Environmental Report
Version: 2013

Iseki aims to“live peacefully with a stable natural environment”

I N D E X
Message from our president . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Outline of our business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Major products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Sociality reportƔ Corporate governance and compliance . . . . . . . . . . . . . . . . 5
Ɣ Aiming to respect human rights and . . . . . . . . . . . . . . . . . . . 6
for a happy workplaceƔ Employment and human resource development . . . . . . . . .7
Ɣ To achieve customer satisfaction . . . . . . . . . . . . . . . . . . . . . 8
Ɣ Contribution to local communities . . . . . . . . . . . . . . . . . . . 12
Environmental reportƔ Eco vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Ɣ Outline of management . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Ɣ Second mid-term and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
long-term environmental targets and results of FY2012

Ɣ Environmental accounting . . . . . . . . . . . . . . . . . . . . . . . . . 18
Ɣ Business activities and environmental stresses . . . . . . . . 19
Ɣ Control to inhibit emission of greenhouse gas . . . . . . . . . 20
Ɣ Preventing global warming . . . . . . . . . . . . . . . . . . . . . . . . . 22
Ɣ Preserving water resources . . . . . . . . . . . . . . . . . . . . . . . . 23
Ɣ 3R of production processes . . . . . . . . . . . . . . . . . . . . . . . . 24
Ɣ Approach to preserve biodiversity . . . . . . . . . . . . . . . . . . 25
Ɣ Approach to design for environment . . . . . . . . . . . . . . . . . 26
Ɣ Green purchase / Green supply . . . . . . . . . . . . . . . . . . . . . 29
Ɣ Education and training for environment / . . . . . . . . . . . . . 30
Qualified persons

Ɣ Environmental communication . . . . . . . . . . . . . . . . . . . . . . 31
Ɣ Environmental performance of four factories . . . . . . . . . . 35

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Aiming to bring about a prosperous community,
constantly growing in affluence
In June 2012, ”United Nations Conference on Sustainable Development (Rio + 20)” washeld in Rio de Janeiro in Brazil and participants from more than 100 countries arrived at acommon perception that “green economy” that realizes both environmental conservationand economic growth is important. In Japan, the Great East Japan Earthquake and thesubsequent nuclear accident have raised public interest in stable securement of clean andrisk-free energy. We consider now is the time to utilize the limited natural resources andenergy more effectively and efficiently to reduce the stresses to the environment.
Since its foundation in 1926, Iseki Group has made exertions to improve productivity
through agricultural machines that promote agricultural streamlining and reduce fatigue
farming work. Refining our skills that we have cultivated, we also develop products thatrealize further reduction of fuel and fertilizer and promote their use, while taking various
environmentally-conscious approaches in the development and manufacturing of products,
logistics, and office work. To name a few, we have been working on developing dryers withimproved fuel and time efficiencies, diffusing a sparse planting cultivation system which
realizes low-cost wet-field rice transplanting, and promoting the use of fertilizing machines
in ridges, that reduce the use of fertilizer by 30%. For agriculture in the Tohoku (northwest)
region that aims at recovery from the Great East Japan Earthquake, we set up a slogan“From recovery to a breakthrough” and work intensively on local requests while
recognizing that "Japanese agriculture cannot have a breakthrough without recovery ofagriculture in the Tohoku region". We will continue our efforts by utilizing our latest
technologies.
Our environmental preservation activities were started primarily at our manufacturing
factories and have now spread widely throughout the entire scope of our business, fromheadquarters to sales subsidiaries, through the implementation of the Environmental
Management System (EMS). From initial product development, manufacturing, productlogistics and all the way to after-sales activities, all business activities at Iseki Group arebased on a tangible target and management system so as to be an environment-conscious
company.
Iseki Group recognizes that it is our social responsibility tocontribute to the society which is in the stage to berecycle-oriented. We therefore position this as one of our mostimportant management tasks. We continue our efforts to be ofassistance in establishing a “prosperous community, constantly
growing in affluence.”
We are pleased to have an opportunity to publish this 2012
report of our approach and actions to preserve the global
environment. Iseki Group carries out now and in future years,
our social responsibilities to even greater improve theenvironmental quality through the group-wide environmental
management activities. We would like to ask for your further
support, assistance, and cooperation to make our activities President
successful.
Noriyuki Kimura

Outline of our business<Company profile>
Company name

ISEKI & CO., LTD

Headquarter

700 Umaki-cho, Matsuyama-shi, Ehime prefecture
Phone: +81-89-979-6111
Fax: +81-89-978-6440

Main office

5-3-14, Nishi-Nippori, Arakawa-ku, Tokyo
Phone: +81-3-5604-7602
Fax: +81-3-5604-7701

Foundation

August, 1926

CapitalJPY 23,344,000,000 (as of March 31, 2013)

Employees

Consolidated: 6,325 (as of March 31, 2013)
Our main business activities are manufacturing and sales of following products:

Business activities

Cultivating machiney ......... Tractors, Cultivators, High-clearance multipurpose vehicles, Lawnmowers
Planting machinery ............ Rice transplanters, Vegetable transplanters
Harvesting machinery ........ Combine harvesters, Binders, Harvesters, Vegetable harvesters
Processing machinery ....... Rice hullers, Dryers, Rice milling, Rice graders,
Vegetable processing machinery
Others ................................ Farming implements, Spare parts, Agricultural facilities< Achievement trends (consolidated)><Sales composition by product category as of March, 2013 at the end of fiscal year>
Others 0%

Net sales(billions of yen)

Ordinary income(billions of yen)

Other
agriculturalbusinesses
22%

Cultivating
and mowing
machinery
27%

Planting
machinery
11%

Serviceparts andfarming
implements
22%

March
2009

March
2010

March
2011

March
2012

Harvesting andprocessing
machinery
18%

March
2013

<Financial statements>(As of March 31, 2013)

Summary of consolidated balance sheet
Account
Cash and deposits
Notes and accounts
receivable-trade
Inventories
OthersTotal Current Assets
Property,plant and equipment
Intangible assets
Total Investments
and other assets
Total Noncurrent Assets
Total Assets

Amount (in mil. JPY)

Account
Notes and accounts payable-trade
Short-term loans payable
Long-term loans payable
Others(From April 1, 2012 to March 31, 2013)

Consolidated statement of income
Amount (in mil. JPY)

Total Current Liabilities
Capital stock
Capital surplus
Retained earnings
Treasury stock
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Minority interests
Total Net Assets
Total Liabilities and Net Assets
Note: The amount shown is the number after rounding the fractional part.

Account

Amount (in mil. JPY)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes
Income taxes
Minority interests in income (loss)
Net income
Note: The amount shown is the number after rounding the fractional part.

Major products
Tractors

Rice transplanters

Combine harvesters

Machines for exports

Line-up of other products

Cultivator/tiller

Inside ridge processor

Onion transplanter

Binder

Dryer

Rice huller

Weighing and separating machine

Coin-operated rice milling machine

Hydroponics facility

Corporate governance and compliance
Sociality report< Approach to corporate governance >Corporate governance structure and dispatch of corporate information
We operate the management system by focusing on quick and accurate response to changes of the management environment tomaintain fair management.
Iseki regards it as the most important issue for management to strive for steady improvement of the stockholder value. We try to
improve corporate governance by disclosing information proactively in regular IR explanatory meetings, etc. to maintain good
relationships with stockholders, customers, and stakeholders such as suppliers, local communities and employees.

Establishment of internal control of group
To secure appropriateness of operations, we have defined the basic policy on internal control to organize the internal control
system and review it if necessary. We disclose the basic policy on internal control on our website.
<Basic Policy on Internal Control (extracted)>(1) The system is to secure compliance of job execution by directors and employees with laws and regulations as well as the
Article of Association(2) The system concerning maintenance and control of information related to job execution by directors(3) Regulations and other systems concerning management of risk of loss
(4) The system to secure efficient job execution by directors(5) The system to secure appropriateness of operations of the company and the company group which consists of subsidiaries(6) Matters related to the independence of employees who assist in duties of corporate auditors from directors(7) A system for directors and employees to report to auditors and other system to secure effective implementation of auditing byauditors< Approach to compliance >Compliance system
Under the director in charge of compliance, a company-wide
compliance team takes initiative to provide compliance training
continuously to prevent injustice and scandals from occurring byspreading consciousness of compliance to all the executives andregular employees.
In addition, we have established the “Management Supervisory
Committee” with the president as the chairman, all the directors
as members and all the auditors as observers to check thethoroughness of compliance.
<Main actions for the compliance system>(1) Establishment of the “Iseki Group Code of EthicalBehavior” and distribution to everyone in the group, andcontinuous execution of training based on the code.
(2) Spreading consciousness of compliance by issuing andposting “Compliance News” regularly(3) Establishment and use of GroupInternal Communications System (Ethical Hotline)

Compliance training<Fundamental principles of Iseki Group Code of
Ethical Behavior>
1. To comply with laws and regulations
2. To respect basic human rights
3. To respect common sense
4. To disclose information properly to fulfill social
responsibility for explanation
5. To make efforts for environmental preservation

Status of approaches to fair trade
For fair development of the society, we promote the following approaches to fair trade with our customers, suppliers and vendors.
[Approach to compliance with Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors]• To comply with requirements stipulated in the Act against
Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors, we have entrenched check and supervision
with control by a system and monitoring in audit, etc.
• We provide continuous education by introducing recent
warning cases concerning the Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors.

[Approach to compliance with Act against Unjustifiable
Premiums and Misleading Representations]• By following the rules of fair competition code for
agricultural machines stipulated according to theregulations of the Act against Unjustifiable Premiums andMisleading Representations, we strive to create flyers
and catalogs with necessary information described andmake point-of-purchase display without giving customers
wrong ideas.

Aiming to respect human rights and for a happy workplace
Sociality report< Approach to respect human rights >In the “Iseki Group Code of Ethical Behavior” established in 2003, Iseki Group stipulates “to respect basic human rights andavoid discrimination and harassment based on nationality, race, religion, sex, disability, etc”.
According to this code of conduct, we promote actions to respect human rights.

Prohibition of discriminatory treatment

Education on respect for human rights

Iseki Group observes the labor law and works onappropriate employment management, avoiding
discriminatory treatment based on nationality, race,
religion, sex, disability, etc.

Internal communications system

We distribute the “Code of Ethical Behavior” to all theemployees of Iseki Group and educate them to behavewith respect for human rights in the society and amongpeople.
We also prohibit actions that ignore the personality ofothers such as sexual harassment and power harassment
and instruct employees to be careful about their language
and behavior on a daily bases.

Protection of personal information

As an internal communications system of Iseki Group, we
have established the “Ethical Hotline” in order to detect
potential problems in companies of Iseki Group andprevent them from occurring.
• The communication routes are (1) office organizationroute, (2) personnel division route and (3) external routeto the lawyer.
• Items to be communicated are (1) violation of law, (2)violation of Code of Ethical Behavior such as respect forhuman rights and (3) violation of company rules such as
work regulations. We try to create an environment where
people can consult about problems easily.

Recognizing importance of protection of personal
information in an advanced information communicationsociety, we set a philosophy to respect human rights andmanage and use personal information legally and fairly as
per respect of privacy and privacy policy.

< Approach to a happy workplace>Occupational safety and health
We set “a healthy and safe workplace” as a code and try tothorough management of safety and health across Iseki
Group. Since the working environment differs from office tooffice, we work on activities for safety and health according
to the actual state of each base of each company.
Especially, in manufacturing companies, we promote
improvement of awareness by conducting safety andhealth patrol, striving not only for continuous “zeroindustrial accident” but also thorough reduction of accident
risks.
<Statistics of industrial accidents>
Transition of frequency rate (FY2008 to FY2012)<Statistics of industrial accidents>
Transition of severity rate (FY2008 to FY2012)* Severity rate: Workdays lost per 1,000 working hours* Target: Iseki and four factories

Health management
Recognizing the great impact of the working environmenton the health of employees, we strive to create acomfortable working environment.
Especially, as for mental health, we try to prevent illness byconducting stress checks in periodical health examinations
and educational activities for the management.
In addition, we promote “walking” for health enhancement,
in which many employees participate.

* Frequency rate: Casualty toll per 1 million working hours* Target: Iseki and four factories

Employment and human resource development
Sociality report< Approach to employment and human resource development >Iseki Group regards “human resources” as an important point to survive in a fast-changing business environment, in addition
to the development of competitive products. Therefore, we try to create a rewarding workplace to bring out motivation andabilities of employees to a maximum extent, which will lead to the development of our business.

Recruitment
Iseki Group strives to secure necessary human resources
to carry out its social mission and recruits people based on
their personalities and abilities.
Above all, we focus on recruiting those who can respond to
global management in order to promote the increase ofoverseas sales which is one of our most important issues.
We also positively work on mid-career recruitment ofpeople with high abilities and precious experiences.

Human resource development
For sustainable growth of Iseki Group, human resource
development is essential. We work on a variety of ability
development to effectively utilize the human resources of
the group and draw out maximum performance.
After education of new employees, we provide detailed
education, including training divided by job in each divisionand each company, foreign language training, successionof skills and techniques with the introduction of the meistersystem, and a corresponding education system to promote
self-development as well as training divided by level to theentire group according to skills of employees.
In addition to the Training Center (Tsukubamirai-shi,
Ibaraki prefecture) that has developed human resources
with training aiming at enhancement of sales and service
capabilities, we will establish Iseki Technical Training
Center (ITTC, Matsuyama-shi, Ehime prefecture) as a
training base for human resource development for
manufacturing sites in autumn 2013 to improve capabilities
on sites.

Diversity
As globalization of business deployment progresses andthe securement of capable human resources is required,
we promote recruitment of foreigners and appointment of
women in management.
We will continuously take such actions and support careerformation of employees so that diverse people can utilize
their abilities to achieve the best performance.
We also promote recruitment of physically-challenged
people and work on creation of a working environment thatis friendly to everyone.

Work-life balance
We have introduced the following measures to ensure thateach employee leads a more fulfilling life by balancing the
career and private life while fully displaying his/her ability tofulfill his/her duties at work (including those applied only tosome departments).
(1) Recruitment for jobs in limited work locations(2) Flexible working hour setting by flextime system(3) Reduction of extra work with implementation such as“no overtime” day.
(4) Implementation of child care supporting measuresthrough General Business Owner Action Plans basedon Act on Advancement of Measures to Support
Raising Next-Generation Children

Meister system
The meister system is a system that allows skills to bepassed on smoothly from skilled workers on site to young
mid-level employees.
For each important job type, we certify a person as ameister (excellently skilled worker) who will be engaged inskill upgrading, instruction and cultivation of young
employees.

<<Introduction of meister>>
Iseki-Kumamoto
MFG. Co., Ltd.
Press Machine Department

Yosuke Ueda

Meister job type: Press work
I belong to Press Group in Iseki-Kumamoto MFG. Co.,
Ltd. and have spent my whole career in press work since
I joined the company. Every day, I work on equipment
maintenance by making full use of five senses such as
eyesight and hearing to give the highest priority to safety
and secure the quality.
As a meister, I coach young employees with little
experience to improve individual abilities so that they will
have professional awareness and skills to deal withchallenges with immediate judgment, etc.

To achieve customer satisfaction
Sociality report< Approach to utilize website "i-NEXT" >Iseki distributes a promotion site (i-NEXT) in which information on products, implements and cultivation systems is digitized
and webified to each company of Iseki Group and provides customers with the following latest information via sales personsof the sales subsidiaries.
(1) The cultivation system of each prefecture concerning sparse cultivation of wet-field rice and related machine information(2) Product/implement information (catalogs, operation manuals, technical manuals, videos, price lists, etc.)(3) Back issues of agricultural information magazines issued by our company, data such as images necessary for creating
flyers(4) Information on cultivation systems, products, and implements is also available in farm fields and exhibition sites without
Internet environment

Entire view of system

Iseki
Parts listPC
Web server

Network

Operation
manualTabletSmartphone

Provide the latest
information

Price list/catalog

Cultivation
systeminformation

Sales subsidiary

Service improved byinformation sharing
Product/implement
information

Login screen

Selection of cultivation system

Customer<Cultivation system proposal tool>
In the website “i-NEXT”, we have created “cultivation system
proposal tool”. The main characteristic of this tool is that you canknow a set of cultivation systems, operation systems, and machine
systems immediately wherever you are by entering the informationsuch as region you live, cultivated crop, breed, desired horse powerof tractor, with use of a tablet terminal, etc.
Our sales persons propose cultivation methods, machines, andmaterials that are most suitable to you by presenting images andvideos with this tool.

Cultivation system information

To achieve customer satisfaction
Sociality report
The business activities of Iseki Group consist of selling products and providing services to customers and the company mottosays “our management philosophy is ‘to provide consumers with products that please them’, thereby we fulfill our social
mission.”To satisfy customers, we make it a rule to recognize the values of products and services we provide from the view point ofcustomers, and speedily provide what is required by customers and what satisfies them.
Aiming at the above, everyone in Iseki Group strives to provide safe and high-quality products and services after sales tocustomers.
<How to improve customer satisfaction>
We try to improve customer satisfaction with the following concepts.
(1) The next process is the customer: To carry out our work with a concept of “The next process is the customer”
in workplaces in all the departments.
(2) Improvement of product satisfaction level : To develop products convenient for customers based on the results ofmarket research.
(3) Improvement of service satisfaction: To provide optimal products and information to customers.
(4) Satisfaction of each customer: Every employee responds to customers,
always considering their convenience.

< Services after sales of products >CS promotion activity
Iseki Group holds a CS Enhancement Committee every
month to follow and check the results of instructions of
product delivery to customers and results of condition
inquiries in sales subsidiaries across Japan for CS
promotion of Iseki Group.
• Service before the sales : Implementation of delivery
instructions based on delivery
check sheet• Service after the sales : Implementation of inquiry
about new vehicles andmaintained vehicles

Consumer consulting service

In-house education, external courses
In the training facility (Training Center) in the TechnicalSupport & Solution Center in Ibaraki prefecture, we provide
a wide range of courses such as training for maintenanceof agricultural machines with sales persons and service
persons of sales subsidiaries and successors ofdealerships as trainees. This time, we have entirely
renewed our sales training.
<Aim of renewal>(1) Sales persons should always place themselves in thecustomer’s position to think and take actions(customer-oriented).
(2) Training should be provided based on voluntary
participation so that trainees can experience“awareness” and “discovery” by themselves.
(3) The idea that achievement of plan is “the motivation ofa sales person” should be instilled.

<Contact Us page of consulting service>
The “Contact Us” page is on our website. Please visit the following address.
http://www.iseki.co.jp/inquiry.html<Inquiries to website by e-mail>In the “Contact Us” page of the website of ISEKI CO. LTD., we welcome a variety ofinquiries from customers concerning (1) products and (2) the entire company, etc.
In “Technical inquiries to manufacturer” of “Inquiries as to product,” our Technical Support& Solution Department serves as a window of technical inquiries as to products andresponds to inquiries from customers with responsible technology departments of therelevant products.
There were about 1,000 inquiries by e-mail in FY2012 and we have replied and responded
to all of them.
<Telephone consulting for technical inquiries as to products>
For the above “Inquiries as to products”, we directly respond to phone calls from
customers in addition to “inquiries by e-mail”. There were about 600 inquiries by phone in
FY2012.
We receive various inquiries and consultations not only from customers but also fromvarious organizations such as administrative institutions, electric power companies,
insurance companies, food companies, and TV stations. The person in charge responds
to them with respect.

<Number of inquiries by e-mail in
FY2012: Approx. 1,000>
Product

Inquiry rate

Tractors
Cultivators/tilllers
Rice transplanters
Combine harvesters
Others<Number of inquiries by phone in
FY2012: Approx. 600>
Product

Tractors
Cultivators/tillers
Rice transplanters
Combine harvesters
OthersInquiry rate

To achieve customer satisfaction
Sociality report< Approach to quality improvement >Iseki Group puts the provision of products that please customers andthe safety of customers as first priority, and promotes efforts for
quality improvement to pursue the safety of products.
We carry out quality assurance activities by utilizing the system of“ISO9001,” an international standard for quality assurance, andconduct thorough design review (DR*1) from the upstream of productplanning of the production process.
Also in the production process, we try to eliminate defective quality
by utilizing “ISO9001” system.
To realize user-friendly products, we employ universal design (UD*2)
to secure the safety of products.

After Iseki-Matsuyama MFG. Co. Ltd. (mainly producing
tractors) acquired ISO9001 in November, 1995, all four
factories acquired the certification and carry out quality
assurance activities.

Development
process audit

Production
process audit

Maintenance and improvement of quality system*1 DR: Design review to check whether the design allows realization ofa product required by customer.
*2 UD: Design that is suitable for everyone.

[Technology department][Factory]

ISO9001 (quality management system)< Approach to quality assurance activities >To make products that secure safety of customers and fulfill their expectations, we effectively organize consistent quality assurance
activities from product planning to production and service, and make evaluation in DR for quality assurance for each step.
We elaborate product planning in the Product Planning Committee (body to decide commercialization of products) and the quality ofdesign and production in the quality improvement deliberation council (a body to validate the qualities of products).

Product evaluation meeting

Service

Promotion of consistent quality assurance activities DR (design review)

Production

Securementof service
quality

Design quality control system

Preparation for production

Produce optimal
design quality

Quality improvement deliberation council/quality improvement meeting

Securement of
manufacturing
quality

Development/design

Realization of product quality to fulfill expectations of customers

Elaborate optimal
design quality of
product that meets
customer needs

Product planning Product Planning Meeting

Securementof designquality• Quality function development• Design review• FMEA, FTA, CAE• Reliability test
• Selective control

Manufacturing quality control system• Statistical quality control• Process capability investigation (CP value)• Process FMEA
• Own-process assurance system(self-contained assurance)• Selective control• QC group activities• QC team activities• Skill test system• Visual quality

Quality control evaluation system• CS (customer satisfaction)• Quality information system• Spring and autumn productimprovement meetingTo achieve customer satisfaction
Sociality report< Approach to establishment of product quality information system >To speed up response to product quality information inquiries from customers in Japan and abroad, we have built and run a
new system to share information search and analysis functions among relevant departments.
This new information system links relevant divisions from sales subsidiaries to development and manufacturing departments
to speed up the course of problem detection, treatment, and response concerning the quality after shipping of product throughthe following.
(1) Expansion of the information range and improvement of accuracy to respond to market problems promptly and properly(2) Globalization of the system to enhance approaches to overseas market problems to the same degree as those of domestic
market problems(3) Uniform management of product quality/quality compensation information to improve efficiency of obtention andmanagement of information(4) Enhancement of functions to search and analyze accumulated information to speed up improvement of product quality
and increase accuracy
Overseas base, agent• Product quality
information• Hotline

Sales company inJapan

Information check
Additional description
Response contents check
Data aggregation
Analysis, graph
Information contents
check

Agri-Implements Dept.
Parts Service Dept.
Sales Promotion &Marketing Dept.
Agri-Plant Dept.

Internet

Information analysis
Word searchPrevious information searchInformation data Response data
Document data

Product Support
Dept.
Information data

Technical Support& Solution
CenterAffiliate• Product quality
information• Hotline

Image data

24-hour operation service
Automatic graphing
Image data
Search function

Response• Defect factor• Recurrence prevention measureetc.
Receipt• Defect block• Distributor/part name
• Machine type/requirements• ModelInformation data

Response data

Quality
ControlDept.
Eachfactory

Response data

Information central
controlEachtechnology
department< Handling of recall >If any problem occurred to products used by customers andwe find it necessary to take improvement measures, wecheck and repair the products immediately, giving firstpriority to the safety of the customer.
When we implement a recall, we give notice and report to therelevant organizations (*1) and disclose the information on
the website of ISEKI CO., LTD. to draw attention ofcustomers and provide them with information.

Note

Notices on reporting of recall are posted on our
website.
Please visit the following address.

http://www.iseki.co.jp/english/newsrelease.html<Transition of number of recalls over years (*2)>
FY
Number of recalls*1 Ministry of Land, Infrastructure and Transport, Ministry of Agriculture,
Forestry and Fisheries, Ministry of Economy, Trade and Industry, etc.
*2 Number of recalls reported to the Ministry of Land, Infrastructure and Transport

Contribution to local communities
Sociality report< Support for recovery from the Great East Japan Earthquake >Due to the “Great East Japan Earthquake” that occurred in March 11, 2011 and the subsequent “nuclear accident”, many
farming households in the Tohoku (northeast) and Kanto regions have suffered and their farm fields have been polluted byradioactive materials. To recover the polluted fields, the “farmland decontamination measures demonstration project” hasbeen implemented in Fukushima prefecture, in which the Bio-oriented Technology Research Advanced Institution, JapaneseSociety of Agricultural Machinery and Food Engineers, and agricultural machine manufacturers established anindustry-government-academia cooperation to develop decontamination technologies for farmland and establish measuresapplicable on site.
Iseki Group has participated in such a project and work on support activities proactively for recovery of the devastated areas
by experimentally producing a machine that can be operated in contaminated fields based on the TJV85 semi-crawler typetractor and demonstrating it, etc.

Participation in farmland decontamination seminar in Iidate Village, Fukushima Prefecture
On July 19, 2012, a farmland decontamination seminar was held in Iidate
Village in Fukushima prefecture, and a demonstration of farmland
decontamination was made with machines of agricultural machine
manufacturers.
Our tractor can reduce the exposure dose of radiation to 50% with thewindow glass, floor, and ceiling covered with lead plates and can protect
the operator from dust of radioactive materials with activated charcoal andhepafilters set on the ceiling.

Decontamination work with TJV85 tractor< Cultivation support to company that has newly entered agriculture >NANKAIKOGYO, Inc. that runs a recycling business of consumables for copying machines, etc. at the foot of Ashigara
Mountain in Kanagawa prefecture established ”NANKAI Farm” in 2009 as a new business, entering agriculture from a totallydifferent business.
From the establishment of NANKAI Farm, Yanagita Iseki Co., Ltd., a member of Iseki Group, has supported them proactively
with farming in addition to agricultural machines. Based on such a background, NANKAI Farm requested us to give guidance
about “onion growing” and our “Agri-Business Support Department” supported the entire process of onion growing from deep
plowing of the onion field, preparation of open ditches and culverts, preparation of soil with soil amendment materials toharvest, resulting in securement of a sufficient yield amount.
With a motto of “contribution to community”, NANKAI Farm intends to expand their business, considering that success inagriculture leads to regional vitalization. We promote and support low-cost agriculture that aims at further improvement ofefficiency in agriculture, continuously supporting “agriculture with dreams”.

Herbicide application and ridge making at the same time

Transplantation of onions by Nauerunana

Contribution to local communities
Sociality report< Approach to revitalization of deserted farmland >The area of deserted farmland has been increasing in these 20 years. It is reported to be approx. 400,000 ha all over thecountry. Deserted farmland is especially found in mesomountainous regions mainly because of decrease of successors ofagriculture in the regions. It has also caused depopulation and exhaustion there, which is one of the important problems ofJapanese agriculture to be solved.
In such circumstances, approaches that aim at revitalization of deserted farmland and regional activation are promoted
nationwide as one of the plans promoted by the government to increase the food self-sufficiency ratio. Iseki Group also
supports local activities and proactively works on them.

Support for revitalization of deserted farmland in Wakayama prefecture
Iseki Group has joined in the “Home of companies” system in Wakayama
prefecture and conducted supporting activities for resurgence of“hatake-gonbo” in the Nishibata area in a mesomountainous region ofHashimoto-shi, Wakayama prefecture.
The “Home of companies” system is a project of Wakayama prefecturethat aims at promotion of local production for local consumption in rural
regions and local landscape preservation, etc.
In this Nishibata area, they cultivated thick fragrant burdock roots“hatake-gonbo” as their specialty products during the Edo period(1603-1868), however, cultivation died out at the beginning of the Showa
period (1926-1989), because it was done in steep-sided fields of reddish
soil and digging work at the time of harvest was very heavy.
In the Nishibata area whose population has been shrinking and deserted
farmland has been increasing in recent years, they decided to revive
hatake-gonbo after 80 years for regional activation.
Though the revived hahake-bonbo enjoyed a good reputation, harvesting
operation was a big challenge for expansion for production. Therefore, we
propose revitalization of deserted farmland and power-saving cultivation
with a machinery system for solution of challenges of harvesting
operation, make a demonstration of cultivation of hatake-gonbo, andestablish technologies based on this demonstration, providing support tolead to expansion of production and regional activation.

BEFORE

AFTER

Change of deserted farmland

Support for revitalization of deserted farmland in Yamaguchi prefecture

Restoration of rice fields from deserted farmland

As one of local regeneration activities, “Green Co-op Yamaguchi” inYamaguchi prefecture started a business to produce agricultural productsby themselves to provide their union members with safe and secure
agricultural products.
For this purpose, they use deserted farmland in the prefecture effectively
to restore paddies and challenge cultivation of sticky rice and soybeans.
Iseki Group supports them with this restoration of paddies from deserted
farmland and provides cultivation techniques.
“Green Co-op Yamaguchi” also has implemented trial cultivation ofagricultural products by utilizing deserted farmland so that their profit will
be reaped mainly through the new business. The purposes of the trial
cultivation are learning of how to prepare soil from deserted farmland,
improvement of cultivation techniques of farm producers, and provision ofsafe and secure agricultural products produced by themselves to union
members. Iseki Group gives guidance about revitalization of deserted
farmland, sparse rice cultivation, and Note ) Soybean 300A techniques byutilizing agricultural machines.
Note) “Soybean 300A techniques” are plowing/sowing techniques to avoid moisture damage
that is a factor of unstable yield amount (unit crop) per unit area.
“300” of “300A” means that the yield amount per 10 are is 300kg. “A” means quality Aclass (1 and 2 classes), aiming at high quality and much yield amount.

Contribution to local communities
Sociality report< Support for Aso Kumamoto Airport community development >In FY2012, the Aso Kumomato Airport Community Development Project was set up and an approach for regional activation
was started. Iseki Kyushu Co., Ltd., a member of Iseki Group, supports this approach and has made fields of “sunflowers” and“cosmos” on the east of the airport in cooperation with Aso Kumamoto Airport Community Development Council as the first
shot of the project. The company was in charge of tasks such as mowing, tilling, and sowing.
In late August, sunflowers were in full bloom and cosmos flowers were at their peak in early October. Many visitors enjoyedthe view. As a company rooted in the community, we support activities of the project.

<What is Aso Kumamoto Airport Community Development Council>
They intended to fill farmland near the Aso Kumamoto Airport withlandscape plants such as “sunflowers” to create a tourism resource
in Kumamoto and promote regional activation by encouraging
communication within the community and with outside of thecommunity. The council has been established by farmers, andindividuals and corporate bodies who agreed this purpose.

Sunflower field< Support for “Rapport Festival” in Niigata >Every year, Iseki-Niigata MFG. Co., Ltd. participates in a local
cleaning activity led by the community association of 3-chome
Nishiohsaki, Sanjo-shi, Niigata prefecture in which thecompany is located.
After the cleaning work, we have “Rapport Festival” for the
residents in the district in our parking space to interact with
community people.
Ɣ Date: August 25, 2012
Ɣ Number of participants: Approx. 250 people“Rapport Festival” with community people< Support for Ehime Prefecture Children’s Exhibit of Invention and Devices >The awards ceremony of the 71st Ehime Prefecture Children’s
Exhibit of Invention and Devices was held in the first annex to Ehime
prefectural government building on October 26, 2012. Also this year,
many children in elementary and junior high schools entered thisexhibit and 5 special prizes, including Iseki Prize, 10 awards forexcellence and 20 awards for effort were given to 35 works in total.
We participate in the review of this exhibit and give Iseki Prize every
year to help children to improve their motivation for invention. This
year, “Rice Washing Water Pot” invented by a fifth grader was
selected for Iseki Prize and an award certificate and trophy were
given to the inventor.
With this work, you can wash rice in a sieve set in a water pot. Afterthat you can remove the sieve, set a lid, and give the used water toflowers. This is an environmentally-friendly work, allowing you to use
water effectively.

Iseki Prize winner “Rice Washing Water Pot”

Eco vision
Environmental report

Iseki Group has determined the direction that can be the base of our “Eco vision: Green Circle”,
and the words, “Environmental concept”, ”Basic environmental policy”, and “Environmental
conduct guidelines”, best explain our principles. We promote these concepts across the group.

*1:3A is[Green Circle]

The management on the Axis of Agriculture and Agricultural machine (3A)
“Business Management with Agriculture and Agricultural Machinery as its key”

nature3A(*1)

society

corporate

Iseki Group has walked together with Agriculture since its establishment. Based on ourmanagerial creed, “Management on the Axis (3A) of Agriculture and Agricultural machines”,
we promote environmental preservation activities with harmony between nature and society.
[ Environmental concept ]“Agriculture and Agricultural machines” are the axes ofour management and we contribute to the formation of acontinuously growing society through activities forharmonizing nature, society, and business entities.
[ Basic environmental policy ]1. Maintain environmental management system and its
functional applications
2. Reducing elements of our business activities andproducts which may be causing stress on theenvironment
3. Compliance with environmental laws, regulations,and standards
4. Environmental education and information disclosure[ Environmental conduct guidelines ]1. Development activities considering environment
Recycling and reduction of noise, vibration, fuel consumption,
emission gas, and environmental stress substances
2. Environment-friendly manufacturing activities
Prevention of (air, water, noise, and vibration) pollution, energysaving, resource-saving, and purchasing green
3. Office activities considering environment
Energy-saving and resource-saving
4. Distribution and logistics considering environment
Improvement of transportation (packing material, more efficienttransportation), disposal
5. Development of biodiversity
Promotion of tree-planting activities of Iseki Group
6. Environmental education and information disclosure
Environmental education to be offered to employees, participation insocial activities and information disclosureOutline of management
Environmental management

We deploy our approaches to develop the recycling-oriented and Low-Carbon society
and biodiversity within all of our group companies.

<Promotional scheme><Environmental planning group meeting>According to the environment management system, Iseki
Group promotes environmental preservation activities throughthe entire cycle of product development, manufacturing,logistics and disposal, aiming to develop a recycling-orientedand Low-Carbon society and to preserve biodiversity.

The Environmental Planning Group Meeting deploys
environmental targets and action plans decided in the
Directors’ Operation Committee to each district and manages
the progress of such plans.

<Environment committee><Environment management system employed in each district>

With the CEO as Chairman, the Directors’ Operation
Committee deliberates and determines Iseki Group’s basic
policies regarding the environment, as well as theaccommodation of management targets, action plans, andcorrective actions for critical environment issues submitted by
the Environmental Planning Group Meeting.

An Executive Officer responsible to promote the environmental
management activities and an Environmental Manager are
assigned to Tokyo, Matsuyama (Tobe), Matsuyama (Wake),
Kumamoto, Niigata and sales subsidiaries. They are
responsible for the determination of policies, deployment ofaction plans and management of progress in each district
according to the environment management system.

[ Environmental Management Organization ]CEO

Directors’ Operation Committee

Environment Management OfficeEnvironmental Planning Group Meeting

Product Assessment Committee

Tokyo district

Matsuyama (Tobe) district

Matsuyama (Wake) district

Kumamoto district

CEO ofeach company

Director assigned
to General Affairs

Environment
Manager

Environment
Manager

Chief Operation
OfficerDevelopment &Production
Division

CEO ofIseki-Matsuyama
MFG.

CEO ofIseki-Kumamoto
MFG.

CEO ofIseki-Niigata
MFG.

CEO of Iseki-Houei
MFG. Co., Ltd.

Environment
Manager

Environment
Manager

Environmental
Management
Committee

Environmental
Management
Committee

Sales Subsidiaries

Environment
Manager

Environment
PromotionCouncilEnvironment
PromotionCouncilEnvironmental
Management
Committee

Niigata district

Environment
Manager

Environmental
Management
Committee

Second mid-term and long-term environmental targets and results of FY2012
Environmental management

Iseki Group has defined the second mid-term and long-term environmental targets from FY2011
to 2015 and work on them. Hereby, we report on the results of our major activities of FY2012.
1. Second mid-term and long-term environmental targets and accomplishments in FY2012
Item

Second mid-term and long-term environmental targets

Accomplishments in FY2011

Evaluation

To reduce the volume of energygenerated CO2 emissions per
production volume by 4% or morecompared to the average result of
three years from FY2008 to FY2010

The achievement rates of the total volume of CO2 emissions and the volumeof CO2 per production volume were 100% and 96% respectively against thesecond mid-term and long-term environmental target, falling short of thegoal. We will continuously strive to reduce the volume of CO2 emissions byreplacing facilities with energy-saving ones.

△

Reduction oflogistics CO2
emissions

To reduce the volume of energygenerated CO2 emissions pertransportation volume (10,000ton-km)
by 2% or more compared to theaverage result of three years from
FY2008 to FY2010

The achievement rate of the volume of CO2 emissions per transportation
volume was 102% against the second mid-term and long-term
environmental target. We will continuously strive to reduce the volume of
CO2 emissions by promoting modal shift.

○

Formation of a recyclingoriented society

Reduction of
volume offinal wastes

To reduce the volume of final
wastes per production volume
by 10% or more compared tothe average result of three years
from FY2008 to FY2010

The achievement rates of the total volume of final wastes and the volume per
production volume were 52% and 49% respectively, significantly falling short of thegoal. This is because we conducted landfill operation due to closure of the recycling
company of molding sand and delay of selection of a new recycling company.
We will continuously strive for reduction.

×

Reduction of
volume ofwater used

To reduce the volume of waterused per production volume by
28% or more compared to theaverage result of three years
from FY2008 to FY2010

The achievement rates of the total volume of water used and the volume
of water used per production volume were 91% and 86% respectively
against the second mid-term and long-term environment target, fallingshort of the goal. We will continuously strive for reduction by repairing
water piping etc.

△

Reduction of usedvolume of chemical
substances subject
to PRTR law

To reduce the used volume ofchemical substances subject to the
PRTR law per production volume
by 8% or more compared to theaverage result of three years from
FY2008 to FY2010

The achievement rates of the total volume of use of chemical substances
subject to the PRTR law and the used volume per production volume were89% and 85% respectively against the second mid-term and long-term
environmental target, falling short of the goal. We will continuously strive
for reduction by promoting change to paint and thinner with less chemical
substances subject to the PRTR law and regeneration of thinner, etc.

△

Reduction of
total material
input

To reduce the total volume ofmaterials input per production
volume by 2% or more comparedto the average result of three
years from FY2008 to FY2010

The achievement rates of the total volume of materials used for production
and the volume of materials used for production per production volume
were 118% and 112% respectively against the second mid-term andlong-term environmental target, achieving the goal. We will continuously
strive for reduction.

○

Restraint of toxic
Restraint ofchemical substances manufacturing resource

Realization of a low-carbon
emission society

Reduction of CO2
emissions

Relevantpages

2. Mid-term and long-term targets of business activities and results of FY2012
Classification

Item to be implemented

Environmental
management
Product development
and service

Accomplishments in FY2011

Evaluation(1) Quality improvement of environmental
management system

According to the environment management systems of ISO14001 and EA-21, we prepared actionplans by making use of the characteristics of each department to improve the quality of activities.

○(2) Implementation of environmental
education

We specified and promoted environmental education of the year basedon the policy of each general manager.

○(3) Environmental communication andcontribution to society

We promoted cleaning activities of roads around offices in cooperation of local communities.
We also participated in tree-planting activities as one of our actions for prevention of global
warming and preservation of biodiversity.

○(1) Development of products
in consideration of biodiversity

We promoted development of products in consideration of biodiversity andformation of a recycling-oriented society.

○(2) Development of products to reduce
environmental stresses

We promoted development of products to reduce environmental stresses by improving the
durability, fuel and working efficiencies, etc. with use of the product assessment system.

○(3) Prohibition, reduction and restraint of use of
toxic substances included in procured parts

We promoted grasp, reduction and abolition of toxic substances according
to our green purchase standard in cooperation with our suppliers.

○(4) Establishment and expansion of productassessments and execution of LCA evaluation

We promoted environment-conscious designing that allows grasp of thevolume of CO2 emissions in the entire cycle from parts manufacturing todisposal, etc. by executing product assessments and LCA evaluation.

○(5) Provision of information contributing toenvironmentalpreservation

On product manuals, we properly described cautions for using the
products and failure diagnosis, as well as cautions for disposing the
product from the view points of environment, safety and health.

○Evaluation criteria: Achieved: Nearly achieved

Relevant
pages: Not achieved

Environmental accounting
Environmental report
The FY2012 is the eighth year since Iseki Group employed the environmental accounting system. We deal with the use of aggregated costs ofinvestment and expenses used for the environmental preservation activities for our management decisions relevant to environmental preservation, as well as for a guideline of evaluation of business concerning contribution to society. The amount invested for environmental preservation
costs (pollution prevention, environmental preservation, and resource recycling costs) in FY2012 was 107 million JPY. The total amount ofexpenses was 437.7 million JPY that we made through some investments into diesel engine emission gas and improvement of fuel efficiency,
mainly for prevention of air pollution to comply with the laws and regulations of Europe, U.S, and Japan.
Economic effects resulted from the environment preservation measures

Environment preservation cost
Category

Major programs

Amount ofinvestment(in mil. JPY)

(1) Cost spent in the business area
Breakdown(1) Pollution prevention cost

Sewage treatment(1)

Reduction of volume of various resources to be consumed(2)

Reduction of environmental stress substances(3)

Reduction of energy consumption(2) Environment preservation cost Inverter installation(3) Resource recycling cost

Total

The economic effect resulting from the environment
preservation measures, such as recycling of wastes,
streamlining of painting methods, use of energy-saving
machines, use of processing machines equipped withinverters and appropriate control and operation ofboilers, was 34,800,000 JPY. The physical effect was
the reduction of CO2 emission by 2,442 tons, reductionof water consumption by 32,789 tons, and recycling ofwastes by 3,278 tons.

Waste treatment(2) Cost required at previous and later stages Green purchasing
Maintenance of environment
management system(3) Control activity cost(4) Research and development cost Corresponding to emission gas regulation(5) Community activity cost

Amount (in mil. JPY)

Details of effectExpenses(in mil. JPY)

Cleaning activity in the district(6) Environment recovery cost
Total
Scope of aggregation : (Iseki-Matsuyama, Iseki-Kumamoto, Iseki-Niigata, and Iseki-Houei MFG.
Co., Ltd. and tobe office)
Period of data : April, 2012 to March, 2013

Environmental risk management
Environmental report[ Actions to comply with Antipollution Laws ]<Establishment of self-directed standards and management in the company>
4 local factories of Iseki Group set up and applied more stringent self-directed control standards than those described in the environment-related
laws and regulations. As shown in the table below, we have cleared all the self-directed control standards in FY2012, making progress toward
reduction of environmental pollution.

Measured item

Units

Volume of suspended substances (SS)

Water
qualityAir

mg/L

Volume of biochemical oxygen demand (BOD)

Iseki-Matsuyama & Iseki-Houei MFG. Co., Ltd.

Iseki-Kumamoto MFG. Co., Ltd.

Regulatory Self-directed
control
standards standards

Regulatory Self-directed
control
standards standards

Resultin 2012Resultin 2012Iseki-Niigata MFG. Co., Ltd.
Regulatory Self-directed
control
standards standards

Resultin 2012(Note 1)Less than 1(Note 2)n-hexane (Mineral oil)ppm

Less than 1Less than 0.5

Particulate

g/m3N

Less than 0.01

Less than 0.01

Nitrogen oxide (NOx)ppm

Particulate (electric casting melt furnace)g/m3N

Less than 0.01-: shows standard N/A or not applicable machines(Note 1)(Note 2): With the expanded sewerage works implemented by Matsuyama city in FY2008 and afterward, the regulated value of water discharge to the synthetic effluent treatment
outfall has been raised from 160mg/L to 600mg/L, however, the self-directed control standard of Iseki-Matsuyama MFG. Co., Ltd. and Iseki-Houei MFG. Co., Ltd is 500mg/L ,because industrial effluent is mixed. The measured values are as shown above.

<Frequency of environment data measurement>
Machine, equipment, and place
Industrial effluent
Casting melt furnace
Boiler
Lot boarder line

Measured item

Measuring frequency

Iseki-Matsuyama & Iseki-Houei MFG. Co., Ltd. Iseki-Kumamoto MFG. Co., Ltd.

Iseki-Niigata MFG. Co., Ltd.

Once a year

Once a year

Twice a year--

Twice a year

Twice a year

Twice a year

Noise

Twice a year

Once a year

Once a year

Vibration

Twice a year--

Water quality
Air-: shows standard N/A or not applicable machines

Once a monthBusiness activities and environmental stresses
Environmental report[ Eco balance ]Iseki Group uses materials such as fuel, electricity, water and other raw materials in the process of production, and discharges chemical
substances and industrial wastes subject to laws related to carbon dioxide (CO2) and PRTR law.
We always check the volume of materials used for production (INPUT) and discharged volume of chemical substances and industrial wastes(OUTPUT) as an index in reducing discharge of such chemical substances and industrial wastes for realizing business activities with lessenvironmental stresses. The following shows figures of undertakings for 2012.

Energy630,000GJ
Electricity 49.8milliion kWh
Kerosene
965kL
Heavy oil
706kL
Butane gas
510,000m3
City gas
178,000m3
Gasoline
64kL
Light oil
26kL

Water

Business activities
Development- Promotion of environment-conscious
designing
Procurement

297,000m
Tap water
80,000m3
Under ground water 217,000m3
3- Green purchasing

Discharge water

Production

Discharge volume 132,000m3
BOD
666kg

- Promotion of energy saving- Promotion of effective
utilization of resources- Reduction of final
volume of wastes- Reduction of toxic
chemical substances- Reduction of water used volume

Chemical substances
Subject to PRTR law

Atmosphere
Discharge volume of CO2 28,000t
Discharge volume of soot and dust 959kg
Discharge volume of Nox 1,490kL
Discharge volume of Sox 874kL

157t

Major products:
Tractors, Cultivators,
Combine harvesters, Rice transplanters,
Engines, Dryers, Rice hullers,
Vegetable harvesting machines, etc.

Total substances
Main raw materials 50,000t

Chemical substances
Substances subject to PRTR
145t
law Discharge/Transfer volume

Industrial wastes
Industrial wastes Total volume 9,670t
Recycled volume7,240tReduction volume1,040tFinal volume
1,380tProducts distribution to distributors
Transported volume 28.0million ton-km
Discharge volume of CO2 3,870t

To be used by customers[ ECO-efficiency ]It is important to improve eco-efficiency to realize a sustainable society. Eco-efficiency is presented as a value calculated by subtracting
environmental stresses from the value of a product or service. On the other hand, we defined “eco-efficiency = production volume ÷environmental stresses” and evaluated eco-efficiency with the eco-efficiency index and environmental stress integrated index. This means
eco-efficiency increases as the production volume increases or environmental stresses decrease.
In FY2009 and 2012, the production volume of four factories has significantly decreased compared to the reference year FY2005. We havebeen continuously taking actions to reduce environmental stresses and achieved improved eco-efficiency of 109 and environmental stressintegrated index of 79 in FY2012 compared to the index of 109 in the reference year FY2005.

[ Eco-efficiency index: the higher the more efficient ]Our eco-efficiency is presented as a value calculated bysubtracting the environmental stress integrated index of ourfour factories from the production volume of the four
factories. The environmental stresses have three items
integrated; volume of CO2 emissions, volumes of non-methane
VOC emissions and displacement and volume of landfilledwastes.

[ Environmental stress integrated index:
the lower the index is, the smaller environmental stresses are ]Based on the Panel Method of Professor Nagata at Waseda
University, we adopted the average value of the integration
coefficients for Japan presented by LCA experts,
environmental experts and enterprise experts for integrationof environmental stresses, with the value of CO2 defined as 1.

Item

2005
2012
Integration
coefficient Actual value (t) Integrated value Actual value (t) Integrated value

Volume ofCO2 emissions(Index)Eco-efficiency index
Environmental stress integrated index

Volume of non-methane
VOC emissions and displacement
Volume oflandfilled wastes
Total of environmental
stress integrated values
Eco-efficiency
Environmental stress integrated
index (2005 as reference year）
Eco-efficiency index(2005 as reference year)
Environmental stress integration and eco-efficiency(FY)
Trend of eco-efficient index and environmental stress integrated index(100 in FY2005)

Control to inhibit emission of greenhouse gas
Environmental report<Approach to reduction of electrical usage by using highly-efficient lighting>
Iseki-Matsuyama MFG. Co., Ltd. replaced theconventional night lighting installed in the outdoor
passages in the factory with energy-saving fluorescent mercury lamps (Neocera 200W lamps) withhigher energy efficiency to promote energy saving.
We could use the existing mercury lamp stabilizers
as they were and realized high efficiency, highcolor rendering, and long lifetime while reducing
the installation cost. We have replaced lighting in
28 positions in the entire factory, which also
helped to improve security.

Night lighting[Reduction results in FY2012]• Reduction of electrical usage: Approx. 16,000kWh/year• Reduction of electricity charges: Approx. 131,000 yen/year• Reduction of CO2 volume: Approx. 5,350kg-CO2/year
When a mercury lamp 400W is replaced with [HL-Neocera 2] 200W
Power
Mercury lamp (fluorescent type)consumption
HL-Neocera 2 (fluorescent type)
(W)

208W

Power
Powe
Po
wer
saved
sa
s
av
ve
ed by
by
50%
5 %
50

415W

*If a 200W lamp is replaced with a mercury lamp 400W, the light flux of the lifetime is reduced by approx. 13%(calculated value).

<Approach to reduction of CO emissions by introducing LED lighting and highly-efficient air conditioners>
2

Iseki-Kumamoto MFG. Co., Ltd. set an intensive“guest corner” for meetings with our customers andsuppliers on the first floor of the head office toimprove information security and space saving ofeach office. At that time, we replaced decrepit
lighting and air conditioners with LED lighting andhighly-efficient air conditioners. In addition, we
attached light-blocking films on every glass
window to significantly cut heat rays and ultraviolet
rays. We will continuously promote prevention of
global warming and energy saving by replacing
inefficient equipment.

LED lighting

Highly-efficient air conditioner[Reduction results in FY2012]• Reduction of electrical usage: Approx. 18,000kWh/year• Reduction of electricity charges: Approx. 116,000 yen/year• Reduction of CO2 volume: Approx. 9,300kg-CO2/year

Light-blocking film

Guest corner

Control to inhibit emission of greenhouse gas
Environmental report<Approach to reduction of electrical usage by introducing energy-saving lamps>
Tobe Office replaced the mercury lamps of the
combine zone lighting of the experiment building tolonger-lasting energy-saving lamps (electrodelesslamps - eneBright) to reduce the electrical usage.

[Reduction results in FY2012]• Reduction of electrical usage:
Approx. 552kWh/year• Reduction of electricity charges:
Approx. 183,000 yen/year• Reduction of CO2 volume:
Approx. 305kg-CO2/year(Calculated with 7h/day × annual operating days)

Magnetic field
Induction field

Secret of long life
known by lighting
principle

Fluorescent
substance
Visible ray

Ultraviolet ray

The bulb does not go out
because it has no ﬁlament!
EneBright has a long
lifetime of approx. 60,000
hours!

Coil
High-frequency
current

Mercury atom

Electron

Energy-saving lamp

<Approach to reduction of electrical usage by replacing air conditioner in three-dimensional measuring room>
Iseki-Hoei MFG. Co., Ltd. has a three-dimensional measuring room where precision parts such as mission cases
are measured after machine processing. It is a thermostatic chamber that is stable in 24 hours to secure stableaccuracy of instruments. The air conditioner with which we replaced this time was an energy-saving type with ahigh-performance DC fan motor and could significantly reduce electrical usage.

[Reduction results in FY2012]• Reduction of electrical usage: Approx. 6,700kWh/year• Reduction of electricity charges: Approx. 80,000 yen/year• Reduction of CO2 volume: Approx. 3,700kg-CO2/year

High efficiency
Ŷ APF value by ability

Air conditioner

All models of HyperInverter comply with theenergy-saving standards in 2015（

[APF value by ability]

Power saving is realized with ahigh-performance DC fan motor
installed on the turbo fan.

Values represented by gray bar are the standard values of the Act on the Rational Use of Energy in 2015
）Values in parentheses are the standard values of the Act on Promoting Green Purchasing in 2015
Ceiling embedded type with two
directions
When connected to an interior
unit (three-phase machine)*8 horsepower and
10 horsepower with a twin type

1.5
1.8
2
2.3
2.5
3
4
5
6
8
10
(horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower( (horsepower(

Three-dimensional measuring roomPreventing global warming
Environmental report[Reduction of energy use in the factories]
The four factories of Iseki Group promote
reduction in consumption of electricity and fuelrequired for production activities in the factories,
by realizing the efficient operation of all machines
and facilities, and by replacing existing machineand equipment with energy-saving type ones.
We have established and promoted the second
new mid-term and long-term plan (from FY2011
to FY2015) with the average of three years,
from FY2008 to FY2010, as a reference value.
In FY2012, the achievement rates of the total
volume of CO2 emissions and the volume ofCO2 per production volume were 100% and96.9% respectively against the reduction target
of 4%/year, falling short of the goal. We willcontinuously strive to reduce the volume of CO2
emissions.

Volume of CO2 emissions resulted by using energy at 4 factories
Average ofresults of 3 years

TargetResultAchievement rate
TargetResultAchievement rate

Total volume(t-CO2)
Per production volume(t-CO2 / 100million yen)
Volume of CO2 emissions resulted by using energy

Volume of CO2 emissions resulted byusing energy (in per production volume)

Houei
Niigata
Kumamoto
Matsuyama[Reduction of energy use in product distribution]
We grasp the environmental stresses in
distribution of Iseki products and parts and takeactions to reduce them.
In FY2006, we became a specified shipper
because the CO2 emissions slightly exceeded
30 million ton-km. After that, the emissions havebeen varying slightly under 30 million ton-km.
We have promoted modal shift and contributed
to reduction of the total volume of CO2
emissions, however, the modal shift rate has
been flat since FY2009.

Volume of CO2 emissions in product distribution
10,000ton-km
Total volume (t-CO2)
Rate (t-CO2/10,000ton-km)
Modal shift rateNote) Modal shift rate = (railway ton-km + sea freight ton-km) ÷ total ton-km

Reducing total material input
The four factories of Iseki Group reduce totalmaterial input such as raw materials, production
supporting materials, purchasing parts, etc. topromote energy saving activities.
We have established and promoted the second
new mid-term and long-term plan (from FY2011
to FY2015) with the average of three years,
from FY2008 to FY2010, as a reference value.
In FY2012, the achievement rates of the total
volume of materials used for production and thevolume of materials used per production volume
were 118% and 112% respectively against the
reduction target of 2%/year, exceeding the goal
substantially.
We will continuously strive to reduce the total
volume of materials used for production.

Total volume of materials used at 4 factories
Average ofresults of 3 years

TargetResultAchievement rate
TargetResultAchievement rate

Total volume(ton)
Per production volume(ton/100 million yen)
Total volume of materials used for production

Total volume of materials used for production(in per production volume)

Houei
Niigata
Kumamoto
Matsuyama

Preserving water resources
Environmental report[Reduction of volume of water used]
According to the installation of the water
circulation facility and implementation ofcountermeasures for water leakage, the four
factories of Iseki Group strive to reduce thevolume of water used.
We have established and promoted the second
new mid-term and long-term plan (from FY2011
to FY2015) with the average of three years,
from FY2008 to FY2010, as a reference value.
In FY2012, the achievement rates of the total
volume of water used and the volume of waterused per production volume were 91% and 86%
respectively against the reduction target of
28%/year, falling short of the goal.
Water shortage is becoming a more serious
issue than food shortage or exhaustion of fossil
fuels with the population growth expected in the
future. We will continuously strive to reducewater usage.

Volume of water used at 4 factories
Average ofresults of 3 years

TargetResultAchievement rate
TargetResultAchievement rate

Total volume(Unit: 10,000ton)
Per production volume(ton/100 million yen)
Volume of water used

Volume of water used(in per production volume)

Houei
Niigata
Kumamoto
Matsuyama

Optimal control and reduction of use of chemical substances[Optimal control of use of chemical substances]
The four factories of Iseki Group strive to
reduce chemical substances subjected to
PRTR law by replacing paint with one whichcontains less toxic chemical substances
stipulated and introducing regeneration facilitiesof paint thinner.
We have established and promoted the second
new mid-term and long-term plan (from FY2011
to FY2015) with the average of three years,
from FY2008 to FY2010, as a reference value.
In FY2012, the achievement rates of the total
volume of use and the used volume per
production volume were 89% and 85%
respectively against the reduction target of
8%/year, falling short of the goal.
We will continuously strive to perform
appropriate control and management of suchchemical substance and reduce the volume ofuse.

Volume of use of chemical substances controlled by PRTR law at 4 factories
Average ofresults of 3 years

TargetResultAchievement rate
TargetResultAchievement rate

Total volume(ton)
Per production volume(ton/100 million yen)
Volume of chemical substances use

Volume of water used(in per production volume)

Houei
Niigata
Kumamoto
Matsuyama[ Volume of use of substances controlled by PRTR law ](unit : ton)

2001
Matsuyama Kumamoto Niigata

XyleneTolueneEthyl benzene
Water-soluble zinc compound
Dichloromethane
1, 3, 5-Trimethylbenzen
Total

2011
Houei

Total Matsuyama Kumamoto Niigata

2012
Houei

Total Matsuyama Kumamoto Niigata

Houei

Total

3R of production processes
Environmental report[Reduction of wastes]
Total volume of wastes

To build a recycling-oriented society, four factories of Iseki Group have been
contributing to an effective usage of their wastes by promoting restriction of wastes,
reuse and recycling.
We have established and promoted the second new mid-term and long-term plan(from FY2011 to FY2015) with the average of three years, from FY2008 to FY2010,as a reference value.
In FY2012, the achievement rates of the total volume of final wastes and thevolume of final wastes per production volume were 52% and 49% respectively
against the reduction target of 10%/year, significantly falling short of the goal.
This is because we conducted landfill operation due to closure of the recycling
company of molding sand and delay of selection of a new recycling company. We
will continuously strive for reduction of the total volume of final wastes.

Total volume of wastes at 4 factories

Recycling volume
Reduction volume
Volume of final
wastesVolume of final wastes (in per production volume)

Average ofresults of
3 years
Total volume (t)WastesPer production volume(t/100 million yen)
TargetResultAchievement rate
TargetResultAchievement rate

Total volume (t)Volume offinal wastes

Per production volume(t/100 million yen)

Reduction volume (t)Recycled volume of wastes (t)Rate of final wastes (%)
Rate of recycling (%)

Waste disposal flow
The waste disposal flow in FY2012 is as shown below. The rate of final waste was 14% and the rate of recycled volume was
75% which were greatly improved from the reference year 1997 but significantly decreased compared with the last year.
As described above, closure of the recycling company of molding sand affected the results significantly.
In accordance with the operations of the four factories, we will continue to promote restraint, thorough segregation andrecycling of wastes, and reduction of final volume, aiming at zero emission (our standard: the rate of the final volume ofwastes against the total volume of wastes shall be less than 1%).

Waste disposal flow: FY2012(Unit: ton)

Direct recycling volume

Recycling volume

Recycling volume after treatment
Residual volume of treatment
Total of waste emissions

Volume of intermediate treatment

Volume of final wastes after treatment
Reduction volume

Direct volume of final wastes

Volume of final wastes

Note1) The reduction volume, the recycling volume after treatment and the volume of final wastes after treatment associated with
the intermediate treatment are the results of investigation to the subcontractor of waste disposal.
Note2) Rate of the volume of final wastes ＝volume of final wastes (D+H) ÷ total of waste emissions (A)Note3) Rate of the recycling volume ＝recycling volume (B+G) ÷ total of waste emissions (A)Approach to preserve biodiversity
Environmental report
Iseki Group regards the approach to preserve biodiversity as an important challenge in environmental management,
while recognizing that we benefit from blessings of nature produced by biodiversity (ecological system service) andstrives to realize a sustainable society co-existing with nature.

< Approaches that we have taken for preservation of biodiversity >Since its foundation in 1926, Iseki has provided safe and easy-to-use agricultural
machines and facilities and strived to preserve biodiversity by supporting
approaches to sustainable Japanese agriculture and preservation of naturalenvironment such as farmland and rivers.
<Approaches that we have taken for preservation of biodiversity>(1) We provide easy-to-use, high-performance, environment-friendly agricultural
machines that have excellent energy-saving performance.
(2) We provide agricultural machines and facilities that reduce use of fertilizer andsterilization harmful to living organisms and control them properly.
(Examples) • Riding tillers for highly-efficient sterilization• Boom tablers (granular chemical applicator) that spread chemicalfertilizer properly• Inside ridge processors• Warm water sterilization treatment machines for seed rice treatment• Promotion of use of indigenous bees for greenhouse cultivation• Hydroponics aiming at pesticide-free production(3) We issue “Farm Love-land News” that introduces a wide range of proposals andapproaches for low-cost agriculture such as sparse planting cultivation for rice
planting and provide positive information to our farmhouse customers.
(4) As a promotion partner of “FOOD ACTION NIPPON”, Iseki Group develops
activities to increase the food self-sufficiency ratio with themes of “local
production for local consumption”, “low-cost agriculture”, and “food in the future”.
(5) We promote prohibition/reduction of use of harmful substances in environmentfriendly designing.

Eco-Unemaze-kun

Sparse planting cultivation< Approach to reduction of fertilizer usage >For an approach to biodiversity, we promote growth of forests as biodiverse habitats.
Iseki joins in with “Promotion Group of ‘Town Development with Forests’” led by Iyo
Bank, Ltd. of Ehime prefecture and participates in tree-planting ceremonies held in
various locations.

In Central Park

<Matsuyama Bicycle Racetrack in Central Park>• Date: November 11, 2012
• Participants: 29 groups, approx. 400 persons• Tree planting: Approx. 1,500 plants of 9 kinds of evergreen broad-leaved
trees such as camellia hiemalis<Joint tree-planting ceremony on Matsuyama outer circumferential road>• Date: March 24, 2013
• Participants: 26 groups, approx. 500 persons• Tree planting: Camellia hiemalis, Rhaphiolepis umbellata, approx. 6,000
plants“Promotion Group of ‘Town Development with Forests’” (started from August 2010)carries out tree-planting activities in company-owned land and public land in thetown, aiming to plant 50,000 trees by three years later to “grow real forests nearourselves to leave an environment for healthy growth of children to the next
generation”, with companies in the center that are working on preservation of local
natural environment.

Matsuyama outer circumferential road

Approach to design for environment
Environmental report< Approach of eco-product certification system ><Eco-product certification system>
From November 1, 2011, Iseki set its own environment-friendly design standard and started to implement“eco-product certification system” in which environmental labels are used only for products that have passed thestandard.
This “eco-system certification system” is intended to evaluate the compatibility of products with environmental
preservation in our standard and provide information on reduced environmental stresses of the certified products tocustomers and all stake holders more plainly.
We also utilize it as an index or guideline to further promote environment-friendly design in in-house productdevelopment.
*Among the environmental labels specified by International Organization for Standardization (ISO), ourenvironmental labels comply with “Type II environmental label” for self-declaration of environmental friendliness ofthe product based on the business operator’s own standard.
<Certification standard>
We evaluate the compatibility of our products with environmental preservation with our own evaluation indexes.
Products that have passed the in-house standard are certified as eco-products.
In addition, products are certified either as “super eco-products” or “eco-products” according to the level ofenvironmental friendliness.
<Certification labels>
The certification labels of eco-products have a mark and description of environmental performance that arepresented on the product catalogue, operation manuals, etc.
<Evaluation item>

1. Weight reduction of product2. Restraint of use of harmful environmentally hazardous substances
3. Easiness of maintenance and inspection
4. Reduction of environmental stresses in use
5. Improvement of recyclability
6. Reduction of environmental stresses in manufacturing stage
7. Reduction of environmental stresses in logistics of product8. LCA (life cycle assessment)
9. Disclosure of information on product usage (communication)
10. Noteworthy function
The ten items above are further divided into detailed items to be evaluated with score respectively. Comprehensive evaluation ismade with the total score of improvement.

<Certified eco-products>
Subject productRank of eco-product

Major improvement

Combine harvester

HFC330/433

Eco-product

Our standard LCA (calculated valueof CO2 emissions of the entire cyclefrom production to disposal) has been
improved compared with that of ourconventional model

Dryer

GML25H/30H/
35H/40H/45H

Super eco-product

Energy-saving performance has beenrealized with a heat recycling
mechanism installed (only H type)

Electrical mini
cultivator

KDC20
VAB235

Super eco-productGas emissions have been reduced tozero by changing from conventional
engine drive to motor drive

Approach to design for environment
Environmental report< Approach of NTA tractor series >To reduce emissions of carbon dioxide (CO2), promotion/enlightenment activities of energy-saving agricultural machines
are in progress. For example, the Ministry of Agriculture, Forestry and Fisheries has prepared “Energy saving manual for
agricultural machines”. We developed the new model tractor NTA series as products that can contribute to energy saving
and reduction of environmental burdens with a function to display the workload status of the tractor on the monitor thatallows the operator to easily select efficient work.

Embedded Green NaviNTA tractors have an embedded “Green Navi” function that
displays the workload status of the tractor on the color LC
monitor “Multi-eye” to show the work/operation statuses of
the tractor.
“Green Navi” allows the operator to grasp the status ofengine load with lighting status of the five “green marks”.
The operator can select energy-saving operation byadjusting the traveling speed and engine speed so that
“Green Navi” should display the optimal work efficiency.

NTA35 (specification with high speed)

Energy-saving effectIn cultivation work with a tractor, fuel consumption can be
reduced by energy-saving operations such as decreasing of
the engine speed or decreasing of the engine speed withincreased traveling speed under a working condition where
the engine has enough power.
“Energy Saving Manual for Agricultural Machines”
introduces cases of reduction by 15 to 30%.
In the past, energy-saving operations required experiences
and instincts. However, “Green Navi” allows anyone toselect an efficient energy-saving operation, contributing to
low-cost agriculture.

Display status of green marks

Multi-eye screen

Dual clutch transmission
Super low speed
Low speed

The NTA tractors (specification with high speed) employ adual clutch transmission with 32-speed forward-reverse shiftthat allows you to change gears with no clutch operation.
Since it has a number of speeds, you can finely select amore efficient operating speed, which is an energy-saving
operation utilizing “Green Navi”. In addition, you can shift
gears easily also during the operation.

NTA55FF typeRunning speed table* With declared engine speed
Rough Cultivation

Cultivation

Medium speed

Soil puddling
Blower, etc.
Pasture grassHigh speed

Approach to design for environment
Environmental report< Approach of multi-crop combine harvester HC758 for China >In the Chinese market, a multi-crop combine harvester that can perform harvesting operation of rapeseed in addition to
those of rice/wheat was required. Also, improvement of crop adaptability was required for harvesting operation. We havedeveloped a multi-crop combine harvester HC758 for China to respond to such requests, considering
environment-friendly designing such as reduction of number of parts.

Improvement of crop adaptability
With the multi-crop combine harvester HC758 for China, we have improved
crop adaptability by installing the following two new mechanisms.
(1) Threshing drum with bars:

A mechanism with round bars arranged on
the surface of the threshing drum to reduceload and loss
(2) Stalk dividing vertical cutter: A mechanism with a stalk dividing verticalcutter attached to the reaping section to cut
rape and divide stalks simultaneously sothat a cluster of rape can be continuously
reaped(1) Threshing drum with bars

Multi-crop combine harvester HC758(2) Stalk diving vertical cutter

A threshing drum with bars arrangedon the surface to improve the crop
adaptability of rice, wheat, and rapeseed

A device that cuts rape with a verticalcutter while dividing stalks to improvethe crop adaptability of rapeseed

Reduction of number of parts
We reduced the number of parts greatly by unifying and simplifying parts and narrowing down functions.
Compared with the domestic soybean combine harvester HC380, the number of parts was reduced by 48%.
<Reduction of number of parts by narrowing down functions>
Possibleto swing<Reduction of number of parts>

Fixed

Reducedby 48%For Japan

For China

Green purchase / Green supply
Environmental report
typepurchase
HFC combine< Green> harvester >< Approach of 3-row
We promote green purchase to prioritize productswith environmental labels such as eco marks andGPN (Green Purchase Network)* standard products
when purchasing commercialized commodities
such as office supplies and electric and electronic
devices. The total amount of green purchase ofentire Iseki Group was 93% of the total purchase in
FY2012.
Ratio of green purchase

Entire image of green purchasing

Parts, materials,
Customers and suppliers
and machinery with fewer
which are proactive
environmental stresses
for environmental
promotionGreenpurchasing

Non-green purchase
7%
Greenpurchase
93%

Development ofenvironmentconscious
products

Recycling

User

Reduction ofenvironmental stresses(Modal shift)

Environment-friendly
designing LCA

Manufacturing andshipping of environmentconscious products

Environmental processes
Reduction ofenvironmental stresses< Green supply >We evaluate our suppliers and vendors based on our green purchase standard. We jointly promoteincrease of green purchase for environmental preservation and building of a sustainable resource
recycling society.

Ratio of green purchase<Criteria of green purchase>• Certifications such as ISO14001, EA-21, etc. are acquired.
• Voluntary and progressive environmental approaches complying with Iseki Green Purchase
Guideline are promoted.
In FY2012, the green purchase ratio was 59% of the total number of vendors and suppliers and theamount of green purchase from these suppliers and vendors was 78%. Iseki will strive toencourage our suppliers and vendors to acquire the certification of EMS in the future so as toincrease the ratio of our green purchase.

The number ofcompanies basis

Amount ofbusiness basis< Support for solar radio control car race and utilization of green electricity >Since 2010, Iseki has supported the “solar radio control car endurance race” that is the
only one in Japan and has been held in the multipurpose athletic field in the Central Parkin Bochan Stadium in August every year since 2009 by Matsuyama-shi for the purpose ofutilization of solar energy to promote proactive introduction of solar power generation andindustries related to solar power. We also contribute to reduction of environmental
burdens by purchasing green electricity certificates.

<Supporting companies>
ISEKI & CO., LTD., IYO RAILWAY CO., LTD., STNet, Inc.,EHIME BANK LTD., EHIME NISSAN MOTOR CO., LTD.,
Matsuyama Branch of YONDEN Shikoku Electric Power
CO., Inc., SEKI Co., LTD., Ehime Branch of SEKISUI
HOUSE, LTD., DAIKI AXIS CO., LTD., EHIME Photovoltaic,
Ehime Branch of Daiwa House Industry Co., Ltd., FUJIKENENGINEERING CO., LTD., Fujisaki Electric Co., Ltd,
Fujihira Co., Ltd.

Education and training for environment / Qualified persons
Environmental report< Approach to systematic environmental education and training >To develop the recycle-oriented society and realize the Low-Carbon
emission society, it is necessary for each employer to enhance theirown consciousness and competency of the environment to promote
the reduction of environmental stresses.
For this, Iseki Group aims to improve environmental consciousness
by providing education and training based on an environmental
program with three major steps according to the level ofenvironmental stresses: general environmental education for every
employee, training and education for special jobs, and training for
employees who engage with jobs which require certain official
qualifications.

to environment-related laws and legal qualification< Strict complianceand promotion of licenses related to environment >As we acknowledge that conformance to environment-related laws
and legislation is the basis of environmental preservation activities,
we therefore encourage all of our employees to observe themstrictly.
At the same time, we encourage our employees to have the official
qualifications needed for the promotion of developing recycling-oriented
society, such as managers in charge of pollution supervisor, chief
electrical engineer, and boiler engineers.
The number of employees qualified for official environmental
qualification as of the end of March, 2013 is shown in the following
table.

Consciousness education:
All employees

Air
Pollution supervisor

Training forspecialist labors

Number of employees

Name of qualification
Water quality
Noise
Vibration
Energy control engineer
Energy controller
Chief electrical engineer
Boiler engineer

Officiallyqualified persons

High pressure gas production safety supervisor
Industrial waste treatment facility engineer
Specific chemical substances chief operator
Hazardous material handler
The number of officially qualified persons for environment

System for education and training for environment / Qualified persons< Environmental education >< Training for internal environment auditors >Iseki Group promotes the environmental preservation not only intheir workshops but also in their home and community such asenergy saving in their home and eco-driving.
For promotion of environmental preservation, awareness of every
employee is required. We strive to raise the awareness of theenvironment through various environmental training and issuance of
Iseki Group newsletters.

Iseki confirms the effectiveness of the system through theenvironmental education based on the environmental management
system and yearly regular audits by external certification institutes,
as well as internal system application audits.
Iseki Group trains internal auditors in a planned and regular way toenhance internal audit. We have been offering our employees
in-house education and, if necessary, unified and systematic training
and education by external institutions as we think it is important to
up-grade the skills and capabilities of our employee in order to spiral
up in PDCA of the environmental management system.

< Environmental training >Lecture for environment

It is required to complete training and educations to a certain level
for any employees assigned to particular jobs such as casting, heat
treatment and painting, based on training programs for each job
including legal requirements, before performing actual jobs.
This training and education is offered on a regular basis, handlingthe impacts of such particular jobs to the environment, daily
management procedures, and emergency procedures with due
investigation and check of regulatory changes.

Environmental communication
Environmental report< Approach rooted in community >Iseki Group promotes various activities in each district to be attached firmly to the community and contribute to the society. As acompany firstly registered to “FOOD ACTION NIPPON(FAN) Promotion Headquarters” set in the Ministry of Agriculture, Forestry
and Fisheries, we work on improvement of the food self-sufficiently ratio and promotion of friendship with communities as local
production for local consumption activities and conduct CO2 emission reduction activities to promote a Low-Carbon society.

Rapport Festival in Niigata district

CO2 emission reduction activity in Matsuyama district

Rice planting in Kumamoto district< Communication with people outside of Iseki-Matsuyama, Kumamoto, and Niigata >As a part of communication with people from outside, Iseki-Matsuyama MFG. Co., Ltd., located at the birthplace of
Iseki, and other Iseki’s manufacturing factories, such as Iseki-Kumamoto MFG. Co., Ltd. and Iseki-Niigata MFG. Co.,
Ltd. accept elementary school students, senior high school students, local residents, and people from other countries
for plant tours on a steady basis.
In each exhibition facility, we provide a panel corner of “increase of food self-sufficiency” and “local production for
local consumption” and exhibition of agricultural products of each district and present materials concerning food todispatch information for increase of food self-sufficiency.

Our website http://www.iseki.co.jp

Visit to Iseki-Matsuyama MFG. Co., Ltd.

Visit to Iseki-Kumamoto MFG. Co., Ltd.

Visit to Iseki-Niigata MFG. Co., Ltd.

Environmental communication
Environmental report

Farmers & Kids Festa 2012
Livingittogether,thcultivating
lti tittogetherth >< LiIseki Group exhibited agricultural machines and riding corners in “Farmers & Kids Festa 2012” held in Hibiya Park from
November 10 (Sat.) to 11 (Sun.) in 2012. Professional farmers gathered in this event from all over Japan to transmit
messages of vital Japanese agriculture to urban children as “a bridge between children and agriculture”. This time, we
had 64,000 visitors.

ƇOutline• Date: November 10 (Sat.) to 11 (Sun.), 2012
• Place: Hibiya Park
• Organizer : Executive Committee for Farmers & Kids Festa
Co-organizers: Japan Agricultural Corporations Association,
Japan Brand Agricultural Corporation,
Japan Professional Agriculture Total Support OrganizationƇEvents in the Iseki booth• Home gardening with electrical mini cultivator(ERENA)• Taking a commemorative photo with a tractor BIG-T• Riding agricultural machines

Iseki booth

Sanae-chan gained much popularity also this year!

Operating ERENA corner

As in last year, many people visited the Iseki booth. In the corner to take commemorative photos, we provided a service to takephotos of visitors with our largest tractor TJV behind them and print the photos on calendars to give them as presents to visitors.
In the ERENA operating corner, we prepared an agricultural field with soil to let children simulate agricultural work. We believe that
operation of an agricultural machine unfamiliar in their daily life provided the families with a good memory and awakened theirinterest in agriculture and food.

Environmental communication
Environmental report

Food in Hometown &Food in Japan National Festival
Iseki presented its products in “Food in Hometown & Food in Japan National Festival “ held in Yoyogi Park from March
9 (Sat.) to 10 (Sun.) in 2013. “Food in Hometown & Food in Japan” that was started from 2001 is an event aiming toreview local food cultures and hand them on the next generation. On this day, we were blessed with good weather
most of the time and had many visitors.

ƇOutline• Date• Place• Organizer: March 9 (Sat.) to 10 (Sun.), 2013
: Yoyogi Park: “Food in Home Province & Food in Japan” National Planning Committee(Central Union of Agricultural Cooperatives,
National Federation of Fisheries Co-operative Associations,Japan Fisheries Association, NHK)ƇEvents in the Iseki booth• Home gardening with electrical mini cultivator ERENA• Taking a commemorative photo with a tractor BIG-T• Riding agricultural machines

Large-sized combine harvester

Operating ERENA

Taking a commemorative photo with a large-sized tractor

Also in this event, the Iseki booth was thriving and many children stood in a long line in front of the ERENA operating corner andthe exhibition corner of machines. This time, we had our largest tractor BIG-T in the corner to take commemorative photos.
Children exclaimed with astonishment, seeing how enormous it was.

Many visitors came to the Iseki booth in both events “Farmers & Kids Festa” and “Food in Hometown & Food in Japan”. Children
showed great interest in machines they saw for the first time and had a great time learning about agricultural machines with theirfamilies. We believe we could not only let general public recognize “ISEKI CO., LTD.” but also play a part in “a bridge between
children and agriculture” as a company engaged in agriculture.

Environmental communication
Environmental report< Approach to succession of skills and techniques to meet globalization >Iseki will establish “Iseki Technical Training Center (ITTC)” to be completed in October 2013 to cultivate front-line
engineers, skilled workers, supervisors, etc. for the purpose of succession of skills and techniques in production
activities and response to globalization of overseas production bases that will be rapidly expanded in the future. The
new building will be built in the premises of Iseki-Matsuyama MFG. Co., Ltd. It will have an environment-friendly
structure in consideration of the environment and energy saving, employing (1) bright and simple appearance, (2)design in consideration of acceptance of trainees from overseas, and (3) use of LED for all the lighting. Especially, it
will be a sending base that plays a central role of manufacturing technologies of Iseki Group, supporting overseas
production bases.

Construction position of
new building of ITTC
Completion image of ITTC

< Highest of environmental rating of Development Bank of Japan (DBJ) seven times in a row >In February 2013, ISEKI & CO., LTD. earned the highest rating ("environmental consciousness notable progressive")of “DBJ Environmental Rating” of Development Bank of Japan (hereafter called “DBJ”) seven times in a row.
“DBJ Environmental Rating” evaluates index of sustainable management of companies by a screening system (*1)
developed by DBJ. It is the first loan menu in the world which offers advantageous interest rate according to the point.
Evaluation and rating are made based on not only information such as environmental reports but also on the resultsof questions to which companies reply by themselves.
The following points were evaluated as our efforts to improve the level of environmental management. As a result, we
earned the highest rating seven times in a row.
(1) Introducing “eco-product certification system” based on strict assessment and promoting development ofenvironment-friendly agricultural machines.
(2) Working on enlightenment activities of low-cost agriculture and sparse planting cultivation by cultivation of
instructors of sparse planting farming and issuing the farming information magazine “Farm Love-land News”, andstriving for preservation of ecosystem through improvement of efficiency and resource saving of agriculture.
(3) Developing environmental activities with all the employees involved by utilizing an “improvement proposal system”
to encourage employees to submit proposals for improvement in areas such as environment, quality and safety.

RatingEnvironmental
screening
Approximately
120 items,
out of 250
Company

Small andMajor company medium-sized company Interest rate
Special interest
160 or more
rate IISpecial interest
rate I

140 to 159(Engagement)
Without rating

100 to 139

80 to 139

General interest
rate

80 to 99

50 to 79

General interest
rate

Less than 80

Less than 50

Not passed

Certificate

Iseki-Matsuyama MFG. Co., Ltd.
Environmental report< Company profile >Address
Number of
employees
Area< Environmental data >Volume of CO2 emissions resulted
by using fossil fuelVolume of CO2 emissions resulted by using
fossil fuel (in per production volume)

Wastes and recycling

700 Umaki-cho, Matsuyama-shi, Ehime prefecture
608 (As of March 31, 2013)
151,000m2

Major products Tractors, Riding mower, Dryers, Engines<

Action policy

1. Continuous improvement

Recycling volume>

Reduction volume
Final volume ofwastesFinal disposal rate

Continuously improve the environmental management system andenvironmental performance by observing the environmental
management system based on ISO14001.

2. Observation of laws and regulations concerning environment
Observe environment-related legislation, local government regulations,and agreements concluded by the company.

Rate of recycling

Volume of water use

Volume of water use(in per production volume)

Volume of chemical substances use

Volume of chemical substances use(in per production volume)(Unit : 1,000ton)

3. Mitigation of negative impacts on environment and prevention ofcontamination
1) Minimize volume of CO2 generated as a result of production andelectric energy use
2) Reduce wastes and segregate them for collection and recycling3) Reduce and control chemical substance optimally
4) Product design to consider the environment
These purposes and targets shall be set up within a technically andeconomically possible range, reviewed on a regular basis in order todeploy them into business activities, and aim to improve the company
profit on top of the reduction of environmental stresses and theprevention of pollution.

4. Contribution to community
1) Save electricity and use electricity efficiently as a corporate citizen inorder to contribute to the severe water issues that our community
has.
2) Proactive participation in the environmental preservation activities ofcommunity.

5. Familiarization of information to all employees
Familiarize all the information of environmental policy to all employees
in the company and deal with the environment issues together througha publicity using company news and environmental education.

6. Disclosure of environmental policies
Disclose the environmental policies upon request of outsiders.
1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneIseki-Kumamoto MFG. Co., Ltd.
Environmental report< Company profile >Address
Number of
employees< Environmental data >Volume of CO2 emissions resulted
by using fossil fuelVolume of CO2 emissions resulted by using
fossil fuel (in per production volume)

Wastes and recycling

1400 Yasunaga, Mashiki-cho, Kamimashiki-gun, Kumamoto prefecture
294 (As of March 31, 2013)

Area

217,000m2
combine harvester,
Major products Head-feeding
Multi-crop combine harvesters, Carrot harvesters<

Action policy

1. Continuous improvement

Recycling volume>

Reduction volume
Final volume ofwastesFinal disposal rate

Continuously improve the environmental management system andenvironmental performance by observing the environmental management
system based on ISO14001.

2. Observation of laws and regulations concerning environment
Observe environment-related legislation, local government regulations,and agreements concluded by the company.

Rate of recycling

Volume of water use

Volume of water use(in per production volume)

Volume of chemical substances use

Volume of chemical substances use(in per production volume)(Unit : 1,000ton)

3. Mitigation of negative impacts on environment and prevention ofcontamination
1) Promote energy-saving and resource-saving
2) Promote reduction of industrial wastes
3) Accelerate recycling approach
Set up targets to the extent technically and economically possible tocarry out. Execute and review the targets on a regular basis so as tomitigate negative impacts and prevent contamination.

4. Contribution to community
Open company welfare facilities up to public and contribute to theenvironmental preservation through cleanup activities.

5. Familiarization of information to all employees
Familiarize all the information of environmental policy to all employees
and constituent members in the company and deal with the environment
issues together through a publicity using company news andenvironmental education.

6. Disclosure of environmental policies
Disclose the environmental policies upon request of outsiders.

1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneIseki-Niigata MFG. Co., Ltd.
Environmental report< Company profile >Address
Number of
employees
Area< Environmental data >Volume of CO2 emissions resulted
by using fossil fuelVolume of CO2 emissions resulted by using
fossil fuel (in per production volume)

Wastes and recycling

3-12-23 Nishiohsaki, Sanjo-shi, Niigata prefecture259 (As of March 31, 2013)
29,000m2

Major products Rice transplanters, Rice hullers, Vegetable transplanters, Binders<

Action policy

1. Continuous improvement

Recycling volume>

Reduction volume
Final volume ofwastesFinal disposal rate

Continuously improve the environmental management system andenvironmental performance by observing the environmental management
system based on ISO14001.

2. Continuous improvement and prevention of contamination
Set up the environmental target and practice to achieve the target while
reviewing the target on a regular basis in order to improve theenvironmental performance continuously.
1) Improve energy use2) Improve use of natural resources
3) Reduce waste and recycle4) Control chemical substances properly

Rate of recycling

Volume of water use

Volume of water use(in per production volume)

Volume of chemical substances use

Volume of chemical substances use(in per production volume)(Unit : 1,000ton)

3. Familiarization of information to all employees and contribution tocommunity
Distribute publicity to every employee through corporate environmental
activities and education, as well as having close communication withpeople in the community, in order to promote environment preservation
activities.
We will disclose our environmental policies to the public upon request
so that the people in the community will know our policies.

4. Disclosure of environmental policies
Disclose the environmental policies upon request of outsiders.

1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneIseki-Houei MFG. Co., Ltd.
Environmental report< Company profile >< Environmental data >Volume of CO2 emissions resulted
by using fossil fuelAddress
Number of
employees
Area

Volume of CO2 emissions resulted by using
fossil fuel (in per production volume)878-1 Umaki-cho, Matsuyama-shi, Ehime prefecture
240 (As of March 31, 2013)

Wastes and recycling

8,959m2

Major products Cultivators, Tillers, Walk behind mower, System rice cooker< Action policy >Recycling volume

1. Continuous improvement

Reduction volume
Final volume ofwastesFinal disposal rate

Continuously improve the environmental management system andenvironmental performance by observing the environmental
management system based on ISO14001.

Rate of recycling

2. Observation of laws and regulations concerning environment
Observe environment-related legislation, local government regulations,and agreements concluded by the company.

3. Mitigation of negative impacts on environment and prevention ofcontamination
1) Reduce volume of electric energy use
2) Reduce volume of water use
3) Segregate wastes for collection and recycle

4. Contribution to community
1) Save electricity and use electricity efficiently as a corporate citizen inorder to contribute to the severe water issues that our community
has.
2) Participate in the environmental preservation activities in our community
proactively

5. Familiarization of information to all employees
Familiarize all the information of environmental policy to all employees
and constituent members in the company and deal with theenvironment issues together through a publicity using company newsand environmental education.
6. Disclosure of environmental policies
Disclose the environmental policies upon request of outsiders.

(Unit : 1,000ton)

Volume of water use

Volume of water use(in per production volume)Achieving Harmony between Human Beings and the EarthContact about this report
Environmental Control Department, ISEKI & CO., LTD.
791-2193 1 Yakura, Tobe-cho, Iyo-gun, Ehime prefecture
Phone: +81-89-957-3311 Fax: +81-89-957-7959
E-mail: kankyo@iseki.co.jp
Issued in Aug., 2013

Let’s keep up with Green Purchasing.

This report is printed using a new technology,
soybean oil ink which contains limited volumeof VOC (Volatile Organic Compound).