Sumitomo Heavy Industries Group

Environmental Sustainability Report 2009

Message from the President

Sumitomo Heavy Industries Group aims to Contributeto the sustainable development of society.
Our mission is to help build a society based on sustainable
development, with environmental problems among the important
issues to resolve. Above all, to aid in the fight against global
warming—one of several environmental problems of particulargravity—the Group has been introducing initiatives to prevent global
warming in stages since FY2005:
・ Reduce the consumption of electricity since FY2005
・ Reduce the use of paper since FY2006
・ Promote green logistics(reduce CO2 emissions associated with transportation) since FY2007
・ Reduce CO2 emissions(electricity and fuel consumption) since FY2008
These activities not only rely on capital investment; we have also
placed the highest priority on encouraging all employees of all groupcompanies to participate in the measures and promoting the“visualization” of the measures. I often visit the manufacturing floors to
see for myself the progress being made with these initiatives. As aresult of the efforts of all employees, we have been able to eliminate
waste and improve operations not only on the manufacturing floors but
also in our offices, and we have met the FY2008 targets for all activities.
Sumitomo Heavy Industries Group has also committed as part of its
corporate mission to reduce its environmental footprint throughproduct development and production activities to help protect the
global environment. In our development activities, we are creatingproducts that consume less energy, and that are lighter in weight and1

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Contents
Message from the President

1Group Outline

3

Relationship between
Sumitomo Heavy Industries Group and Society

5

Close Up 2008

7

Environmental Report

smaller in size. We seek to achieve compatibility between theenvironment and technology in a range of fields, and we strive toprovide high-performance, high-quality products that meet thedemands of society. To provide excellent products and services to ourEnvironmental Management System

9

Environmental Objectives(Medium-Term Plan) and Results

11

Global Warming Prevention Activities

13

Activities Directed Toward Creating a Society
Based on Recycling

15

Activities for Managing Chemical Substances

17

Contributing to Environmental Protection
through Products

19

Environmental Impact Data

23

customers worldwide, the Group is very much focused on productdevelopment and production innovation.
As well as activities to prevent global warming, Sumitomo Heavy
Industries Group aims to promote and improve recycling and waste
minimization, while reducing and ultimately eliminating the presence ofharmful substances.
In addition, the Group deals with a range of environmental risks
through collaboration and cooperation with the local communities ofwhich it is a part.
In order to earn the understanding and trust of stakeholders,
Sumitomo Heavy Industries Group is determined to fulfill its social

Social Activities ReportSocial Contribution Activities

25

responsibilities to protect the environment and prevent global
warming. We appreciate your opinions and advice, which will help us
with our ongoing efforts.
Editorial Policy

Yoshinobu Nakamura
President and CEO

The Sumitomo Heavy Industries Group (Sumitomo Heavy Industries, Ltd. andits group companies) issued its first Environmental Report in 2001. In 2005,
we expanded the scope of the report to include social aspects, and changed
its name to Environmental Sustainability Report.
To convey to a wide audience our engagement with environmental and social
activities, which we view as our duty to society, we have sought to make thereport accessible by reducing the volume of text and making frequent use ofgraphs, illustrations and photographs.
Scope of the Report
Sumitomo Heavy Industries, Ltd. and its group companies
Period Covered by this Report
April 1, 2008 — March 31, 2009
Previous issue
October 2008
Current issue
November 2009
The next issue planned to be published in:
September 2010

Disclaimer
This report contains not only facts relating to the past and present of Sumitomo
Heavy Industries Group but also projections based on plans and forecasts, businessplans and business policy at the date of publication. These plans, forecasts andprojections are assumptions and judgments based on available information at thetime of writing, and results or matters pertaining to future business activities could
differ materially from the descriptions due to changing conditions.

Sumitomo Heavy Industries Group · Environmental Sustainability Report 20092

Outline of Sumitomo Heavy Industries Group
Since its foundation as a repair shop for the Besshi Copper Mine in 1888, the history of Sumitomo Heavy Industries
Group has moved in step with social and industrial development. With a manufacturing technology nurtured by a
tradition spanning more than 100 years, we make use of proven technologies that “actuate and control” the thingsfrom the world of nanotechnology to gigantic structures to realize original ideas and dreams.
Company Profile
Company Name:Founded:November 20, 1888

Employees: 14,984 (Consolidated) 3,032 (Non-consolidated)

Incorporated:

November 1, 1934

Net Sales:

Head Office:1-1, Osaki 2-chome, Shinagawa-ku, Tokyo

Capital:JPY 30,871,650,000

JPY 642,918 million (Consolidated)
JPY 241,482 million (Non-consolidated)*Net sales figures are current as of the fiscal year ended March 2009 while the figures for capital and employees are current as of March 31, 2009.

Mass-produced Machinery
This product group encompasses products of a set basic
structure with mass production potential, and sophisticatedtechnologies for the IT industry. Flagship products include
power transmission equipment for controlling motor revolutions
and plastic injection molding machines for manufacturing
plastic goods.
Main Products Power Transmission Equipment, Plastic Injection
Molding Machines, Cyclotrons for Medical Use, Ion Accelerators,
Plasma Coating System for FPDs (Flat Panel Displays), Laser
Processing Systems, Cryogenic Equipment, XY Stages, Transfer
Molding Press Machines, Precision Forgings

Environmental Protection Facilities,
Plants & Others
This is a group of products for environmental infrastructuresuch as power generation and water treatment systems.
Flagship products include boilers for private power generationthat can run on biomass fuel, water and sewage treatment
systems and effluent treatment systems for the private sector.
Main Products Power Generation Systems, Industrial Wastewater

4

5
3

1

13
33 22
23
14

2

Treatment Systems, Water and Sewage Treatment Systems, Landfill
Leachate Treatment Systems, Air Pollution Control Plants, Chemical Process
Equipment for Chemical Plants, Food Processing Machines, Software

Ship, Steel Structure, and Other
Specialized Equipment

20
21This product group includes ships and oil refinery equipment.
In shipbuilding, we specialize in medium-size tankers. As foroil refinery equipment, our main product is equipment for
extracting value-added light oil from heavy oil after the
primary refining process. Others include equipment related tochemical processes.

25 32

26
27

18
19

16
34 24

15
17
35
29
30
31

28

Main Products Steel Structures, Pressure Vessels, Mixing Reactors,

Ships, Marine Structures, Marine Equipment, Coke Ovens Machines

Industrial Machinery
This group of products includes so-called heavy machinery.
The flagship products are large cranes and other transportation
handling systems, steam turbines for private power generation,and forging presses.
Main Products Logistics & Handling Systems, Parking Systems,

Forging Presses, Material Handling Systems, Turbines, Pumps

Construction Machinery
Our flagship products include hydraulic excavators andmobile cranes. We also have road construction machinery for
spreading asphalt etc.
Main Products Hydraulic Excavators, Mobile Cranes, Road Machinery

3

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Net Sales Ratio by Segment
Mass-Produced
Machinery

Construction
Machinery

35%

25%
Industrial
Machinery

13%
Ship, Steel
Structure, and Other
Specialized Equipment

12%¥642.9billionEnvironmental
Protection
Facilities,
Plants & Others

14%Outline of Sumitomo Heavy Industries Group
EuropeNorth America

Mass-Produced Machinery
1 Sumitomo (SHI) Demag Plastics Machinery GmbH Germany
Germany
2 Sumitomo (SHI) Cyclo Drive Germany GmbHGermany
3 Sumitomo (SHI) Cryogenics of Europe GmbH
United Kingdom
4 Sumitomo (SHI) Cryogenics of Europe, Ltd.
Netherlands
5 SHI Plastics Machinery (Europe) B.V.

Mass-Produced Machinery
6 Sumitomo Machinery Corporation of America
7 SHI Plastics Machinery, Inc. of America
8 Sumitomo (SHI) Plastics Machinery (America) , LLC
9 Sumitomo (SHI) Cryogenics of America, Inc.
10 SM-Cyclo of Canada, Ltd.

United States
United States
United States
United States
CanadaConstruction Machinery
11 Link-Belt Construction Equipment Company
12 LBX Company LLC

United States
United States

Asia
Mass-Produced Machinery
13 Sumitomo Heavy Industries (Tangshan), Ltd.
14 Sumitomo (SHI) Cyclo Drive China, Ltd.
15 Sumitomo (SHI) Cyclo Drive Logistics, Ltd.
16 Ningbo Sumiju Machinery, Ltd.
17 SHI Plastics Machinery (Shanghai) Co., LTD.
18 Sumitomo (SHI) Cyclo Drive Asia Pacific Pte. Ltd.
19 SHI Plastics Machinery (S) Pte. Ltd.
20 Sumitomo Heavy Industries (Vietnam) Co.,Ltd.
21 SHI Plastics Machinery (Vietnam) Ltd.
22 Sumitomo (SHI) Cyclo Drive Korea, Ltd.
23 SHI Plastics Machinery (Korea) Co., Ltd.
24 SHI Plastics Machinery (Taiwan) Inc.
25 SHI Plastics Machinery (Hong Kong) Ltd.
26 SHI Plastics Machinery (Thailand) Ltd.

China
China
China
China
China
Singapore
Singapore
VietnamVietnam
Korea
Korea
TaiwanHong Kong
Thailand27 SHI Plastics Machinery (Malaysia) Sdn. Bhd.
28 PT. SHI Plastics Machinery (Indonesia)
29 SHI Plastics Machinery (Phils.) Inc.
30 SHI Manufacturing & Services (Philippines) , Inc.

Malaysia
Indonesia
Philippines
Philippines

Environmental Protection Facilities, Plants & Others
31 SHI Designing & Manufacturing, Inc.

Philippines

Industrial Machinery
32 SHI Machinery Service (Hong Kong) Ltd.

Hong Kong

Construction Machinery
33 Sumitomo (S.H.I.) Construction Machinery (Tangshan) Co., Ltd. China
China
34 Sumiju SCE (Xiamen) Construction Machinery Co., Ltd.
35 Sumitomo Heavy Industries (Shanghai) Ltd.

China

Japan
Mass-Produced Machinery
Sumitomo NACCO Materials Handling Co., Ltd.
Seisa Gear, Ltd.
SEN Corporation
Sumitomo Heavy Industries HIMATEX Co., Ltd.
Sumitomo Heavy Industries Finetech, Ltd.
Sumiju Precision Forging Co., Ltd.
Sumitomo Heavy Industries PTC Sales Company
Sumitomo Heavy Industries Mechatronics, Ltd.
Sumitomo Heavy Industries Modern, Ltd.
S.H.I. Examination & Inspection, Ltd.
Japan Electron Beam Irradiation Service Co., Ltd.
Sumiju Business, Ltd.
Sumiju Tomida Machinery Co., Ltd.
SHI Accelerator Service, Ltd.
Sumiju Tokki Service Co., Ltd.
Sumiju Platec Co., Ltd.
Sumiju Logitech Co., Ltd.
Sumiju Technos Co., Ltd.

10
11
7
8

9

12
6

Environmental Protection Facilities,
Plants & Others
Sumitomo Heavy Industries Environment Co., Ltd.
Lightwell Co., Ltd.
Sumiju Environmental Engineering Inc.
Izumi Support Co., Ltd.
Izumi Food Machinery Co., Ltd.
Sumiju Environmental Technology Co., Ltd.
SHI Financial Services Co., Ltd.
Sumiju Plant Engineering Co., Ltd.
Sumiju Kansai Facility Management Co., Ltd.
Nihon Spindle Mfg. Co., Ltd.

Ship, Steel Structure, and Other
Specialized Equipment
Net Sales Ratio by Region

Sumitomo Heavy Industries Marine & Engineering Co., Ltd.
SHI Mechanical & Equipment Inc.
Sumiju Yokosuka Kogyo Co., Ltd.

Employee Ratio by Region

North America

16%
Europe

18%
Asia

17%

Japan

¥642.9billion49%

Industrial Machinery

Overseas

Shin Nippon Machinery. Co., Ltd.
Sumitomo Heavy Industries Engineering & Services Co., Ltd.
Sumitomo Heavy Industries Techno-Fort Co., Ltd.

29%
14,984

persons

Japan

71%

Construction Machinery
Sumitomo (S.H.I.) Construction Machinery Co., Ltd.
Sumitomo (S.H.I.) Construction Machinery Sales Co., Ltd.
Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd.

Sumitomo Heavy Industries Group · Environmental Sustainability Report 20094

Relationship between Sumitomo Heavy
Industries Group and Society
The Sumitomo Heavy Industries Group is helping tobuild a more prosperous society with its products
and technologies.

For the Household

At Underground Parking Lots

⓴ Contributing tospace-saving
by storing
automobiles
underground

Mechanical Parking Garage❶ Useful for manufacturingliquid crystal andsemiconductor
components thatdemand accuracy
Semiconductor and Liquid Production Equipment

At Automobile Factories❷ Supporting

automobile
manufacturing withnoise reduction
Forging Presses

At Automobile Factories❸ Contributing

to production
through a range oftransportation tasks
Material Handling Systems

At Factories❹ Supporting industry
with vanguard
technologies

Laser Processing Systems

At Hospitals❺ Contributing
to cancer
diagnostics

Cyclotrons for PET

At Hospitals❻ Contributing to

cutting-edge medicalcare

At Water-related Plants
Contributing to❼ daily life withefficient water
purification

Cryogenic Equipment (Cryocoolers) for MRI Systems

5

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Diffusers

Tankers❽ Helping to meet energy demand

Aframax Tankers

For our products that contribute to environmental preservation, see“Contributing to Environmental Protection through Products” on pages 19 to 22.
At Construction Sites

For Mobile Phones, DVDs and CDs⓳ Helping to build the social⓲ Supporting an affluent lifestyle byinfrastructure

Hydraulic Excavators

precision
forming ofplastics

At Oil Refineries⓱ Contributing to theeffective use ofresources by extracting
high quality oil fromlow quality oil

Plastic Injection Molding Machines

Coke Drums

For Elevators and Escalators⓰ Helping society

save energy by
converting a little
power into a lot of
power

Speed Reducers • Conveyor Gear Boxes

At Semiconductor Factories⓯ Helping companies
save energy by
maintaining clean
room temperatures
at low power levels

Air Conditioning Equipment

At Semiconductor Factories⓮ Making lives

more convenientthrough siliconwafer
manufacturing
Ion Implantation System

At the Warehouse⓭ Contributing tocargo handling

Forklifts

At the Warehouse⓬ Contributing toautomation and laborsavings in storing andtransporting goods at
warehouses
Automated Warehouses System

At Shipbuilding Yards❾ Contributing to shipbuilding

For Power Generating Facilities

For Power Generating Facilities❿ Supporting affluent⓫ Contributing to

Circulating Fluidized Bed (CFB) Boilers and Steam Turbines

Dry-type Desulphurization-Denitrification System

lifestyles throughhighly efficient andstable combustion to
generate power

Goliath Cranes

the global
environment bytreating emissions
without water

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

6

CLOSE UP2008
Sumitomo Heavy Industries Engineering Services Co., Ltd.

Recipient of the 29th Award for
Excellence in Energy-Saving Machines,
the “Chairman’s Award” (2008)

Excellence in EnergySaving Machines

The Sybrid System® hybrid
power supply system for transfer cranes has been awarded
the 29th Award for Excellencein Energy-Saving Machines, the“Chairman’s Award.”

Circuit Configuration for Conventional Transfer Cranes

Engine generator

Resistor

Motor
InverterConverter

Control
panel

Transfer cranes are self-propelled cranes that stack andorganize containers at container terminals in harbors andother facilities. The Sybrid System® supports the engine
power generator of the crane, using the electricity that isstored when lowering containers for hoisting. As amanufacturer of transportation equipment, we have usedtechnology honed over many years for a product that
demonstrates stellar performance for a transfer crane. We
have reduced fuel consumption by approximately 60%,
while also controlling emission gases and black smoke,
markedly improving the environmental performance ofcontainer terminals.

Enginegenerator

Circuit Configuration for Hybrid Transfer Crane
Engine generator
Boost
converter

ConverterIn the past, energy that was generated as a motor
resistance when lowering a container was converted to heatby a resistor and diffused.
The Sybrid System® uses the motor as a power generator
when lowering containers, storing the generated electricity
in lithium-ion batteries. By supplying the energy when
hoisting containers, it ensures the job is completed
effectively.
This has enabled a reduction in the size of the engine
generator, which supplies power to the motor, to one thirdof the conventional size. As a result, we have reduced fuelconsumption by approximately 60% and also slashedemissions.
In addition, a boost converter controls the current that is
supplied from the engine generator for accurate control of
the current even when there are sudden changes in theload. This has led to substantial reductions in black smoke
emissions.
The compact design also allows the system to be
mounted on existing cranes made by other manufacturers.

7

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Buckboostconverter

Motor
InverterPower storage device

Hybrid Panel

The Functions Underlying the Approx. 60%
Reduction in Fuel Consumption

Regenerative energy is diffusedas thermal energy by the resistor

Install by inserting the hybrid system in the inverter
direct current bus• Energy that is generated at lowering anddeceleration is used for hoisting• Adapted to hybridization of existing cranes

Introducing an individual control and simultaneous power feeding system equippedwith a buck-boost pressure converter for both the engine generator and the power
storage device (Patent pending)Contributing to environmental protectiousing the One-SHI Synergy Model
In developing our products, the Group uses thesynergies between individual departments toachieve harmony between our technologies
and environmental protection and to provide
top-quality, world-class products.

Circulating Fluidized
Bed Boilers

Lifting Magnets

Steam Turbine
Electric Generators

Large Speed Reducers
for Turbines

Turbine Blades

Energy & Environment Group

Biomass Power Generators Using
Wood Chips and Other Fuels
The Circulating Fluidized Bed Boiler
Also Adapted to Waste Fuel

Since biomass power generation facilities do not use any coal orother fossil fuels at all, they help by clean power generation to lower
CO2 emissions with the goal of preventing global warming. The
Circulating Fluidized Bed (CFB) boiler, the main device, facilitates
use of biomass fuels, which in the past presented challenges interms of efficient and stable combustion. In addition, the boiler isalso adapted to burn waste tires and other waste materials insteadof fossil fuel, contributing to measures to counter global warming
and the effective use of resources.

CFB boiler

Steam generated
from filter

Powergenerator

Mechanism of the combustionon

Biomass fuels, etc. are input.

The CFB boiler admits air blown in from the bottom, and combusts a variety
of fuels efficiently by homogenously mixing high-temperature particles(consisting of the ash contained in the fuel) with the fuel while they aresuspended. In addition, it uses a cyclone to separate off the fuel particles thatconvect upward with the combustion gas and returns them to the bottom of
the boiler, thereby improving combustion
efficiency. We have a technical affiliation
with Foster Wheeler in the United States,
which has the largest market share and themost advanced boiler technology in theworld. We apply our own ingenuity toensure consistent particle circulation andcombustion ash discharge.

Combustiongas
Particles

Particles

Particles are separated
off by the cyclone.

Combustion gas

Circulation ofparticles

Air

Drive Control Technologies
Hydraulic
Excavators

Plastic Injection
Molding Machines

Speed
Reducers

Cross-Organizational
Development

Precision Speed Reducers

Mechatronic
Components

Ion Implantation Devices

Cryopumps
Controllers

Cryogenic
Refrigerators

Particle Accelerator
Technologies

Superconducting
Magnet for
Manufacturing
Semiconductors

Cryogenic Technologies

Cyclotron for PET

Sumitomo Heavy Industries Group · Environmental Sustainability Report 20098

Environmental Report

Environmental Management System

At Sumitomo Heavy Industries Group, we have been promoting
environmental management with awareness that businesscorporations have social responsibilities for protecting the global
environment, for preserving the local environment, and for engaging
in economic activities that are oriented toward recycling.

Sumitomo Heavy Industries Group Environmental Policy
The entire Group will take action for environmental
preservation to achieve the same objective.
We established the Sumitomo Heavy Industries
Environmental Policy in September 1997 as an expansion of
the traditional risk management focused on compliance andenvironmental protection at the community level, thereby

making clear our basic policies, including consideration of
the environmental impact of our businesses. In addition, in
November 1999, we established the Sumitomo Heavy
Industries Group Environmental Policy with the entire Groupworking as one to promote environmental activities andenvironmental management.

Sumitomo Heavy Industries Group Environmental Policy● Consideration of the impact on the environment aroundthe facilities● Prevention of environmental pollution● Waste reduction● Saving energy / Saving resources /Promoting recycling

Considerationof the impact on
the environment
around thefacilities

Saving energy
Saving resources
Promotingrecycling

Prevention ofenvironmental
pollution

Waste
reduction
Established November 1, 1999

Environmental Management
We apply issues and goals regarding our
products and manufacturing activities to ourenvironmental programs.
The general manager of every works (including Group
companies within the works) and the heads of Group
companies elsewhere establish environmental policies togain the trust of each local community, undertaking
environmental management that conforms to the ISO14001
standard. Specifically, any and all elements that havepotential environmental impact are listed. Then theirenvironmental impacts are evaluated and any applicable legal
restrictions are clearly identified. Then we start up the PDCA
cycle of setting the goals for environmental activities,
planning, enacting, auditing and evaluating environmental
programs, and improving management systems. In order toreduce the environmental burden through the products andproduction activities, and to contribute to environmental
protection, we apply the issues and goals about our products
and manufacturing activities to the environmental programs
to put them into practice. To ensure that our management
system is being fully implemented and to facilitate continuous
improvement, the Environmental Management Division of thecompany conducts internal audits, and an external auditingorganization conducts audits, once a year, respectively.
At overseas Group companies, we are also trying to reduce
the risks to the environment by having the Environmental
Management Division carrying out documentation checks
and on-site internal environmental audits. In 2008, we carried

9

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

out internal environmental audits in China, the Philippines andVietnam.
At present, all principal plants in Japan as well as four
overseas plants have obtained the ISO14001 certification.
We are pushing for ISO14001 certification at sites overseas in
the future.

TOPICS
Environmental Measures
Overseas
Sumitomo (SHI) Cyclo Drive
Germany GmbH

Albert Hörmann

Group Leader, Electrical Maintenance, Manufacturing Division

We obtained the ISO14001 certification in March 2006 andare working to protect the environment. In the past two years,
I have worked on two projects for environmental protection.
The first one was to reduce the electricity consumed bylighting. We reviewed the areas where lighting is installed, thenumber of lights and the hours, and reduced the consumptionof electricity by approximately 30%. The second task was toreduce the volume of waste by improving product packaging.
By using returnable boxes, we reduced the waste volume by
15%. We are also taking other proactive measures such as
using environmentally friendly ingredients for detergents. I am
proud to be undertaking work that is linked to conserving
resources and improving the work environment.

Environmental Management System

Environmental Management Organization
Establishing the Environmental Management
Division and fully expanding the medium-termplan for the environment to the entire group

President and CEO

Report by the Executive Board (Four times per year)
Internal environmental audit (Once per year)

At Sumitomo Heavy Industries Group, the Environmental
Management Division, under the auspices of the General
Manager of General Affairs Group, is continually planning,practicing, promoting and auditing environmental
management including personnel training at every works
and for the Group. In addition, the Division hosts theEnvironmental Management Committee in order to fully
inform and roll out to the entire SHI Group the medium-term
environmental plan (the current second medium-term
environmental plan was authorized in FY2008). In particular,
the SHI Group is positioning activities to prevent global
warming as the key issue with every division playing acentral role in these activities. Therefore, we support
activities to prevent global warming at every division bytraining experts and through our Environment and Energy
Conservation Conferences in every area.

Director

Associate Executive
OfficerGroup Companies within the Scope of Certification

Tanashi Works• Sumiju Plant Engineering Co., Ltd.
• Sumiju Business, Ltd.
• Sumiju Tokki Service Co., Ltd.

Chiba Works• Sumitomo (S.H.I.) Construction MachineryCo., Ltd.
• Kenki Engineering Chiba Co., Ltd.
• Hitachi Sumitomo Heavy Industries
Construction Crane Co., Ltd.
• Sumitomo (S.H.I.) Construction Machinery
Sales Co., Ltd.

Yokosuka Works• Sumitomo Heavy Industries Marine &Engineering Co., Ltd.
• Sumiju Precision Forging Co., Ltd.
• Sumiju Yokosuka Kogyo Co., Ltd.
• Environmental Engineering Center of
Sumitomo Heavy Industries Environment
Co., Ltd.

Special Patrol for Energy Conservation (According to levelof goal attainment)

Environmental Audit Team

DivisionsGroup Companies
within Japan

Environmental
Committee
members

Environmental
Committee
members

Environmental
Committee
members

Group Companies
outside Japan

Group companies in Japan that have
independently received the ISO14001 certification

Date of Certification

August 1998

April 1999

February 1999

Nagoya Works

January 1999

Okayama Works• Sumitomo Heavy Industries Finetech, Ltd.

March 2000

Ehime Works(Niihama Factory)• Sumitomo Heavy Industries Techno-Fort
Co., Ltd.
• Sumitomo Heavy Industries Engineering &Services Co., Ltd.
• Sumitomo Heavy Industries Himatex Co.,Ltd.
• Sumiju Plant Engineering Co., Ltd.
• Sumiju Techno Craft Co., Ltd.

November 1999

• SHI Mechanical & Equipment Inc.
• SHI Examination & Inspection, Ltd.

Energy & Environment Group • Sumiju Environmental Technology Co., Ltd.

Environment and Energy Conservation Conference forPrevention of Global Warming (Four to six times per year)

Works• Hitachi Sumitomo Heavy Industries
Construction Crane Co., Ltd.
• Sumiju Tomida Machinery Co., Ltd.
• Sumiju Technos Co., Ltd.

Ehime Works(Saijo Factory)

Sumitomo Heavy Industries Group Environmental
Management Committee (Twice per year)

Environmental
Management Division

Works and divisions that have received ISO14001 certification andgroup companies within the scope of certification
Works/Divisions

Evaluation by the President (One to two times per year)

Group Company

Date of Certification

Sumitomo NACCO Materials
Handling Co., Ltd.

March 2000

Shin Nippon Machinery. Co.,Ltd.

February 2002

Izumi Food Machinery Co.,Ltd.

June 2002

SEN Corporation

October 2002

Sumiju Environmental
Engineering Inc.

October 2002

Sumitomo Heavy Industries
Environment Co., Ltd.

November 2002

Lightwell Co., Ltd.

February 2005

Nihon Spindle Mfg. Co., Ltd.

March 2006

Japan Electron Beam
Irradiation Service Co., Ltd.

January 2007

Sumitomo Heavy Industries
PTC Sales Company

September 2007

SFK Co., Ltd.

August 2008

Group companies outside Japan that have
independently received the ISO14001 certification
Overseas Group Company

Date of Certification

Sumitomo (SHI) Demag
Plastics Machinery GmbH

April 1998

Sumitomo (SHI) Cyclo Drive
Germany GmbH

March 2006

February 1999

Sumitomo (SHI) Cryogenics ofEurope, Ltd.

June 2008

October 2002

Ningbo Sumiju Machinery , Ltd.

September 2008

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200910

Environmental Report

Environmental Objectives (Medium-Term Plan) and Results

The Sumitomo Heavy Industries Group has drafted
the second medium-term plan that specifies the targets
to be achieved by the end of FY2010 and has been continuingwith its efforts to reduce the burden on the environment.

Entire View of the Burden on the Environment (Sumitomo Heavy Industries Group)
INPUT

OUTPUT

Crude oil equivalent

Water Resource

CO2 Emissions

Sumitomo
Heavy Industries
Group

Energy52,478 kℓ

83,200 t

Amount of Chemical Substances
PRTR*1 Substances
1,228 tEmission of Air Pollutants Waste

1,587,000 m3

VOC*2

915t

Total Amount

34,013 t
97.6%

Waste
Paper

67,678,000 sheets

Recycling Rate

(A4 paper equivalent)*1 PRTR: Pollutant Release and Transfer Register*2 VOC: Volatile Organic Compounds

Environmental Accounting for FY2008
We make effective use of environmental accounting formeasuring environmental activities as well as a tool for
promoting such activities.
Environmental accounting is positioned as one of thetools for measuring environmental activities. Sumitomo
Heavy Industries has conducted environmental accounting
in accordance with the Environmental Accounting
Guidelines, 2005, issued by the Ministry of the Environment.
The total cost of environmental protection in FY2008,

which includes investment and other costs, reached2,507 million yen. In addition, FY2008 marked the firsttime we calculated the economic effect for the Group,
which totaled 448 million yen. We will continue to utilize
environmental accounting to understand progress in ourenvironmental activities and whether or not advances
have been made in research and development of
excellent products and services for environmental
protection.

Cost of Environmental Protection (Accounting Base: Sumitomo Heavy Industries Group)

Unit: million yen

Investment
amountCosts

Economic
effectHandling or processing water, air, noise, vibration, chemical substances, and waste materials;
reducing energy and resource consumption; and recycling materials

739

518

448

(1) Costs forPreventing
Pollution

Renovation of wastewater treatment facilities; implementing measures to collect dust, for handling
substances containing volatile organic compounds (VOC), and for removing asbestos; inspections
for detecting extremely small PCB content; operation control of water treatment facilities; measuring
and analyzing water quality, exhaust gas, noise and vibration; and ensuring compliance with the values
stipulated in regulations.

198

248

131

Reducing cost of wastewater
treatment(2) Costs for Global
Environment
Protection

Power monitoring, equipment to conserve energy, updated lighting, energy conservation investment,
temperature control

539

39

299

Cost reduction with introductionof energy conservation, naturalenergy(3) Resource
Recycling Costs

Recycling waste products, including wood, plastic, used paper, oil waste and raw garbage; creating
waste yards; regenerating thinner; collection, transportation, processing, and disposal of waste; andimplementing steps to reduce the volumes of waste

2

231

18

Reducing landfill by separating
rubbish, cost reduction by
cutting back on waste

2 Upstream andDownstream Costs

Powder coating; and replacing wooden packages with wire mesh containers (for repeated use)01

3 Management Activity
Costs

Administering and maintaining ISO14001 standards; providing training (general, specialized, screening
panel, for internal auditing); monitoring the implementation of action plans; receiving regular screening;
expansion and maintenance of green areas; confirmation of PRTR; and measurement of VOC

48

134

4 Research andDevelopment Costs

Trial design for compact new energy CFB, commercial development of pretreatment facility for tropicalbiomass, development of high-performance, low-cost, energy-saving water treatment unit, highefficiency cyclo-reducers, environmental responses, development of energy-saving products

148

919

Category

Breakdown

1 Costs within Business
Areas (Sites)

Details of the main activities and the effects

5 Environmental
Tax levied according to the amount of emissions resulting in air pollution; and cost for creating green
Damage Control Costs areas and compensation for pollution to be assumed by corporations in the respective regions

0

0

Total

935

1,572

Main content

448
Unit: million yen

Item

Description
Renovations of wastewater treatment facilities; installation of dust collection systems; installation of facilities for treating VOC (volatile organic
compounds); and investing in energy conservation measures

Total cost assumed in the
periodRecycling, collecting, transporting, processing and disposing of waste products; inspections for detecting extremely small PCB content; operation
control of wastewater treatment facilities; measuring and analyzing water quality, exhaust gas, noise and vibration; administering and maintaining
ISO14001 standards; providing training; monitoring the implementation of action plans; and receiving regular screenings

1,572

Total inclusive cost of researchand development in the period

Trial design for compact new energy CFB, commercial development of pretreatment facility for tropical biomass, development of high-performance,
low-cost, energy-saving water treatment unit, high-efficiency cyclo-reducers, environmental responses, development of energy-saving products(1,067)

Total cost of environmental protection activities during the period

11

AmountTotal amount of investment
made in the period

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

935

2,507

Environmental Objectives (Medium-Term Plan) and Results

Activities in FY2008 — General Overview
We are continually engaging with every aspect ofactivities to reduce the environmental burden
aiming to attain the targets in the second
medium-term plan.
We have established the second medium-term plan,
which runs from FY2008 and specifies the targets to beachieved by FY2010, and we are promoting activities toreduce the burden on the environment. In particular, inorder to contribute to the prevention of global warming,
we have set a policy of reducing total CO2 emissions by
15% from the FY2004 level, achieving our goal of an 11%
reduction in FY2008.
In addition to reducing CO2 emissions, the targets to beachieved include promoting green logistics, reducing theamount of discharged waste, achieving zero emissions,
Index

Preventionof Global
Warming

Promotionof Resource
Conservation
and Recycling

Promotion ofPrevention ofEnvironmental
Pollution

Expansionof Line-up ofEnvironmentally
Friendly
Products

Environmental
Management

Item

reducing paper usage, reducing water usage, emission
controls for organochlorine chemicals (ozone-depleting
substances), completely abolishing equipment that uses
PCB (polychlorinated biphenyl), increasing the number of
ISO14001 certificates maintained, renewed and obtained,
and expanding the scope of Consolidated Environmental
Management.
Areas where we achieved 70% or more include emission
controls of organochlorine chemicals (designated harmful
chemical substances under the Soil Contamination
Countermeasures Law) and green procurement measures.
Areas where we achieved less than 70% are in
reducing the amount of discharged waste and emission
controls for VOC designated substances. The Group will
work as one to achieve the targets for FY2009.
Achievements in FY2008

Evaluation

Second Medium-Term Plan

Plans for FY2008(1) Reduction in CO2emissions at works
and offices

Reduction in CO2 emissions by 15%
from the FY2004 level by FY2010

Reduction in CO2emissions by 11% from the
FY2004 level by FY2008(2) Promotion of green
logistics
Reduction in CO2 emissions in transportation

Target for FY2009: Reduction by
10% per basic unit of transportationcompared with the figure for FY2006
as the benchmark.

Reduction by 6% from the Reduced by 7% from the
FY2006 level
FY2006 level(1) Reduction in volumesof waste generated
and disposed of• Amount generated in FY2010:
21,000 tons (Down 32% from the
FY2001 level)• Amount of disposal: 2,000 tons
(Down 77% from the FY2001 level)• Amount generated:
24,300tons (Down 21%
from the FY2001 level)• Amount of disposal:
2,300 tons (Down 74%
from the FY2001 level)• Amount generated: 34,013tons(Up 10% from the FY2001
level)• Amount disposed of: 808 tons
(Down 91% from the FY2001
level)(2) Achievement of zero
emissions

Attain recycling rate of 95% or more for
Recycling rate of 95% or
all divisions by FY2010. Then, aim for
more (SHI Group average)
zero emissions

Recycling rate of 97.6%
95% or more achieved at 9 bases(6 sites in previous year)(5 bases in previous year)◎

Group average recycling rate of 98%
or more(target exceeds medium-term plan)(3) Reduction in paper
usage

Reduction by 40% from FY2005 levelby 2010

Reduction by 30% fromthe FY2005 level

Reduced by 33% from the
FY2005 level◎

Reduction by 35% or more from the
FY2005 level as the benchmark(4) Reduction in water
usage

Reduction by 20% from FY2005 levelby 2010

Reduction by 15% fromthe FY2005 level

Reduced by 16% from the
FY2005 level◎

Reduction by 17% or more from the
FY2005 level(1) Emission control
of organochlorine
chemicals (SoilContamination
Countermeasures Law,
Montreal Protocol)• Complete abolition of theharmful chemical substancesdichloromethane, tetrachloroethylene
and trichloroethylene under the Soil
Contamination Countermeasures
Law by FY2010• Reduction in ozone depleting substances
HCFC-141b, HCFC-225 by 50% or morefrom the FY2006 level by FY2010

Compared with FY2005
Compared with FY2005• Dichloromethane reduced • Dichloromethane reduced
by 66%, tetrachloroethylene
by 50%, continued
completely abolished,complete abolition oftrichloroethylene reduced
tetrachloroethylene,
by 8.5%trichloroethylene
reduced by 50%• HCFC-141b reduced by• HCFC-141b, HCFC-225
44.5%, HCFC-225 completely
both reduced by 30%
abolished(2) Emission control ofsubstances designatedas VOC (Air Pollution
Control Law)

Controlled emission of painting solvents,
mainly toluene, xylene, and ethylbenzen.
Reduction by at least 30% from the
FY2006 level to be achieved by FY2010

Reduction in emissionsof 3 substances by 15%
from the FY2006 level(3) Total abolition ofequipment that uses
PCB (Law Concerning
Special Measures
Against PCB Waste)

Reduced CO2 emissions by
11% from the FY2004 level

Reduced by 7% from the
FY2006 level

Plans for FY2009◎

Reduction in CO2 emissions by 13%
from the FY2004 level by FY2009◎

Against the FY2006 benchmark, a 10%
reduction per basic unit of transportation
in FY2009 (1% reduction specified in the
Amended Energy Conservation Law)

△
◎

○

◎

• Amount generated: 24,300 tons
(Down 21% from the FY2001 level)• Amount of disposal: 2,300 tons (Down
74% from the FY2001 level)• Dichloromethane, trichloroethylene
reduced by 75% or more from 2005
level, continued complete abolition oftetrachloroethylene• Ozone depleting substance HCFC141b reduced by 50% or more,
continued complete abolition of
HCFC-225△

Reduction in emissions of 3 substancesby 15% or more from the FY2006 level

Total prohibition of use• Complete early• Complete early registration
registration of equipmentof equipment with highwith high concentration
concentration of PCB
of PCB• Investigation continuing• Investigation continuing
for equipment with a low
for equipment with a low
concentration of PCBs
concentration of PCBs◎

• Complete early registration with theJapan Environmental Safety Corporationof equipment with high concentrationof PCB. Dispose of appropriately after
receipt of disposal notice• For equipment that has a low
concentration of PCBs, investigation willcontinue in accordance with the plan.

Promotion of measures
for green procurement(purchase of raw materials
and components)

Respond to customers’ requests by
guaranteeing that shipped products
do not contain prohibited substances.
Have the suppliers guarantee that the
products they deliver do not containprohibited substances.

Continue in accordancewith the Green
Procurement Guidelines

Continued in accordancewith the Green Procurement
Guidelines○

Continue in accordance with the Green
Procurement Guidelines(1) Maintenance andupdating of ISO14001

Zero environmental accidents (legal
violations)

Zero environmental
accidents (legal violations)

Zero number of environmental
accidents (legal violations)◎Continue zero number of environmental
accidents (legal violations)(2) Increase in thenumber of ISO14001
certifications

Plan and push for obtainment byGroup companies including overseas

Push preparations for
obtainment by Group
companies

One overseas company, one
company in Japan obtained
certification◎

Plan and push for two affiliatedcompanies in Japan to obtaincertification

Audits at 6 principal overseas
manufacturing bases (including
China)◎

Conduct audits and research into
the risk associated with the principal
overseas manufacturing bases, including
China, to avoid risks and to promotemeasures for environmental activities

Conduct audits and research into
(3) Expansion of the scope
the risk associated with the principal
Audits at 6 principalof the Consolidated
overseas manufacturing bases to avoid overseas manufacturing
Environmental
risks and to promote measures forbases (including China)
Management
environmental activities.

Evaluation: ◎ Achieved ○ Achieved by 70% or more △ Achieved by less than 70%

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200912

Environmental Report

Global Warming Prevention Activities

In its business activities, including procurement, manufacturing andlogistics, Sumitomo Heavy Industries Group has been taking measures
to reduce CO2 emissions by positioning it as the most important issue.

%
22
reduction

Reduction in CO2 emissions
2008 was the first year of the commitment period of the
Kyoto Protocol. Over the five-year period from FY2008
to FY2012, Japan is committed to cutting emissions ofgreenhouse gases to 6% below the level for thebenchmark year, FY1990.
As of FY2005, we tackled the “Sumitomo Heavy
Industries Group 1st Global Warming Prevention
Activities” to reduce CO2 emissions by 10% from 2004
level by FY2007. In FY2008, we started the “Sumitomo
Heavy Industries Group 2nd Global Warming Prevention
Activities” with the target of reducing CO2 emissions by
15% from 2004 level by FY2010. This target value
represents a reduction of 25% compared to the level forthe benchmark year of FY1990 in the Kyoto Protocol.
In FY 2008, the entire Sumitomo Heavy Industries
Group emitted 83,200 tons of CO2. This is an 11%
reduction compared to our base year, FY2004, so wehave achieved our target reduction of 11% for this fiscal
year. In terms of the benchmark year of the Kyoto
Protocol, FY 1990, this figure represents a reduction of
22%. We have been able to control CO2 emissions to adegree that far exceeds Japan’s 6% commitment target.
On the other hand, if we look at CO2 emissions fromthe perspective of emissions from power consumption
and fuel, overall emissions of CO2 have decreased but
emissions from fuel have been increasing since FY2004.
The reason is that at the time of launching activities toprevent global warming, the Group first focused on
power consumption, which accounts for 80% of ourenergy consumption. Therefore, we have made steady
reductions in power consumption by renewing facilities,
undertaking investments to conserve energy, and raisingawareness of the conservation of electricity among all
employees across the Group. However, the reduction offuel consumption has been turned into an increase dueto the surge in operating paint drying furnace andheat-treating furnaces in step with growing production.
In the future, we will make efforts to reduce theconsumption of fuel by making thorough improvements
to operational procedures.

CO2 emissions

from FY1990(10,000 t-CO2)
11

9
8
7

10.67

9.36

9.48

9.30

9.18

8.32

8.14

7.96

1990

2004

2005

2006

2007

2008

2009

2010

6
0

Estimate

CO2 emissions through the consumptionof fuel and power

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Target(10,000 t-CO2)

15% reduction
from FY2004

10

8

1.84

1.83

1.94

2.18

2.10

6
4

7.52

7.65

7.36

7.00

6.22

8.14

7.96

2004

2005

2006

2007

2008

2009

2010

2
0

(FY)

Total amount of CO2 emissions from power consumption
Total amount of CO2 emissions from fuel consumption

Our target for FY2009 is a 13% reduction in overall
amounts compared to FY2004 and to achieve the target,
we are taking further measures to conserve energy.
Further, the target for the Japan Society of Industrial
Machinery Manufacturers (JSIM), which participates inthe Voluntary Action Plan of the Japan Federation of
Economic Organization, is to reduce emissions by 12.2%
from FY1997 level by FY2010. The Sumitomo Heavy
Industries Group has also achieved this target value.

%
33
reduction

Paper usage(A4 paper equivalent)from FY2005(million sheets)
120
Sumitomo Heavy
Industries Group
100

Target80

40% reduction
from FY2005

60

101

99

40

86
67

20
0

13

(FY)

Sumitomo Heavy Industries Group
Level of 6% reduction from FY1990 by the group
Level of 6% reduction from FY1990 by this company alone
Target amount of CO2 emissions by the group

Efforts to reduce paper usage
Reducing paper use is part of the resource-saving
activities and contributes to the prevention of global
warming by reducing CO2 emissions. Our group set atarget of reducing paper usage by 30% from the FY2005
level by FY2008. In FY2008, we exceeded the target
with a reduction of 33% from the level for FY2005.
In the second medium-term plan, we have set a 40%
reduction target for FY2010 against the FY2005 level. In
FY2009, we are working toward a target of 35%
compared to FY2005.

Target15% reduction
from FY2004

10

2005

2006

2007

2008

65

60

2009

2010

(FY)

Global Warming Prevention Activities%
7
reduction

Promotion of green logistics
In transportation, we havebeen making efforts to
reduce CO2 emissions byeliminating waste and byimproving efficiency. With
FY2006 as the benchmark,we are currently aiming toUsing ships in a modal shiftachieve a 10% reduction in
the basic unit of transportation (t-CO2/t) in the three-year
period ending FY2009. In FY2008, we achieved a
reduction of 7%, exceeding the 6% reduction target
compared to the FY2006 level. We are working to achieve
the targets for the final year of FY2009 by strengthening
countermeasures such as improved loading ratios, modal

Green logistics

from FY2006(CO2 emissions: Basic unit)(t-CO2/t)
0.03
0.02190.02

Target0.02040.0204

10% reduction
from FY2006

0.01
0

2006

2008

2007

2009

(FY)

shifts and efficient transportation planning.

Promotion of the Lifecycle Assessment
Reduce the environmental burden at all stages
from procurement to use and disposal
In order to reduce the burden on the environment throughproduct development and production activities, theSumitomo Heavy Industries Group is committed tomaking products that are lower in energy consumption,lighter in weight and smaller in size. To further reduce theburden on the environment, it is necessary to reduce theburden at every stage, from procurement to use anddisposal.

We have drawn up the environmentally friendly“Sumitomo Heavy Industries Group Green Procurement
Guidelines” to continue our efforts to ensure green
procurement. To further reduce the environmental
burden of our products, we are pushing to expand the
products that are subject to Lifecycle Assessment* tolighten the impact on the environment.
* Lifecycle Assessment: A method of objective and quantitativeevaluation of environmental impact throughout the lifecycle (all stages
from extracting the resources to manufacturing, use, disposal andtransportation) of products and services

Environmental activities in the office departments
We are also working on a range of initiatives
away from the manufacturing departments
At Sumitomo Heavy Industries Group, we act to prevent
global warming not only in the manufacturing departments
but also at the works offices, the head office, branch
offices and sales offices. We implement measures suchas temperature control through Cool Biz and Warm Biz
and curtail fluorescent lighting by measuring lighting
intensity in some offices.

In addition, using double displays for design work islinked to increased efficiency, shorter working hours andenergy savings. At thesame time, this also cutsback on printing andthus reduces the amountof paper used.

Using two displays for design work

TOPICSTOPICS

Yokosuka Works is awarded the Kanagawa
New Energy Award

The Niihama Factory receives the Shikoku
Bureau of Economy, Trade and Industry Award

The Yokosuka Works were awarded the Kanagawa New Energy Awardfor the introduction of a system for generating solar power. With thegoal of encouraging the introduction of new energy, this award
commends individuals, corporations and organizations, who haveundertaken outstanding initiatives in new energy use by utilizing solar
power generation, solar heat or biomass energy in Kanagawa
Prefecture. In the future,
we will continue to takea proactive approach tothe prevention of global
warming.

The Niihama Factory has been recognized for its outstanding
energy management and given the Shikoku Bureau of Economy,
Trade and Industry Award. This award is presented to factories
that provide models for energy management.
The factory was highly commended for its past activities toprevent global warming. As a result, all employees at the factory
are pulling together
and redoubling theirefforts to conserve
energy.

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200914

Environmental Report

Activities Directed Toward Creating a Society Based on Recycling

To establish a society based on recycling, the staff at Sumitomo Heavy
Industries Group recycle and make effective use of waste generated
through the Group’s business activities and control the volume created.
We also take action to reduce the burden on the environment through ourbusiness activities.

Measures for reducing theenvironmental burden

Waste for
Disposal
Discarded as landfill
or incinerated as
unusable waste

Appropriate managing waste generated bybusiness activities
Establishing a society based on recycling is essential for
ensuring the sustainable development of society. We
manage our waste by classification into the three
categories shown at right. We aim to reduce the volume
of waste generated through our business activities andput more emphasis on improving the recycling of waste.
We also take action to reduce the burden on theenvironment by setting specific goals.

Valuable
Resources

Waste forRecycling

Recycled for reuse.
Metal scraps
account for themain part.

Discarded as waste,
but recycled andlater reused

Results of our initiatives in FY2008
Control of waste generated and reduction in thevolume of waste discarded

Regarding the attainment of zero emissions—improving the recycling rate

The volume of waste discarded was 34,013 tons. We
sought to reduce the volume of scrap metal and otherwaste through more efficient production activities andthe elimination of waste. However, a significant increasein production volume prevented us from achieving thetarget with the level of waste increasing far beyond the
24,300 tons target figure, which is 21% below the
FY2001 level.
However, in terms of the volume of waste disposal,
the target of a 77% reduction from the FY2001 level(2,000 tons or less) by 2010 was comfortably reached at
808 tons, a 91% decrease from the FY2001 level, and a
66% decrease from the figure of 2,381 tons of thepreceding financial year. The main reasons for the
success were greater efforts to separate waste and theincreased recycling of waste casting sand, waste paint,sludge, waste plastic and waste alkaline that havepresented difficulties in terms of recycling in the past.

The target for recycling rates is to achieve a recycling
rate of 95% across all departments by FY2010.
With recycling rates rising every year since FY2001,
the rate of 97.6% for FY2008 was a remarkable
improvement on the 93% of FY2007. The number of
departments achieving a recycling rate of 95% or higher
grew from six departments in FY2007 to nine
departments.
Raising the target value for FY2009, we are working toachieve a recycling rate of 98% or higher across theGroup as a whole. To do so, we need to press evenharder for a full separation of waste. The departmentsthat achieved a recycling rate of 95% or higher in
FY2008 are also aiming to achieve zero emissions.

Volume of waste generated in FY2008
Volume of waste disposed of X
Volume of waste recycled Y
Volume of waste W (X+Y)
Valuable resources Z
Volume of waste generated S (X+Y+Z)

808
3,612
4,420
29,59434,0130

5,000

10,00015,00020,00025,000Recycling rate(Y+Z)/S

97.6

0

15

20

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

40

60

80

100 (%)

30,00035,000 (t)Activities Directed Toward Creating a Society Based on Recycling%
10
increase
Waste disposal
Target line for waste disposal
Waste generated
Target line for waste generation(1,000 t)

40

Trends in the recycling
rates

Target30

100
80

32% reduction
from FY2001

25

0

72.0

80.5

83.7

89.2

93.0

97.6

71.4

60
30

29

22

29

27

27

33

34

40

10
5

71.3

Target98%
recycling rate

(%)

35

15

%
97.6
achieved

over FY2001

Trends in volume
of waste, etc.

20

Recycling rates

20
8.8

8.1

6.5

5.7

2.3

0.8
3.0
4.4
2001 2002 2003 2004 2005 2006 2007 2008

2010

0

(FY)

2001 2002 2003 2004 2005 2006 2007 2008 2009%16
reduction

Reduction in water use
Aiming to reduce the volume of water used is not only amatter of protecting resources but it is also linked toreducing discharge into public water systems. We haveset ourselves the target of achieving a 20% reduction
from FY2005 level by FY2010. In FY2008, we madesolid progress with the elimination of leaks that wasted
water through the visual installation (abovegroundinstallation) of water pipes. As a result, we achieved a
16% reduction from the FY2005 level and we areworking toward a reduction of 17% in FY2009.

(FY)

Trends in water use

from FY2005(1,000 m3)

2,500

Target line

Target
20% reduction
from FY2005

2,000
1,500
1,000

2,016

2,086
1,973

2,004

1,899

1,669 1,631 1,587

500
02001 2002 2003 2004 2005 2006 2007 20082010 (FY)TOPICS
Using collection boxes to improve recycling rates
At the Yokosuka Works, waste
collection points have been installedat 55 locations and the number ofcollection boxes is as high as 550.
The method of collection is based onlists of 18 broad categories with afurther breakdown of approximately
80 subcategories. Metal scraps alone
are classified into 10 subcategories.
Detailed separation and collection increases the resource value, which is
linked to improved recycling rates. The recycling rate at the Yokosuka Works
is 99.6%.

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200916

Environmental Report

Activities for Managing Chemical Substances

To prevent environmental pollution, we focus on thefollowing four issues for the effective management ofchemical substances.

%20
reduction

Emission control of organic chlorine compounds(2) We have set a goal of reducing our emissions of theozone-depleting chemicals, HCFC-141b and HCFC225, by 50% by FY2010 compared to the level in
FY2006 as the benchmark. In FY2008, we reduced thetotal for both substances by 50% from the FY2006
level, outperforming the 15% reduction over FY2006
level in FY2007. We aim for further reductions and toachieve our goals at an early stage by introducing
alternative substances.

Emissions of substances that are
subject to the Soil Contamination
Countermeasures Law
20,000
Amount handled

16,00016,963 16,255
13,17812,00010,74012,919Target8,000

Complete abolition
by FY2010

4,000
0

2004

2005

2006

Emissions ofozone-depleting chemicals

2007

2008

2010

2,000

%
50
reductionfrom FY2006

1,836

Target

1,363

1,500

1,095

1,000

2004

2005

2006

50% reduction
from FY2006

928

500

Emission control of VOC (volatile organic compounds)

2007

550

548

2008

2010

from FY2006

VOC emissions(t / year)

1,400

TargetEmissions

1,200
1,000

950

984

946

915

800

30% reduction
from FY2006
689

600
400
200
2005

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

(FY)

%
7
reduction

0

17

(FY)

(kg/year)0

Toluene, xylene and ethylbenzene in paint solvents
account for close to 90% of the VOC we use. Our goal isto reduce emissions of these chemicals by at least 30%
by FY2010 compared with the level in FY2006.
We have made progress with the reductions thanks to
the introduction of solvent collection and removal
equipment at our large-scale paint facilities, which are
subject to legal controls. As a result, we saw reductions ofapproximately 7% compared to the level in FY2006.
Measures to control VOC emissions in FY2009 continue
on from FY2008 with the operation of solvent collection
and removal equipment, expansion of powder paint, andthe adoption of low-solvent paints to control emissions.

from FY2005(kg/year)Amount handled(1) We have set a goal of completely eliminating by FY2010
the use of dichloromethane, tetrachloroethylene andtrichloroethylene, which are organochemical substances
subject to the Soil Contamination Countermeasures
Law. In FY2008, the total reduction for these threesubstances was 20% compared to the level in FY2005.
By substance, the achievement breaks down as follows:
dichloromethane was reduced by 66% from FY2005
level, surpassing the 56% reduction from FY2005 level in
FY2007. The replacement of tetrachloroethylene withalternative substances remained on track and weachieved our goal of eliminating its use entirely. The
8.5% reduction in trichloroethylene was a vast
improvement on the 30% increase from the FY2005
level in FY2007. Aiming to achieve our targets, we will
also switch from dichloromethane and trichloroethylene
to alternative substances as soon as possible.

2006

2007

2008

2010

(FY)

Activities for Managing Chemical Substances

Reducing emissions and transfer of PRTR substances
PRTR substance emissions andthe amount transferredfrom FY2006(t / year)

Emissions +transferred amount

About 90% of the PRTR substances we use are paint(epoxy resin) and its solvents (toluene, xylene andethylbenzene). In FY2008, we reduced these substances
by 7% of the level in FY2006. We will continue to expand
the use of low-solvent paint while ensuring that we
maintain the quality of our products. We will also installand expand solvent collection and removal equipment to
reduce the emission and transfer of PRTR substances.

%7
reduction

1,600

1,329

1,316

1,200
800

1,187

1,228

2007

2008

794

400
0

2004

2005

2006

Total amount reported in FY2008(FY)(Unit: kg)

Chemical No.

Principal chemical substances

30
40
43
63
68
132
145
177
200
211
227
230
231
304
311
346

Bisphenol A epoxy resin
Ethylbenzene
Ethylene glycol
XyleneChrome and trivalent chrome compound
1,1-Dichloro-1-fluoroethane
Dichloromethane
StyreneTetrachloroethylene
Trichloroethylene
TolueneLead and its compounds
NickelBoron and its compounds
Manganese and its compounds
Molybdenum and its compounds

Emissions + transferred amount82,585238,074
60,297567,632
428
550
455
2,203
1
11,713229,604
1,243
127
6,906
17,177
41

Management of PCB and total abolition of equipment containing PCB
Investigations into equipment with high PCB
concentrations have been completed. In FY2009,
we aim to complete work for equipment with low
PCB concentrations.
We have completed registration of all equipment with high
PCB concentrations with the processing company,
Japan Environmental Safety Corporation. We willcomplete investigations of equipment with low PCB
concentration in FY2009 and we are taking systematic
measures to be able to process them as soon as possible
thereafter. We plan to abolish the use of stabilizers andtransformers containing PCB for lighting equipment by
FY2010.

Storing transformers containing
minute amount of PCB

External view of PCB storage
warehouse

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200918

Contributing to Environmental Protection through Products

Power Transmission and Control Group

Adoption of High-Grade Magnetic Steel Sheets
High-Efficiency Motor
This type of motor is widely used to drive a range of equipment, such as
factory lines and industrial robots.
It reduces power consumption by making improvements to the winding
design and by using high-grade magnetic steel sheets.

EnergyConservation

Power Transmission and Control Group

Adopting Environmentally Friendly Parts
Compact Gear Motors(Hyponic Gear Motor, Altax®NEO, Prest®NEO, Astero®)
These compact motors equipped with reduction gears
and used to drive conveyors, food processing
machines, packaging machines and assistive productswith a capacity in the range of 2.5W to 15kW arecompatible with standard specifications in the RoHS
directive, made to be environmentally friendly and safe.

Environmentally
Friendly

Plastics Machinery Division

Reduced Power Consumption
Electrically Powered Plastic Injection Molding Machine
In this machine that produces plastic products by pouring molten
plastic into a mold and shaping it, the electric drive system
replacing the hydraulic drive realizes substantial reductions in
power consumption.

EnergyConservation

Quantum Equipment Division

Downsizing Equipment
Ultra-Compact Cyclotron (HM-7) for Production of Labeled Compounds
for PET Diagnosis
The device produces the pharmacological agent (labeled compound) forPET (Positron Emission Tomography) examinations, one type of cancer
diagnosis. Being about half the size of conventional units, it helps reduce
the power consumption and the generation of waste at hospitals.

EnergyConservation

Precision Equipment Group

Reduced Power Consumption
SICERA® Cryopump
Ultrahigh vacuum pump used in semiconductor production
processes and other applications that reduces power
consumption by separately optimizing and operating multiple
cryopumps and the minimum number of compressors.

19

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

EnergyConservation

Contributing to Environmental Protection through Products

Mechatronics Division

Applicable to a Wider Range of Products
Semiconductor Encapsulating System
This device encapsulates semiconductor IC chips
using resin, preventing the resin from entering culls
and runners, reducing waste generated at molding.

Environmentally
Friendly

Sumitomo Heavy Industries Modern, Ltd.

Helps Reduce Waste
Pelletizing Recycling System
This system re-pelletizes the mill ends generated in plastic
film production and other processes to recycle them into raw
materials, reducing waste by reusing mill ends and defective
products.

Environmentally
Friendly

SEN Corporation

Adoption of Energy-Conserving Equipment
Ion Implantation System
This device implants ion on silicon wafers in semiconductor
production processes, implementing lower voltage andlower power consumption of semiconductor components
by tracking rapid progress in semiconductor technologies.

EnergyConservation

Sumitomo NACCO Materials Handling Co., Ltd.

Contributing to Energy Conservation by Adopting
an Electronically Controlled Engine
Forklifts with Gasoline and LPG Engines
Compliant with exhaust gas controls, the forklift is enabled for anelectronically-controlled speed limit device. Combining use with theoptional speed limit device contributes to energy conservation by
reducing acceleration irregularities and controlling speed.

EnergyConservation

Sumitomo Heavy Industries HIMATEX Co., Ltd.

High-Performance Roll That Conserves
Resources and Energy
Centrifugally Cast High-Speed Roll
A mill roll used in iron-making.
The use of different materials for the outer shell layer andinner core ensures wear resistance and economic
efficiency at the same time.

EnergyConservation

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200920

Contributing to Environmental Protection through Products
Energy and Environment Group

Recovering Valuable Metals from Industrial
Waste
Sumitomo W+E Rotary Kilns
These facilities for recycling industrial waste throughhigh-temperature processing (to collect metals and turnthem into pellets) contribute to reducing the burden on
the environment by recycling industrial waste.

Environmentally
Friendly

Energy and Environment Group

Contributes to Processing SOx, NOx
and Dioxins in Exhaust Gas
Dry-type Desulphurization-Denitrification System
This exhaust gas treatment facility uses a movable active-charcoal
bed to treat SOx, NOx, dioxin, dust, mercury, etc.
Sulfur, nitrate, and dioxin can be eliminated by a single facility,
thereby making it possible to reduce energy consumption
compared with conventional facilities.

Environmentally
Friendly
EnergyConservation

Sumitomo Heavy Industries Environment Co., Ltd.

Facilitating CO2 Reduction Effect andBiogas Recovery
SAT Low-Concentration Anaerobic Wastewater
Treatment Facility

Environmentally
FriendlyThis is a facility for purifying wastewater discharged by factories. With
approximately 40% less motive energy and approximately 60% lesssludge than conventional facilities, the reaction vessel, whose volume is
reduced by half, also makes a contribution to better space efficiency.

EnergyConservation

Starter (Initial Phase Only)
Pipeline

Settling
Basin

Pump
Well

Reaction
VesselSettling
Tank

Accelerator
The red lines indicate the pipelines that are newly installed
in an existing facility to reduce the volume of sludge.
Note: A specialized starter agent is applied when the system commences normal
operation. An accelerator unit is also installed to stimulate microbial reaction.

Sumitomo Heavy Industries
Environment Co., Ltd.

Superior Diffusion Performance
Enables Energy Conservation
Micrus® Superfine-bubble membrane tube
This equipment diffuses ultrafine air bubbles into factory
effluent and sewage to provide efficient purification ofwastewater.
There are an energy-conserving effect of
a superior diffusion performance and acost reduction effect due to simple
Energymaintenance.
Conservation

21

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Sumiju Environmental Engineering Inc.

40% or More Reduction in
the Annual Sludge Output
Dires® Sludge Reduction System
A system that controls excess sludge discharged from effluent
treatment facilities through the use of microorganisms.
This system significantly reduces initial costs and runningcosts compared to conventional mechanical systems or
systems that use chemicals.

EnergyConservation

Contributing to Environmental Protection through Products

Sumiju Plant Engineering Co., Ltd.

Highly Effective in Conserving Energy
Pre-evaporator
This is a plate-type falling-liquid-film evaporator
that pre-concentrates black liquid generated in
the production of pulp.
The unit generates heat from exhaust fumes
instead of steam from a boiler. This ensures
superior energy conservation and reduces CO2
emissions.

Environmentally
Friendly

EnergyConservation

Steel Structure and Process Equipment Division

Effective Use of Petroleum Resources
Coke Drum
This equipment is used in the oil refining process. It pyrolyzes
heavy oil to collect valuable light oil such as gasoline.
This unit converts heavy oil, now limited in use, into light oil.

Environmentally
Friendly

Sumitomo (S.H.I.) Construction Machinery Co., Ltd.

Energy Conservation, Effect of 20% Improvement in Fuel
Efficiency and CO2 Reduction, Reduced Running Cost
Magnet Specifications for Another 20% Improvement in Fuel Efficiency of the HydraulicExcavator Awarded the 2007 Grand Prize for Energy Conservation
Magnet Specification of LEGEST® Hybrid, the World’s First Hydraulic Excavators
The magnet specification machine is primarily used for scrap work where
frequent swiveling action recovers energy, making the model suitable forhybrid development.

Sumitomo Heavy Industries
Techno-Fort Co., Ltd.

Low Noise, Reduced
Maintenance Cost
Wet Clutch and Brake for Forging Presses

Shin Nippon Machinery Co., Ltd.

Reduce CO2 by Generating
Renewable Energy
Steam Turbine for Private Power
Generation

This clutch and brake unit for activating andstopping the rotary shaft ensures 10% less noise
value than air-driven and dry units. The airless
operation also reduces running costs.

Used to generate renewable energy (power
generation fueled by renewable energy) with theaim of reducing CO2

EnergyConservation

Environmentally
FriendlyEnvironmentally
FriendlyEnvironmentally
Friendly

EnergyConservation

Nihon Spindle Mfg. Co.,Ltd.

Lower Running Cost
Kurieko II
An air-conditioning control systemthat is able to keep the temperature
within ±1°C and the humidity within±5% of the set values.
With a superior control system, thissystem reduces power consumption
by 60% compared toconventional systems.

EnergyConservation

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200922

Environmental Report

Environmental Impact Data

Environmental impact data for SHI works (including Group companies
within the works), Group companies in Japan (away from SHI works) as
well as the main overseas Group companies

Environmental impact data for each works
Tanashi Works

Chiba Works■ Established in 1939
■ ISO14001 (obtained in August 1998)■ Site Area: 43,218 m2■ Building Area: 14,368 m2■ Main Products: Cryogenic Equipment, Defense Equipment■ Established in 1965
■ ISO14001 (obtained in April 1999)■ Site Area: 294,600 m2■ Building Area: 61,630 m2■ Main Products: Plastic Injection Molding Machines, Metallic Molds,
Construction Machines

CO2 Emissions

Waste(t-CO2)(t/year)

6,000

1,600

5,000

(%)
100
80

1,200

4,000

60

800

3,000

400

1,000

Waste

(t-CO2)(t/year)16,0005,000

12,0002008 (FY)

0

2001

0
2004 2005 2006 2007 2008 (FY)■ ISO14001 (obtained in March 1999)■ Building Area: 170,572 m2

Manufacturing Equipment (Molding Equipment), Precision Forgings,
Stage Systems, System Controller, Bridges & Steel Structures
Amount Disposed ofAmount Discharged
Recycling RateWaste(t/year)25,00012,00020,00010,000

(%)
100
80

8,000

1,500060

6,000
10,000

40

4,000

40

2005 2006 20072008 (FY)0

CO2 Emissions

Waste(t-CO2)(t/year)

20
2001

0
2004 2005 2006 2007 2008 (FY)12,000

6,000

90

20

2,000

0
2004 2005 2006 2007 2008 (FY)

0

85

2,000

4,000

0

2001

4,000

8,000

2,000

(%)
100
95

10,00002008 (FY)

Amount Disposed ofAmount Discharged
Recycling Rate

6,000

14,0005,000
2005 2006 2007

60

2,000

■ Established in 1961
■ ISO14001 (obtained in January 1999)■ Site Area: 293,000 m2■ Building Area: 90,000 m2■ Main Products: Power Transmission and Control, Geared Motors,
Inverters, Construction Machines■ Main Products: Ships, Laser Processing Systems, Semiconductor(t-CO2)80

3,000

Nagoya Works■ Established in 1971
■ Site Area: 523,000 m2

CO2 Emissions

0

(%)
100

4,000

1,000

20
2005 2006 2007

Amount Disposed ofAmount Discharged
Recycling Rate

8,000
4,000

Yokosuka Works

80
2005 2006 20072008 (FY)

0

2001

75
2004 2005 2006 2007 2008 (FY)Okayama Works

Ehime Works (Niihama Factory)■ Established in 1948
■ ISO14001 (obtained in March 2000)■ Site Area: 425,000 m2■ Building Area: 94,000 m2■ Main Products: Small Gear Motors, Gearboxes, Stage Systems,
Machine Tools■ Established in 1888
■ ISO14001 (obtained in November 1999)■ Site Area: 418,000 m2■ Building Area: 200,000 m2■ Main Products: Ion Accelerators, Coating Equipment,
Parking System, Forge Rolling Machines, Transporting Machines

CO2 Emissions(t-CO2)7,000

Amount Disposed ofAmount Discharged
Recycling RateWaste(t/year)

2,000

6,000
1,500

5,000
4,000

1,000

3,000
2,000

0

CO2 Emissions

Waste

(%)
100

(t-CO2)(t/year)20,0008,000

80

16,00060

12,000

40

8,000

500

1,000

20
2005 2006 20072008 (FY)

0

2001

0
2004 2005 2006 2007 2008 (FY)

Ehime Works (Saijo Factory)■ Established in 1973
■ ISO14001 (obtained in February 1999)■ Site Area: 535,000 m2■ Building Area: 58,341 m2■ Main Products: Bridges & Steel Structures, Pressure Vessels,
Stirring and Mixing Equipment
Amount Disposed of
CO2 Emissions(t-CO2)7,000

Amount Discharged
Recycling RateWaste(t/year)
4,000

6,000

4,000

60

2,000

3,000

40

2,000

1,000

1,000
0

(%)
100
80

3,000

5,000

23

CO2 Emissions

40

2,000

0

Amount Disposed ofAmount Discharged
Recycling Rate

20
2005 2006 20072008 (FY)

0

2001

0
2004 2005 2006 2007 2008 (FY)

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Amount Disposed ofAmount Discharged
Recycling Rate

80

6,000

60

4,000

40
2,000

4,000
0

(%)
100

20
2005 2006 20072008 (FY)

0

2001

0
2004 2005 2006 2007 2008 (FY)

Environmental Impact Data

Environmental impact data for Group companies in Japan (away from the works)
SEN Corporation

Shin Nippon Machinery Co., Ltd.

Main Products: Ion Implantation Systems
CO2 Emissions(t-CO2)Waste(t/year)

8,000

250

6,000
4,000

Main Products: Turbines, Pumps
Amount Disposed ofAmount Discharged
Recycling Rate

(%)
100

200

80

150

60

100

40

50

20

0

0
2004 2005 2006 2007 2008 (FY)

2,000

CO2 Emissions(t-CO2)
4,000

1,200

2005 2006 20072008 (FY)

2001

80

800

60

600

2,000

0

(%)
100

1,000

3,000

40

400

1,000

0

Amount Disposed ofAmount Discharged
Recycling RateWaste(t/year)2005 2006 20072008 (FY)

200

20

0

0
2004 2005 2006 2007 2008 (FY)2001

Nihon Spindle Mfg. Co., Ltd.

Sumitomo NACCO Materials Handling Co., Ltd.

Main Products: Industrial Instruments, Environmental Equipment,
Building Materials
Amount Disposed ofMain Products: Forklifts

CO2 Emissions(t-CO2)Waste(t/year)

1,600

Amount Discharged
Recycling Rate

1,200
1,000

1,200

80

800

60

600

800
400
0

2005 2006 2007

(%)
100

CO2 Emissions(t-CO2)
3,000

1,500
1,000

200

20

500

0

0
2004 2005 2006 2007 2008 (FY)

0

2001

(%)
100
80

1,500

2,000

400

2008 (FY)

2,000

2,500

40

Amount Disposed ofAmount Discharged
Recycling RateWaste(t/year)

60

1,000

40
500
20
2005 2006 20072008 (FY)

0

2001

0
2004 2005 2006 2007 2008 (FY)

Environmental impact data for main overseas Group companies
Sumitomo (SHI) Cyclo
Drive China, Ltd.

Sumitomo (SHI) Cyclo
Drive Logistics, Ltd.

Ningbo Sumiju Machinery,Ltd.

SHI Manufacturing &Services (Philippines) Inc.

Country: China
Main Products: Power transmission
equipment

Country: China
Main Products: Power transmission
equipment

Country: China
Main Products: Components forplastic molding machines

Country: The Philippines
Main Products: Precision
Components

CO2 Emissions(t-CO2)5,000

CO2 Emissions(t-CO2)1,000

CO2 Emissions(t-CO2)6,000

CO2 Emissions(t-CO2)
1,000

4,000

800

3,000

800

4,000

600

2,000
1,000

400

0

0

2005 2006 20072008 (FY)

600
2,000

2005 2006 20072008 (FY)

0

400
2005

2006

2007

2008 (FY)

0

2005

2006

2007

2008 (FY)

Sumitomo Heavy Industries(Vietnam) Co., Ltd.

Sumitomo (SHI) Cyclo
Drive Germany GmbH

Sumitomo Machinery
Corporation of America

Link-Belt Construction
Equipment Company

Country: Vietnam
Main Products: Motors for powertransmission equipment

Country: Germany
Main Products: Power transmission
equipment

Country: United States
Main Products: Power transmission
equipment

Country: United States
Main Products: Construction
machinery

CO2 Emissions(t-CO2)2,000

CO2 Emissions(t-CO2)2,000

CO2 Emissions(t-CO2)5,000

CO2 Emissions(t-CO2)20,000

1,500

1,500

1,000

1,000

500

500

0

2005 2006 20072008 (FY)

0

4,000

15,0003,000

10,000

2,000

5,000

1,000
2005 2006 20072008 (FY)02005 2006 20072008 (FY)02005 2006 20072008 (FY)

Sumitomo (SHI) Demag
Plastics Machinery

Country: Germany
Main Products: Plastic molding
machines
CO2 Emissions(t-CO2)
8,000
6,000
4,000
2,000
0

2005 2006 20072008 (FY)

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200924

Social Activities ReportSocial Contribution Activities

Each division and company in the Sumitomo Heavy Industries Groupaims to establish itself in the local community. Each employee takes theinitiative in planning and implementing activities for contributing to thecommunity.

Social Contribution Activities
Biodiversity Measures
Working to conserve the natural environment
at the site of the Tanashi Works
The Group always strives to avoid risks to theenvironment including the air, water and soil to contributeto the conservation of biodiversity, as well as to maintainand expand green areas.
Tanashi WorksAt the Tanashi Works, we are protecting the Musashino
forest, which occupies about 30% of the 43,000 m2 sitearea. A part of it has been named the “Forest of
Inspiration” and is open to the general public. At 4,600 m2
the forest occupies more than 10% of the site for theworks and harbors 40 or more species of trees andcountless grasses, and it is frequently visited by wild birds
and insects.
In the Forest of Inspiration, we have in consultation withthe government installed rainwater infiltration pipes,
which return rainwater to the ground. In the past, most of
the rainwater was released into a nearby river via existingstorm water drains. As a result, there was potential forland subsidence to occur in connection with the drop ingroundwater levels. Local residential areas suffer fromfloods due to unexpected local heavy rainfall, which is
attributable to global warming, a global environmental
problem.
By installing rainwater infiltration pipes, we aim toconserve the natural environment by preventing thedepletion of groundwater and reducing the risk for land
subsidence.

Forest of Inspiration

Rainwater Infiltration Pipes Laid Underground
RainfallExisting drain ditch
and drain box(The rainwater
enters here.)

Newly installed drain pipe
Existing pipe
Newlyinstalled
infiltration
tank

Underground water vein
Underground water vein

Chestnuts collected in the grounds

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Newly installed infiltration well
(The rainwater is directly
discharged into theunderground water veins.)(The rainwater
is filtrated.)
Flow of rainwater Closed Flow of rainwater(stopped)

The Forest of Inspiration offers benches and wheelchairaccessible walking trails, creating a welcoming atmospherefor everyone. Fallen leaves are collected for composting aspart of the agricultural courses sponsored by community
centers in Nishi-Tokyo City, and acorns are collected bynursery school children. Chestnuts collected within the
grounds are provided to the locally organized Jomon noMori Autumn Festival to make cookies.

25

Existing pipe

Sent
outsideSocial Contribution Activities

Local Traffic Safety Measures
Organizing Lectures and Classes
As a member of the local traffic safety association, theSumitomo Heavy Industries Group participates in traffic
safety campaigns. We also request the cooperation of
forwarding companies entering and leaving the factory.
We also organize lectures in all areas to raise awarenessof traffic safety among company employees.
At the Yokosuka Works, we held classes in collaboration
with the local police station to improve motorcycle driving
skills.
The Nagoya Works and Sumitomo NACCO Materials
Handling Co., Ltd. proactively cooperate with local traffic
safety campaigns by periodically undertaking trafficmonitoring duties.

Monitoring traffic (Okayama Works)

Motorcycle classes(Yokosuka Works)

Monitoring traffic (Nagoya Works)

Cooperation with Blood Donation Drives
The Group as a Whole Cooperates with
Blood Donation Drives
The Sumitomo Heavy Industries Group has collaborated
with blood donation drives for many years and for theemployees, this has become a fixture as the most familiar
contribution activity. In FY2008, a total of 1,074 individuals
donated blood.
In the future, the Group will continue its blood donation
activities in order to save precious lives.

Giving blood (Yokosuka Works)

Workshop for Assisting Wheelchair
Users on Buses
Organizing Workshop in Providing
Assistance to Wheelchair Users BoardingBuses
The Yokosuka Works is represented on the board of
directors for the Council of Social Welfare in Yokosuka
City. As part of this activity, we planned and organized aworkshop with the purpose of enabling passengers toassist the driver and user when people in wheelchairs geton and off public buses.
When boarding a bus with a wheelchair, it takes about
ten minutes to install the ramp and secure the wheelchairwith handrails and dedicated hooks after boarding the bus.
All participants reaffirmed the necessity for cooperation
after confirming that the time will be shortened andboarding will go smoothly if passengers are able tocooperate.

Wheelchair-accessible
bus workshop(Yokosuka Works)

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200926

Social Activities ReportSocial Contribution Activities

Communication with Local Communities
Work Experience and Visits to the Works
Receiving Students for Work Experienceand Factory Tours
The Group receives local young people for work experienceand for tours of the factories.
For the students, the experience at the works is theirfirst taste of working, something they cannot experienceat school, and they take it very seriously. In FY2008, we
accepted 740 students from 82 schools for work
experience and tours.
We will continue to accept students while paying
careful attention to safety to raise understanding andinterest in manufacturing among many members of theyoung generation.

Work experience at Okayama Works

Work experience at Shin Nippon Machinery Co., Ltd.

Supplies to Welfare Facilities
Providing Cardboard, Electric Cable andAluminum Cans
The Tanashi Works supplies used cardboard to Work
Center Yume no Ki, a social welfare facility in Kodaira City.
The Yokosuka Works provides electric cable ends fromshipbuilding and empty cans from its offices anddormitories to Kagamida-en, a support facility for
intellectually disabled people in Yokosuka City.
At the facility, the cable covering is removed and thewire at the core extracted, the aluminum cans areflattened in a press and both materials are sold as
valuable resources with proceeds going toward operating
the facility.

Working at Kagamida-en

A thank you note

27

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Social Contribution Activities

Factory Tours for Parents and Children
during the Summer Holidays
Cooperating with Yokosuka City on Factory
Tours for Parents and Children in the Summer
Holidays
The Yokosuka Works are cooperating with Yokosuka City
on factory tours for parents and children in the summer
holidays, which aim to create an understanding andinterest in the works. Aimed at the upper grades of
elementary school, we organize tours for parents andchildren who normally do not have the opportunity to visit
a factory.

Participants in the factory tour for parents and children in the summer
holidays

Displays at the Environmental Exhibit
We Provide Children with a Place to Learn
about the Environment through Displays atthe Environmental Exhibit
Sumitomo Heavy Industries Environment Co., Ltd. provides
children, who participate in locally sponsored environmental
exhibits, a place for learning about the water-related
environment of rivers. We will continue the activities into the
future to convey to children the importance of protecting
the environment.

A learning corner at an environmental
exhibit

Displaying and Selling Local Products
at Summer Evening Festivals
Tanashi Works Organizes Displays andSales of Local Products from Kashiwazaki
City
Our works sponsor summer evening festivals or summer
festivals for engaging in exchange with local people.
At the Tanashi Works, we organized a summer evening
festival where we sold local products from Kashiwazaki
City, which suffered damage in the Niigata Chuetsu
Offshore Earthquake. The products enjoyed a roaring
trade and were completely sold out.

Selling local products (Tanashi Works)

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200928

Social Activities ReportSocial Contribution Activities

Beautification and Cleanup Activities
Creating Green Spaces around the Factory
Making a Green Wall
Nihon Spindle Mfg. Co., Ltd. demolished the concrete wallon the perimeter of the factory, installing flower beds andgreen spaces. Using flowers and greenery brightened theatmosphere, which is linked to ensuring safety forcommuting.
At the Niihama factory, flower beds were installed forannual planting, providing not only visitors to the works but
local people with something that is pleasing to the eye.

The green fence (Nihon Spindle Mfg.)

Planting flowers at the factory(Niihama factory)

Planting and Raising Trees around theFactory
Creating Beautiful Views around the Factoryand Planting Trees on the Factory Premises
The Sumitomo Heavy Industries Group is working on
creating green spaces by planting trees and flowers inorder to make the area around the works more beautiful.
The Yokosuka Works cooperated with the local
Association for Creating a 1000 Year Forest to plant
2,200 saplings of trees that grow in the city on the factory
premises during a tour of the works for parents andchildren. The saplings, which were tagged with thenames of the family that planted them, are growing well.

Planting trees during a tour of the
Yokosuka Works for parents andchildren

The growing trees

Participating in Neighborhood Cleanup
Activities
In 2008 We Also Cooperated with Local
Residents on Cleanup Activities
The Sumitomo Heavy Industries Group is tackling cleanup
activities. The main activities are cleanup events organizedby local municipalities where we participate together withlocal residents, and cleanup activities in the vicinity of theworks.
The Saijo Factory and SEN Corporation participated in
the Refresh Setouchi event to clean up Takasu Beachorganized by the Saijo City Maritime Promotion Association.
Counting this year, the event was organized for the 17th
time. Takasu Beach is the only remaining natural sandbeach in Saijo City. Families and groups collected therubbish washed up on the 1.5 km long sandy beach.

29

Sumitomo Heavy Industries Group · Environmental Sustainability Report 2009

Cleanup activity (Niihama Factory)

Cleanup activity (Chiba Works)

Cleanup activity at Takasu Beach(Saijo Factory, SEN)

Social Contribution Activities

Efforts at Overseas Group Companies
Efforts at Overseas Factories
Accepting Visits from Local People
Since production started in April 2009, Sumitomo Heavy
Industries (Tangshan), Ltd. in Tangshan, Hebei Province,
China, has been accepting visits from many ordinary
people as well as the provincial government, themunicipal government, the Kaiping county governmentand schools.
Through the factory visits, we facilitate communication
and act as a new member of the local community.
Factory tour (Sumitomo Heavy Industries (Tangshan), Ltd.)

Tree Planting at Overseas Factories
Planting Trees with the Aim of Friendshipbetween Companies and Raising
Environmental Awareness among Employees
Located in the Philippines, SHI Manufacturing & Services(Philippines) Inc. joined forces with other Japanese
corporations in the same industrial park to plant trees.
The aim of the tree-planting activity was to make acontribution to the local community and, at the sametime, raise employee awareness of the environment
through the work, and to create friendships between thecompanies.
The employees were a little bewildered by their firsttree-planting event but the activities finished with theemployees smiling and looking forward to the next event.

Tree planting activity (SHI Manufacturing & Services (Philippines) Inc.)

Sumitomo Heavy Industries Group · Environmental Sustainability Report 200930

http://www.shi.co.jp
Contact Information
Environmental Management Division
ThinkPark Tower, 1-1, Osaki 2-chome, Shinagawa-ku
Tokyo, Japan 141-6025
Phone: +81-3-6737-2325

Mixed Sources
Product group from well-managed
forests and other controlled sources

Sumitomo Heavy Industries Group is an active participant in Team Minus 6%,
a national campaign to reduce greenhouse gases by 6%.

Working together to stop global warming
Team Minus 6%E