Minolta Environmental Report 2001

Transcription

1 Minolta Environmental Report 2001 The essentials of imaging

2 Company Profile consolidated base Head office 3-13 Azuchi-machi 2-chome, Chuo-ku,Osaka , Japan Tel: (81) Established November 1928 Paid-in Capital 25.8 billion (as of March 31, 2001) Major businesses Manufacture, sales and service of image information product, optical product, digital photography products, optical systems, radiometric instruments, planetariums, other. Change of organization scale Minolta affiliate MYG Disk Corporation acquired glass substrate business of Mitsui Mining & Smelting Precision Co., Ltd. (November 2000). MINOLTA-QMS, Inc. became a wholly owned subsidiary (November 2000). Formed a joint venture company for polymer toner manufacturing Konica-Minolta Supplies, Ltd., together with Konica Corp. (December 2000) Net sales (Unit: 100M) 6000 Non-consolidated Consolidated Recurring income (Unit: 100M) 200 Non-consolidated Consolidated Company Profile Sales breakdown by geographic region in fiscal 2000 Domestic other 1% Domestic optical product 7% Domestic image information product 13% Overseas other 2% North America 28 Number of employees (unit: people) Non-consolidated Consolidated Other 2% Europe 6% Overseas optical product 14 North America billion Misc 9 Europe 26 Overseas image information product Editorial policy Scope of application The scope of application of this report includes Minolta Co., Ltd., our 11 domestic affiliates, and our 9 overseas affiliates. For details, see the overview of facilities and affiliates on page 30. Applicable fields / devised points Applicable fields are environmental management, products, facilities and communication. A related page is added to the table indicating achievement of annual targets. Details concerning facilities are on our Web site. Applicable term The report covers achievements of fiscal 2000 (April 1, 2000 to March 31, 2001) and future outlook (some overseas affiliates, January 1 to December 31, 2000). Reference guidelines The report was prepared in accordance with "Environmental Report Guidelines (2000 version)" issued by the Ministry of the Environment in February 2001, and "GRI Guidelines" issued by GRI in June Additional items to this year's version Topics for fiscal 2000 Activities to reduce in use of specified chemical substances contained in products Activities to reduce energy consumed by distribution Activities concerning manuals packaged with products Products that contribute to the environment Opinions concerning our environmental preservation activities Next scheduled publications August 2002 (each year in August)

3 Message from the President We, Minolta Co., Ltd., have been progressively globalizing our operations since very early in our history. We began exporting our products from Japan in the 1950s. In 1973, we initiated overseas production, rapidly developing a global system for our business. This testifies to our belief that a globally harmonized approach to environmental preservation is equal in importance to maintaining close contact with local communities on this issue. Demonstrating our commitment in this area, we adopted the Minolta Environmental Charter in 1992 and have since systematically promoted and implemented the principles of the charter companywide. In April 1999, we introduced the Minolta Medium-Term Environmental Plan, which embodies a number of important policies focused on the environment. In the spring of 2001, in response to changing circumstances, we adopted the Revised Medium-Term Environmental Plan, which further strengthens the activities of the Minolta Group. This is just further evidence of our accelerated movements in this area. One of our major achievements in fiscal 2000 was the full-scale introduction of our green procurement policy, through which we give priority to the purchase of environmentally conscious materials. This policy is required in order to reduce the environmental load throughout the company. This policy has been applied to all our corporate activities and products, and extends even to our suppliers. Since implementing this policy, we have succeeded in obtaining the cooperation of about 400 suppliers of image information products. As well, we have begun applying this policy to the procurement of some 22,000 parts and materials. During fiscal 2001, we expanded the scope of the policy to encompass all products manufactured by Minolta Group companies worldwide. In fiscal 2000, in an effort to enhance Minolta's environmental management system, we achieved our objective of obtaining certification of ISO compliance at all facilities of the parent company in Japan. In addition, as introduced in this environmental report, we have been working to implement several initiatives, such as recycling our products; publicizing environmental labeling; achieving zero waste disposal; and promoting good communication with society. We intend to pursue this initiative with even greater commitment. We plan to issue the Minolta Environmental Report regularly in the future. As we go forward, we will remain committed to dayto-day efforts to reduce Minolta's environmental load. This objective has become a key focus of all group employees, not only in the provision of products and services, but in every aspect of our corporate operations, and represents an important part of our contribution to society. 2 Message from the President President & Representative Director June 2001 Yoshikatsu Ota

4 Minolta's Social Contribution through Environmental Preservation Contents 3 Minolta's Social Contribution through Environmental Preservation Company Profile Message from the President Minolta's Social Contribution through Environmental Preservation Topics 2000 Environmental Principles and Advancement System Medium-TermEnvironmental Plan and its Progress Environmental Management Initiatives Environmental Accounting Environmental Management System Environmental Education Environmental Risk Management Green Procurement and Green Purchasing Product-Related Initiatives Use of Recyclable Resources Reduction of Specified Chemical Substances Energy Savings Product Assessment Environmental Technology Development Environmental Labeling Products that Contribute to the Environment Facility-Related Initiatives Reduction of Waste Chemicals Management Energy Savings Waste disposal issues Recycling / waste disposal We have constructed a system of recovering used copiers, toner cartridges and toner bottles. We have had success in recycling the used products. Global warming Products Business Activities Environmental Management Communication Communication Information Disclosure Cooperating with Communities Overview of Facilities and Affiliates 30

5 Minolta's Social Contribution through Environmental Preservation The Minolta Group intents to realize a harmonious coexistence with society through communication. Based on environmental management promoted by the entire group, Minolta is working to reduce impact of our products and business activities on the environment at all stages of the product life cycle. In order to reduce the impact on the environment at all stages of the product life cycle, we conduct research of environment preservation technologies and environment-conscious products, and carry out product assessment. Minolta is actively involved in reducing the impact of manufacturing on the environment from the three aspects of reduction of waste, reduction in use of specified chemical substances used in products, and energy conservation. Ozone layer depletion Soil pollution Research & Development Water pollution Manufacturing Distribution Resource depletion 4 Product use Noise and vibration Along with providing energysaving, resource-conserving products, we disclose product information concerning environmental impact to the public. Air pollution Minolta is improving our distribution system to reduce the amount of energy needed for distribution. We are also attempting to conserve resources by minimizing the amount of packaging used for products. Minolta's Social Contribution through Environmental Preservation

6 Topics 2000 Main efforts in environmental preservation for the year Topics for fiscal 2000 Acquisition of ISO14001 certification for all Minolta facilities As a result of constructing an environmental management system at all our domestic facilities, Minolta has completed acquisition of ISO certification for all our facilities including R&D and administrative facilities in fiscal (For details, see page 13. For date of acquisition, see page 30.) Full-scale introduction of green procurement Minolta began to introduce green procurement system in December to preferentially purchase environmentconscious parts and materials used in our products. (For details, see page 15.) 5 Topics 2000 Achieved zero waste discharge at 7 Minolta Group facilities Zero waste discharge was achieved at 7 Minolta Group facilities including Mizuho and Itami plants. The Itami Plant was the first optical glass manufacturing plant in Japan to achieve this. (For details, see page 23.) Type III environmental label revealed to the public The Type III environmental label to disclose environment-related information has been made public for 5 copier models. (For details, see page 22.) Use of specified chemicals banned As a result of our company-wide efforts to eliminate use of specified chemicals, those chemicals have been totally eliminated from the manufacturing and experimental process at Minolta facilities. (For details, see page 25.) (tons) 70 Total volume handled Use of specified chemicals Completely eliminated January (fiscal year) Tetrachloroethylene Dichloromethane HCFC PFC Consecutive awards for environmental technology Minolta received the Chairman's Award of the Energy Conservation Center Japan for our energy-efficient use of discharged heat. We also received the Environmental Technology Award of the Kinki Chemical Society Japan for development of water swelling layer reusable media. (For details, see pages 21 and 27.)

7 Topics 2000 In the fiscal year 2000, the Minolta Group promoted environmental preservation activities in the various areas of our business activities. The main results of doing so are as follows. Minolta Fiscal 2000 Environmental Preservation Calendar Achieve zero waste discharge at Toyokawa Administrative Center, Miki Minolta Industries Co., Ltd., Aoi Camera Co., Ltd., Sakai Operations and the Technical Center. ISO certification acquired by Wuhan Minolta Office Automation Equipments Co., Ltd.(China). ISO certification acquired by all Minolta facilities. Environmental Technology Award of the Kinki Chemical Society Japan received for development of water swelling layer reusable media. Itami Plant receives Chairman's Award at National Energy Savings Presentation sponsored by the Energy Conservation Center Japan. Use of specified chemicals banned at Minolta facilities. Nordic Swan environmental label acquired for two copier models. 2 FEB 3 MAR Full-scale introduction of green procurement. Exhibition at Eco Products 2000 (Tokyo Big Site). 12 DEC 1 JAN 2001 Itami Plant receives Excellence Award at National Energy Savings Presentation sponsored by the Energy Savings Center. Mizuho Plant receives Japan Green Research and Development Center Chairman's Incentive Award at 19th Convention for Promotion of Greener Factories. 10 OCT 11 NOV 6 Topics 2000 Mizuho and Itami Plants achieve zero waste discharge status. 9 SEP 8 AUG 7 JUL 6 JUN Minolta Environmental Report 2000 issued. Type III environmental label made public. 5 MAY Eco-Mark acquired for 2 series of copiers (subsequently acquired for 15 series). Sayama Operations begins conducting group company water analysis and issuing measurement certificates. 4 APR 2000 New structure of promoting environmental activities launched.

8 Environmental Principles and Advancement System Contribute to the global community by creating ever greater value and excellence Continuously renew our vision and realize steady growth Work together to build a vital organization that provides opportunities for individual fulfillment (extract) We shall be aware of the seriousness of global environmental problems and continually take autonomous and proactive measures to protect the environment. Instituted February 1992 / revised March 1996 Applying the Principles of Minolta's corporate mission in the field of environmental preservation to supply goods and services that contribute to building a moreaffluent society while reducing burdens on the natural environment, helping preserve this environment, and supporting the creation of healthy and appealing living environments. 7 Environmental Principles and Advancement System Special emphasis on expeditiously promoting 1)The consistent implementation of environmental preservation programs throughout the Minolta Group 2)Reductions in resource and energy consumption and waste generation at all levels of the Group's operations 3)The development of environment-conscious products 4)The development of technologies for environmental preservation 5)Education programs that encourage environment-conscious lifestyles 6)Further improvement in its environmental management organizational framework and implementation modes for environmental preservation programs that are economical, effective, and sustainable (1)Development Creating technologies to minimize the environmental impact of R & D, design, and manufacturing processes and of product distribution, use, and disposal (2)Manufacturing Developing technologies to minimize the volume of factory waste products, effectively processing and recycling unavoidable waste products, and promoting the conservation of energy and resources (3)Distribution Developing packaging and distribution methods that minimize the environmental impact of distribution operations and systems for recovering and recycling materials used in the crating and packaging of products (4)Government Cooperation Cooperation with government environmental preservation programs and programs aimed at preserving local environments and, when necessary, establishing and maintaining the Company's own environmental preservation standards (5)Overseas Activities Surveying overseas regulations, government programs, and environmental conditions, and making appropriate responses (6)Consumption Reducing the consumption of energy and resources as well as facilitating waste management and recycling throughout all Minolta Group activities (7)Employee Education Creating programs and publications that foster employee awareness of environmental issues and promote initiatives in accordance with Minolta's environmental policies both in and outside the workplace

9 Environmental Principles and Advancement System Minolta enacted the Minolta Environmental Charter in 1992 consisting fundamental goals, action policies and its emphases. The entire Minolta Group recognizes that preservation of the environment as our social responsibility and has taken action. To strengthen the role and functions in fiscal 2000 in an organized manner, we have settled upon an environmental preservation structure based on regular organization rather than the committee system. Minolta's Environmental Preservation Advancement System Principal Functions Relevant Divisions Affiliated Companies President Executive Officer Committee Quality & Ecology Division (Overall responsibility for promoting environmental preservation activities throughout the Minolta Group) Institution of the Minolta Medium-Term Environmental Plan Auditing environmental management system Enactment and strict observance of internal environmental standards Strict observance of environmental laws and regulations Comprehensive disclosure of environmental information Management Promotion Planning, proposal drafting, implementation and promotion of environmentalpreservation activities Implementation of environmental audits Marketing Affiliates 8 Product Promotion Promotion of environmentconscious products Facility Promotion Promotionof facilities'environmental management systems Guidance of affiliated companies' environmental preservation programs Individual Business Fields Creation, implementation, and promotion of business development programs based on Companywide policies Individual Facilities Creation, implementation, and promotion of environmentconscious facility programs based on Companywide policies Manufacturing Affiliates Environmental Principles and Advancement System Overview of Environmental Activities 1990 Environmental Policy Committee established First time environmental label acquired by a Minolta copier (Germany). Minolta Environmental Charter enacted Trichloroethane and specified CFCs banned by Minolta Group Eliminated use of polystyrene foam as shock-absorbing material to package all camera products Environmental Board established (reorganized from Environmental Policy Committee). Environmental Preservation Action Policies enacted. Minolta acquired our first ISO certification Environmental Report issued (English, Japanese) Medium-Term Environmental Plan enacted (fiscal ). Environmental accounting introduced. ISO certification acquired by all domestic manufacturing facilities. Product assessment guidelines enacted.

10 Medium-Term Environmental Plan and its Progress Activity Medium-Term Environmental Plan (fiscal ). Environmental Preservation Target Environmental accounting Introduction of environmental accounting (fiscal 2000) Disclosure of fiscal 1999 results Environmental Management Environmental management system Environmental education Green procurement Green purchasing ISO certification acquired by major domestic/overseas manufacturing facilities and affiliates (end of fiscal 1999) Construction of education/enlightenment system Introduction of environmental awards Investigation of green procurement introduction method (end of fiscal 2000) Expansion of green purchase of office supplies (fiscal 2002) All Minolta facilities: Min. 90% Domestic affiliates: Min. 70% Scope expanded to domestic group from fiscal 2000 Expansion of targets for acquisition of certification Construction of environmental education/enlightenment system Establish green procurement policy; construction of management system Use of recyclable Minimum recycling rate of 95% for recovered copiers, printers and Minimum 95% resource recycling rate for copiers resources cartridges (end of fiscal 2002) Investigation of system for recovering and recycling printers 9 Medium-Term Environmental Plan and its Progress Products Reduction of specified Reduction in use of brominated fire retardants (except for PBB/PBDE) Establish reduction plan and heavy metals Optical lens to be minimum 90% free of lead and arsenic chemical substances Optical lens to be minimum 90% free of lead and arsenic (fiscal 2000) Ban on manufacturing of market maintenance selenium Ban on manufacturing of market maintenance selenium photoconductors (end of fiscal 2000) photoconductors Energy savings Product assessment Environmental technology development Application of international Energy Star program standards for OA equipment Systematic preparation and introduction of design stage product assessment system Application of international Energy Star Program standards for OA equipment Preparation and revision of product assessment standards for all business fields Environmental labeling Environmental label (Type III) standards take into effect (end of fiscal 2001) Disclosure of Type III environmental label for copiers Reduction of waste Reduction rate of amount of treatment of industrial waste produced at manufacturing and R&D facilities (end of 2003) Manufacturing/R&D facilities: 70% (compared to fiscal 1996) Domestic manufacturing affiliates: 50% (compared to fiscal 1998) Achievement of zero waste discharge at model facilities (end of December 2000) Manufacturing/R&D facilities reduction rate: 40% (compared to fiscal 1996) Model facilities achievement period: September 2000 Expansion of number of facilities producing zero waste discharge Facilities Chemicals management Ban on usage of substances that contribute to depletion of the ozone layer, global warming and contamination of soil and ground water Manufacturing/R&D facilities: End of December 2000 Domestic manufacturing affiliates: End of fiscal 2002 Ban on use in manufacturing and experimental processes at all Minolta facilities Establish ban/reduction plan at domestic affiliates Start in operation of chemicals management system Start in operation of chemicals management system at Manufacturing/R&D facilities: Fiscal 2000 manufacturing/r&d facilities Energy savings Domestic/overseas manufacturing affiliates: Fiscal 2001 Energy consumption maintained to 1997 level Construction of system at domestic manufacturing affiliates Energy consumption maintained to fiscal 1997 level (each year up to fiscal 2003) Communication Information disclosure Cooperating with communities Regular publication of environmental report Publication of Environmental Report 2000

11 Medium-Term Environmental Plan and its Progress Under the Minolta Environmental Charter, a Medium-Term Environmental Plan has been established for each of four activity fields. Based on this, the annual plan is established to achieve the targets of the medium-term plan and check on progress. The Medium-Term Environmental Plan was reviewed in fiscal 2000, and the entire Minolta Group has further intensified our environmental activities. Activities Plan for Fiscal 2000 Achievement Status Public disclosure (June) Related Page 11 Revised Medium-Term Plan (major point) (Fiscal ) Scope of application expanded to entire group Expansion for specified activities only Acquisition of certification by all Minolta facilities (March 2001) 13 ISO certification acquired by Japan/US/EU marketing affiliate Acquisition of certification by Wuhan Minolta (China) (March 2001) Study of education/enlightenment system 13 (end of fiscal 2002) Construction of structure and scope of application expanded to Start to survey 22,000 parts and materials for image information 15 entire group 100% green procurement rate achieved by entire group (fiscal 2003) product at 400 companies All Minolta facilities: 72% 16 Improvement of green purchase ratio Domestic affiliates: System introduction under consideration Domestic group: Min. 90% (fiscal 2002) Minimum 99% resource recycling for recovered copiers 100% resource recycling for recovered toner bottles and cartridges Complete Improvement of resource recycling rate and recycle method of recovered products (fiscal 2003) Draw up and take into effect resource recycling plan that matches regional characteristics overseas Ban on lead, mercury and hexavalent chromium (end of fiscal 2003) 91% free of lead and arsenic Establishment of periods to ban or reduce other specified chemical Complete ban on manufacturing achieved Applied for 25 models including color copier CF substances OA equipment: Apply to concerned energy saving standards 10 Introduced and enforced at all fields Environmental data disclosed for 5 models Manufacturing/R&D facilities reduction rate: 79% Domestic manufacturing affiliates reduction rate: 59% Energy savings for equipment other than OA equipment Management of environmental impact based on product assessment and strict enforcement Continuation and expansion of development of technologies to reduce resource and energy consumption Information disclosure by environmental labels suited to product Total waste discharge reduced by 20% in comparison to fiscal 1999 level for entire domestic group (fiscal 2003) Medium-Term Environmental Plan and its Progress Achieved at Mizuho Plant (September) Achieved at Itami Plant (September), Sakai Operations, Technical Center, Toyokawa Administrative Center, Miki Minolta Industries Co., Ltd., Aoi Camera Co., Ltd. (March 2001) Use banned at all Minolta facilities (January 2001) Plan established Achievement of zero waste discharge for all domestic group facilities (fiscal 2002) Ban on use for entire group (June 2002) Start in operation at manufacturing/r&d facilities and domestic manufacturing affiliates 26 Start in operation for entire group (fiscal 2002) 15% increase 27 CO2 emission maintained to 1997 level for entire group (fiscal 2003) Published (June) 28 Sustained information disclosure using proper media 29 Carry out social contribution activities concerning the environment Targets overwhelmingly exceeded Target more or less achieved Target clearly not achieved

12 Environmental Management Initiatives In order to carry out environmental preservation activities efficiently, Minolta specifies top priority to issues such as introduction of environmental accounting and green procurement and expanding scope of ISO certification. Enviromental Accounting Minolta has introduced an environmental accounting system to measure the capital investment, expense and results of our environmental preservation activities, and carry out effective and sustained environmental activities. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Introduction of environmental accounting Disclosed fiscal 1999 results ahead of time. Expanded scope of application for certain beginning in fiscal activities from fiscal Environmental Accounting Philosophy Behind of Environmental Accounting Based on guidelines published by the Environment Agency (currently Ministry of the Environment) in May 2000, environmental accounting for fiscal 2000 was applied to 14 Minolta domestic facilities. Along with enhancing precision of calculations, environmental accounting for fiscal 2000 compares environmental preservation cost and performance with the fiscal In the future, the system will introduce a indicators such as environmental efficiency (percentage of environmental impact reduced in environmental preservation cost). Along with aiming for more efficient environmental preservation activities, we will deal with converting effect into monetary figures. Environmental Preservation Cost Environmental accounting sorts environmental preservation cost into positive investment that can be recovered in the future (prior investment), outlay for existing management and sustainable improvement (management improvement), and negative outlay such as cleaning up previously produced pollution (damage restoration). Approximately half of the money invested in environmental preservation were used for damage restoration, and over two-thirds of the environmental preservation expense were used for management improvement. As a results of investment in cleaning up environmental pollution taking a break, by completing initial investment in a chemical substance management system and assembly and cleaning lines of used products, investment decreased to approximately 100 million. Consequently, investment in environmental equipment accounted for 1.1% of total equipment investment ( 11.3 billion). Expense increased to approximately 2.2 billion due to acquisition of ISO certification for domestic facilities and an increase in the amount of used products recovered. Labor expense accounted for approximately 50% of the total expense ( 1.1 billion). Because there was a large increase in expense of acquiring ISO certification, the figure is expected to decrease after fiscal The percentage of environmental R&D expense in the total R&D expense ( 26.1 billion) increase to 2.8% due to involvement with new research of environmental technologies. Concerning prior investment in reinforcement of the management base and development of advanced technologies, Minolta ties those efforts into concrete results such as intensification of environmental activities and development of next generation energy-saving products, and therefore plans to continue to systematically invest in those efforts. Concerning management improvement, we intend to work on making environmental activities more efficient. Percentage of environmental preservation cost 44 Classification of environmental preservation cost according to outlay (expense) Prior investment Management improvement Damage restoration Unit: 1M Total integration / management base reinforcement Investment 26 Development of advanced technologies and products 30 Prior investment Management improvement Damage restoration Starting environmental businesses Acquisition/maintenance of ISO certification Environmental adaptation of existing products 7 Recovery and recycling of used products 69 Expense Facilities environment improvement 24 Information disclosure Environmental pollution restoration

13 Environmental Management Initiatives Environmental Performance As a result of achieving zero waste facilities, banning use of specified chemicals and conserving energy at our facilities, amount of CO2, waste and chemicals subject to PRTR discharged, and amount of water used have decreased in comparison with the previous year. (For details, see pp ) As for recovery and recycling of used products, we are involved in recycling copiers and reusing cartridges and toner bottles. At R&D stages, we have used recyclable materials, have reduced the amount of specified chemicals used in our products, have designed our copiers with less power consumption, and have developed environmental technologies. (For details, see pp ) Economic Effects of Environmental Preservation Activities The economic effects of environmental preservation activities in product recycling and reuse took shape as a reduction in cost of purchasing parts and sales profits obtained by products recovered from the market. The expense of energy and treating facility waste increased over fiscal 1999 due to improving recycling method and an increase in manufacturing of toner and hard disk boards. Environmental accounting for fiscal 2000 Scope: Minolta Co., Ltd. Effective period: April 1, 2000 to March 31, Environmental preservation cost Item 1. Cost within business area 2. Upstream/downstream cost 3. Management activities cost 4. R&D cost 5. Social activities cost 6. Environmental damage cost Total 2. Environmental performance Item 1. Effect within business area 2. Upstream/downstream effect 3. R&D effect Investment Expense Description (compared with previous fiscal year) (compared with previous fiscal year) CO2 emission Environmental impact factor PRTR chemicals discharge Waste discharge Water usage Recycle from used products Reuse from used products Recycled material used in products , Unit: 1M Reduction of amount of waste treatment, use of specified chemicals banned/reduced, energy consumption suppressed in facilities Introduction of green procurement, use of recyclable resources (recovery and recycling of used products), compliance with law concerning packaging recycling Construction/maintenance of environmental management system, environmental education, reinforcement of our environmental management base Development of environmental technologies, environment-conscious design for existing products Information disclosure through environmental report, Web site and environmental exhibitions, local cleaning Survey and restoration of damage caused by past business activities Unit: tons Total environmental impact Change in comparison Fiscal 2000 Fiscal 1999 with fiscal ,111 26, , ,752 12, ,917 1,712 2, Environmental Accounting 3. Economic effects of environmental preservation activities Item Decrease in cost of parts due to recycling of products, etc. Profit obtained by selling facility waste Cost of treating facility waste Cost of energy consumption Decrease in cost due to reuse of used test paper (deemed effect) Amount Fiscal 2000 Fiscal ,046 1, Unit: 1M Change in comparison with fiscal

14 Environmental Management System Minolta is working to expand the scope of ISO certification and continuously improve the environmental management system. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Acquired ISO certification at major Expanded scope of application and acquired manufacturing facilities both domestic and certification at all Minolta facilities. overseas by the end of fiscal Acquired certification at Wuhan Minolta (China). Acquisition of ISO certification The Minolta Group acquired ISO certification at all of our domestic manufacturing facilities by the end of fiscal In fiscal 2000, along with starting to acquire certification at new domestic manufacturing affiliates, Minolta conducted activities to acquire certification at our R&D and administration facilities as well, acquiring seven certifications. Minolta has now acquired certification at all of our facilities. Minolta Group is scheduled to acquire certification at our main marketing affiliates both domestic and overseas. The Minolta Sales Group (Japan), Minolta Corporation (US) and Minolta Europe GmbH (Germany) are preparing to construct an environmental management system. Environmental Education It is important for each employee to be aware of the environment in order for environmental preservation activities to take shape. Minolta is enhancing employee's awareness of the environment primarily by education in accordance with ISO system. 13 Environmental Management System/Environmental Education Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Along with constructing a system of education Continuance under consideration. and enlightenment, an environmental award system to be introduced. Environmental Education Minolta is now considering to construct an education and enlightenment system for the entire group. The Group is now providing systematic education for employees such as environmental education for training new employees and education at facilities where ISO has been introduced. A new educational program will be started based on results of a study conducted in fiscal Environmental Enlightenment Activities Employees and their families are educated about the environment by the articles in an in-company newsletter, "I want to know more about what Minolta is doing about the environment." Minolta Group facilities are involved in raising employee's awareness of the environment by publishing an environmental newsletter and displaying environmental posters and pictures drawn by primary and middle school students on the theme of environmental preservation. Employees at some facilities carry cards giving ISO policy and targets to keep them aware of environmental preservation. Environmental Awareness Activities at Minolta Malaysia An environmental education campaign week was set January 2001 to raise employee's awareness of the environment at Minolta Malaysia Sdn. Bhd. and Minolta Precision Engineering (M) Sdn. Bhd. The campaign includes an environmental exhibition and presentation on the environmental impact by the employee's own company. The company devised a quiz rally to make the exhibition more enjoyable.

15 Environmental Management Initiatives Environmental Risk Management In order to prevent accidents that might have a negative environmental impact, Minolta intensifies a risk management system to minimize it. Risk Management To minimize impact of accidents or emergencies as well as prevent them from happening, we have established internal standards for handling emergencies at facilities where ISO has been introduced. If an accident does occur, a description of the related circumstances and response will be recorded, and internal standards will be reviewed and revised to ensure the proper action is taken without delay in the case of emergencies. In fiscal 2000, we performed emergency drills at the various facilities in accordance with standards. Environmental Audit The Quality & Ecology Division conducts an environmental audit of Minolta manufacturing facilities and domestic manufacturing affiliates to confirm the status on legal compliance and communication status with the government. The result of the audit showed the facilities to be generally in compliance with relevant regulations and handling of local complaints and noncompliance with environmental management. Analytic Laboratory Sayama Operations has bolstered its water quality analysis system by having analytic laboratory certification approved in December Following installation of organic chemical analysis equipment in the last fiscal year, we installed equipment for analyzing minute quantities of heavy metals in March Sayama Operations single handedly undertook analysis of water quality within the group to shorten time required for and enhance precision of analysis. direct iron powder reduction method. The elution test conducted 3 months later showed tetrachloroethylene remaining in the soil to be less than 4mg/ (0.01 mg/ for the environmental standard). In addition to this, Minolta banned the use of specified organic chlorinated solvents at Minolta facilities in January Affiliates The amount of tetrachloroethylene, trichloroethylene and dichloromethane detected in the ground water of Nankai Optical Co., Ltd. was found to exceed environmental standards (160,367 and 85 times the standard respectively). This was duly reported to the government of Wakayama Prefecture and city of Kainan in September. A study conducted by the prefectural government detected none of these substances in samples taken from soil, water and farm produce in the surrounding area of the facility had been contaminated. Tetrachloroethylene and trichloroethylene detected in the ground water of Nara Minolta Seiko Co., Ltd. was found to exceed environmental standards (3,460 and 234 times the standard respectively). This was duly reported to the government of Nara Prefecture and city of Sakurai in November. A study conducted by the prefectural government detected none of these substances in samples taken from wells and rivers in the surrounding area, and confirmed there was no possibility that the surrounding area of the facility had been contaminated. Trichloroehylene detected in the ground water of Toyohashi Precision Products Co., Ltd., was found to exceed environmental standards (5 times the standard). This was duly reported to the city of Toyohashi in March A study conducted by the city detected none of these substances in samples taken from wells in the surrounding area, and confirmed there was no possibility that the surrounding area had been contaminated. All three of these companies immediately began purifying the ground water. Concentration in monitored wells (Sayama Operations) Material: tetrachloroethylene Environmental Risk Management Response to the Issue of Soil and Ground Water Contamination with Organic Chlorinated Solvents 0.8 Minolta facilities Approximately a year and a half has passed since the Sakai and Sayama Operations began purifying by ground water pumping and volatile treatment method. During this time, 40,000 tons of ground water was treated at the Sakai Operations; 20kg of tetrachloroethylene and 38kg of trichloroethylene were recovered from the water. At the Sayama Operations, 29,000 tons of ground water was treated, and 6.3kg of tetrachloroethylene and 0.4kg of trichloroethylene were recovered. The water is regularly monitored and purification is progressing smoothly. Soil of at the Sayama Operations where contamination was measured (1,300 tons, or 810m 3 ) was detoxified by '99/ '00/ '01/ (Year/month)

16 Green Procurement and Green Purchasing Minolta has introduced a green procurement system to provide products that have relatively less environmental impact. Our offices practice green purchasing and promote purchase of environment-conscious office supplies. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Consider method of introducing green procurement by Started ahead of time in December. end of fiscal % of the office supplies purchased for Expand purchase of environment-conscious office Minolta facilities in fiscal 2000 were supplies by end of fiscal Min. 90% for Minolta facilities, min. 70% for domestic environment-conscious green products. affiliates 15 Green Procurement and Green Purchasing Introduction of Green Procurement It is the social duty of manufacturers to provide products that have relatively less environmental impact. Along with designing products that have minimal impact on the environment, manufacturers must also procure environment-conscious materials and parts. In December 2000, Minolta established the Minolta Green Procurement Guidelines and started to procure environment-conscious parts and materials to be used in Minolta products. The guidelines call for environmental evaluation from the aspects of corporate performance and procured parts and materials, and deciding whether or not to use the procured items by the total evaluation of the two. Green procurement will be expanded to the all Minolta Group in fiscal 2001, aiming to have 100% green procurement by the end of fiscal By promoting green procurement together with our supplier, we could lower product cost and environmental impact of our products. This also contributes to improvement of environmental management on the part of our suppliers. Logic behind criteria Quality (Q) Cost (C) Ecology (E) Evaluation criteria Delivery (D) Corporate performance evaluation + procured item evaluation Ecological evaluation (E) calls for evaluating the ecological efforts of our supplier(corporate performance evaluation) and the ecological efforts involving the parts and materials delivered (procured items evaluation). 1. Corporate performance evaluation Acquisition of ISO certification (implementation of environmental management execution based on ISO 14001) Implementation of environmental evaluation during product development and material procurement Reduction of the environmental impact during the manufacturing process Disclosure of environmental information 2.Procured item evaluation Volume of specified chemicals included Promotion of conservation of resources and energy Consideration given to recycling Consideration given to the environment concerning packaging

17 Environmental Management Initiatives Green procurement implementation flow Minolta Green procurement policy/criteria Supplier Product design Survey request Feedback Evaluation (notification of results) OK NG Survey Improvement Pass Evaluation OK NG Construction of Green Procurement System In order to efficiently promote green procurement, Minolta has constructed an online green procurement system that uses the Internet. Minolta and our suppliers began using the system in full operation in April A feature of the system is that it enables suppliers to access Minolta's dedicated server via Internet, input and register data in the server, have the data automatically evaluated immediately, and then view the results of the evaluation. Electronic data exchange reduces the amount of time and reduces the amount of paper needed. The data obtained also can be used inside our company for development and design of new products, as well as to improve environmental conscious of existing products. Green Purchasing Minolta also purchases environment-conscious office supplies from the perspective of the purchaser. We established the basic policy concerning the purchasing of environment-conscious office supplies and criteria for selecting which items to purchase based on it in September We also introduced our Stationary database electronic settlement ordering system that utilizes a data base of office supplies at all Minolta facilities in April The system speeds up the selection and ordering process for green products and eliminates the need for paper order forms. In fiscal 2000, the green purchase ratio in value was 72%, and a total of 890 items were registered green products. Minolta is planning for further expansion of the system. 16 Green Procurement and Green Purchasing

18 Product-Related Initiatives Minolta is working to reduce the environmental impact of our products by using recyclable resources, reducing the amount of specified chemical substances contained and reducing energy consumption at each stage of the product life cycle. Use of Recyclable Resources (recycling used products) Minolta is working to reuse and recycle used products and recover them from the market, additionally, to make used products easier to reuse and recycle from the initial development and design stages. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Calls for recycling a minimum of 95% of 99% of used copiers recycled. recovered copiers, printers and cartridges by 100% of used toner bottles and cartridges the end of fiscal (Applies to domestic recycled. market only.) 17 Use of Recycled Materials Copiers Some of the plastic parts in Minolta copiers use recycled materials to reduce the amount of virgin material used. By coloring digital green, recycled materials are also used for exterior parts requiring strict color management. Plastic materials of image information product such as copiers and printers are placed identification mark in line with ISO 1043 and ISO to facilitate sorting recovered plastic materials. recovered through the exchange center in fiscal 2000 accounted for approximately 10% of recovered products (3,495 tons in total). We will continue to expand the amount of used products recovered by taking advantage of the exchange center and enhance efficiency of collection. Use of Recyclable Resources (recycling used products) Amount of used products recovered and recycled Fiscal 1999 Fiscal 2000 Recovered Recovered Recycled Copiers Consumables Total 1, ,774 3, ,015 3, ,991 Unit:Tons Recovery center for copiers and consumables Sapporo Recovery Used copiers and consumables such as toner cartridges and toner bottles are collected at nine recovery centers. The centers collect used products from sales outlets all over the country. The used products collected by the recovery centers are sent to recycling companies and bases for recycling and reuse. Recovering toner cartridges by parcel service was also started in December Copiers are not only directly recovered from the customers themselves. Minolta has participated in the services of the exchange center of the Japan Business Machine Makers Association to pick up Minolta products recovered by other companies. This helps raise the recovery rate of Minolta products. Minolta products Copier Consumables Fukuoka Itami Osaka Toyokawa Tokyo

19 Product-Related Initiatives Reuse/Recycling Copiers The recycling rate for copiers recovered from the market was 99% for fiscal 2000, an improvement over fiscal In the past there had been regional differences in recycling rate, but the rate was improved by raising the disassembly/sorting level in all areas and by enlisting the help of new recycling companies capable of recycling hard-to-treat parts such as manuscript stand glass. In January 1999, Minolta began selling the EP6000RM copier that reuses parts from recovered copiers. About 70% by number and about 80% by mass of the parts are reused to reduce waste. In the future we intend to improve our resource recycling by expanding the amount of parts reused, and switching from energy recovery left partially to material recycling. Toner bottles We began to reuse specified types of used toner bottles in January After cleaning the bottles, the ones that pass quality inspection are reused. Toner bottles for CF1501 and CF2001 copiers have been specially designed for reuse. Including reused toner bottles, 100% of the toner bottles recovered are recycled. Toner cartridges Used toner cartridges recovered from the market are disassembled and cleaned at the base for recycling and reuse. The parts of those passing the quality inspection are reused. More than 70% by mass of parts of major types are incorporated into new toner cartridges. In the fiscal 2000, 72 tons of material was reduced. Including reuse of parts, 100% of the cartridges recovered are recycled. Cartridge reuse flow Customer Recovery center Sorting Inspection Cleaning Disassembly No landfill Delivery Inspection Assembly Material recycling Energy recovery Landfill Toner bottle reuse flow 18 Use Recovered used bottles Filling Cleaning process 1 "Reuse" label attached Cleaning process 2 Use of Recyclable Resources (recycling used products) Packaging/Package Insertion For packaging, Minolta continues to reduce environmental impact by placing importance on switching to environment-conscious materials that are suitable for product characteristics and reducing/compacting absolute volume. We began switching to cardboard and pulp molds made from recycled paper for copiers in After delivery, the pallets are also taken back for reuse. Since 1994, Minolta Group has shifted from the use of foaming material (as polystyrene foam) to the use of cardboard and pulp molds made from recycled paper for camera packaging. We also place material identification mark on plastic packaging. Minolta was the first company in the copier industry to use bagasse paper (paper made from the crushed stalks of sugar cane and recycled paper) for the operator's manual of the CF1501/CF2001 copiers. We have also been printing domestically used packaging and its insertions for copiers and cameras with soy ink since 2000.

20 Reduction of Specified Chemical Substances To minimize environmental impact by products when they are used or disposed of, Minolta does our best to reduce the use of substances that have a negative effect on the environment at the design and manufacturing stages. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Reduction in use of brominated fire retardants Reduction plan settled upon. (except for PBB/PBDE) and heavy metals. Optical lens 91% free of lead and arsenic Manufacturing mass of optical lens to be for fiscal minimum 90% free of lead and arsenic from fiscal List of Minolta's Controlled Chemical Substances Contained in Products In September 2000, Minolta drew up a list of chemical substances contained in Minolta products that need to be banned, reduced and controlled. Based on chemical substances covered by environmental regulations in various countries all over the world, the list ranks 60 substances as A, B, or C. Brominated fire retardants and heavy metals are rank A (banned). Minolta aims to phase-out the use of these substances by the end of fiscal Efforts to Reduce Specified Chemical Substances In fiscal 2000, Minolta formed a committee for considering the use of lead-free solder in Minolta products. Minolta affiliate, Aoi Camera Co., Ltd., has installed a line for placing components on printed circuit boards using leadfree solder. Minolta optical lens are now 91% free of lead. Concerning hexavalent chromium, we are also considering to use chromium-free treated steel plates. Minolta ceased manufacturing of selenium photoconductors remaining for market maintenance in March Reduction of Specified Chemical Substances Substances in the List of Minolta s Controlled Chemical Substances Contained in Products Rank No. of substance groups A B C To be banned To be reduced To be controlled Efforts with rank A substances Substance Application 2 Products Efforts up to fiscal 1999 Efforts in fiscal 2000 Lead and lead compounds Mercury and mercury compounds Hexavalent chromium compounds Cadmium and cadmium compounds Solder Optical lens/glass Fluorescent lamps Mercury switches Mercury shutters Cr-treated steel plates NiCd batteries Photocells All products All products Newly designed optical lens is more than 90% free of lead and arsenic Image information/optical Survey of substance contained Optical product/ Use banned for optical product planetariums Use banned for new planetariums Optical product/ Use banned for optical product planetariums Use banned for new planetariums All products All products Use of NiCd batteries banned for products Optical product Use of CdS photocells banned for products Committee for considering the use of lead-free solder formed Introduction of Lead-free solder placement line at Aoi Camera Manufacturing mass of optical lens 91% free of lead and arsenic Sample evaluation of chromium-free steel plate PBB Plastic material PBDE/PBBE Plastic material Other brominated fire retardants Plastic material (besides PBB/PBDE) All products All products All products Banned Banned Start of detailed survey as part of green procurement Chlorinated fire retardants Plastic material All products Banned PVC and PVC blends Blister packs Optical product Switch to polystyrene (PS) considered Cases Optical product Use banned for new products Wire sheathing All products Substitute technologies considered

21 Product-Related Initiatives Energy Savings To prevent global warming, Minolta is working to reduce distribution energy and developing products that consume less electric power when used. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Along with promoting development of elemental 25 models of copiers, printers and fax technologies for reducing power consumption, machines have met standards. provide OA equipment that continuously meets international Energy Star program standards. Energy-saving Products OA equipment such as copiers and printers are designed to be energy-saving. One example would be equipment provided with a two-in-one function, or a function whereby the power is turned off automatically if not used for a specified amount of time. Minolta participates in the international Energy Star program that aim to popularize the use of energy-saving OA equipment, and is doing our best to make our products energy-saving. In fiscal 2000, 25 models of Minolta products including CF1501/CF2001 copiers and printers have been registered as complying with Energy Star standards. Japan s Law on Promoting Green Purchasing (Law Concerning the Promotion of Procurement of Eco- Friendly Goods and Services by the State and other Entities) was enforced in April The government has taken the initiative to encourage purchase of environment-conscious products such as energy-efficient products. Minolta copiers, printers and fax machines have been registered as special procurement products under the Japan s Law on Promoting Green Purchasing. Distribution Energy Reduction Use of mixed freight among domestic distribution centers In October 1997, Minolta centralized distribution centers for our domestic sales in Toyokawa, Osaka, Tokyo, Sapporo and Fukuoka. We used this as an opportunity to switch from each department transporting merchandise among centers to integrated transportation. Instead of sorting and transporting each product, image information product and its consumables, and optical product are all shipped together to reduce trucking distance. As a result, about 315,000km of travel distance per year in comparison with fiscal 1996 was reduced, enabling us to avoid producing about 230 tons of CO2 emission. Shared transport of camera Since fiscal 1997, Minolta has employed a system of sharing transport with five other camera manufacturers. With this system, cameras, lens and accessories are shipped together from distribution centers in Tokyo to retailers. Moreover, items that need to be repaired can be picked up at the same time. The system has substantially reduced the number of delivery vehicles required. Along with shortening the amount of time it takes to make delivery at retail outlets, it has also reduced the amount of fuel required for transportation. By using the system, about 29,000km of travel distance per year in comparison with fiscal 1996 was reduced, enabling us to avoid producing about 9 tons of CO2 emission. Image information product recovery Minolta utilizes delivery vehicles to pick up used products on their way back from deliveries and the exchange center of the Japan Business Machine Makers Association (JBMA) to make distribution more efficient and reduce CO2 emission. 20 Energy Savings

22 Product Assessment Minolta makes effort to improve environmental performance of our products by constructing a product assessment system that covers all areas of our operations. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Systematically prepare and introduce a Product assessment system has been product assessment system at the design introduced and is operating in all areas of stage. company operations. 21 Product Assessment System Minolta established ecological standards (ECOS) and guidelines for recycle design and a guidebook of recyclable materials for our image information product in 1995 and 1998 respectively. The guidelines include marking material identification on plastic used, reconsidering fastening method to reduce the number of screws used and easy disassembly. In fiscal 1999, we established new product assessment guideline that can be applied to all product fields in accordance with changes in environmental regulations and social trends. The guideline applies to products of the Minolta Group and our packaging. The product assessment system was constructed in 2000 based on this guideline, and is to be used to assess image information product, optical product, optical system devices, Assessment flow Minolta development/ design bases Clarification of requirements radiometric instrument, planetariums and R&D products prior to being placed into production stage. Product assessment (Parts supplier) Parts manufacture Green procurement Database Manufacturing bases Public disclosure of Type I and Type III environmental label Product Assessment/Environmental Technology Development Environmental Technology Development Minolta is furthering development of technology, such as paper substitute chiral numatic liquid crystal and reusable media, which contributes to environmental preservation. Chiral Nematic Liquid Crystal CN liquid crystal Minolta has developed a new type of full color display element, chiral nematic liquid crystal. The liquid crystal is able to retain an input image without power consumption. The substance doesn't require a back light, so it considerably reduces power consumption compared to existing displays. This technology holds promise as a substitute medium for paper, and is expected to be used for electronic books, newspapers, bulletin boards, etc. Micro-wall type The media is equipped with fine indentations on its surface that retain toner. Doesn't require thermal fixing, so it considerably reduces power consumption for copiers and printers. The media can be reused after toner is removed with a brush. Reusable Media Minolta has developed two types of Reusable Media sheets that can be used in place of paper, and is now developing on a machine that cleans the sheets so they can be used again. Water swelling layer type This type is provided with a water swelling layer type that enables toner to be removed by dipping into water. Once dried, the sheet can be used again. In addition to toner, the sheets can be recycled after being written on with ordinary felttip pens and markers. CO2 Reuse system Conventional media Waste Printer PC Digital data Reusable media Information Desktop CN liquid crystal Media reuse system Reuse Recycling plant Cleaning machine Recycle Office Society

23 Product-Related Initiatives Environmental Labeling Environmental labeling shows that the product is environment conscious, and can be the basis for the customer's decision when purchasing. Minolta products disclose environmental information by these labels. Medium -Term Environmental Plan Achievement of Targets for Fiscal 2000 Establish standards for Type III environmental Standards have been established and data labels by the end of fiscal disclosed for a total of 5 models. Type I Environmental Label Standards for deciding environment-conscious products are drawn up and certified by a third party, so they may differ from country to country. Minolta has been certified to use the following Type I environmental labels: Eco Mark Japan Minolta was certified to use the label for 12 copier models in fiscal Nordic Swan 5 countries of North Europe Minolta was certified to use the label for Di550 and Di450 copiers in fiscal Norway, Sweden, Finland, Iceland, Denmark Blue Angel Mark Germany Minolta was the first copier manufacturer to be certified to use the Blue Angel mark in 1992, and has continued to be certified to use the mark in Europe ever since. Five models were added in fiscal 2000 for a total of 28 models certified to use the mark. Radiometric instruments Non-contact Infrared (IR) thermometers A non-contact IR thermometer is a product that determines temperature of an object by measuring infrared energy emination from the object. Dioxin can easily be produced if the incinerator temperature is too low. To prevent this, waste must be incinerated at a high enough temperature. Temperature can be monitored by a non-contact IR thermometer to keep dioxin from being produced. The device is sold to local governments, through incinerator manufacturers. Type III Environmental Label Type III environmental label provides quantitative data concerning the environmental impact by the product during its entire life cycle. Minolta disclosed this information concerning our copiers to the public on our Japanese Web site in June As of March 2001, we have disclosed information concerning Di180, Di250, Di350, Di450 and Di550. Data conforming to the program promoted by Japan Environmental Management Association for Industry (JEMAI Program Ver. 1) such as calculation of environmental impact by not only the copier itself, but also by the manufacturing process of consumables (toner, photoconductors, etc.) has been totaled in the extensive range. Because the JEMAI program revised to Ver. 2 in April 2001, Minolta will disclose the label with new standards. The data will be fed back internally and will be used to reduce environmental impact throughout all the product life cycle. Products that Contribute to the Environment Minolta radiometric instruments that contribute to various fields of environmental preservation. The importance of the environment is demonstrated through projection programs in planetariums. Planetariums Planetariums teach adults as well as children the beauty of our planet, the magnitude of the environment, and the importance of existing in harmony with each other. "Kana-chan s Amazing Expedition- The Birth of the Earth" spreads the word about preserving the global environment. 22 Environmental Labeling/Products that Contribute to the Environment

24 Facility-Related Initiatives To reduce environmental impact by business activities, the Minolta Group is totally involved in attempting to completely eliminate discharge of waste (zero waste) from our facilities. We continue to ban or reduce use of specified chemicals while holding down energy consumption. Reduction of Waste Minolta Group is endeavoring to reduce industrial waste disposal by promoting waste sorting for efficient recycling of industrial waste. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Reduce the amount of industrial waste disposal produced at Minolta manufacturing and R&D facilities by the end of fiscal Manufacturing and R&D facilities: 70% reduction (compared with fiscal 1996). Domestic manufacturing affiliates:50% reduction (compared with fiscal 1998). Reduce waste disposal at a model facility to zero by the end of December Manufacturing and R&D facilities: Reduced by 79%. Domestic manufacturing affiliates: Reduced by 59%. Achieved at a total of 7 facilities, including model facilities (Mizuho Plant). 23 Reduction of Waste Reduction and Recycling of Waste Minolta has promoted recycling of industrial and ordinary waste to achieve the targets of the Medium-Term Environmental Plan at our manufacturing and R&D facilities. The targets for fiscal 2000 rose from reduction of waste to zero of waste disposal, and company initiatives were accelerated to achieve that target. Based on the slogan "Even waste can be resources if sorted," types of waste were subdivided. Enlisting the cooperation of recycling companies, we began recycling complex waste, optical glass waste and used toner waste that used to be incinerated or disposed of as landfill. As a result, we were able to raise our industrial waste recycling share at manufacturing and R&D facilities to 83%. This was 325 tons of waste disposal, 1,213 tons less than disposed waste of in fiscal Domestic manufacturing affiliates also raised the recycling share to 63%. This was 637 tons of waste disposal, 526 tons less than in fiscal In either case, targets were achieved ahead of schedule. The total amount of waste disposal including ordinary waste was 1,058 tons for manufacturing, R&D facilities and domestic manufacturing affiliates - about 40% less than in fiscal Total waste Industrial waste volume and recycling share Manufacturing and R&D facilities Unit: Tons Disposed Recycled Recycling share Unit: Tons Domestic manufacturing affiliates Unit: % Target Industrial waste volume and recycling share Unit: % 100 Recycling share Breakdown of total waste (fiscal 2000) ,150 tons recycled (79.7%) 1,058 tons disposed waste (20.3%) Total waste: 5,208 tons Waste plastic: 6.9% Sludge: 5.6% Waste acid: 2.1 Ordinary waste2.0% Waste metal: 1.1% Waste glass: 1.0% Waste oil: 0.7% Waste alkaline: 0.2% Other: 0.7% Total waste Disposed Recycled Recycling share Target Recycling share

25 Facility-Related Initiatives Efforts to Zero Waste Discharge Since fiscal 1999, Minolta has been working to realize zero waste discharge from our Mizuho Plant. The initiative was expanded to other facilities in fiscal 2000, and as a result, zero waste discharge was achieved at 7 facilities. We aim to achieve zero waste discharge at all of our domestic manufacturing and R&D facilities during fiscal Zero waste discharge facilities and date of achievement Mizuho Plant Itami Plant Toyokawa Administrative Center Miki Minolta Industries Co., Ltd. Aoi Camera Co., Ltd. Sakai Operations Technical Center Examples of zero waste discharge Sep. 1, 2000 Sep. 25, 2000 Mar. 27, 2001 Mar. 27, 2001 Mar. 28, 2001 Mar. 30, 2001 Mar. 30, 2001 [Mizuho Plant] Waste discharged from the Mizuho Plant, which assembles copiers and printers, is composed mainly of plastic parts, packaging materials and metal parts.at the end of fiscal 1999, 96% of the total discharge was recycled. In fiscal 2000, remaining complex waste composed of metal and plastic was completely disassembled and sorted according to type at each divisions of the plant. By determining the best way to recycle according to characteristics, waste discharge was completely eliminated. [Itami Plant] At the Itami Plant, which produces toner, photoconductors and optical glass, waste glass rubbish and firebricks have been difficult to recycle. Because of its characteristics, optical glass cannot easily be recycled like conventional glass such as empty bottles. By tying up with companies having technical capabilities to do so, the glass is now able to be used these materials as indirect materials for adjusting melting viscosity when smelting. By scraping the glass off firebricks for electric furnaces used for melting glass, the glass can be separated from the firebricks for both to be recycled. The Itami Plant is the first optical glass manufacturing plant in Japan that has achieved zero waste discharge. Minolta's philosophy concerning zero waste discharge facilities being achieved The following 3 conditions must be met concerning all applicable waste to be recycled through outside contractors: 1. Contractors must sign a contract stating they are capable of recycling the waste in question. 2. The contractor must have a technically feasible way to recycle the waste in question. Minolta confirming the fact. 3. Waste shall be discharged from facilities based on the contract. Recycling of discharged waste (Mizuho Plant) Type of waste Classification Recycling method Used paper Trash paper Tree waste/ leaves Metal Plastics Other Recyclable paper Recycled as paper Paper difficult to recycle Shredded and converted to solid fuel Miscellaneous trash Thermal recycled Shredded and converted Wooden pallets / cuttings to pulp Plant/tree waste Converted to compost Iron, stainless steel, aluminum, copper, steel cans, aluminum cans Aluminum assembled parts Motor clutch IC chips, printed circuit boards Soft plastics such as PE and PP Hard plastics such as ABS and PS Polystyrene foam PVC Recycled as metal Shredded and converted to solid fuel Recycled as material / thermal recycled Shredded and converted to building materials Melted and converted to pellets Urethane foam Shredded and reused Glass (original glass plate, bottles) Shredded and reused Glass (mirrors, lens) Shredded and converted to ornamentation Shredded and material Fluorescent lamps recycled Shredded and recycled as Batteries metal Vinylchloride sheathed iron pipes Recycled as metal Waste oil Boiler fuel 24 Reduction of Waste PCBs A total of 1,660KVA of PCB-containing capacitors are stored and controlled at 6 facilities of the domestic group. Minolta is considering ways to detoxify them. A survey of fluorescent and mercury lamps that use stabilizers containing PCBs shows that a total of 1,351 lamps were being used. The Group plans to change all of these lamps for non- PCB type during fiscal 2001.

26 Chemicals Management Minolta manages chemical substances used at our facilities quantitatively. For environment-harmful substances, we promote banning or reduction and diverse ways to convert to more safety substances. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Ban the use of specified substances. Manufacturing and R&D facilities:by end of December 2000 Domestic/overseas manufacturing affiliates: By end of fiscal 2002 Start in operation of chemicals management system. Manufacturing and R&D facilities: Fiscal 2000 Domestic/overseas affiliates: Fiscal 2001 Use banned at all Minolta facilities in January Plan established for banning/reducing use of specified chemicals at domestic/overseas affiliates. Chemicals management system implemented at manufacturing/r&d facilities and domestic/overseas manufacturing affiliates. 25 Chemicals Management Ban of the Use of Chemicals that Cause Ozone Layer Depletion, Global Warming and Soil and Ground Water Pollution Minolta has banned the manufacture and experimental use of specified organic chlorinated compounds at Minolta manufacturing/r&d facilities in January We have also established the VOC Working Group, which is drafting plans for reducing tetrachloroethylene, dichloromethane, HCFC and PFC as of April 1999 (Medium-Term Environmental Plan published) on a companywide basis. Because of their superior cleaning performance, these substances were indispensable, such as for precise cleaning of lens. With the cooperation of solvent manufacturers, cleaning technology using substitute solvents with equivalent cleaning performance was developed, thus enabling the company to ban the use of such chemicals. Chemicals Management Minolta introduced a system of managing all chemicals used at our company, including those specified by the PRTR Law, in fiscal In fiscal 2000, we began training system managers at our facilities and affiliates to comply with the PRTR Law. Doing so makes possible quick totaling of amount of chemical substances handled, discharged and transported, and further enhances internal management of chemical substances. Of those chemicals specified by the PRTR Law (354 substance groups) in quantities of 0.1 ton or more, eleven are handled at Minolta. In fiscal 2000, 3.92 tons of the substances were released into the environment. The breakdown is given in the table on page 26. Because the substances were totaled in accordance with the PRTR Law in fiscal 2000, the number of applicable substances was less than that of fiscal Compared with the results of totaling the results of fiscal 1999 by target substances, about 15% less of the substances were handled and 50% less were released into the environment. Promoting a ban on specified organic chlorinated compounds that had been released into the environment in large quantities contributed largely to this. The amount of these substances recycled was largely increased to accelerate the effort to achieve zero waste discharge. Banned chemicals Specified Substance Application Date banned Ground water contaminants regulated by Water Pollution Control Law Tetrachloroethylene Component cleaning May 2000 Dichloromethane Peeling, tool cleaning, bonding Dec Substances regulated by Ozone Layer Protection Law HCFC141b Component cleaning Sep HCFC225 Component cleaning Dec Substances regulated by Law Concerning the Promotion of the Measures to Cope with Global Warming PFCs Dispersant Jan. 2001

27 Facility-Related Initiatives Voluntary Management of Emissions Minolta has established voluntary standards for observing legal standards for air and water quality, and has been managing chemical emission from our manufacturing and R&D facilities since fiscal Management values are set at each facility in accordance with the voluntary standards. Along with regularly monitoring chemical emission to air and water, we maintain related facilities such as boilers and drainage treatment equipment. In Sakai Operations, several parts are treated with chromates. Because chrome in wastewater may be oxidized into hexavalent chromium for some reason, by making all chrome-contained substances monitored in wastewater instead of single chrome monitored, legal standards are strictly observed. If the values happen to be exceeded, the flow is stopped and wastewater is re-treated. After confirming the measurements are below the management values, flow is resumed. Boron, one of the substances specified by the PRTR Law, is used at Itami Plant for producing optical glass. The majority are contained in products as safe compounds, but it is unavoidably discharged with wastewater. We have therefore installed boron recycling equipment to recover the substance from wastewater and recycle it. The recycling equipment is scheduled to begin full operation around the summer of The equipment will realize closed recycling of wastewater containing boron, and is expected to completely eliminate transfer of boron as waste. By completely recovering boron, we can effectively save about 30,000 tons of water per year. Minolta is working on suppressing noise and vibration made by our facilities by monitoring them and performing regular maintenance on our equipment. We are considering additional countermeasures to prevent noise at Toyokawa Plant and at Toyohashi Precision Products Co., Ltd., where this could not be carried out in fiscal Please refer to our Web site for information on the performance of our facilities concerning air and water quality, noise and vibration. (URL: Released/transfer of substance specified by PRTR Law Minolta facilities / Unit: Tons Volume handled Emission to air 3.92 Removed Shipped as product Discharged into water Discharged into soil Recycled Transferred as waste Chemicals Management Results of PRTR survey (Minolta facilities) PRTR No. Chemical Volume handled Release into the environment Air Water Soil Subtotal Transferred as waste Consumed as product Removed/ treated Unit: Tons Recycled 25 Antimony and its compounds ,4-dioxane , 1-dichloro-1-fluoroethane (HCFC-141b) Dichloropentafluoropropane (HCFC-225) Dichloromethane Tetrachloroethylene Toluene Lead and its compounds Barium and its water-soluble compounds Arsenic and its inorganic compounds Boron and its compounds Total

28 Facility-Related Initiatives Energy Saving Minolta strives to conserve electricity and fuel at our facilities to use resources more efficiently and reduce the amount of CO2 emmission and thereby help prevent global warming. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Restore energy consumption to the 1997 level each fiscal year up to 2003 (crude oil Increased 15% for Minolta Group overall. conversion). 27 Energy Saving Reduction of Energy Consumption The groups as a whole used approximately 44,000k of energy in fiscal 2000 (crude oil conversion), a 15% increase over fiscal We made efforts to reduce energy consumption by introducing demand control (automatic on/off control based on power demand forecast), upgrading to inverters for lighting, and switching to air-conditioning that allows the user to switch temperature setting for each block. An increase in manufacturing of toner and hard disk substrates, however, increased the amount of energy consumed. By implementing measures such as reviewing of airconditioning operation rules at administration facilities, 8% was reduced compared to fiscal Energy consumption crude oil conversion and energy consumption per sales unit [Crude oil conversion k ] [t-co2] '94 '95 '96 '97 Energy consumption per sales unit (with 1997 as 100) 160 Minolta manufacturing and R&D facilities Minolta administrative facilities Domestic manufacturing affiliates Domestic administrative affiliates Overseas manufacturing affiliates Energy consumption per sales unit '98 CO2 emission (Minolta Group) '99 ' Energy Reduction Examples Itami Plant By implementing demand control in April 2000, Itami Plant was able to save 380,000 kwh per year. To reduce energy loss when receiving electrical power, the plant switched to energy-efficient transformers in January It is expected to save 210,000 kwh per year. Mizuho Plant Along with upgrading lighting at administrative division to inverter type (high-efficiency fluorescent lighting), illumination layout was improved in September This is expected to save about 70,000 kwh per year. Aoi Camera Co., Ltd. Aoi Camera Co., Ltd., introduced an ice-based heat storage air-conditioning system (Eco Ice) in fiscal The system uses nighttime power for air-conditioning during the day, and contributes to leveling off electric power supply. Example of Energy Efficiency Using Discharged Heat Itami Plant Energy consumption is expected to increase along with higher demand for compressed air when increasing manufacturing volume. Electric compressed air manufacturing equipment was therefore replaced by gas engine type. This enables hot water that accounts for about 41% of the heat discharged during compressed air manufacturing to be recovered and used as a source of heat for air-conditioning. By doing so, the plant succeeded in raising total efficiency from 42% to 78%. This example received the Chairman's Award of the National Committee's Energy Savings Presentation sponsored by the Energy Conservation Center Japan in February Comparison of total energy efficiency Electricity 100 Compressors 40 Heat recovery 2 Gas 100 Compressors 37 Hot water recovery Waste heat, etc. 58 Exhaust, etc '97 '98 '99 '00 '01 '02 '03 (Target) Total efficiency 42 Total efficiency 78.2

29 Communication Minolta considers communication with our stakeholders to be of utmost importance, and carries out various activities to promote such communication. Each and every employee is involved in environmental activities based on this philosophy. Information Disclosure Now that companies are severely required about their commitment to environmental issues, Minolta's policy is to disclose easy-to-comprehend information based on fact to the public. Medium-Term Environmental Plan Achievement of Targets for Fiscal 2000 Regularly issue an environmental report each The 2000 version of the environmental report year. (results of fiscal 1999) was issued in June Environmental Report The informative environmental report was issued in English and Japanese in June The report has served to realize two-way communication with others, and suggestions from readers have been utilized in environmental activities. Some of Minolta's facilities have created environmental leaflets that give our policy and targets concerning the environment and tell what we are doing about the environment. The leaflet also tells visitors about environmental activities of the facilities. Environmental Web Site To more broadly disseminate information on our environmental preservation activities, Minolta revised the contents of the environmental section of our Web site in September In Japanese Web site, along with making the information easier to read by providing a menu of topics, information is constantly updated to provide the latest information. 28 Information Disclosure Eco Products 2000 The Eco Products 2000 exhibition of environmentconscious products was held at the Tokyo Big Site in December The exhibition provided an opportunity for Minolta to demonstrate our environmental expertise through technology exhibits and presentations of environment-conscious products. The exhibited items can still be seen at the Toyokawa Administrative Center. Environmental Photo Contest The Minolta Nature Photo Contest was started last year to convey the beauty of nature through photographs. This year about 9,000 photos from all over the country were entered in the contest. Minolta has also collaborated with the Environmental Photo Contest sponsored by the President Co., Ltd. With "light and color" as its theme, 1,145 photos were entered in the contest. The winning photographs were used for the 2001 Minolta calendar. Minolta has also quit using metal fasteners for its strip. The calendar is printed on recycled paper using soy ink. In this way, Minolta uses contests and calendars to get across our message concerning the global environment.

30 Communication Cooperating with Communities Minolta contributes to local communities through various activities. For example, we support the efforts of local companies to obtain ISO certification and organize visits to our facilities for local residents. Support for Acquiring ISO Certification In fiscal 2000, Minolta has supported acquisition of ISO certification for other companies, two of which have successfully been certified. Minolta employees taught a seminar on our ISO activities to promote environmental preservation among local industries in May Minolta Lorraine S.A. (France) provided local companies with advice on how to obtain ISO certification. Activities with Local Communities Minolta held our environmental event for fiscal 2000 at the summer festival that was open to the public at our facilities. The festival has provided an opportunity for promoting friendship with local residents in the past. The Itami Plant participated in the recycle fair sponsored by the city in October to let local residents know about their environmental preservation activities. Minolta Industries (HK) Ltd. (China) held an ecology fair in October in which about 1,500 employees and local children participated. Running for a week, the fair consisted of panel exhibits, an employee environmental awareness survey and education. A photo contest co-sponsored by the Minolta Corporation (US) for local communities and schools was held. With "nature" as its theme, the contest taught the importance of nature through a camera lens. Minolta Advance Technology Inc. (US) participates in municipal cleanup activities every year. Other companies also participate in local cleanup projects. 29 Cooperating with Communities Visits to Minolta Facilities by Local Residents To promote communication with local residents, Minolta has organized visits to our facilities by local residents and to let them know about our business activities and to share large quantities of information concerning environmental preservation. Visits concerning our efforts to achieve zero waste discharge particularly increased in fiscal We were able to have approximately 1,600 people observe our business activities. Visits to Minolta facilities (fiscal 2000) No. of visitors Types of visitors Targets of visit Minolta Domestic affiliates Overseas affiliates 1, Businesses, students, government officials Local residents, students Businesses, students, local residents Zero waste discharge, ground water countermeasures, manufacturing activities, general business activities Soil / ground water countermeasures, general business activities ISO 14001, general business activities Effective Use of Materials Minolta Industries (HK) Ltd. (China) and Minolta Advance Technology (US) donate test paper used for product quality inspections and repaired copiers used at the company to local schools and NPOs for effective usage.

31 Overview of Facilities and Affiliates The facilities and affiliates mentioned in this environmental report are as follows: Minolta Co., Ltd. Facility Location Activity ISO acquired Head Office Osaka Corporate administrative functions Feb Tokyo Office Tokyo Administrative functions, development of software Feb Esaka Operations Osaka Administrative functions, development of software Jan Technical Center Osaka Development and design of cameras, lens and digital photo products June 2000 Advanced System Center Seishin Hyogo Development and promotion of information systems Feb Takatsuki Laboratory Osaka Research and development of fundamental technologies Mar Toyokawa Development Center Aichi Development of image information product and industrial design Mar Mikawa Plant Aichi Preparation for manufacture of image information product manufacturing design Mar Itami Plant Hyogo Manufacture of toner and photoconductors; Nov manufacture of optical glass and HD board glass Sakai Operations Osaka Manufacture of cameras, lens, digital photo products Apr Sayama Operations Osaka Optical development; development, Mar manufacturing and sales of optical device units Toyokawa Plant Aichi Development of component and precision machining technology Mar Toyokawa Administrative Center Aichi Development and manufacture of radiometric instruments Oct Mizuho Plant Aichi Manufacture of image information product Nov Domestic Affiliate ISO acquired Minolta Sales Co., Ltd. Tokyo Marketing of image information product and optical product in Japan (Preparations being made) Aoi Camera Co., Ltd. Aichi Manufacture of parts for image information product and optical product June 1999 MYG Disk Corporation Osaka Manufacture of glass HD substrates (Planned in fiscal 2001) 1 Okayama Minolta Okayama Manufacture of optical product and parts for optical Mar Seimitsu Co., Ltd. product and image information product, camera repair Sankei Precision Products Co., Ltd. Aichi Manufacture of image information product 2 Mar Toyohashi Precision Products Co., Ltd. Aichi Manufacture of parts for image information product and optical product Oct Nara Minolta Seiko Co., Ltd. Nara Manufacture of parts for optical equipment Aug Nankai Optical Co., Ltd. Wakayama Manufacture of parts for optical product and optical units Feb Miki Minolta Industries Co., Ltd. Hyogo Manufacture of toner for image information equipment Dec Minolta Components Co., Ltd. Aichi Manufacture of parts for image information product and optical product Feb Minolta Planetarium Co., Ltd. Osaka Development, manufacturing and sales of planetariums Jan Aichi Oct Overview of Facilities and Affiliates Overseas Affiliate Minolta Corporation (US) Minolta Europe GmbH (Germany) Minolta Advance Technology Inc. (US) Minolta Industries (HK) Ltd. (China) Minolta Lorraine S.A. (France) Minolta Malaysia Sdn. Bhd. (Malaysia) Minolta Precision Engineering (M) Sdn. Bhd. (Malaysia) Shanghai Minolta Optical Products Co., Ltd. (China) Wuhan Minolta Office Automation Equipments Co., Ltd. (China) Marketing of image information product and optical product in the United Sates Marketing of image information product and optical product in Europe Manufacture of toner for copiers Manufacture and management of image information product Manufacture of toner and toner cartridges Manufacture of cameras Manufacture of camera parts, camera manufacturing design Design, manufacture and marketing of cameras in China Manufacture and marketing of copiers in China (Preparations being made) (Preparations being made) June 1998 Mar Sep Aug Aug Nov Mar Administrative unit Marketing unit R&D unit Manufacturing unit

32 Minolta Co., Ltd Azuchi-machi 2-chome, Chuo-ku Osaka , Japan Quality & Ecology Division Tel: (81) Fax: (81) English URL: Japanese URL: Printed in Japan August 2001 Next scheduled issuance: August 2002