Environmental Report
Version: 2014

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

I N D E X
Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Outline of our business● Outline of our business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3● Major products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4● Global vision . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sociality report● Corporate governance and compliance . . . . . . . . . . . . . . . . 7● Aiming to respect human rights andfor a happy workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8● Employment and human resource development . . . . . . . . . 9● To achieve customer satisfaction . . . . . . . . . . . . . . . . . . . 10
● Contribution to local communities . . . . . . . . . . . . . . . . . . . 14
Environmental report“Environmental“EEnvnvirron
onm
me
en
nttal
al Reports”
Repor
ep
po
orrttss” refersrre
efe
ferss toto reports
re
ep
po
ort
ort
rts andan
ndpublications
publ
pu
ubl
bliic
ca
attio
ionss whichionswhhiicchh arearere periodically
per
erio
iodi
dicca
allllyy disclosed
diisc
d
sclo
lo
ose
ed by
by
business
busi
bu
sin
si
ne
ess
ess
s operators
ope
pera
ratto
orrs
s (corporations,
(co
corp
rpora
orrat
o
atio
atio
onss, organizations,
orrga
or
gani
ga
nizatizationzatitiononss,,
andandannd schools,
scch
scho
ho
ools
ollss,, etc.)oetcc.)) stating
statta
atiting
ng thethhee state
sta
tate
te of
of environmenen
nvviiro
onm
nmen
ental
ta
al burden
burd
bu
burd
rden
n causedcauausse
ed byy their
th
he
eir
ir business
bus
usin
ines
ines
ess activities,
accttiiviavitities
e ,
their
tth
hei
he
eir environmental
en
en
nvi
virro
vi
viro
on
nm
me
en
nta
tal policiespopolilicciiesoli
es andanndd efforts
effor
ffor
ff
orttss toto society.
soci
so
cie
etty.
ty.
y.

● Eco vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
● Second mid-term and long-term environmental targets
and results of FY2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
● Outline of management . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
● Environmental risk management . . . . . . . . . . . . . . . . . . . . 19
● Responses to stakeholders . . . . . . . . . . . . . . . . . . . . . . . . 20
● Green purchase / Green supply . . . . . . . . . . . . . . . . . . . . . 24
● Approach to design for environment . . . . . . . . . . . . . . . . . 25
● Business activities and environmental stresses . . . . . . . . 28
● Reduction of environmental stresses . . . . . . . . . . . . . . . . . 29
● Examples of initiatives to reduce environmental burden . . . 32
● Approach to preserve biodiversity . . . . . . . . . . . . . . . . . . . 34
● Environmental performance of four factories . . . . . . . . . . 35

According
Accc
Acc
ccord
orrd
rdin
rdi
ing
ng to
ng
t the
tth
he website
webs
eb
e
b
bsite
iitttee ofof thetth
he Ministry
Mini
in
nistr
ni
istr
st y ofstof thethhee Environment
Envvir
En
Env
Enviro
iro
iro
ronm
nme
n
m
men
ntt

The
Th
he coverage
c ove
co
vera
age
ge of
of thisthisthis report
rep
epo
epor
orr t
Term
2013
Terrm
Te
m covered:
cover
ove
ov
erred
d:
201
13 Fiscal
Fissc
Fi
cal
cal
al YearYeeaar (From((F
Froom April,
Aprriilil,l, 2013
Ap
Apri
201
013 toto March,
Marrch,chh, 2014)
2014
20
14))
Activities
Acttiivviiti
Acties
es covered:
ccov
ovver
ere
ed
d: Domestic
Dom
omes
omes
esttiic activities
ac
a
ctiv
ttiivviittiiieesesOrganization:
Iseki
O rg
Or
ga
an
niiza
zati
tion
on
o
n:
n:
Ise
seki
ki & Co.,
Co
o.., Ltd.,
Lttd.
Ld., affiliates,d.,aff fiaf ililiaatte
ess, domestic
dom
dome
do
me
e
est
sti
st
tic
ic covered
cover
ee
ed
d
distributors
disdiisstrsttrriibbutu toorrs andand salessalesa
les subsidiaries
su
ubs
bsiid
diia
arriieessMaterials
Mate
Ma
teri
rial
ial
als used:
us
sed
ed:
Environmental
E vi
En
viro
ron
nm
me
en
nta
tal Report
tal
Repo
Re
ep
po
orrtt Guidelines
Guiuidedelil nenes (2012((2
201
012 edition)ededittioon)n)
GRI
GRI G3GR
G3 Sustainability
Sus
ustta
ain
inab
abilillit
itty Reporting
Re
R
ep
po
ort
r tin
ing Guidelines
ing
Guid
Gu
i de
ellin
in
nes
es
es
Guide
Gu
G
uiid
de on
on Items
Itte
ems
ms to
to be
be IncludedIn
nccclu
lu d
lu
de
ed in
in Environmental
Envnviirro
on
nme
ment
nttal
all Reports
a
Rep
epor
orts
r ttss (Version
( Ve
V rs
rsio
io
ion
on 3)
Picture
P ic
Pic
Pict
ict
cctt uurrre
ure
e taken
take
tta
tak
ak
a
ake
ke n atke
a t InoIn
nono Town,
Tow
To
T
o
ow
w n,
n , Agawa
Ag
gaw
gawa
ga
a
awa
aw
w a District,
wa
Diis
Dis
D
i s tr
tri
ttric
rric
ri
iicc tt,, Kochi
Ko
oc
och
ochi
c hi
ch
chi
h i Prefecture
Prrre
Pre
P
e fectu
fect
ffec
fe
ect
ec
e
cctt ureurreureMessage

Aiming to bring about a prosperous community,
constantly growing in affluence
In recent year, global environmental problems, such as climate changes due to global
warming and frequent occurrence of extreme climate phenomena, are worsening. As
evidenced by the fact the Fifth Assessment Report of the United Nations Intergovernmental Panel on Climate Change (IPCC) issued in September 2013 expressly stated thatthe increase in greenhouse gas emissions resulting from human activities is the main
factor in global warming, the importance of global environmental conservation efforts
is increasing. We need to reduce the load on the environment by effectively andefficiently utilizing limited resources and energy and hand over our beautiful earth to
the next generation.
Since its foundation in 1926, Iseki & Co., Ltd. has made exertions to improve productivity through agricultural machines that promote agricultural streamlining and reduce
fatigue farming work. Refining our skills that we have cultivated, we also develop products of high precision, high efficiency and high durability, while taking various
environmentally-conscious approaches in each stage of development, manufacturing,logistics, use, and disposal of products, as well as in office work. In order to convey the
results of these approaches in an easy-to-understand manner, we have set environmentfriendly design standards, and we are promoting the implementation of an “eco-productcertification system” in which environmental labels are used only for products that havepassed these standards. In addition, we are actively working towards local revitalization, including the restoration of abandoned farming fields that are increasing every
year, and also we are providing products to Europe, North America and Asia in responseto the recent global needs to increase food production.
Iseki Group positions the contribution to achieving a recycling-oriented society as oneof our most important management tasks. We implemented tangible targets and management systems from initial product development phase in an effort towards environmental preservation. Such efforts include the implementation of an Environmental Management System (EMS)
throughout the entire Iseki Group, from our manufacturinglocations to the headquarters and sales subsidiaries. We willcontinue our efforts to realize a “prosperous community,
constantly growing in affluence.”
We are pleased to have an opportunity to publish this 2013
report of our approach and actions to preserve the global
environment. Iseki Group carries out now and in futureyears, our social responsibilities to even greater improve theenvironmental quality through the group-wide environmental management activities. We would like to ask for yourfurther support, assistance, and cooperation to make our
President
activities successful.

Noriyuki Kimura

Outline of our business
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, 2014)

Employees

Consolidated: 6,295 (as of March 31, 2014)
Our main business activities are manufacturing and sales of following products:
Cultivating machinery .............Tractors, Cultivators, High-clearance multipurpose vehicles, Lawnmowers
Planting machinery.................Rice transplanters, Vegetable transplanters
Harvesting machinery.............Combine harvesters, Binders, Harvesters
Processing machinery ...........Rice hullers, Dryers, Rice milling, Rice graders, Vegetable harvesters
Others.....................................Farming implements, Spare parts, Agricultural facilities

Business activities<Sales composition by product category as of March, 2014 at the end of fiscal year>< Achievement trends (consolidated)>(100 millions of yen)(100 millions of yen)

Other
agriculturalbusinesses
21%

Cultivating andmowingmachinery
30%

Planting
machinery
10%

March
2010

March
2011

March
2012

Net sales

March
2013

Serviceparts andfarming
implements
22%

March
2014

Harvesting andprocessing
machinery17%

Ordinary income<Financial statements>(As of March 31, 2014)

Summary of consolidated balance sheet
Account

Amount (in mil. JPY)

Account
Notes and accounts payable-trade(From April 1, 2013 to March 31, 2014)

Consolidated statement of income
Amount (in mil. JPY)

Account

Amount (in mil. JPY)

Net sales

Cash and deposits
Notes and accounts
receivable-trade
Inventories
OthersShort-term loans payable

Cost of sales

Long-term loans payable

Gross profit

OthersSelling, general and administrative expenses

Total Current Liabilities

Operating income

Total Current Assets

Capital stock

Non-operating expenses

Capital surplus

Ordinary income

Property,plants and equipment
Intangible assets
Total investments
and other assets

Retained earnings

Extraordinary gains

Total Noncurrent Assets

Non-operating income

Total Assets

Treasury stock

Extraordinary losses

Total other comprehensive income

Income before income taxes

Minority interests

Income taxes

Total Net Assets

Minority interests in income (loss)

Total Liabilities and Net Assets
Note: The amount shown is the number after rounding the fractional part.

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

Major products
Outline of our business
Tractors

Rice transplanters

Combine harvesters

Machines for exports

Line-up of other products

Cultivator/tiller

Inside ridge processor

Onion transplanter

Binder

Dryer

Rice huller

Weighing and separating machine

Coin-operated rice milling machine

Hydroponics facility

Global vision
Outline of our business
Iseki products have been used in more than 100 countries and regions in a variety of fields, including of course agricultural
machinery as well as machinery for mowing, light civil engineering and environmental conservation. Going forward, in addition
to the existing markets of Europe, North America and China, we will enhance our overseas expansion with an eye on Southeast
Asia, where mechanization is progressing rapidly, and aim to quickly achieve a 20% overseas sales ratio.

Belgium (Brussels)
N.V. ISEKI EUROPE S.A.
Germany (Meerbusch)
ISEKI-MASCHINEN GMBH
DEUTSHLAND

China (Xiangyang and Changzhou)
DONGFENFG ISEKI AGRICULTURAL
MACHINERY (HUBRI) Co., LTD.
(Joint enterprise): Countries Iseki products
are currently sold: Countries where Iseki
products have been soldat some point in the past
: Iseki office locations

Thailand
ISEKI SALES (THAILAND) CO.,LTD(Joint enterprise)[Europe]1966 Established the Dusseldorf representative office
1967 Began exporting Iseki products
1971 Established Iseki Europe in Belgium, and later
expanded the sales area into Eastern and Southern
Europe.
We provide small, high performance products that meetthe market needs mainly in the landscaping market(tractors and riding mowers) and agricultural tractor
market.

Indonesia
PT. ISEKI INDONESIA(Joint enterprise)[China]
1980s
2003
2011
2014

Exported 3,000 rice transplanters as a part of ODA activities
Established Iseki-Changzhou MFG. Co., Ltd.
Established Dongfeng Iseki Agricultural Machinery (Hubei) Co., Ltd.
Established Dongfeng Iseki Agricultural Machinery Co., Ltd.

In the Chinese market, where agricultural mechanizationis advancing rapidly, through the establishment of
Dongfeng Iseki Agricultural Machinery Co., Ltd. in 2014,
we will aim to expand our business by developing andbringing to market new products and establishing a
supply chain.

USA (Atlanta, Heston)
AGCO Group (MASSEY FERGUSON)[Asia and Oceania][North America]
1977 Began export of tractors
Currently, we are an OEM supplier of compact and utility
tractors to AGCO, a global agricultural machinery
manufacturer.
In 2014, we will launch an economy tractor manufactured
in Indonesia.

1965
2003
2004
2005
2012
2014

Began export to Oceania
Began selling tractors in Thailand
Began exporting large combine harvesters to Korea
Established a representative office in Bangkok, Thailand
Established Pt. Iseki Indonesia
Established Iseki Sales（Thailand）

We will aim to establish the Iseki brand by quickly
stabilizing operations at Iseki Indonesia, which started
production in 2014, and strengthening the sales
capabilities of Iseki Thailand, which recently beganselling Iseki products.

Corporate governance and compliance
Sociality report< Approach to corporate governance and compliance >Corporate governance system<Corporate governance organizational chart>
General shareholders’ meetings
Appointment/
removalAppointment/
removalBoard ofDirectors
Directors

Audit

Number of Directors: 10(One of which is external director)
Number of Corporate Auditors: 5
Appointment/
removal/supervision

Appointment/
removalCorporate
Auditors Meeting
Corporate Auditors
5 (Four out of which areexternal auditors)

Audit

Accounting Auditors
Audit

President

Audit(Cooperation)

Chairman of theBoard of Directors

Directors’ Operation
Committee

Management
Supervisory Committee

Number of committee members:
15 (Director and Corporate Executive
Officers, and Corporate Officers andManagers appointed by the President)

Corporate Officers
Internal
audit

Affiliates, Each department

Internal Control &Audit Department(Operation execution system)

We operate the management system as shown in the organizational charton the right by focusing on quick and accurate response to changes of the
management environment to maintain fair management.
<Board of Directors> Board of Directors makes decisions on basic mattersin relation to management as well as matters set forth in laws, regulations andthe articles of association. Also, the Board holds regular Board of Directors
meetings once a month in order to make prompt decisions and extraordinary
Board of Directors meetings as necessary. Regarding the execution ofbusiness, the corporate officers fulfill their duties smoothly as the persons
responsible for the various operations appointed to each executive officer at
Board of Directors meeting. In addition, with the aim of managing thebusiness in a sound manner, Directors’ Operation Committee meetingscomprised of all director and corporate executive officers and corporate
officers appointed by the President, and deputy division manager of each
Division are held twice a month, in principle, in order to share the latest
information and discuss and report on how the business should be expanded,
the existence of risks and measures to prevent and avoid any existing risks.
<Corporate Auditors Meeting> Corporate Auditors are comprised of five
Corporate Auditors, four out of which are external auditors (and one is anattorney). Corporate Auditors attend the Board of Directors and Management
Supervisory Committee meetings. In addition, they set their own audit policy
and audit the operations and assets of the company and our subsidiaries incooperation with the Internal Audit Department and accounting auditors, andthey strictly check the important agenda items at the Directors’ Operation
Committee meetings and the status of operation execution by Directors.

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 andreview 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 by auditors

Compliance system
Under the director in charge of compliance, a company-wide compliance team takes initiative to provide compliance training continuously toprevent injustice and scandals from occurring by spreading consciousness of compliance to all the executives and regular employees.
In addition, we have established the “Management Supervisory Committee” with the chairman of the board of directors as thechairman, all the directors as members and all the auditors as observers to check the thoroughness of compliance.
<Main actions for the compliance system><Fundamental principles of Iseki Group Code of Ethical Behavior>(1) Establishment of the “Iseki Group Code of Ethical Behavior” and distribution to
1. To comply with laws and regulations
everyone in the group, and continuous execution of training based on the code
2. To respect basic human rights(2) Spreading consciousness of compliance by issuing and posting
3. To respect common sense“Compliance News” regularly
4. To disclose information properly to fulfill social(3) Establishment and use of Group Internal Communications System
responsibility for explanation(Ethical Hotline)
5. To make efforts for environmental preservation

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

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

Concerning a bidding of facility construction, Iseki has received an on-site inspection by Japan Fair Trade Commission in
November 2013 for suspicion of an Anti-Monopoly Act violation. We will fully cooperate with the inspection conducted by theCommission and work to thoroughly implement compliance with laws and regulations as well as to enhance internal control.

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.

Education on respect for human rights

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

We distribute the “Code of Ethical Behavior” to all theemployees of Iseki Group and educate them to behave withrespect for human rights in the society and among people.
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

Internal communications system
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) Iseki personnel division route and (3) externalroute to 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 aim
for thorough management of safety and health across Iseki
Group.
Since the working environment differs from office to office,we work on activities for safety and health according to theactual 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
While recognizing the great impact the working environment hason the health of employees, we strive to create a comfortableworking environment by holding various seminars at each officeand other activities.
●Iseki-Kumamoto MFG. Co., Ltd.
• Topic: Preventing and responding to strokes-Responses by you and those around you• Date:
Wednesday January 15, 2014
• Lecturer: Dr. Yoichiro Hashimoto(Head of the medical examination section andneurology at Kumamoto City Hospital)<Statistics of industrial accidents>
Transition of severity rate (FY2009 to FY2013)* Severity rate: Workdays lost per 1,000 working hours* Target: Iseki and four factories●Tobe Office• Topic: Preventing and handling heat stroke• Date:Wednesday, July 10, 2013
• Lecturer: Mr. Yasunari Agario[Otsuka Pharmaceutical Co., Ltd.](A Rev. Medical,A general instructor)

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 and abilities
of employees to a maximum extent, which will lead to the development of our business.

Recruitment
Iseki Group strives to secure necessary human resources tocarry out its social mission and recruits people based on theirpersonalities and abilities.
Above all, we focus on recruiting those who can respond to
full-scale development of global strategies in order topromote the increase of overseas sales which is one of ourmost important issues.
We also positively work on mid-career recruitment of people
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 thegroup and draw out maximum performance.
After education of new employees, we provide detailed
education, including training divided by job in each divisionand each company, foreign language training, succession ofskills and techniques with the introduction of the meistersystem, and a corresponding education system to promote
self-development as well as training divided by level to theentire group according to skills of employees.
In addition to the Training Center (Tsukubamirai-shi, Ibaraki
prefecture) that has developed human resources withtraining aiming at enhancement of sales and service
capabilities, we will establish Iseki Technical Training Center(ITTC, Matsuyama-shi, Ehime prefecture) as a training basefor human resource development for manufacturing sites inautumn 2013 to improve capabilities on sites.

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 “noovertime” day.
(4) Implementation of child care supporting measuresthrough General Business Owner Action Plans based on
Act on Advancement of Measures to Support Raising
Next-Generation Children

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

<<Introduction of meister>>
Iseki-Matsuyama
MFG. Co., Ltd.
Machinery Tool Section

Mr. Kazuya Okino● Meister job category:
MaintenanceDiversity
As globalization of business deployment 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 that is friendly
to everyone.

I belong to the Machinery Tool Section at Iseki-Matsuyama
MFG. Co., Ltd. Since joining Iseki, I have been in charge ofequipment repair and improvement as part of theelectrical maintenance in our manufacturing locations.
Based on my experience, I think communication within
the workplace is even more important than having skills,
techniques and knowledge.
Currently, there is a variety of equipment in our
manufacturing locations, from old equipment to newly
installed equipment, and it is my job to analyze equipment
failures. As a Meister, while placing importance oncommunication, I transfer my skills to younger generations,
including improving their knowledge and skill in relation toequipment maintenance.

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

Product evaluation meeting

Service

Promotion of consistent quality assurance activities DR (design review)

Production

Securementof service
quality

Design quality control system

Preparation for production

Produce optimal
design quality

Quality improvement deliberation council/quality improvement meeting

Securement of
manufacturing
quality

Development/design

Realization of product quality to fulfill expectations of customers

Elaborate optimal
design quality of
product that meets
customer needs

Product planning Product Planning Meeting

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

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

Quality control evaluation system• CS (customer satisfaction)• Quality information system• Spring and autumn productimprovement meeting< 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 first priority
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 thewebsite of ISEKI CO., LTD. to draw attention of customers
and provide them with information.

Note

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

http://www.iseki.co.jp/news<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 ofLand, Infrastructure and Transport

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 and maintained
vehiclesIn-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 for the safe use of themachines by customers with sales persons and service
persons of sales subsidiaries and successors of dealerships
as trainees.

Consumer consulting service<Contact Us page of consulting service>
The “Contact Us” page is on our website. Please visit the following address.

http://www.iseki.co.jp/contact<Inquiries to website by e-mail>In the “Contact Us” page of the website of ISEKI CO. LTD., we welcome a variety ofinquiries from customers concerning (1) products and (2) the entire company, etc.
In “Technical inquiries to manufacturer” of “Inquiries as to product,” our TechnicalSupport & Solution Department serves as a window of technical inquiries as toproducts and responds to inquiries from customers with responsible technology
departments of the relevant products.
There were about 850 inquiries by e-mail in FY2013 and we have replied andresponded to all of them.

<Number of inquiries by e-mail in
FY2013: Approx. 850>

<Telephone consulting for technical inquiries as to products>
For the above “Inquiries as to products”, we directly respond to phone calls from
customers in addition to “inquiries by e-mail”. There were about 500 inquiries byphone in FY2013.
We receive various inquiries and consultations not only from customers but also fromvarious organizations such as administrative institutions, electric power companies,
design offices, insurance companies, and police stations. The person in charge
responds to them with respect.

<Number of inquiries by phone in
FY2013: Approx. 500>

Product

Inquiry rate

Tractors
Cultivators/tilllers
Rice transplanters
Combine harvesters
Others

Product

Tractors
Cultivators/tillers
Rice transplanters
Combine harvesters
OthersInquiry rate

To achieve customer satisfaction
Sociality report< Agri-Hero support project >Iseki is working on the “Agri-Hero support project” to support farmers by introducing not only agricultural machines but also
proposing multifaceted farming activities, including production management and cultivation technologies.
The agricultural environment in Japan requires the use of larger fields and reduction of production costs. In addition, a shift in
cultivation is happening from staple food varieties of rice to rice for animal feed, wheat and soybeans. Shifting from growing rice
to growing other crops brings about a significant change in the cultivation method itself, in addition the need for improved
precision in management work, including field management, work process management and cultivation management.
Up to now, we have supported agriculture by providing agricultural machinery and maintenance work, but going forward, we willcontribute to agriculture in Japan according to its changes by making proposals on the soft aspects of general farm management.
Full-scale training began in April 2014, and regarding training facilities, we are planning to enhance the seminar rooms andagricultural machinery maintenance workshops at the Training Center in Ibaraki prefecture.
<Overview of the Agri-Hero support project>
1. “Agri-Hero” refers to the farmers who support agriculture in Japan. We will support Agri-Hero on the farm by providing not only
agricultural machines but also by making proposals on the soft aspects of general farm management, including production
management and cultivation technologies.
2. We will educate human resources within Iseki Group who can think and make proposals for profitable farming. After the
training, they will be able to• Make proposals on soil preparation, which is the foundation of crop cultivation• Make proposals on technology for cultivating soybeans, wheat, vegetables and rice as well as on low-cost production
technologies• Perform work management and business management using ICT technologies<Scenes from the training>
Training on
growing soybeans

Training on operating
agricultural machinery

Training on
growing vegetables

Training on growing
directly seeded rice

< Participating in the Ministry of Agriculture, Forestry and Fisheries “NOGYOJOSHI” Project >Iseki participated in the “NOGYOJOSHI” Project sponsored by the Ministry of Agriculture, Forestry and Fisheries. The objectiveof this project is to provide society with information, new products and services through collaborations between female farmers
and corporations.
The project we are working with is called “YUMEARU NOGYOJOSHI OEN” Project in which women share the difficulties they haveas farmers and provide support. To be specific, Iseki makes proposals on and provides support with the way to effectively selectand use agricultural machines appropriate for each region and crop as well as cultivation methods. In addition, Iseki offers
opportunities to exchange information on farming and the maintenance of agricultural machinery through training and seminars.

Held the first “YUMEARU NOGYOJOSHI OEN” Project
On June 16th and 17th, 2014, Iseki held the first “YUMEARU NOGYOJOSHI
OEN” Project at Tsukubamirai-shi, Ibaraki prefecture, which is where ourTraining Center is located. Fourteen female farmers from all over thecountry participated in this project, and we provided a seminar on the safeuse of agricultural machines and selecting the appropriate machines.
(1) Held a seminar on the use and maintenance of tillers, cultivators andbrushcutters(2) At the workshop, a meeting was held for exchanging opinions on whatshould be included in the user’s manual of the agricultural machines, aswell as on the items noticed during the seminar, questions female
farmers have in their daily activities and requests in relation to theagricultural machines from their perspectives
Iseki will strive to contribute to the agricultural development by solving questions
related to agricultural machinery and farming through these seminars.

To achieve customer satisfaction
Sociality report< Iseki Agrisupport Initiative >We commercially developed “Iseki Agrisupport,” a system that supports better farm management of the customers based on thehistory and analysis of the agricultural machine’s operations.
As farmland is becoming more concentrated in the hands of a smaller number of farmers and the forms of farm management arechanging, a system that supports field work based on data analysis is required for effective farm management and reducing
production costs. In order to respond to such requests, Iseki supports the agriculture with a future from soft aspects through theintroduction of “Iseki Agrisupport,” which supports customers’ farm management by displaying the track of work, fuel efficiency
and operating time utilizing a list of daily field work and internet map.

Key features
1. Excellent portability
Information on the work and machines can be obtained through the operator’s smartphone or tablet.
2. Low running cost
The only cost is the cost of the initial unit. No royalties are required regardless of how many smartphones or tablets are used.
(A separate contract is required if the internet map will be used.)
3. Functions(1) Support for pre-work inspection
Fertilizer
and chemicals
The status of the machine being used (battery voltage, air cleaner, fuel level,
The application amount ofeach fertilizer/chemical
can be controlled.
engine oil pressure, etc.) can be checked before starting to work, thereby
making the performance of inspections and maintenance easy.
(2) Work results
Improve
Process details of the work performed each day, including the hours of work,
efficiency
area worked, amount of fuel used, and details of the work, are displayed as
figures and track of work and can be managed, so it is possible to improve
Farm field
Processes
efficiency and prevent missed work.
Operation results are
Processes are recorded andrecorded and used for
any waste and inconsistency
fieldmanagement.
can be checked.
(3) Hours of work and distance traveled
The hours of work and distance traveled of the machine can be seen at a
<Support work management>
glance.
(4) Analysis of the work
It is possible to perform analyses by work type (engine stop, work stop, turnon/off PTO, run, etc.) and engine load as well as an analysis of operations.
This leads to an improvement in work efficiency.
(5) Amount of fuel used and fuel efficiency
The amount of fuel used and fuel efficiency can be checked at a glance, which
can assist in reducing costs, such as fuels costs.
(6) Alert information
All alert information from machine is recorded and displayed. By taking
measures in advance, accidents can be prevented before they occur.
<Confirm at a glance>< Cloud service for agricultural producers initiative >Iseki has reached an agreement to collaborate with Fujitsu Limited in the development
and provision of cloud services for agricultural producers.
We will provide “Iseki Smart Farmers Support (Iseki version of Akisai),” which wasdeveloped by incorporating the know-how we have accumulated from customer
feedback to “’Akisai’ Cloud for the Food and Agricultural Industries,” a SaaS-based
solution for agricultural production management being provided by Fujitsu, the industry
leader in agricultural production systems.
By entering information about field work through the network from a computer or mobile
terminal, it is possible to reduce the work load of recording data on field work andgrowth. We will support initiatives directed at improving farm management ability bymaking farm management, production and quality visible.
By entering information into “Iseki Smart Farmers Support” based on the field work
records left in the tablet after using Agrisupport, the information can be smoothly linked.

Iseki Smart Farmers Support

Internetconnection

Plan

RecordImprove and review

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

Support for revitalization of deserted farmland in Wakayama prefecture
Iseki Group has joined in the “Home of companies” system in Wakayama prefecture
and conducted supporting activities for resurgence of “hatake-gonbo” in the Nishibata
area in a mesomountainous region of Hashimoto-shi, Wakayama prefecture.
The “Home of companies” system is a project of Wakayama prefecture that aims at
promotion of local production for local consumption in rural regions and local
landscape preservation, etc.
“Hatake-gonbo” is a big, fragrant burdock root that had been cultivated in thisNishibata area since the Edo period (1603-1868). However, cultivation died out atthe beginning of the Showa period (1926-1989) because working in steep-sided
fields was extremely laborious.
About 80 years later, residents of the Nishibata area decided to revive hatake-gonbo
using deserted farmland in order to reinvigorate the region. We are proposing acompletely mechanized system that eliminates the heavy labor required for soil
preparation, seeding, management and harvest.
This is the second year since the launch of this project, and we continue to support
the revival of more deserted farm land than the previous year as well as improved
yield and quality.
The residents of the local community were happy with the large, fine hatake-gonbothat grew, and they are working to expand production directed at the creation of thesixth industry, such as the development of products using hatake-gonbo, as well as
invigorate the region.
Iseki Group will further continue to support these activities through agricultural
machinery.

Deserted farmland

Harvested hatake-gonbo

Support for the revival of deserted farmland in Yamaguchi prefecture

Soybean seeding

As one of local regeneration activities, “Green Co-op Yamaguchi” in Yamaguchi
prefecture started a business to produce agricultural products by themselves toprovide their union members with safe and secure agricultural products.
For this purpose, they regenerate the deserted farmland in the prefecture andchallenge cultivation of soybeans, sticky rice and wheat. Iseki Group supports themwith this restoration of deserted farmland and provides cultivation techniques.
They also have implemented trial cultivation of agricultural products in order toestablish another primary source of revenue. The purposes are improvement ofcultivation techniques of farm producers and provision of safe and secure
agricultural products produced by themselves to union members. Fall brought alarge harvest, and the union members participated in picking the vegetables.
Iseki Group makes proposals and gives guidance about revitalization of deserted
farmland, sparse rice cultivation, and Note) Soybean 300A techniques by utilizing
agricultural machines.

Note) “Soybean 300A techniques” are plowing/sowing techniques to avoid moisture damage that is a factor
of unstable yield amount (unit crop) per unit area.
“300” of “300A” means that the yield amount per 10 are is 300kg. “A” means quality A class (1 and 2classes), aiming at high quality and much yield amount.

Field of wheat growing

Contribution to local communities
Sociality report< Cultivation support to a company that has newly entered agriculture >NANKAIKOGYO, Inc. that runs a recycling business of consumables for copying machines, etc. at the foot of Ashigara Mountain in
Kanagawa prefecture established “NANKAI Farm” in 2009 as a new business, entering agriculture from a totally different business.
From the establishment of NANKAI Farm, Yanagita Iseki Co., Ltd., a member of Iseki Group, has supported them proactively
with farming in addition to agricultural machines. Under this situation, NANKAI Farm requested us to give guidance about “onion
growing” and our “Agri-Business Support Department” supported the entire process of onion growing from preparation of soil toharvest, resulting in securement of a sufficient yield amount.
In addition, NANKAI Farm started a new initiative last year in which they grew the local variety of soybeans “Tsukui-zairai” andpromoted the creation of the sixth industry using the soybeans to make tofu. Those who have eaten the tofu made with the rare
Tsukui-zairai soybeans say it tastes very good, and overall the tofu has been received well. This year, NANKAI Farm plans todouble the area planted with Tsukui-zairai. Iseki also supported the wheat cultivation, and it was a good harvest.
With a motto of “contribution to community,” NANKAI Farm intends to expand their business, considering that success inagriculture leads to regional vitalization. We will continue to support “agriculture with dreams” with the aim of further improvementof efficiency in agriculture.

Spraying the soybean field

Harvesting wheat< Cultivation technical support directed at increasing production of regional specialty goods >A production cooperative comprised of JA and representative growers of Noto Dainagon
Azuki beans, a regional specialty products of Okunoto, established an experiment farmin the Karakasamachi area of Suzu-shi in Ishikawa prefecture. The aim of the initiative is
to increase the production volume of Noto Dainagon Azuki, which has been low the past
several years, and various training will be conducted from seeding to harvest under theguidance of the Suzu Agriculture Office.
In addition to the performing seeding with a large tractor during the seeding training heldin July, Iseki Group provided training on farming software in order to support theinitiatives aimed at a stable harvest of Noto Dainagon Azuki.
Going forward, we will continue to partner with the local community and support
initiatives directed at the development and revitalization of regional agriculture.
Seeding of Azuki beans< Support for Ehime Prefecture Children’s Exhibit of Invention and Devices >The awards ceremony of the 72nd Ehime Prefecture Children’s Exhibit of Invention and Devices
was held on October 31, 2013. Also this year, many children in elementary and junior high schools
as well as in boys and girls invention club entered this exhibit and 5 special prizes, including Iseki
Prize, and other awards were given to 35 works in total.
We participate in the review of this exhibit and give Iseki Prize every year to contribute to society.
This year, “environmentally-friendly and safe curve mirror cleaner” invented by a sixth grader was
selected for Iseki Prize. When a sensor detects that the curve mirror has become wet with rain, abrush automatically cleans the curve mirror, which is installed in a high location.

Iseki Prize winner

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Second mid-term and long-term environmental targets and results of FY2013
Environmental report

Iseki Group has defined the second mid-term and long-term environmental targets from FY2011 to2015 and work on them. Hereby, we report on the results of our major activities of FY2013.
1. Second mid-term and long-term environmental targets and accomplishments in FY2013
Item

Second mid-term and long-term environmental targets

Accomplishments in FY2013

To reduce the volume of energygenerated CO2 emissions per
production volume by 6% 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 volume of CO2
per production volume were 91% and 99% respectively against the second-termand long-term environmental target, falling short of the goal. In the coming fiscal
year, it is expected to achieve the goal by making a large-scale investment for
facilities and upgrade to energy-saving facilities.

Reduction oflogistics CO2
emissions

To reduce the volume of energygenerated CO2 emissions pertransportation volume (10,000tonkm) by 3% or more compared tothe average result of three years
from FY2008 to FY2010

The achievement rate of the volume of CO2 emissions per transportation volume
was 116% against the second mid-term and long-term environmental target.

Reduction of totalmaterial input

To reduce the total volume ofmaterials input per production
volume by 3% or more compared tothe average result of three years
from FY2008 to FY2010

The achievement rates of the total volume of materials used for production and thevolume of materials used for production per production volume were 101% and110% respectively against the second mid-term and long-term environmental target.

Reduction of
volume ofwater used

To reduce the volume of waterused preproduction volume by 33%
or more compared to the average
result of three years from FY 2008
to FY 2010

The achievement rates of the total volume of water used and the volume of waterused per production volume were 85% and 92% respectively against the second
mid-term and long-term environment target, falling short of the goal. In the coming
fiscal year, it is expected to achieve the goal by repairing water piping.

Restraint of
toxic chemical
substances

Reduction ofused volume ofchemical substances
subject to PRTR law

To reduce the used volume ofchemical substances subject to the
PRTR law per production volume
by 12% or more compared to theaverage result of three years from
FY2008 to FY2010

The achievement rates of the total volume of use of chemical substances subject to
the PRTR law and the used volume per production volume were 86% and 94%
respectively against the second mid-term and long-term environmental target,
falling short of the goal. In the coming fiscal year, it is expected to achieve the goalby promoting change to paint and thinner with less chemical substances subject to
the PRTR law and regeneration of thinner, etc.

Formation ofrecyclingoriented society

Reduction of
volume offinal wastes

To reduce the volume of final
wastes preproduction volume by
15% or more compared to theaverage 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 22% and 24% respectively, significantly falling short of thegoal.
In the coming fiscal year, it is expected to achieve the goal by promoting recyclingof molding sand.

Realization of a low-carbon
emission society

Reduction of CO2
emissions

Restraint ofFormation of
manufacturing
recyclingresource
oriented society

Evaluation

Relevantpages

Evaluation

Relevantpages

2. Mid-term and long-term targets of business activities and results of FY2013
Classification

Item to be implemented

Accomplishments in FY2013

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 action plans by making use of the characteristics of each department toimprove the quality of activities.

(2) Implementation of environmental education

We specified and promoted environmental education of the year based on thepolicy of each general manager.

(3) Responses to stakeholders

We communicated state of initiatives Iseki Group is working on to all stakeholders
to build mutual trust.

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

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

(2) Development of products to reduce
environmental stresses

We promoted development of products to reduce environmental stresses byimproving the durability, fuel and working efficiencies, etc. with use of the productassessment system.

(3) Establishment and expansion of productassessments and execution of LCA evaluation

We promoted environment-conscious designing that allows grasp of the volume of
CO2 emissions in the entire cycle from parts manufacturing to disposal, etc. byexecuting product assessments and LCA evaluation.

(4) Provision of information contributing toenvironmental preservation

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

(5) Development of products in consideration of
biodiversity

We promoted development of products in consideration of biodiversity andformation of a recycling-oriented society.
Evaluation criteria: Achieved: Nearly achieved: Not achieved

Outline of management
Environmental report

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

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

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

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

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

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

[ Environmental Management Organization ]CEO

Directors’ Operation Committee

Environment Management OfficeEnvironmental Planning Group Meeting

Product Assessment Committee

Tokyo district

Matsuyama (Tobe) district

Matsuyama (Wake) district

Kumamoto district

CEO ofeach company

Director assigned
to General Affairs

CEO ofIseki-Matsuyama
MFG.

CEO ofIseki-Kumamoto
MFG.

CEO ofIseki-Niigata
MFG.

Environment
Manager

Environment
Manager

Chief Operation
OfficerDevelopment &Production
Division

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

Environment
Manager

Environment
Manager

Environmental
Management
Committee

Environmental
Management
Committee

Sales Subsidiaries

Environment
Manager

Environment
PromotionCouncilEnvironment
PromotionCouncilEnvironmental
Management
Committee

Niigata district

Environment
Manager

Environmental
Management
Committee

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 theenvironment-related laws and regulations. As shown in the table below, we have cleared all the self-directed control standards in
FY2013, making progress toward reduction of environmental pollution.

Measured item

Units

Volume of suspended substances (SS)

Water
quality

Air

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 2013

Resultin 2013

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

Resultin 2013

mg/L
Less than 1

Volume of biochemical oxygen demand (BOD)n-hexane (Mineral oil)ppm

Less than 1Less than 0.5

Particulate

g/m3N

Less than 0.01

Less than 0.01

Nitrogen oxide (NOx)ppm

Particulate (electric casting melt furnace)g/m3N

Less than 0.01-: shows standard N/A or not applicable machines<Frequency of environment data measurement>
Measuring frequency

Machine, equipment, and place

Measured item

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

Industrial effluent
Casting melt furnace

Air

Boiler
Lot boarder line

Once a month-: shows standard N/A or not applicable machines

Environmental accounting
Iseki Group deals 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 ofbusiness through information disclosures to the public. The amount invested for environmental preservation costs (pollution
prevention, environmental preservation, and resource recycling costs) in 2013 was 130 million JPY. The total amount ofexpenses was 454 million JPY that we made through some investments into diesel engine gas emission control and fuelefficiency improvement, mainly for prevention of air pollution to comply with the laws and regulations of Europe, U.S, Southeast
Asia and Japan.
Environment preservation cost
Category

Major programs

Economic effects resulted from the environment preservation measures

Amount ofinvestment(in mil. JPY)

Expenses(in mil. JPY)

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

Sewage treatment(2) Environment preservation cost Inverter installation(3) Resource recycling cost

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

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. andTobe office)
Period of data : April, 2013 to March, 2014

Details of effect(1)

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

Reduction of environmental stress substances(3)

Reduction of energy consumption

Amount (in mil. JPY)

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 38,500,000 JPY. The physical effect was
the reduction of CO2 emission by 1,860 tons, reductionof water consumption by 91,400 tons, and recycling ofwastes by 2,220 tons.

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

compliance to environment-related laws and encouragement<toStrictobtain official qualifications and 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 toobserve them strictly.
At the same time, we encourage our employees to have theofficial qualifications needed for the promotion of developing
recycling- oriented and Low-Carbon emission society, such as
managers in charge of pollution supervisor, chief electricalengineer, and boiler engineers.
The number of employees qualified for official environmental
qualifications as of the end of March, 2014 is shown in thefollowing table.

Consciousness education:
All employees

Number of
employees

Name of qualification
Air

Training forspecialist labors

Water quality

Pollution supervisor

Noise
Vibration
Energy control engineer
Energy controller
Chief electrical engineer

Officiallyqualified persons

Boiler engineer
High pressure gas production safety supervisor
Industrial waste treatment facility engineer
Specific chemical substances chief operator
Hazardous material handler

System for education and training for environment / Qualified persons

The number of officially qualified persons for environment< 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 ofenvironmental preservation, awareness of every employee isrequired. We strive to raise the awareness of the environment
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
to enhance internal audit. We have been offering our employees
in-house education and, if necessary, unified and systematictraining and education by external institutions as we think it isimportant to up-grade the skills and capabilities of our employees
in order to spiral up in PDCA of the environmental management
system.

< Environmental training >It is required to complete training and education to a certain level
for any employees assigned to particular jobs such as casting,heat treatment and painting, based on training programs for eachjob 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.
Lecture for environment

Responses to stakeholders
Environmental report< Opening of ISEKI Dream Gallery >Next year, Iseki & Co., Ltd. will celebrate the 90th anniversary since its founding in 1926. In commemoration of thisevent, the Matsuyama Exhibition Hall was reopened after renovation as the “ISEKI Dream Gallery.”
The former Matsuyama Exhibition Hall opened in 1980, and since its opening, a large number of visitors, including farmers
from around the country and overseas, visited the museum. In addition, numerous elementary and junior high school
students from Ehime prefecture visited the museum as a part of their social studies field trips or dietary education.
The new gallery introduces Iseki’s initiatives over the years to work hand in hand with and support agriculture aroundthe world, such as “agriculture that supports dietary needs and the contribution of agricultural machinery.”

Entrance hall

Visitors

Exhibition of classic products

A display of the classic products thatconvey Iseki’s spirit, including thenostalgic TB23 Tractor and HD50, theworld’s first combine harvester.

A rice huller, which was the first piece ofmachinery manufactured by Iseki,
decorates the center of the entrance hall.
The founder’s passion to “free farmers
from the toils of farming” is introduced.

Concept of the ISEKI Dream Gallery <3 STEP TOURS>The 90-year history of Iseki, which started from the founder’s passion tofree farmers from toils of farming, is introduced from the viewpoints of“manufacturing and technology” along with the efforts toward the“agriculture in the future.”Also, the gallery is located next to the Iseki-Matsuyama MFG. Co., Ltd., one of
the flagship factories, and visitors can observe actual “manufacturing” at theplant. The gallery is arranged in an “Iseki 3-Step Tour” in which visitors canstart from the “philosophy behind the founding of the company,” followed by“current manufacturing and technologies,” and then initiatives for “agriculturein the future” so that they can obtain a deeper understanding.

Dream Gallery
Entrance hall

Observe thefactory and ITTC

“Learn about the philosophy
behind the founding of Iseki”“Learn about Iseki’s
manufacturing”

Dream Gallery
Exhibition area
“Learn about Iseki’s
technologies andtheir initiatives for the
agriculture in the future”

At the Iseki-Matsuyama MFG Co. Ltd., which is the starting point for ISEKI & CO., LTD., and at exhibitions in the
Kumamoto & Niigata factories, we convey information on increasing food self-sufficiency by displaying panels
explaining about “how to improve food self-sufficiency” and “eat locally,” exhibiting the local products of each region,and providing materials regarding food.

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

Responses to stakeholders
Environmental report< Beautification campaign at each sales company ><Initiatives of the Oguni office, Kumamoto branch, Iseki Kyushu>
As part of the SANAE Beautification Campaign, Iseki Kyushu held a model office contest with theaim of improving awareness and the level of beautification at all offices.
At the Oguni office, which won first prize, the head of the office showed leadership by leading themembers of the office and personally cleaning the office. They advised with each other on
noticing overlooked trash and the cause of dirt and created a high awareness of beautification.
These efforts led the office to be awarded first prize.
Through the SANAE Beautification Campaign, we will further our efforts to create a pleasantworking environment and an office where customers want to visit.

Keyword

As a part of Iseki’s 90th anniversary activities, we implemented a beautification campaign called“Nationwide SANAE Beautification Campaign” successively at each office around the country.
Through this beautification campaign, we aim to create pleasant working environment as wellas “offices with hospitality” where customers will feel comfortable, safe and trustworthy!

Declaration of shiny
store and shiny smile!

“Nationwide SANAE Beautification campaign”

Exhibition at the Oguni office< Farmers and Kids Festa 2013 >Iseki Group exhibited agricultural machines and riding corners in “Farmers & Kids Festa 2013” held in Hibiya Park from
November 9 (Sat.) to 10 (Sun.) in 2013. Professional farmers gathered in this event from all over Japan to transmit
messages of vital Japanese agriculture to urban children as “a bridge between children and agriculture.” This time, we
had 58,000 visitors.

♦Outline • Date

: November 9 (Sat.) to 10 (Sun.), 2013
• Place: Hibiya Park
• Organizer : Executive Committee for Farmers & Kids Festa(Co-organizers: Japan Agricultural Corporations Association, Japan Brand
Agricultural Corporation, Japan Professional Agriculture Total Support Organization)

Iseki booth

SANAE is popular again this year!

Trial use of ERENA, an electrical mini cultivator< 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
8 (Sat.) to 9 (Sun.) in 2014. “Food in Hometown & Food in Japan” that was started from 2001 is an event aiming toreview local food cultures and hand them on the next generation. On this day, we were blessed with good weather
most of the time and had many visitors.

♦Outline • Date

: March 8 (Sat.) to 9 (Sun.), 2014
• Place: Yoyogi Park
• Organizer : “Food in Home Province & Food in Japan” National Planning Committee(Central Union of Agricultural Cooperatives, National Federation of Fisheries
Co-operative Associations, Japan Fisheries Association, NHK)
“Food in Home Province & Food in Japan” Prefectural Planning Committees

Responses to stakeholders
Environmental report< Establishment of ITTC: Iseki Technical Training Center >ISEKI & CO., LTD. established the ITTC Iseki Technical Training Center in October 2013 as a training center for the
purpose of the development of human resources and succession of skills in the manufacturing fields to cultivate
front-line skilled workers, leaders, supervisors and engineers at overseas locations which will be further expanded in
the future.
The new building was built in the premises of Iseki-Matsuyama
MFG. Co., Ltd., and it has an environmentally-friendly structure
in consideration of the environment and energy saving,
employing (1) bright and simple appearance, (2) design inconsideration of acceptance of trainees from overseas, and (3)use of LED for all the lighting. The center has already started
acting as a sending base that plays a central role ofmanufacturing technologies of Iseki Group and is open for
visits any time.
<Training programs>
1. Manufacturing leader training course
2. New employee training course
3. Overseas employee training course
4. Floor improvement exercises (Floor supervisor training course)
5. Technical skills test and qualifying examination course
6. Special technical skills training (in-house certification)

View of ITTC

Holding of the first “Manufacturing leader training course”
Objectives: Provide human resource training aimed at developing future
manufacturing leaders and masters of technical skills. Participants will learn basic knowledge and skills of general manufacturing, and aim to pass level 2 or higher in technical skills test
after the course.
● Participants: Young employees with 2-4 years of experience in the company
who have high potential to become future leaders● Training period : October 2013 – February 201412 employees for the first course< Highest of environmental rating of Development Bank of Japan (DBJ) eight times in a row >In March 2014, ISEKI & CO., LTD. earned the highest rating (“environmental consciousness is notably progressive”)
of the “DBJ Environmental Rating” of Development Bank of Japan (hereinafter “DBJ”), one of our stakeholders, eighttimes in a row.
“DBJ Environmental Rating” evaluates index of environmentally sustainable management of companies by ascreening system (*1) developed by DBJ. It is the first loan menu in the world which offers preferential interest rateaccording to the point granted. Evaluation and rating are made based on not only information such as environmental
reports but also on the responses to questions provided by the company itself.
<Evaluation results>
The following points were evaluated as our efforts to improve the level of environmental
management. As a result, we earned the highest rating eight times in a row.
(1) Regarding environmental management, consideration is placed on the environment
through the provision of products and services supported by independent technicaldevelopment capabilities, as evidenced by the large number of patent publications andpatent evaluations.
(2) Efforts are being made to preserve the ecosystem through “farmland decontamination
measures demonstration project” in addition to improving efficiency and saving resources
by promoting low-cost agriculture and sparse cultivation.
(3) Environmental Performance Indexes have improved over the last three terms, including
greenhouse gas emissions, as a result of the introduction of a solar power generation
system at Tobe office and other initiatives.

Certificate

Green purchase / Green supply
Environmental report< Green purchase >We promote green purchase to prioritize products withenvironmental labels such as eco marks and GPN(Green Purchase Network) standard products whenpurchasing commercialized commodities such as officesupplies and electric and electronic devices. The total
amount of green purchase of entire Iseki Group was 93%
of the total purchase in FY2013.

Resource
extraction

Manufacturing

Ratio of green purchaseNon-green purchase7%

Distribution

Disposal
Green purchase
93%

Recycling

Use andconsumption< Green supply >[Iseki Group Green Supply Guideline]<Basic concept of the initiative>
In order for Iseki Group to perform true environmental preservation activities, it is necessary to promote environment-friendly
design throughout the entire life cycle of Iseki products, including product purchases, manufacturing, distribution, product use,
disposal and recycling.
As a part of these initiatives, based on our recognition that “green supply” is an important factor in addition to traditional factorsof quality, cost and delivery period, we have established Green Supply Guideline to actively promote green supply.
<Specific initiatives>
1. Objectives
Based on this Guideline, we will jointly promote environmental preservation with our vendors and suppliers and preferentiallyconduct transactions with and purchase products from vendors and suppliers who have passed the criteria. At the same time,
we will promote the expansion of green supply with the aim of establishing a sustainable resource recycling society.
2. Basic concept for carrying out the initiatives(1) In addition to quality, price, delivery period, service and technology development capability, we will ask the vendors andsuppliers to evaluate themselves using the “environmental management evaluation sheet” from the perspective of1) their “initiatives for environmental preservation” and2) “environmental features of the products” to be delivered,and we will then evaluate and judge each supplier and vendor based on the results thereof and preferentially purchaseproducts with an overall high level of environmental friendliness.
We will evaluate and select vendors/suppliers and products based on two criteria of “initiatives for environmental
preservation of the vendor/supplier,” which set forth the environmental initiatives in the vendor/supplier’s businessactivities including research & development, production and sales; and “environmental features of the products,” which are
related to the products to be delivered.
(2) The results of self-evaluation will be used as information for green supply when selecting/determining vendors/suppliers
and products.
(3) In cases where the selection criteria are not met, we will ask the vendors and suppliers to make voluntary improvements.

<Results of green supply in FY2013>
We presented our “Green Procurement Guideline” to our vendors and suppliers and are jointly
promoting the expansion of green supply with the aim of environmental preservation andbuilding of a sustainable resource recycling society.
In FY2013, the green purchase ratio was 62% of the total number of vendors and suppliers andthe amount of green purchase from these suppliers and vendors was 88%. Iseki will strive torequire our suppliers and vendors to acquire certification of EMS in the future so as to increase
the ratio of our green purchase.

Ratio of green purchase

The number ofcompanies basis

Amount ofbusiness basis

Approach to design for environment
Environmental report
In order to perform product design that takes into consideration environmental preservation, including volume reduction of products,
restraint of use of harmful substances, reduction of environmental stresses in each stage of manufacturing/use/disposal, and LCA
assessment, we conduct product assessments of all products during the development stage using the following evaluation items.
Also, we have implemented an “eco-product certification system” in which, based on the evaluation results, environmental labels areused only for products that have passed our own environment-friendly design standard. This “eco-product certification system” isintended to provide information on reduced environmental stresses of the certified products to customers and all stakeholders more
plainly.

<Evaluation item>
1. Volume reduction of product2. Restraint of use of harmful and 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 inmanufacturing stage

7. Reduction of environmental stresses inlogistics 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 is made with the total score of improvement.

< Initiatives of the TM Tractor series for Europe >In Europe, 20PS and smaller tractors are widely used by small-scale individual farmers and for landscaping. The TM3185 (16PS)
was developed as a product that promotes environment-friendly design, including being smaller and lighter in weight thanprevious models and lower CO2 emissions compared to the company standard.

Lightweight compact tractor
Lightweight tractors (tractors weighing less than 525kg), which arefrequently driven on public roads in Europe for use in hauling andlandscaping, can acquire type approval without a rops (safety frame).
While previous tractors required a rops, the new model TM tractors canacquire type approval without a rops because of its light weight, and it canalso be used under and in between trees in orchards. Also, this lightweighttractor has been equipped with an engine that consumes less fuel comparedwith previous models with the aim of reducing environmental stresses.
TM3185

Reduction in the number of parts and weight
By focusing on reducing the number of parts and unifying
parts for each functional structure and by changing to lightermaterials, Iseki realized● Compared with the previous model• 34% reduction in the number of parts• 18% reduction in weightand commercialized a “small but still a tractor” while
maintaining the same level of performance and functions as
the previous models.

<Reduction in the number of parts><Reduction in weight>

Reducedby 34%

Previous
model

Reducedby 18%

Previous
model

TM3185

Reduction in CO2 emissions through the use of LCA evaluations<Reduction in CO2 emissions>
Based on the results of the LCA calculations performed
according to Iseki’s criteria (total amount of CO2 emissions
from the manufacturing of raw materials to disposal of the
product), CO2 emissions have been reduced by 12%compared to the previous models.

Reduced by 12%

Previous
model

TM3185

TM3185

Approach to design for environment
Environmental report< Initiatives for the Japan Series 5 row/6 row combine harvester >An environmentally-friendly 5 row/6 row combine harvester, along with the addition of a DPF (Diesel Particulate Filter) on the common
rail type four-cylinder water-cooled engine, the HJ was developed with a consideration for reducing the number of parts, weight andenvironmental stresses, while maintaining the high precision, high efficiency, and high durability performance of the JAPAN brand thathas been supported by principal farmers and large-scale farmers as the top of the made-in-Japan combine harvesters since its launch
in 1995.

Improvement in farm work efficiency
The 5 row/6 row combine harvester HJ realizes high efficiency throughits big-diameter and long threshing drum with 462mm maximum
diameter as well as a super twin eight threshers with four chambers forthreshing, diffusion, secondary threshing, and collecting free grains fromthe threshed waste straw. In addition, the wide air blow with three airducts provided by the large-diameter winnower, as well as two-levelsorting with the jump rack and optimum control of the winnower andsieves by detecting the amount of grains being threshed on the swinging
shelf with a flow sensor lead to the realization of high-precision sorting.
Based on the above features, work efficiency has been improved by 24%
compared with our previous model.

Reduction in the weight of the machine and the number of parts

Combine harvester ＨJ 6098

<Reduction in the number of parts>

The weight of HJ 6098 is lighter by 4.5% and shorter in length by 210mm
compared with the previous model, making it a more lightweight andcompact model.
In addition, we removed the running counter gear case, changed thelocation of the air conditioner condenser, revised the structure of thegrain tank, and worked to reduce other parts. These efforts resulted in
the reduction in the number of parts by 12.6% compared with theprevious model.

Reduction by 12.6%

Previous
model

HJ 6098< Initiatives for the NP Series riding rice transplanter >To reduce emissions of carbon dioxide (CO2), promotion/enlightenment activities of energy-saving agricultural machines are in progress.
For example, the Ministry of Agriculture, Forestry and Fisheries has prepared “Energy saving manual for agricultural machines.”
The new NP Series riding rice transplanter has been developed as an environment-friendly product that contributes to the energy
saving and reduction in environmental stresses by improving the work efficiency when sparse planting, as well as reducing the numberof parts and improving the recyclability of parts. In addition, this series has passed our environment-friendly design standard and has
thus been certified as an “eco-product.”

Improvement of work efficiency when sparse planting
By changing the track that sets the eccentricity based on the spacing
between plants (37/42 plants/m3), the running speed when sparse
planting has been increased, and as a result, the work efficiency whensparse planting has been improved by 7% compared to the previous
model.

Reduction in the number of parts
By unifying and simplifying parts such as planetary gear, vibration
damper cam and rotary case, as well as by narrowing down thefunctions, we reduced the number of parts by 12% compared with ourprevious model.

Rice transplanter NP60

Certified as an “eco-product”
Riding rice transplanter NP70 – 50 has been certified as an “eco-product” since it improves work efficiency by 7% when sparse
planting compared with our previous model as a result of the track change when sparse planting.

Approach to design for environment
Environmental report< Receipt of FOOD ACTION NIPPON AWARD in R&D/new technology section >Since its foundation, Iseki has contributed to growth of agriculture in Japan through mechanization of agriculture. As the firstcompany registered to the “FOOD ACTION NIPPON Promotion Headquarters,” we develop activities to increase the foodself-efficiency ratio with themes of “local consumption of locally-produced foods,” “low-cost agriculture” and “food in the future.”“FOOD ACTION NIPPON AWARD” was established as a part of the activities of “FOOD ACTION NIPPON” led by the Ministryof Agriculture, Forestry and Fisheries as an approach to increase the consumption of domestic agricultural products. It is
intended to invite approaches of business operators, associations, etc. to contribute to increase of food self-efficiency widely fromthe 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 FY2011. In FY2012, we were awarded for the “development of the industry’s first far-infrared heat recycling dryer,” and in
FY2013, the GEAS NTA tractor received the award for excellence for “being a tractor that can be driven like a car and increases
the efficiency of farm work.” This means that our three key products received the award and our technological capabilities werehighly evaluated and, at the same time, our contribution to improve food self-sufficiency ratio by energy and labor saving wasrecognized.

Sparse rice transplanter

7-row combine harvester

Tractor GEAS

< NTA Tractor was awarded the “Special Development Award” by the Japanese Society of Agricultural Machinery and Food Engineers >Iseki’s GEAS NTA Tractor was awarded the “Special Development Award,”
which is awarded to the most excellent developments, at the 2014
“Development Award” sponsored by the Japanese Society of Agricultural
Machinery and Food Engineers. Last year, the GEAS NTA Tractor also
received the award for excellence at 2013 FOOD ACTION NIPPON AWARD
held by the Ministry of Agriculture, Forestry and Fisheries. This award was theresult of the high regard for improvement the new technologies, including thedual clutch transmission mounted that realizes high power transmission
efficiency, have on productivity and as well as the contributions to safe andsecure farm work by women and elderly people.
The receipt of these two awards is the evidence of the fact that GEAS NTA
Tractor is highly regarded both academically and commercially. Next year
marks our 90th anniversary, and receiving such prestigious awards in theindustry is an encouragement for all employees in Iseki Group. We willcontinue to strive to develop “products that please our customers” and“products with an environment-friendly design.”

NTA Tractor

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 andindustrial wastes (OUTPUT) as an index in reducing discharge of such chemical substances and industrial wastes for realizing
business activities with less environmental stresses. The following shows figures of undertakings for 2013.

Energy689,000GJ
Electricity 55.5milliion kWh
Kerosene
958kL
Heavy oil
688kL
Butane gas
543,000m3
City gas
154,000m3
Gasoline
66kL
Light oil
35kL

Business activities
Development- Promotion of environment-conscious
designing
Procurement

Water

294,000m3
Tap water
83,000m3
Under ground water 211,000m3- Green purchasing

Discharge water

Production

Discharge volume 136,000m3
BOD
244kg

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

Chemical substances
Subject to PRTR law

Atmosphere
Discharge volume of CO2 30,300t
Discharge volume of soot and dust 1,050kg
Discharge volume of Nox 1,780kL
Discharge volume of Sox 2,470kL

156t

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

Total substances
Main raw materials 57,600t

Chemical substances
Substances subject to PRTR
144t
law Discharge/Transfer volume

Industrial wastes
Industrial wastes Total volume 10,700t
Recycled volume6,990tReduction volume
636t
Final volume3,090tProducts distribution to distributors
Transported volume 33.5million ton-km
Discharge volume of CO2 4,030t

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 to 2013, 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 87 in FY2013 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 landfilled wastes.

Item

2005
2013
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[ Environmental stress integrated index:
the lower the index is, the smaller environmental stresses are ]Eco-efficiency

Based on the Panel Method of Professor Nagata at Waseda
University, we adopted the average value of the integration
coefficients for Japan presented by LCA experts,
environmental experts and enterprise experts for integrationof environmental stresses, with the value of CO2 defined as 1.

Eco-efficiency index(2005 as reference year)

Environmental stress integrated
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)

Reduction of environmental stresses
Environmental report[Reduction of CO2 emissions by reducing 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 FY 2008 to FY2010, as a reference value.
In FY2013, the achievement rates of the total
volume of CO2 emissions and the volume ofCO2 per production volume were 91% and 99%
respectively against the reduction target of 6%
compared with the reference year, slightly
falling short of the goal.
We will continuously strive to reduce the volumeof CO2 emissions.

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

TargetResultAchievement
rate
TargetResultAchievement
rate

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

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

Houei
Niigata
Kumamoto
Matsuyama[Reduction of CO2 emissions by reducing energy use in product distribution]
We grasp the environmental stresses in distribution of
Iseki products and parts and take actions to reduce them.
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 FY 2008 to FY2010,as a reference value.
In FY2013, the achievement rates of the total volume of
CO2 emissions was 116% per 10,000 ton-km against the
reduction target of 3% compared with the reference year.
We have promoted modal shift and are making efforts to
reduce the total volume of CO2 emissions. Although themodal shift rate has been flat since FY2009, when it wassignificantly increased, it was further increased to 52% in2013.

Volume of CO2 emissions resulted by using energy in product distribution
Average ofresults of
3 years

1,000ton-km
Total volume (t-CO2)
TargetResultAchievement
rate

Rate
(t-CO2/10,000ton-km)
Modal shift rateNote) Modal shift rate = (railway ton-km + sea freight ton-km) ÷ total ton-km[Reducing total material input]
The four factories of Iseki Group reduce totalmaterial input such as raw materials,
production supporting materials, purchasing
parts, etc. to promote energy saving activities.
We have established and promoted thesecond new mid-term and long-term plan (from
FY2011 to FY2015) with the average of three
years, from FY 2008 to FY2010, as a reference
value.
In FY2013, the achievement rates of the total
volume of materials used for production andthe volume of materials used per production
volume were 101% and 110% respectively
against the reduction target of 3% comparedwith the reference year, exceeding the goal.
We will continuously strive to reduce the total
volume of materials used for production.

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

TargetResultAchievement
rate
TargetResultAchievement
rate

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

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

Houei
Niigata
Kumamoto
MatsuyamaReduction of environmental stresses
Environmental report[Reduction of volume of water used]
By installation of the water circulation facility andimplementation of countermeasures for waterleakage, the four factories of Iseki Group strive to
reduce the volume of water used.
We have established and promoted the second
new mid-term and long-term plan (from FY2011 toFY2015) with the average of three years, from FY
2008 to FY2010, as a reference value.
In FY2013, the achievement rates of the total
volume of water used and the volume of water used
per production volume were 85% and 92%
respectively against the reduction target of 33%
compared with the reference year, falling short of
the goal.
Water shortage is becoming a more serious issue
than food shortage or exhaustion of fossil fuels withthe population growth expected in the future. We
will continuously strive to reduce water usage.

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

TargetResultAchievement
rate
TargetResultAchievement
rate

Total volume(ton)
Per production
volume(ton/100 million yen)
Volume of water used

Volume of water used(in per production volume)

Houei
Niigata
Kumamoto
Matsuyama[Reduction of volume of chemical substances used]
The four factories of Iseki Group strive to reduce
chemical substances subjected to PRTR law by
replacing paint and thinner with ones which containless toxic chemical substances stipulated andintroducing regeneration facilities of paint thinner.
We have established and promoted the second
new mid-term and long-term plan (from FY2011 toFY2015) with the average of three years, from FY
2008 to FY2010, as a reference value. In FY2013,
the achievement rates of the total volume of use
and the used volume per production volume were86% and 102% respectively against the reduction
target of 12% compared with the reference year,
and the targets for the year were achieved.
We will continuously strive to perform appropriate
control and management of such chemical
substances and reduce the volume of use.

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

TargetResultAchievement
rate
TargetResultAchievement
rate

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

Volume of chemical substances used(in per production volume)

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

FY2001
Matsuyama Kumamoto Niigata

XyleneTolueneEthyl benzene
Water-soluble zinc compound
Dichloromethane
1.3.5-Trimethylbenzen
Total

FY2012
Houei

Total Matsuyama Kumamoto Niigata

FY2013
Houei

Total Matsuyama Kumamoto Niigata

Houei

Total

Reduction of environmental stresses
Environmental report[Reduction of volume of final wastes]
To build a recycling-oriented society, four factories of Iseki Group have been contributing to an effective usage of their resources bypromoting reduction, reuse and recycling of the waste generated at the factories.
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 FY 2008 to FY2010, as a reference value.
In FY2013, the achievement rates of the total volume of final wastes and the volume of final wastes per production volume were 22% and
24% respectively against the reduction target of 15% compared with the reference year, significantly fall short of the goal. This is because
we conducted landfill operation of molding sand. We will promote the recycling of molding sand and strive for reduction of the total volume
of final wastes.

Total volume of wastes at 4 factories
Average ofresults of
3 years

WastesTotal volume (t)Per production volume(t/100 million yen)
TargetResultAchievement rate
TargetResultAchievement rate

Total volume (t)Volume offinal wastes

Per production volume(t/100 million yen)

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

Volume of final wastes(in per production volume)

Recycling volume
Reduction volume
Volume of final wastes

Waste disposal flow
The waste disposal flow in FY2013 is as shown below.

Waste disposal flow: FY2013(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

Note 1) 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.
Note 2) Rate of the volume of final wastes = volume of final wastes (D+H) ÷ total of waste emissions (A)Note 3) Rate of the recycling volume = recycling volume (B+G) ÷ total of waste emissions (A)Examples of initiatives to reduce environmental burden
Environmental report
At the four factories and Tobe office of Iseki Group, with the aim of the effective operation of existing facilities and establishmentof facilities that take into consideration environmental preservation, we are proactively making large-scale capital investments. By
updating the facilities, we are striving to improve the operating rate of facilities, reduce costs, and stabilize quality while at thesame time reducing environmental burden by reducing CO2 emissions through the use of less electricity, etc.

< Initiative for reducing environmental burden by updating the casting equipment >At Iseki-Matsuyama MFG. Co. Ltd., when updating the casting equipment, we changed the poured iron mold manufacturing methodfrom the method where pressure is applied from above to the method where pressure is applied from above and below (double
squeeze casting) with the aim of reducing mold manufacturing defects. In addition, by automating molten iron pouring (automatic
pouring), the amount of excess iron was reduced and thus the energy required to melt the iron was reduced.
These updates to the casting equipment enabled us to reduce the use of 2 tons of excess iron per day, and as a result, we were able
to reduce the amount of power, water, slag and green sand used in addition to improving casting quality.
★ Period when the molding equipment was installed: July 2012
★ Period when the pouring equipment was installed: September 2013
<Double squeeze casting>
Double squeeze casting reduces mold manufacturing defects because the casting mold is applied even pressure from above and below.
<Automatic pouring>
By measuring the weight of iron to be poured using a weight sensor rather than the operator’s judgment, the amount of excess ironcan be reduced.
[Annual reduction]• Reduction in the amount of electricity used:approximately 1,740,000 kＷh• Reduction in the electric utility rate:
approximately 18,100,000 yen• Reduction in CO2 emissions:approximately 683t-CO2• Reduction in the amount of water used:approximately 1,770t• Reduction in the use of slag and green sand:approximately 7t

Casting equipment

Injection equipment< Initiative for reducing environmental burden by updating the wastewater treatment facilities >At Iseki-Matsuyama MFG. Co. Ltd., industrial water and drinking water is discharged to the sewage system following wastewater
treatment. When updating the facilities, in order to prevent leaks of sewage water by accident, we installed a dike in the wastewater
treatment facility, to bring the facility up to the standard required in the amended Water Quality Pollution Control Act. In addition, byaltering the wastewater treatment method from the traditional standard-activated sludge process to immersion filter process, we aimed
to reduce the environmental burden as follows.
(1) Reduce the amount of electricity used by improving wastewater treatment capacity (approximately double that of the ofstandard-activated sludge process)(2) Reduce the use of chemical substances regulated under the PRTR law by changing the flocculating agent from ferric chloride to
PAC (polyaluminum chloride)(3) Improve maintenance by making the facility compact★ Period when the wastewater treatment facility was established: May 2014
< Standard-activated sludge process>
The method of purifying water by mixing air with sewage and wastewater to stimulate micro biotic activity and decompose theorganic matter.
<Immersion filter process>
The method of purifying water by adding carriers to which microbes adhere during the standard-activated sludge process. As theprocess does not require a lot of air, and the equipment is compact.
[Annual reduction]• Reduction in the amount of electricity used:approximately 110,000 kWh• Reduction in the electric utility rate:
approximately 1,140,000 yen• Reduction in CO2 emissions:approximately 43t-CO2

Wastewater treatment facility

Examples of initiatives to reduce environmental burden
Environmental reportfor reducing environmental burden by minimizing the risk of environmental< Initiativecontamination
through the updating of wastewater treatment facility >At Iseki-Kumamoto MFG. Co. Ltd., wastewater (mainly waste coating liquid) is discharged to a river after wastewater treatment. When
updating the wastewater treatment facility, we aimed to meet the standard required in the amended Water Quality Pollution Control
Act, including raising the water pipes used to transport wastewater from coating equipment to the wastewater treatment facility above
ground. In addition, by updating the wastewater treatment facility, we aimed to reduce the environmental burden as follows.
(1) Minimize the risk of river/soil/groundwater pollution due to accidental wastewater leak(2) Reduce the amount of industrial waste by installing a fully automatic filter press machine for the industrial waste generated
during the treatment process, and reduce the cost for industrial waste treatment.
(3) Save energy and reduce management costs by integrating chemical wastewater treatment facility for the electrodeposition
coating(4) Save energy by controlling the number of rotations based on the load using an inverter motor for the air pressure feeder used
to stimulate microbes by mixing gaseous oxygen in the water-purifier tank.
★ Period when the wastewater treatment facility was established: June 2014

[Annual reduction]• Reduction in the amount of electricity used:approximately 27,000kＷh• Reduction in the electric utility rate:
approximately 243,000 yen• Reduction in CO2 emissions:approximately 16,200㎏-CO2• Reduction in the amount of industrial waste by removing water:
approximately 13.5t• Reduction in the cost for industrial waste treatment:
approximately 305,000 yen
Wastewater treatment facility< Initiative for reducing the amount of electricity used and CO emissions through solar power generation >2

At the Tobe office, we aimed to reduce the amount of electricity used
and CO2 emissions by switching over a portion of the electricity used
to solar power through the installation of solar power equipment on theroof of a laboratory building.
In addition, a 42-inch display was installed in the lobby of design
management building to make the amount of electricity generated bysolar power visible, and it is our hope if all employees check thedisplay in real-time, it will contribute to the enhancement of employee
awareness of energy saving and environmental preservation.
★ Period when the solar power equipment was installed: February 2014

[Annual reduction]• Reduction in the amount of electricity used:approximately 22,000kWh• Reduction in the electric utility rate:
approximately 272,000 yen• Reduction in CO2 emissions:approximately 8,200㎏-CO2

Solar panels

42-inch display

Approach to preserve biodiversity
Environmental report[Iseki Group’s biodiversity guidelines]<Basic concept of the approach>Iseki Group regards the approach to preserve biodiversity as an important challenge in environmental management, while
recognizing that we benefit from blessings of nature produced by biodiversity (ecological system service) and contribute to
the realization of a sustainable society co-existing with nature in cooperation with various stakeholders, including the local
communities, by promoting business activities and providing products and services that take into consideration biodiversity
and continuing to use and preserve the biodiversity.

<Specific initiatives>
1. Give consideration to the effect on biodiversity in all stages of business activities, and strive to preserve biodiversity
by reducing the harmful environmental burdens generated by all offices.
2. Endeavor to preserve biodiversity by providing safe and easy-to-use agricultural machines and facilities that take
into consideration the preservation of biodiversity and support initiatives to establish sustainable agriculture in Japanand protect the natural environment, including farmland and rivers.
3. Endeavor to promote technological development based on natural law and traditions, and strive to develop andspread technologies that contribute to the biodiversity preservation.
4. In order to make the initiatives for biodiversity preservation more effective, endeavor to communicate with various
concerned parties, including stakeholders and local communities, and share an awareness of biodiversity.
5. Educate employees about the natural environment, and endeavor to raise awareness in society as a whole that willlead to biodiversity preservation.

< Tree planting initiative >Iseki-Houei MFG. Co. Ltd. agreed with and participated in the activities of “Ehime CO2 reduction eco-activities coordination project of
the Ehime Corporation Association.” The office participated along with many other similar mined companies in the tree-planting event
conducted as part of the project.

• Date:March 23rd, 2014
• Location: Befu No.1 and No.2 public playgrounds in Matsuyama-city,
Ehime prefecture (North side of the playground)
The Ehime Corporation Association is a special member of the “Promotion Group of ‘Town Development with Forests’” (launched inAugust 2010) led by the Iyo Bank in Ehime prefecture. The “Promotion Group of ‘Town Development with Forests’” carries out
tree-planting activities in company-owned land and public land in the town to “grow real forests near ourselves to leave an environment
for health growth of children to the next generation,” in cooperation with the companies that are working on preservation of local naturalenvironment.

Environmental performance of four factories
Environmental report

Iseki-Matsuyama MFG. Co., Ltd.

< Company profile >< Environmental data >Volume of CO emissions resulted
by using fossil fuel2

Address
Number of
employees
Area

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

Wastes and recycling

700 Umaki-cho, Matsuyama-shi, Ehime prefecture
590 (As of March 31, 2014)
151,000m2

Major products Tractors, riding tillers, Lawnmowers, Dryers, Engines< Action policy >Recycling
Final wastes

1. Continuous improvement

Rate ofrecycling

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

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)

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 use
2) Reduce wastes and segregate them for collection and recycling3) Reduce and control chemical substance optimally
4) Product design to consider the environment
These purposes and targets shall be set up within a technically andeconomically possible range, reviewed on a regular basis in order todeploy them into business activities, and aim to improve thecompany profit on top of the reduction of environmental stresses andthe prevention of pollution.

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

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

1, 3, 5- Trimethylbenzene
Dichloromethane

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

Water-soluble zinc compound
Ethyl benzene
TolueneXyleneEnvironmental performance of four factories
Environmental report

Iseki-Kumamoto MFG. Co., Ltd.

< 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)

Wastes and recycling

1400 Yasunaga, Mashiki-cho, Kamimashiki-gun, Kumamoto prefecture
279 (As of March 31, 2014)
217,000m2
Head-feeding combine harvester,

Major products Multi-crop combine harvesters, Carrot harvesters< Action policy >Recycling
Final wastes

1. Continuous improvement

Rate ofrecycling

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

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)

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 theenvironment issues together through a publicity using company newsand 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Environmental performance of four factories
Environmental report

Iseki-Niigata MFG. Co., Ltd.

< Company profile >< Environmental data >Volume of CO emissions resulted
by using fossil fuel2

Address
Number of
employees
Area

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

Wastes and recycling

3-12-23 Nishiohsaki, Sanjo-shi, Niigata prefecture
239 (As of March 31, 2014)
29,000m2

Major products Rice transplanters, Rice hullers, Vegetable transplanters, Binders< Action policy >Recycling
Final wastes

1. Continuous improvement

Rate ofrecycling

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

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.

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

1, 3, 5- Trimethylbenzene
Dichloromethane
Water-soluble zinc compound
Ethyl benzene
TolueneXyleneEnvironmental performance of four factories
Environmental report

Iseki-Houei MFG. Co., Ltd.

< 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
232 (As of March 31, 2014)

Wastes and recycling

8,959m2

Major products Cultivators, Tillers, Walk behind mower, System rice cooker< Action policy >1. Continuous improvement
Continuously improve the environmental management system andenvironmental performance by observing the environmental
management system based on ISO14001.

Recycling
Final wastes
Rate ofrecycling

2. Observation of laws and regulations concerning environment
Observe environment-related legislation, local government regulations,and agreements concluded by the company.
(Unit : 1,000ton)

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

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

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

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

Volume of water use

Volume of water use(in per production volume)Achieving Harmony between Human Beings and the EarthContact about this report
Environmental Control Department, ISEKI & CO., LTD.
791-2193 1 Yakura, Tobe-cho, Iyo-gun, Ehime prefecture
Phone: +81-89-957-3311 Fax: +81-89-957-7959
E-mail: kankyo@iseki.co.jp
Issued in Aug., 2014

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).