Corporate Social Responsibility Report

Transcription

1 2011 Corporate Social Responsibility Report

2 Contents Top Message 2 Editorial Policy 3 The IBIDEN Group s CSR Management 4 Corporate Philosophy/Consolidated Medium-Term Management Plan 4 CSR Policy and Scope of Activity 5 Dialogue and Cooperation with Stakeholders 6 External Corporate Evaluation/Assessment by Third-Party Organizations and Our Actions 6 Internal Control 7 Basic Approach to Corporate Governance 7 Summary of the Existing Corporate Governance Systems/ Corporate Governance Related to Other CSR Promotions 8 Diagram of Corporate Governance System/ Compensation of Directors and Corporate Auditors 9 Risk Management 10 CSR Management in the Supply Chain 11 Compliance 12 Bolstering Compliance Activities 13 Human Resource Management 14 Respect for Human Rights/Employment and Development of Human Resources 14 Respecting Diverse Work Styles 15 Labor and Management Cooperation to Create a Worker-Friendly Workplace 17 Occupational Health and Safety Policy/ Organization Chart of Occupational Health and Safety Management 18 Measures for Safety/Managing Employee Health 19 Environmental Management 20 Environmental Policy/Organization Chart of Environmental Management 20 Management System Certification Status/ Environment and Occupational Health and Safety-Related Laws and Regulations 21 Coping with Climate Change Issues 22 Resource Circulation 24 Appropriate Chemical Control 25 Understanding the Influence on Biodiversity 26 Environmental Contribution through Products 27 Environmental Accounting 28 The IBIDEN Group's Material Balance (Input and Output) 30 Environmental Data for Individual Plants and Group Companies Compliance Management 31 Social Contribution 35 Basic Policy/Forest Building Activities: IBIDEN s Forest 35 How to Promote Social Contribution Activities/Protecting the Global Environment 36 Fostering the Next Generation 37 Contributing to Social Welfare and Local Communities 38 Disaster Relief Activities/Encouraging volunteerism 39 Social Responsibility for Products 40 Quality Management that Supports Customers-First Values/Quality Assurance System 40 Corporate Responsibility Goal Summary 41 Corporate Information 43 GRI Index Table 46 Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 1

3 Top Message IBIDEN will sustain its growth anchored on CSR-oriented management calibrated to suit globalization. On behalf of the IBIDEN Group, I would like to express our deepest condolences to the people who have lost loved ones in the earthquake and tsunami that struck eastern Japan on March 11, and to extend our sympathy to everyone who was affected by the tragedy. We remain committed to assisting to the best of our ability with the post-disaster reconstruction and recovery efforts in the devastated areas. The IBIDEN Group was spared direct damage with significant consequences to its production. Nevertheless, having drawn valuable lessons from the recent disaster, the Task force for Risk Management is reviewing the Group s contingency planning designed to prevent and reduce disaster-induced damages and administer quick responses when a disaster strikes, in an effort to further enhance our business continuity capabilities. Aiming at Sustainable Growth beyond Our Centennial Anniversary The IBIDEN Group is putting into action the Global IBI-TECHNO 100 Plan. This medium-term management plan, which runs through fiscal 2012 IBIDEN s centennial year aims to instill the dynamism and corporate culture that will enable us to achieve sustainable growth and stable profits for the next 100 years. One of the pillars of President & CEO the plan is Implement CSR management, which we are putting in place with the full participation of all officers and employees across the Group. Our approach to CSR management calls for management practice underscored by a high degree of reliability and transparency for the benefit of stakeholders, based on our belief that this path ensures sustainable growth beyond our centennial year, toward the next milestone of the Company s bicentennial anniversary. To encourage CSR management in workplace, the IBIDEN Group Charter of Behavior was revised in July 2011, after rounds of discussions during fiscal year 2010 aimed at giving concrete form to the ideal envisioned by the Group. The new charter, an extension of our IBIDEN WAY made more suitable for day-to-day applications, summarizes this ideal. The charter also serves as the base for our future activities, including discussions on the organizational mechanisms that should be enhanced and placed under management, and the execution of specific actions to reach the ideal state of operations. In addition, employees conduct is governed by a separate set of standards known as IBIDEN Standards for Employee Behavior. Recalibrating for Globalization As overseas operations now account for more than 75% of the Group s net sales, we are opting for increased efforts in the path to globalization. To boost local production and accelerate the localization of our overseas plants by local management teams, it is essential to foster personnel capable of successfully negotiating the shift to globalization. The global human resource strategy serves as the basis for enhancing competitiveness across the Group. Our Behavior Charter also addresses human rights, anti-corruption and other universal ethical principles, with which fuller compliance is called for by the international community. The entire IBIDEN Group continues to base its actions on the Charter in an effort to become an organization completely trusted by its stakeholders in the international community and to achieve further growth. Advancing CSR-Oriented Management in Step with Stakeholders To be a trusted partner in the international community, we need to initiate and maintain dialogues with our stakeholders and undertake actions by working closely with them beyond the confines of our Group. Equally important is our challenge of building a reliable supply chain system with suppliers to achieve the consistent delivery of our products and services. For this reason, this fiscal year we formulated a set of CSR guidelines designed for our suppliers, as their cooperation is essential for the successful upgrading of our supply chain. The IBIDEN Group continues its proactive disclosure of information on its financial condition, products and CSR and promotes transparent management practice in an attempt to help stakeholders gain a greater understanding of how the Group is run and decisions are made. All members of the Group are working vigorously and wholeheartedly to build CSR-oriented management with a high degree of reliability and transparency. We hope you will get to know the Group s range of undertakings discussed in this report, and we welcome your feedback and opinions. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 2

4 Editorial Policy The IBIDEN 2011 CSR Report, covering mainly the environmental and social aspects of the IBIDEN Group, is published to inform stakeholders about the IBIDEN Group s CSR activities in an easy-to-understand format. In recognition of the fact that CSR is closely linked to our corporate management, this report focuses on the key themes based on matters of interest to our stakeholders and our four themes internal control, human resource management, environmental management, and social contribution including in Implement CSR Management which is one of the pillars of our medium-term management plan. This report contains detailed information for our stakeholders on the Group s policies and measures with regard to each theme and task. Period Covered This report focuses primarily on activities during fiscal year 2010 (April 1, 2010 to March 31, 2011), but also includes details of selected ongoing initiatives and more recent activities. Date of Publication November 2011 (previous report: September 2010, next report: September 2012) Coverage As a rule, the contents of this report relate to IBIDEN Co., Ltd. ( we / IBIDEN / the Company ) and domestic and overseas companies belonging to the IBIDEN Group. Parts of this report that do not relate to the IBIDEN Group ( the Group ) are specified on an individual basis. Selected environment data are only applicable to IBIDEN s domestic premises. Such data are marked as IBIDEN domestic premises and include IBIDEN Co., Ltd. and selected domestic Group companies. Environmental performance date for the Group s operations centers on main production bases as bellow: Domestic premises Ogaki Plant, Ogaki Central Plant, Aoyanagi Plant, Gama Plant, Ogaki kita plant, Godo Plant, Kinuura Plant and including some Domestic Group which are covered by IBIDEN s management system. Domestic Group companies IBIDEN Jushi Co., Ltd.( Jushi ), IBIDEN Bussan Co., Ltd.( Bussan ) Overseas Group companies IBIDEN Electronics (Beijing) Co., Ltd.[ IEB ], IBIDEN Philippines, Inc.[ IPI ], IBIDEN Hungary Kft. [ IHU ], IBIDEN DPF France S.A.S. [ IDFS ] Guidelines Used as Reference Sustainability Reporting Guidelines (Third Edition), Global Reporting Initiative (GRI) Environmental Reporting Guidelines (fiscal year 2007 version), Ministry of the Environment Environmental Reporting Guidelines (fiscal year 2005 version), Ministry of the Environment Note: A GRI guideline comparison table can be found at the end of the report. Supplementary Information Regarding the Contents This report is intended for the stakeholders who are highly interested in CSR. The contents of the report consist of our stakeholders interests, the items for which they have great expectations or demands, and the matters for which the Group recognizes its responsibility. Disclosure of CSR Information The IBIDEN Group s CSR report is published on our website. We will update social and environmental information in an appropriate manner. Website Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 3

5 The IBIDEN Group s CSR Management Corporate Philosophy IBIDEN WAY Our Motto Integrity Harmony Positivity IBIDEN WAY We respect humanity and nature Respect for Humanity Harmony with Nature Our Virtues Customers First Corporate Philosophy We respect humanity and nature We create new values together with customers We contribute to constant social advancement Pursuit of IBI-TECHNO Challenge Teamwork Direct Observation Our Principles Employee s Code of Conduct The power that has enabled IBIDEN to overcome many adversities with all our employees and to continue to exist, and the wisdom and vitality that have achieved dramatic growth in recent years these have persisted throughout IBIDEN s long history of nearly 100 years. The systematization that carries this on, transcending borders, is the IBIDEN WAY. While respecting people and the global environment, we create new value together with our customers. Further, the hearts of our employees throughout the entire Group are united in our efforts to contribute to sustained development of society. Consolidated Medium-Term Management Plan We will implement Global IBI-TECHNO 100 Plan and establish a business structure that achieves sustainable growth as well as stable profitability. At the IBIDEN Group, we continue to propose new value to our customers based on IBI-TECHNO philosophy of Creating new technology by fusing and combining our own innovative core technologies. In accordance with Global IBI-TECHNO 100 Plan as our consolidated medium-term management plan, we are making IBI-TECHNO evolve yet further, establishing IBIDEN innovative business model, and making efforts intended to further augment our competitive strengths. In addition, by practicing management grounded in corporate social responsibility, the Group intends to achieve a continuing existence and to contribute to the development of society. Implement CSR management Cultivate our new third business after electronics and ceramics Strengthen and rebuild our core business competitiveness Three Pillars of Our Activities Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 4

6 CSR Policy and Scope of Activity IBIDEN Group Charter of Behavior In order to implement CSR management under our corporate philosophy, the IBIDEN WAY, we have revised the IBIDEN Group Charter of Behavior by reflecting our roles as a global corporation as well as requests from our stakeholders. To achieve the goals for the entire Group, we will promote activities for putting mediumterm goals into practice. Charter of Behavior (Goals for the Group) Medium-term Targets Action Plans Article 1: Compliance with laws, regulations, and ethics We comply with laws, regulations and ethical requirements of the countries and regions where its business operations are based. We work against corruption in all its forms, and carry out open and fair corporate activities with the intention of becoming a company that enjoys the confidence of the international community. We also protect and properly manage personal and customer data and other types of information. Article 2: Development together with stakeholders We develop together with our stakeholders, so we enhance the transparency of management and build a trustworthy relationship through communication. We also actively engage in community-based activities that contribute to society as a good corporate citizen. Article 3: Providing customer delight We provide customer delight, so we have a good understanding of social trends, future needs and develop. We provide safe and secure products and services to maximize our customer's satisfaction by growing IBI-Techno. Article 4: Management based on global standards We manage our group based on global standards. We respect human rights and other international norms of behavior. Also, we respect culture and customs in each country or region concerned when carrying out our corporate activity. Article 5: Harmony with nature We harmonize with nature in all areas of our corporate activities. We manage to develop technologies to achieve good balance between the environment and business, and we provide environmentally friendly products and services by promoting energy and resource conservation activities. Article 6: Attractive and vibrant company We aim to become an attractive and vibrant company on the basis of fair, equitable and result oriented employee evaluation personnel system. We aim to have a safe and comfortable working environment. We create a rewarding corporate culture that the employee can respect for each diversity, and fully exercise their skills and abilities. <CSR Policy> We aim to enhance our corporate value By raising awareness of the need for IBIDEN to act responsibly and honestly in the interest of sustainable operations By fulfilling our responsibilities in a well-balanced manner from an economic, environmental and social standpoint By working in partnership with all of our stakeholders. <Conceptual diagram of CSR management> Based on our four themes of internal control (such as corporate governance, compliance and risk management), human resource management, environmental management, and social contribution, we will implement activities in a wide range of areas and build a trustworthy relationship with all stakeholders. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 5

7 Dialogue and Cooperation with Stakeholders Since its operations began as a hydroelectric power generation business that provided electricity to the community, the IBIDEN Group has won the support of all residents in the community as well as many other people. The Group builds a trustworthy relationship with all stakeholders through communications to ensure sustainable development in the future. Community risk communication Safety training session for suppliers External Corporate Evaluation In recent years, attention has increasingly focused on socially responsible investment (SRI), referring to corporate investment from a social perspective, taking into account considerations such as the environment and social contribution rather than concentrating exclusively on profitability and other corporate and financial targets. Having been evaluated by an SRI evaluation organization, we have been selected for inclusion in the Dow Jones Sustainability Indexes (DJSI World, DJSI Asia Pacific) Morningstar s SRI Index. Furthermore, IBIDEN was selected for the bronze class in the CSR rating by SAM (Sustainable Asset Management), a representative SRI evaluation company, in fiscal year 2010 (as of June 2011). Assessment by Third-Party Organizations and Our Actions In order to objectively assess the status of CSR management, the IBIDEN Group receives the sustainable management assessment from the Sustainable Management Forum of Japan, an incorporated nonprofit organization. In March 2010, we underwent an assessment in the field of management and society. Evidence of our activities was checked by us and the organization, and an evaluation of our activity level was completed. As a result, we received an evaluation saying that our activities in the field of management, such as corporate philosophy, compliance, risk management, and corporate governance more or less meet the sustainable level proposed by the organization. In the field of society in which factors such as human resources and social contribution were evaluated, on the other hand, we were evaluated as on the way to a sustainable level, with some improvements to be made pointed out. Furthermore, in fiscal year 2010, we analyzed the data of a survey conducted by an external evaluation organization and identified the distance from our goals. At the same time, we took actions to deal with the CSRrelated auditing implemented by a third-party organization and confirmed the gap between demanding standards of the global industry and the IBIDEN Group s efforts. On receiving these results, we accepted with sincerity the matters pointed out by these organizations and the need to further improve the efforts by developing in-house regulations and procedures in terms of labor and human rights, providing thorough education, and promoting greater cooperation with the local community. We will continue to cooperate with external organizations in the future, with the aim of ensuring the fairness of our activities, and we will reflect the results in the activities. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 6

8 Internal Control Basic Approach to Corporate Governance (1) Objective Our Group defines corporate governance as a critical management issue for increasing corporate value through sustainable growth. The entire Group is actively committed to improving corporate governance. By strengthening our internal control functions through proactively developing activities for advancing compliance and risk management with an involvement of all officers and employees and by augmenting and strengthening the management-oversight functions of our Board of Directors and the audit functions of our auditors, we are creating a transparent corporate control system that can accommodate the reliance of our shareholders and society. (2) Governance Structure in Our Group To ensure the appropriateness and fairness of business conducted by the IBIDEN Group companies, IBIDEN has suggested to the heads of the Group companies a structure designed to advance compliance and risk management similar to its own. At Group information exchange meetings, it keeps abreast of their actions advocating compliance and risk management, their status of management and progress made to meet the targets mapped out in their plans for profit generation. (3) Overview of Corporate Governance To ensure fair and highly transparent management, IBIDEN invites two persons to serve as outside directors on the Company s Board of Directors to reflect their advice in the management of the Company. The maximum number of directors is set at 18, while the term of each director is limited to one year to clarify management accountability of each director, strengthen management practices and enhance the agility needed to implement optimal management practices in quick response to the changing business environment. An executive officer system has been introduced to allow swift managerial decision-making and accelerated business execution. IBIDEN has elected to operate as a company with corporate directors and a Board of Corporate Auditors. In conducting day-to-day business, appropriate and efficient execution of duties by a person authorized to make approvals is ensured by the introduction and utilization of electronic approval-processing tools, which are used for ordinary approvals and approvals for capital investment. (4) Relationships with Stakeholders and Timely Disclosure Aware of its mission to increase corporate value and meet shareholder expectations, the Group understands that it must fulfill its responsibilities with respect to employees, local residents, local communities, business partners, investors, and other non-shareholding stakeholders. For this reason, we have instituted the Disclosure Regulations to facilitate proper assessments of our Group. Our aim is to help stakeholders understand the Group and to win their broad consent to reconciling their interests of different stakeholder groups. With the decision of the Disclosure Committee, consisting chiefly of the president and the director responsible for finance sections, management information is disclosed in a fair, timely, and appropriate manner. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 7

9 Summary of the Existing Corporate Governance Systems Summary of the Existing System and Reasons for the Use of the Existing System With regard to the operation of the Board of Directors, we have asked two outside directors to join and provide their management advice in an effort to realize fair, highly transparent management. For the designation and determination of remuneration, we also have in place fair, transparent procedures. IBIDEN clarifies the directors management responsibility and strives to strengthen the management structure. A director s term of office is set at one year to respond to changes in the business environment and build an optimum, flexible management structure. Furthermore, IBIDEN has introduced an executive officer system to facilitate speedy management decision-making and further acceleration of business operations. As for the decision-making by the Board of Directors and business operations by the President and CEO, they are audited by the Board of Auditors, and each auditor has the ability to take strict action. Matters Related to Outside Directors Two outside directors are appointed to ensure their contribution to IBIDEN s appropriate corporate governance as well as their advisory functions for the corporate code of conduct. They work in an appropriate manner to make necessary statements with regard to the agenda and discussion at the Board of Directors meetings, taking actions required to fulfill the above-mentioned objectives. Measures to Enhance Auditors Functions Auditors participate in major meetings, such as the Board of Directors and the Management Conference, and audit the execution of their duties. Furthermore, in collaboration with the Audit Division, which is the internal auditing division, as well as accounting auditors, full-time auditors conduct audits for IBIDEN and Group companies based on existing laws and provisions. Description Regarding the Status of Ensuring Independent Officers At IBIDEN, two outside directors and two outside auditors are appointed as independent officers. This is because IBIDEN has judged that they will contribute to the appropriate corporate governance and advice on the corporate code of conduct, and there is no conflict of interest with general shareholders. In addition to the corporate governance structure described above, the Company has set up a Management Conference to fortify its structure. Composed of parties responsible for management decisions and business execution such as representative directors, directors, executive officers and managing officers, in addition to full-time corporate auditors, the Management Conference is authorized to conduct advance deliberations on matters to be placed on the agenda of the Board of Directors and is authorized, under the Company s rules on authorizations, to approve such items. It also deliberates and makes decisions on important matters including management of the progress made in yearly and monthly budgets and managerial issues. IBIDEN s executive structure is listed in the Company Profile on page 45 and the schematic diagram of the corporate governance systems on the next page. Corporate Governance Related to Other CSR Promotions IBIDEN Group Charter of Behavior and Corporate Governance Recognizing that efforts on a companywide scale, including management, are required to achieve the spirit of the Group s Charter of Behavior, IBIDEN encourages both internal personnel and group companies and suppliers to comply thoroughly with the Charter while the management takes the initiative in setting an example. Furthermore, we continually grasp internal and external feedback in order to establish an effective in-house organization. Should a condition arise that is contrary to the Charter, the management will work to resolve the issue and clarify its attitude internally and externally, seek to identify the cause and prevent a recurrence. Moreover, we will disclose information to the public promptly and appropriately and ensure accountability to the public, taking strict actions once authority and responsibility are clarified. Appointment of a Management Person Responsible for Promotion in Each Division A management person responsible for promotion is appointed in each division. He or she plays a role in promoting CSR activities and compliance in the relevant division, supervising the practice of compliance, providing education to members of the division and reducing and reporting compliance violations that occur in the division. IBIDEN holds the CSR Promotional Manager Meeting, in which officers responsible for its promotion gather four times a year. At the meeting, we confirm the items promoted companywide and their progress and share examples of promotion activities implemented at plants and group companies. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 8

10 Diagram of Corporate Governance System Compensation of Directors and Corporate Auditors Total remuneration of directors and corporate auditors by classification, total remuneration by type, and number of directors and corporate auditors receiving remuneration. Classification Number of recipients (Persons) All directors External directors only All auditors External auditors only Amount paid (Millions of yen) Number of recipients (Persons) Amount paid (Millions of yen) Number of recipients (Persons) Amount paid (Millions of yen) Number of recipients (Persons) Amount paid (Millions of yen) Basic remuneration Bonuses Stock options Total The number of individuals receiving payments mentioned above included two directors and one auditor who retired at the conclusion of the 157th general shareholders meeting held on June 22, The resolution setting the upper limit of remuneration for the directors at not more than 45 million per month was approved at the 154th general shareholders meeting held on June 22, Of the total, the amount for outside directors accounts for 3 million or less, with the remaining 42 million or less paid to the other directors. Compensation under stock option plans is set separately. Salary for directors as company employees is also excluded from the figures. 3.In addition to the remuneration and the compensation under stock option mentioned above in 2, at the 155th general shareholders meeting held on June 24, 2008, the resolution was approved stipulating that directors, excluding the outside directors, are to receive as bonus equal to 0.3% of the consolidated net income for the fiscal year as well as 1.0% of the total amount of annual dividends for the applicable fiscal year. However, the maximum limit was also set at not more than 400 million by the resolution with amounts less than 1 million being rounded down. 4.The maximum limit of remuneration for corporate auditors was approved at not more than 6 million per month at the 145th general shareholders meeting held on June 24, With regard to 116 million yen, the amount paid as the directors bonus mentioned above, the payment was decided at the Board of Directors meeting held on May 18, In addition to the amount paid mentioned above, 1 million yen has been reported, for a director of the Company, as current expenses related to the stock option granted when he or she was an employee. 7.In addition to the amount paid mentioned above, 47 million yen has been paid to the two directors of the Company who concurrently serve as the directors of the Company s subsidiaries as basic remuneration during the current period in relation to the two subsidiaries concerned. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 9

11 Risk Management Basic Approach With respect to risks to corporate value that can have major impact on the smooth management of operations by the group, we enable continuation of operations by reducing and preventing recurrence of loss of corporate value for all stakeholders. Action Plan 1. We devote efforts to maintaining the safety and health of employees and business partners and to conserving operating resources. 2. We conduct ourselves so as not to impinge upon the safety, health, or profits of our shareholders, customers, and local and international society. 3. In cases where risk is manifested, we work to achieve prompt response and recovery through responsible action. 4. We reflect social demands related to risk in our risk management. 5. We provide required information in order to avoid or reduce possible damage caused by misunderstanding and a lack of understanding. Structure for Advancing Risk Management The Group has established Risk Management Regulations to create a risk management structure, emergency countermeasure and evaluation of its performance. We also created the Risk Management Company-wide Promotional Committee, which is tasked with improving risk management. The Risk Management Companywide Promotional Committee is responsible for considering and deciding on general risk management issues. It also examines and monitors the progress of actions to address major risks. To execute the policy endorsed by this Committee, a risk owner is appointed to carry out activities geared to IBIDEN s circumstances and business model, as well as with those of its Group firms. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 10

12 Addressing Risks The IBIDEN Group undertakes risk management activities so that we may continue to reliably conduct our business operations. We regularly detect and assess risks to reduce risks in important areas: operational divisions are working on the risks related to strengthening our business competitive edge, while functional divisions are addressing the risks bringing serious repercussions to the Company s business. In fiscal year 2010, focusing on the risk of legal violation as a companywide risk, we built a legal compliance system and implemented measures for managing legal compliance at each functional division. As for measures to be taken when disasters such as earthquakes occur, we believe that lifesaving comes first, followed by the early supply of products to customers. To prepare for earthquakes, we not only check each building s resistance to earthquakes but also determine the items, matters and divisions for actions to be taken in regard to damage prevention and anticipation. We also create a list of suppliers so that we can promptly take steps when earthquakes or other disasters occur. CSR Management in the Supply Chain To earn the trust of international society while operating business globally, both the Group and the entire supply chain must responsibly take actions that respond to social demands. IBIDEN disclosed requests to suppliers, based on its basic purchasing policies, in fiscal year 2008 and held a briefing session for 100 suppliers the next year, confirming the status of their measures. This enabled us to confirm the gap in measures among the suppliers and recognize the necessity of management that has led to more specific improvements in the supply chain. In fiscal year 2010, IBIDEN discussed the tasks to be tackled by our suppliers and their management according to the IBIDEN Group Charter of Behavior and developed a supply chain management plan that has led to improvement activities. We divided the items desired for the entire supply chain by our customers, industries and internal society into dimensions such as labor, human rights, ethics, health and safety, and environment, and considered guidelines for implementation. In fiscal year 2011, we will summarize these guidelines and publish the IBIDEN Group Supplier CSR Guidelines, and implement supplier surveys based on the Guidelines as well as the visit to their facilities. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 11

13 Compliance Basic Policy By achieving thoroughgoing commitment to compliance with domestic and international laws, our articles of incorporation, internal regulations and corporate ethics and through open and fair corporate activities, we aim to be a company that international society relies on. The IBIDEN Group adopted the IBIDEN Standards for Employee Behavior in December 1998 and the Compliance Promotion Regulations in August 2003, to facilitate its compliance activities. We continue to increase awareness of compliance, adopting a management approach that seeks to earn the trust and respect of all stakeholders. Standards for Employee Behavior The Group has long since stepped up its commitment to compliance, following the introduction of the IBIDEN Standards for Employee Behavior - Employees Code of Conduct. As our overseas operations rapidly expand with the construction of plants in the Philippines, China, France, and Hungary, we must now ensure compliance with international rules as well as with laws and regulations prevailing in the countries where we do business. Recognizing this, the Group undertook a full review of its compliance program to improve the framework and revised the IBIDEN Standards for Employee Behavior in fiscal year At the Group, all officers and employees are determined to respect the Standards for Employee Behavior and create a group of companies that are good corporate citizens in the eyes of the international community. Structure for Promoting Compliance Program In August 2003, the Compliance Company-Wide Promotional Committee headed by the president was formed in an effort to bolster compliance-related awareness across the Group. The committee carries out group-wide, pro-compliance activities and reviews such undertakings. Compliance-related policies and plans decided by the committee are communicated to each plant, which in turn rolls out individual actions in accordance with them. All group companies both in Japan and abroad have set up their own compliance organizations mandated to formulate and conduct individual actions. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 12

14 Bolstering Compliance Activities Compliance Education The Company runs a broad array of education programs including level-specific and workplace-specific training designed to enhance employee awareness of the importance of compliance. These programs include group discussions on causes of violations of the Employees Code of Conduct and actions taken in response to the violations. They educate every single trainee in consciously deciding on the right action in a given situation. We continually provide our own CSR portal site on the intranet and examples of compliance practices in our internal magazine and on the intranet as another way to improve staff awareness. Whistleblowing System After learning of any suspected compliance violation in the Group, employees are generally required to report it, to consult, and to take action using the chain of command between the superior and the subordinate. We have, however, established a compliance consultation service for quickly solving any problem that cannot be reported through the usual channels. The service is available not only to employees of IBIDEN Group companies but to all those working for the Group. We provide three access channels to facilitate consultation: one inside the Company, another at a lawyer s office, and the other at an outside organization. In fiscal year 2010, we provided consultations in 54 cases for the entire Group in Japan. Although most of the consultations were related to the issues that could lead to issues related to potential harassment case and labor management, none of them significantly affected our business activities. Moreover, at workplaces where problems were observed, seminars and other events are held individually to prevent recurrence. To discover and deal with problems as early as possible, we will continue our educational activities to enhance our reliability by offering a consultation service that can be safely used by those who seek consultation. In addition, we will set up a consultation service for our supplier in fiscal year We will create an environment where we not only offer consultations internally but also gather valuable feedback on IBIDEN s compliance from our regular supplier. Self-Check To clarify compliance issues at plants, a self-check on morality, security, and respect for human rights is conducted once a year on a plant-by-plant basis. Any problem identified in this process will be addressed through remedial activities specific to the plant. Employees holding managerial posts are required to submit themselves to annual self-testing to measure their understanding of the IBIDEN Standards for Employee Behavior and their state of compliance with the standards, for identification of topics that are not fully understood. Case studies illustrating compliance-related issues that many test-takers failed to answer correctly are published to increase their understanding. Revision to the Standards for Employee Behavior The IBIDEN Standards for Employee Behavior are continually evolving in light of the globalization of our expanding business operations. Taking into consideration the expectations of our stakeholders, we add and revise provisions on worker rights with which we must comply as internal standards. We have also established the Standards for Employee Behavior based on such international standards at our main production plants overseas, and we are making efforts to provide thorough education on human rights and ethics according to these standards. Upon the revision of the IBIDEN Group Charter of Behavior, in fiscal year 2011, IBIDEN will reorganize the Code of Conduct so that employees who must comply with it can understand it more easily, and we will continue our efforts to promote their compliance. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 13

15 Human Resource Management In line with the values on Respect for Humanity included in the IBIDEN WAY, we are committed to respecting the creativity and personality of each and every employee and to value a corporate culture that allows its diverse human resources to fully display their knowledge and capabilities. Respect for Human Rights In its Standards for Employee Behavior, IBIDEN clearly defines its basic policy to support and respect the protection of human rights as well as to avoid involvement in any violation of human rights. Furthermore, officers and employees respect the basic principles and rights of labor and take actions that follow common sense and rules of society while complying with the employment-related laws of each country such as the Labor Standards Law and labor regulations. IBIDEN also offers education on fair employment and human rights to employees in charge of human resources and labor, IBIDEN Standards for Employee Behavior and distributes the Standards for Employee Behavior and example booklets, a collection of violation examples, to all employees at the time of hiring. We educate our employees regarding the Standards for Employee Behavior, including human rights, in our new employee training or education programs offered at the time of hiring. For the Group to make advances in human rights initiatives, the cooperation of the entities comprising the entire supply chain beyond the Group is indispensable. In our letter addressed to suppliers, we specifically request that labor-related human rights be observed, including bans on child labor and forced labor. In addition, we confirm the state of compliance by suppliers by sending out periodic questionnaires. In the Supplier CSR guidelines, in fiscal year 2011, we will summarize specific items to be tackled by our suppliers regarding labor and human rights as well as their management. We will then implement surveys and visit their facilities. Employment and Development of Human Resources Development of Global Human Resources The Group has actively expanded its overseas business, and is continuing to accelerate the globalization of its business activities. For fiscal year 2010, more than 75% of our sales were made outside of Japan. We need to recruit and develop human resources capable of managing local operations from a global standpoint by interacting with different cultures. We provide cross-cultural programs for employees who are visiting or are assigned to overseas locations and we make company-wide efforts to upgrade their practical language skills. We also focus on nurturing the Language training core staff of our overseas entities by inviting them to participate in training programs in Japan. In addition to the above, we introduce various programs and training to help each staff member display his or her creativity and individual personality. It is essential that we promote self-development by fostering a culture of self-learning, measure and give feedbacks on the effects of education, offer timely and appropriate education to all employees, and nurture human resources capable of implementing company-wide education led by each division. To achieve these goals, we have introduced an e-learning system with our original contents in an effort to build a more effective HR development system. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 14

16 Development of Human Resources through IPM* Activities Under the principle of the Company-wide human resource development combined with IBI-TECHNO 4, IBIDEN pursues sustainable growth as a company through IPM activities while striving to provide skill development training that employees are motivated to take voluntarily. Creating new technology by fusing and combining our own innovative core technologies is the philosophy of IBI-TECHNO. In the changing market and business environment, we carry out IPM activities that advance and integrate the four IBI-TECHNO capabilities: Management of Business, Management of Technology, Total Productive Management, and Management Capability We will create our own unique management techniques and grow sales and profits as well as personnel through IPM activities. Our business creation project involves four working groups that advance and integrate the four IBI-TECHNO capabilities which practice IPM activities and build our innovative business model while producing positive results. Basic activities of this project come from connecting the problem-solving skills and systems obtained from this project with human resource development efforts and continuously making improvements as a teamwork activity. Through this teamwork activity, we aim to achieve management of the Company by every employee that directly links the self-realization of employees to the Company s profits. Management of Business Ability to construct a business Ability to become No.1 in customer satisfaction Ability to generate ongoing profits Management of Technology Management of Technology Ability to understand market and customer needs Ability to achieve the development goals Cross-industrial integration ability Use of experts Management of Business Management Capability Management Capability <Underlying capability for all management> Capability to plan and operate the business Capability to manage Operating the management system Total Productive Management Total Productive Management San-Hozen activity (integrating quality maintenance, autonomous maintenance, and planned maintenance) Ability to launch design QCD QCD competitiveness during stable mass production *IPM: IBIDEN Profit Management *IBI-TECHNO 4: We will strengthen and evolve Total Productive Management, Management of Technology, Management of Business and Management Capability, which we have been enhancing, through improvement and innovation with all members. Respecting Diverse Work Styles Along with the progress in globalization and diversification of values, IBIDEN strives to realize a working environment and culture that allow a wide variety of employees to demonstrate their unique abilities and find their life and work meaningful. Supporting Work Life Balance Actively following the Japanese government s action guidelines designed to encourage the work-life balance, IBIDEN is building and operating mechanisms and programs appropriate to our status as a global enterprise. In fiscal year 2010, we revised the rules and regulations and reviewed their use in response to the amendment to relevant laws with the aim of reaffirming employees understanding of the Company s work-related rules and regulations. At the same time, we revised the Labor Management Guidebook and organized an internal briefing session. To create a working environment that allows employees to work positively and vigorously, we will review and consider a discretionary labor system and other working arrangements, and further encourage employees to take annual paid leave for fiscal year 2011 and after. Promotion of Female Advancement The labor force in Japan is decreasing as the birthrate drops rapidly. In these circumstances, we must urgently secure and develop competent human resources. It is necessary to provide capable and motivated female employees with opportunities to take proactive actions in order to secure human resources with an ideal mix of personalities, regardless of gender, and help them demonstrate their abilities to the fullest extent. Since fiscal year 2010, with the goal of reforming our corporate culture and working environment and diversifying work systems, we have been implementing group-wide activities to promote female employees efforts, providing support to them on the job and at home so that everyone can Educational training for female employees continue to work as productively as possible. In fiscal year 2009, we started a working group consisting of female employees in order to grasp IBIDEN s current situation and clarify tasks. In fiscal year 2010, we offered educational training to facilitate female employees active roles and created a parenting handbook. We will continue to support the proactive actions of female employees through Growing corporate culture, Career development and appointments and Supporting worklife balance, so that women with abilities and motivation can be active at all stages of their lives. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 15

17 Three Core Activity Areas Growing corporate culture We hold various events and training sessions to raise awareness throughout the Company and communicate these activities through our company bulletin. Career development and appointments We introduce educational programs to further enhance the ability of ambitious women and develop and introduce ideal role models for our female employees. Supporting work-life balance We implement childcare leave, short-term working hours and other programs to support a work-life balance so that both men and women can continue to work while they raise children. We introduce these programs by issuing a childrearing handbook. Employment of Persons with Disabilities There are a healthy number of active employees with disabilities at the Company. The number and percentage of employees with disabilities in fiscal year 2010 was 40 ones and 1.94%, respectively (Please refer to the Graph Tends in the number of employees with disabilities.). We will continue to respect the philosophy of normalization and maintain a working environment in which employees with disabilities can fully demonstrate their abilities. Post-Retirement Reemployment System We instituted a post-retirement reemployment system in fiscal 2004 to enable our most experienced employees to display their capabilities as part of our valued workforce. Trends in the number of employees with disabilities [IBIDEN] Track record of the leave programs [IBIDEN] Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 16

18 Labor and Management Cooperation to Create a Worker-Friendly Workplace Through a relationship of mutual trust, both the management and workers of IBIDEN work together to create a workplace that is friendly for all employees. (In fiscal year 2010, all employees excluding managers belonged to the labor union.) The Labor and Management Gathering and the Labor and Management Committee are held every month to deliberate on ways to improve the working environment so that employees can safely work toward the goals of their workplace. In fiscal year 2010, negotiations were held between labor and management with a focus on cooperation-related themes, such as working-hour management, creation of a worker-friendly workplace and improvement in personnel systems. Working Hour Management In an effort to raise employees awareness of working-hour management, we have them use the attendance system to check their data, which is designed to ensure accurate working hours, and promote the reduction of overtime work. We aim to enhance business efficiency by encouraging our employees to understand working hours and by reviewing the business process and systems. Creating a Worker-Friendly Workplace We develop an environment, such as one featuring a break room, that encourages communication in the workplace. We also promote the active involvement of female employees as well as improvement in physical and mental health. We will enhance our activities by considering training programs to support female employees active involvement and integrating example-based mental health education that targets officers and workplace leaders in our educational systems for each tier. Constitution of employees[ibiden] Number of employee by business segment [IBIDEN Group] FY 2009 FY 2010 Number of employees Persons Managerial positions Persons Officers Persons Average age Years Length of service Years Number of workers who left the Company Persons Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 17

19 Occupational Health and Safety - Basic Policy We conduct the health and safety activity done with all concerned people under IBIDEN WAY, and aim to harmonize health and safety and operation with the fundamental rule to minimize the risk that may affect the life and health of person participating to IBIDEN s operations. Occupational Health and Safety Policy 1. We will identify the sources of risks associated with each process in our corporate activities and take steps to prevent labor accidents and illnesses. We will strive to reduce the risks and to maintain and enhance the physical and mental health of our employees. 2.We will provide a good working environment that allows all employees to work vigorously without anxiety. 3. We will comply with laws and regulations relating to occupational health and safety and with other recognized requirements. 4. We will operate an occupational health and safety management system to ensure that every employee engages in occupational health and safety activities and to make continued improvements to attain our occupational health and safety goal. 5. We will ensure that every employee is aware of our occupational health and safety policy, using occupational health and safety cards and other means to raise their awareness of occupational health and safety and encourage proactive behavior. 6.We make this policy public and we make it available any time when requested. We also make this policy available on our website. Organization Chart of Occupational Health and Safety Management Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 18

20 Measures for Safety While the occupational accident frequency rate of the Company and domestic Group companies is below the national manufacturer average, 33 work-related accidents including near injury and minor injury still occurred in fiscal year To take occupational health and safety a step further, we conducted an analysis of the past occupational accidents and devised measures to control unsafe actions that could directly trigger accidents and hazards. In fiscal year 2010, we enhanced training programs geared to employees with less experience, while in fiscal year 2011 we are paying greater attention to work processes performed manually in our risk assessment and The Companywide Zero Accident Committee formulation of countermeasures. By identifying specific risk-prone areas and administering systematic corrections, we strive to eliminate occupational accidents. The Companywide Zero Accident Committee, whose membership consists of the persons in charge of promoting occupational safety and health at the seven IBIDEN Plants and 14 Group companies in Japan, meets each month to discuss causes of occupational hazards and occupational safety issues and exchange information on changes in relevant laws and regulations. In addition to conducting its own safety and health campaigns, it is, beginning from fiscal year 2010, responsible for familiarizing contractors performing work on IBIDEN premises with our safety standards. The Construction Safety Promotion Committee meets regularly to specifically address actions to be undertaken together with contractors. By working closely with relevant stakeholders, IBIDEN is determined to strengthen group-wide activities for enhanced occupational safety and health. Number of Occupational Accidents [IBIDEN and Domestic Group companies] IBIDEN Domestic Group Companies Fatalities 0(0) 0(0) Accidents requiring leave Accidents not requiring leave 4(2) 4(6) 8(8) 3(3) Minor injuries 12(9) 2(3) * The figures in parentheses represent the numbers of occupational accidents in fiscal year 2009 Occupational accident frequency rate* * Number of occupational injuries (be equal or more than accidents requiring leave) for every million cumulative actual working hours Managing Employee Health Health 100 Plan To create a working environment that allows employees to work positively and vigorously, it is also important to help them improve their physical and mental health. Since fiscal year 2008, IBIDEN has been dedicated to the improvement of employee health through the 5-year Health100 Plan. Beginning with fiscal year 2009, health demonstration sessions consisting of blood pressure checks and measurement of the age of blood vessels have taken place at workplaces and Group companies. In fiscal year 2010, we implemented employee health support activities, including offering a healthy menu at the Company s cafeteria. Furthermore, we ensure that all employees use the e-health Check System, which allows each employee to check the degree of his or her mental and physical stress, to identify and deal with any mental health issues as rapidly as possible. In addition to these measures, we conduct mental health training for each Health check activities at workplace tier as part of our efforts to provide mental and physical care to employees. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 19

21 Environmental Management Keeping environmental preservation in business in mind, we will thoroughly eliminate the loss of resources and energy in order to contribute to social development efficiently. We will dedicate ourselves to environmental protection by offering technologies and products designed to reduce the environmental burden. Environmental Management - Basic Policy We conduct the environmental load reduction activity with all concerned people under IBIDEN way, aim Harmony with nature" by reducing the bad effect on global environment generated in our business operation, and fulfill the role as enduring company. Environmental Policy 1. We contribute to protecting the global environmental by minimizing the environmental burden in every process of our company s activities. We especially value water and its benefits to the Earth. 2. We continuously promote positive and effective use of clean energy by developing and improving ecotechnology that saves energy and resources. 3. We comply with environmental rules and regulations of domestic and international countries. We set our own standards and advance our environmental management capabilities. 4. We encourage all employees to share the purpose and goals of environmental protection and devote themselves to environmental protection activities. We accomplish this by utilizing an Environmental Management System. 5. We publicize this environmental policy by distributing a Policy Carrying Card to promote awareness of environmental protection and to inspire each employee to act voluntarily 6. We make this policy public and we make it available any time when requested. We also make this policy available on our website. Organization Chart of Environmental Management Grounded in values that emphasize harmony with nature, we are working group-wide to promote environmental management. With the president as the head of the companywide environmental management system, we have established the workplace-based Environment Committee led by the head of each workplace to facilitate environmental management. Other group-wide environmental activities include monthly training camp addressing topics such as global warming prevention and water treatment. Conferences of the persons responsible for advocating environmental preservation appointed by the respective business operations and the global environmental conference are also held to ensure cross-sharing of information related to environmental conservation by the entire IBIDEN Group. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 20

22 Management System Certification Status Domestic group companies certified with ISO and OHSAS We are pursuing ISO14001 certification with an in-house system as the means to continuously improve the environmental footprint caused by the Group s activities, products and services. Together with IBIDEN Electronics Industries Co., Ltd., IBIDEN Graphite Co., Ltd., IBITECH Co., Ltd. and IBIDEN Engineering Co., Ltd. (water treatment division), which are directly linked to our business activities, we obtained ISO14001 certification in January 2000 and OHSAS18001 certification in March 2003*. In June 2009, IBIDEN Jushi Co., Ltd. obtained ISO14001 certification, and the Godo Plant acquired ISO14001 and OHSAS18001 certifications and a certificate of compliance at the regular audit in January. In fiscal year 2011, we will work to build a management system that integrates both ISO14001 and OHSAS18001 certifications. * OHSAS18001: A standard for occupational health and safety management systems. OHSAS stands for Occupational Health and Safety Assessment. Name of the Group Company Acquisition Status of the ISO14001 and OHSAS18001 Certifications for Domestic Group Companies IBIDEN* IBIDEN Engineering (Head Office) IBIDEN Greentec IBIDEN Bussan IBIDEN Industries IBIDEN Jushi ISO14001Cert. Jan Oct Mar May Sep Jun OHSAS18001Cert. Mar Planning *IBIDEN Domestic Premises (Ogaki, Ogaki Central, Aoyanagi, Gama, Ogaki-kita, Kinuura, Godo) and including some Domestic Group (IBIDEN Electronics Industries, IBIDEN Engineering (Water treatment Section), IBIDEN Graphite, IBITECH, IBIDEN KENSO). Overseas group companies certified with ISO and OHSAS In our Group, not only Domestic group companies but also Overseas group companies are working to obtain ISO14001 and OHSAS18001 certification. In 2007, IBIDEN Electronics Beijing Co., Ltd. renewed its certification through an extended exam process with expanded coverage to its second plant in January, followed by IBIDEN Hungary s certification in February. In the future, we will continue with efforts to obtain the ISO14001 certification and to strengthen our environmental management. Acquisition Status of the ISO14001 and OHSAS18001 Certifications for Overseas Group Companies Name of the Group Company IBIDEN Philippines IBIDEN Electronics (Beijing) IBIDEN Electronics (Shanghai) IBIDEN Hungary ISO14001Cert. Jun Jul Feb Feb OHSAS18001Cert. Planning Mar Planning Environment and Occupational Health and Safety-Related Laws and Regulations IBIDEN focuses on compliance with laws and regulations related to the environment and occupational health and safety. We aimed to achieve zero violations in fiscal year 2010, but received administrative guidance twice from the concerned government ministries in Japan. We promptly improved the compliance issues pointed out by the ministries through the Workplace Environment Committee. IBIDEN has no record of penalties or sanctions related to violations of environmental laws and regulations. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 21

23 Coping with Climate Change Issues Through private power generation activities to supply clean energy as well as energy conservation efforts in manufacturing activities, we are working to reduce direct greenhouse gas emissions. To upgrade our private power generation systems, we are boosting our hydroelectric power generation capacity, improving thermal power generation efficiency, and promoting fuel conversion. With regard to energy conservation efforts in manufacturing activities, we are accelerating the improvement of energy conservation practices throughout the Company by strengthening companywide CO2 reduction activities, while all manufacturing divisions manage the basic unit of energy consumption and set specific targets for each division. Measures to Supply Clean Energy The IBIDEN Group can trace its history back to a scheme aimed at building a hydroelectric power plant upstream on the Ibigawa River to supply power and attract industry and thereby help revitalize the nearby city of Ogaki. The Group was established under the name Ibigawa Electric Company in 1912, but over time began to utilize electricity to evolve into an electrochemical company. We have continued to expand our business since then, including areas such as carbides, carbon, building materials, ceramic products and electronic products, as we have grown and developed hand in hand with local communities. IBIDEN owns three hydroelectric power plants in the upstream section of Ibigawa River in Gifu Prefecture. Hydraulic power generation uses the potential energy of water to create clean energy without greenhouse gas emissions. We introduced a co-generation system in 1992 to use clean energy instead of purchased electric power, increasing our clean energy supply. While generating power from turbines that operate by fuel combustion, this system also uses waste heat to produce steam, which is then used in factories. As a consequence, the system excels in energy efficiency. In addition, we recently introduced large-scale solar power systems on the rooftop of our head office building in November 2005 and in the Ogaki Central Plant in March As a result of our initiatives in clean energy, the CO2 emission factor for the electric power consumed is nearly half that of the purchased electricity. We are consistently trying to increase our use of natural energy such as hydroelectric power and solar power and improve the efficiency of a co-generation system with a high level of environmental performance. As a consequence, power we generated in-house supplied nearly 60% of the power we consumed in fiscal year We have successfully reduced CO2 emissions by approx. 97,000 t- CO2 (for fiscal year 2010) from the quantity emitted to generate purchased electric power. Hirose Power Plant Power output: 8,000kW Kawakami Power Plant Power output: 4,100kW IBIDEN Systematically renews the water supply tunnels and the power generation systems to continually upgrade maximal power generation capacity and enhance efficiency. Trend in electric power use [IBIDEN domestic premises] Higashi-Yokoyama Power Plant Power output: 13,600kW Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 22

24 A Shift in Fuels To encourage the use of clean energy, we are moving away from petroleum-based fuels, in favor of gas-based fuels that emit less CO2. In fiscal year 2006, we built liquefied natural gas (LNG) satellite facilities in partnership with a local gas company to give ourselves the ability to use LNG. This led to 94% in the fossil fuel gasification ratio on annual average and the reduction of CO2 emissions by 4.4 kt in fiscal year (Please refer to the Graph Percentage of shift in fuels.) LNG: Liquefied Natural Gas Energy Conservation While striving to strengthen our manufacturing system, all divisions throughout the Company are making energy conservation improvements to reduce the CO2 emissions unit load. Each month, we hold a training camp where members from all divisions of the Company take part in energy conservation activities to combat global warming. The manufacturing division and the related functional divisions meet to hold repeated discussions, create an activity plan, report on their progress, and disclose relevant cases to share information on improvements. With our Management s advice, we follow the PDCA cycle to improve energy conservation. Globally, we aim to improve energy conservation by 3% annually based on the CO2 emissions unit load per production volume for fiscal year In fiscal year 2010, total CO2 emissions rose due to our increased production volume and the launch of new plants. Nonetheless, we successfully reduced the CO2 emissions unit load by 12% per production volume from that in fiscal year (Please refer to the Graph CO2 emission andco2 emission unit load rate.) Details of Energy Conservation Improvements in Fiscal 2010 Three-pillar initiatives Details 1.Energy conservation conscious design of new facilities 2.Horizontal deployment of energy conservation improvements 3.Enhancing energy control standards CO2 reduction through energy conservation activities Improves the air-conditioning system by introducing turbo refrigerating machines and efficient chillers Builds a framework for horizontal deployment of improvements by creating a score sheet for all divisions Reviews the energy control standards of domestic utilities and restores the deteriorated portions 35,500t-CO2 Percentage of shift in fuels [IBIDEN Domestic Premises] CO2 emission and CO2 emission unit load rate (per production volume) [ IBIDEN Group ] * The above rate is calculated at the rate of 100 percent of the result of fiscal year Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 23

25 Resource Circulation Resource Circulating Activities IBIDEN believes that it is an important responsibility of businesses to make effective use of the world s scarce resources and to take part in a global effort to conserve resources. We promote the so-called 3R activity, which consists of initiatives to Reduce, Reuse and Recycle the resources we consume. In doing so, we aim to improve the resources efficiency. Since 2004, IBIDEN has been maintaining a zero-emission* status in terms of solid waste. The IBIDEN Group sets an index to control solid waste per production volume and has been taking action to implement such control. Based on the production volume unit load for fiscal year 2008, we aim to improve it by 1% annually. The production volume for fiscal year 2010 increased from the previous year, but nonetheless, we successfully reduced solid waste per production volume by 5% compared from that in fiscal year (Please refer to the Graph Amount of solid waste and Solid waste unit load rate.) *IBIDEN defines zero emission as a state in which no solid waste emitted from the production process is dumped in landfills. Effective Utilization and Reduction of Water Resources (Water Conservation Efforts) A large amount of water resources is used in the manufacturing process of electronic products, particularly for cleansing. Even though there is abundant underground water in Ogaki City in Gifu Prefecture, where our domestic manufacturing bases are concentrated, water shortages are a serious problem in the world today. Based on the principle of so-called 3R activity initiatives to reduce, reuse, and recycle resources the Group carries out business activities by integrating environmental technologies into manufacturing technologies, which has reduced the amount of industrial water use. To ensure the optimum control of wastewater and effluent and the facilitation of 3R activity for water resources, since fiscal year 2008 all concerned divisions have been meeting every month for a full day of discussion to confirm and report on the progress. The IBIDEN Group sets a benchmark for managing the water withdrawal per production volume. Our target is a 3% improvement per year, with the basic unit of the production volume (water withdrawal rate) in 2008 as the benchmark. In fiscal year 2010, although we experienced some losses due to facility expansion or startup in preparation for mass production, the water withdrawal rate for fiscal year 2010 achieved a 23% decrease compared to fiscal year We will continue our commitment to reducing the water withdrawal rate at all plants by means of water conservation and recycling activities. (Please refer to the Graph Water withdrawal and Water withdrawal unit load rate.) Amount of solid waste and Solid waste unit load rate [IBIDEN Group] * The above rate is calculated at the rate of 100 percent of the result of fiscal year 2008 Water withdrawal and Water withdrawal unit load rate [IBIDEN Group] * The above rate is calculated at the rate of 100 percent of the result of fiscal year 2008 Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 24

26 Appropriate Chemical Control Responding to the Regulations regarding Chemical Substances in Products and Manufacturing Processes IBIDEN uses various chemical substances in the plating process. Since chemical substances may cause pollution and human health hazards, we practice rigorous control to prevent chemicals from causing harm. We are reducing the use of or even eliminating certain chemicals. We operate the Chemical Control Committee as an internal organization, establishing a system to swiftly identify and respond to community demands related to chemical substances as shown in the REACH system in Europe. We have also started to operate the systems for chemical control at overseas manufacturing bases. Released and Transferred Amounts of PRTR*-Listed Chemical Substances With respect to domestic laws, to respond to the amendment of the PRTR Law and the Law Concerning the Examination and Regulation of Manufacture, etc., of Chemical Substances, we will enhance in-house chemical control systems to build a management structure that prevents any omissions and errors. Regarding the revised PRTR Law, we are implementing measures to accurately understand the released and transferred amounts of chemical substances including those that were newly added during the year, and submitting reports. Released and Transferred Amounts of PRTR*1-Listed Chemical Substances With respect to domestic laws, to respond to the amendment of the PRTR Law and the Law Concerning the Examination and Regulation of Manufacture, etc., of Chemical Substances, we will enhance in-house chemical control systems to build a management structure that prevents any omissions and errors. Regarding the revised PRTR Law, we are implementing measures to accurately understand the released and transferred amounts of chemical substances including those that were newly added during the year, and submitting reports. Released and Transferred Amounts of PRTR-listed Chemical Substances in FY chemical substances subject to mandatory reporting to Gifu and Aichi Prefecture Specified Class I Designated Chemical Substance: 2 Class I Designated Chemical Substance: 14 Total amounts released or transferred: approx. 375 t/ year ID No. Regulated Substance Quantity of regulated substance use (kg/year) Amount discharged (to air, public waterway, soil, or in-house landfill) Amount transferred Total amount Discharged to air (kg/year) Discharged to public waterway or river (kg/year) Discharged to soil on facility grounds (kg/year) Buried in landfill off-site facility grounds (kg/year) Transferred to sewerage (kg/year) Transffered off-side as waste material (kg/year) discharged and transferred (kg/year) 20 2-Aminoethanol 177,670 1, ,300 74,500 87, Antimony and its compounds 1, Ethylenediamine 1, ε-caprolactam 6, N,N-dimethylformaldehyde 1, Hydrargentum 4, ,400 4, Copper salts (water-soluble, except complex salts) 909, ,280 9, Nickel 1, Nickel compounds 19, ,530 4, Phenol 574, tert-butylphenol 3, Potassium persulfate water-soluble salt 889, , , Boron and its compounds 5, ,700 5, (2-[4-(1,1,3,3-Tetramethylbutyl)phenoxy]ethoxy)ethanol 3, Formaldehyde 571,345 2, ,002 40, Manganese and its compounds 21, ,600 21,600 Surveyed IBIDEN and IBIDEN Group companies covered by IBIDEN s environmental-management system Survey period April 2010 through March 2011 IBIDEN Group Green Procurement Guidelines *1 PRTR:Pollutant Release and Transfer Register *2 The data includes contained amounts in products, biodegraded treatment amount, and such. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 25

27 Understanding the Influence on Biodiversity Initiated from the power of water, the Group s business activities are blessed with the benefit of biodiversity such as maintaining a stable water supply. And our activities also have some impact in the area of biodiversity. Just as we need to cope with the issues of global warming due to climate change, biodiversity conservation is one of the most important tasks to tackle. Aiming to contribute to constant social advancement, in line with the values stressing Harmony with Nature, IBIDEN will act responsibly as a global enterprise by working together with society. Activities to Create a Society in Harmony with Nature for Biodiversity Protection and Sustainable Resource Use Focusing on the upstream areas along the Ibigawa River, which are the roots of the IBIDEN Group, we will contribute to protecting biodiversity and sustainable use of resources in the local community. We will achieve this by carrying out forest preservation activities to support the water sources and promoting social contribution activities in collaboration with the local community. Forest Preservation Activity Areas In August 2008, IBIDEN signed an Agreement on Lively Forest Creation with the Gifu Prefectural Government, the Ibigawa Town Government and the Ibi Shizen Kankyo Rangers (a nonprofit organization). According to this agreement, we will plant trees, thin the forests and conduct improvement cutting in IBIDEN s Forest Higashi Yokoyama Forest in the Higashi Yokoyama district and IBIDEN s Forest Fujihashi Forest in the Tsurumi district over the next 10 years, in an effort to support sustainable reforestation activities in the future. For details on forest preservation activities, please refer to "Social Contribution" on page 35. <Target Areas of Forest Preservation Activities> Toyama Ishikawa Nagano Fukui Gifu Ibi Prefectural Natural Park Tokuyama Dam Ibigawa River Site preparation for silvicultural project IBIDEN s Forest Fujihashi Land area:37ha Shiga Aichi Mie Kawakami Power Plant Hirose Power Plant Sakauchi River Higashi Yokoyama Power Plant In collaboration with the local community, we held the nature study class in autumn The hydroelectric power is supplied to each of IBIDEN s Plants Site preparation for planting project IBIDEN s Forest Higashi- Yokoyama Land area:4.31ha Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 26

28 Environmental Contribution through Products As environmental regulations are tightened, the market for automotive exhaust system components is likely to expand in the future. IBIDEN is working to reduce the environmental burden by launching next-generation, high-performance products such as diesel particulate filters (DPFs), installed into fuel-efficient, clean diesel vehicles. Forecast for the European Vehicles Market SiC-DPF(Diesel Particulate Filter) In 2000, IBIDEN succeeded in achieving the practical application of DPFs made of silicon carbide (SiC), which boasts high thermal conductivity, high heat resistance, thermal shock resistance, and high mechanical strength as its baseline performance. Following that, with a view to further reducing the environmental burden, we developed new technology such as the Oct-Square, which helped achieve long life and the downsizing of the filters. In order to offer designs which take product performance and environmental consciousness into account from the product development stage, we will continue to provide tools for calculating the environmental impact of products to be developed and manufacturing processes, tools for controlling chemical substances, and tools for evaluating the value of product functions. Conventional cell structure Oct-Square (OS) cell structure The inlet cell of the DPF is expanded in an octagonal form to increase the ash retention capacity. This technology downsizes the DPF volume to reduce material and energy consumption. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 27

29 Environmental Accounting 1.Environmental Accounting in Support of Environmental Management In promoting environmental management, IBIDEN performs calculations and analyses to develop a quantitative understanding of investment and costs, seeking to understand the management resources spent on reducing the environmental burden and the results. We use environmental accounting to reflect the effects of investment and cost in the decision-making process at the management level. 2.Basis for Calculation Accounting period Accounting scope (Note 1) Calculation method April 2010 to March 2011 IBIDEN Co., Ltd. and major domestic manufacturing group companies (IBIDEN Engineering Co., Ltd., IBIDEN Graphite Co., Ltd., IBIDEN KENSO Co., Ltd., IBIDEN Jushi Co., Ltd., IBIDEN Electronics Industries Co., Ltd., IBIDEN Bussan Co., Ltd.) Calculations conform to the Environmental Accounting Guidelines (2005 edition) published by the Ministry of the Environment. Note 1: Calculations have been based on the consolidated financial results of major domestic manufacturing group companies since fiscal year Main Environmental Protection Costs In fiscal year 2010, investment decreased 44% compared to fiscal year The decrease in investment was primarily because large-scale environmental investments were made in (2) global environmental protection costs (e.g., hydroelectric power plant maintenance, boiler fuel conversion to city gas) in fiscal year 2009, whereas investments in fiscal year 2010 focused on (1) pollution prevention costs for environmental burden reduction and other improvements. In fiscal year 2010, costs increased 2% compared to fiscal year This reflected an increase in (3) resource recycling costs for sustainable resources as well as in (6) research and development costs by environment-related development themes including DPFs. (Unit: Million yen/year) Category Investments (Note 2) Costs (Note 2) FY 2009 FY 2010 Year to Year FY 2009 FY 2010 Year to Year (1) Pollution prevention costs % 3,172 3,212 +1% Business area cost (2) Global environmental conservation costs 1, % 1,661 1,395-16% (3) Resources circulation costs % % (4) Upstream and downstream costs % (5) Administration costs % % (6) Research & Development costs % 3,358 3, % (7) Social activity costs % (8) Environmental remediation costs Total 2,297 1,291-44% 9,363 9,555 +2% Note 2: In cases when the total amount of investments and costs cannot be deemed to constitute environmental protection costs, we have calculated the difference or the proportional share. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 28

30 4.Distribution Ratio of Total Cost of Environmental Protection Research and development costs include the cost of researching and developing next-generation DPFs and other environmentally responsible products, aimed at controlling the environmental burden. Global environmental protection costs include maintenance and administration costs of hydroelectric power generation and cogeneration facilities. The environment is the main objective of costs associated with hydroelectric power generation and research and development of environmentally responsible products. The total cost is aggregated, as there is no appropriate pro rata basis. 5.Economic Results and Real Effects of Environmental Protection Measures Real effects Description of effects 1. Energy conservation effect and electric power marginal profit effect Results of effective hydroelectric power generation, improved power generation efficiency, reduced idle operation loss, improved productivity, improved air conditioning, improved steam energy, and thorough maintenance and control 2. Economic effects of resource recycling (1) Reduced waste Effects of reduced liquid waste treatment costs, improved yield rates, and reduced waste as a result of loss improvement (2) Recycling of waste Effects of effective use of waste Effects of disposal by sale of substrates containing precious metals, liquid waste containing precious metals, sludge containing copper and waste plastics Amount FY 2009 FY 2010 (Note 3) (Unit: Million yen/year) Year to Year 1,740 1,879 +8% 1,375 1, % Total 3,115 3, % Note 3: These figures are not including estimated measure (assumed effect). 6.Fluctuations in Environmental Protection Costs and Economic Results Note 4: The figures are presented on a non-consolidated basis prior to fiscal year 2008 (Note 4) Energy conservation effects and electric power marginal profit effects for fiscal year 2010 increased by 8% compared to fiscal year The increase was primarily attributable to the increased productivity brought by the efforts to improve the operating ratio and facilities. Economic effects of resource recycling for fiscal year 2010 increased by 27% compared to fiscal year The main causes of the increase were the reduced waste treatment costs by streamlining the liquid waste and drainage treatments, in addition to the economic results brought by recycling waste. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 29

31 The IBIDEN Group s Material Balance (Input and Output) The IBIDEN Group procures a variety of raw materials and is engaged in manufacturing activities by utilizing a considerable amount of natural resources on the earth such as water and energy. To provide earth-friendly products to our customers, we seek to grasp the environmental burden caused by our business activities on a global basis. We will continue to provide high-value-added products while setting medium- and long-term targets and reducing our environmental burden. Energy use Category IBIDEN *1 Group *2 Raw Materials Cartegory IBIDEN Group electricity (Mwh)*3 Purcahsed electricity 186, ,843 Renewable energy 173, ,151 Metals (t) 2,759 4,644 Plastics and resins (t) 5,858 11,264 Natural gas (1000m 3 ) 52,812 70,821 LPG (t) 1,373 1,397 Kerosene (1000l) 1,528 1,528 Diesel Oil (1000l) ,116 Heavy oil (1000l) 0 3,590 Water resources Category IBIDEN Group Groundwater(1000m 3 ) 7,730 9,295 Water works(1000m 3 ) 16 3,452 Glass (t) Ceramic material,etc. (t) 17,092 31,525 Wood (t) Paper (t) 3,383 4,136 Agricultural product (t) 0 3,315 Chemicals (t) 67, ,478 *1 IBIDEN: IBIDEN Domestic Premises *2 Group: IBIDEN Domestic Premises and, five Japanese Group companies (Jushi, Bussan and IBIDEN Engineering (H.O.), IBIDEN Greentec, IBIDEN Industries) and six overseas Group companies (IPI, IEB, IHU, IDFS, and Micro Mech, IBIDEN Malaysia, IBIDEN Electronics (Shanghai)) *3 Electric power: Privately generated electricity by the Group's thermal power other than above (220,728 Mkwh) Atmosphere Category IBIDEN *1 Group *2 Waste Category IBIDEN Group CO2 (1000t) Scope 1 * Scope 2 * Logistics * Material recycling (t) 15,124 29,167 Thermal recycling (t) 3,059 3,394 Reuse (t) 671 2,469 Water system SOx emissions (1000t) Nox emissions (1000t) Water system Category IBIDEN Group Discharge to public sewer (1000m 3 ) 745 3,797 Discharge to river (1000m 3 ) 3,922 5,381 COD contamination (t) Nitrogen contamination (t) Phosphorous contamination (t) Industrial wastewater (1000t) Incineration ash (t) 218 1,238 Landfilled industrial waste (t) 0 1,776 Total generated waste (t) 19,072 38,044 *1 IBIDEN: IBIDEN Domestic Premises *2 Group: IBIDEN Domestic Premises and, five Japanese Group companies (Jushi, Bussan and IBIDEN Engineering (H.O.), IBIDEN Greentec, IBIDEN Industries) and six overseas Group companies (IPI, IEB, IHU, IDFS, and Micro Mech, IBIDEN Malaysia, IBIDEN Electronics (Shanghai) ) *3 Scope 1: Direct CO2 emissions (emissions from fuel used in business establishments) *4 Scope 2: Indirect CO2 emissions (emissions from purchased electricity generation) *5 Logistics: Between Japanese plants or where the export range (portto-port or airport-to-airport) has been identified Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 30

32 Environmental Data for Individual Plants and Group Companies Compliance management Ogaki Plant <No.1 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l SS mg/l n-h mineral oils mg/l <1 <1 Cyanide mg/l <0.01 <0.01 <No.2 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l Copper mg/l Lead mg/l <0.01 <0.01 Total chromium mg/l <0.02 <0.02 Hexavalent chromium mg/l <0.02 <0.02 Fluorine mg/l Cyanide mg/l <0.01 <0.01 n-h mineral oils mg/l <1 <1 Nitrogen mg/l Phosphorus mg/l Boron and boron compounds mg/l Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Boiler No.7 g/m 3 N Boiler No.8 g/m 3 N Boiler No.9 g/m 3 N Boiler No.10 g/m 3 N Boiler No.11 g/m 3 N Boiler No.12 g/m 3 N Boiler No.13 g/m 3 N Boiler No.14 g/m 3 N Boiler No.15 g/m 3 N Boiler No.16 g/m 3 N Soot Boiler No.17 g/m 3 N Boiler No.18 g/m 3 N Boiler No.19 g/m 3 N Boiler No.20 g/m 3 N Boiler No.21 g/m 3 N <0.001 <0.001 Boiler No.22 g/m 3 N <0.001 <0.001 Boiler No.23 g/m 3 N <0.001 <0.001 Boiler No.24 g/m 3 N <0.001 <0.001 Boiler No.25 g/m 3 N <0.001 <0.001 Boiler No.26 g/m 3 N <0.001 <0.001 Gas Turbine No.1 g/m 3 N <0.001 <0.001 Gas Turbine No.2 g/m 3 N <0.001 <0.001 Boiler No.7 ppm Boiler No.8 ppm Boiler No.9 ppm Boiler No.10 ppm Boiler No.11 ppm Boiler No.12 ppm Boiler No.13 ppm Boiler No.14 ppm Boiler No.15 ppm NOx Boiler No.16 ppm Boiler No.17 ppm Boiler No.18 ppm Boiler No.19 ppm Boiler No.20 ppm Boiler No.21 ppm Boiler No.22 ppm Boiler No.23 ppm Boiler No.24 ppm Boiler No.25 ppm Boiler No.26 ppm <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum North (morning evening) db East (morning evening) db South (morning evening) db West (morning evening) db North (night) db East (night) db South (night) db West (night) db Aoyanagi Plant <No.5 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l Copper mg/l Lead mg/l <0.01 <0.01 Total chromium mg/l <0.02 <0.02 Hexavalent chromium mg/l <0.02 <0.02 Fluorine mg/l <0.1 <0.1 Cyanide mg/l <0.01 < Trichloroethane mg/l < < Ni mg/l Phenol mg/l n-h mineral oils mg/l <1 <1 Dichloromethane mg/l <0.002 <0.002 Nitrogen mg/l Phosphorus mg/l Boron and boron compounds mg/l Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <No.6 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission < SS mg/l Cyanide mg/l <0.01 <0.01 Phenol mg/l <0.1 <0.1 n-h mineral oils mg/l <1 <1 Nitrogen mg/l < Phosphorus mg/l < <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Boiler No.2 g/m 3 N <0.001 <0.001 Soot Gas Turbine No.1 g/m 3 N <0.001 <0.001 Gas Turbine No.2 g/m 3 N <0.001 <0.001 Boiler No.2 ppm NOx Gas Turbine No.1 ppm Gas Turbine No.2 ppm <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum East (morning evening) db West (morning evening) db South (morning evening) db North (morning evening) db East (night) db West (night) db South (night) db North (night) db Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 31

33 Gama Plant <No.1 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of total emission SS mg/l Copper mg/l Lead mg/l <0.01 <0.01 Fluorine mg/l < Cyanide mg/l Trichloroethane mg/l < < n-h mineral oils mg/l <1 <1 Dichloromethane mg/l <0.002 <0.002 Nitrogen mg/l Phosphorus mg/l Boron and boron compounds mg/l <0.1 <0.1 Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <No.2 Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of total emission SS mg/l n-h mineral oils mg/l <1 <1 Nitrogen mg/l Phosphorus mg/l < Copper mg/l <0.01 <0.01 Cyanide mg/l <0.01 <0.01 Lead mg/l <0.01 <0.01 Dichloromethane mg/l <0.002 < Trichloroethane mg/l < < Fluorine mg/l <0.1 <0.1 Boron and boron compounds mg/l <0.1 <0.1 Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <1 <1 <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Boiler No.9 Gas g/m 3 N <0.001 <0.001 Boiler No.10 Gas g/m 3 N <0.001 <0.001 Boiler No.11 Gas g/m 3 N <0.001 <0.001 Boiler No.12 Gas g/m 3 N <0.001 <0.001 Soot Boiler No.13 Gas g/m 3 N <0.001 <0.001 (Oxygen equivalent) Boiler No.14 Gas g/m 3 N <0.001 <0.001 Boiler No.15 Gas g/m 3 N <0.001 <0.001 Boiler No.16 Gas g/m 3 N <0.001 <0.001 Gas Turbine g/m 3 N Boiler No.9 Gas ppm Boiler No.10 Gas ppm Boiler No.11 Gas ppm Boiler No.12 Gas ppm NOx Boiler No.13 Gas ppm (Oxygen equivalent) Boiler No.14 Gas ppm Boiler No.15 Gas ppm Boiler No.16 Gas ppm Gas Turbine ppm Ogaki Central Plant <Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l Copper mg/l Lead mg/l <0.01 <0.01 Total chromium mg/l <0.02 <0.02 Hexavalent chromium mg/l Cyanide mg/l <0.1 <0.1 Fluorine mg/l <0.01 <0.01 Nitrogen mg/l <1 <1 Phosphorus mg/l n-h mineral oils mg/l Boron and boron compounds mg/l Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum B-1-1 Boiler g/m 3 N <0.001 <0.001 B-1-2 Boiler g/m 3 N <0.001 <0.001 B-1-3 Boiler g/m 3 N <0.001 <0.001 B-1-4 Boiler g/m 3 N <0.001 <0.001 Soot B-1-5 Boiler g/m 3 N <0.001 <0.001 B-1-6 Boiler g/m 3 N <0.001 <0.001 B-1-7 Boiler g/m 3 N <0.001 <0.001 B-1-8 Boiler g/m 3 N <0.001 <0.001 B-1-9 Boiler g/m 3 N <0.001 <0.001 B-1-10 Boiler g/m 3 N <0.001 <0.001 B-1-1 Boiler ppm B-1-2 Boiler ppm B-1-3 Boiler ppm B-1-4 Boiler ppm NOx B-1-5 Boiler ppm B-1-6 Boiler ppm B-1-7 Boiler ppm B-1-8 Boiler ppm B-1-9 Boiler ppm B-1-10 Boiler ppm <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum North (morning evening) db EastNo.1 (morning evening) db EastNo.2 (morning evening) db South (morning evening) db North (night) db East No.1 (night) db East No.2 (night) db South (night) db <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum East (morning evening) db South (morning evening) db West (morning evening) db East (night) db South (night) db West (night) db Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 32

34 Ogaki-Kita Plant <Total Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l Copper mg/l Total chromium mg/l <0.02 <0.02 Hexavalent chromium mg/l <0.02 <0.02 Fluorine mg/l <0.1 <0.1 Cyanide mg/l <0.01 < Trichloroethane mg/l < < Trichloroethylene mg/l <0.002 <0.002 Phenol mg/l <0.1 <0.1 n-h mineral oils mg/l <1 <1 Nitrogen mg/l Phosphorus mg/l Boron and boron compounds mg/l Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Hydrogen sulfide Vacuum incinerator ppm < < <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum North (morning evening) db East (morning evening) db South (morning evening) db Western angle of Building D (morning evening) db West (morning evening) db Graveyard (morning evening) db North (night) db * 1 East (night) db * 1 South (night) db * 1 Western angle of Building D (morning evening) db * 1 West (night) db * 1 Graveyard (night) db *1: The data excess by the sound of insects and frogs. Godo Plant <Wastewater Measurement - West> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l n-h mineral oils mg/l <1 <1 Nitrogen mg/l 120 Regulation of total emission Phosphorus mg/l 16 Regulation of total emission <Wastewater Measurement - East> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l 160 Regulation of Regulation of total emission total emission SS mg/l n-h mineral oils mg/l <1 <1 Nitrogen mg/l 120 Regulation of total emission Phosphorus mg/l 16 Regulation of total emission <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Soot Exhaust g/m 3 N Nox Exhaust ppm <4 <4 <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum East (morning evening) db South (morning evening) db West (morning evening) db North (morning evening) db East (night) db * 1 South (night) db * 1 West (night) db * 1 North (night) db *1: The data excess by the sound of insects and frogs. Kinuura Plant <Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l COD mg/l SS mg/l Copper mg/l Total chromium mg/l Fluorine mg/l Phenol mg/l n-h mineral oils mg/l Nitrogen mg/l Phosphorus mg/l Soluble manganese mg/l Zinc mg/l Solubility iron mg/l Coliform bacilli piece/cm Boron and boron compounds mg/l Ammonia and ammonium compounds, nitrite and nitrate compounds mg/l <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Once-through boiler No.1 g/m 3 N Soot Once-through boiler No.2 g/m 3 N Once-through boiler No.3 g/m 3 N Once-through boiler No.1 ppm NOx Once-through boiler No.2 ppm Once-through boiler No.3 ppm Once-through boiler No.1 m 3 N/h SOx Once-through boiler No.2 m 3 N/h Once-through boiler No.3 m 3 N/h <Noise Measurement> Place Unit National standard City standard Voluntary standard Average Maximum East (morning evening) db Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 33

35 IBIDEN Engineering Co., Ltd <Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD mg/l [BOD+2 SS] COD mg/l SS mg/l [BOD+2 SS] 4 7 Copper mg/l Lead mg/l <0.01 <0.01 Chromium mg/l <0.02 <0.02 Hexavalent chromium mg/l <0.02 <0.02 Fluorine mg/l < Cyanide mg/l <0.01 < Trichloroethane mg/l < < Trichloroethane mg/l < < Dichloropropanes mg/l <0.001 < Dichloroethane mg/l < < Dichloroethylene mg/l <0.002 <0.002 Cis- 1 2 Dichloroethylene mg/l <0.004 <0.004 Trichloroethylene mg/l <0.002 <0.002 Tetrachloroethylene mg/l < < Dichloromethane mg/l <0.002 <0.002 Carbon tetrachloride mg/l < < Cadmium mg/l <0.01 <0.01 Phenol mg/l <0.1 <0.1 n-h mineral oils mg/l <1 <1 Arsenic mg/l <0.01 <0.01 Alkyl mercury mg/l ND ND ND ND ND Organic phosphorus mg/l <0.01 <0.01 Polyhalogenated biphenyl mg/l < < Zinc mg/l Manganese mg/l Benzene mg/l <0.001 <0.001 Boron and boron compounds mg/l <0.10 <0.10 IBIDEN Jushi Co., Ltd <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Soot Boiler No (g/m N) Boiler No SOx Boiler No (m N/h) Boiler No Gas Turbine NOx Boiler No.1 (ppm) Boiler No IBIDEN Bussan Co., Ltd <Wastewater Measurement> Item Unit National standard City standard Voluntary standard Average Maximum PH 5.8~ ~ ~ BOD (mg/l) COD (mg/l) SS (mg/l) n-h mineral oils (mg/l) <1 <1 Nitrogen (mg/l) Phosphorus (mg/l) <Air Measurement> Item Equipment Unit National standard City standard Voluntary standard Average Maximum Boiler No Boiler No Soot Boiler No.3 g/m 3 N Boiler No Boiler No Boiler No Boiler No NOx Boiler No.3 (ppm) Boiler No Boiler No IBIDEN Electronics (Beijing) Co., Ltd. <Wastewater Measurement> Item Unit City standard Voluntary standard Average Maximum PH 6~9 6.2~ BOD (mg/l) COD (mg/l) SS (mg/l) Copper (mg/l) Cyanide mg/l Ni mg/l n-h mineral oils mg/l animal oil and vegetable oil mg/l <Air Measurement> Item Equipment Unit City standard Voluntary standard Average Maximum H2SO4 mg/m HCl BJS Tower mg/m NMHC (Scrubber Emissions) mg/m Toluene mg/m Soot Air Exhaust mg/m HCN <HCN> Exhaust mg/m <0.09 <0.09 Phenol Carbon surface discharge port mg/m Ammonia Deodorization mg/m Hydrogen sulfide tower mg/m <Noise Measurement> Time Unit City standard Voluntary standard Average Maximum Daytime db (A) Nightime db (A) IBIDEN Philippines,Inc. <Wastewater Measurement> Item Unit Industrial park standard Voluntary standard Average Maximum PH BOD mg/l COD mg/l Total Suspended Solids, TSS mg/l SS mg/l Copper mg/l Lead mg/l Chromium (Hexavalent) mg/l ND ND Cyanide mg/l Nickel mg/l Color PCU Oil & Grease mg/l Iron (Dissolved) mg/l 10 8 ND ND Manganese (Dissolved) mg/l Formaldehyde mg/l <Air Measurement> Item Unit National standard Voluntary standard Average Maximum NOx mg/m 3 2,000 1, SOx mg/m 3 1,500 1, Particulate Matter (PM) mg/m Carbon Monoxide (CO) mg/m Copper (Cu) mg/m <Noise Measurement> Time Unit National standard Voluntary standard Average Maximum Morning (5am - 9am) db Daytime (9am - 6pm) db Evening (6pm - 10pm) db Nightime (10pm - 5am) db Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 34

36 Social Contribution Basic Policy We aim to contribute to local communities by taking advantage of our unique corporate characteristics, including our capacity to improve living environments and to offer opportunities for personal development. We take part in and support groups involved in activities of this nature. We also undertake our own community projects across the globe, tailoring them to local cultures and customs, and earning the trust of the international community. Forest Building Activities: IBIDEN s Forest In fiscal year 2008, we embarked on a forest building initiative as part of our global environmental protection activities. This activity takes place chiefly in Higashi-Yokoyama, the place where IBIDEN was founded, and where the Company operates its initial hydroelectric power generation business. Over the next 10 years, we will be planting trees, thinning the forests and conducting improvement cutting in the district, with an approximate total area of 40 hectares in the town of Ibigawa. Together with the local public, employees and their family members, we will continue to carry out sustainability activities aimed at maintaining harmony with nature. Providing the Experience of Environmental Protection IBIDEN not only engages in reforestation projects to stop global warming but also provides a place where employees, their families and local residents can experience forest building. Demonstrating the importance of environmental protection and interacting with nature through hands-on tree planting experiences Conducting new employee training aimed at conveying the significance of environmental protection and raising the awareness of social contribution Offering a Place for Interaction with Employees, Their Families and the Local Community In collaboration with the local authorities, its residents, and nonprofit organizations (NPOs), we undertake projects ranging from tree planting activities, the maintenance of walking trails in planted areas and nature walks to community exchange using the forests and local cultures in the community of the Ibigawa River. Implementing events such as a craft making session using thinned wood as part of the tree planting activity and a steamed-bun making session using the wild vegetable Sawa-azami, picked from local mountains Organizing a wilderness experience class in the fall in collaboration with local NPOs Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 35

37 How to Promote Social Contribution Activities Focusing on our priority areas, which are Protecting the global environment, Fostering the next generation, Contributing to social welfare and local communities, and Disaster relief activities, we promote the social contribution activities of the IBIDEN Group, and at the same time, we encourage our employees to voluntarily participate in non-profit social contribution activities. We established the Social Contribution Committee to facilitate our social contribution efforts. We set up the Social Contribution Fund to support the Company s social contribution activities and the social contribution activity groups in which the Company employees participate. We implement the Volunteer Encouragement Program which encourages the employees of the domestic IBIDEN Group companies to engage in volunteer activities. Protecting the Global Environment [Planting activities worldwide] <IBIDEN Electronics (Beijing), Launch of Tree-Planting Initiative in Commemoration of its 10th Anniversary> IBIDEN Electronics (Beijing), which celebrated its 10th anniversary in 2010, embarked on tree-planting activities in a Beijing suburb. Its April event was participated in by some 200 staff members and others, who planted 220 trees. <IBIDEN Philippines, Earth Day Pledge > In time for Earth Day organized by the United Nations, IBIDEN Philippines held a tree planting event in March employees and 16 local residents voluntarily participated in this event, planting a total of 100 mahogany trees outside of IBIDEN Philippines Plant. [Actions for a Cleaner Community] <IBIDEN domestic Groups: voluntary cleanup activity in a community> The IBIDEN Group regularly conducts community cleanup and beautification activities in the areas where it operates. In 2010, more than 5,800 of our employees took part in the Group s self-initiated actions. In addition, a number of employees serve as volunteer crew for cleanup Ibiden Bussan s clean-river action activities organized by the Group s alumni, municipal governments (such as the city of Ogaki) and local NPOs. Group alumni s environmental beautification action <IBIDEN Hungary: Removal of Illegally Dumped Waste> Every March or April, IBIDEN Hungary joins hands with local resident volunteers to engage in an action to remove illegally dumped waste. Activities including posting of sign boards calling for a halt in illegal dumping in the hope that a greater number of people will increase their awareness of the environment. <IBIDEN Philippines Coastline Cleanup Activity> We planned and carried out the coastline cleanup of an area about 15km away from our plant in an effort to make the local community an even more comfortable, cleaner and attractive place to live. Thirty employees of the company and 9 residents of the community volunteered to participate in the cleanup event. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 36

38 <Participation in the CO2 Reduction / Light-Down Campaign> We take part in the CO2 Reduction / Light-Down (i.e. lights-off) Campaign being run by the Ministry of the Environment as a means to stop global warming. During the campaign period, the lights for the rooftop signboard at our Aoyanagi Plant were switched off at certain times. Fostering the Next Generation [IBIDEN Tour Learning from Water ] We conduct hands-on tours for elementary school children and their parents from the local community, offering them an opportunity to learn about nature and electricity. The participants visit the hydroelectric power plant, which is the origin of our business, to learn about hydroelectric power generation and the history of the region s development. Both parents and children also can enjoy themselves and study the structure and functions of a water wheel by actually making one. Stakeholder s Voice Shin Ogasawara, Vice Director, WABOT-HOUSE Laboratory, WASEDA University We support a family facility tour to educate the public about the appeal of the Higashi-Yokoyama Power Plant, our predecessors legacy as well as our facility currently operating as one of the cores of our business, and also to provide opportunities for employees to rediscover their company s resources. In terms of building a trustworthy relationship with the locals and planning long-term development as well as securing of human resources by communicating the IBIDEN s philosophy of growing hand in hand with the local community, the role of social contribution is significant. At the same time, particularly when envisioning our future business expansion, our social contribution will play an important role in the future, and I have great expectations for it. [IBIDEN Cup Youth Soccer Tournament] We annually hold a youth soccer tournament on Health Sports Day for the development of young people and local revitalization through sports. In 2010, 33 teams of boys and girls from not only Gifu Prefecture but also Aichi, Mie, and Shiga prefectures participated in the tournament, where they played exciting games. [Support for the HIRO Gakuen Academy, a School for Brazilian Expatriates] In 2007, the Group began to assist the HIRO Gakuen Academy, a school attended by Brazilian children in Ogaki, Gifu Prefecture. The Group partially subsidizes the cost of textbook purchases and supports school operation and youth development programs. [IBIDEN Philippines Support Activities for a Local Elementary School] IBIDEN Philippines visited Sala Elementary School in the region and donated stationery to the schoolchildren. The stationery was purchased using funds donated by the employees, who also volunteered to help pack the stationery. [IBIDEN DPF France and Others: Plant Visits by Local Children] IBIDEN DPF France gives plant tours to local junior high school students. A tour includes a plant visit, briefing on DPF and exchanges of opinion. Student visitors enjoy rare opportunities to view production lines in operation and develop a better understanding of work performed by a variety of people through information exchanges. IBIDEN Hungary also offers similar tours. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 37

39 Contributing to Social Welfare and Local Communities [Participation in the Mikoshi Parade in the Jumangoku Festival in Ogaki] The IBIDEN Group is a regular participant in the Kigyo Mikoshi (portable shire) Parade section of the Jumangoku Festival hosted by the city of Ogaki every October. IBIDEN s scope of involvement expanded in fiscal 2009, when its employees initiated post-festival cleaning activities around the thoroughfare leading to the main train station. IBIDEN strongly advocates local revitalization efforts, which it tries to help by amplifying the festival spirit together with local residents. [Support for the Ibigawa Marathon] We provide support for the Ibigawa Marathon, a sporting event that takes place in the town of Ibigawa-cho every November. The Group supports operations of the event by making available its parking lots adjacent to its plants in Ibigawa-cho. Group employees also serve as traffic controllers and staff at water stations along the marathon route. [In-House Blood Donation Drives] In a voluntary move to alleviate the chronic blood supply shortage that plagues Gifu Prefecture, the Group runs blood donation drives. More than 520 IBIDEN members understood the need to secure a stable supply of blood for medical use through volunteer blood donation and served as blood donors in fiscal Based on the past donation records, the Group has registered itself as a Japan Red Cross Blood Donation Supporter, committing itself to ongoing and periodic contributions to the program. Furthermore, IBIDEN Philippines has been participating in blood donation drives for the past five years. In recognition of its ongoing blood donation activities, IBIDEN Philippines received a letter of appreciation from the Philippine Red Cross, Batangas Branch. [IBIDEN Hungary Donation of Personal Computers to the Local Police] In May 2011, IBIDEN Hungary invited the chief of the local police to the company and donated personal computers and monitors in response to their request for help with their computerization. Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 38

40 Disaster Relief Activities [The Great East Japan Earthquake Support] We asked for support throughout the Group for the areas affected by the disaster and sent these areas donations and relief supplies such as blankets, water and gas oil. A significant amount of donations were also made by the overseas Group companies through fund-raising activities by the employees, charity auctions, etc. [IBIDEN Electronic Beijing: Fund-Raising for the Victims of the Sichuan and Qinghai Earthquakes] China experienced two major earthquakes in recent years: the Sichuan Earthquake in 2008 and the Qinghai Earthquake in Aside from the IBIDEN Group s donations to aid relief efforts at the affected regions, the Group employees organized their own fund-raising drives seeking contributions from fellow employees. All donations were sent to the Office of Beijing Economic Technological Development Area (BDA), which handed them over to the Chinese Red Cross to support their relief and rebuilding activities. Encouraging Volunteerism [Volunteer Encouragement Program] IBIDEN and its domestic group companies provide special leave for volunteers (a special paid leave of up to 7 days a year) as a volunteering encouragement program. In addition, the Social Contribution Committee grants awards to employees according to our internal rules. [ Chovola activities Simple action to start volunteering] As volunteer activities in which anyone can casually participate, we are facilitating Chovola activities within the Group, in which spoiled postcards, used stamps and plastic bottle caps are collected and donated. Using a simple activity as an opportunity for our employees to start volunteering, we deliver information on local volunteer programs internally and invite the employees to participate in a wide range of volunteer activities. [Synchronized actions between oversea bases and Japan] The IBIDEN Group has made donations to support environmental group in time with environmental education activities at oversea base. The donations are raised by the Group s employees and alumni in Japan who organize drives to collect unused books and CDs exchange them for cash during the New Year Holidays. Environmental education activity (IBIDEN Philippines) Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 39

41 Social Responsibility for Our Products Quality Management that Supports Customers-First Values In line with the customers-first values included in the IBIDEN WAY, the Group meets the needs of customers through unique technologies and designs that consider the global environment. We understand that our greatest mission is to consistently supply safe and reliable products. We seek to achieve high customer satisfaction by putting customer needs at the forefront of our product development process, by accepting only the highest quality at the design stage, by incorporating mechanisms that ensure quality into the product-making stage, and by creating a management system that provides the necessary support. Quality Assurance System Customer satisfaction To benefit our customers and the community with quality products, we conduct design reviews and hold quality assurance meetings to study the design and specifications at each stage of the manufacturing process, from the development of cutting-edge technologies, through product planning and design, to mass production. Customersfirst activities D C Diligent Quality Care from the Beginning Offering safe, reassuring and eco-friendly products P Design and Developing A EMS (Environmental Management System) Quality Core system S QMS (Quality Management System) Product-making A D C P=Plan S=Standard D=Do C=Check A=Action TPM Activity (Total Productive Management) Systems supporting Customersfirst practices ISMS (Information Security Management System) OHSAS (Occupational Health and Safety Assessment Series) IC (Internal Control) Corporate Social Responsibility Report2011, IBIDEN CO., LTD. 40