Environmental Report
Version: 2009

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

INDEX
Message from our president . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2Outline of our business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Environmental management
Eco vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5Outline of management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6Environmental management system . . . . . . . . . . . . . . . . . . . . . . . .

7Mid-term and long-term environmental targets
and results of the FY2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental risk management . . . . . . . . . . . . . . . . . . . . . . . . . . .

899Environmental risk management<Examples of air pollution prevention and control > . . . . . . . . . . . . . . . . . . . . 10

Environmental performance
Eco factory

Promotion of energy saving<Preventing global warming> . . . . . . . . . 12

Promotion of energy saving<Preserving water resources and reducing total material input> . . . . . . . . . . 13

Reduction of industrial wastes<3R of production processes> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Optimal control and reduction ofuse of chemical substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Eco products

Approach to environment-friendly designing . . . . . . . . . . . . . . . . . 14
Support to promote environment-friendly agriculture . . . . . . . . . 17
Green purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Collaborative creation together with stakeholders
Education and training for environment / Qualified persons . . . 21
Environmental communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Environmental data

The coverage of this report
Term covered : 2008 Fiscal Year
(From April, 2008 to March, 2009)
Activities covered : Domestic activities
Organization : Iseki & Co., Ltd., affiliates, domestic
covered distributors and sales subsidiaries
Guideline used : Environmental Report Guideline
as reference (2003 and 2007 editions)by The Ministry of The Environment
Picture taken at Ikoma Highland in Miyazaki Prefecture (Field of rape blossoms)

Iseki-Matsuyama MFG. Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Iseki-Kumamoto MFG. Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Iseki-Niigata MFG. Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Iseki-Houei MFG. Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Message

Aiming to bring about a prosperous community,
constantly growing in affluence
While global warming and the depletion of energy resources have become critical global
environmental issues, it was agreed by representatives of the participating countries in thelast Toyako Environmental Summit that all countries shall unite even more closely inorder to halve the volume of greenhouse effects gasses as presented in a plan, “Cool earth
50.” Upon this agreement, it is a great challenge for us to find realistic ways of attaining a
6% reduction in total emission levels as recorded in the year 1990, starting from 2008, thefirst year of Primary Commitment Period (2008 to 2012) mentioned in the “Kyoto
Protocol.” In Japan, responsibilities imposed not only on manufacturing companies but
also on every entity have become extremely critical after an amendment of a Law
concerning the Rational Use of Energy. Meeting this challenge means the fight against
global warming must be accelerated in various fields of people’s lives through the
motivation and actions of each individual in Japan.
Since its foundation over 80 years ago, Iseki has made exertions to improve theproductivity through the promotion of agricultural streamlining and by reducing fatigue
farming work through providing agricultural machines. An effective use of bio-mass for
agriculture in which Iseki Group’s business is based allows for not only great
contributions with respect to the prevention of global warming by controlling the emissionof greenhouse effect gasses and the formation of a recycle-oriented society by utilizing
resources which had been normally disposed of as wastes, but also for regional
revitalization and an increase in job opportunities. Iseki believes that we can serve society
by tangibly improving food self sufficiency rates through the utilization of sparse planting
technology that we have been developing through improvements in agriculture andagricultural machinery, provide insight regarding the expansion of consumption such as
the local consumption of local products, and by providing information regarding dietaryeducation and the future of our food strategy.
Iseki Group recognizes that it is our social responsibility to contribute to society whichis in the stage to be recycle-oriented. We therefore position these as importantmanagement tasks among others. Our environment preservation activities were started
primarily at our manufacturing factories and they have now spread widely throughout theentire scope of our business, from headquarters to sales
subsidiaries, through the implementation of theEnvironmental Management System (EMS). From initial
product development, manufacturing, product logistics and all
the way to after-sales activities all business activities at Iseki
Group are based on a tangible target and the management
system so as to be an environment-conscious company. Iseki
continues our efforts to be of assistance in establishing a“prosperous community, constantly growing in affluence.”
We are pleased to have an opportunity to publish this 2008
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 President
support, assistance, and cooperation to make our activities
successful.
Seiichiro Gamo

Environmental Report 2009by ISEKI & CO., LTD.

2

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 22,784,000,000 (as of March 31, 2009)

Employees

Consolidated: 6,514 (as of March 31, 2009)
Manufacturing and sales of following products as our major business.
Cultivating machiney
Planting machinery
Havesting machinery
Processing machinery

Business

Others...... Tractors, Cultivators, Tillers, Lawnmowers...... Rice transplanters, Vegetable transplanters...... Combine harvesters, Binders, Harvesters, Vegetable harvesters...... Rice hullers, Dryers, Rice milling
Rice graders, Vegetable harvesting and processing machinery...... Farming implements, Spare parts, Agricultural facilities<Sales composition by product category as of March, 2009 at the end of fiscal year>< Achievement trends (consolidated)>
157.4

Net sales

161.7(billion of yen)

153.7

149.6

144.7

Ordinary income(billion of yen)

Others22%

Planting
machinery
10%Serviceparts andfarming
implements
20%

5.7
3.8
1.2
0

March
2005

March
2006

March
2007

March
2008

0.8

Cultivatingmachiney
30%

Harvesting andprocessing
machinery
18%

March
2009

<Financial statements>(As of March 31, 2009)

Summary of consolidated balance sheet
Account
Cash equivalent
Notes andaccounts receivable
Inventories
OthersAmount (in mil. JPY)

5,708
28,734
41,976
4,192

Current assets

80,611

Tangible fixed assets

79,988842

Intangible fixed assets
Investments andother assets

9,559

Fixed assets total

90,390171,002

Total assets(From April 1, 2008 to March 31, 2009)

Consolidated statement of income

Account

Amount (in mil. JPY)

Notes and accounts payable, trade
Short-term borrowings
Long-term debt
Others43,801
32,86017,80824,837
119,308
22,784
12,815
4,072
(185)
212
10,527(11)
1,479
51,694
171,002

Total liabilities
Common stock
Capital surplus
Retained earnings
Treasury stock
Net unrealized holding gain on securities
Land revaluation reserve
Foreign currency translation adjustments
Minority interests in consolidated subsidiaries
Total shareholders' equity
Total liabilities, minority interests and shareholders' equity

Note: The amount shown is the number after rounding the fractional part.

Environmental Report 2009by ISEKI & CO., LTD.

3

Account
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 and minority interests
Income taxes
Minority interests in consolidated subsidiaries
Net income

Amount (in mil. JPY)

149,601
103,736
45,86544,287
1,577
1,579
2,384
771
596
911
457
455
0
2

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

TillerInside ridge processor

Onion transplanter

Binder

Dryer

Rice huller

Weighing and separating machine

Coin-operated rice milling machine

Hydroponics facility

Environmental Report 2009by ISEKI & CO., LTD.

4

Eco vision
Environmental management

Iseki Group has determined the direction which can be the base of our “Eco vision:
Green Cycle”, and the words, “Environmental concept”, “Basic environmental
policy”, and “Environmental conduct guidelines”, best explain our principles.

*1[ Green Circle ]3A is : 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 ofa continuously growing society through activities forharmonizing nature, society, and business entities.
[ Basic environmental policy ]1. Maintain environmental management system andits 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,energy-saving, resource-saving, and purchasing green
3. Office activities considering environment
Energy-saving and resource-saving
4. Distribution and logistics considering environment
Improvement of transportation system (packaging materials, efficienttransportation), energy-saving and disposition of industrial wastes
5. Environmental education and information disclosure
Environmental education to be offered to employees, participation
in social activities and information disclosure

Environmental Report 2009by ISEKI & CO., LTD.

5

Outline of management
Environmental management

We deploy our approaches to develop the recycling-oriented and low carbon emission society
within all of our group companies.

<Promotional scheme><Environmental planning group meeting>

Entire companies within Iseki Group promote the development of recycling-oriented and low carbon emission society
by using the environment management system as a tool,
through involvement with R & D dept., Production dept.,
Logistics dept., and sales subsidiaries.

The Environment Planning Group Meeting plots out
tangible plans to be deployed in each district, provides
strategies and advice to the Environment Committee,
assists each district to deploy environmental targets
and action plans, and manages the progress of suchplans. At the same time, the Environmental Management
Office and the Product Assessment Committee, which
supports the designing of environment-friendly products,
are established to assist activities to be efficient andsuccessful.

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

The Environment Committee, whose members include thepresident as chairman and all directors, deliberates anddetermines Iseki group’s basic policies regarding theenvironment, as well as the accommodation of managementtargets, action plans, and corrective actions for criticalenvironmental issues submitted by the Environment
Planning Group Meeting.

An Executive Officer responsible for the environmental
management activities and the Environmental Management
Officer are assigned to Tokyo, Matsuyama (Tobe),
Matsuyama (Wake), Kumamoto, Niigata and sales
subsidiaries in each district. These executive officers shallbe responsible for the determination of policies and thedeployment of action plans in each district.

[ Environmental Management Organization ]CEO

Environmental committee

Environment management office

Sales subsidiaries

Environmental planning group meeting

Product assessment workshop

Tokyo district

Matsuyama (Tobe) district

Matsuyama (Wake) district

Kumamoto district

Niigata district

CEO ofeach company

Director assigned toGeneral Affairs

Environment
manager

Environment
manager

Chief operation officer
development &production division

CEO,
Iseki-Matsuyama
MFG. Co., Ltd.

CEO,
Iseki-Kumamoto
MFG. Co., Ltd.

CEO,
Iseki-Niigata
MFG. Co., Ltd.

Environment
manager

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

Environment
manager

Environment
manager

Environmental
management
committee

Environmental
management
committee

Environment
manager

Environment
promotion
councilEnvironment
promotion
councilEnvironmental
management
committee

Environmental
management
committee

Environmental Report 2009by ISEKI & CO., LTD.

6

Environmental management system
Environmental management[ Development of a management system for development of recycle-oriented society ]Iseki Group has already implemented the Environmental Management System inaccordance with the global standard, ISO14001, and the environment preservation
activity assessment program, EA-21, under supervision of the Ministry of theEnvironment and continues environment preservation activities for development ofrecycling-oriented and low carbon emission society. The certified companies ineach district take responsibility for deploying activities which are most suitable forboth the regional characteristics of community and the business activities of Iseki.
We apply the process of “Plan, Do, Check and Action”, which is the basis of theenvironment preservation activities in accordance with ISO14001 and EA-21, in an
efficient manner so as to spiral up the development of recycling-oriented society.

Continuous
improvement

Plan
ActionBasic policy

Do

Check

< Certified environment control system of Iseki group>
As Iseki Group companies were certified the global standard ISO14001 and EA-21 listed below, we support local communities in developing
recycling-oriented and low carbon emission societies by playing active roles in environmental preservation activities using these certifications
as tools of our activities.
Certification

ISO

Business entity

Major business

Registration number

Date of certification
February 26, 1999

Iseki-Matsuyama MFG. Co., Ltd.

Manufacturing tractors, small combined harvesters, engines, and dryers

JQA-EM0341

Iseki-Kumamoto MFG. Co., Ltd.

Manufacturing large combined harvesters and multi-purpose combined harvesters

JQA-EM1382

March 9, 2001

Iseki-Niigata MFG. Co., Ltd.

Manufacturing rice transplanters and rice hullers

JQA-EM3313

August 1, 2003

Iseki-Houei MFG. Co., Ltd.

Manufacturing cultivators, tillers, lawnmowers, riding mowers

JQA-EM0341

October 1, 2003

Iseki & Co., Ltd. HQ

Sales of agricultural machinery

JQA-EM5761

March 23, 2007

Iseki-Ueki MFG. Co., Ltd.

Manufacturing of precision parts machining, stamping and welding

IGES-0000645

March 8, 2006

Iseki Hokkaido Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000708

March 30, 2006

Iseki Tohoku Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000636

March 6, 2006

Iseki Kanto Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0003944

July 31, 2009

Gunma Iseki Sales Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000699

March 30, 2006

Iseki Shinetsu Co., Ltd. Nagano Office

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000820

June 21, 2006

Iseki Shinetsu Co., Ltd. Niigata Office

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000768

May 22, 2006

Iseki Hokuriku Co., ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000780

May 25, 2006

Iseki Tokai Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000776

May 25, 2006

Mie Iseki Sales Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000771

May 25, 2006

Iseki Kansai Co., Ltd. Shiga & Kyoto Office

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000763

May 22, 2006

Iseki Kansai Co., Ltd. Hyogo Office

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000614

February 17, 2006

Nara Iseki Sales Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000673

March 28, 2006

Iseki Chugoku Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000898

August 2, 2006

Iseki Shikoku Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000670

March 28, 2006

Iseki Kyushu Co., Ltd.

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000739

May 17, 2006

Agrip Co., Ltd. Kanto Office

Sales and servicing of agricultural machinery and sales of agricultural materials

IGES-0000774

May 25, 2006

14001

EA-21

<Environmental auditing>
Iseki-Matsuyama & Iseki-Houei MFG. Co., Ltd.

Iseki-Kumamoto MFG. Co., Ltd.

Iseki-Niigata MFG. Co., Ltd.

FY2008

Total number of
departments
auditedNonconformance

Internal environmental auditing

60

0

8

28

0

7

16

0

2

External regular auditing

19

0

11

12

0

6

16

0

7

Improvement Total number ofopportunities departments
auditedNonconformance

Improvement Total number ofopportunities departments
auditedIseki carries out internal environmental auditing and regular auditingby external institutions in order to assess if the Environment
Management System functions properly and effectively, as well as
to ascertain whether approaches to preserve the environment areappropriate. In FY2008, there were no reports of nonconformanceafter both internal environmental auditing and external regularNonconformance

Iseki Co., Ltd. HQ offices

Improvement Total number ofopportunities departments
auditedNonconformance

Improvement
opportunities

8

0

9

9

0

4

auditing. However, the result of auditing is based upon the matterssampled for auditing and not the grounds showing that every matter
in Iseki has been carried out perfectly. Iseki, therefore, will continue
our follow up on the subjects and utilize every opportunity to
conduct improvements.

Environmental Report 2009by ISEKI & CO., LTD.

7

Mid-term and long-term environmental targets and results of the FY2008
Environmental management

Iseki group aims to define the mid-term and long-term environmental targets andachieve our environment target and object by 2010.
Hereby, we report on the results of our major activities in FY2008.
Item

Eco Factory
Item

Eco Products
Item

Reinforcement of Environment
Management Basis
Item

Mid-term and long-term environment targets

Accomplishments in FY2008

Evaluation

Relevant
pages

Prevention of
global warming

Reduced the volume ofenergy-generated CO2 emission for
the total production volume by 15%
comparing to the volume in FY1997

The volume of CO2 emission for the total production volume was reduced by 15% of thedatum year. Even though the production volume increased from the last year, we
succeeded in reducing the total volume of emission.

12

Reduction ofwater used

Reduced the volume of water used
for the total production volume by
30% or more compared to thevolume in FY1997

The volume of water used for the total production volume decreased by 27% of the datum
year although we started the in-house manufacturing of parts which had been
outsourced. As a result of renovation of the water supply piping, a steep reduction fromthe last year was achieved. From now, the effect of the utility equipment improvement
plan will be successfully realized and the target of FY2010 will be achieved.

13

Reduction ofwastesReduced the final volume of wastes
for the total production volume by
70% or more compared to thevolume in FY1997

The final volume of wastes for the total production volume was 78% lower than thedatum year and 12% lower than the last year as a result of promotion of reuse andrecycling, as well as segregation of wastes.

13

Chemical
substance
control

Reduced the volume of controlled
substances for the total production
volume by 20% or more comparedto the use in FY2001

The emission of controlled chemical substances for the total production volume was only
12% lower than the datum year and 9% lower than the last year as the use of paint andsolvents increased due to an increase of production volume. It seems difficult to achieve
the target in the FY2010, therefore, we will continue our activities to further reduce suchchemical substances including VOC. VOC: Volatile Organic Compounds (causative
substance of photochemical smog and allergy)

14

Mid-term and long-term environment targets

Accomplishments in FY2008

Evaluation

Relevantpages

Approach toenvironmentfriendly
designing

Promotion and enlarging theapplication of environment-friendly
designing

We dealt with the reduction of environment stresses by implementing the environmentfriendly designing assessment at each step of DR (design review) and by reducing thenumber of components, the total weight of machinery, and harmful substances. We are now
mainly working on the reduction of harmful heavy metals such as hexavalent-chrome andlead.
To reduce the air pollutants discharged by diesel engines using an extra-high pressure fuelinjection system, Iseki have developed environment-conscious diesel engines which emit
less air pollutants. In addition to meeting the emission control of Japan and other countries
in the world, our engines comply with the agricultural industry’s voluntary controls which are
not legally binding.

Promotion ofwaste products
recycle system

Promotion of effective use ofresources

In order to realize zero emission, Iseki further promotes the recycling of waste products inorder to accelerate “3R” principle (Restriction of wastes, Reuse and Recycling).

12

Promotion ofpurchasing
green

Promoted purchasing green throughgood relationships with business
partners

The overall ratio of purchasing green including office supplies in the entire company was
96%. The ratio of the purchasing green for production parts and materials was 52%. Iseki
will assist our business partners in developing the environmental management system.

20

Support ofnature-friendly
agriculture

Reduction of air pollutants includedin the diesel engine emission gas

We aim to realize the low carbon emission society through a control of greenhouse effectgasses included in the emissions from a diesel engine.

17-19

Mid-term and long-term environment targets
Environmental
management
systemISO14001 certificate updating /EA21 certificate updating at
each manufacturing plant

Entrenching ofenvironmental
accounting

Introduction of environmental
accounting and up-grading

Environmentalrisk
management

Strictly obey laws and regulations /Predict potential risks andstrengthen the management
system in order to prevent theactualization of such risks strictly

Evaluation

Accomplishments in FY2008

14-16

Relevantpages

The headquarter departments and manufacturing plants promote the activities which utilize
ISO14001 in most efficient ways.
In order to promote the approaches that will realize a recycling-oriented and low carbon
emission society, Iseki’s Group, including sales companies, have accelerated to be audited
on a regular basis while putting the environment management system in practice.

7

We have introduced and deployed an environmental accounting system as an index of ourenvironment preservation activities. We will continue to check if the environmental
preservation effects are comparable for the investment in order to prevent the global
warming.

9

Iseki cleared all self-directed control standards which are more stringent than the criteria oflegal measurement requirements on top of the legal compliance rules. From now, we will
promote the matters to be satisfied by the business establishments according to theprovisions of Amended Energy-saving Law which specifies the changes from plant basis tocompany basis, as well as strengthening of the management structure.
Iseki implemented emergency training on a regular basis at each business establishment tobe able to respond to emergency cases.

9

Mid-term and long-term environment targets

Accomplishments in FY2008

Evaluation

Relevant
pages

Collaborative Creation
Together with Stakeholders

Environmental
education

Raising employees’ environmental
consciousness / offering training to
improve the environment
preservation techniques

We strived to improve the capability of internal auditors through training by external
educational institutes while taking necessary measures for aging of such qualified
auditors.
We recommended employees to have the official qualifications needed to deal with
Amended Energy-saving Law.
We trained and assigned new internal environment auditors in order to maintain theenvironmental management system properly.

21

Environmental
communication

Promotion of volunteer activities /enhancement of collaboration with
community

The renewal of Matsuyama Exhibition Pavilion was completed. Iseki had accepted andarranged the factory tours for elementary school students and general public in order tocommunicate about the importance of agriculture and agricultural machinery.
Iseki’s employees joined the environment volunteer activities such as clean-up campaignof the community surrounding each business establishment.

22

Evaluation criteria :Environmental Report 2009by ISEKI & CO., LTD.

8

: Achieved: Nearly achieved: Not achieved

Environmental accounting
Environmental management
Iseki Group deals with the use of aggregated costs used for theenvironment preservation activities for our management decisions
relevant to environment preservation, as well as for a guideline ofvaluation of business through information disclosures to the public. The
implementation of environmental accounting started in FY2004. The
amount invested for environment preservation costs (pollution prevention,

environment preservation, and resource recycling costs) in 2008 was
167,000,000 JPY. The total amount of expenses was 643,000,000 JPY
that we made through some investments into diesel engine emission gas
and maintenance and improvement of the environmental management
system.

Environment preservation cost
Category

Major programs(1) Cost spent in the business area-

Breakdown

Pollution prevention cost

Sewage treatment

Environment preservation cost

Inverter installation

Resource recycling cost

Waste treatment

Economic effects resulted from the environment preservation measures
Amount ofinvestment(in mil. JPY)

Expenses(in mil. JPY)

138.0
89.0
44.0
4.9
0.0

78.3
28.0
1.9
48.4
31.2

0.0

48.8

28.7
0.0
0.0
166.7

478.7
5.6
0.0
642.7

(2) Cost required at previous and later stages Green purchasing(3) Control activity cost

Maintenance of environment
management system(4) Research and development cost

Corresponding to emission gas regulation(5) Community activity cost

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.)
Period of data: April, 2008 to March, 2009

Details of effectAmount (in mil. JPY)

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

2.0
49.6
16.6
68.2

(2) Reduction of environmental stress substances(3) Reduction of energy consumption
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 68,200,000 JPY. The physical effect was the
reduction of CO2 emission by 1,470 tons, reduction ofwater consumption by 138,000 tons, and recycling ofwastes by 4,310 tons.

Environmental risk management
Environmental management[ Actions to comply with Antipollution Laws ]<Establishment of self-directed standards and management in the company>
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 as a result of activities in 2008.

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

Volume of suspended substances (SS)
Water
qualityAir
Dioxin

Unit

Regulatory
standards

Self-directed
control
standards

600

500

600

500

mg/L

Volume of biochemical oxygen demand (BOD)

Iseki-Kumamoto MFG Co., Ltd.
Regulatory
standards

Self-directed
control
standards

3

200

40

1.1

25

8

Resultin 2008

Iseki-Niigata MFG Co., Ltd.
Regulatory
standards

Self-directed
control
standards

3

90

45

1

60

30

6

Resultin 2008

Resultin 20083

n-hexane (Mineral oil)

ppm

5

4

Less than 1

5.0

2.4

Less than 0.5

5.0

5.0

1.0

Particulate

g/m3N

0.30

0.18

Less than 0.01

0.30

0.08

Less than 0.01

0.20

0.10

Less than 0.01

Nitrogen oxide (NOx)

ppm

180

150

62

250

200

66

230

150

52

ng-TEQ/m3N

5.0

3.0

1.3

-

-

-

-

-

-

Emission gas- : shows standard N/A or not applicable machines<Frequency of environment data measurement>
Machine, equipment, and place
Industrial effluent
Casting melt furnace
BoilerWaste incinerator
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

Once a month

Twice a year--

Twice a year

Twice a year

Once a year

Water quality
Air
DioxinOnce a year

-

-

Noise

Twice a year

Once a year-

Vibration

Twice a year-

- : shows standard N/A or not applicable machines

Environmental Report 2009by ISEKI & CO., LTD.

9

Environmental risk management[ Examples of air pollution prevention and control ]Environmental management[ Control to inhibit the emission of GHG (Global Greenhouse Gas) ]< Reduction of the loss of compressed air by using a dehumidifying facility with a de-oiling function (Hygro-master) >Iseki-Matsuyama MFG Co., Ltd., uses compressed air as asource of energy to operate various equipment and tools. The aircompressed by the compressor includes moisture and oil
resulting in the need to drain water from the air piping every day.
This process is imperative for manufacturing activities in order tomaintain quality compressed air does not contain moisture or oil.
Our new facility, the “Hygro-master” having de-humidifying andde-oiling functions”, has contributed in eliminating the need fordaily draining operations as we started to use the hygro-masterto dehumidify and de-oil compressed air before feeding the air tovarious locations required in manufacturing. This has resulted ina reduction of 441,000kWh per year which is equivalent to a
reduction of 167 ton of CO2, saving approximately 3 million yen
in the cost of electricity.

Economizer
Coolingabsorption tower
Cooling wateroutletAir outle
Cooling tower

Cooling Cooling
water
water
circulation inletpump

Air inlet
Auto drain
valveAuto drain
valve

Automaticdraining

Automaticdraining

Layout of hygro-master facility[ Control to inhibit the emission of GHG (Global Greenhouse Gas) ]< Reduction of CO emissions from boilers >2Iseki-Kumamoto MFG Co., Ltd., steam is used as the heatsource in the manufacturing processes, and for air-conditioning
and hot water supply. The boiler that we recently purchased isequipped with an inverter and is capable of compensating therevolution when there is a change in the ambient and air supply
temperatures in summer time and winter time, maintaining stablecombustion by keeping the appropriate air ratio, and maintaininga highly efficient operation rate and clean emission gasses.
The boiler efficiency was improved by approximately 15% assmall through-flow boilers were introduced, allowing for thecontrol of the number of boilers used depending on the volume ofsteam required. As a result of fuel-savings from the boilers, wewere able to contribute towards the prevention of global warming
by reducing the CO2 emission by 127 tons. This is equivalent tothe savings of approximately 4 million yen in fuel costs.

Through-flow boiler

Environmental Report 2009by ISEKI & CO., LTD.

10

Environmental risk management[ Examples of air pollution prevention and control ]Environmental management[ Control to inhibit the emission of GHG (Global Greenhouse Gas) ]< Reduction of environmentally stressful substances by renewing a water cooling and heating machine situated in the office >The current water cooling and heating machine situated in Iseki & Co., Ltd. Tobe Office became inefficient after a long period of use and thus
its capacity for cooling and heating water decreased. A significant improvement of its cooling and heating capacity was not expected even afteran overhaul; therefore, a new high energy-saving type of machine categorized in the top runner (a campaign to stimulate energy-savings) was
purchased as equipment for environmental innovation. The type purchased at this time meets COP1.2*1 of JIS, and thus reductions of 5% in
the annual use of electricity and 18% in the annual fuel cost were achieved in comparison to the previous machine. These volumes of reduction
to electricity and fuel are equivalent to 393GJ of energy, having the same reduction effect as approximately 10,000 liters of crude oil.
As a result, the emissions of CO2, a greenhouse effect gas, were reduced by 15%, equivalent to 27 tons-CO2. The total amount of savings onelectricity and fuel costs per year is approximately 750,000 yen.
Note 1: COP : Coefficient of Performance, showing the ratio of air-conditioning capacity (KW) per consumed energy (KW).

CO 2 emission

Energy (GJ)

200

2,500

160

2,000

120

1,500

80

1,000

Existing equipment
New equipment

40
0

ton

Existing equipment
New equipment

5000Electricity

Fuel

Total

Electricity

Fuel

Total

< Operation premises>
・ Operation hours : 11.5 hrs. per day
・ Cooling period : 88 days in average from June to October・ Heating period : 88 days in average from December to March< Cooling and heating machine>

Operation panel

Combustion unit

Environmental Report 2009by ISEKI & CO., LTD.

11

Eco factory

Promotion of energy saving[ Preventing global warming ]Environmental performance[ Reduction of energy use in the plant ]Iseki Group has been striving to reduce energy consumption mainly
in manufacturing plants where a large amount of electricity and fuel isconsumed by reducing energy consumption required for production
activities, by maximizing the efficient operation of all machines and40,000facility, and by replacing existing machines and equipment with thoseof energy-saving types. The total volume of CO2 emissions was wellcontrolled that the volume in FY2008 was 9% lower than the previous
year even though the production volume increased.

Volume of CO2 emissions resulted byusing energy

60

35,000Volume of CO2 emissions resulted byusing energy (production volume basis)50

30,00040

25,00020,00030

15,000

Houei
Niigata
Kumamoto
Matsuyama

10,000
5,000
0ton
1997

2005

2006

2007

2008

20
10
0ton
1997

2005

2006

2007

2008

[ Reduction of volume of waste products for final treatment ]<Application of waste products recycling system>
Since the latter half of 2007, Iseki Group has implemented andapplied an industrial waste products recycling system in order toaccelerate the 3R principle (restriction of wastes, reuse andrecycling) which has been promoted by the sales subsidiaries for theformation of recycling-oriented society and the promotion of recycling
waste products generated as a result of business activities. The
annual result of our activities is shown hereunder. From now on, we
will establish tangible targets, for example by comparing with data of
the previous year, for better approaches in recycling. Iseki will also

use this recycling route in an effective manner so that other industrial
wastes created by reasons other than the scrapping of products canbe collected together with the scraps for effective recycling. We
believe that the recycling of both scrap and industrial waste will
greatly contribute towards the formation of low carbon emission
society. Iseki has been positively adhering to the new system called
the Manifest System in which notification of the disposal of industrial
wastes to government authorities has been required since 2008 due
to an amendment of Energy Saving Laws.

Submission of Manifest (Industrial Waste Control Boucher) Due date: June 30, 2008

Environmental Report 2009by ISEKI & CO., LTD.

12

Eco factory[ Preserving water resources ]Promotion of energy saving

Environmental performance[ Reduction of volume of water used ]According to the installation of thewater circulation facility and implementation of countermeasures for waterleakage, Iseki strived to reduce thevolume of water used. The volume ofwater used in FY2008 was reduced by
26% from the previous year, by 27%
from the datum year in per production
volume. The “Century of water” is theword expressing the 21st Century. Iseki
will continue our efforts in reducing thevolume of water used.

Volume of water used
80

Volume of water used(in per production volume)

1,200
1,000

60
800
600

40

Houei
Niigata
Kumamoto
Matsuyama

20

in 10,000ton
1997

2005

2006

2007

400
200
0ton

2008

1997

2005

2006

2007

2008

Eco factory

Promotion of energy saving[ Reducing total material input ]Environmental performance[ Reduction of total volume of materials used for production ]Iseki-Matsuyama MFG Co., Ltd. uses the aggregatedamount of total materials used as an important index in the
reduction of indirect greenhouse effect gas emissions. In
order to reduce the indirect generation of greenhouseeffect gasses through a reduction in the total volume ofmaterials used and by promoting energy-saving activities,
we calculated the total volume of materials used for
production. This included all raw materials, indirect
production materials, as well as all outsourced andpurchased parts. In comparison to FY2007, we increased
the total volume of materials used in the FY2008 as the
production volume increased. However, the total volume
of materials per production volume was unchanged.

Total volume of materials
used for production

50,000Total volume of materials used for production(in per production volume)120

40,00080
30,00020,00040
10,000
0ton

0ton
2005

2006

2007

2008

2005

2006

2007

2008

Eco factory

Reduction of industrial wastes[ 3R of production processes ]Environmental performance[ Reduction of wastes ]To contribute towards the acceleration of a recycling-oriented society,
Iseki made best efforts in recycling and reusing resources by reducing
the total volume of wastes, reusing them and recycling the wastes atfour manufacturing plants. In FY2008, Iseki increased the volume ofwastes by 6% from the previous year, at the same time, per production
volume was up 3% compared to the previous year. This happened
because of an increase of production volume. The final volume of
Total volume of wastes

wastes reduced this year such as by landfilling was 1% less than lastyear and there was a 78% drop in the volume of per production volume
compared to the datum year. As a result, our recycling rate for the total
volume of wastes improved to 88%. Now and in the future, Iseki will takefurther approaches towards the inhibition, reuse, and stringent segregation of wastes, as well as the promotion of recycling in accordance withthe businesses of each manufacturing plant for zero emission.

Volume of final wastes

Rate of recycling

15,000

6,000

100

12,000

5,000

80

4,000
9,000

60
3,000

6,000

Houei
Niigata

3,000

Kumamoto
Matsuyama

0ton
1997

2005

2006

2007

2008

Houei
Niigata
Kumamoto
Matsuyama

2,000
1,000
0ton
1997

2005

2006

Environmental Report 2009by ISEKI & CO., LTD.

13

2007

2008

40
20
0％
1997

2005

2006

2007

2008

Eco factory

Optimal control and reduction of use of chemical substances
Environmental performance[ Optimal control of chemical substances ]The volume of use, emission, and transportation of
Category-1 Chemical Substances (1 ton or more)
stipulated by PRTR law is as follows. The volume ofuse for the total production volume in FY2008
increased slightly while the volume of per unit ofproduction dropped by 9% in comparison to theprevious year as materials used were replaced withthose containing less harmful chemical substances
controlled by law. From now and in the future, Iseki
will closely monitor the volume of use and reductionof VOC (Volatile Organic Compounds) use throughappropriate control and management of suchchemical substances.

Volume of chemical substances use
200

Volume of chemical substances use(in per total production volume)

0.5
0.4

150

0.3
100
0.2

Houei
Niigata
Kumamoto
Matsuyama

50

0ton
2001

2005

2006

2007

2008

0.1
0ton
2001

2005

2006

2007

[ Volume of use of substances controlled by PRTR law

2008(unit : ton)

FY2007

FY2001

Matsuyama Kumamoto Niigata

Houei

Total

Houei

Total

Houei

Total

Xylene

37.4

22.7

12.8

0.0

72.8

37.0

22.9

13.3

0.0

73.2

36.6

22.0

14.3

0.0

72.9

Toluene

33.3

4.4

5.2

0.0

42.8

15.4

2.9

3.2

0.0

21.6

17.7

1.8

3.7

0.0

23.2

Ethyl benzene

36.4

12.2

10.1

0.0

58.7

34.3

12.5

10.7

0.0

57.4

35.3

11.8

11.7

0.0

58.7

Water-soluble zinc compound

0.0

1.8

0.0

0.0

1.8

0.0

1.5

0.1

0.0

1.5

0.3

2.3

0.0

0.0

2.6

Dichloromethane

18.8

0.0

0.0

0.0

18.8

8.9

0.0

0.0

0.0

8.9

5.2

0.0

0.0

0.0

5.2

1, 3, 5-Trimethylbenzen

0.9

0.0

0.2

0.0

1.1

1.1

0.0

0.1

0.0

1.3

1.2

0.3

0.2

0.0

1.6

126.8

41.0

28.2

0.0

196.0

96.7

39.8

27.4

0.0

163.9

96.2

38.1

29.8

0.0

164.1

Matsuyama Kumamoto Niigata

Total

Matsuyama Kumamoto Niigata

FY2008Period of data: April, 2008 to March, 2009

Eco products

Approach to environment-friendly designing
Environmental performance[ Approach to weight reduction through weight-saving and down-sizing ]to reduce weight of small combine harvesters >〈小型コンバインの重量低減への取り組み〉< Approaches
According to Iseki’s own data, Iseki has succeeded in reducing the weight of HVF328
combined harvester by 26.5% while improving the working performance by 10%
compared to a full-scale 3-row combined harvester. Losses resulting from the stickingof rice grains were reduced and a high efficiency was achieved by installing a new ricegrain collection chamber to the harvester without changing the size of its threshingunit. The HVF328 achieves a performance efficient equivalent to that of a full-scale
3-row combined harvester even after succeeding in down-sizing and having savings
in weight to the extent of a 2-row combined harvester. This down-sizing makes
possible small turns similar to those achieved by a 2-row combined harvester. As aresult, the degree of damage of farming fields with crawlers is lowered. Both weightsavings and an improvement in fuel consumption are made possible and the
combined harvester has been well received.

Sticking rice grains: Loss
Chopped straws + corns

Weight-saving
100
80
60
40
20
Sticking rice grains : Collected into a rice grain collection chamber0

Full-scal
3-row type

HVF328A loss resulting from sticking rice grains is a phenomenon that the grains stayon straws again after once they are threshed.

The index shows the comparison
when the full-scal 3-row type
is considered to be 100.
Environmental Report 2009by ISEKI & CO., LTD.

14

Eco products

Approach to environment-friendly designing
Environmental performance< Approach to low fuel consumption by using an auto acceleration mechanism >The auto acceleration mechanism enables an efficient planting
operation, therefore, the engine revolutions are controlled optimallyby selecting any desired speed with the speed lever. Noise and theconsumption of fuel can be reduced as the engine automatically idles
when the machine is not in operation, such as the time whenseedlings are being fed onto the machine.
Planting can be done without gunning a machine motor as the engine
revolution can be optimized in connection with the machine speed.
Although fuel consumption varies by type and model of ricetransplanter, fuel consumption was cut down 6% to 11% due to theuse of this mechanism. At the same time, the reduction of CO2
emissions per 10a was 140g to 230g depending on the type andmodel of rice transplanters.

Fuel consumption by type120

Automatic
Non-automatic

110
100
90
80
70
60
Type A

Type B

Type CType D< Approach to environment pollution prevention by spraying proper amount of chemical fertilizers >Currently farmers in Japan are aging rapidly and thus the size of one
farm business unit, such as farming groups and farming
co-operations, is expanded. This is the reason why easy-handlingfertilizing machines with the ability to spray fertilizers precisely andevenly are in demand. Also from the view point of environmental
protection, spraying of proper amount of fertilizers will protect rivers
from nutrient enrichment and mitigate the pollution of undergroundwater with nitrate salt. In the case of Iseki’s traditional boom tabular(grain spreader), it was necessary to set the volume of fertilization
manually depending on the selected speed of the spreader and by
utilizing the experience of volume setting depending on the hardnessof the field. As already mentioned, this operation required quite a lotof skill and experience. The volume of fertilizer sprayed onto the 10aof fields is not accurate as the volume needs to be controlled visuallyby checking the scale showing the remaining amount of fertilizer. Thistime, the boom tabular is marketed as a product created through theaccomplishment of collaborative research between Iseki and public
institutions and developed together with our business partners.
The employment of microcomputer-controlled spraying interlockedwith the machine speed and the use of easily visible liquid crystal
display (LCD) device allow for the possibility of the new productspraying the target volume of fertilizer by simply setting the volume offertilizer by using the LCD device. This LCD can be used to check thevolume sprayed whenever it is necessary to check, therefore, thehandling convenience has been greatly improved and environmental
pollution resulting from spraying too many chemical fertilizers has
been mitigated. The use of microcomputers will contribute to theenvironment preservation as it can control the volume of fertilizers
appropriately, precisely, and evenly. The precise and even application will also assist in the quality of cultivated crops while improving
the quality of the paddy rice.

Microcomputer display

New boom tumbler (lHB200LA)

Environmental Report 2009by ISEKI & CO., LTD.

15

Eco products

Approach to environment-friendly designing
Environmental performance< Approach to environment-friendly high technology greenhouse >Now, plant factories are drawing the attention of society as they canbe the solution for the stable production of safe food as well as thecreation of employment in suburban areas. Iseki is devoting itself toresearch on “high technology green house” using solar power incollaboration with Ehime University. In this research, we do notcontrol the conditions of plants, ambient temperature, or soil temperature, instead we use the concept of the “Speaking Plant Approach”
which is a concept that determines the information that plants directlytransmit (such as a degree of chlorophyll fluorescence*1 and a leaf
temperature).
We developed a “robot for diagnosis of plant growth” which makes
diagnoses on the information received without touching or damaging
the plants. (2008 Region regeneration consortium program and 2009
Regional innovation program of the Shikoku Bureau of Economy,
Trade, & Industry) The robot autonomously travels between cultivation beds and passages according to the previously determined
procedure. All of the machines used in the greenhouse are electricmotor-driven machines, therefore, they do not emit any harmful
gasses. The greenhouses are truly environment-friendly factories as
they emit no greenhouse effects gasses.
Note 1: The “degree of chlorophyll fluorescence from chlorophyll” provides us
with a degree of photosynthesis activity. The chlorophyll fluorescenceis emitted when exposed under a blue LED.

High technology greenhouse and robot for diagnosis of plant growth< Approach to the use of biomass boilers for global warming preventive nutrient solution facility>
Iseki considers that agriculture which is friendly to the global environment is an important task of today and that we need to address toprevent the earth warming. Recently we have introduced anddelivered biomass heating equipment to our customer.
In November, 2008, we delivered biomass heating equipment to one
farmer in Ohzu City, Ehime Prefecture for the installation of theequipment in an existing greenhouse. The existing heat sources of
the greenhouse had been fuel oil boilers, two of these boilers were
replaced with biomass boilers. Biomass fuel is a carbon neutral*1
type of fuel for heaters using dried pulverized wood chips that havebeen re-solidified and then made into pellets. The wooden pellets we
use at this time are made from thinned woods and formwork wastes
from construction sites and are mainly produced by construction
companies in nearby areas. These are substituting energy generated
by burning oil; this is an effective use of timber resources. The timber
which absorbs carbon dioxide (CO2) in the air is the raw material thatis used, therefore, it is one of earth-friendly fuels. When compared tothe emissions from fuel oil boilers, the emissions from the biomass
boilers include less harmful substances, therefore, it is anenvironmentally-sound facility that is contributing towards the preservation of the environment.

Boiler room

Note 1: Carbon Neutral refers to a situation in which the volume of carbon
dioxide (CO2) emission and absorption is balanced perfectly andbecome zero within the lifecycle. For example, the volume of CO2
absorbed through photosynthesis during a growing stage of a tree
and the volume of CO2 emitted by the burning the tree balance out.

Burning burner

Biomass fuel tank

Environmental Report 2009by ISEKI & CO., LTD.

16

Eco products

Support to promote environment-friendly agriculture
Environmental performance< Approach to the reduction of air pollutants from diesel engines >Diesel engines are widely used as the main source of power for agricultural machinery, such as tractors and combined harvesters. They arealso the center issue in efficient agricultural production which Iseki Group has been dealing with as a company program. Currently, in order toprevent the global-wide issue of global warming, the reduction of CO2 emissions which are responsible for a large portion of greenhouse effectgasses is an especially urgent task from the view point of “environmental consciousness.”

However, since diesel engines emit lower volumes of CO2 per unit ofoutput in comparison to gasoline engines they are utilized positively
and widely considered to be a more environment-friendly source ofpower for vehicles, including passenger cars mainly in Europe. Dueto these characteristics of diesel engines, they play an integral part inindustrial fields including agricultural machinery.
Currently, diesel engine development is facing difficulty as it is essential not only to improve fuel consumption efficiency but also to clarify
the emission gas criteria both in Japan and the rest of the world while
the criteria for such emission gasses becomes more severe thanever. Iseki aims to realize efficient, low cost, and environment-friendly
agriculture by multi-functionalizing while offering high efficiency
equipment and adding values such as enhanced functionality andreliability.
As this time Iseki has developed a fully electronic-controlled diesel
engine equipped with cutting-edge technologies including a common
rail system, allowing for a broad improvement of engine functionality
by considerably reducing the emissions of PM and NOx. Consequently, the tertiary level of domestic and global emissions requirements was achieved while improving the fuel consumption, noiselevel, and vibration level in comparison to existing machines.

Engine meeting the emission regulations

From the conventional tractors and combined harvesters with diesel engines to recent rice transplanters, the technologies for large riding
machines have been advanced and improved and thus they have realized gains in lower levels of noise and vibration, as well as a light-weight
operation. Such rice transplanters with diesel engines have been very well received in the market.

TractorRice transplanter

Combined harvester

Environmental Report 2009by ISEKI & CO., LTD.

17

Eco products

Support to promote environment-friendly agriculture
Environmental performance<Approach to reduction of agricultural chemicals by adopting sparse planting>Sparse planting is a cultivation method in which standing space isincreased to twice as much as a conventional space. 37 stubbles(planted with a spacing of 30x30cm) will be planted in a space of tsubo(3.3m2). The standard spacing is 18cm x 30cm, which totals about 60
stubbles in one tsubo (3.3m2).
Sparse planting sufficiently exerts vital energy and potential that rice
pants originally have, and an equivalent amount of crops can be raised
as those planted with standard spacing. An implement for 37 stubbles
for sparse planting is standard equipment for all series of riding ricetransplanters from 4-row types to 10-row types. As a result, following
environment-friendly effects shown below, in addition to which a
reduction in the use of agricultural chemicals can be expected.

<Effect on the aspect of the environment>(1) Rice planting 37 times per 3.3m2 requires half of the numberof seedling boxes required for conventional planting,therefore, the volume agriculture chemicals used can be
reduced by approximately 50%.
(2) As only a half of the number of seedling boxes compared toconventional planting are required, the space for seedlingraising can also be reduced by one half, resulting in a
reduction in the time needed for control and a reduction in
the volume of water used.
(3) As the number of seedling boxes can be a half of conventional seedling rising, the transportation frequency can be
reduced as well, allowing for a reduction in fuel used.

Sparse rice planting
37 times per 3.3m2

（g）
1,200

Volume of agricultural chemicals used

1,000
800
600
400
200
0
Conventional
sparse planting（Boxes）
25

Sparserice planting
42 times per 3.3m 2

Sparserice planting
37 times per 3.3m 2

The number of seedling boxes used

20
15
10
5
0
Conventional
sparse planting

Sparseplanting

Environmental Report 2009by ISEKI & CO., LTD.

18

Sparserice planting
42 times per 3.3m 2

Sparserice planting
37 times per 3.3m 2

Eco products

Support to promote environment-friendly agriculture
Environmental performance< Approach to low-cost agriculture by reducing the volume of applied fertilizers and agricultural chemicals >In conjunction with the National Agricultural Research Center Iseki
has developed significantly improved application technologies whichenable a sharp reduction in fertilizers and agricultural chemicals
compared to the volume of those using the conventional technology.
The conventional method was to spread fertilizers and agriculturalchemicals on the entire surface of a field before tilling, and then thelists were made and the seedlings were transplanted. This was not
such an effective method as environmental pollution could be caused
as fertilizers and agricultural chemicals remain in the gutter andbecome built up without being used or are drained together with
rainfall.
The technology that we have invented at this time enables theapplication of fertilizers and agricultural chemicals to only the areas
where they are effective to crops because of the function of agitation
pawls. Verification tests have demonstrated that the volume offertilizer could be reduced by 30%. Although the volume of agricultural chemicals applied was reduced by 60%, the volume and qualityof crops was maintained to almost the same level as that of conventional panting. Furthermore, as fertilizers are not applied to thegutters, the growth of weeds was reduced and lower cost agriculture
was realized as the time normally needed for weeding and fuel costs
were saved. This technology was chosen as one of top 10 topics of2008 Agriculture, Forestry and Fisheries Researches and wasawarded the 2009 Innovative Agricultural Technology Award.

Inside ridge processor

planting position

Area of mixture of fertilizer
and agricultural chemical< Approach to reduction of volume of agricultural chemicals used for treatment of paddy seeds >Hot-water disinfection is a “technology to prevent diseases anddamages by disinfecting the paddy seeds by soaking them in a 60 °C
hot water for 10 minutes.” This technique is drawing the attention of
the industry as it is one of disinfection methods which can replacecurrent disinfection procedures in which agricultural chemicals arebeing used, as the industry is seeking for the preventive techniques
using less agricultural chemicals in consideration of the preservationof the environment. Hot water disinfection does not use disinfecting
chemicals for the disinfection of paddy seeds. Because of this, theprocess is environment-friendly in addition to other advantages, suchas the easy disposition of agricultural chemicals and reduction in theuse of synthetic agricultural chemicals required for the certification of
specially-cultivated agricultural products.
The facility cost for this equipment is very reasonable since theexisting seed soaking baths can be reused. Furthermore, the timerequired for a large amount of seed disinfection has been cut downfrom the paddy seeds hot-water disinfection facility sold last year.
From now on, we will establish a technology which contributes to afurther reduction in agricultural chemicals in order to reduce environmental stresses.

Hot-water disinfection facility with a seed bath

Hot-water disinfection facility

Environmental Report 2009by ISEKI & CO., LTD.

19

Eco products

Green purchase
Environmental performance<Green purchase of office suppliers>
We have established the green standards
for paper and 14 other categories ofcommercialized commodities such as
office suppliers
andelectric
andelectronic devices. In order to follow
these standards, Iseki promoted thepurchase of products with environmental
labels such as eco marks and GPN
standard products on a priority basis. The
total amount of green purchase of entire
Iseki Group was 96% of the total purchase in
FY2008.

Entire image of green purchasing

Parts, materials, andmachinery with fewer
environmental stresses

Customers and suppliers
which are proactive forenvironmental promotionGreenpurchasing

Environment-friendly
designing LCA

Ratio of green purchaseNon-green purchase4％

Development
ofenvironmentconscious
products

Recycling

Green purchase
96％

User

Reduction ofenvironmental stresses(Modal shift)

Manufacturing and shippingof environment-conscious
products

Environmental processes
Reduction ofenvironmental stresses

Items to be covered: Commercialized environmental products
Period of purchase: April, 2008 to March, 2009

<Level of environmental awareness of our suppliers and vendors>
The Green Purchase ratios of our suppliers and vendors based on
the environmental management system (EMS), such as ISO14001
and Eco Action 21 (EA-21), were 50% of the total number ofvendors and suppliers and the amount of purchase from these
suppliers and vendors was 54% of our total purchase. Iseki strive toencourage such suppliers and vendors to implement the EMS in the
future so as to establish a supply chain which enhances the ratio of
our Green Purchasing.

Ratio of green purchasing
60％
56％
52％
48％
44％
40％
The number ofcompanies basis

Environmental Report 2009by ISEKI & CO., LTD.

20

Amount ofbusiness basis

Education and training for environment / Qualified persons
Collaborative creation together with our stakeholders<Approach to systematic environmental education and training>

to environment-related laws and legal qualification<Strict complianceand promotion of licenses related to environment>

The principle to develop the recycle-oriented society and realize thelow carbon emission society is to promote the reduction ofenvironmental stresses and thus it is necessary for each employee
to enhance their own consciousness and competency of theenvironment. For this, Iseki Group aims to improve environmental
consciousness by providing all employees with the education andtraining called environmental program in three major steps
according to the level of environmental stresses: subjective training
for every employee, training for special jobs and education for
employees who engage with jobs which require certain official
qualification.

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 safety andhygiene rules strictly. At the same time, we offer our employees theopportunities to participate in seminars held by external institutes for
managers in charge of pollution supervisor, chief electrical engineer,and boiler engineers to have the official qualifications needed for thepromotion of developing recycling-oriented society. The number of
employees qualified for official environmental qualification as of theend of March, 2009 is shown in the following table.

Name of qualification

Consciousness education: All employees

Number of employees
Air

Pollution supervisor

Training forspecialist labors

Water quality
Noise
Vibration

Energy control engineer
Energy controller
Chief electrical engineer
Boiler engineer
High pressure gas production safety supervisor

Officially qualified
persons

Industrial waste treatment facility engineer
Specific chemical substances chief operator
Hazardous material handler

15
15
16
17
8
3
13
89
12
4
19
175

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 realizes that the first step to the environmental preservation is to raise the awareness of each individual; therefore, we
support their activities to promote the environment preservation not
only in their workshops but also in their home and community. Iseki
Group strives to further increase the awareness of each employee
about the environment through the environmental training of new
employees and issuance of Iseki Group newsletters.

Iseki promotes appropriate improvements and continuous activities
through system application checking by having environmental education based on the environmental management system and yearly
regular audits by external certification institutes, as well as internal
system application audits. Iseki Group has been offering our employees unified and systematic training and education by third-party
institutions as we think it is necessary for us to train internal auditors
to up-grade their skills and capabilities in order to maintain andimprove the application of the environmental management system.

<Environmental training>
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. This training and education is offered on aregular basis in accordance with various standards describing theimpacts of such particular jobs to the environment, daily
management procedures, and emergency procedures.

Lecture for environment

Environmental Report 2009by ISEKI & CO., LTD.

21

Environmental communication
Collaborative creation together with our stakeholders

To exercise our responsibility as a company having a very close contact with the community, Iseki
supports various activities in each community. Contribution to the development of community is apriority mission of Iseki group.
Iseki has made a registration as a promotion partner of the national movement, “Food Action Nippon
Project Headquarters” for improving the food self-sufficiency ratio, started by the Ministry ofAgriculture, Forestry and Fisheries of Japan as of October 6, 2008, in order to accelerate activities forthe improvement of the food self-sufficiency ratio through local production for local consumption
activities in each region of Iseki Group companies.

<Acceptance of plant tour>
As a part of communication with people from outside, Iseki-Matsuyama MFG Co., Ltd., at the location of birthplace of Iseki, and other Iseki’s
manufacturing plants, including Iseki-Kumamoto, Iseki-Niigata and Iseki-Houei, accept elementary school students, people from othercountries, and local residents for plant tours.

Visit of a delegation from Jilin, China for plant tour
December, 2008

<Product exhibition corner>
The Exhibition Pavilion in Matsuyama, the base of advertisement and public relations of Iseki Group, was renewed and reopened in March,
2009. There are exhibitions of products including combined harvesters, tractors, dryers, and the SANAE-chan Farm for home gardening, as
well as the “Food Action Nippon” corner.
URL http://www.iseki.co.jp/products/sanae/index.html<Information offering from web site>
Iseki Group also publishes our environmental activities on Iseki’s web site. On the web site, you will find a mail box for your opinions
and questions about environmental matters. For more information, please visit our web site.

http://www.iseki.co.jp/
Execution of clean activity><〈「クリーン行動」の実施〉
As part of our practices regarding “Contribution to society and community”, which Iseki Group presents as our environmental policies
for each district, our employees participate in cleaning activities in their district.

Iseki-Matsuyama MFG. Co., Ltd.

Iseki-Kumamoto MFG. Co., Ltd.

Iseki-Niigata MFG. Co., Ltd.

Environmental Report 2009by ISEKI & CO., LTD.

22

Iseki-Houei MFG. Co., Ltd.

Iseki-Matsuyama MFG. Co., Ltd.
Environmental data

<Company profile><Environmental data>
Volume of CO2 emissions resulted
by using fossil fuel30,000Volume of CO2 emissions resulted by using
fossil fuel (production volume basis)100

25,00080

20,00060
15,00040
10,000
20

5,000

0ton

0ton
1997

Address
Number of
employees

700 Umaki-cho, Matsuyama-shi, Ehime prefectureArea

151,000m2
Tractors, Medium and Small combine harvesters
Dryers, Engines

Major products

19972005 2006 2007 20082005 2006 2007 2008

Wastes and recycling

640 (As of March 31, 2009)
12,000100

10,000

80

8,000
60
6,000

<Basic principles on environment>

40
4,000

The Seto Inland Sea, a beautiful landscape which is incomparable
in the world. Sea dotted with green islands under a blue clear sky.
Iseki-Matsuyama MFG. Co., Ltd. determines action guidelines andpromotes any business activities which harmonize with theenvironment for preserving this blessed natural environment.

20

2,000

Final wastes
0％

0ton
1997

2005

2006

2007

200

2008

Rate ofrecycling

Volume of water use(for total production volume)

Volume of water use<Action policy>

Recycling

700
600

1. Continuous improvement

150

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

500
400

100
300

2. Observation of laws and regulations concerning environment
200

50Observe environment-related legislation, local government regulations,and agreements concluded by the company.

100

in 1,000ton

3. Mitigation of negative impacts on environment andprevention of contamination

0ton
1997

1) Minimize volume of CO2 generated as a result of production and electricenergy use2) Segregate wastes for collection and recycling3) 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 the prevention of pollution.

1997

2005 2006 2007 2008

Volume of chemical substances use(for total production volume)

Volume of chemical substances use
150

2005 2006 2007 2008

0.4

120

0.3

90
0.2
60

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

0.1

30

0ton

0ton
2001

5. Familiarization of information to all employees

2005 2006 2007 2008

1, 3, 5- Trimethylbenzene

Familiarize all the information of environmental policy to all employees in
the company and deal with the environment issues together through apublicity using company news and environmental education.

Dichloromethane
Water-soluble zinc compound
Ethyl benzene
Toluene

6. Disclosure of environmental policies

XyleneDisclose the environmental policies upon request of outsiders

Environmental Report 2009by ISEKI & CO., LTD.

23

2001

2005 2006 2007 2008

Iseki-Kumamoto MFG. Co., Ltd.
Environmental data

<Company profile><Environmental data>
Volume of CO2 emissions resulted
by using fossil fuel10,000Volume of CO2 emissions resulted by using
fossil fuel (production volume basis)
80

8,000

60

6,000
40
4,000
20

2,000

0ton

0ton
1997

Address
Number of
employees

1400 Yasunaga, Mashiki-cho, Kamimashiki-gun, Kumamoto prefectureArea

217,000m2
Large combine harvesters, Multi-crop combine harvesters,
Carrot harvesters

Major products

19972005 2006 2007 2008

257 (As of March 31, 2009)2005 2006 2007 2008

Wastes and recycling
100

1,600
1,400

80

1,200
1,000

60

800

<Basic principles on environment>

40

600

Iseki-Kumamoto MFG. Co., Ltd. calls the importance of environment
into account through a supply of agricultural machines; therefore, we
strive to preserve these wonderful environmental resources, such as
nature, a rural paradise, and water, in Kumamoto.

400

20

200

Final wastes
0％

0ton
1997

<Action policy>

2005

2006

2007

600

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

2008

Rate ofrecycling

Volume of water use(for total production volume)

Volume of water use

1. Continuous improvement

Recycling

5,000

500

4,000

400
3,000

2. Observation of laws and regulations concerning environment

300

Observe environment-related legislation, local government regulations, andagreements concluded by the company.

200

2,000

3. Mitigation of negative impacts on environment andprevention of contamination

1,000

100

in 1,000ton

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 to carryout. Execute and review the targets on a regular basis so as to mitigate
negative impacts and prevent contamination.

0ton
1997

Volume of chemical substances use
60

4. Contribution to community

2005 2006 2007 2008

Volume of chemical substances use(for total production volume)

0.5

50

Open company welfare facilities up to public and contribute to the environmental preservation through cleanup activities.

1997

2005 2006 2007 2008

0.4

40
0.3

5. Familiarization of information to all employees

30

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

0.2
20
0.1

10

6. Disclosure of environmental policies

0ton

0ton
2001

Disclose the environmental policies upon request of outsiders.

2005 2006 2007 2008

1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneEnvironmental Report 2009by ISEKI & CO., LTD.

24

2001

2005 2006 2007 2008

Iseki-Niigata MFG. Co., Ltd.
Environmental data

<Company profile><Environmental data>
Volume of CO2 emissions resulted
by using fossil fuel3,000

Volume of CO2 emissions resulted by using
fossil fuel (production volume basis)
25

2,500

20

2,000
15
1,500
10
1,000
5

500

0ton

0ton
1997

Address
Number of
employees

3-12-23 Nishiohsaki, Sanjo-shi, Niigata prefectureArea

29,000m2
Rice transplanters, Rice hullers,
Vegetable transplanters, Binders

Major products281 (As of March 31, 2009)1997

2005 2006 2007 20082005 2006 2007 2008

Wastes and recycling
700

100

600
80
500
60

400

<Basic principles on environment>

300

40

200

Clear water from Igarashi river, a feeder stream of great
Shinano river, natural environment surrounded by mountains of
Echigo, and the Echigo Plain known as an area which boasts ofabundant rice production. Iseki promotes this business in harmony
with the natural environment through a supply of agricultural
machines to preserve this blessed environment.

20
100

Final wastes
0％

0ton
1997

2005

2006

2007

Volume of water use<Action policy>25

1. Continuous improvement

200

20

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

15

2. Continuous improvement and prevention of contamination

10

Recycling

2008

Rate ofrecycling

Volume of water use(for total production volume)

150

100

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

50

50 千 ton0ton
1997

Volume of chemical substances use

3. Familiarization of information to all employees andcontribution to community

40

Distribute publicity to every employee through corporate environmental
activities and education, as well as having close communication with people
in the community, in order to promote environment preservation activities.
We will disclose our environmental policies to the public upon request sothat the people in the community will know our policies.

1997

2005 2006 2007 20082005 2006 2007 2008

Volume of chemical substances use(for total production volume)

0.5

0.4

30

0.3
20
0.2
10

0.1

0ton

0ton
2001

2005 2006 2007 2008

1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneEnvironmental Report 2009by ISEKI & CO., LTD.

25

2001

2005 2006 2007 2008

Iseki-Houei MFG. Co., Ltd.
Environmental data

<Company profile><Environmental data>
2,500

Volume of CO2 emissions resulted
by using fossil fuel

50

2,000

40

1,500

30

1,000

20

500

10

0ton

Address
Number of
employees

878-1 Umaki-cho, Matsuyama-shi, Ehime prefectureArea

8,959m2

Major products

Cultivators, Tillers, Walk behind mower, Riding mower, Rotary

Volume of CO2 emissions resulted by using
fossil fuel (production volume basis)

0ton
1997

1997

2005 2006 2007 20082005 2006 2007 2008

282 (As of March 3, 2009)
Wastes and recycling<Basic principles on environment>
The community adjacent to the Seto Inland Sea National Park.
Iseki-Housei MFG. Co., Ltd. promotes the preservation of thisblessed community and the creation of a people-friendly
working environment for our employees.

1,500

100

1,200

80

900

60

600

40

300

20

0ton

0％

Recycling
Final wastes

1997

2005

2006

2007

2008

Rate ofrecycling<Action policy>
1. Continuous improvement

Volume of water use

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

12

200

Volume of water use(for total production volume)

10150

2. Observation of laws and regulations concerning environment

8

Observe environment-related legislation, local government regulations, andagreements concluded by the company.

6

3. Mitigation of negative impacts on environment andprevention of contamination

100

4
50

1) Reduce volume of electric energy use
2) Reduce volume of water use
3) Segregate wastes for collection and recycle2

in 1,000ton

0ton
1997

4. Contribution to community
1) Save water and use water efficiently as a corporate citizen in order tocontribute 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 andconstituent members in the company and deal with the environment issues
together through a publicity using company news and environmental
education.

Environmental Report 2009by ISEKI & CO., LTD.

26

2005 2006 2007 2008

1997

2005 2006 2007 2008

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., 2009

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).