) Transition of NOx Emissions

Processing equipment for gas emissions from sintering furnace: an example of the activated coke method at the West Japan Works (Fukuyama)

(23)

Water Quality Preservation

JFE Steel has been earnestly promoting circu-lation/recycling of industrial water consumed in the steel production process, with its industrial water circulation rate*maintained at as a high level as about 94%. 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

Environmental Surveillance

We constantly monitor the load on the atmosphere and on water quality in an effort to keep environmental abnormalities from occurring. Also, if abnormalities do occur, e-mail messages carrying information are automatically sent to the appropriate personnel to enable immediate response.

400

300

200

100

0

94

93

92

91

90

1991 1996 2001 20062007

220 214 210 231 228

2008

243

93.3 93.4

94.1

93.7 93.8 93.6

3.7

3.2 3.5 3.3 3.3 3.2

4

2

0

Transition of Received Industrial Water and Circulation Rate

(Years ended March 31)

1991 1996 2001 200620072008

(Years ended March 31) Received industrial water (million t) Industrial water circulation rate (%)

Transition of COD (Chemical Oxygen Demand)

(t/day)

Exhaust gas sampling Environmental abnormality information system: an example from West

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

(24)

Reducing Environmental Loads in Business Activities

Effective Utilization of Byproducts

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.

1991 1996 2002 2003 2004 2005 2006 2007

48.0

8.5 9.5

7.5 11.0

7.9 6.0 6.0

50

40

30

20

10

0

100

99

98

97

96

95

96.5

99.3 99.5 99.599.399.5 99.6 99.6

2008 5.0 99.7 Transition of Landfill Disposal and

Recycling Rate of Byproducts

(Years ended March 31) Landfill disposal (10,000 t) Recycling rate (%)

Appropriate Processing of PCB Waste

We practice appropriate storage of PCB waste in accordance with the law. In April 2008 we began processing PCB waste from our West Japan Works (Kurashiki) at the Kitakyushu Facility of the Japan Environmental Safety Corporation (JESCO).

Sorted waste bricks for recycling at East Japan Works (Keihin)

*1Iron and steel slag: Material consisting of non-iron rock components in iron ore and lime, etc. It separates from and floats on the molten metal. Slag is mainly used as material for cement.

*2Sludge: Material remaining after dewatering of the mud-like substance separated and removed by circulating water/wastewater treatment equipment.

(25)

Control/Release Reduction of Chemical

Substances

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 the year ended March 2002, total release into air and public waters has been reduced. In the year ended March 2008, landfill disposal increased due to the production increase of crude steel.

Release

Total

Total release 643 Total transfer 2,053

Transfer

Air Public waters Soil on-site Landfill on-site Sewerage Off-site

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 compounds

1,1-dichloro-1-fluoroethane (HCFC-141b) Dichloropentahluoropropane (HCFC-225) Dichloromethane

Styrene

Selenium and its compounds Dioxins

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

Lead and its compounds Nickel

Nickel compounds Hydrazine Phenol

Hydrogen fluoride and its water-soluble salts Benzene

Boron and its compounds Poly (oxyethylene) alkyl ether Poly (oxyethylene) nonylphenyl ether Formaldehyde

Manganese and its compounds Mercaptoacetic acid

Molybdenum and its compounds Tris (dimethylphenyl) phosphate

0 2.0 0 0 0 37 0.3 192 0.04 0 0.04 0 63 13 26 0.7 0 8.2 0 24 0 11 76 0 0 0.02 0 1.0 0 40 0 0 0 0 0.06 0.002 0 0 486 5.5 2.6 3.2 0 0 0 0 0 1.2 0 0 0 0 0 0 0 0.2 0.002 0.007 0 0 0 0 0.5 0 2.4 0.07 0.02 38 0 21 0 41 0 10 0 9.2 0 135 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 21 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 0.9 0 0.09 0 22 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 17 46 0 0.7 6.0 0.7 821 0.9 3.6 0.3 0 0 0 0 2.9 0 0 0 0 0.02 2.9 200 48 48 0 0 28 0 5.1 0.01 2.3 0 746 0 71 2.4 2,053 1 16 25 26 30 40 43 63 68 69 85 100 132 144 145 177 178 179 198 200 207 224 227 230 231 232 253 266 283 299 304 307 309 310 311 345 346 353

Substances Reported under PRTR (The Year Ended March 2008) (Unit: tons; dioxins: g-TEQ)

No. Substance 2002 893 875 633 1,415 843

763 720 698 1,053 1,098

1,327 2,003

2003 2004 2005 2006 2007

621 2,075 2008 2,000 1,500 1,000 500 0

Release and Landfill Disposal

Release into air and public waters

(t) Landfill disposal

(26)

Reducing Environmental Loads in Business Activities

Efforts to Restore Marine Environments

using Steel Byproducts

Marin Block®

– Seaweed and coral growing beds –

The world's first Marine Block®is a completely new

product made only from the source materials of CO2

gas emissions and steel byproduct that is generated in steel works converters. The material is the same calcium carbonate found in shells and coral, which blends well with marine life. Because of this, it aids the recovery of coral reefs, reduces CO2 in gas emissions,

and helps in the fight against global warming.

Frontier StoneTM& Frontier RockTM – Artificial rock material replacing natural crushed rock –

This is an artificial rock material made out of steel byproducts from blast furnaces and converters in steel works. Frontier StoneTMis an artificial rock material with a particle size of 300 mm or less, and Frontier RockTMis a large artificial rock material. They can be used as construction work materials at harbors and ports, and are excellent at supporting sea life such as seaweed.

Marine Stone®

– Modifying dredge soil –

Modifying dredged soil with Marine Stone®mixture can

turn dredged soil into banking material and has an effect on phosphorus adsorption, a cause of eutrophy.

Frontier RockTM

Seaweed growing on Marine Stone®

JFE Steel is dedicated to developing applications for steel byproducts and expanding their usability. Products created out of steel byproducts are expected to play a part in preserving the ocean as functional materials.

Example of marine environment restoration

Ocean floor

(27)

Project head: Kumi Oyamada

Appointed in both the Aqua Bio Chemical Research Division of JFE R&D Corporation and the Resource Circulation Promotion Department of JFE Steel

We are running verification tests around Ishigaki Island and Miyako Island, and Indonesia as well, and are already seeing corals that have grown larger than 10 centimeters in diameter on Marine Blocks®. I want to use this technology to preserve not only coral reefs, but to help preserve the wider natural environment as well.

Recovery of coral reefs with Marine Block

®

Substrate with coral larvae attached is placed on Marine Block® 15 months after installation (young coral is growing

healthily on Marine Block®)

135 millimeter coral attached to Marine Block®31 months after installation

Coral reefs are spread out in great quantities across ocean areas from the tropics to the subtropics. In addition to functioning as mating and feeding grounds for a variety of organisms, they serve an important role as natural breakwaters for island countries. However, the coral reefs of the world are facing a severe crisis because of problems like the inflow of sediment from land, an explosive increase in predators such as the acanthaster (also known as the crown-of-thorns sea star), and the increase in

ocean water temperatures due to global warming. Coral reefs are being damaged through whitening caused by increasing ocean water temperatures, and we are involved in the development of technology to help coral reefs reclaim the seas. By combining our Marine Block®as a growing base for

coral with the coral larvae substrates devised by professor Okamoto of the Tokyo University of Marine Science and Technology, we are working towards coral reef recovery.

(28)

Reducing Environmental Loads in Business Activities

Reducing Environmental Loads in

Business Activities at JFE Engineering

Global Warming Prevention

lighting on bright days, streamlining compressed air usage, and implementing energy conservation patrols.

In the production divisions and office divisions together, the total amount of CO2emissions was 16.4 thousand tons for the year ended March 2008. This is a 2.4% decrease from the 16.8 thousand tons for the year ended March 1991.

From August 2004 onward, we have been striving to assess the amount of CO2emissions for local const-ruction sites. In addition, from the year ended March 2007, we began trial implementation of other activities designed to reduce CO2output such as reducing

occurrences of machine idling at construction sites.

20

15

10

5

0

1991

16.8

2004

13.9

2003

15.5

2005

14.0

2006

14.5

2007

15.3

2008

16.4 Transition of CO2 Emissions

CO2 Emissions(1,000 t-CO2)

(Years ended March 31)

Solar street lights installed at the Tsurumi Engineering and Manufacturing Center

I n p u t

JFE Engineering

• Tsurumi Engineering and Manufacturing Center

• Shimizu Works

• Tsu Works

O u t p u t

Material Balance

Raw materials

Energy

Electricity consumption

A-heavy oill

Kerosene

Light oil

Gasoline

Urban gas

LPG

LNG

Water

74,591t

32,478,470 kWh

269.8 kl

92.5 kl

205.3 kl

23.3 kl

887,450 Nm3

227.6 t

0 t

191 thousand tons

Products

Air pollutants

CO2

NOx

SOx

Dust

Waste generated

Wastewater

Other (PRTR)

68,631 t

16,386 t

max 128 ppm

max - ppm

max 0.1140 g/Nm3

1,522 t

270 thousand tons

204.2 thousand kg

JFE Engineering constructs environmental management systems in line with the function and activities of each production center as our part in the fight against global warming.

In the office area, we do what we can to promote energy conservation by using a highly efficient Clathrate Hydrate Slurry (CHS) Heat Storage Air-conditioning System, turning off lights during lunch breaks, and keeping unused computers turned off. In the year ended March 2008, we installed solar street lights at the Tsurumi Engineering and Manufacturing Center.

In the production divisions, we have employed measures such as saving electricity by reducing factory

CO2emissions in

comparison to the year ended March 1991 levels down

参照

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