SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011
Transcription
SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011
P012-E170 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 INDEX SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Overview of Shimadzu ................................................................................................................................. 03 Message from the President ................................................................................................................................. 04 Special Features Special Feature 1 Reducing Environmental Impact Within Shimadzu ................. 06 Special Feature 2 Contributing to the Environment Through Technological Development ........... 08 Special Feature 3 Environmental Activities Outside Shimadzu ............................ 10 Risk Management / Corporate Governance ........................................................................................................ 12 Environmental Report Environmental Policy / Promotional Organization / External Auditing .............. 14 Introduction Medium and Long-Term Programs / Environmental Management Programs .... 16 Environmental Load Mass Balance / Environmental Accounting ........................ 18 Preventing Global Warming / Saving Energy ........................................................ 20 Recycling Resources / Controlling Chemical Substances / Pollution Measures .... 22 Environmental Measures for Products / Green Procurement .............................. 24 Internal Environmental Auditing / Education ....................................................... 26 Conservation of Biodiversity .................................................................................. 27 External Support ..................................................................................................... 28 Measures by Affiliated Companies ........................................................................ 30 Social Report Product Quality Control / Safety / Customer Satisfaction .................................... 32 Investor Relations Activities .................................................................................. 33 Human Resource Management Policies / Creating an Employee-Friendly and Safe Workplace ...... 34 Coexisting with Society .......................................................................................... 36 Data Detailed Environmental Load Data ....................................................................... 38 History of Shimadzu Environmental Activities ..................................................... 39 Editorial Policy This report is being published on behalf of all customers and other stakeholders who support the Shimadzu Group. By describing the Shimadzu Group's environmental and social activities in a simple manner, we hope that this report will help to improve communication with all of these supporters. The format of this report is based on the guidelines below. In addition, we have made an effort to focus on reporting information of interest to our stakeholders, and to present it in a form that is easy to read and understand. To further improve not only the content of this report, but also our environmental and social activities, we welcome your opinions and comments. Referenced Guidelines: . Japanese Ministry of the Environment: Environmental Reporting Guidelines 2007 . Network for Sustainability Communication: Sustainability Reporting Guidelines . Global Reporting Initiative (GRI): Sustainability Reporting Guidelines (G3) Period and Scope This report primarily describes results and information from activities in fiscal year 2010 (from April 1, 2010 to March 31, 2011). At some points, it may also include information regarding activities prior to or subsequent to fiscal 2010. The report applies to the Sanjo Works including the corporate headquarter offices, the Seta Works, the Technology Research Laboratory (Keihanna), the Murasakino Works, the Hadano Works, the Atsugi Works, and affiliated companies. This report was published in September 2011.(The Japanese edition was published in June 2011.) 02 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Introduction Overview of Shimadzu Corporate Overview Introduction Corporate Trade Name : Shimadzu Corporation Corporate Philosophy : Contributing to Society through Science and Technology Management Principle : Realizing Our Wishes for the Well-being of both Mankind and the Earth Founded : March 1875 Incorporated : September 1917 Capital : Approx. 26.6 billion yen Number of employees : Approx. 3,125 (as of March 31, 2011) Headquarters : 1, Nishinokyo-Kuwabara-cho, Nakagyo-ku, Kyoto 604-8511, Japan Business Locations Used in This Report Seta Works Murasakino Works Headquarters (Sanjo Works included) Atsugi Works Hadano Works Technology Research Laboratory (Keihanna) Business Overview Shimadzu is engaged in research and development, manufacture, sales, service, and other business activities in the fields of analytical and measuring instruments, medical equipment, aircraft equipment, and industrial equipment. Key products in each business field are as follows. [Analytical and Measuring Instruments] High-performance liquid chromatographs, gas chromatographs, mass spectrometers, photometric analysis instruments, surface/composition analyzers, environmental measurement instruments, material testing machines, nondestructive inspection machines, optical devices, laser devices, and balances [Medical Systems] General radiography systems, nuclear medicine systems, optical brain function imaging systems, and medical information systems [Aircraft Equipment] Air management systems, flight control systems, head-up displays, rocket valves, and aircraft functional testing equipment [Industrial Machinery] Turbomolecular pumps, TFT-array inspection machines, solar cell deposition equipment, liquid delivery equipment, and hydraulic equipment Sales Trends Ordinary Income Trends Non-consolidated sales Unit: million yen Consolidated sales 289,971 300,000 Non-consolidated sales 262,431 30,000 252,707 238,255 200,000 25,000 23,205 23,864 20,000 170,773 Consolidated sales 272,833 250,000 150,000 Unit: million yen 171,096 17,731 170,773 159,074 141,887 154,004 15,279 15,000 11,655 100,000 10,000 50,000 5,000 0 0 9,816 8,730 4,864 4,287 328 144th Term 145th Term 146th Term 147th Term 148th Term FY 2008 FY 2009 FY 2010 FY 2006 FY 2007 144th Term 145th Term 146th Term 147th Term 148th Term FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 03 Message from the President Message from the President Recovery from the Great East Japan Earthquake The Great East Japan Earthquake that occurred on March to help the regions and victims affected by the disaster with 11, 2011 caused widespread damage in the northeast the process of recovery and, on a larger scale, to strive to region of Japan. We would like to express our sincerest help with the recovery of the entire country. The entire sympathy for the many victims of this disaster, and our Shimadzu Group is united in our commitment to support the heartfelt condolences for all those who were lost. recovery of customers in the affected areas and to restore Many of our customers and suppliers experienced damage in normal Shimadzu Group production as soon as possible. To this disaster, as did some of our sales bases and affiliate help build a brighter future, we will give our full effort to companies. As a Japanese enterprise, we feel it is our duty contributing to Japan's recovery as soon as possible. Aim to Become the No. 1 Partner Selected by Customers Globally In fiscal 2010, Japan's economy maintained a general and a 45% overseas sales ratio by March 2014. We plan to recovery, due to factors such as increased exports, mainly to achieve growth in both developed and newly emerging Asia, and the effects of the government's economic economies by expanding our product lines to offer products measures. In this environment, the Shimadzu Group actively ranging from value-oriented models to high-end models. implemented measures to achieve growth, such as Furthermore, to achieve our growth strategy of being a expanding our scope of operations in emerging economies, global leader, with products and solutions based on global expanding our aftermarket business, and introducing strategies, we aim to develop and supply advanced products that provide high added value and outstanding technologies and products that can contribute to innovation performance for their cost. in three key areas that will be important to peoples' lives in At the same time, we strengthened our marketing the future – life quality, new materials, and the environment. capabilities and implemented further functional and process In the area of life quality, we will leverage our core reforms so as to achieve our goal of establishing Shimadzu technologies to realize ultra early diagnostics and innovation as a brand trusted throughout the world. As a result, our in drug discovery processes, to help people live a healthy sales and profits, not to mention our various other and comfortable life. In the area of new materials, we will performance indicators, improved significantly from the supply technologies and products that contribute to research previous year during fiscal 2010. and development with respect to new materials and devices, Having achieved these results, we are now embarking on and to improving their performance and productivity. In the our new 3-year medium-term management plan, which area of environmental applications, we will strive to started in 2011. To achieve our goal of becoming a truly contribute to global environmental and energy conservation global business, we will strive to be the No. 1 partner by supplying analytical technologies essential for developing selected by customers globally. By implementing a growth alternative energies, as well as environmental measuring strategy to improve profitability, we aim to achieve 320 instruments for water, the atmosphere, and soil. billion yen in consolidated sales, a 10% operating margin, 04 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Message from the President Realizing Our Wishes for the Well-being of both Mankind and the Earth future, we plan to engage in even more of these activities, earthquake and tsunami, we in Japan can no longer avoid with an emphasis on those closely related to our regular reconsidering the energy policies that we have maintained business operations. thus far. The general public is more interested in saving Based on our management principle, Realizing Our Wishes energy and saving electricity than ever before. Shimadzu has for the Well-being of both Mankind and the Earth, been promoting energy saving activities for quite some time Shimadzu's environmental activities are focused in three now. Recently these efforts were publicly recognized when main areas – reducing the environmental impact of our we received an award from the Kansai Bureau of Economy, business activities, conserving the global environment Trade and Industry for our outstanding energy management through technological development, and engaging in practices at the Sanjo Works facility during 2010. We will environmental activities outside the company. As societal continue our ongoing efforts to reduce CO2 emissions from demands gradually evolve in the future, we will keep our business activities, and in response to recent societal working to fulfill our social responsibilities based on these demands to save energy and electricity, we initiated the three key areas. “Save the Energy Project” in 2010 to promote the As readers hold this report in their hands, I wonder what manufacture of more energy efficient products. With the impressions they have of the measures that the Shimadzu increasing demand for environmentally friendly products, we Group is taking. We would appreciate hearing your candid will continue to promote the development of these products opinions, and will use in future. them to help fuel In addition, there has been increased interest in biodiversity, further progress by the as evidenced by the 10th Conference of the Parties to the Shimadzu Group. Message from the President Due to the nuclear accident caused by the recent large Convention on Biological Diversity (COP10) held in Nagoya last October. Shimadzu has been involved in conserving biodiversity through on-site classes on the environment for elementary and junior high school students, as well as an Akira Nakamoto President & CEO Shimadzu Corporation employee emplo oyee volunteer-based volunteer based forest maintenance project. In In response to the Great East Japan Earthquake, Shimadzu Corporation donated 50 million yen and ten Shimadzu mobile X-ray systems* (six MobileDaRt Evolution systems and four MobileArt Evolution systems) to the areas affected by the earthquake disaster, and Shimadzu directors and employees donated 12.5 million yen through the Japan Red Cross. We are also gathering contributions from other affiliated companies in Japan and overseas. *Mobile X-ray systems are rechargeable, battery powered diagnostic systems especially useful for examining patients who cannot be easily transported to an X-ray room. The photo to the right shows our MobileDaRt Evolution digital mobile X-ray system. We have also established a special contact office for customers affected by the disaster, to provide information and advice about repairing and examining all types of Shimadzu products, including analytical and measuring instruments and medical equipment. For more details, visit the Shimadzu website. Shimadzu Corporation Website : http://www.shimadzu.com/ SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 05 Special Features 1 Reducing Env Environmental Impact Within Shimadzu Saving Energy and Capital Investment Sanjo Works Receives Outstanding Plant Energy Management Award Special Features After being nominated and reviewed for the Outstanding Plant Energy Management Award in 2010, the Sanjo Works was awarded the Kansai Bureau of Economy, Trade and Industry Director's Award. This award is given by each regional Bureau of Economy, Trade and Industry to specific company facilities or individuals for the purpose of promoting energy conservation and management. In 2010, only 40 companies in Japan received this highly respected award. The Sanjo Works received this award in recognition of organizational compliance with Japan's Law Concerning the Rational Use of Energy, and measures to save energy by updating capital equipment in an ongoing and systematic manner, over the last four years. Award certificate In future, we will engage in even more energy saving measures to ensure that we live up to the honor of receiving this award. Shigeki Houri Manufacturing Operations Department, Manufacturing Support Division Saving Energy by Changing the Air Compressor Pressure at Seta Works Measures were implemented to save energy by improving the control method and reducing the output pressure of the air compressor used by Shimadzu Precision Technology, which is located within the Seta Works facility. We had previously implemented measures to control the number of compressors being operated (currently five compressors), but on this occasion the control system was further improved to prioritize operation of the most efficient of the five compressors. In addition, the compressor output pressure was reduced by 0.08 MPa. Consequently, we anticipate reducing CO2 emissions by 60.4 tons per year (160,000 kWh/yr). In this case, we reevaluated whether or not the current compressor pressure setting was really necessary for all processes. As a result, it was determined that the pressure setting was only necessary for some of the processes. By introducing a pressure booster for those processes, we succeeded in lowering the compressor pressure for the overall facility. Teruo Fukada Shimadzu Precision Technology, Ltd. Switching Fuels for the Heavy Oil-Fired Boiler at Murasakino Works In response to the aging of the heavy oil-fired steam boiler used to heat Building 3 at the Murasakino Works, it was updated to a gas-fired steam boiler in November 2010. This not only improved boiler efficiency and saved energy by converting from heavy oil to gas (reducing CO2 emissions by 42 tons Replacing the heavy oil-fired boiler has been a concern for many years. The gas-fired boiler takes up much less space, which has resulted in a more effective use of space. Kazuo Nakafuji General Affairs Group, Murasakino Works, Testing Machines Production Department, Analytical & Measuring Instruments Division compared to the previous year), but also made it easier to manage exhaust emissions from the boiler, which resulted in reduced risk of air pollution. Updated gas-fired steam boiler 06 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Renovations Save Energy at the Tokyo Office Building thermal insulation involved the installation of double pane glass in windows, which reduces the heat gain from the outside. Renovation work was performed each weekend, one area at a time, and has reduced CO2 emissions by 120 tons per year (37% lower than the previous year). Special Features In response to the poor energy efficiency of equipment in the building, which was built 24 years ago in 1986, renovations to improve energy efficiency were implemented from May to November 2010 (specifically, replacement of the air conditioning system and lighting fixtures, and thermal insulation improvements). In addition to switching from a gas absorption type central air conditioning system to individually operated electric units, a new ventilation system was also introduced. This has dramatically improved the heating and cooling efficiency. By replacing the lighting fixtures, we simultaneously improved energy efficiency and increased lighting levels. Improving the These renovations have improved the lighting level, which had been a long-standing problem, and solved moisture condensation problems as well, and so we are happy with Masatoshi Komiya General Affairs Department, Tokyo Office the results. New Medical Systems Plant Completed at Sanjo Works Site Our new medical systems plant was completed in May 2010. Just as for the adjacent building, metal clad sandwich insulation panels were used for the building siding, and photovoltaic panels were installed to help reduce the energy load of the building. The old plant incurred major energy losses due to the heavy oil-fired steam boiler used for heating, but the new plant utilizes high-efficiency electric heat pump air conditioners, which significantly reduce energy consumption (a reduction in CO2 emissions of 80 tons per year). As operations were moved to the new building, production equipment is being upgraded consecutively to highly efficient equipment, which is expected to result in a total reduction in CO2 emissions of 250 tons per year. Saving Energy at Atsugi Works by Optimizing the Clean Room Operation We optimized the operation of the clean room facility at the Atsugi Works. Air conditioning air intake and outflow volumes were reduced by switching to an inverter type air conditioning system. The air conditioning load was reduced by reducing the outside air intake volume by 40%. The air conditioning level was reduced to about half the normal level at night and on weekends, and is shut off completely on successive holidays. Through these and other measures, CO2 emissions from electricity usage were reduced by 39% (a reduction of 267 tons per year). In addition to reducing electricity usage, the evaporation of cooling tower water from the public water system was reduced by about 1,500 tons, which has resulted in lower usage fees. Norio Asakura Shimadzu Device Corporation Renovation of the Shimadzu Foundation Memorial Hall As part of the renovation of the Shimadzu Foundation Memorial Hall, the exhibit spot lighting, ceiling lights, signage, and other lighting was switched to LED fixtures to save energy. Exhibits on display in the exhibition area SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 07 Special Features 2 Contributing to the Environment Through Technological Project Save the Energy P Special Features Shimadzu has provided various instruments and equipment that reduce the environmental impact of our society, including environmental measurement instruments, and solar cell deposition equipment. Faced with the need for measures to reduce global warming, in January 2010, Shimadzu launched the "Save the Energy Project", which focuses on the development of products featuring lower electrical power consumption. To strengthen our offering of products that contribute to creating a low-carbon society, this project aims to reduce the power consumption of major products currently in development by at least 25%. 30% lower power consumption Energy Saving Capillary Gas Chromatograph GC-2025 Gas chromatographs are used to determine the individual components in multi-component samples by vaporizing the sample, and then separating and detecting each component. The GC-2025 features an especially energy efficient oven design that results in 30% lower power consumption than previous Shimadzu models, while maintaining the same core performance levels for capillary analysis. In addition, this model features a carrier gas saver function and an auto start/stop function, which reduces its environmental impact while simultaneously reducing operating costs. Comparison of GC-2025 Power Consumption to Previous Models Previous Shimadzu Models 30% Reduction GC-2025 0 50 100 150 200 250 300 Electrical Power Consumption (Wh) Comments from an Engineer who Developed the GC-2025 In recent years, society has increasingly demanded lower CO2 emissions and a lower environmental impact. Since gas chromatographs tend to consume more electricity than other analytical instruments and laboratories often have multiple units operating continuously for long periods, a model with lower power requirements would significantly reduce power consumption levels. We therefore added the energy efficient GC-2025 to our gas chromatograph product line as a way of reducing our environmental impact. We intend to continue developing products that prioritize not only performance, but also the environment. Yasunori Terai GC Hardware Group, GC & TA Business Unit, Analytical & Measuring Instruments Division 08 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Development Environmentally Friendly Product Line Gas Chromatograph Mass Spectrometer Preparative System for High Performance Liquid Chromatography GCMS-QP2010 Ultra LC-20AP 26% lower power consumption 41% lower power consumption Special Features ・50% shorter analysis cycle times ・Includes Ecology mode ・Requires about 25% less space Total Organic Carbon Analyzer Moisture Analyzer TOC-L MOC63u 36% lower power consumption 32% lower power consumption ・Requires about 20% less space Optical Emission Spectrometer Autograph Precision Universal Tester PDA-8000 AG-Xplus Series 43% lower power consumption ・45% lower argon gas consumption 25% lower power consumption ・40% to 50% shorter test wait time * All values indicate comparison to previous Shimadzu models. SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 09 Special Feature 3 Environmental Acti Activities Outside Shimadzu Eco-Club Activities Start December 1999 Members 7 women from different departments Special Features Eco-Club The Eco-Club team engages in environmental activities within Shimadzu Corporation. This club was established in 1999 to educate employees regarding the environment. Currently, with a core of ten female members, it applies a uniquely female perspective and sensitivity to educating not only those in the workplace, but children as well, by creating educational tools for teaching kids about the environment, and by going out to teach onsite classes about the environment. How the Eco-Club Got Started Club Name How the Club Started To help achieve our management principle, "Realizing our Wishes for the Well-being of both Mankind and the Earth," the director in charge of environmental activities came up the idea of performing environmental conservation activities and environmental educational activities to help contribute to the regional community. The "Eco" in the name is a play on words in the Kyoto dialect, meaning "a good boy/girl" (i.e. someone who chooses to do things that are good for the environment). Main Activities Created and distributed pocket ashtrays to smokers within the company. (June 2000) Created Eco-Life related booklets, and distributed them within the company. (September 2005) Created envelopes for in-house use from 100% used newspapers. (July 2000) Created recycled goods using waste from the workplace. ("Sumika-chan", tissues, and notebooks) (From February 2006) Published an environmental education booklet for employees. (December 2000) Supported onsite classes for elementary and junior high school students. (From February 2001) Created a board game, The Adventures of Mr. Raindrop, as an environmental educational tool. (October 2002) Created a board game, The Ecolife of Little Earth, as an environmental educational tool. (December 2003) Proposed and managed the addition of greenery to the roof of the head offices in the Sanjo Works. (From October 2004) 10 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Created a board game, Eco Walking Through Kyoto Streets, as an environmental educational tool. (September 2006) Created a card game, bidi, as an environmental educational tool based on endangered species. (March 2008) Started onsite classes about biodiversity. (From April 2010) Created recycled notebooks designed to communicate the importance of biodiversity. (March 2011) Environmental Onsite Lectures Onsite class using "bidi" (Shinbayashi Elementary School, Kyoto City) Onsite class supported with help from students from the Faculty of Business Administration at Kyoto Sangyo University (Takeda Elementary School, Kyoto City) Special Features To date, the Eco-Club has helped with onsite environmental education classes at 76 elementary and junior high schools. In addition, since April 2010, the Eco-Club has instigated onsite environmental education classes using the "bidi" card game, which is based on an endangered species theme. These classes have been supported by help from students from the Zaima Laboratory in the Faculty of Business Administration at Kyoto Sangyo University. In 2010, classes on this theme were held at seven elementary and junior high schools. Environmental Education Tools "The Adventures of Mr. Raindrop" Board Game "Eco Walking Through Kyoto Streets" Board Game This game teaches about protecting water quality and conserving water resources, based on the water system from Lake Biwa to Yodo River. This game includes many hidden clues about how to reduce garbage in the city of Kyoto. Travel around the city of Kyoto with the goal of becoming an expert at reducing garbage. "The Ecolife of Little Earth" Board Game "bidi" bidi is a card game based on biodiversity. It was created based on the IUCN (International Union for Conservation of Nature) Red List of Threatened Species. This teaches how to help prevent global warming through everyday activities. To request environmental education tools: (only in Japan) http://www.shimadzu.co.jp/aboutus/approach/eco/e-club/index.html Comments from Supporting Students Onsite classes by Shimadzu are supported with the help of students from the Zaima Laboratory in the Faculty of Business Administration at Kyoto Sangyo University. Performing activities with the Eco-Club provided a valuable experience that I will treasure as an asset from my life at university. I feel very grateful. Thank you. In addition to the classes and workshops, it allowed me to learn about the environment, and to cultivate a deeper interest in the topic. In future, I hope to live life with a higher awareness of eco-friendly activities that I can do in my everyday life. Kohei Azechi Zaima Laboratory, the Faculty of Business Administration, Kyoto Sangyo University SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 11 Risk Management / Corporate Governance Shimadzu's Risk Management and Internal Controls 1 Basic Policy Risk Management / Corporate Governance To fulfill our social responsibilities while continuing to operate and develop business in a mature society with strong and greatly changing expectations of corporate responsibility, it is important for companies to proactively engage in establishing and operating internal controls, as a means of determining and executing corporate governance policies for the organization. Shimadzu treats internal controls as an aspect of risk management. Accordingly, we strive to ensure the appropriateness and efficiency of business processes, and to improve social trust. We have done this by establishing an activity system based on observance of the law, corporate ethics, and compliance in order to manage the risks associated with doing business. Diagram of Shimadzu Risk Management and Corporate Ethics Observing laws Demands of society What we must adhere to absolutely Laws Corporate ethics and compliance Internal company rules and social norms Corporate philosophy and management principles Expectations from customers and society Managing risks, such as disasters, accidents, exchange rate fluctuations, and damage to information systems Action plans for meeting social expectations and becoming a company trusted and chosen by customers Risk Management = Internal Controls Company-level measures to ensure that corporate activities develop continuously 2 Risk Management System (Including the observation of laws and corporate ethics) At Shimadzu, the president is the chief officer responsible for risk management. Below the president, a Risk Management and Corporate Ethics Board is established as a deliberative body to decide on company-level risk management policies twice a year. These activities are primarily carried out by the departments responsible for the respective risks, under the director in charge of risk management, and are deployed to other divisions, departments, and group companies accordingly. The control self assessment (CSA) system was introduced as one of the pillars of risk management activities, based on the PDCA (Plan-Do-Check-Act) cycle for risk management on an ongoing basis. Specifically, this involves assessing the probability and impact of risks previously identified in about 120 departments within the company. Based on these assessment results, risk reduction measures are prepared and implemented for each department. Risk Management and Ethics System Control Self Assessment (CSA) System President Director in Charge of RM Risk Management and Corporate Ethics Board Create Action Plan Go Through PDCA Cycle (1 year) RM: Risk Management Direction and Departments Support for Responsible for Risks Control Activities Assess Risk (Identify risks and assess their importance) RM Task Force (Gen. Admin. Dept.) Divisions Departments Group Companies CSA Activities (Prioritize the order of risks and prepare measures to reduce risks) Execute the Action Plan (Hand over management to persons in charge for implementation) Various Committees Assess Actions (Responsible manager reviews activities) Activities of the Internal Control Group (Complying with the Financial Instruments and Exchange Law) Under the director in charge of internal control, the Internal Control Group of the General Administration Department promotes measures to ensure the reliability of financial reporting. Specifically, the Internal Control Group holds the "Internal Control Committee" meeting four times a year, prepares the annual plan, and supports the significant business locations in reviewing their 12 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 controls of business processes (mainly related to sales, purchasing, and inventory) and instituting corresponding regulations. Furthermore, to prepare for audits by internal and external auditors, the Internal Control Group carries out training activities and self-assessment interviews, which are aimed at ensuring the proper and steady implementation of internal controls. Risk Management / Corporate Governance Corporate Ethics Seven Principles of Conduct Given the wildly changing social and economic conditions we face today, it is important that company activities are performed in accordance with a strong set of values and ethics so as to accommodate such changes appropriately, without losing focus. Therefore, Shimadzu has established a corporate code of ethics, so as to conduct our business activities in a manner consistent with our corporate philosophy of Contributing to Society Through Science and Technology. This corporate code of ethics clearly establishes policies with respect to regulatory observance, the timely and appropriate release of information, measures for the global environment, and cooperation with the international community. In terms of specific standards for thoughts and actions so as to achieve the above-mentioned policies, our corporate code of ethics establishes seven principles of conduct, which are broken down into 16 conduct guidelines. 1. Customer-Oriented Approach 2. Fairness and Transparency 3. Disclosure of Corporate Information 4. Contributing to Conservation of the Natural Environment and the Well-Being of Mankind 5. Respect for the Creativity and Individuality of Corporate Members 6. Contributing to Society as a Corporate Citizen 7. Harmony with the International Community Further broken down into 16 conduct guidelines Shimadzu Corporate Code of Ethics Employee training booklet and educational content of e-Learning System for Internal Notifications A corporate ethics help desk was established within the company to provide advice and a contact point for notifications regarding corporate ethics. All personnel, including Shimadzu employees, temporary personnel, and contractor personnel are encouraged to use the desk, not only if a violation occurs, but also when feeling uncertain about making judgments. Reports and consultations received at the help desk are investigated and resolved by the department in charge of corporate ethics, together with relevant personnel. In this way, the help desk works to further increase awareness of corporate ethics throughout the company. This type of help desk, which is independent from the normal organization chart, functions as an independent monitor for observing laws and compliance and is an essential system for ensuring business activities remain honest and fair. Export Control System At Shimadzu, we have an export control system headed by the president, so that export activities can be properly managed in accordance with our basic export control regulations. Export shipments should be monitored in detail on a daily basis, as overlooking or misunderstanding regulations could result in a violation of law. Therefore, to prevent such violations, the key legal requirements are managed using an internal electronic business information system. For example, exporting items without a required export license can be prevented by classifying items in the database as "license required," "no license required," or "to be determined." At the same time, this system prevents exporting items to certain countries unless the necessary export license is obtained in accordance with applicable laws and regulations. Establishing such a system enables the entire company to act appropriately to manage exports in a lawful manner. SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 13 Risk Management / Corporate Governance Furthermore, to ensure that corporate ethics are communicated to and practiced by all employees, periodic education is provided through various training opportunities, including annual e-Learning (or training booklet) publications, level-specific training for new employees and new managers, and job-specific group training. Environmental Report Environmental Policy Environmental Policy Environmental Policies for the Headquarter Offices District 1. Basic Philosophy Human health and environmental preservation on a global scale are goals shared throughout the world. As a member of the internatioinal community, we at Shimadzu consider global environmental problems as one of our most important concerns, and we conduct our business activities in accordance with the management principle, "Realizing Our Wishes for the Well-being of both Mankind and the Earth." We strive to achieve an abundant society while preserving and protecting the environment. Environmental Report 2. Basic Policies Business operations at the Headquarter Offices district are committed to expanding the development and manufacture of scientific equipment. These include analytical instruments; measuring instruments; testing machines; medical equipment; aircraft equipment; hydraulic equipment; industrial equipment; and bio-products and sensor devices, including environmental analysis and measurement instruments. At the same time, these business operations are dedicated to identifying the impact that business activities at the corporate Headquarter Offices district, our products and their manufacturing processes, and related services may be having on the environment. The continual improvement of our environmental management system actively contributes to steadily reducing the burden on the environment, to preventing pollution, and to enhancing the social environment. Such activities are based on the following policies. (1) Business operations in the Headquarter Offices district will make harmonizing their business activities with the preservation of the global environment one of the highest priorities. (2) To promote activism for global environment preservation, an organizational system is provided that allows the opportunity for all business organizations, including employees and all people in the site to participate. (3) The company will work to accurately identify the effects that the business operations have on the environment (such as environmental pollution, resource depletion, global warming, destruction of the ozone layer, loss of biodiversity) and work to constantly increase environmental preservation activities, as much as technologically and economically possible. (4) The company will strive to observe not only applicable legally requested items regarding environmental aspects, such as international, national and local environmen tal laws and regulations, but also any other requirements agreed to by the company. To preserve the environment the company will even establish its own voluntary standards when necessary. (5) Of the environmental effects that the business activities of our business operation in the Headquarter Offices district may have, promoting preservation activities with respect to the following effects will be given special priority. 1) The company will reduce CO2 emissions associated with the use of energy. 2) The company will develop products with functionality or applications that are environmentally beneficial to society. 3) The company will develop and manufacture products designed to have a low environmental impact throughout their lifecycle. 4) The company will reduce burdens on the global environment by actively promoting the procurement of environmentally friendly goods and services. 5) The company will support external environmental activities using the know-how accumulated for preserving the environment. 6) The company will actively promote the careful management and control of wastewater quality to prevent any pollutants from entering public water area and will take measures to prevent pollution. 7) The company will prevent environmental pollution by reducing the quantities of chemicals used that could significantly affect the environment, and by carefully improving and maintaining the facilities used for their production and control. 8) The company will improve the ratio of valuable material by meticulously classifying paper and will promote the recycling of waste materials. 9) The company will make every effort to prevent negative environmental effects resulting from hazardous substances released into the environment due to accidents, errors, disasters, or other causes. 10) The company will work to preserve the environment of the local community and help preserve the quality of life in the neighboring areas by reducing noise pollution we may be generating within the areas surrounding our operations in the Headquarter Offices district. 11) The company will make every effort to conserve biodiversity by gaining a deeper understanding of biodiversity, and by considering any impact that business activities may have on biodiversity. (6) The company will contribute to global environmental preservation by engaging in activities to promote environmental education and to raise awareness that employees and all people in the site should be involved in. (7) The company will strive to establish communication with local residents and related government organizations, in order to make contributions to the local community. Yukio Yoshida Environmental Committee Chair Headquarter Offices District, Shimadzu Corporation Environmental Policies for the Kanagawa Offices District 1. Basic Philosophy Human health and environmental preservation on a global scale are goals shared throughout the world. As a member of the international community, we at Shimadzu consider global environmental problems as one of our most important concerns, and we conduct our business activities in accordance with the management principle, "Realizing Our Wishes for the Well-being of both Mankind and the Earth." We strive to achieve an abundant society while preserving and protecting the environment. 2. Basic Policies Business operations at the Kanagawa Offices district are committed to expanding the development and manufacture of semiconductor, vacuum, and device-related equipment, and the promotion of application technology for analytical instruments. At the same time, the district aims to identify the potential environmental impact of these products and their manufacturing processes and related services. We then continually reduce their environmental impact, and actively contribute to improving the societal environment. These activities are based on the following policies: (1) Harmonize business activities with global environmental conservation. 14 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 (2) Prepare an organization that promotes global environmental conservation. (3) Understand the environmental effects that result from business activities, and continually improve environmental conservation activities. (4) Be committed to environmental conservation by observing legal requirements featuring environmental aspects, and other requirements agreed to by the district. (5) Prioritize the following environmental effects of business activities when promoting conservation activities: 1) Contribute to protecting the environment by reducing the environmental impact of products, and promoting product development and application technology. 2) Promote green procurement (products and services). 3) Prevent pollution by controlling and reducing chemicals. 4) Prevent pollution by maintaining and managing equipment related to the environment. 5) Prevent pollution by carefully controlling wastewater and exhaust emissions. 6) Promote recycling and reductions in CO 2 and other greenhouse gases through energy conservation and waste reduction. 7) Establish preventive measures and practices for controlling harmful substances that might be released under extraordinary or emergency conditions. (6) Promote education and awareness to enable all personnel working in the Kanagawa Offices district to engage in global environmental conservation. (7) Communicate with local residents and related government organizations to contribute to the local community. Takashi Nishimura Environmental Committee Chair Kanagawa Offices District, Shimadzu Corporation Environmental Report Promotional Organization / External Auditing Promotional Organization Environmental Committee Chairperson Internal Environmental Auditors The environmental management system is carried out by the promotional organization indicated to the right. For issues common across departments, environmental technical committee sections are established, extending horizontally across the organization to deploy company-level goals and objectives to respective departments, and to achieve continuous improvements in environmental performance. Internal environmental auditors are appointed within the organization to periodically audit the conformance, the appropriateness and the effectiveness of the environmental management system within departments or technical committee sections. Environmental Committee Person Responsible for Environmental Management Environmental Technical Committee Sections Resources and Environment Section Energy Section Product Environment Section Green Procurement Section Departments External Auditing Auditors auditing the site measures to improve the effectiveness of assessing compliance. The auditors praised the Kanagawa Offices district for providing incentives in the form of environmental activities awards, and for actively disclosing information to the local community, but indicated room for improvement with respect to the inclusion of positive environmental aspects found in indirect departments in the environmental management system. Improvements are being implemented successively with respect to the items indicated by the auditors. Environmental Committee Important environmental issues are deliberated about and decided on in an environmental committee, which meets biannually in April and November. To ensure that Shimadzu's environmental management system remains appropriate and effective, the committee conducts a management review in April to deliberate on environmental policies for the new fiscal year, and on environmental goals and objectives. In November, environmental improvement awards are bestowed on groups and individuals that have achieved prominent environmental improvements through daily activities within the company. For 2010, the grand prize was awarded to the Analytical & Measuring Instruments Division for their efforts to develop energy efficient products. In addition, two excellence awards, six effort awards, and one special award were also awarded. Environmental committee SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 15 Environmental Report In June 2010, the Headquarter Offices district (the Sanjo Works including the corporate headquarter offices, the Technology Research Laboratory(Keihanna), the Seta Works, the Murasakino Works, and 14 affiliated companies) underwent an annual surveillance audit, and the Kanagawa Offices district (the Hadano Works and the Atsugi Works) underwent its second surveillance audit. Both audits confirmed that the districts were complying with the environmental management system requirements, and were implementing them effectively. Auditors praised the Headquarter Offices district for integrating biodiversity in environmental policies, and for including the integration of environmental conservation within the primary business operations of each department as an aspect for self improvement in the goals and objectives. Room for improvement was indicated however with respect to the inclusion of biodiversity in goals and objectives, and in Environmental Report Medium and Long-Term Programs Environmental Aspects and Environmental Impact Assessment Environmental impact is assessed by identifying environmental aspects, which are the factors that cause environmental impacts, with respect to the business activities, products, and services in each department. This environmental impact assessment is an important process that serves as the foundation for environmental activities for the year, and is used to decide on items to be prioritized for management and control. Shimadzu uses custom assessment software to evaluate the level of impact. The results are discussed at an environmental impact assessment committee meeting to identify significant environmental aspects, and a corresponding environmental program is then created and implemented. In 2010, measures were also started to promote activities that result in concern for and benefits to the environment in the daily business activities of each department. In particular, the development and supply of environmentally beneficial products, such as instruments for analyzing and measuring environmental pollutants, vacuum distillation systems for waste liquids, and servicing products to reduce their environmental impact, are promoted as positive environmental aspects. In addition, the entire company is engaged in environmental measures. These include reducing energy usage and losses during production, reducing the environmental impact of logistics, strengthening the system for ensuring compliance with environmental laws, publicizing examples of environmental activities within and outside Shimadzu, and conducting tours of environmental facilities for overseas customers and universities. Medium and Long-Term Programs [Headquarter Offices District] Long-Term Goals (to March 2030) • Developed ECO-label compliant products: 20 items • Created policies for the introduction of LCA*1 techniques • Identified and reported on environmental regulatory trends in the EU and elsewhere overseas • Reduce energy consumption by at least 25%: main products • Introduce LCA*1 techniques and increase visibility of the environmental impact of products: main products • Comply with regulations for specific hazardous substances: all new products • Develop energy efficient products based on new concepts • Supply products based on life cycle thinking: all products • Develop our environmental restoration business • Design space- and energy-efficient products using MEMS*2/NEMS*3 technology • Promote environmentally friendly design • Comply with regulations for hazardous substances Management of Chemical Substances • Reduced the use of CFC substitutes (HCFC-225): a 70% reduction from the 1998 level • Audited points critical to the control of toxic substances • Eliminate the use of CFC substitutes • Achieve chemical substance management throughout entire life cycle • Decide on policies for chemical substances with environmental risks • Eliminate all chemical substances with a negative impact on human health and the environment • Comply with new chemical substance regulations • Implement measures based on SAICM*4 CO2Reduction • Reduced CO2 emissions from energy use to 9% above the 1990 level (a 25% decrease in terms of CO2 emission intensity. • Reduce CO2 emissions from energy use by 3% below the 1990 level • Reduce CO2 emissions from energy use by 20% below the 1990 level • Use renewable energy sources • Utilize state-of-the-art energy saving and new energy technology Environmental Report Mid-Term Goals (to March 2015) Item Products Results of Activities (FY 2010) Remarks L C A : Life Cycle Assessment, a technique for reducing environmental impact from a comprehensive perspective by calculating the environmental impact of products or other factors over their entire life cycle. *2 MEMS: (Micro-electro-mechanical systems) Devices with mechanical elements, sensors, actuators, and electronic circuits integrated on a single circuit board *3 NEMS: (Nano-electro-mechanical systems) A further development of MEMS, NEMS are devices having mechanical structures built on a nano scale using manufacturing technology for integrated circuit semiconductor devices. *4 SAICM: Strategic Approach to International Chemicals Management SAICM was coordinated at the February 2006 International Conference on Chemicals Management and approved by the United Nations Environmental Program. *1 16 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Environmental Report Environmental Management Programs Environmental Management Programs Headquarter Offices District Environmental Aspect Self-assessment rating: : Targets achieved with excellent results, : Targets achieved with good results, SelfAssessment FY 2010 Targets and Results : Targets not achieved FY 2011 Goals • Promote measures for environmentally-friendly products. ECO-label compliant development: 25 products • Study specifically how to implement LCA. • Calculate energy savings rates, recycle rates, and reuse rates:new products targeted. • Create sorting guidelines: all new products that require them. • Assess environmental regulatory trends for the EU and other areas, and disseminate this information throughout company. (2) Green Procurement • Green procurement rate of office supplies: achieved a 94.3% level, in comparison to the target of 92%. • Green procurement rate for materials: achieved a 68.7% level, in comparison to the target of 68%. • Registration in the material content management database: registered 8,376 items in comparison to the target of 8,000 items. • Green procurement rate of office supplies: 93% • Green procurement rate of materials: 70% • Registration in the material content management database: 8,000 items (3) Reduction of Hazardous Chemical Substance Emissions and CFC Substitutes • Reduction in use of CFC substitutes: achieved a level of 29% of the 1998 value, in comparison to the target of 40% or less. • Reduce the use of CFC substitute: 37% or less of the 1998 value. (4) CO2 Emissions • CO2 emissions from energy usage: achieved a value of 21,398 tons in comparison to the target of 21,025 tons of CO2. • CO2 emissions from energy usage: 21,066 tons of CO2 or less (5) Waste • Sorting paper more thoroughly: reduced items with no value by 23% in comparison to the target of 10%. • Sort paper more thoroughly: reduce items with no value by 20% in comparison to the 2008 level. Environmental Report (1) Products • Promote measures with respect to environmentally-friendly products. Develop Eco-label compliant products: 20 products developed, thereby meeting the target of 20 products (4 energy saving products, and 16 with harmful substances eliminated). • Calculate energy savings rates, recycle rates, and reuse rates:calculated for 8 models of new products. • Create sorting guidelines for new products: created for all products requiring sorting guidelines. • Assess EU environmental regulatory trends, and disseminate this information throughout company: strove to assess key regulations, mainly in the EU, and shared information with relevant industrial associations, then posted information on the intranet to ensure that all personnel were notified. Kanagawa Offices District Environmental Aspect (1) Products (2) Environmental Measures (Pollution Prevention) (3) CO2 Emissions SelfAssessment FY 2010 Targets and Results • Application of design guidelines for reducing environmental impact during new product development, and measures to obtain Eco-label certification: 3 models selected, in comparison to the target of at least 2 (development completed for 1 model, development period extended for 1 model, and Eco-label obtained for 1 model) • Compliance with domestic and foreign regulations, and obtaining environmental information through providing products and technological information. • Implement maintenance and control of equipment and chemical substances: managed through thorough use of the CRIS chemical substance management system. • Preparation for emergency response to chemical substance management by each department: planned and executed emergency training for each department. • CO2 emissions from energy usage: the actual result was 2,213 tons of CO2, in comparison to the target of 2,259 tons. FY 2011 Goals • Develop energy efficient models, and products free from harmful substances. • Calculate energy savings rates, recycle rates, and reuse rates:new products targeted. • Create sorting guidelines: all new products that require them. • Assess environmental regulatory trends, mainly in the EU and China, and disseminate this information. • Strengthen comprehensive management of chemical substances. • Manage specified hazardous industrial wastes appropriately, gather relevant information, and process them properly. • Reduce electric power and gas consumption below 2010 levels by end of the fiscal year. SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 17 Environmental Report Environmental Load Mass Balance Environmental Load Mass Balance [FY 2010] INPUT Electricity Usage Gas Usage 56,060 MWh 1,070,000 m 3 Fuel (diesel oil, etc.) Water Usage 71 kL 266,000 m 3 Chemical Substances Paper 127.9 tons 95.8 tons Packaging Materials (plastics, wood, cardboard, etc.) 652.4 tons All Shimadzu Corporation plants and laboratories Environmental Report (the Sanjo Works including the corporate headquarter offices, the Technology Research Laboratory (Keihanna), the Seta Works, the Murasakino Works, the Hadano Works, and the Atsugi Works) OUTPUT CO2 SOX Waste Output CO2 Emissions NOx Emissions SOx Emissions Effluents 2,746 tons 23,800 tons 2.52 tons 0.04 tons 257,000 m CO2 generated from use of electricity, gas, and fuels Amount Recycled Amount Landfilled 2,735 tons 11 tons Recycling Ratio 99.6% 18 NOX SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 NOx generated from use of gas and fuels SOx generated from use of fuels 3 Industrial effluents and residential wastewater Environmental Report Environmental Accounting Environmental Accounting [FY 2010] Environmental conservation costs included expenditures to expand the green areas in the Sanjo Works sports field area, and to install equipment for utilizing underground spring water to water the greenery. Total expenses increased by 2.4% from fiscal 2009. The absolute amount of environment-related capital investment increased by 18 million yen, and the proportion of capital investment for environmental equipment increased from 2.6% to 3.4% as well. Though outside the scope of counting for this report and hence not included in the table below, environment-related investments at the Tokyo Office included complete replacement of the lighting fixtures (46 million yen), as well as simultaneous replacement of air conditioning equipment, and the installation of double-glazed glass (230 million yen). Environment-related R&D expenses decreased by 1.7% from 2009, with their ratio to the total R&D costs remaining about the same, at 20.8% for fiscal 2009 and 20.9% for fiscal 2008. To determine the effects of environmental conservation, the economic effects of environmental activities were calculated from three reliable basis items — energy savings, waste reduction, and water savings. Compared to the reference year, there was a savings of about 8.9 million yen, but compared to the previous year, there was a 106 million yen increase, partly due to an increase in production, and the especially hot weather in summer. 1 Environmental Conservation Activity Costs (2010 performance) Classification 1 Costs Within Business Areas (Unit: million yen) Investment Expenses 2010 2009 2010 2009 99 105 118 149 Primary Measures Pollution Prevention Costs Noise control, etc. Global Environment Conservation Costs Reduction of substances damaging the ozone layer, etc. Waste Reduction and Recycling Costs Commissioned waste processing, emission reductions, and waste separation Subtotal 2 Environmental Management Costs Office expenses, training/educational expenses 3 Social Activity Costs Monetary donations, greening, cleaning of areas near plants, etc. 4 Costs of Environmental Damage Total Reference Total Capital Investments for the Applicable Period 46 26 59 0 0 106 81 164 175 264 250 64 0 0 134 137 40 11 65 63 0 0 0 2 204 186 463 452 6,027 7,091 Item 1 Primary Details Development of environmentally friendly and environmentally beneficial products R&D Costs Investment Cost 2010 2009 2010 2009 27 0 2,409 2,450 Reference Total R&D Expenses for the Applicable Period 11,601 11,746 3 Environmental Conservation Activity Results 1 Energy Savings Environmental Load Index (comparison with reference year) Amount saved:-13,000 MWh/year (30.2% increase) 2 Savings from Reduced Waste Savings:115 tons/year (4.4% decrease) 3 Water Savings Water saved:213,702 tons/year (45% decrease) Results Year-On-Year Savings Savings Total -91 -74 9 -19 91 -13 9 -106 4 Calculation conditions 4 Business operations included in totals: ISO certified operations (Sanjo Works, Murasakino Works, Technology Research Laboratory, Hadano (1) Works, Atsugi Works, and Seta Works) (2) Period covered:April 1, 2010 to March 31, 2011 (3) Results:Results indicate the extent of environmental load reductions, and expenses saved through environmental conservation activities. Values are limited to items with a basis for calculation, and use the year prior to the start of preparations for ISO certification (Sanjo Works: 1995, Hadano Works: 1997, Technology Research Laboratory: 1998, Seta Works: 2000, Atsugi Works: 2002, Murasakino Works: 2008) as the basis for comparison. (Depending on the contract method used, energy conserved and power rates do not necessarily match.) (4) Expenses related to education, conferences, and social activities: Calculated by multiplying the total number of man-hours expended by personnel involved in these activities by an hourly labor cost of 5,000 yen. 5 Results of Activities to Reuse Waste Items (Sanjo Works) Unit: t Unit:% 2,000 97.00 The total amount of waste and the processing costs both increased in fiscal 2010 in comparison to fiscal 2009, but more careful sorting resulted in a recycling ratio of 99.65%. This yielded a 15.4 million yen income. 98.00 98.30 98.67 98.78 99.35 98.88 99.65 100 95 221 1,000 242 1,112 264 557 840 995 90 955 1,087 1,091 975 Processing Costs (M yen) Income From Sales (M yen) 2003 65.6 2004 68.8 2005 82.5 2006 81 2007 64.5 2008 66.3 2009 53.7 2010 68.6 0.2 0.2 0.4 1.4 8.5 13.8 6.6 15.4 85 702 0 464 658 498 350 2003 2004 2005 2006 2007 2008 2009 2010 Amount of Usable Items Amount of Waste 80 Recycling Ratio SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 19 Environmental Report 2 Research and Development Costs Environmental Report Preventing Global Warming / Saving Energy Preventing Global Warming / Saving Energy Environmental Report CO2Emission Results The graphs show the CO2 emissions resulting from energy and electrical power used by Shimadzu Corporation business activities. These amounts were calculated for all Shimadzu production sites and research laboratories in Japan. About 89% of our energy use is electrical. The CO2 conversion factor for electric power varies depending on the region and fiscal year, but in this case, a fixed 0.378 kg-CO2 / kWh emission factor was used to prevent it from affecting the results for each year. Due to an increased utilization rate for new machine tools, which were introduced as part of measures to move production in-house in response to an increase in industrial equipment production, and due to especially hot weather in summer, CO2 emissions in fiscal 2010 were about 13% (2,744 t-CO2) higher than in 2009, a year affected by the economic recession. However, as described above in Special Feature 1, by investing in equipment, and by actively improving the operation of existing equipment as a means of reducing greenhouse gases, CO2 emissions in fiscal 2010 were reduced by about 700 tons, in comparison to before such measures were implemented. We will continue to engage in independent efforts to reduce the emission of greenhouse gases, based on the conviction that global warming is an issue that we all must resolve. CO2 Emissions (Total for all Shimadzu Corporation manufacturing and laboratory locations in Japan) Unit:t-CO2 25,000 23,774 20,000 18,304 18,101 18,838 20,063 21,126 21,369 21,146 21,940 21,030 16,299 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Electrical Power Usage (Total for all Shimadzu Corporation manufacturing and laboratory locations in Japan) Unit:million kWh 60 56.1 50 40 35.7 41.4 40.3 42.6 45.2 50.6 50.7 51.7 49.4 47.9 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 CO2 Emissions by the Shimadzu Group Results for CO2 emissions from energy usage by the Shimadzu Group in Japan and overseas are shown to the right, broken down by region and by energy type. Results for Japan include all Shimadzu Group manufacturing sites, a research laboratory, and a contracted analytical subsidiary. Overseas results include 9 subsidiaries in Asia, 2 in Europe, and 2 in the Americas, which consume relatively large amounts of energy. CO2 emissions in fiscal 2010 by the Shimadzu Group were 8.4% (2,576 t-CO2) higher than in fiscal 2009. In terms of regional values, a proportional increase in emissions is expected in Asia due to expanding local R&D and manufacturing of new products in China, as part of our future globalization. In terms of energy type, the proportion of heavy oil usage is now below 1% due to active conversion to other energy sources. CO2 Emissions from Energy by the Shimadzu Group Breakdown of CO2 emissions (by region) 4% 5% Total emissions: 33,344 tons 8% 83% Japan Asia Europe Americas Breakdown of CO2 emissions (by energy type) Less than 1% Less than 1% Less than 1% 1% 2% 10% 86% Electricity Gas Gasoline LNG+LPG Diesel oil Kerosene Heavy oil * Period: Some results from overseas affiliates are from 2010. 20 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Environmental Report Preventing Global Warming / Saving Energy Reducing CO2 Emissions from Logistics We are also engaged in measures to reduce CO2 emissions during shipment, up to the point that products are delivered to the customer. By improving the truck loading rate and promoting a modal shift, Shimadzu Logistics Service Corporation reduced CO2 emissions by about 26 tons in fiscal 2010. Primary activities include mixing shipments to optimize utilization of trips between locations, such as the Hadano branch, consolidating smaller freight shipments into chartered shipments, consolidating freight from regular commercial routes into chartered shipments, and shifting freight modes to rail or ship. The new transport system (TRINITY), which became operational in May 2010, enables us to share shipping information between different divisions of Shimadzu in real time. This has resulted in greater reductions in CO2 emissions than in 2009. For export shipments, an in-house bonded warehouse area has been used since 2006, which allows us to clear shipments through customs without the need to transport the items by truck. After clearing customs, items are transported by shuttle freight (running on natural gas since 2007) to the air or sea port. This has provided a significant reduction in shipping costs as well. Shuttle freight to airport Loading a rail container truck Verifying the Benefits of Increased Greenery measurements at night indicated that the heat stored in the asphalt during the day and released at night results in higher air temperatures than at the other locations, whereas almost no stored heat effects were measured in the grassy area. However, these effects were not sufficient to affect the air temperatures of neighboring environments. Possible explanations are that the green area is too small, or that there are too few tall broadleaf shade Instrumentation for measuring air trees. temperatures on the facility grounds Increasing Green Areas on the Sanjo Works Grounds In fiscal 2010, Shimadzu celebrated its 135th anniversary. As one of the events to honor this occasion, sod was laid on the sports field area on the north side of the Sanjo Works (about 10,000 m2 of the 13,000 m2 area, excluding the infield portion of the baseball field). One objective was to help prevent accidents and injuries during club activities, but providing a lush green environment also has employee benefits, and expanding the size of green areas is expected to help mitigate urban heat island effects. The completion and opening ceremonies took place on October 3, 2010, on which occasion a commemorative rugby match was played between the current rugby club and an alumni team. Commemorative match by the rugby team SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 21 Environmental Report As part of the Shimadzu Green Factory Design, Shimadzu has been engaged in activities to increase the greenery on the Sanjo Works premises. To verify the benefits of increasing these green areas, which presumably helps to reduce heat island effects, meteorological data has been monitored since 2006. During the period from 2006 to 2008, measurements to verify such effects were taken before and after the greenery was expanded. Since the completion of the greenery landscaping works in 2009, air temperatures have been measured at three locations with different environments – one above asphalt, one above grass, and the third in a shady area surrounded by trees. The air temperatures measured in each of these locations were then compared. These measurements indicated that the air temperature in the grassy area was at maximum about 1.5 °C lower than the air temperature measured in the asphalt area. Furthermore, Environmental Report Recycling Resources / Controlling Chemical Substances / Pollution Measures Recycling Resources Environmental Report Shimadzu is actively working on measures to recycle waste generated from manufacturing processes. For example, at the Sanjo Works, over 99.6% of waste was recycled in fiscal 2010, thereby achieving a zero-emission level, which is defined as a recycling ratio of 99% or higher. Similarly, the Seta Works, Hadano Works, and Atsugi Works also achieved zero-emission levels. Furthermore, as we continue to promote the recycling of waste, we are also reviewing ways to treat industrial waste. In particular, we are implementing measures to enhance the value of waste items from production that still have value. We are actively developing such methods, not only as a way to improve the quality of recycling, but to reduce costs as well. On the other hand, more waste was generated in fiscal 2010 than at any time in the past ten years. This was partly due to migrating operations into the new medical systems plant building, and higher R&D levels, but it was also caused by increased production volumes. We will continue to promote measures to reduce waste output levels in future, such as by reviewing manufacturing processes. An electronic manifest system was introduced at the Headquarter Offices district and the Hadano Works. In addition, workshops on how to handle waste generated from sales bases or items received as trade-ins from customers are conducted as part of sales compliance training for all sales bases in Japan. At the same time, the status of waste management, compliance with local ordinances and regulations, and other issues are also checked for each sales base to help improve waste governance for the entire company. Waste Output and Recycling Ratio Unit: t Unit: % 96.2 98.6 98.9 98.5 99.4 98.5 99.6 100 3,000 93.2 93.7 94.3 2,746 84.4 2,499 2,500 2,352 2,324 2,320 2,326 2,297 80 2,130 2,078 2,000 1,812 60 1,532 1,500 40 1,000 20 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Creating Eco-Goods One environmental activity that everyone can participate in is the sorting of paper waste from offices and plants. Sorted and recovered paper is recycled into tissue paper or notebooks, and is then cycled back for use by employees. Having employees experience the benefits of environmental activities in such a tangible way helps employees become more conscious of environmental activities. Tissue paper and notebooks Eco-goods The Handling of PCBs Shimadzu stores previously used waste products containing PCBs (polychlorinated biphenyls). Although registration with the Japan Environmental Safety Corporation (JESCO) has been completed, due to delays in JESCO treatment plans, processing is now scheduled for fiscal 2012 or later. At the same time, Shimadzu Techno-Research Inc. offers technology 22 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 for simple quantitative analysis of trace PCBs in insulating oil. This measurement technology allows PCBs to be measured rapidly and inexpensively, while providing the accuracy to ensure the reliability of measurement values. This technology is even specified in the Manual for Simplified Measurement of Trace PCBs in Insulating Oil, published by the Japanese Ministry of the Environment on January 25, 2010. Environmental Report Recycling Resources / Controlling Chemical Substances / Pollution Measures Controlling Chemical Substances Shimadzu uses a wide variety of chemical substances for manufacturing, R&D, and contract analysis work for customers. Improper handling could lead to an incident or accident, and many of these substances are governed by a variety of laws and regulations. Therefore, through cooperation between the department in charge of legal and regulatory compliance and the departments using these chemical substances, it is possible to confirm that they are being managed in compliance with applicable laws and regulations. In addition, emergency response training is being conducted in respective departments, and the use of substitutes for hazardous substances is being promoted. Using the Chemical Registration Information System (CRIS)* developed at Shimadzu System Development Corporation makes it possible to control individual chemical agents entering and leaving the company on a micro scale. This system facilitates the management of inventories of chemical substances used in each department, as well as the speedy implementation of governmental reports based on PRTR (pollutant release and transfer register) laws. Nevertheless, an environmental accident occurred in fiscal 2010, involving sodium hydroxide, which is used in a neutralization unit for wastewater treatment equipment. About 40 liters of this chemical leaked, a portion of which was scattered externally. After the accident, causes were quickly identified and remediation work performed in close cooperation with government institutions, and measures were implemented to prevent a reoccurrence. In addition, a survey of similar equipment at Shimadzu was conducted as a preventive measure. * For more information regarding CRIS, see also the description of activities by the Shimadzu System Development Corporation on page 31. Usage of Substances Reported for PRTR Each year, Shimadzu registers hazardous chemicals in accordance with PRTR laws, but the total quantity of applicable substances used by Shimadzu is gradually decreasing. Reasons for the decrease include the transfer of turbomolecular pump production from the Hadano Works to the Sanjo Works, reduced use of HCFC for cleaning at the Sanjo Works, and the use of substitute solvents for painting at the Seta Works. Unit: kg 30,000 22,823 23,446 Hadano Works Seta Works Sanjo Works 25,033 20,000 16,250 15,000 10,175 10,000 7,992 5,000 0 2005 2006 2007 2008 2009 2010 For more detailed PRTR data, see page 38. Takafumi Tsutsumi Shimadzu Precision Technology Ltd. Environmental Report 25,000 To reduce xylene and toluene usage, the Seta Works switched to paint solvents that do not contain these chemicals. Initially, there were many problems with paint and solvent not mixing properly and with poor paint adhesion. Solving these problems not only improved paint adhesion, but also improved productivity due to easier cleanup of painting equipment. Further environmental activities in future are also planned. Pollution Measures Air Quality Measurements (Sanjo Works and Murasakino Works) Water Quality Measurements (Sanjo Works) SOx and NOx levels in exhaust gases emitted from boilers used in factories are monitored regularly with respect to Shimadzu standards, which are stricter than the standards in Japanese air pollution laws and Kyoto prefectural environmental regulations. At the Murasakino Works, an aging heavy oil-fired boiler was replaced with a compact gas-fired boiler to help prevent air pollution, and to reduce CO2 emissions. The water quality of plant effluents are periodically monitored and measured with respect to Shimadzu standards, which are stricter than the standards in Japanese wastewater laws and Kyoto city wastewater regulations. In addition to regular measurements of each water quality parameter, the Sanjo Works also utilizes a specialized monitor and intranet LAN to continuously monitor pH and TOC (total organic carbon) levels. Online Total Organic Carbon/Nitrogen (TOCN) Analyzer SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 23 Environmental Report Environmental Measures for Products / Green Procurement Environmental Measures for Products At Shimadzu, we believe that product-related environmental concerns must encompass the entire product life cycle, from procuring materials and parts to disposal. This is also of utmost importance as a management issue in terms of implementing our management principle, "Realizing Our Wishes for the Well-being of both Mankind and the Earth." To reduce the environmental impact of products over their entire life cycle, products are designed based on a policy of building low environmental impact into products. ECO-Label System Measures Environmental Report Shimadzu uses an ECO-label system that permits the application of ECO-label to products that meet Shimadzu standards for environmentally friendly products. Products certified with the ECO-label system between April 2008 and March 2011 are indicated below. ECO-Label Standards (Must satisfy 1 or 2) 1. Energy consumption is at least 25% lower than the previous Shimadzu model 2. Does not contain specified hazardous substances* *Specified Hazardous Substances: Mercury, cadmium, lead, hexavalent chromium, polybrominated biphenyls (PBB), and polybrominated diphenyl ethers (PBDE), the use of which is restricted under the European RoHS directive For more information about products that achieved at least a 25% reduction in energy consumption, see the Special Feature 2 on pages 8 and 9. Products with at Least 25% Lower Energy Consumption Gas Chromatograph Mass Spectrometer: GCMS-QP2010 Ultra, GCMS-QP2010 SE Preparative System for High Performance Liquid Chromatography: LC-20AP Gas Chromatograph: GC-2025 Total Organic Carbon Analyzer: TOC-L Optical Emission Spectrometer: PDA-8000 Moisture Analyzer: MOC63u Image Processing Unit for X-ray Fluoroscopy Systems: SDR-100 Free From Specified Hazardous Substances Turbomolecular Pumps: Optical Devices: TMP-2804/3304/3804/4304 series, Shimadzu Off-Axis Parabolic Mirrors, Polka-Dot Beamsplitters TMP-V2304LM/V2804/V3304 series Laser Devices: Hydraulic Gear Pumps: HK-5500 LUMICUBE Series Frequency Doubled Diode Laser, SD620 series, YP10 series, TME1 series, SME1 series, bulk type QPM devices EGP2 series TMP-V2304 Series Turbomolecular Pump 24 EGP2 Series Hydraulic Gear Pump SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Polka-Dot Beamsplitters LUMICUBE HK-5500 Frequency Doubled Diode Laser Environmental Report Environmental Measures for Products / Green Procurement Green Procurement To make products that are environmentally friendly on a global basis, we are reducing or eliminating the use of hazardous chemical substances, and procuring parts and materials with as low an environmental impact as possible. Similarly, we are minimizing the environmental impact of supplies, equipment, and other items used within the company as well, in order to reduce the overall environmental impact of all of our business activities. Key Points of Shimadzu Corporation Green Procurement 1. Reduce environmental impact 2. Comply with environmental regulations and other requirements 3. Build a partnership with suppliers Building a Partnership with Suppliers We promote the procurement of parts and materials with a low environmental impact. For fiscal 2011, our goal is a 70% green procurement rate for parts and materials used in products. Furthermore, we are aiming for a green procurement rate of 93% for office supplies and other items used within the company. To comply with RoHS, REACH, and other environmental regulations, we have surveyed the chemical content of parts procured via our supply chain. To promote green procurement, it is essential to form a partnership with our suppliers, who represent the core of the supply chain. In order to obtain the cooperation and support of suppliers with respect to green procurement requirements and to reducing their environmental impact, our green procurement policies, known as Shimadzu Corporation Green Procurement Standards, are posted on our corporate website*. In addition, to facilitate deeper understanding, presentations on green procurement were given in Kyoto and Tokyo, and were attended by over 500 suppliers. Complying with Environmental Regulations To manufacture products that do not contain any chemical substances regulated by environmental laws, it is necessary to assess all of the chemical substances included in all constituent parts and materials at each stage, including design, manufacturing, and procurement, and then disseminate this information. At Shimadzu, a dedicated information system is used to share and utilize this huge amount of data on chemical substances among all the Shimadzu Group companies, both in Japan and overseas. With the increasing complexity and strictness of environmental laws in recent years, information must be conveyed from upstream to downstream levels via the supply chain. Therefore, to meet these requirements, the system is expanded to support key manufacturing locations overseas. Presentation meeting *Shimadzu Corporation Green Procurement Standards and other related documents are available for viewing on the Green Procurement page at the following web address:Documents are provided in Japanese, English, and Chinese. http://www.shimadzu.com/about/environmental/green.html Measures to Eliminate All Hazardous Substances from Aircraft Components We have developed a technology related to zinc-nickel plating (with trivalent chromium conversion coating) in order to provide an alternative to cadmium plating (with hexavalent chromium conversion coating), which is used for high-strength steel parts in aircraft. This research, which was commissioned by the Society of Japanese Aerospace Companies (SJAC) and headed by Shimadzu, was conducted for four years, from 2006 to 2009. It resulted in the development of high-quality technology suitable for aircraft components, which require especially high reliability levels. Furthermore, to help with the widespread adoption of this alternative plating technology, we worked to promote standardization of the plating through its addition to the Aerospace Material Specifications (AMS), published by the Society of Automotive Engineers (SAE), which was accomplished in AMS 2417H, issued in October 2010. In recognition of these research results, we received a research award from SJAC for excellence in contract research projects in 2010. Right: Hidefumi Saito, R&D Manager, Research & Development Department, Aircraft Equipment Division Left: Tetsuo Taniguchi, Production Engineering Section, Aircraft Equipment Plant, Aircraft Equipment Division SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 25 Environmental Report Reducing Environmental Impact Environmental Report Internal Environmental Auditing / Education Internal Environmental Auditing It has now been 14 years since Shimadzu first received ISO14001 certification. Internal environmental auditing serves an important role in making continuous environmental improvements. We therefore conduct an annual training session to improve the level of auditors and the quality of audits. For the Headquarter Offices district, the fiscal 2010 internal environmental audit indicated 18 minor nonconformity and 54 observations. For the Kanagawa Offices district, the audit indicated 1 major nonconformity, 1 minor nonconformity, and 12 observations. Environmental Report General Environmental Education As an aspect of general environmental education, we give a presentation on how important it is to comply with the environmental policies and environmental management system requirements indicated in the environmental booklet, which is updated each year. We also lecture on environmental aspects and the environmental benefits of engaging in individual measures, and explain Shimadzu's environmental activities for that year. In addition, in fiscal 2010, we included a discussion of new biodiversity measures. One segment of new employee training was dedicated to general environmental education for new employees. This included an explanation of Shimadzu's environmental measures, and each person was given hands-on experience with sorting each type of waste item. To prevent the educational process from becoming stale, the general environmental education content is constantly varied, by for example having participants watch a topical DVD on environmental issues, or by inviting guest speakers on environmental conservation. Measures to correct these issues were initiated immediately after the audits were finished. The results of internal environmental audits are treated as important audit items in the next fiscal year's continuous improvement measures. In addition, in future we plan to make increasing awareness of voluntary environmental improvements one of the purposes of the audits. Examples include proactively identifying cases of good measures, and then deploying them horizontally to other departments. Total Education of Internal Auditors In fiscal 2010, 74 auditors participated in the annual two-day internal environmental auditor training program. For the 2010 session, an outside instructor was invited to speak on important aspects of the ISO 14001 standards, and important viewpoints when actually conducting internal environmental audits. In addition, we debated what kinds of environmental and managerial effects could arise from environmental risks at Shimadzu. This was based on the environmental risk sensitivity training methods developed by the Environmental Risk Management Society (ERMS) for the electrical and electronics industry in Japan. Environmental risk sensitivity training involves learning to identify multiple environmental risks in a given situation, by relying on each person's experience and point of view for example. Furthermore, topics are constantly varied and updated as an opportunity to learn the importance of seeing things from multiple perspectives. As an example of putting environmental education into practice at Shimadzu, seminars on environmental risk sensitivity training were also offered at the Osaka ATC Green Eco Plaza for the purpose of environmental risk management. General environmental education session Internal environmental auditor training session 26 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Environmental Report Conservation of Biodiversity Shimadzu Measures to Preserve Biodiversity For the last several years, companies have been increasingly expected to engage in measures to help preserve biodiversity. Starting in fiscal 2010, Shimadzu has implemented a "Conservation of Biodiversity" environmental policy, consisting of two main areas – activities to reduce the impact on biodiversity caused by our regular business activities, and various external activities to actively contribute conservation. Firstly, in fiscal 2010, a self-check on biodiversity was conducted to determine how much Shimadzu employees understood about biodiversity, and to assess the current situation for implementing biodiversity measures. Based on the results, in fiscal 2011 we will focus on educating employees so as to deepen their understanding about conservation of biodiversity. In addition, we will plan specific measures to reduce the impact of our business activities on biodiversity. At the same time, we are also participating in activities outside of Shimadzu, such as the Kyoto Model Forest Movement and Kyoto Botanical Garden Cherry Tree Grove Restoration Project, and are teaching onsite classes on biodiversity at elementary and junior high schools. In particular, we have donated carbonized waste wood for use by the Cherry Tree Grove Restoration Project as a soil conditioner to help the cherry trees grow, an activity that fuses our recycling activities with biodiversity conservation activities. We will continue to promote these measures in fiscal 2011. Cherry trees in the Cherry Tree Grove Restoration Project Environmental Report 10th Conference of the Parties to the Convention on Biological Diversity (COP10) At the October 2010 COP10 in Nagoya, Shimadzu set up a booth in the affiliated exhibition event, the Interactive Fair for Biodiversity. At this fair, Shimadzu exhibited the "bidi" biodiversity educational card game we created, thereby helping to convey the importance of biodiversity conservation to the many attendees. We plan to continue actively disseminating information about biodiversity conservation activities in future. Exhibition booth at the Interactive Fair for Biodiversity Shimadzu's Reforestation Activities Since 2008, Shimadzu has participated in the Kyoto Model Forest Movement project sponsored by Kyoto prefecture, which involves activities to help maintain the Shimadzu Corporation Forest in the city of Nantan in Kyoto prefecture. In 2010, 60 participants, including president Nakamoto, helped with thinning and weeding. There was also a woodworking class for the children of participating employees, and the result was a fun day spent in natural surroundings. Comments from Participants We thinned the trees just enough to enhance the amount of sunlight entering between the trees. Compared to the larger forest, we could only complete a small area in one day. Nevertheless, it gave us a chance to experience the grandeur of nature, something that we cannot normally experience. Cuttings from the thinning work are reportedly used to make charcoal fuel, which gives me a new perspective for the next time I participate. Yoshio Ikezawa, Environmental Business Unit, Analytical & Measuring Instruments Division SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 27 Environmental Report External Support External Support Shimadzu also supports various environmental activities outside the company, such as holding environmental seminars, helping to obtain ISO 14001 certification, and giving on-site environmental classes. Meanwhile, the COP10 held in Japan increased general awareness about conservation of biodiversity. We now receive many requests for on-site classes on conservation of biodiversity. We plan to continue actively providing support outside Shimadzu. Totals by Type of Help and by Year Top Cases Bottom Participants Type of Help Year 1999 Environmental Environmental Environmental Urban Regulations ISO Support Management Education Speeches Development *1 2000 2001 2002 2003 Environmental Report 2004 2005 2006 2007 2008 2009 2010 Total 16 360 11 413 18 261 2 32 13 239 8 64 26 421 14 161 5 90 5 62 1 20 5 147 124 2,270 6 303 23 849 20 710 12 492 17 578 9 402 21 672 13 302 21 648 19 585 25 417 15 233 201 6,191 0 0 3 51 5 59 5 54 19 1,550 21 1,450 25 1,268 19 881 30 1,502 28 1,669 32 1,172 29 1,513 216 11,169 0 0 0 0 0 0 11 770 27 1,203 26 1,300 21 1,629 22 1,443 27 2,321 10 403 3 455 3 336 150 9,860 1 350 0 0 0 0 3 340 0 0 5 1,294 3 422 0 0 3 510 3 395 4 272 7 313 29 3,896 0 0 0 0 2 440 3 280 3 526 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 1,246 Individual Activities 0 0 4 108 4 57 2 70 9 305 9 151 5 38 5 112 4 85 6 209 1 75 1 18 50 1,228 Other Total 5 53 15 223 20 276 23 1,013 41 1,421 49 1,527 38 2,038 88 4,401 78 4,661 101 4,450 73 2,899 90 5,156 71 3,323 71 2,411 75 2,783 798 36,083 *1 Activities performed between December 1998 and March 1999 are included in 1999. Student Participation in On-Site Classes Receiving On-Site Classes from Shimadzu Corporation Based on a suggestion from my university students that "if we assisted, we could enjoy the classes from the same perspective as the elementary and junior high school students," we have been inviting university students to assist in on-site classes. I feel that this exposes them to a diverse range of people, including elementary and junior high school students, teachers, and business people, and develops their communication skills. It also builds their confidence because their help is so appreciated. I am sincerely grateful that the students have this opportunity to be useful. Four times a year for the past two years, Hanazono Junior High School has requested on-site classes from Shimadzu, with the assistance of personnel in the Global Environmental Management Department, on general environmental theory, environmental problems, water, and recycling. These classes are always popular with our students. The instructors present their material on global environmental issues with respect to each topic in an interesting manner, and provide opportunities for students to learn and think through experimentation, observations, and games. We also look forward to working with the friendly staff, who are careful to attend to each student, thereby making these classes very popular with students. 28 Dr. Keiko Zaima Professor, Faculty of Business Administration, Kyoto Sangyo University SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Mr. Yukihiro Morisaka Teacher, Hanazono Junior & Senior High School Environmental Report External Support Environmental Regulation Seminars In August 2010, Shimadzu International Trading (Shanghai) Co., Ltd. sponsored a Shimadzu Hazardous Substances Seminar in Shanghai and Dongguan. Many Japanese companies in China leave the quality control of locally manufactured products to local personnel. It is therefore important for these personnel to understand the latest information regarding regulations in Europe and the U.S. This includes information about REACH and RoHS requirements in Europe and TSCA in the U.S., and about the increasing trend toward halogen-free products. Through these seminars, Shimadzu has accordingly provided the most recent information on such laws and regulations, as well as analytical methods and other solutions for analyzing hazardous substances. We hope that by participating in these seminars, companies obtain the latest information and solutions necessary in order to respond quickly to changes in increasingly strict environmental regulations. Accepting Trainees From Overseas monitoring technology. We also provide tours of our wastewater JICA training session processing facility, water quality monitoring equipment, and environmental analysis instruments onsite. Since many of the participants will eventually become political leaders in their home countries, this provides a great opportunity to promote and improve their understanding of Shimadzu's technology and products. Support for the United Nations University Environmental Monitoring Project Shimadzu has continuously supported the UN University's Environmental Monitoring Project, from phases 1 to 5. This project was established in 1996 and is now an international endeavor involving cooperation by major research institutions in 11 countries in Asia. With the aim of reducing and appropriately managing environmental pollution, the objective of the project is to continually accumulate environmental data by monitoring the state of environmental pollution in the respective countries. Simultaneously, the project also provides technical support for building the capacity of local engineers and developing organizational structures. Currently, in Phase 5, activities are focused on the analysis of PCBs (polychlorinated biphenyls) and brominated flame retardants. International symposiums to announce results were held in January 2010 in India and in March 2011 in China. An international symposium is scheduled in Tokyo during the second half of fiscal 2011 to summarize the results from Phase 5. Shimadzu is committed to actively supporting research institutions and researchers in the respective countries by using the specialized technology and expertise we have acquired as an analytical instruments manufacturer. This includes the lending of environmental monitoring instruments, and the convening of workshops and symposiums on analytical technology. URL : Link to November 25, 2008 press release: Continued Support of the United Nations University Environmental Monitoring Project http://www.shimadzu.com/about/pressrelease/5iqj1d0000002ot2.html UN University website: Monitoring and Assessment Network for Asian Governance of Environment (MANAGE) http://isp.unu.edu/research/projects/manage/index.html SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 29 Environmental Report The Japan International Cooperation Agency (JICA), Japan Cooperation Center, Petroleum (JCCP), and many other organizations have programs for the invitation of trainees from developing counties to Japan to acquire industrial technology. Many such programs are intended to teach environmental technologies. Since Shimadzu has expertise in environmental equipment and analysis, we are often asked to accept such trainees. Currently, we conduct over ten lectures a year, involving about 100 trainees, on environmental management methods and environmental Environmental Report Measures by Affiliated Companies Measures by Affiliated Companies Shimadzu Techno-Research Inc. Acquires ISO Certification Environmental Report Shimadzu Techno-Research Inc. obtained ISO 14001 certification in March 2011. The following are comments from president Shuro Fukunaga. Although only appointed president in June 2010, I found it odd that Shimadzu Techno-Research Inc., which features environmental analysis as a core business segment, had not yet obtained ISO 14001 certification. There were a number of reasons, but to summarize the attitude within the company, there was a feeling that we could get along by fine without spending the time and money required to obtain ISO 14001 certification. However, in the fall of 2010, the city of Kyoto indicated that our wastewater had exceeded the environmental standards for certain criteria. This incident caused us to reevaluate our procedures for inspecting and cleaning our wastewater treatment equipment. Fortunately, this specific case was resolved quickly and without further problems, but it made us realize that our previous assumption that we could get along fine on our own was inadequate. Now we share an attitude that to reduce our environmental impact on a daily basis, we need to confirm levels and make improvements on a daily basis. Subsequently, we started working toward obtaining ISO 14001 certification. Because we had just experienced the incident mentioned above, preparing the corresponding organization within the company went smoothly, and we obtained certification as scheduled, in March 2011. We sincerely appreciate all the work invested by those involved, and the generous support we received from the Global Environmental Management Department. However, obtaining ISO 14001 certification is only the first step toward reducing our environmental impact. In future, we must identify the various aspects and factors in our company that have an impact on the environment, and then engage step by step in measures to make improvements. Thank you for your ongoing support. Shuro Fukunaga, President and Representative Director Shimadzu Techno-Research Inc. Overview of Shimadzu Techno-Research Inc. Shimadzu Techno-Research is involved in the environmental analysis of air, water, gas emissions, and soil. They are also involved in environmental remediation and surveys related to sick house syndrome and soil pollution, as well as proteomic analysis for life sciences, pharmaceutical research support, the analysis of food products, and product and material research and testing for green procurement and materials analysis. Promoting Environmentally Friendly Packaging Shimadzu Logistics Service Corporation is involved in a variety of environmental conservation activities. The current focus is on switching to more environmentally friendly product packing materials. Heavy items were conventionally packed in crates made of lumber and plywood, but we are now switching to reinforced corrugated containers. Unlike conventional corrugated containers, reinforced corrugated containers feature a specially processed liner that yields comparable strength to a wooden crate. The environmental benefits of switching to reinforced corrugated containers are conservation of wooden resources and reduction of CO2 emissions. For example, packing the same volume using reinforced corrugated containers reduces wood usage by 60%. Furthermore, such containers can be made lighter and smaller, which reduces CO2 emissions during shipping. Since they are recyclable, this also reduces the CO2 emissions resulting from incinerating packing materials, and means that fewer trees need to be cut down. We intend to continue proposing ways to conserve the environment in the context of packing and distribution sectors. Packing products Overview of Shimadzu Logistics Service Corporation Shimadzu Logistics Service Corporation is in charge of all aspects of logistics worldwide, including the distribution of Shimadzu products throughout Japan and overseas. This covers everything from receiving products at warehouses, to storage, shipping out from warehouses, wrapping, packing, and transport. They are also in charge of designing packing materials, packing items for export or shipment elsewhere, receiving materials and procured parts, consolidating and shipping parts from the Parts Center, and production logistics within plants and for subcontractors. 30 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Environmental Report Measures by Affiliated Companies Development of the CRIS Chemical Registration Information System Shimadzu System Development Corporation developed the Chemical Registration Information System (CRIS) five years ago with the help of Kyoto University's Faculty of Engineering. The system has now been adopted by over 50 universities, research centers, and companies, including the University of Tokyo and Waseda University, and versions are actively updated with customer requested customizations. In future, the system will include a host of functions, including SMIS (Safety Management & Information System), to support not only chemical management but also environmental preservation centers and departments in charge of the environment, safety, and public health. These functions will be offered as optional software developed by Shimadzu based on feedback from customers actually using the software. The screenshot is from a system that enhances the visibility of risks associated with chemical substances, which was developed in conjunction with Research for Environment, Health and Safety Education (REHSE). When a chemical substance is registered, this software displays the danger level, prior relevant accidents, and other information, all on one easy-to-view screen. Overview of Shimadzu System Development Corporation In addition to developing and promoting the sale of CRIS and other environmentally beneficial products, Shimadzu System Development Corporation is also engaged in developing systems and software aimed at contributing to society, such as patient paging systems and medical malpractice prevention systems for use in hospitals. Shimadzu Rika Corporation supplies environmental education materials for elementary and junior high schools. The fuel cell experimental apparatus lets students experiment with fuel cells to obtain electric energy directly from the reaction between hydrogen and oxygen. This system is well suited to lessons on aqueous solutions and ions for 9th graders, and because the experiment only generates water, it is also very important for students to learn that fuel cells provide a clean energy source. The solar cell apparatus lets students experiment with solar electricity by connecting a motor that drives a colorful disk or other devices to a small solar panel. The electrical energy obtained from sunlight can be observed from the resulting sound, light, and rotational motion. Asbestos in Ceramic Wire Gauze In December 2010, it turned out that asbestos had been detected in ceramic wire gauze sold by Shimadzu Rika Corporation for use in school science experiments. In response, Shimadzu Rika Corporation immediately began recalling the wire gauze from customers, and reported the problem to government authorities, while customers were provided with substitute mesh not containing asbestos. Shimadzu Rika Corporation has reinforced their internal quality control system and is committed to preventing a reoccurrence. Overview of Shimadzu Rika Corporation In addition to carrying on Shimadzu's original business, the manufacturing and sales of educational physics and chemistry instruments, Shimadzu Rika Corporation also manufactures and sells environmental equipment, and serves as a total system integration project (TSIP) consultant for new construction and expansion projects at universities. In April, they started expanding overseas as a comprehensive sales and engineering company for scientific equipment. Fuel cell experimental apparatus Affiliated Companies in China Engage in Tree Planting Activities Eight Shimadzu subsidiaries in China participated in forest planting activities in Jiangxi and Hebei provinces, and donated a total of 200,000 CNY for reforestation. The first planting event took place in the fall of 2010 in Pingquan county, Hebei province. A large number of employees from the affiliated companies participated in planting about 200 pagoda trees (styphnolobium japonicum, a deciduous tree native to China). Planting pagoda trees SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 31 Environmental Report Supplying Environmental Education Materials Social Report Product Quality Control / Safety / Customer Satisfaction Product Quality, Safety and Customer Satisfaction Shimadzu is engaged in a variety of activities to improve product quality, product safety, and customer satisfaction. 1 Fundamental Quality Assurance Policies and Customer Satisfaction Shimadzu's actions are based on our corporate philosophy of Contributing to Society Through Science and Technology, and our management principle of Realizing Our Wishes for the Well-being of both Mankind and the Earth. We therefore strive continuously to provide the quality necessary for customer satisfaction throughout all stages of the product life cycle for all products manufactured and sold by the Shimadzu Group. Consequently, our fundamental policy for quality assurance is "At each stage of the product life cycle, all employees shall make every effort to provide quality that satisfies customers internationally." Our activities are intended to improve customer satisfaction by establishing systems capable of changing the measures we use in operations at each stage of the product life cycle, so as to accommodate the changing requirements of markets and customers. * The product life cycle is represented by 12 stages – (1) Marketing and market surveys, (2) Product design and development, (3) Process design and development, (4) Purchasing, (5) Manufacturing or provision of service, (6) Verification, (7) Packaging and storage, (8) Sale and delivery, (9) Installation and initial use, (10) Technical support and supplemental service, (11) Post-sale Social Report surveys, and (12) Disposal or recycling at the end of product life. 2 Product Quality and Safety The term product quality typically implies good performance, but it also means long service life, easy operation, safety, and many other kinds of quality. However, the most fundamental aspect of quality is safety. To ensure safety, Shimadzu uses risk assessment and failure mode and effect analysis (FMEA) procedures during the design stage. Risk assessment refers to identifying hazards in a product (such as moving parts, high voltage, or high temperatures), assessing the risk level based on the corresponding severity of harm and the probability of occurrence of harm, and then establishing safety measures to reduce any unacceptable risks. FMEA is used to predict how the failure of a component part or unit would affect product reliability and safety, and to then implement any necessary corrective measures. Shimadzu improves reliability and safety technology by providing training and seminars on risk assessment and FMEA, and by establishing and observing relevant regulations. Furthermore, reliability and safety is verified by testing. This includes performing environmental and endurance testing to ensure that performance is not compromised even if changes occur in the environment where the product is used (such as temperature, humidity, vibration, and impacts); EMC testing to investigate whether external electromagnetic noise causes malfunctions, or whether the products themselves emit external noise; and conformance testing to ensure conformance with IEC international safety standards for preventing fires and electrical shocks. Furthermore, product ease-of-operation and usability from the customer's perspective are assessed by usability testing, and safety is thoroughly checked to make sure that there are no latent unexpected dangers. 3 Quality Management System The Shimadzu Sanjo Works facility obtained ISO 14001 certification for its environmental management system in 1997 and has been obtaining ISO 9001 certification, the international standard for quality management systems, in succession for each division, since 1994. We have also obtained ISO 13485 certification for medical device requirements, and JIS Q 9100 certification for aircraft equipment industry requirements.* Quality management systems are also being successively introduced at relevant subsidiaries in Japan and overseas. As of March 2011, 17 subsidiaries have obtained certification in Japan and 15 subsidiaries overseas. Based on the fundamental quality assurance policies indicated above, the effectiveness of measures and processes to ensure product quality and safety is assessed under the quality management system, and the PDCA cycle is repeated to achieve further improvements. In this way, we are increasing customer satisfaction by continuously making improvements at each stage of the product life cycle. * Status of Shimadzu obtaining quality management system certification Analytical & Measuring Instruments Division (1994) Medical Systems Division (1994, ISO 13485 : 1994) Aircraft Equipment Division (JIS Q 9100 : 1999) Semiconductor Equipment Division (1998) Manufacturing Center (2000) Device Department (2005) Testing with a vibration testing machine 32 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 Social Report Investor Relations Activities Dividend Policy We aim to maintain a stable dividend while taking ongoing earnings performance into account. With this goal in mind, we will continue our efforts to boost earnings – and hence return on equity – by further bolstering our earning capacity and financial position, while maintaining sufficient internal reserves to invest capital expenditures and R&D development to prepare for future growth and strive to expand our businesses. Promoting the Release of Information in a Timely and Proactive Manner Shimadzu is committed to proactively releasing information to financial analysts and institutional investors in a timely manner, to help ensure fair market valuation. Holding Regular Briefings and Proactive One-On-One Meetings Shimadzu publishes various types of IR materials for shareholders and investors. Financial reports, presentation materials for financial results and Medium-Term Management Plan, and fact books are available in English as well. Notification of annual report publication in English is provided via major financial media overseas, and the annual report is sent to investors throughout the world upon request. When these documents are published, they are simultaneously posted on Shimadzu's Japanese and English language websites, to ensure that institutional investors in Japan and overseas are provided with information in a timely manner. Names of Publications Publication Frequency Financial Report Quarterly Presentation Materials (Financial Results) Semiannually Annual Report Annually Fact Book Annually Presentation Materials (Medium-Term Management Plan) Every 3 years Social Report Briefings are held promptly after financial results are announced, in order to explain financial information in more detail. For interim and annual results, a briefing is held for financial analysts and institutional investors, at which the CEO explains the content of financial reports and estimated results. The managing director in charge of IR and CFO explain first and third quarter financial results in a telephone conference. A presentation is also given on the 3-year management plan, at which the CEO provides guidance on medium-term management plan and results. In addition, information is provided in a timely manner, as appropriate, via presentations for individual key business segments, at presentations in Shanghai regarding our rapidly growing Chinese operations, and at product exhibition booths. We also actively conduct one-on-one meetings with institutional investors in Japan and overseas, including participation in events sponsored by securities companies. We remain committed to improving the extent to which institutional investors understand Shimadzu through in-depth debate. We are committed to providing information to individual investors as well, by holding business briefings, and by participation in business briefings held by securities companies. Publishing a Wealth of Materials Inclusion in SRI Index IR Briefings Since September 2005, Shimadzu's stock has been included in the FTSE4Good Index Series for socially responsible investments (as of April 2011), which evaluates not only profitability and financial strength, but also environmental conservation and social contribution measures. This index rates Shimadzu highly for our employee policies and other social activities. Shimadzu is committed to continuously raising the levels of social contribution and to maintaining transparency. SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 33 Social Report Human Resource Management Policies / Creating an Employee-Friendly and Safe Workplace Human Resource Management Policies At Shimadzu, we consider our corporate philosophy and management principle as representing what Shimadzu should strive to be. To facilitate their achievement, we have identified the following characteristics expected of our employees, which are used as the basis for measures to develop and manage our human resources. Characteristics Expected of Our Employees (1) Boldly embraces challenges in new fields by aiming high with a long-term view, originality, and a positive and enterprising spirit, not limited by precedent or convention, and without fear of failure. (2) Acts with speed, faithfully engages in his/her mission with a sense of responsibility once it's started, never gives it up until it's finished, and tries to apply learned processes and experiences to the next challenge. (3) Maintains a desire for personal growth and a commitment to continuously strengthening and improving the overall capabilities of the organization he/she belongs to, acquires a higher level of knowledge and skills than customers and competitors, and strives to be an expert in their field (the department or organization in their charge, their assigned field or their area of expertise/specialty). (4) Earnestly strives to meet the expectations of customers and other relevant people inside and outside the company, is committed to building trust, values cooperating with others, and acts unselfishly for the highest good of the whole. Social Report Education System Human resource development strengthens our managerial resources. To develop characteristics expected of our employees, Shimadzu develops personnel through various types of training, including job level-specific training, job type-specific training, and selective training, to develop Shimadzu business leaders of tomorrow. After new employees are assigned to departments, a mentor system is used to ensure that each workplace takes responsibility for the training of new employees. New employee training 34 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 To strengthen Shimadzu Group management capabilities, training is also provided for group companies as necessary. We also provide assistance for self-directed learning through a flex plan, as well as a monetary incentive program for acquisition of qualifications useful to the company. These programs are intended to contribute to corporate performance by encouraging a culture of self-development through lump-sum payment to employees who obtain and use qualifications important for Shimadzu business operations. Selective training Social Report Human Resource Management Policies / Creating an Employee-Friendly and Safe Workplace Creating an Employee-Friendly and Safe Workplace Family and Child Care Support Shimadzu is committed to providing child care, nursing care, and other systems and policies necessary to help employees balance both their work and home life, according to the lifestyle of each individual. For example, at Shimadzu, in addition to a postnatal leave of eight weeks, a one year leave is generally allowed for child care, and this can be extended up to the point the child is able to enter daycare, which exceeds the period specified by Japanese law. Similarly, the period permitted for reduced working hours to allow for child care can be extended beyond what is specified by national laws, up to the end of the third grade. In 2009, by offering generous policies such as those described above, Shimadzu received certification from Japanese Ministry of Health, Labour and Welfare as an organization that meets requirements prescribed by the Act on Advancement of Measures to Support Raising Next-Generation Children. <Child Care Policies (in Japan)> Shimadzu Legal Requirement 12 months after birth or 12 months after the end of until the child enters daycare postnatal leave Child care leave (maximum 18 months) (extendable until the child enters daycare) Until the child enters elementary school Until the end of third grade 6 weeks before birth and 8 weeks after birth 8 weeks before birth and 8 weeks after birth Short workday for child care Pre and postnatal leave <Nursing Care Policies (in Japan)> Legal Requirement Shimadzu Nursing care leave 3 months 1 year Short workday for nursing care 3 months As long as needed Occupational Health and Safety To supply products that customers can use with confidence and trust, it is essential that the health and safety of employees are ensured. It is therefore the responsibility of the company to ensure a safe and comfortable work environment. Based on this understanding, Shimadzu has promoted health and safety activities with the slogan, "Let's all promote risk assessment. Let's all make a healthy and lively workplace for a healthy mind and body." Occupational Accidents (10 years) Total Accidents Accidents Requiring Days-Off (among all accidents) 20 16 15 10 9 7 4 2001 3 1 0 2002 2003 0 9 2004 8 3 2 1 0 0 2005 2006 2007 2008 3 2009 3 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 8 9 7 9 9 1 8 16 11 12 Deaths 0 0 0 0 0 0 0 0 0 0 Days Off 4 1 0 3 2 0 0 3 3 3 Permanent Injurie 0 0 0 0 0 0 0 0 0 0 Rate per 1,000 People 2.3 2.8 2.3 2.8 2.8 0.3 2.4 6.0 3.5 3.7 1.24 1.43 1.11 1.51 1.51 0.16 1.33 2.55 1.86 2.04 1.01 1.19 0.16 1.33 2.08 1.35 1.53 0.50 0.33 0.00 0.00 0.48 0.51 0.51 Frequency Ratio 5 9 8 12 11 Number of Incidents Number of Accidents Year Total Accidents Total Accidents Without days off Days Off 0.62 0.16 0.00 Severity Rate 0.017 0.002 0.000 0.002 0.012 0.000 0.000 0.003 0.002 0.003 Frequency ratio for total accidents : Number of accidents per million labor hours Frequency ratio for days off : Number of accidents per million labor hours where the subject took days off Severity rate : Number of lost work days per 1000 labor hours SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 35 Social Report Preventing Workplace Accidents There is no such thing as perfect safety in the workplace. There is always some level of risk. If such risks are left as they are, they could eventually cause a workplace accident. Therefore, by assessing risks to identify any latent dangers or hazards in the workplace, preemptive measures can be implemented based on assessment results to reduce such risks and help create a safe and secure work environment. Maintaining and Promoting Mental and Physical Health In addition to maintaining the workplace environment, it is also necessary to maintain and promote the mental and physical health of each employee. To maintain a healthy mind, Shimadzu addresses mental stress as early as possible by providing training programs for individual employees and for supervisors. In addition, assistance is provided to help employees with mental-health-related absences return to work as smoothly as possible. Shimadzu also helps maintain and promote the physical health of employees. This includes remedial measures such as giving health advice and changing working conditions based on the results of medical checkups, and the presentation of classes for employees to prevent lifestyle related diseases. Social Report Coexisting with Society Coexisting with Society Shimadzu Hands-On Analysis School Based on the desire to provide an opportunity for kids to take an interest in science, the Shimadzu Hands-On Analysis School lets kids try operating a spectrometer, which uses the properties of light to analyze samples. These classes, which started in 2008, have now been held over 40 times, during spring and summer school breaks. To date, about 450 mostly junior high school students have participated. In fiscal 2010, these classes were also given during the Science Agora 2010 event in Tokyo, which gave many kids the opportunity to experience the fun of learning about science. The classes consist of three steps (1) Learn (about light and color), (2) Create (make a monochromator), and (3) Experiment (analyze shaved-ice syrup and green tea). Each step provides an opportunity for the students to learn about and take an interest in how the spectrometer works, and about light, the basis for the instrument's operation. Comments from participants and accompanying teachers include, "It was great learning about something we could not try at school," and "It made me want to find out more about light on my own." Shimadzu Hands-on Analysis School Contributing to Society Through Tennis In an effort to contribute through sport to the "Well-being of both Mankind and the Earth," Shimadzu has focused particularly on promoting tennis. Shimadzu tennis team members work to actively promote tennis in Japan by teaching various types of tennis classes, and by supporting tennis tournaments held all over Japan. Special Support for the Shimadzu All Japan Indoor Tennis Championships Each year in March, Shimadzu is a special sponsor of the Shimadzu All Japan Indoor Tennis Championships in Kyoto. Next to the All Japan Tennis Championships, this is the largest tournament sponsored by the Japan Tennis Association. It attracts many top professional tennis players from Japan and around the world, and results in many furiously fought matches. Social Report Junior Tennis Classes Shimadzu tennis team athletes teach junior tennis classes each year to elementary through high school aged students in the local area. By receiving technical instruction from the Shimadzu athletes, and by interacting with them, local kids learn the fun of playing tennis. Junior Tennis Classes Shimadzu All Japan Indoor Tennis Championships Women's Doubles Finalists Shimadzu athletes Ito and Taira are on the right Dr. Hiromichi Morikawa Receives 30th Shimadzu Award 12 R&D Grants Also Awarded to Young Researchers The winner of the 30th Shimadzu Award and recipients of 12 R&D grants were decided on by the Shimadzu Science Foundation, and honored at an awards ceremony on February 21, 2011. The 2010 Shimadzu Award was given to Dr. Hiromichi Morikawa (Professor Emeritus, Hiroshima University). This award is given for prominent results in basic research in scientific technology, mainly in scientific measurement and associated fields. Dr. Morikawa achieved this by pioneering a new method of introducing genes directly into intact plant cells using electrical pulses. His research achievements during his long career have not only contributed to fundamental knowledge in the field of molecular cell biology, but have also 36 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 contributed to the development of practical electrical gene introduction technology, and are highly regarded internationally. In addition, out of many applicants, 12 young researchers were awarded grants to support their research and development work. Shimadzu Science Foundation Social Report Coexisting with Society Participating in Scientific Technology Exhibits and Supporting Science Education Shimadzu is involved in many activities to stimulate children's interest in science, by for example participating in various science-related exhibitions and events designed for kids, and by conducting classes on science experiments using Shimadzu analytical instruments and balances. Using Balances for a Hands-On Class on Levers Each autumn, Shimadzu participate in Youngster's Science Festival and Oike Festival, both held in Kyoto, where kids learn and experience the principles of levers using Shimadzu balances. Workshop Lesson Teaches Importance of Making Things As part of the Kyoto Monodzukuri (making things) promotion activities, sponsored by the Kyoto City Board of Education, Shimadzu alumni provided elementary kids from Kyoto City with a hands-on lesson about investigating the strength of paper rods created by the kids. Oike Festival Monodzukuri workshop Social Report Renovated Shimadzu Foundation Memorial Hall Opens to Public The comprehensive renovations conducted as part of Shimadzu's 135th anniversary celebrations are now finished, and the newly renovated hall was opened to the public on April 1, 2011. Renovations focused on the following points. Previously, products produced since Shimadzu was founded were exhibited by era, but now they are rearranged by theme to increase visitor interest. The traditional Japanese style room with garden, not previously open to the public, can now be viewed. In order to continue using the original building, which is over 100 years old, the entire structure was reinforced to meet earthquake and other standards. The arrangement of exhibits was supervised by a specialist, and the display methods and interior design were handled by a design company. Exterior This renovation has transformed the hall into an inviting museum with a focus on hospitality. We look forward to your visit. (Shigeki Sakon, Director, Shimadzu Foundation Memorial Hall) Exhibits inside the hall SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 37 Data Detailed Environmental Load Data Detailed Environmental Load Data <CO2 Emissions> Unit : tons 2000 12,955 919 − − 2,425 − Sanjo Works Technology Research Laboratory Seta works Murasakino Works Hadano Works Atsugi Works 2001 12,456 946 2,661 − 2,241 − 2002 12,276 892 2,686 − 2,247 − 2003 12,249 901 2,938 − 1,895 857 2004 12,979 1,004 3,148 − 1,993 940 2005 14,176 934 3,188 − 1,951 877 2006 14,059 1,472 3,140 − 1,823 874 2007 14,131 1,463 3,107 − 1,663 783 2008 15,126 1,595 2,901 − 1,509 809 2009 14,521 1,561 2,256 427 1,610 654 2010 16,290 1,667 3,123 435 1,624 634 *The power conversion factor used for all years is 0.378 kg-CO2/kWh <Electrical Power Usage> Unit : thousand kWh 2000 27,608 2,556 − − 5,568 − 2001 27,082 2,494 6,872 − 4,936 − 2002 26,220 2,351 6,878 − 4,817 − 2003 26,491 2,373 7,500 − 4,115 2,160 2004 28,353 2,465 8,113 − 4,042 2,225 2005 30,899 2,608 8,032 − 4,118 2,193 2006 31,821 4,097 8,154 − 4,225 2,262 2007 31,954 4,310 8,020 − 4,215 2,210 2008 35,127 4,340 7,485 − 2,925 1,853 2009 33,731 4,248 5,820 844 3,304 1,476 2010 37,540 4,389 8,095 924 3,532 1,580 2000 1,306.0 6.8 − − 219.0 − 2001 1,340.0 8.9 627.0 − 321.0 − 2002 1,115.0 8.3 508.0 − 181.0 − 2003 1,307.0 8.3 609.0 − 186.0 20.0 2004 1,332.0 9.5 822.0 − 170.0 18.0 2005 1,239.0 10.5 865.0 − 183.0 26.0 2006 1,259.0 15.2 843.0 − 160.0 43.0 2007 1,303.0 17.5 840.0 − 149.3 15.7 2008 1,493.0 18.6 778.0 − 186.6 22.7 2009 1,304.4 18.3 477.0 101.9 163.0 12.9 2010 1,770.7 19.3 709.1 105.5 128.2 13.6 2004 98.0 78.0 93.7 − 94.4 99.9 2005 98.0 90.0 99.6 − 98.0 99.6 2006 98.5 78.3 100.0 − 97.8 100.0 2007 97.6 76.7 100.0 − 100.0 98.7 2008 99.3 73.3 100.0 − 100.0 99.1 2009 98.2 78.1 100.0 96.5 100.0 100.0 2010 99.7 79.4 100.0 98.9 100.0 99.7 2004 232,939 7,336 10,204 − 11,232 12,118 2005 206,682 7,689 9,927 − 11,000 1,116 2006 185,393 8,628 9,708 − 11,046 14,054 2007 182,315 10,391 10,509 − 13,599 8,461 2008 169,235 9,087 10,881 − 17,480 7,043 2009 183,969 8,574 10,733 3,477 10,942 5,579 2010 222,653 11,756 10,519 3,999 10,464 6,596 Sanjo Works Technology Research Laboratory Seta works Murasakino Works Hadano Works Atsugi Works <Waste Output> Unit : tons Sanjo Works Technology Research Laboratory Seta works Murasakino Works Hadano Works Atsugi Works *Waste output values include industrial waste, general waste from business operations, and items with value. <Recycling Ratio> Unit : % 2000 86.0 76.5 − − 74.8 − Sanjo Works Technology Research Laboratory Seta works Murasakino Works Hadano Works Atsugi Works 2001 94.0 65.6 92.7 − 91.6 − 2002 96.0 62.0 91.2 − 88.0 − 2003 97.0 70.7 91.5 − 87.9 77.1 *Recycling ratio = (total waste output – eventually buried waste) / total waste output <Tap Water Usage> Unit : m Data 3 Sanjo Works Technology Research Laboratory Seta works Murasakino Works Hadano Works Atsugi Works 2000 260,798 10,463 − − 16,697 − 2001 213,889 9,444 9,318 − 15,396 − 2002 188,815 8,730 8,163 − 13,424 − 2003 218,070 8,838 9,392 − 12,659 9,869 <Usage of PRTR Reported Substances> Unit : kg Plant & Chemical Name (Chemical No.) HCFC-141b (176) Sanjo Works HCFC-225 (185) Nickel and its compounds (309) Xylene (80) Seta works Toluene (300) Hadano Works HCFC-225 (185) 2005 2,755 2,275 4,715 3,797 5,381 3,900 2006 2,407 2,858 4,734 4,802 3,113 5,532 2007 3,110 3,075 4,080 5,040 3,456 6,272 2008 2,940 3,662 2,817 4,733 2,098 − 2009 2,466 3,949 2,387 1,373 − − 2010 − 2,233 4,019 1,740 − − *Substance numbers conform to current PRTR law. The table lists substances reported to the government. The "-" symbol in the table indicates less than 1.000 kg. <Detailed Data Reported for PRTR in fiscal 2010> Unit : kg Plant & Chemical Name (Chemical No.) Sanjo Works Seta works 38 HCFC-225 (185) Nickel and its compounds (309) Xylene (80) Usage 2,233 4,019 1,740 Atmospheric Discharge to Emissions Public Waters 1,678 − 1,740 SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 − − − Quantity Discharged Transferred Buried at Transferred Shipped as to Soil Beyond Recycled Application Relevant Site to Sewer Part of Product at Relevant Site Relevant Site − − − 16 539 − Cleaning − − − 1,600 − 2,419 Plating − − − − − − Paint Data History of Shimadzu Environmental Activities History of Shimadzu Environmental Activities 2003 •Shimadzu Scientific Engineering Services, Tokyo, Ltd. (currently Shimadzu Access Corporation) receives ISO14001 certification •ISO14001 certified site expanded to the Kanagawa Offices district, by integrating the Hadano Works and the Atsugi Works •Eco-Club created "The Adventures of Mr. Raindrop" board game 2004 •Biotope built on roof with grant from Kyoto prefecture •Exhibited company booth at Osaka ATC Green Eco Plaza 2005 •RoHS seminars started for overseas customers •Participated in Global Warming Prevention Symposium 2006 •Shimadzu Science East Corporation receives ISO14001 certification •Shimadzu Science West Corporation receives ISO14001 certification •Participates in activities related to the first anniversary of the publication of the Kyoto Protocol •Eco-Club receives commendation from the Minister of the Environment for their activities to prevent global warming 2007 •Awarded the 5th Japan Environmental Management Award •Shimadzu Logistics Service Corporation's environmentally friendly packing materials win the 2007 Japan Packaging Contest Electric Equipment Packaging Category Award 2008 •Presents case examples of corporate environmental activities at the Second National Convention on Mottainai •Participates in ASEEP 21 (Ministry of the Environment After-School Environmental Education Project for 21st Century Children) (until 2010) •Participates in Kyoto Model Forest Movement 2009 •ISO14001 certificied site expanded to include the Murasakino Works in the Headquarter Offices district •Completely stops using CFC substitute HCFC-141b 2010 •Starts Save the Energy Project •Exhibits "bidi" card game at the Interactive Fair for Biodiversity at COP10 2011 •Shimadzu Techno-Research Inc. receives ISO14001 certification •Sanjo Works receives Kansai Bureau of Economy, Trade and Industry Director's Award for Outstanding Plant Energy Management Editor's Postscript Thank you for reading through the 2011 Shimadzu Environmental and No doubt different readers will have differing opinions and impressions Social Report. In preparing this report, we have tried to emphasize the regarding Shimadzu's activities. Therefore, we would be very grateful three main areas of Shimadzu's environmental activities by introducing for your feedback on our activities and the content of this report, activities in each area as Special Features, and to highlight as many including any additional information that you feel should have been employees as possible on an individual basis. disclosed, so that we can make subsequent improvements. SHIMADZU ENVIRONMENTAL AND SOCIAL REPORT 2011 39 Data 1973 •Environmental Preservation Section established 1978 •Participation in the formation of regional river beautification activities: “Industrial Association for the Beautification of the Omuro and Tenjin Rivers” 1991 •Hadano Works and Tokyo Research Center conclude an Environmental Safety Agreement with Hadano City 1992 •New management principle “Realizing our Wishes for the Well-Being of both Mankind and the Earth” established 1993 •Business related to “Green Plastic” biodegradable plastic started 1994 •Policies for Actions Related to the Global Environment and Voluntary Environmental Plan established Use of specific cleaning CFCs and 1.1.1-trichloroethane completely eliminated 1995 •First Environmental Committee meeting held •Support provided for the UN University’s project: Environmental Monitoring and Analysis in East Asian Regions — Transfer of Technologies and Environmental Management 1996 •Grand Prize for the Global Environment Award (Science and Technology) received •Environmental Management Dept. established Full-scale, company-wide movement to separate office and general waste for recycling started 1997 •Recycle-oriented design guidelines established •Sanjo Works receives ISO14001 certification Green procurement of copy paper and other items started 1998 •Activities targeting zero emissions (recycling ratio of at least 99%) started •Established design guidelines for reducing environmental load 1999 •ISO14001 certified site expanded to include Technology Research Laboratory 2000 •Environmental accounting established and listed in the environmental report 2001 •Awarded the 10th Global Environment Award Grand Prize (Minister of Education, Culture, Sports, Science and Technology Award) •Awarded the 10th Nikkei Global Environmental Technology Award •Environmental Preservation Agreement signed with Otsu city ISO14001 certified site expanded to include Seta Works in the Headquarter Offices district 2002 •Environmental management seminar at Chinese National Environmental Protection Agency •Affiliated companies p started environmental activities,, and the ISO14001 cetified site expanded to include them in the Headquarter Offices district For further details about the activities featured in this Environmental and Social Report or our website, contact Shimadzu as follows: Global Environmental Management Department 1, Nishinokyo-Kuwabara-cho, Nakagyo-ku, Kyoto 604-8511, Japan TEL: +81-75-823-1113 FAX: +81-75-823-2062 E-mail: [email protected] URL: //www.shimadzu.com Shimadzu’s principles concerning environmental issues are available on its home site. The CO2 generated preparing this Environmental and Social Report was offset with reduction in CO2 accordance with the Kyoto Eco-point Model Project. In the interest of environmental-friendliness, this report is printed with vegetable oil on FSC® certified paper, sourced from responsibly managed forests. 0215-08101-10ANS