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Environmental Report

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Introduction——

Responsibilities of Technology

A Message from Top Management

Responsibilities of Technology I

Contributing through Steelworks Environmental Protection/Energy Saving Technologies

Responsibilities of Technology II

Contributing through Environment-friendly Products and Technologies History of Environmental Measures in the JFE Group

Environmental Management System

Implementation & Operation of the Environmental Management System (EMS)

Communication with Society

Objectives and Results for Global Environmental Activities Environmental Accounting

Environmental Performance Report 1

Reducing Environmental Loads in

Production Activities

Efforts at JFE Steel

Preventing Global Warming

Reducing Generation/Discharge of Byproducts

Preserving Environmental Quality

Reducing Releases of Harmful Chemicals

Preserving the Environment through Innovative Transportation Efforts at JFE Engineering

Efforts at Kawasaki Microelectronics

Environmental Performance Report 2

Contributing through

Environment-friendly Products and Technologies

Ecological Steel Products

Environment -friendly Engineering Technologies

Environmental Performance Report 3

Contributing to Environmental

Improvement in Local and International

Society

Providing Total Solutions for a Better Environment

International Cooperation through Environmental/ Energy Technologies

Environmental Performance Report 4

Research and Development of

Environmental Technologies

Research and Development System Efforts at Steel Research Laboratories Efforts at Engineering Research Center

Efforts at JFE R&D/ Research on Next-Generation Clean Energy

External Awards Received

Environmental Business Network of JFE Group Companies

Editorial Policy

Scope of Report

Organizations included in environmental performance data totals

JFE Steel Corp.

East Japan Works (Chiba District/Keihin District) West Japan Works (Kurashiki District/Fukuyama District) Chita Works

JFE Engineering Corp.

Tsurumi Engineering and Manufacturing Center, Shimizu Works, Tsu Works

Kawasaki Microelectronics, Inc. Utsunomiya Works

19

33

42

49

“Environmental Report 2004” describes the basic policies related to the environment, environmental protection activities in fiscal year 2003, and 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. To ensure a correct understanding of the en-vironmental protection activities of the JFE Group, the Report consid-ers changes in the business environment surrounding the steel in-dustry, such as trends in world crude steel demand. This Report was edited/prepared in accordance with “Guidelines for Environmental Reports (FY2003 ed.)” issued by Japan’s Ministry of the Environment (MOE) and “Sustainability Reporting Guidelines 2002” issued by the Global Reporting Initiative (GRI).

Among corporate social responsibility (CSR) items, Corporate Gov-ernance is included in Annual Report.

Organizations Included

This Report centers on JFE Holdings, Inc. and JFE Steel Corporation, which is responsible for the JFE Group’s steel business, and includes JFE Engineering Corporation and Kawasaki Microelectronics, Inc., which have also production facilities, JFE Urban Development Cor-poration, which is responsible for the Group’s urban development business, and JFE R&D Corporation, which is responsible for general research and development in the JFE Group.

The following navigation tool is provided for easy understanding of the organization(s) covered on each page.

The organizations included in environmental performance data totals are as follows:

Period of Environmental Report 2004

In principle, fiscal year 2003 (April 1, 2003 to March 31, 2004).

Scheduled Publication Date of Next Report

December 2005

Data for FY2002 and before are totals of data for Kawasaki Steel Corp. and NKK Corp. before merger.

Affiliated companies which are subject to consolidated accounting by these operating companies are not included in the scope of this Report except where specifically noted.

Tsurumi Engineering and Manufacturing Center is referred to as Tsurumi Center for short in some cases.

* *

*

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D Navigation tool

2 3

5

7 9

11 14 17 18

20 23 26 27 28 29 31

34 39

43 48

50 51 52 53

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What is the JFE Group?

JFE Group Businesses

The JFE name is composed of the letter “J” for Japan, “F” for steel (as in Fe, the atomic symbol of iron) and “E” for engineering. The acronym can also be thought of as standing for “Japan Future Enterprise,” i.e., a future-oriented Japanese business group centered around the core businesses of steel and engineering.

For the detail of consolidation, refer to: For the detail of JFE Name, refer to:

JFE Holdings

JFE Engineering

Headquarters for the JFE Group

World’s excellent steel company

Proposing optimum solutions in the global field

Utilizing unique ASIC manufacturing technologies

Applying diverse know-how to urban development

Development of common technologies for the JFE Group The JFE Name

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

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

Total sales of JFE Group

¥2,473.7 billion

JFE Steel

Main Works in Japan and Main Products

Kawasaki Microelectronics Utsunomiya Works

JFE Engineering Tsurumi Engineering and Manufacturing Center JFE Engineering Shimizu Works JFE Engineering Tsu Works JFE Steel East Japan Works (Keihin/Chiba)

JFE Steel Chita Works

JFE Steel East Japan Works (Nishinomiya)

JFE Steel West Japan Works (Fukuyama/Kurashiki)

Japan Future Enterprise

As one of Japan’s representative future-oriented business groups,

the JFE Group is committed to creating the world’s most advanced technologies

and maintaining preeminent competitiveness in the marketplace.

Kawasaki Microelectronics

JFE Urban Development

JFE R&D

Kawasaki Microelectronics

Works name Location Main products

Utsunomiya Works cho, Haga-gun, Tochigi Pref.

ASICs JFE Steel

Works name Location Main products

East Japan

Works Hot rolled/cold rolled steel sheets, stain-less steel sheets, coated steel sheets, UOE pipe, iron powder, welding consumables

Chiba District

Chuo-ku, Chiba City, Chiba Pref.

Chita Works West Japan Works

Stainless steel products Nishinomiya

Works

Nishinomiya City, Hyogo Pref.

Plates, hot rolled/cold rolled steel sheets, coated steel sheets, electrical steel sheets, special steel products, welded steel pipes and tubes Keihin District Kawasaki-ku, Kawasaki City, Kanagawa Pref.

Seamless/welded steel pipes and tubes, castings

Handa City, Aichi Pref.

Plates, hot rolled/cold rolled steel sheets, coated steel sheets, electrical steel sheets, steel sheet piles, H-shapes, steel bars, wire rod material

Kurashiki District

Kurashiki City, Okayama Pref.

Plates, hot rolled/cold rolled steel sheets, coated steel sheets, steel sheet piles, H-shapes, rails, UOE pipe

Fukuyama

District Fukuyama City, Hiroshima Pref.

JFE Engineering

Works name Location Main products

Tsurumi Engineering and Manufacturing Center

Shimizu Works

Tsu Works

Shield tunneling machines, diesel en-gines, container cranes, boilers, turbines, waterworks pipes, etc.

Tsurumi-ku, Yokohama City, Kanagawa Pref.

Steel frame structures Shimizu City,

Shizuoka Pref.

Various large-scale steel structures (long/large bridges, water gates, cais-sons, etc.) Tsu City, Mie Pref. Date est. Head office Consolidated sales Consolidated operating profit Employees

April 1, 2003

2-2-3 Uchisaiwaicho, Chiyoda-ku, Tokyo ¥2,103.9 billion (year ended March 2004) ¥242.7 billion (year ended March 2004)

14,272 (as of April 1, 2004)

Content of business Group companies

Manufacture and sale of iron and steel products, industrial and municipal waste treatment business, waste recycling business

Consolidated subsidiaries: 193

Companies covered under equity method: 37

Date est. Head office Consolidated sales Consolidated operating profit Employees

Sep. 27, 2002

1-1-2 Marunouchi, Chiyoda-ku, Tokyo ¥2,473.7 billion (year ended March 2004) ¥253.6 billion (year ended March 2004)

118 (as of April 1, 2004)

Content of

business Group headquarters responsible for the strategic functions of the JFE Group as a whole, risk management and external relations for entire JFE Group.

Date est. Head office Consolidated sales Consolidated operating profit Employees

April 1, 2003

1-1-2 Marunouchi, Chiyoda-ku, Tokyo ¥339.4 billion (year ended March 2004) ¥3.1 billion (year ended March 2004)

2,477 (as of April 1, 2004)

Content of business Group companies

Total engineering business (energy-related fields, environment-related fields, steel engineering-related fields, steel structures, industrial machinery)

Consolidated subsidiaries: 22

Companies covered under equity method: 4

Date est. Head office Consolidated sales Consolidated operating profit Employees

July 1, 2001

1-3 Nakase, Mihama-ku, Chiba City, Chiba Pref.

¥40.5 billion (year ended March 2004) ¥5.0 billion (year ended March 2004)

488 (as of April 1, 2004)

Content of business Group companies

Manufacture and sale of semiconductors, centering on ASICs (application specific integrated circuits) (design, development, manufacture, and sales of ASCP/ASSP)

Consolidated subsidiaries: 3

Date est. Head office Consolidated sales Consolidated operating profit Employees

April 1, 2003

1-1-2 Marunouchi, Chiyoda-ku, Tokyo ¥26.2 billion (year ended March 2004) ¥1.5 billion (year ended March 2004)

58 (as of April 1, 2004)

Content of business Group companies

Urban development (large-scale complex development, condominium sales, asset utilization)

Consolidated subsidiaries: 3

Date est. Head office Employees

April 1, 2003

1-1 Minami Watarida-cho, Kawasaki-ku, Kawasaki City, Kanagawa Pref. 89 (as of April 1, 2004)

Content of

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Responsibilities of Technology

“JFE means Technology.” — In changing times, these are the missions which we must accomplish.

Meeting Rising World Crude Steel Demand

World crude steel demand is continuing to grow, driven by rapid

econom-ic development in the East Asian region, and parteconom-icularly in China.

Be-cause the Japanese steel industry leads the world in steel manufacturing

technologies, we must continue to provide a stable supply of high quality

steel products.

Reducing Environmental Loads

With conventional technologies, rising crude steel demand means heavier

environmental loads. Based on the world’s most advanced energy saving

and environmental protection technologies, we are committed to reducing

environmental loads in the steel manufacturing process through continuing

technical innovation.

Building a Sustainable Society

Because today’s affluent society places a heavy burden on the global

envir-onment, sustainable development will require new products and

technolo-gies which reduce environmental loads. This means that the environmental

responsibilities of technology will become even larger in many areas,

in-cluding energy saving materials, use of natural energy substitutes for fossil

fuels and development of next-generation clean energy, creation of

re-source- and energy-recycling systems in cooperation with business and the

local community, technologies for restoring the environment, and, at the

global level, solutions to the problem of global warming.

Transition of World Crude Steel Production

Japan

China Others

(FY)

’90 ’99 ’00 ’01 ’02

(million tons) 1,200

1,000

800

600

400

200

0 593

65 110

568 123 94

611 128

106

594 151

102

610 182

107

769 787 846 849

900

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A Message from Top Management

The JFE Group is committed to improving the global environment

while supporting social and industrial growth through steel and engineering businesses

based on the world’s most advanced technologies.

Corporate Vision

The JFE Group —— contributing to society with the world’s most innovative technology.

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

To reduce environmental influence in all business operations

JFE endeavors to reduce present and future environmental loads and

promotes the development of innovative technologies for reducing environmental loads.

1.

To make contributions through technologies and products

JFE contributes to the creation of a better environment through the development and supply of advanced technology, equipment, and ecological products.

2.

To make contributions through conservation of resources and energy

JFE contributes to the creation of a resource and energy-saving society through recycling and energy supply businesses which give priority to preservation of the global environment.

3.

To promote communications with society

As a member of regional society, JFE contributes to a better environment at the regional level in cooperation with local citizens, government and administrative authorities, and other businesses.

4.

To promote international cooperation

JFE contributes to environmental protection activities at the global level through active involvement in international cooperation in the form of technology transfer, etc.

5.

Chairman and Co-CEO

JFE Holdings, Inc. President and Co-CEOJFE Holdings, Inc.

Kanji Emoto

Yoichi Shimogaichi

The JFE Group believes that improvement of the global environment is

a critical management task. While we have achieved the world’s best

re-sults in many areas of environmental protection, including air and water

quality, recycling, and prevention of global warming, we are not satisfied

with past accomplishments, and will continue to make further efforts.

Iron is the most common element in the planet. Steel has

numer-ous outstanding properties, including formability and corrosion

resis-tance, and was recognized in the market as the material with the

high-est recyclability long before today’s calls for 3R (reduce, reuse, recycle

resources and waste). As a necessary and indispensable basic material

for many major industries, steel is widely used in construction, civil

engineering, automobiles, and machinery, making an important

con-tribution to the continuing growth of society and industry alike.

On the other hand, the steel manufacturing process requires huge

amounts of energy. For example, energy consumption in the Japanese

steel industry accounts for roughly 10% of this country’s total energy

consumption. The Japan Iron and Steel Federation therefore

estab-lished a Voluntary Action Plan under which the industry will reduce

energy consumption in FY2010 by 11.5% (including a supplementary

target) in comparison with FY1990, and is steadily realizing this goal.

JFE Steel implemented its 1st Energy Saving Activities Plan in

1973 in advance of other industries, and carried out ongoing energy

saving measures in the years that followed, reducing unit energy

con-sumption by approximately 20% by 1990. To date, the company has

invested about ¥800 billion in energy saving and environmental

pro-tection countermeasures, and has created the world’s most advanced

energy saving/environment-friendly steel manufacturing process. But

our efforts do not end with the manufacturing stage. We are also

mak-ing many important contributions to reducmak-ing environmental loads in

the use stage, for example, by supplying environment-friendly

prod-ucts such as high strength steel sheets which reduce auto weight and

low iron loss electrical steel sheets for motors.

Crude steel demand has continued to rise in recent years, supported

by the economic growth of the Asian region, and most notably China,

and further increases are also expected in the future. Utilizing the

world’s most advanced steel manufacturing technologies, JFE Steel is

playing a key role as a supplier of high quality steel products to markets

around the world, while developing, supplying, and encouraging wider

use of energy saving and environment-friendly products and

technolo-gies worldwide.

At JFE Engineering, we are striving to reduce environmental loads

in the manufacturing process and construction, and are devoting great

effort to engineering products and technologies which specifically

con-tribute to reducing environmental loads in the social infrastructure.

These efforts include technologies which reduce emissions of dioxins

and other harmful substances and a wide range of technologies for

pre-venting global warming, such as wind power and other clean energy,

energy saving air-conditioning systems, and biomass power generation.

We are confident that these important technologies will let us leave a

better planet to future generations.

In local society, the JFE Group is contributing to the creation of a

re-cycling-oriented society through recycling businesses which take

advan-tage of the synergies of engineering technologies and the high potential

of the steelworks for waste treatment. In the world community, we

in-tend to make even more active efforts to reduce the CO

2

emissions

as-sociated with global development by utilizing international systems

such as the Kyoto Mechanism, established under the Kyoto Protocol.

We are also putting great effort into research and development

ac-tivities which take a long-term view of the future. For example, the

JFE Group has already established a mass-production technology for

DME (dimethyl ether), which has drawn attention as a form of

next-generation clean energy, and is accelerating the pace of research aiming

at entry in the energy market in the near future.

The JFE Group believes that its mission is to contribute to the

crea-tion of a better global environment through the activities of the group

as a whole, not only by reducing environmental loads in business

activ-ities, but also by positively supplying environment-friendly Only 1 and

No. 1 technologies, products, and services to society.

This Environmental Report describes representative efforts of the

JFE Group to solve global environmental problems and the results

we have achieved. We hope that this Report will give our friends a

better understanding of our position and efforts with regard to

envir-onmental protection. We also welcome comments and suggestions

for future activities.

Chairman and Co-CEO

JFE Holdings, Inc.

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Input

Output

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

Energy supply (30%) •Power

•Fuel gas •Steam

Marine &

land civil engineering materials (63.1%) •Material for cement •Roadbed material •Fertilizer •Port & harbor

construction material Flue gas

•SOx •NOx •Dust

3.9 million m3 14.8 million m3 Chemical substances

•Release •Transfer

1,447 tons 446 tons Wastewater, evaporation loss (6.1%)

Recycled products

•NF Board •PET material

Recycled materials

•Steel scrap (BOF) •Waste plastic (BF) •Toner (sintering) Materials for steel production •Iron ore •Coal •Lime

44 million t/yr 24 million t/yr 5 million t/yr

Purchased energy •Electricity + oil-type fuels

91 PJ (petajoules)/yr

Recycled materials

•Waste plastics •Waste PET bottle •Electric appliance •Food waste •Dust/ Sludge

Landfill disposal (0.7%)

Recovered energy recycling

•Byproduct gas

•Waste heat recovery steam •Power (BF Top pressure

Recovery Turbine: TRT)

Iron and steel products Recycled water

Byproducts 15.6 million tons

Slag, Dust, Sludge

Energy recycling in works (70%)

On-site byproducts recycling (36.2%)

Water recycling (93.9%)

Industrial water 230 million tons/yr

27 million tons/yr (crude steel base) Coke dry quenching

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

Steel production process

Steel Production Process at JFE Steel

Recycling Process at JFE Group

Local community/ Other industries/ Society

Counter-measures —facility

Flue gas, dust, wastewater (ammonia liquor)

Dust Flue gas, dust,

wastewater Flue gas, slag, dust, wastewater Flue gas, slag, dust, wastewater Flue gas, dust Rolling wastewater, pickling wastewater Coating waste water Exhaust gas Generated

substance

Dust, NOx, SOx, COD

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

waste acid, iron salt Metallic ion, etc. NOx, SPM (suspended particulate matter) Environmental

impact

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

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

Counter-measures —facility

Gas turbine combined cycle power plant Power plant fuel preheating device High efficiency air separation equipment

Environmental conservation technology

Energy conservation technology

Raw material yard Coke oven

BF gas BOF gas

Sintering plant Blast furnace BOF, EF, CC Reheatingfurnace Hot rolling,cold rolling annealing, coatingContinuous Shipment

Coke oven gas

Oxygen plant

Sintering cooler waste heat recovery, ignition furnace line burner

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

Gas recovery, gas sensible heat recovery, nitrogen jet heater, ladle heating

Regenerative burner, direct charging, low-temperature extraction

Endless rolling, process continuation

Waste heat boiler, rotary regenerative heat exchanger Selection of transportation mode, shortening of transportation distance, improvement of load efficiency, modal shift, application of IT

Power generating plant

Contributing through Steelworks Environmental Protection/Energy Saving Technologies

The steel manufacturing process requires huge amounts of energy and natural resources such as iron ore, coal, and water. For many years, JFE Steel has endeavored to reduce environmental loads through R&D on energy saving and environmental protection technologies and aggres-sive investment in facilities.

Our steel manufacturing process now boasts the world’s highest ener-gy efficiency and recycling rates, but we are continuing to conduct R&D and introduce equipment to further reduce environmental loads in each steel manufacturing process. The main inputs/outputs in FY 2003 are shown below. Details are presented in the section on JFE Steel in “Environmental Performance I: Reducing Environmental Loads in

Pro-duction Activities,” beginning on p. 20.

In addition to efforts in the manufacturing process, the JFE Group is actively involved in recycling and reuse of wastes received from society and other companies using the steelworks’ infrastructure and unique JFE recycling technologies. With the remaining capacity of landfill sites stead-ily decreasing, reducing the amount of waste requiring landfill disposal has become an urgent necessity. In this area as well, JFE Steel and the JFE Group are helping to build a recycling-oriented society by receiving and recycling waste plastic, discarded appliances, food waste, and indus-trial and municipal waste. Details can be found in “Environmental Perfor-mance III: Recycling Solutions,” beginning on p. 45.

Responsibilities of Technology

JFE Steel is using the world’s most advanced energy saving and

environmental protection technologies

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In everyday life

In society

For the planet

Toxic substance-free steel sheets

Chromate-free coated steel sheets (p. 35)

Low environmental load products

Laminated steel sheet for food cans (p. 35)

Long-life low environmental

load products

Steel-framed House

High strength sheets & tubes

for weight reduction

High tensile strength automotive steel sheets (HITEN) (p. 34)

Ferritic stainless steel with high corrosion resistance and ultra-deep drawing property (p. 34)

HISTORY, ERW steel tubes

As-sintered alloy steel powder

(heat treatment-free) (p. 36)

Tailor Welded Blanks

Low environmental load materials

Lead-free steel sheets for fuel tank

Stainless steel sheets/tubes

for automotive exhaust system

Low core loss electrical steel sheets

High efficiency electrical steel sheets (p. 36)

Contribution to

recycling-oriented society

Waste plastic recycling for BF feed (p. 22)

NF Board (p. 46)

Home electric appliance recycling (p. 46)

Food waste recycling (p. 46)

Eco-Town Concept (p. 43)

High strength plates

for weight reduction

TMCP high strength steel plates

High corrosion-resistance

tubular products & steel plates

Martensitic stainless steel tubes (p. 37)

Weathering steel/ Rust stabilization treatment (p. 37)

Waste detoxification

and recycling

High-temperature gasifying & direct melting furnace

JFE THERMOSELECT gasifying & melting furnace

Electric resistance and plasma-type ash melting furnaces

Hyper 21 Stoker System (p. 41)

Circulating fluidized bed (CFB) boiler turbine power generation

Sewerage sludge methane fermentation

BIGADAN process biogas system (p. 41)

Environmental load

reduction technologies

Flue gas & fly ash dioxin treatment technology (p. 40)

Bio-Tube system (p. 40)

Sewerage sludge

circulating fluidized bed (CFB) incinerator

Environmental improvement

technologies

Marine Block (p. 25)

Marine Base (p. 25)

Marine Stone (p. 25)

Seawater exchange-type hybrid caisson

Dam sediment removal,

Dam/river water quality preservation

Protection of soil environment

Supply of energy-saving equipment

Gas engine cogeneration system

Regenerative burners (p. 21)

Clathrate hydrate slurry (CHS)

latent heat air-conditioning system (p. 39)

Creation and popularization of

clean energy

Wind power generation (p. 39)

High-purity silicon for solar cells (p. 38)

DME (dimethyl ether) (p. 47)

Contributing through Environment-friendly Products and Technologies

With heightened awareness of the environment, environmental protec-tion in everyday life and society has progressed in many respects.

The JFE Group supplies environment-friendly Only 1 and No. 1 steel products (steel environmental-friendly products) which reduce environ-mental loads in everyday life and industrial society, and engineering technologies/products which contribute to environment-friendly urban development.

Utilizing its total capabilities, the JFE Group is contributing to the crea-tion of a sustainable society through environmental proteccrea-tion activities which look ahead to coming generations. These include total

environ-mental solutions for environment-friendly urban development, efforts to achieve practical application of DME, which is the leading candidate for next-generation energy, and R&D on other forms of clean energy.

Detailed descriptions of these environment-friendly products and tech-nologies can be found in “Environmental Performance II: Contributing through Environment-friendly Products and Technologies” beginning on p. 33, “Environmental Performance III: Contributing to Environmental Im-provement in Local and International Society” beginning on p. 42, and “Environmental Performance IV: R&D on Environmental Technologies” beginning on p. 49.

Taking advantage of the total capabilities of the JFE Group,

with its core steel manufacturing and engineering technologies,

we supply environment-friendly products and technologies

which support everyday life and society and improve the global environment.

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1965 1970 1975 1980 1985 1990 1995 2000 2005

1965 1970 1975 1980 1985 1990 1995 2000 2005

History of Environmental Measures in the JFE Group

The JFE Group has a long history of responding

to the environmental problems of the times with technology,

based on a clear understanding of the needs of a changing society.

Environmental Protection & Energy-Saving Activities at Works

Supply of Environment-friendly Products, Engineering Technology, Equipment

General Measures

Social Trends

Startup of Matsukawa Geothermal Power Plant ’66

Start of JFE Group (Sept.) ’02

Start of

5 operating companies

(April) ’03

Supply of Environment-friendly Steel Products, Equipment

Supply of Clean, Energy-saving Technologies

Supply of Environmental Protection Equipment

Establishment of energy control regulations ’80

TMCP high strength steel plates ’80

Startup of stoker type waste incinerator

’73 Startup of sewerage sludge methane

fermentation plant ’87

Startup of electric resistance type ash melting furnace

’97

Completion of home electric appliance recycling plant ’01

Startup of environment-friendly high-efficiency arc furnace (ECOARC) ’01

Completion of seawater exchange-type hybrid caisson ’01

Startup of high temperature gasifying & direct melting furnace

’02

Startup of fly ash dioxin removal equipment Hi-Clean DX

’02

Startup of sewerage sludge circulating fluidized bed incinerator

’02 Startup of JFE THERMOSELECT gasifying & melting furnace ’00

Development of Hyper 21 Stoker System ’03

Startup of U-tube ozone contact equipment ’00

Startup of large-scale deep-shaft night soil treatment facility ’91

Startup of in-ground LNG storage tank ’81

Startup of circulating fluidized bed (CFB) boiler turbine power plant

’97

Startup of wind power generation facilities ’98

Tie-up for high efficiency fuel cell power generation (SOFC)

’01 Startup of pilot-scale plant for

high efficiency fuel cell power generation (SOFC) ’03

Startup of BIGADAN process biogas system

’03

Order for JFE-Babcock & Wilcox Volund fixed-bed updraft gasifier for wood chips

’03

Startup of RDF gasifying power generation plant ’03

Order for clathrate hydrate slurry (CHS) latent heat air-conditioning system ’03

Gas engine cogeneration system ’81

Oriented electrical sheets for high efficiency transformers

’92 Rust stabilizer for weathering steel

’83 93Martensitic stainless steel tubes 96Steel-framed House

Start of waste plastic recycling for BF feed ’96

Ni-added high performance weathering steel ’98

Development of Super-OLAC technology for shape steel

’00 Laminated steel sheet for

food cans ’03 Tailor Welded Blank

’01

As-sintered alloy steel powder (heat treatment-free) ’01

High-purity silicon for solar cells ’01

Lead-free free-cutting bars for machine structural use

’01

Start of production of NF Board for concrete forms using recycled resin

’02

Development of Super-OLAC technology for high carbon hot-rolled sheets ’02

“Tsubasa” screw pile ’99

Water-permeable steel sheet piles ’98

BF cement/BF granulated slag ’98

Chromate-free coated steel sheets ’98

Development of Super-OLAC technology for plates (high strength, high toughness, high weldability) ’98

Non-oriented electrical sheets for high efficiency motors ’95

Start of production of stainless clad plates ’86

Fire resistant steel construction products ’91

Heat-treated rails ’91

Establishment of Global Environmental Charter by Keidanren (Japan Business Federation)

’91 Establishment of Voluntary Action Plan

by Japan Iron and Steel Federation ’96

Settlement of Kawasaki pollution suit ’96

Settlement of Kurashiki pollution suit ’96

Establishment of Environmental Charter ’96

ISO14001 certification of Fukuyama Works ’98

ISO14001 certification of Chiba Works ’98

Establishment of

Environment & Energy Liaison Center ’01

ISO14001 certification of Engineering Division ’99

ISO14001 certification of Chita Works ’99

Start of Environmental Management Network System ’03

Establishment of Voluntary Action Plan by Keidanren ’97

ISO14001 certification of Keihin Works ’97

ISO14001 certification of Mizushima (Kurashiki) Works and Utsunomiya Works (LSI plant)

’97 Establishment of Coordinating

Committee for Global Environmental Issues ’91

Settlement of suit concerting Chiba Works No. 6 BF ’92

Establishment of Global Environmental Dept. ’93

Establishment of Guideline and Program Principle for Activities for Global Environmental Protection ’93

Establishment of companywide Environmental Management Committee ’70

Pollution Prevention Agreement with Kanagawa Pref., Kawasaki City, and Yokohama City

’70

Establishment of Environmental Management Dept. ’71

Pollution Prevention Agreement with Hiroshima Pref. and Fukuyama City ’71

Establishment of environmental control regulations ’72

Pollution Prevention Agreement with Okayama Pref. and Kurashiki City ’72

Pollution Prevention Agreement with Chiba Pref. and Chiba City ’74

Implementation of ISO14001 environmental standard ’96

Implementation/revision of 6 laws related to establishment of recycling-based society ’00

Kyoto Conference of the Parties of the United Nations Framework Convention on Climate Change (COP3): Adoption of Kyoto Protocol

’97

Implementation of Soil Contamination Control Law ’02

Implementation of Law concerning the Promotion of the Measures to Cope with Global Warming ’98

Implementation of Law concerning Special Measures against Dioxins ’99

Implementation of PRTR Law ’99

Implementation of Basic Pollution Control Law ’67

United Nations Conference on the Human Environment (Stockholm): Adoption of Stockholm Declaration ’72

First Oil Crisis ’73

Second Oil Crisis ’79

Implementation of Energy Conservation Law ’79

Implementation of Law for Promotion of Effective Utilization of Resources (Recycling Law) ’91

Implementation of Basic Environment Law ’93

Earth Summit in Rio de Janeiro ’92

Adoption of Framework Convention on Climate Change, Agenda 21, and Convention on Biological Diversity ’92

Creation of Environmental Control Section in Head Office Technology Dept. ’67

Energy saving by operational improvements (reduced fuel consumption by reheating furnaces, etc.)

Introduction of large-scale waste heat recovery equipment, power saving measures

Process continuation and integration, energy-saving operation, conversion to low-cost fuels

Energy saving for global warming prevention

1st Period 2nd Period 3rd Period 4th Period

Thorough effort for global warming prevention

5th Period Energy-saving Activities Introduction of regenerative burners ’94

(9)

Environmental Committee Because the JFE Group assigns high priority to

“improvement of the global environment” as a management task, it has established a JFE Envir-onmental Committee as the highest decision-mak-ing body for environment-related problems com-mon to the Group.

JFE is dealing with environment-related prob-lems with a 3-tiered committee system consisting of the JFE Environmental Committee, Environ-mental Committees in each of the Group’s five op-erating companies, and Affiliated Company Envir-onmental Committees at affiliates under each of the operating companies. JFE has also established a Group Environmental Liaison Committee made up of persons responsible for environmental mat-ters at JFE Holdings and the five operating compa-nies to smoothly communicate related to the

envir-onment. In a similar manner, each of the operating companies decides and implements environmental measures for the individual company and holds li-aison meetings with its subsidiaries.

The JFE Environmental Committee is chaired by the President of JFE Holdings, with related Di-rectors of JFE Holdings and DiDi-rectors responsible for environmental matters at the five companies as members. Thus, the decisions of the JFE Group’s top management are reflected in the Group as a whole, enabling JFE to implement unified envir-onmental management.

The JFE Group created an “Environmental Man-agement Network System” on the group’s intranet to facilitate operation of the 3-tiered committee system. The network system has proven useful in improving the level of environmental management in the group as a whole, for example, in communi-cating decision-making items and environment-re-lated information (legal regulations, etc.) affecting the Group, and informing those concerned of risk and trouble and supporting solutions to problems.

Environmental Management System

Affiliated Company Liaison Committee

Members: Persons responsible for environment at each operation company and each affiliated company

JFE Group Environmental Liaison Committee

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

Environmental Committee

Chairman: President of JFE Holdings Members: Directors responsible for

environmental matters at each operating company

Environmental Committee

(Operating Company)

Chairman: Director responsible for environmental matters at the operating company Members: Managers of related departments,

persons responsible for environment at each works, centers

Environmental Committee

(Affiliated Company)

Chairman: Director responsible for environmental matters

Members: Managers of related departments

Environmental Committee

Affiliated Company Environmental Committee

Affiliated Company Environmental Committee

Affiliated Company Environmental Committee JFE Engineering

Environmental Committee JFE Steel Environmental Committee

JFE R&D Environmental Committee

JFE Urban Development Environmental Committee Kawasaki Microelectronics Environmental Committee

Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D

Implementation & Operation of the Environmental Management System (EMS)

IT System Supporting

Environmental Management:

“Environmental Management

Network System”

(10)

Environmental Auditing In order to implement a high-quality

environ-mental management system, it is important to understand whether the system is operating ap-propriately, and whether performance is being continually improved. At JFE, in addition to ex-ternal inspection by certification authorities, em-ployees experienced in environment-related work such as environmental and energy management participate in internal auditing. Also, the training

of in-house environmental inspectors is being promoted. Teams of employees led by external ex-perts carry out internal auditing in JFE in order to ensure transparency in inspection. Issues poin-ted out by internal or external auditing are used as a basis for revising and continuously improving the system, taking into account the changes in the surrounding conditions.

Status of the JFE

Environmental

Management System

Environmental

Auditing

The JFE Group aims at developing a comprehen-sive environmental management system based on its environmental philosophy. As such, it is pro-moting voluntary and continuous environmental activities by each company in the JFE Group based on ISO 14001 certification.

Among the JFE Group’s operating companies, those with production facilities have all received ISO14001 certification, either for individual works or at the company level. These include JFE Steel, JFE Engineering, and Kawasaki Microelectronics.

As shown in the following table, many JFE sub-sidiaries have also received ISO certification. In the

future, the JFE Group intends to increase the number of certified companies and works.

Environmental Management System Certification Certified in Operating Companies

Environmental Management System Certification Certified in Affiliated Companies

Company/Works Certified in

May 1997

Oct. 1997

Oct. 1997

March 1998

July 1998

July 1999

Dec. 1999 1

2

3

4

5

6

7

JFE Steel, East Japan Works (Keihin)

JFE Steel, West Japan Works (Kurashiki)

Kawasaki Microelectronics

JFE Steel, West Japan Works (Fukuyama)

JFE Steel, East Japan Works (Chiba including Nishinomiya plant)

JFE Steel, Chita Works

JFE Engineering

Company Certified in

May 1997

May 1997

May 1997

May 1997

April 1999

July 1999

Dec. 1999

Jan. 2000

Feb. 2000

March 2000

March 2000

Sep. 2000

Dec. 2000

Dec. 2000

Feb. 2001

June 2001

Sep. 2001

Nov. 2001

Dec. 2001

Dec. 2001

May 2002

March 2004 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

JFE STEEL PIPE

JFE GALVANIZING & COATING

JFE URBAN RECYCLE

NKK TUBES

JFE REFRACTORIES

JFE CHEMICAL

JFE KANKYO

JFE MATERIAL

JFE Soldec

JFE CONTAINER

JFE LOGISTICS

TOYOHIRA STEEL

JFE METAL PRODUCTS & ENGINEERING

KAWASHO

JFE Mie Tech. Service

JFE KOKEN

Fuji Kako

Philippine Sinter Corporation

JFE MINERAL

JFE Environmental Services

NKK BARS & SHAPES

(11)

The JFE Group conducts environmental educa-tion 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 edu-cation is incorporated in training programs for new employees and promotion, and also includes an-nual 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 indi-vidual employees, and the importance of environ-mental management.

Based on an annual schedule, each works con-ducts periodical environmental education (once/year) such as environment-related regula-tions for general employees, employees engaged in designated work, internal environmental audi-tors, etc. as part of its environmental manage-ment system.

To strengthen environmental education, JFE in-troduced an Environmental Management Net-work System, creating an electronic environment in which all employees, including those at affiliated companies, can access internal and external envir-onment-related information such as Environment Month Activities.

As part of its environmental management system, the JFE Group voluntarily conducts a unique pro-gram of Environment Month Activities at each works in June of each year to raise employee aware-ness of the environment, as follows.

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. Application is currently being ex-panded to affiliated companies.

Public Road Cleanup Operations

Works Environmental Patrols

Lectures on the environment

Environment Month Activities

Program

• Public Road Cleanup Operations • Lectures on the environment • Works Environmental Patrols

• Facility inspections/chemical inventory check • Environmental Education under ISO14001 • Guided plant tours

• Fund-raising for environmental campaign, etc.

Hybrid car

In outline, the Guidelines specify

Adequate study of required quantities before

pur-chase to minimize purpur-chased 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> • Stationeries, office equipment

• Recycled oil, solvent containers, packaging materials, electric/natural gas/hybrid vehicles

• Introduction of hybrid car Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D

Implementation & Operation of the Environmental Management System (EMS)

Status of

Green Purchasing

Environmental

(12)

Greenbelt at Fukuyama, West Japan Works

Horseshoe crab habitat cleaning activities in Kasaoka Works festival at Fukuyama, West Japan Works

JFE Group

Guided plant tours

Technical reports Periodic

reports

Technical cooperation

Homepage

Eco-products Environmental

Report

Trade shows Dialogue with

local communities

Public relations journals

Suppliers

Customers Research

organizations

Employees

Consumers

Local communities

NPO Media

Trade organizations

Investors

Administrative agencies Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D

Communication with Society

The JFE Group has concluded environmental pro-tection agreements (pollution prevention agree-ments) for air and water quality, noise, waste, etc. with local governments at the prefectural and city levels in areas where it has plants. Some of these agreements apply stricter standards than those in national laws, and some also cover items not re-quired by the national government. The JFE Group enters into such agreements from the view-point of regional environmental protection, and strictly observes their terms in all cases. Under greening agreements with local governments, the JFE Group has created greenbelts in all of its works and is active in maintaining and managing wooded areas. These efforts help preserve the local scenery and have important environmental functions in absorbing CO2 and suppressing dust and noise. Communication with all stakeholders, including local society, investors, customers, and consumers, is important not only for ensuring a deeper un-derstanding of the JFE Group’s environmental protection activities, but also for heightening the awareness of JFE’s managers and employees and deepening understanding between departments, and thus is contributing to increased environ-ment awareness in the JFE Group as a whole. We also believe that the resulting activities will bring us closer to an environmentally-responsible soci-ety. For this reason, the JFE Group considers communication with society to be an important activity for environmental management and is working to improve the quality of its environ-mental communication.

As a good citizen in local society, the JFE Group attaches special importance to direct contact with community residents, conducting public service cleanup activities in the area and holding sports classes and tournaments.

For example, employees of West Japan Works (Fukuyama) participate in annual horseshoe crab habitat cleaning activities in Kasaoka City, Okaya-ma Pref. as part of the works’ “Cleanup Volunteer” program. In FY2003, a total of 155 employees par-ticipated. Employees also participate in annual cleanup activities at the Ashidagawa River in Fu-kuyama City, Hiroshima Pref.

JFE holds annual open-house events at each of its works for the enjoyment of area residents. In FY2003, the company’s various works held a total of 5 festivals, which drew more than 300,000 par-ticipants. In addition to the steelworks’ own festiv-als, employees also actively participate in local fes-tivals and other events.

To encourage better understanding in the sur-rounding community, JFE Steel has also established Visitors’ Centers in its works and opens its plants to tour groups of local elementary and middle school students and the general public. Other programs include opening gymnasium and athletic ground in the works to the people in local communities.

Agreements with

Local Governments

Participation in the

Activities at Local

Communities

(13)

Eco-Products 2003 The JFE Group participates in various exhibitions

on environmental themes to encourage informa-tion exchanges with the widest possible range of people.

At Eco-Products 2003, which attracted more than 100,000 visitors, the JFE Group presented an exhibition called “Contributing to the Environ-ment through JFE’s Only 1 and No. 1 Technolo-gies” to highlight the Group’s environment-friend-ly technologies and products. At the Top Management Seminar held at the same time, the Chairman of JFE Steel was an invited panelist and exchanged opinions on environmental manage-ment. In addition to exhibitions of this type, the JFE Group is actively publicizing its environmental efforts through environment-related lectures and other activities.

The JFE Group actively offers information related to environment through Internet. On the JFE Group web site, its environmental management policy and activities are introduced in the title of “Environmental activities.”

Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D

Exchanges through

Exhibitions

Information though

Internet

Communication with Society

Website of JFE Holdings

(14)

*1) VOS Nippon

Designated nonprofit organization (NPO) which conducts the following nonprofit activities to promote interest in and understanding of the marine environment by collect-ing, analyzcollect-ing, and publishing surface-layer oceano-graphic monitoring data from private commercial ships and investigating surface-layer material circulation and the reproductive mechanisms of resource life forms. (1) Collection, organization, analysis, and publication of

oceanographic surface-layer monitoring data (2) Development of automatic continuous oceanographic

monitoring devices

(3) Recruitment of volunteer monitoring ships to partici-pate in monitoring activities

(4) Education, popularization, and publicity activities rela-ted to the marine environment

(5) Other activities necessary for achieving the organiza-tion's purposes

*2) Voluntary Oceanographic Monitoring Activities Activities involving monitoring of the temperature, salini-ty, etc. of oceans with monitoring devices mounted on private commercial ships and use of results in verifica-tion/elucidation of the actual condition of global warm-ing, mechanism of climate change, etc.

The JFE 21st Century Foundation http://www.jfe-21st-cf.or.jp

Oceangoing vessel M/V Sun Frontier

An introduction of Iron and Steel Processing

http://www.jfe-21st-cf.or.jp/index2.html

Support and Funding

Activities of JFE 21st

Century Foundation

Participation in Kanagawa

Riverhead Forest

Partnership

Cooperation with NPO

in Oceanographic Survey

The JFE 21st Century Foundation was established in 1990 to “further promote coexistence and shared prosperity with society in order to achieve a presence which is open to society.” Over the 13 years since establishment, the Foundation has car-ried out survey/research contributing to the crea-tive development of the steel industry and related industries, support for technical research, and pro-jects which contribute to regional development/in-ternational exchanges related to the steel industry with the aim of “promoting the 21st century iron and steel industry and contributing to an affluent life culture.”

Support for technical research at universities is considered the Foundation’s most important activi-ty. Beginning in FY2003, the JFE 21st Century Foundation began providing support for technical research on the environment as a new field in

addi-tion to technical research on steel, and increased total support for technical research to 25 projects with a total budget of ¥50 million. As one indica-tion of its high reputaindica-tion in the academic com-munity, the Foundation received 226 applications. Grants for environmental research included 3 pro-jects in air purification, 2 in water purification, 2 in CO2 reduction, and 1 for recovery of scarce metals from waste, for a total of 8 environment-lated projects. Of the 17 grants for steel-reenvironment-lated re-search, 5 were for environmental protection and purification. Thus, of the 25 grants awarded in FY2003, 13 were for environment-related topics.

Because the Japanese steel industry has been the world’s leader in environmental protection and en-ergy saving, in FY1994, the Foundation published “An Introduction to Iron and Steel Processing” to assist in environmental protection and purification efforts worldwide, and by FY1997, had donated these materials to 46 universities in Japan and 79 universities overseas. These materials can be ac-cessed at the Foundation’s homepage.

In order to pass riverhead forest areas on to future generations, Kanagawa Prefecture is purchasing poorly-maintained private forests for management and cultivation as prefectural forests. These activi-ties are supported by the “Kanagawa Riverhead Forest Partner” system.

As a water consumer in the Keihin area, East Ja-pan Works of JFE Steel understands the impor-tance of healthy water circulation between water sources and urban areas, and is therefore participat-ing in Kanagawa Prefecture’s Kanagawa Forest Conservation Program for Water Resource Regions as a Riverhead Forest Partner since 1999, contri-buting to the creation of riverhead forests.

Together with JFE LOGISTICS, JFE Steel is co-operating with the NPO (nonprofit organization) VOS Nippon*1 in a Voluntary Oceanographic

Monitoring Activities*2 by installing automatic

(15)

Results in FY2003 Aims of JFE Group Objectives

(1) Expansion of environ-mental management

(2) Communication with society

(3) International cooperation

(4) Environmental accounting

(1) Prevention of global warming

(2) Promotion of recycling

(3) Promotion of envir-onmental protection

(1) Environment-conscious R&D

(2) Eco-products

(3) Total solutions for the environment

Strengthening of systems and improvement in level of environmental management

• ISO14001 certificationJFE KOHNAN STEEL CENTER CO., LTD.

• JFE Environmental Committee and environment-related committees in operating companies • Study of condition of environmental management in affiliated companies

Expansion of green procurement in Group

as whole • Expansion of guidelines to affiliated companies (in progress)

Contribution to global warming counter-measures under Kyoto Mechanism (joint implementation, CDM, etc.)

• Receiving of trainees from Environmental Agency in Shenyang, China

• Completion of energy conservation model project of NEDO for waste heat recovery from WTE plant in Malaysia

Development of innovative technologies to solve global environmental problems

• Development of high efficiency natural gas hydrate production technology

• Development and commercialization of JFE Gas Clean DX (compact dioxin removal equipment in flue gas) • Development of Hyper 21 Stoker System

Contribution to Eco-Town and recycling-oriented society

• Start of fluorescent lamp recycling plant • Start of RDF gasifying power generation plant

• Start of food waste recycling business (BIGADAN biomass system) Reduction of environmental loads in society

by expanded use of high performance steel products

• Increased sales of high performance chromate-free coated steel sheet • Development of high tensile strength steel sheet for ultra-light weight auto body • Development of laminated steel sheet for food cans

• Expanded application of heat island mitigating paving material • Sales of slow-release potassium silicate fertilizer

• Increased production of high-purity silicon for solar cells

Development of clean energy sources anticipating next-generation needs

• Start of 100t/day DME direct synthesis plant operation

• Development of DME fueled diesel engine power generation system • Cumulative wind power capacity reached 91,850kW(end of March 2004) • Start of high efficiency fuel cell power generation (SOFC)

• Start of biomass power generation

• Start of Clathrate Hydrate Slurry Latent Heat Air-conditioning System Communications with overseas

organizations, etc.

• Presentation of environmental measures and examples of Japan’s Eco-Town projects in China (CCICED) • Presentation at International Symposium on Waste Treatment

Measures for preventing global warming referring to Voluntary Action Plan by Japan Iron and Steel Federation

• Achieved 3% reduction in energy unit consumption in FY2003 from 2002 • Achieved 0.6% reduction in energy consumption in FY2003 from 2002 • Achieved 1.7% reduction in CO2 emission in FY2003 from 2002

Recycling of byproducts (waste) generated by society

• Increased receiving of waste plastic as blast furnace feed • Received 534,000 used appliances for recycling

Contribution to society by multi-faceted environmental engineering activities

• Completion of RDF power generating plant

• Providing the design and manufacturing technology of stoker furnace to a Chinese company Qualitative measurement and evaluation of

environmental activities

• Education and Publication of environmental accounting

Increase recycling ratio of byproducts of manufacturing processes

• Recycling ratio dropped to 99.3% in FY2003 from 99.5% in 2002. Continuous R&D activities for better recycling ratio

Reduced use and improved control of PRTR substances

• Reporting of releases/transfers in FY2003 to government and disclosure in Environmental Report

Dioxin countermeasures • Measures to strengthen flue-gas treatment equipment at sintering plants

80% reduction in benzene by FY 2003 against 1999 baseline

• Achieved 74% reduction in benzene emissions against 1999 baseline Continuous efforts for achieving target by additional countermeasures in FY2004

Reduced environmental loads by more efficient product distribution

• Shortened transportation distance and increased transportation lot size

LCA-based product development • Development marine remediation material (Marine Block, Marine Base, Marine Stone) and promotion of Sea Purification Project

Strengthening of communication • Disclosure of environmental information by Environmental Report and homepage • Timely information by company and works magazines

• Participation in eco-product and waste technology trade shows • Research support by JFE 21st Century Foundation

• Contribution to Kanagawa Prefecture’s Kanagawa Forest Conservation Program for Water Resource Regions program by participating as Riverhead Forest Partner

Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development aJFE R&D

Objectives and Results for Global Environmental Activities

Environmental management and communication

1

Reduction of environment loads in all business activities

2

Contribution through technologies, products, and services

(16)

To reduce the environmental loads associated with its production activities, JFE Steel has actively in-vested in energy saving and environmental protec-tion equipment based on the results of technical development.

As energy conservation measures, it developed

or introduced a wide variety of waste heat recovery equipment and invested heavily in energy-saving production processes such as continuous casting and continuous annealing. Cumulative investment since 1990 has now reached approximately ¥339 billion. Today, JFE Steel is maintaining its position as a world leader in energy efficiency.

JFE Steel has made particularly strong efforts to protect the environment, including construction

of desulfurization and denitrification plants as measures against SOx and NOx in the atmosphe-ric environment and water treatment facilities to reduce COD and prevent water pollution. As a re-sult of companywide investment in environment-related equipment, which totals approximately ¥477 billion since 1973, JFE’s clean steelworks boast the world’s highest levels of environmental performance.

Investment in environment-related facilities was ¥14.9 billion in FY2003, which accounted for ap-proximately 15% of total capital investment for the year. Expenses were ¥68.9 billion. The primary

focus of investment was environmental protection and prevention of global warming. Primary expen-ses were environmental protection, effective use of resources, and prevention of global warming. Op-eration/maintenance and depreciation accounted for the majority of these expenses. Environment-related research and development expenses were ¥4

billion, or approximately 13% of total research and development expenses.

In FY2003, JFE Steel achieved a recycling rate of more than 99%. Energy-saving benefits were equivalent to ¥2.8 billion.

Cumulative investment in energy-saving

(FY)

’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 500

400

300

200

100

0

(billions of yen)

500

400

300

200

100

0

(billions of yen)

Cumulative investment in environmental measures

The totals mentioned above were calculated on the following basis.

Period: April 2003 to March 2004

Scope: Environment-related investment and expenses at JFE's steelworks, but in the case of research and development, on a companywide basis (JFE Steel and JFE Engineering).

*Calculations do not include investments made primarily for purposes other than environmental protection, for example, renovation of superannuated facilities, even when the process as a whole realizes a net energy saving in comparison with the former process.

**Calculations include only actual effects, excluding presumed effects based on estimates or risk avoidance benefits.

Major item Investment Expenses

Environmental conservation cost

Environmental investment & expenses related to JFE’s own business

Environmental investment & expenses related to customers and society

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 & wastes generated in-house, waste management, etc.

Prevention of air pollution, water pollution, soil contamination, noise, vibration, ground subsidence, etc.

Fees/charges for SOx, etc.

Technological development for the environment, energy, prevention of global warming

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

Management

Prevention of global warming

Effective use of resources

Environmental protection

Miscellaneous

Research & development

Social activities

9.4

0.4

5.1

14.9

1.2

13.8

16.7

30.7

1.8

4

0.7

68.9 Total

(FY)

’73 ’75 ’80 ’85 ’90 ’95 ’96 ’97’98’99 ’00 ’01 ’02’03

(billions of yen)

Environmental Management System

JFE Holdings

JFE Steel JFE Engineering Kawasaki Microelectronics JFE Urban Development JFE R&D

Environmental Accounting

Transition of Capital

Investment

(17)

Efforts at JFE Steel

Preventing Global Warming

Reducing Generation/Discharge of Byproducts

Preserving Environmental Quality/Reducing Releases of Harmful Chemicals Preserving the Environment through Innovative Transportation

Efforts at JFE Engineering Efforts at Kawasaki Microelectronics

20

23

26

28

29

31

Reducing Environmental Loads

in Production Activities

Using the World’s Most Advanced Environmental Load Reduction Technologies

参照

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