Environmental Report
Version: 2012

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 report● Corporate governance and compliance . . . . . . . . . . . . . . . . 5● Aiming to respect human rights and . . . . . . . . . . . . . . . . . . . 6
for a happy workplace● Employment and human resource development . . . . . . . . .7
● To achieve customer satisfaction . . . . . . . . . . . . . . . . . . . . . 8● Contribution to local communities . . . . . . . . . . . . . . . . . . . 11
Environmental report● Eco vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
● Outline of management . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
● Second mid-term and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
long-term environmental targets and results of FY2011● Environmental accounting . . . . . . . . . . . . . . . . . . . . . . . . . 16
● Business activities and environmental stresses . . . . . . . . 17
● Control to inhibit emission of greenhouse gas . . . . . . . . . 18
● Preventing global warming . . . . . . . . . . . . . . . . . . . . . . . . . 20
● Preserving water resources . . . . . . . . . . . . . . . . . . . . . . . . 21
● 3R of production processes . . . . . . . . . . . . . . . . . . . . . . . . 22
● Approach to preserve biodiversity . . . . . . . . . . . . . . . . . . 23
● Approach to design for environment . . . . . . . . . . . . . . . . . 24
● Green purchase / Green supply . . . . . . . . . . . . . . . . . . . . . 28
● Education and training for environment / . . . . . . . . . . . . . 29
Qualified persons● Environmental communication . . . . . . . . . . . . . . . . . . . . . . 30
● Environmental performance of four factories . . . . . . . . . . 34
● Main locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
The coverage of this report

Term covered: Term covered: 2011 Fiscal Year
(From April, 2011 to March, 2012)
Activities covered: Domestic activities
Organization: Iseki & Co., Ltd., affiliates,
domestic covered distributors
and sales subsidiaries
Guideline used: Environmental Report Guideline(2009 edition) as reference
and GRI Guideline

Picture taken at Masaki-cho, Ehime prefectureMessage

Aiming to bring about a prosperous community,
constantly growing in affluence
The Great East Japan Earthquake on March 11, 2011 claimed many precious human lives
and destroyed beautiful nature and farmland, the basis of our company. The nuclear
accident following the earthquake disaster not only caused significant social confusion, butalso gave us a chance to recognize the necessity to stably secure clean and risk-free energy.
The increase in consumption of natural resources and energy in emerging countries that
accompanies their economic growth, in addition to the globalization of previous economic
activities, also increases stresses to the natural environment and contributes to global
warming and climate change. We consider now is the time to utilize the limited natural
resources and energy more effectively and efficiently to reduce the stresses to theenvironment.
Since its foundation in 1926, Iseki has made exertions to improve productivity throughagricultural machines that promote agricultural streamlining and reduce fatigue farming
work. Refining our skills that we have cultivated, we develop products that realize further
reduction of fuel and fertilizer and promote their use, while taking various
environmentally-conscious approaches in the development and manufacturing of products,
and in 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 transplanting, and promoting the use of fertilizing machines in ridges, that
reduce the use of fertilizer by 30%. Our environmental preservation activities were started
primarily at our manufacturing factories and have now spread widely throughout the entire
scope of our business, from headquarters to sales subsidiaries, through the implementationof the Environmental Management System (EMS). From initial product development,
manufacturing, product logistics and all the way to after-sales activities, all businessactivities at Iseki Group are based on a tangible target and management system so as to be
an environment-conscious company.
Furthermore, in terms of the restoration of the farmland damaged by the Great East Japan
Earthquake and the nuclear accident, based on the belief that the technologies of Iseki
Group will be of help, and with the cooperation of the local people, we have been continuing
positive activities. We will continue providing support for complete recovery from theGreat East Japan Earthquake. Iseki Group recognizes that it is
our social responsibility to contribute to the society which is in
the stage to be recycle-oriented. We therefore position this as
one of our most important management tasks. We continue ourefforts to be of assistance in establishing a “prosperous
community, constantly growing in affluence.”
We are pleased to have an opportunity to publish this 2011
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
successful.
President

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, 2012)

Employees

Consolidated: 6,295 (as of March 31, 2012)
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)>

Net sales<Sales composition by product category as of March, 2012 at the end of fiscal year>
Others 0%(billions of yen)

Ordinary income(billions of yen)

Other
agriculturalbusinesses
21%

Cultivating
and mowing
machinery
28%

Planting
machinery
11%

March
2008

March
2009

March
2010

March
2011

Serviceparts andfarming
implements
21%

March
2012

<Financial statements>(As of March 31, 2012)

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
OthersHarvesting andprocessing
machinery
19%(From April 1, 2011 to March 31, 2012)

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 productsElectric mini 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, acompany-wide compliance team takes initiative toprovide compliance training continuously to prevent
injustice and scandals from occurring by spreading
consciousness of compliance to all the executives andregular employees.
In addition, we have established the “Management
Supervisory Committee” with the president as thechairman, all the directors as members and all theauditors as observers to check the thoroughness ofcompliance.
<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 issuingand posting “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

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 on
ap p r o p ri a t e e m p l o y m e n t m a n a g e m e n t , a v o id i n g
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.

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.

<Statistics of industrial accidents>

Transition of frequency rate (FY2007 to FY2011)* Frequency rate: Casualty toll per 1 million working hours* Target: Iseki and four factories

Warming-up before walking

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.
We provide a variety of training at the Training Center(Tsukubamirai-shi, Ibaraki prefecture) and in the bases ofeach company, as well as detailed education such as
cultivation of global human resources with foreign
language training, succession of skills and techniques with
the introduction of the meister system, and acorresponding
educationsystemtopromoteself-development.
Before implementing these measures, we discuss them inthe Human Resources Committee with all the directors
present and promote them from the view point of humanresource development in consideration of management
issues.

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

Diversity
As globalization of management progresses and the
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.

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-Niigata MFG. Co., Ltd.
Painting Department

Hiroshi DomaMeister job type: Coating
I engage in maintenance and management of coating
equipment to have it operate properly every day in
Iseki-Niigata MFG. Co., Ltd.
I have prepared a meister annual plan to hand on skills
and techniques to young employees and successors
based on my knowledge and experiences, and havebeen providing education and training according to this.
When teaching, I always focus on repeating the work
many times until the trainee learns it and checking
carefully if he/she has learned it correctly.

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

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 and training to have customers
use products safely, with sales persons and service
persons of sales subsidiaries and successors ofdealerships across Japan as trainees.
• Regular training courses : 82 courses/year• Annual number of trainees : About 1,000 from within andoutside the Iseki Group

Consumer consulting service<Inquiries to website by e-mail>In the “Contact Us” page of the website of ISEKI CO. LTD., we welcome
a variety of inquiries from customers concerning (1) products and (2)the entire company, etc.

The “Contact Us” page of the inquiry window is
on our website.
Please visit the following address.
http://www.iseki.co.jp/english/contactus.html

In “Technical inquiries to manufacturer” of “Inquiries as to product,” ourTechnical Support & Solution Department serves as a window oftechnical inquiries as to products and responds to inquiries from
customers with responsible technology departments of the relevant
products.
There were about 1,000 inquiries by e-mail in FY2011 and we have
responded to all of them with respect.

<Number of inquiries by e-mail in FY2011: Approx. 1,000>
Product

Inquiry rate

Tractors
Cultivators/tilllers
Rice transplanters
Combine harvesters
Others<Telephone consulting for technical inquiries as to products>
For the above “Inquiries as to products”, we started to directly respond to phone calls from customers from February 2012 inaddition to “inquiries by e-mail”.
We receive various inquiries and consultations not only from customers but also from various organizations such as administrative
institutions, electric power companies, insurance companies, food companies, and TV stations. The person in charge responds tothem with respect.

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 careless mistakes
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

Promotion of consistent quality assurance activities DR (design review)

ServiceSecurementof service
quality

Production

Produce optimal
design quality

Quality improvement deliberation council/quality improvement meeting

Product Planning Meeting

Securement of
manufacturing
quality

Design quality control system

Preparation for production

Elaborate optimal
design quality of
product that meets
customer needs

Development/design

Planning

Realization of product quality to fulfill expectations of customers

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 are building a new
system to share information search and analysis functions among relevant departments.
This new system will link relevant divisions from sales subsidiaries to development and manufacturing departments via theInternet to speed up the course of problem detection, treatment, and response concerning the quality after shipping ofproduct.

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

Response data

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

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 >Since its foundation, Iseki has developed its business based on agriculture, supported by farming households. 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.
Iseki Group has united all forces and has joined together to work on support activities proactively not only for recovery offarmland but also for the general devastated areas. We will continuously promote our support activities.

Decontamination of farmland soil polluted by radioactive materials
Due to the nuclear accident, some farmland in Fukushima prefecture has been polluted by radioactive materials,
causing serious problems in agricultural production activities. A verification test “farmland soil decontamination
technology development” to decontaminate and improve this farmland was decided to be implemented by the Ministryof Agriculture, Forestry and Fisheries and Fukushima prefecture jointly and Iseki Group also participated in it as anonly agricultural machine manufacturer. The verification test had 13 projects and we participated in six projects out ofthem to cooperate for decontamination technology development for restoration of farmland.
<Verification test of surface soil separation on June 13, 2011>
In the presence of many reporters, we conducted a verification test of surface
soil separation in a rice field in Iitoi district, Iidate Village, Fukushima prefecture.
We provided a large-sized tractor TJV75 and an operating machine andproposed an operation method, which was adopted. The operation itself was
also conducted by us.
The process consisted of (1) crushing soil with plowing depth of about 5cm byusing a vertical harrow, (2) collecting the crushed surface soil to one place in thecultivated land with a rear grader, (3) putting the collected soil into a flexible
container with a compact excavator and (4) putting it to a truck with a front loader
to carry out of the cultivated land.
The result proved that the cesium concentration in the soil that was 10,000 Bq/kg
in average became 2,600 Bq/kg in average after work, falling much below theallowable value for planting 5,000 Bq/kg specified by the country. After that, rice
plants were set out by the owner of the field.

Preparation of rice field before
planting in the presence of reportersfrom many media companies

Collection of soil
with rear grader operation machine<Test of radioactive material removal technology by land preparation andforced draining in rice fields on August 23 to 25, 2011>
We conducted the test in the following way. First, we ploughed and irrigated thefield to mix the surface soil with cesium into the water and drained the muddy
water by using a pump to remove cesium from the rice field. We added
chemicals to the drained muddy water to precipitate the mud with cesium toseparate it from the supernatant water and collect cesium.
In addition, decontamination tests were conducted by removing surface soil ofrice fields with a fixation agent and land surface of dry fields with use of a rear
grader.
To recover beautiful land of Tohoku, we will continuously cooperate for soil
decontamination, aiming to the earliest possible restoration.

Support for agricultural products of Fukushima
Accompanying the Great East Japan Earthquake and the nuclear accident,
shipment restriction and harmful rumor occurred to agricultural products ofFukushima and other regions, and agriculture in the devastated areas was
significantly damaged.
Considering such a situation, Iseki Group supports recovery of agriculture in thedevastated areas by using “rice of Fukushima prefecture” in the staff canteensand company dormitories of our major offices in cooperation with the Fukushima
Branch of the Federation of Agricultural Cooperative Associations.

Staff canteen of
Iseki-Matsuyama MFG. Co., Ltd.

Contribution to local communities
Sociality report< Support for NPO in Ehime >We provided our rice transplanter and combine harvester for rice planting and reaping in a self-reliance support farm forphysically-challenged people “Aguri-juku” run by ”NPO for Hometown Development with Agriculture” to help
physically-challenged people experience actual farm work.
On the day of rice planting, eight people with handicaps of body or hearing, members of the NPO and our employees planted
seedlings by using the rice transplanter. The physically-challenged people tried to drive the rice transplanter for the first time,learning how to operate it from our employees.
In September, three months after rice planting, we provided our combine harvester to reap rice that had grown vigorously,
supporting them by teaching how to reap the rice.
<“NPO for Hometown Development with Agriculture”>
This is an NPO to provide job assistance for physically-challenged people
through agriculture (represented by Kunio Shirato in Matsuyama-shi, Ehime
prefecture). Their activities focus on cultivating deserted farmland [deserted
farmland in eight places in Toon-shi, Ehime prefecture (approx. 100 ares intotal)] to recover the landscape of their hometown, simultaneously providing job
assistance for physically-challenged people.

Rice reaping with our combine harvester< Approach to educational farm “Volunteer Rice” in Kumamoto >< Cooperation for Sanjo Festival in Niigata >Iseki-Niigata MFG. Co. Ltd. sent security guards toprevent visitors from going into Shinano River fromtheir seats in the Sanjo Great Firework Festival inAugust at the request of the Sanjo Chamber ofCommerce and Industry.

Since 2002, Iseki-Kumamoto MFG. Co., Ltd. has been showing rice
growing, the importance of “food”, “agriculture” and environmental
preservation and raising consciousness of social welfare through realexperiences of rice planting and reaping with children in local facilities. In
recent years, we have also been challenging “sparse rice planting”. The
harvested rice is donated to social welfare facilities, etc.

< Ehime Prefecture Children's Exhibit of Invention and Devices >The awards ceremony of the 70th Ehime PrefectureChildren's Exhibit of Invention and Devices was held on
October 31, 2011. Many children in elementary andjunior high schools in the prefecture entered this exhibit
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 to an excellent invention of a child every year tohelp children to improve their motivation for invention.
Award of Iseki Prize

Iseki Prize winner“Rain Water Discharging Machine”

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>

The Directors’ Operation Committee deliberates anddetermines Iseki Group’s basic policies regarding theenvironment, as well as the accommodation of managementtargets, action plans, and corrective actions for criticalenvironment issues submitted by the Environmental PlanningGroup 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

Niigata district

CEO ofeach company

Director assigned
to General Affairs

Environment
Manager

Environment
Manager

Chief Operation
OfficerDevelopment &Production
Division

CEO ofIseki-Matsuyama
MFG. Co., Ltd.

CEO ofIseki-Kumamoto
MFG. Co., Ltd.

CEO ofIseki-Niigata
MFG. Co., Ltd.

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

Environment
Manager
Environmental
Management
Committee

Second mid-term and long-term environmental targets and results of FY2011
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 FY2011.
1. Second mid-term and long-term environmental targets and accomplishments in FY2011
Item

Second mid-term and long-term environmental targets

Accomplishments in FY2011

Realization of a low-carbon
emission society
Formation of a recyclingoriented society
Restraint of toxic
Restraint ofchemical substances manufacturing resource

Reduction of CO2
emissions

To reduce the volume of energygenerated CO2 emissions per
production volume by 2% 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 97% and 92% respectively against thesecond mid-term and long-term environmental target, falling short of the goal.
We will continuously strive to reduce the volume of CO2 emissions
by replacing facilities with energy-saving ones.

Reduction oflogistics CO2
emissions

To reduce the volume of energygenerated CO2 emissions pertransportation volume(10,000ton-km) by 1% or morecompared to the average result of
three years from FY2008 to FY2010

The achievement rate of the volume of CO2 emissions per transportation
volume was 107% against the second mid-term and long-term
environmental target. We will continuously strive to reduce the volumeof CO2 emissions by promoting modal shift.

Reduction ofwastesTo reduce the volume of final
wastes per production volume
by 5% 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 176% and 168% respectively against the second
mid-term and long-term environmental target.
We will continuously strive for reduction, aiming at zero emission (Standard: The rateof the final volume of wastes shall be less than 1% of the total volume of wastes)

Water resourcesavingTo reduce the volume of waterused per production volume by
14% 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 ofwater used per production volume were 101% and 96% respectively against
the second mid-term and long-term environmental target,
falling short of the goal. We will continuously strive for reduction
by repairing water piping, etc.

Reduction ofsubstance subject
to PRTR Law

To reduce used volume ofsubstances subject to control 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 use of substances subject to the PRTR
law and the used volume per production volume were 96% and 91% respectively against
the second mid-term and long-term environmental target, falling short of the goal.
We will continuously strive for reduction by promoting early adoption of paint and thinnerwith less 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 1% 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 123% and 117% respectively against
the second mid-term and long-term environmental target.
We will continuously strive for reduction.

Evaluation

Relevantpages

Evaluation

Relevantpages

2. Mid-term and long-term targets of business activities and results of FY2011
Classification

Item to be implemented

Accomplishments in FY2011

Environmental
management
Product development
and service(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-friendly designs that allows grasp of
the volume of CO2 emissions in the entire cycle from parts manufacturing
to disposal, 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: Not achieved

Environmental accounting
Environmental report
Iseki Group employed the environmental accounting system from 2004. We deal with the use of aggregated costs of investment 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 through information disclosures to the public. The amount invested for environmental preservation costs(pollution prevention, environmental preservation, and resource recycling costs) in 2011 was 433 million JPY. The total amount of expenses
was 563 million JPY that we made through some investments into diesel engine emission gas and maintenance and improvement of theenvironmental management system, 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 57,000,000 JPY. The physical effect was
the reduction of CO2 emission by 3,827 tons, reductionof water consumption by 15,797 tons, and recycling ofwastes by 5,020 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, 2011 to March, 2012

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 FY2011, making progress toward
reduction of environmental pollution.
Measured item

Water
quality

Air

Units

Volume of suspended substances (SS)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 2011

Resultin 2011
Less than 1(Note 2)ppm

Less than 1Less than 0.5

Particulate

g/m3N

Less than 0.01

Less than 0.01

ppm

Particulate (electric casting melt furnace)g/m3N

Resultin 2011(Note 1)n-hexane (Mineral oil)
Nitrogen oxide (NOx)Iseki-Niigata MFG. Co., Ltd.
Regulatory Self-directed
control
standards standards

Not detected

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 2011.

Energy672,000GJ
Electricity 54.0milliion kWh
Kerosene
904kL
Heavy oil
808kL
Butane gas
504,000m3
City gas
171,000m3
Gasoline
72kL
Light oil
23kL

Business activities
Development- Promotion of environment-conscious
designing
Procurement- Green purchasing

Water

Production

318,000m
Tap water
82,000m3
Under ground water 236,000m3
3- 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

153t

Major products:

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

Total substances
Main raw materials 48,300t

Products distribution to distributors
Transported volume 27.9million ton-km
Discharge volume of CO2 3,780t

Atmosphere
Discharge volume of CO2 29,600t
Discharge volume of soot and dust 993kg
Discharge volume of Nox 1,660kL
Discharge volume of Sox 2,830kL

Discharge water
Discharge volume 122,000m3
BOD
6,480kg

Chemical substances
Substances subject to PRTR
142t
law Discharge/Transfer volume

Industrial wastes
Industrial wastes Total volume 10,100t
Recycled volume
9,100tReduction volume
572t
Final volume
430t

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 2011, 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 112 and environmental stressintegrated index of 76 in FY2011 compared to the index of 100 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 integrationc oe ffi ci en ts fo r J apan pr esent ed by LCA experts ,environmental experts and enterprise experts for integrationof environmental stresses, with the value of CO2 defined as 1.

Item

2005
2011
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 CO emissions by introducing high-efficiency air-conditioning machines>
2

Iseki-Kumamoto MFG. Co., Ltd. replaced the airconditioning facilities in the office, conference roomand temperature controlled room with machining
equipment. Air-conditioning facilities are used fortwo major purposes: health air conditioning that is
intended for people and Industry air conditioning
for articles. Since all the air-conditioning facilities
replaced this time were installed more than 20 years
before, the efficiencies of air-conditioning were low
and the power consumption was increasing. By
replacing them with high-efficiency air-conditioning
facilities, the electrical usage and CO2 emissions werereduced.
We will continuously replace inefficient air-conditioning
facilities in turn to promote prevention of global
warming and energy saving.

Refrigerant air-conditioning facility

Air-conditioning facilities are classified into four types according to the heattransportation method. They are the full-air system adopted in theaters,
gymnasiums, etc., the water and air system which uses both water and airfor heat transportation, the water system which only uses water for heattransportation, and the refrigerant type which uses refrigerant piping for heattransportation, represented by *air-conditioners. The facilities improved thistime were the refrigerant types.

[Reduction results in FY2011]• Reduction of electrical usage:
Approx. 47,000 kWh/year• Reduction of electricity charges:
Approx. 300,000 yen/year• Reduction of CO2 volume:
Approx. 18,000kg-CO2/year*An air-conditioner is one type of air-conditioning facilities. It is amachine to that adjusts the temperature and humidity of the air in
the room and transports heat with a heat carrier other then water<Approach to reduction of CO emissions by introducing high-efficiency multifunction machines>
2

Iseki-Hoei MFG. Co. Ltd. replaced copying machines and printers used in the office with high-efficiency multifunction machines(three units). As a result, the electricity usage and CO2 volume could be reduced as shown in the following table. The
multifunction machines can not only copy documents but also save them to electronic media (CD, etc.) with a scanner and thecost of copying and the volume of copy paper could be reduced. The communication fees could also be reduced with IP-FAX (afunction to allow communication between fax machines that are distant from each other and connected to the Internet by using
IP addresses instead of fax numbers). As an approach in the future, we will promote replacement fluorescent lamps with LED.
Multifunction machine: A machine with multiple functions.
It has functions of a copying machine, printer, image
scanner, facsimile, etc. collected together.

［Reduction results in FY2011］• Reduction of electrical usage: Approx. 37,000 kWh/year• Reduction of electricity charges: Approx. 33,000 yen/year• Reduction of CO2 volume: Approx. 1,500 kg-CO2/yearControl to inhibit emission of greenhouse gas
Environmental report<Approach to reduction of electrical usage by replacing lights of offices with LED>
Iseki-Niigata MFG. Co., Ltd. replaced the 132W
straight tube fluorescent lamps in the office of the
Manufacturing Department and the 50W fluorescent lamps of the office of Engineering Works
Department with LED fluorescent lamps, and thestabilizers with converters. This replacement allows
the yearly CO 2 emissions to be reduced by 50% andthe lifetime of the lamps will be more than four times
prolonged.
We will continue to replace the conventionalstraight tube fluorescent lamp with LED fluorescentlamps in turn systematically.

Low electrical usage
LED lights in the office of the Engineering Works Department[Reduction results in FY2011]• Reduction of electrical usage: 6,648 kWh/year• Reduction of electricity charges: 99,000 yen/year• Reduction of CO2 volume: 3,100kg-CO2/year
Incandescent Fluorescent
bulb
lamp

Halogen
lamp

LED

LED
2007

LED
2008

<Approach to reduction of electrical usage by replacing lights of the east side of the second floor and the reception room of the design management building with LED>
Tobe Office replaced the fluorescent lamps of theeast side of the second floor and the reception
room of the design management building withfluorescent type LED bulbs (straight tube type). As
a result, the electrical usage and the CO 2 emissions were reduced. We will continuously promoteenergy saving to reduce environmental stresses.

Fluorescent type LED bulb
Inverted image of Mt. Fuji 2 light
Color: White
Weight: 2.8kg
Size: width 202 x length 1,256 x height 85mm

Fluorescent lamp type LED bulb (straight tube type)(37 lamps replaced on the east side of the second floor)

East side of the second floor[Reduction results in FY2011]• Reduction of electrical usage: 1,910kWh/year• Reduction of electricity charges: 21,000 yen/year• Reduction of CO2 volume: 725kg-CO2/year(estimation by 8h/day x operating day of year)

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 FY2011, the achievement rates of the total
volume of CO2 emissions and the volume ofCO2 per production volume were 97% and 92%
respectively against the reduction target of
2%/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
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
Environmental report
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 FY2011, the achievement rates of the total
volume of materials used for production and thevolume of materials used per production volume
were 123% and 117% respectively against the
reduction target of 1%/year, exceeding the goal
substantially. We will continuously strive to
reduce the total volume of materials used for
production.

Materials used volume
Total volume (ton)Per production volume(ton / 100million 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]
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 FY2011, the achievement rates of the total
volume of water used and the volume of waterused per production volume were 101% and
96% respectively against the reduction target of
14%/year.
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.

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
Environmental report
Volume of use of substances controlled by PRTR law

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 FY2011, the achievement rates of the total
volume of use and the used volume per
production volume were 96% and 91%
respectively against the reduction target of
4%/year, falling short of the goal. We willcontinuously strive to perform appropriate
control and management of such chemical
substance and reduce the volume of use.

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

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

Volume of water used(in per production volume)

2010
Houei

Total Matsuyama Kumamoto Niigata

2011
Houei

Total Matsuyama Kumamoto Niigata

Houei

Total

3R of production processes
Environmental report[Reduction 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 ofwastes, reuse and recycling.
We have established and promoted the second new mid-term and long-termplan (from FY2011 to FY2015) with the average of three years, from FY2008
to FY2010, as a reference value.
In FY2011, the achievement rates of the total volume of final wastes and thevolume of final wastes per production volume were 176% and 168%
respectively against the reduction target of 5%/year, exceeding the goal
substantially.

Total volume of wastes

Recycling volume
Reduction volume
Volume of final
wastesVolume of wastes

Volume of final wastes (in per production volume)

Total volume of wastes （t）
Per production volume (t/100 million yen)
Volume of final wastes （t）
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 FY2011 is as shown below. The rate of final wastes was 4.3% and the rate of recycled volume was
90% which were greatly improved from the reference year 1997. The major factors are thorough segregation of wastes, newselection of waste disposal service for recycling and improvement that made much of the molding sand to be recycled as abase course material.
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 of waste
shall be less than 1%).

Waste disposal flow: FY2011(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.
Concretely, we promote activities to reduce harmful substances emitted from all the factories and offices to theenvironment, provide safe and easy-to-use agricultural machines and services, and support agriculture andapproaches to conservation of the natural environment to preserve biodiversity.

< Approach to tree planting for “town development with forests” >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 Tomitashinminato, Imabari-shi, we held the second jointtree-planting ceremony since the establishment of the group in cooperation with “Ehime
CO2 Reduction Eco-Activity Coordination Project” of a special member, the Joint
Association of Imabari-shi and Ehime Prefecture Corporation Association.
• Date: March 17, 2012
• Participants: 18 member companies, 420 persons• Tree planting: 3,000 plants of 12 kinds of trees such as bayberry“Promotion Group of ‘Town Development with Forests’” carries out tree-planting
activities in company-owned land and public land in the town, aiming to plant 50,000
trees by three years later to “grow real forests near ourselves to leave an environment
for healthy growth of children to the next generation”, with companies in the center thatare working on preservation of local natural environment. In November 2010, we planted
1,000 plants of 24 kinds of trees such as Quercus myrsinifolia and Castanopsis sieboldii
in the area of Iseki-Matsuyama MFG. Co., Ltd. as an activity of this group. Not only our
employees but also local people (about 240 persons) including children participated.

< Approach to reduction of fertilizer usage >We provide easy-to-use, high-performance and energy-saving agricultural machines and facilities which contribute to
reducing environmental stresses as well as agricultural machines which reduce and properly control the usage of“fertilizer” which is harmful to living organisms.

Eco-Unemaze-kun“Eco-Unemaze-kun” cuts the management costs by reducing theusage of “fertilizer”. We added a “4-ridge type” to the traditional“3-ridge type”, “2-ridge type”, “flat-and-high-ridge type” and “entire
mulching type” which have been developed with National Agriculture
and Food Research Organization (abbreviated as NARO) and soldon the market.

Environmental preservation by reduction of the usage of “fertilizer”

Traditionally, “fertilizer” was applied to the entire field before
cultivation and ridge making and seedling transplanting followed
after that. The problems were that the growth of roots of crop plants
was limited in scope and fertilizer in ditches and all layers of ridges
remained unused and flowed out with discharged water, resulting inenvironmental pollution.
The entire mulching 4-ridge type of “Eco-Unemaze-kun” eliminates
this waste. By applying necessary amount of fertilizer to necessary
locations, it can reduce fertilizer approximately by 30% compared to
all layer application.

Improvement of efficiency of work

Eco-Unemaze-kun
Partialapplication

All layer
application

Stir fertilizer and chemicals
Apply only to necessary parts

Apply fertilizer andchemicals all overFertilizer application and ridge making are done simultaneously,
which reduces working processes and improves efficiency. It also
leads to reduction of fuel consumption of the machine.
Application method of fertilizer
and agricultural chemicals

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.

Super eco-productEnvironmental stress of
XX reduced by X%(compared to our conventional models)Eco-productEnvironmental stress of
XX reduced by X%(compared to our conventional models)

Environment-friendly product that hasrealized outstanding environmental
performance with a noteworthy function

Environment-friendly product that hasrealized outstanding environmental
performance with a noteworthy function<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 products in 2011>

Combine harvester Applicable product: “HFC330/433”
Rank: “Eco-product”
Dryers Applicable products:“GML25H/30H/35H/40H/45H” Rank: “Super eco-product”

Approach to design for environment
Environmental report< Approach of riding mower SXG series >Europe has much more lawns and grass fields than Japan, requiring much maintenance work all year round. Therefore,
we provide easy-to-use high-performance tractors dedicated to mowing, contributing to energy saving and reduction ofenvironmental stresses.

Increased capacity of collector (for grass)With the conventional models, the collectors to store reaped grass had a spaceon the top even when they were full, and their capacities were not fully utilized.
At first, change of the angle of the grass cutting route and increased speed of the
cutting blades of the mower allowed much more grass to be collected. However,it caused problems: the working speed was not increased due to more stress tothe engine and fuel consumption increased with speed.
By expanding the container in the horizontal direction without increasing thecurrent width of the vehicle, the capacity was increased by 23% with the compact
size and ability to collect grass retained. The working hours were shortened by
reducing the number of times to go and dispose the collected grass, as well as
the time required for removal of grass.
Exhibition in “Salonvert Show” in France

Collector

Capacity increased in horizontal direction

Lengthen cutting blades
Mower

Improvement of performance of mower
To eliminate waste of time when grass remains uncut and to be cut again, we
made the cutting blades longer than those of the conventional models andincreased overlapping of the right and left cutting blades. This allowed grass to
be cut clean at a higher speed (increased by 4%) than the conventional models
without increasing the engine horsepower, reducing the working hours.

Increase overlapping of cutting blades

Reduction of number of parts
We unified many small pieces together to simplify parts. Especially, we reduced
the number of parts of the steering post by 35%.
The riding mower SXG series are environment-friendly grass cutting
tractors with increased operability that allows the collectors to be
mounted and removed in a short time without tools. Their costs are kept
low and the fuel consumption is also reduced by increasing the working
efficiency.

Unification of parts

Approach to design for environment
Environmental report< Approach of 3-row type HFC combine harvester >Improvement of threshing ability
The new model combine harvester HFC330 has the following three newmechanisms to improve threshing ability substantially.
(1) Twin flapper:
A mechanism to control the direction and volume of the air generated by
the fan for separation of paddy from straws according to the processedvolume.
(2) Sieve scraper:
A mechanism to clean dust off the surface of the sieve for filtration of
paddy with swinging motion.
(3) Stuck paddy collection room :The threshing cylinder is extended backward to set a stuck paddy
collection room. A mechanism to collect stuck paddy so that paddy
attached to straws after threshing shall not go out of the machine.

HFC330New mechanisms contributing to threshing ability(1) Twin flapper(2) Sieve scraper(3) Stuck paddy collection room

Collect in stuck paddy
collection room

Sieve scraper

Operation at low speed, turning, moving backward

Drive motor

Operation at high speed

Improvement of working efficiency
Working
efficiency

23
Blade width (m) X Working speed (m/s)

The working speed was increased by improving thethreshing ability as described above and the working
efficiency was improved by 21% compared to theconventional model 3-row type combine harvester
HFG328.
The calculation formula of working efficiency isbased on the regulations of Agricultural Machine Fair
Trade Committee.
<Working efficiency>

LCA evaluation: Reduction of CO2 emissions
Since we tried to improve theworking efficiency and reduce
the weight of the machine
body in comparison with ourconventional model, CO 2
emission was reduced by 19%
compared to the conventionalmodel HFG328 according to
LCA (total of CO2 emissions of
the entire cycle from production
to disposal) calculation of ourstandard.

CO2 emissions
Reducedby 19%

conventional model

Conventional model
Blade width (m)Working speed (m/s)
Working efficiency (min/10a)
Reduction of machine weight

Reduction of machine weight and capacity

Reducedby 22%The machine weight was reduced by 22% compared to the conventional model HFG328.
The machine capacity was also reduced by 14%, realizing a compact size.
To improve the working environment, we adopted a portal structure for reaping section which
has a reaping visor adjustable to 3 stages; visor folded, visor opened and upper cover
opened. This blocks rice hulls and dirt which fly and come when rice straws are pulled up andprevent dust from flying to improve the environment of operators.
conventional modelApproach to design for environment
Environmental report< Approach of dryer GML H type >For dryers using much fossil fuel, energy and power saving is strongly required.
We commercialized energy-saving dryers GML by realizing “far-infrared heat recycling drying” to recycle exhaust
heat and humidity. These are the first machines certified as our super eco-products.
(For details of eco-product certification system, see page 24.)

Energy saving performance
At the standard drying speed, the fuel consumption
was reduced by 13% at a maximum compared to theconventional hot air dryers.
In rapid drying, the fuel consumption was reduced by
8 to 10% and the electrical usage by 41%.
Even when evaluated in life cycle assessment (LCA)(rate against our standard), the lifetime CO2
emissions were reduced by 7% compared to theconventional models.

Kerosene consumption (with drying speed “normal”)
Moisture
evaporates
more easily

GB hot airy dryer

Far-infrared heat recycling dryer

Fan installed inside

Low noise
Noise was reduced drastically by setting the fansinside the dryers.
With GML25H/30H, noise levels of 75dB (A) or lesswere realized in the operation part.

ECO pipe (*1)
Reuse exhaust heat

*1 ECO pipe: A pipe to recirculate exhaust air in the machineCompact sizes
The sizes were reduced by installing the fans insidethe dryers, allowing the machines to be stored insmall barns.
In large barns, the enlarged empty space can beeffectively utilized, allowing easy cleaning andmaintenance.

Far-infrared emitter

Inside drawing of heat recycling mechanism

Laborsaving●Usage example of rapid drying
Conventional model

The drying time can be shortened substantially inrapid drying mode and you can sleep at easebecause drying operation is no longer required at
midnight. They have become people-friendly
machines, reducing the mental strains of people infarm households who work hard during the daytime.
In addition, drying can be done twice a day,increasing the working efficiency during bad weather
and contributing to laborsaving

Shorter operation time at night!
Drying time: If it is about 14 hours…
Drying start !

End
When using red-infrared heat recycling dryer(with drying speed “Rapid”)

Drying time: About 8 hours!
Drying start !

End !

I can sleep at ease as drying will bealmost complete before I go to bed.

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
and GPN* standard products when purchasing
commercialized commodities such as office supplies
and electric and electronic devices. The total amountof green purchase of entire Iseki Group was 90% of
the total purchase in FY2011.
* GPN : Green Purchase Network

Entire image of green purchasing

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

Development ofenvironmentconscious
products

Ratio of green purchaseNon-green purchase
10%

RecyclingGreenpurchase
90%

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 are promoted.
In FY2011, the green purchase ratio was 65% of the total number of vendors and suppliers and theamount of green purchase from these suppliers and vendors was 89% of our total purchase. Iseki
will strive to encourage such suppliers and vendors to acquire the certification of EMS in the futureso as to increase the ratio of our green purchase.

The number ofcompanies basis

Amount ofbusiness basis< Purchase of green electricity certificate >What is green electricity?
Electricity of electrical
power company(thermal power generation)

Solar power

CO2• CO2 is emitted
In power generation • Exhaustible energy such as fossil fuel is used
• CO2 is not emitted
In power generation • Use of fossil fuel, etc. is reduced

What is a green electricity certificate?

ality
e qu
Sam ctricity
leas e“Environmental
value”

Electricity
Solar power generation ismore environment- friendly !

Mascot of “Matsuyama Sunshine Project”

By combining “environmental value (considered separately from electricity)” with electricity used on daily
basis in a form of “green electricity certificate”, use of green electricity generated by solar power isacknowledged.
Environmental values of public facilities with solar power system and general monitors are collected and soldas green electricity certificates. The earnings are used to further expand solar power generation in the future.
Institute of Energy Economics, Japan

Green Energy
Certification Center
Electrical power facility certification Power generation certificate
Power generation result report(provision of environmental value)

Issue green electricity certificate

Matsuyama-shi

Companies etc.

Expense of certificate

Price of environmental value

To expand solar power generation in the future

Public facilities(monitors)

Education and training for environment / Qualified persons
Environmental report< Approach to systematic environmental education and training >The principle to develop the recycle-oriented society and realize the
Low-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 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, 2012 is shown in the following
table.

Air
Pollution supervisor

Training forspecialist labors

Number of employees

Name of qualification

Consciousness education:
All employees

Water quality
Noise
Vibration

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

Officiallyqualified persons

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 to improvement of food self-sufficiency ratio >As global food issues increasingly become serious, the Ministry of Agriculture, Forestry and Fisheries established a“promotion project of national movement toward improvement of food self-sufficiency ratio”, regarding the rise in
consumption of domestic agricultural products as the most effective measure to increase the self-sufficiency ratio,
and established the “FOOD ACTION NIPPON promotion headquarters” in FY2008 as a base of the project.
Since its foundation, Iseki has contributed to growth of agriculture in Japan through mechanization of agriculture. As
a company firstly registered to the “FOOD ACTION NIPPON promotion headquarters”, we develop activities toincrease the food self-sufficiency ratio with themes of “local production for local consumption”, “low-cost agriculture”
and “food in the future”.

< Receipt of FOOD ACTION NIPPON AWARD in R&D/new technology section >“FOOD ACTION NIPPON AWARD” was established as an activities of “FOODACTION NIPPON” led by the Ministry of Agriculture, Forestry and Fisheries as an
approach to the rise in consumption of domestic agricultural products. It is intended toinvite approaches of business operators, associations, etc. to contribute to increase offood self-sufficiency widely from the public and give awards to excellent approaches.
Our “sparse rice transplanter” received the award for excellence in the R&D/new
technology section in FY2010. In addition, our “development of the industry’s first 7-row
type combine harvester ‘HJ7120’” received the award for excellence in the same
section in FY201 an FY2011 in succession. This means that our technologicalcapabilities were highly evaluated and, at the same time, our contribution to improve
food self-sufficiency ratio by energy and labor saving was recognized.

< Utilization of Exhibition Pavilions in Matsuyama and Kumamoto as places for dietary education >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. accepted about 5,800
people including elementary school students, local residents, and people from other countries for plant tours in FY2011. In eachexhibition facilities, we presented information concerning food in Japan with a panel corner of “increase of food self-sufficiency” and“local production for local consumption” and screening of a DVD “Ensuring the Future of Food” created by the Ministry of Agriculture,
Forestry and Fisheries “To secure the Future of Food” to dispatch information for increase of food self-sufficiency. Nearly half ofvisitors of the headquarters Exhibition Pavilion in the site of Iseki-Matsuyama MFG. Co., Ltd. are elementary and junior high school
students. It has been used for plant tours in social studies and been utilized as a “place for dietary education” for a long time.

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 2011
< Living together, cultivating together >Iseki Group exhibited agricultural machines and riding corners in “Farmers & Kids Festa 2011” held in Hibiya Park from
November 19 (Sat.) to 20 (Sun.) in 2011. In this event, held for the second time, a variety of booths livened up the site,
aiming at the recovery of Japanese agriculture and fishing industry and the communication of importance of food to citydwellers, especially children.

Outline• Date: November 19 (Sat.) to 20 (Sun.), 2011
• Place: Hibiya Park
• Organizer: Executive Committee for the 2nd Food and Agriculture Festa• Co-organizers :Japan Agricultural Corporations Association,:Japan Professional Agriculture Total Support Organization,
Japan Brand Agricultural Corporation, Japan Pork Producers Association

Events in the Iseki booth• Home gardening with electrical mini cultivator(ERENA)• Taking a commemorative photo with a tractor BIG-T• Riding agricultural machines• Demonstration of rice milling machine

Iseki booth

Taking a commemorative photo with a large-sized tractor

Operating ERENA

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 BIG-T 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
10 (Sat.) to 11 (Sun.) in 2012. “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. This year, just one year after the “Great East Japan
Earthquake”, a reconstruction support zone was also prepared.

Outline• Date: March 10 (Sat.) to 11(Sun.), 2012
• Place: Yoyogi Park
• Organizer: “Food in Home Province & Food in Japan” National Planning Committee• Co-organizers : Central Union of Agricultural Cooperatives,
National Federation of Fisheries Co-operative Associations,Japan Fisheries Association, NHK,
“Food in Hometown & Food in Japan” Prefectural Planning Committee

Events in the Iseki booth• Home gardening with electrical mini cultivator ERENA• Taking a commemorative photo with a tractor BIG-T• Riding agricultural machines• Demonstration of rice milling machine• Introduction of “efforts for restoration” of Iseki

Compact type coin-operated rice milling machines

ERENA enjoyed by whole family

Exhibition of products

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. A living doll of “Sanae-chan”, which is the mascot of our rice transplanter, made her first
appearance and gained much popularity among children.

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 firsttime and had a great time learning about agricultural machines with their families. 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.
Sanae-chanEnvironmental communication
Environmental report< Highest of environmental rating of Development Bank of Japan (DBJ) 6 times in a row >In March, 2012, ISEKI & CO., LTD. earned the highest rating (environmental consciousness notably progressive) of“DBJ Environmental Rating” of Development Bank of Japan (hereafter called “DBJ”) 6 times in a row.
“DBJ Environmental Rating” evaluates index of sustainable management of companies by a screening systemdeveloped 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.
Concretely, the following points were highly evaluated as excellent environment- friendly approaches that were
deeper than extended producer responsibility.
(1)Implementing the “eco-product certification system” from this year to tighten the environmental assessment standard
and make a hierarchy of environment-friendly products, and promoting development of environment-friendly agricultural
machines with high environmental performance in the entire lifecycle.
(2)Providing high-efficiency agricultural machines to reduce the use of chemicals harmful to living organisms in consideration
with biodiversity in business activities, which is considered to be very remarkable as environmental contribution to theentire society utilizing Iseki’s technology development capabilities.
(3)Deploying a collection system of used products and other industrial wastes nationwide with a recycling system for discarded
product and continuously increasing the number of types of collectable industrial wastes.

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

RatingEnvironmental
screening

Company

Approximately
120 items,
out of 250

Special 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< Execution of “clean activity” >As part of “Contribution to society and community”, which Iseki Group presents as our environmental policies for each district, ouremployees participate in cleaning activities in their district.

Iseki-Matsuyama MFG. Co., Ltd.

Iseki-Houei MFG. Co., Ltd.

Iseki-Kumamoto MFG. Co., Ltd.

Iseki-Niigata MFG. Co., Ltd.

Tobe Office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
627 (As of March 31, 2012)
151,000m2

Major products Tractors, Riding mower, Dryers, Engines<

Basic principles on environment

Recycling volume>

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.

< Action policy >Reduction volume
Final volume ofwastesFinal disposal rate
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)

1. Continuous improvement

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.

3. Mitigation of negative impacts on environment and prevention ofcontamination

1) Minimize volume of CO2 generated as a result of production andelectric energy 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 theprevention of pollution.

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.

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 fuel1400 Yasunaga, Mashiki-cho, Kamimashiki-gun, Kumamoto prefecture

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

Wastes and recycling

296 (As of March 31, 2012)

Area

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

Basic principles on environment

Recycling volume>

Reduction volume
Final volume ofwastesFinal disposal rate

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.

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)< Action policy >1. Continuous improvement

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.

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 fuel3-12-23 Nishiohsaki, Sanjo-shi, Niigata prefecture

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

Wastes and recycling

272 (As of March 31, 2012)
29,000m2

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

Basic principles on environment

Recycling volume>

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

Reduction volume
Final volume ofwastesFinal disposal rate
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)< Action policy >1. Continuous improvement

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

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.

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
275 (As of March 31, 2012)

Wastes and recycling

8,959m2

Major products Cultivators, Tillers, Walk behind mower, System rice cooker< Basic principles on environment >Recycling volume

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.

< Action policy >1. Continuous improvement

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.

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 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
and constituent members in the company and deal with theenvironment issues together through a publicity using company newsand environmental education.

Reduction volume
Final volume ofwastesFinal disposal rate
Rate of recycling(Unit : 1,000ton)

Volume of water use

Volume of water use(in per production volume)

Main locations

Technical Support & Solution Center
Training Center (Tsukubamirai-shi, Ibaraki)

Ibaraki Center (Ami-machi, Ibaraki)

Tokyo Headquarters (Arakawa-ku, Tokyo)
Kansai Office (Omihachiman-shi, Shiga)
Head Office (Matsuyama-shi, Ehime)
Tobe Office (Tobe-cho, Ehime)
Kumamoto Office (Mashiki-machi, Kumamoto)

Location name

Address

Headquarters

700 Umaki-cho, Matsuyama-shi,Ehime prefecture 799-2692

Tokyo Headquarters

5-3-14 Nishinippori, Arakawa-ku, Tokyo
116-8541

Tobe Office

1 Yakura, Tobe-cho, Iyo-gun,Ehime prefecture 791-2193

Kumamoto Office

1400 Yasunaga, Mashiki-machi, Kamimashiki-gun,
Kumamoto prefecture 861-2293

Technical Support &Solution Center

560 Aoki, Tsukubamirai-shi,
Ibaraki prefecture 300-2346

Training Center

560 Aoki, Tsukubamirai-shi,
Ibaraki prefecture 300-2346

Ibaraki Center

4818 Ami, Ami-machi, Inashiki-gun,Ibaraki prefecture 300-0331

Kansai Office602-1 Ohashi, Senzoku-cho, Omihachiman-shi,
Shiga prefecture 523-0016

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., 2012

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).