ENVIRONMENTALREPORT

2004

Company Overview (as of March 31, 2004)

The Olympus Group's Main Operating Bases (As of March 31, 2004)

Corporate Name: Olympus Corporation

Japan

Date Established: October 12, 1919

Olympus Corporation
Head Offiice
 Technology Research Institutes (Hachioji) Hinode Plant
 Ina Plant
 Tatsuno Plant
 Olympus Sogo Service Co., Ltd.
 Aomori Olympus Co., Ltd.
 Aizu Olympus Co., Ltd.
 Olympus Opto-Technology Co., Ltd., Head Office Olympus Opto-Technology Co., Ltd., Omachi Branch Olympus Opto-Technology Co., Ltd., Sakaki Branch Olympus Opto-Technology Co., Ltd., Hachioji Branch Olympus Logitex Co., Ltd.
 Mishima Olympus Co., Ltd.
 Shirakawa Olympus Co., Ltd.
 Development
 Okaya Olympus Co., Ltd.
 Manufacturing
 Olympus Engineering Co., Ltd.
 Sales Olympus Systems Co., Ltd.
 Service NovusGene Inc.
 Repair and Maintenance Olympus AVS Co., Ltd.
 Leasing Olympus Medical Engineering Co., Ltd.  Operational Support
 Olympus Leasing Co., Ltd.
 Distribution
 KS Olympus Co., Ltd.
 Parts Procurement
 Opnotech Co., Ltd.
 System Development
 AOl Technology Inc.
 Software Development

Location of Head Office: Shinjuku Monolith, 2-3-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0914, Japan
Phone: +81-3-3340-2111
Business Areas: Manufacturing and Marketing of Medical, and Health-care, Imaging, Information, and Industrial related Equipment including Digital Cameras,
Film Cameras, IC Recorders, Magnet-optical (MO) Drives, Binoculars, Gastrointestinal Endoscopes, Endosurgery Systems, Endotherapy Accessories, Ultrasound Endoscopes, Biological Microscopes, Clinical Analyzers, Genome
Analysis Systems, Information Equipment, and Industrial Endoscopes and Industrial Microscopes.
Capital: 40,832 million yen
Number of employees - consolidated: 28,857
Number of employees - unconsolidated: 5,470
Sales - consolidated: 633,622 million yen (FY2004)
Sales - unconsolidated: 425,184 million yen (FY2004)

Company Organization Chart
On April 1, 2001, Olympus implemented an in-house system to make management more efficient and take advantage of the synergy generated by reorganizing business units to respond quickly to customer needs. In this connection, theboard of directors was modified. Promotion of changes in the awareness of
Olympus employees is the key to successful reform.
Organization
Board of Directors

Board of Auditors

Chairman

America Olympus America Inc.
 Olympus America de Mexico, S.A. de C.V.
 Olympus Latin America, Inc.
 Olympus Optical do Brasil, Ltda.
 Olympus Integrated Technologies America Inc.
 AOI Technology U.S. Inc.
 Olympus Industrial America, Inc.
EuropePresident
Imaging Systems Group

Medical Systems Group

Life Science Group

Industrial Systems Group

Corporate R&D Center

Future Creation Laboratory
Intellectual Property & Licensing DivisionCorporate Center
Corporate Planning Division
BPI-PJ (Business Process Innovation)

This report covers ( domestic manufacturing facilities )Olympus Corporation

Technology Research Institutes (Hachioji)
Hinode Plant
Ina Plant Olympus Europa GmbH Olympus UK Ltd. [Operating Company n KeyMed (Medical & Industrial Equipment) Limited
 KeyMed (Ireland) Ltd.
 Algram Group Ltd.
 Olympus Sverige AB
 Olympus Schweiz AG Olympus Austria Gesellschaft m.b.H.
 Olympus Deutschland GmbH Olympus Winter & Ibe GmbH Olympus Diagnostica GmbH Olympus Endo-Repair Europe GmbH Olympus Biosystems GmbH Olympus France S.A.
 Olympus d.o.o.
 Olympus d.o.o.za trgovinu
 Olympus C&S, Spol.s.r.o.
 Olympus Danmark A/S Olympus Italia S.R.L.
 Olympus Norge A/S Olympus Finland OY
 Olympus Estonia Oue
 Olympus Nederland B.V.
 Olympus Hungary Kft.
 Olympus Medical Care (Hungary) Kft. Medical Service Limited
Liability Company.
 Olympus Polska Sp. z o.o.
 Olympus Endoterapia Sp. z o.o.
 Olympus Optical AB
 Olympus Optical Espana S.A.
 Olympus Service Facility Portugal Lda.
 Oneiros Technologias de Infoemacao, S.A.

Tatsuno Plant
Asia and PacificAffiliated Production Companiesof Olympus Corporation

Aomori Olympus Co., Ltd.
Aizu Olympus Co., Ltd.
Olympus Opto-Technology Co., Ltd.
Head Office
Omachi Branch
Sakaki Branch
Mishima Olympus Co., Ltd.
Shirakawa Olympus Co., Ltd.
Okaya Olympus Co., Ltd.

Period covered: Fiscal Year (FY) 2004 (April 1, 2003, to March 31, 2004)
Number of Employees: 5,728 (as of March 31, 2004)* Tokyo Kinzoku Kyowa Plant was dissolved in March 2003.

 Olympus Singapore Pte Ltd.
 Olympus Technologies Singapore Pte Ltd.
 Olympus Australia Pty Ltd.
 Olympus New Zealand Limited
 Olympus Asset Management Limited Olympus (Shenzhen) Industrial Ltd.
 Olympus Beijing Industry & Technology Limited Olympus Taiwan Co., Ltd.
 Olympus (Thailand) Co., Ltd.
 Olympus Korea Co., Ltd.
 ODNK Co.,Ltd.
 Olympus (Malaysia) Sdn. Bhd.
 Olympus Optical Technology Philippines, Inc.

Contents

Business Profile of the Olympus Group
Sales

Employees

Million yen
600,000

60,000633,622500,000

528,415400,000

428,646

50,000564,343

Environmental
Management

40,000466,704

300,000

30,000200,000
100,000 18,999

19,86520,705'01'02

24,12628,85720,00010,0000(FY)

3Management Philosophy and Environmental
Principles for the Olympus Group

4

Business Activities and Environmental
Impact6

Basic Environmental Plan

8

Environmental Accounting

9

Environmental Promotion System

10

Environmental Management System

11

Environmental Education

12

Creation of Environmentally Conscious
Products

13

Olympus Eco-products [1]: SZX7/SZ61

14

Olympus Eco-products [2]: IPLEX MX

15

Olympus Eco-products [3]: OLYMPUS E-1
Digital SLR

16

Examples of Environmental Technology
Development

17

Environmental Consciousness in ProductPackaging and Distribution

18

Green Procurement

19

Substitution Using Safe Chemicals

20

Energy and Resources Management

22

Waste Management and Recycling

24

Chemicals Management

25

Risk Management

26

Social Contribution

28

Social/ Environmental Communication

30

Health and Safety

31

Personnel System and Human Resource
Development

32

Approaches at Home and Abroad

40

Recognition from Outside

41

Olympus Environmental Activities andAwardsPeople

0

'00

'03

'04

Transition of Consolidated Sales and Employees

Operating profit

Profit for the term(Million yen)
60,00062,34650,00062,997

Product-Related
Measures40,00042,28330,00035,49633,56420,000 30,132

24,34810,000
0

(FY)

1,860
'00

11,787

10,279

'01

'02

'03

'04

Operating Profit and Profit for the Term

Industrial Systems Group

Others 0.9%

6.7%Life Science Group

11.4%

Imaging Systems Group

46.8%
Medical Systems Group

34.2%

Consolidated Net Sales Shared by Fields in FY 2004

Manufacturing-Related
Measures

Others 2.0%
Asia 12.0%
Japan 23.7%

Social Activities

Europe 31.7%
North America 30.6%

Consolidated Net Sales Shared by Regions in FY 2004

Summary of this Report¡Olympus Environmental Report 2004 covers the Olympus

Group worldwide. Data on environmental load was tallied
mainly based on that of domestic manufacturing facilities,
except that data on CO 2 emission and environmental
accounting at the Schenzhen Plant, China, were included inthis report in connection with energy saving.
¡The Report features the following:1 ) Establishment of Olympus Eco-product Standards andenvironmentally conscious product marketed in compliance with these Standards.
2 ) Waste separation, disposal and recycling activities were
promoted to implement the Zero emissions in all of ourdomestic R&D, production and distribution sites.
3 ) "Site Report" illustrates individual sites' unique efforts as
an environmental impact data in each domestic and overseas.
4 ) The Report was strengthened as a sustainability report byadding pages for "Personnel System and Human
Resource Development" to meet social requirements.

Site ReportMessage from the President

It is essential for corporate management to share the same concept of values with society and create new value through its business activities. Taking "Social IN" (Social Value in the Company) as the basis of its management philosophy, the Olympus Group has
been conducting business activities to fulfill Corporate Social Responsibility (CSR).
Pursuing a positive approach to environmental issues is part of CSR activities leading to
new value creation. The Basic Environmental Plan 2002 entered its second year amid
great support, focusing on the development of environmental technology and environmentally conscious products, and we released environmentally conscious products whichwere manufactured in compliance with Olympus Eco-product Standards. These products
include the SZX7/SZ61, a stereo microscope, the OLYMPUS E-1 digital single lens reflex camera, and the IPLEX MX, an industrial video scope. All products have reduced
environmental burdens while maintaining high performance and efficiency.
The challenge of achieving Zero emissions was accelerated greatly in plants and facilities. All domestic development and manufacturing facilities have met Olympus Zeroemission Standards, with the target of reducing the volume of landfill after intermediate
processing within 1% or less of total amount of emissions. Remarkable improvement
has been made in recycling waste at these facilities.
To promote group-standardized environmental management, we established environmental policies for the Olympus Group and acquired ISO 14001 certification to promote corporate environmental management. I, as the president, play an important roleas the superintendent of this environmental management system.
Corporate business activities may place a considerable load on the global environment.
Many areas exist for improvement, including energy and resource savings, the development of nontoxic products, and the recycling of natural resources. Upholding the corporate slogan "Your Vision, Our Future," we are addressing new value creation and implementing business activities to realize environmentally aware management.

August, 2004

Tsuyoshi Kikukawa
PresidentManagement Philosophy and Environmental Principles
for
the Olympus Group

Social IN
The term Social IN is a word
meaning social values in ourcompany and is a concept
for establishing a relationshipbetween business andsociety with the following

INvolvement

INsight

INspiration

SocialInvolvement

Sharing
Social Values

Creating
New Values

Realization of Social IN
The Olympus Group has made Social IN the starting point for its management philosophy.
Social IN means the realization of a healthy and happy life for members of society in harmony with society,the sharing of common values and the proposal of new values through business.
The basis of our action is to change way of thinking by pushing the boundaries and by fully embracing customer-oriented action.

Olympus Environmental Principles
This reflects Olympus' basic ideas for solving environment problems.
In accordance with its goal of being an excellent corporate citizen, Olympus drafted the Olympus Environmental Principles inAugust 1992 to clearly articulate its basic positions on environmental issues and to set ambitious environmental protection goals,
thereby promoting enhanced environmental protection activities.
This was determined by a management conference following the deliberation of a company-wide environment committee.
Environment Protection Declaration
Olympus, respecting nature and the health and safety of mankind, has resolves through its technological development and through adopting ecologicallycompatible business practices to contribute to the re-establishment of a healthy environment and a society in which sustainable development is possible.

Guideline for Environmental Action
In all business activities, Olympus will give priority to environmental protection and will apply itself with dedication to this task both on an organizational and an individual basis.

1. Technology Development

4. Activity Support

We will develop products and production technologies with a careful and conscientious regard for safety and environmental protection. Furthermore, we will make theresults of such developments available to everybody.

We will cooperate with environmental measures recommended by government
bodies. We will treat regional and international environmental protection
activities with understanding and will actively participate in and support them.

2. Drawing up Norms and Assessing Results

5. Education and Total Staff Participation

We will take the initiative in setting up our own standards and norms. We willassess the environmental impact at each stage of our operations from development through to production and sales.

We will publicize and engage in other activities with the purpose of informing
all Olympus staff of the need for environmental protection. We will encourage
each and every staff member to increase his or her understanding of environmental protection activities at home, at work, and in the community.

3. Protection of Natural Resources

6. Structure to Promote Activities

We will make a united effort to conserve natural resources and save energy.
At the same time, we will push forward with recycling activities such as theretrieval of discarded materials and the reuse of resources.

Under our director in charge of environmental protection, we will make clear
our responsibility to promote environmental protection. We will establish a
structure through which we can take appropriate measures to deal withchanges as they occur inside and outside Olympus.

Environmental Management

Business Activities and Environmental Impact
Olympus seeks to grasp the adverse impact imposed on the global environment by its business activities to reduce such impact.

Major Environmental Impact in Development and Production Processes

INPUT
EnergysP20

Electric power..94,850,000kWh

Office Supplies

MetalssP21

Copy paper ......................123t

Environmental Management

Heavy fuel oil ..........3,254S........Steel, aluminum, brass

Kerosene .................245S

Optical glass

Diesel fuel .................72S

Plastics

Piped water ............190,000K

Gasoline ...................44S........ABS, PC, polyethylene,

Ground water ......1,720,000K

City gas .............710,000K
LPG ...................90,000K
Total .......................1,151TJ

Other Utilities

sP21

polypropylene
Chemicals........Acids, alkalines,
solvents, paints

TJ (terajoule) 1012J

Business Activities and Environmental Impact

Business Activities

Research and development

DesignManufacturing

Development and Production Business Facilities
Technology Research Institutes (Hachioji)
Hinode Plant
Ina Plant
Tatsuno Plant

Aomori Olympus Co., Ltd.
Aizu Olympus Co., Ltd.

Olympus Opto-Technology Co., Ltd.
Head Office
Omachi Branch
Sakaki Branch

Mishima Olympus Co., Ltd.
Shirakawa Olympus Co., Ltd.
Okaya Olympus Co., Ltd.

Olympus Environmental Report 2004

OUTPUT
CO2 Emissions

sP20

Electric power .....33,863t-CO2
Heavy fuel oil.........9,014t-CO2
City gas .................1,521t-CO2
Kerosene ..................615t-CO2
LPG ..........................561t-CO2
Others.......................293t-CO2
Total ........................45,867t-CO2

Emissions of PRTR-listed
sP24
Substances
Toluene..............................6.0t

Emission into
Water Systems

sP25

BOD...................................5.5t

Xylene................................3.4t
Ethylene oxide...................0.8t

Commissioned Waste
Processing

sP22

Waste paper .....................110t
Sludge ................................28t

Recycled Wastes

sP22

Waste plastics ....................18t

Dichloromethane ...............0.3t

Paper and cardboard .......734t

Waste alkalies ....................17t

Ethylbenzene.....................0.1t

Plastics.............................706t

Waste metals and glass .....16t

Others................................0.3t

Waste metals and glass ...510t

Waste oil...............................7t

Total.....................................10.9t

Raw waste and sludge .....430t

Waste acids..........................6t

Waste acids and alkalies ...399t

Others...................................3t

SOx ......................................6t

Waste oil...........................235t

Total......................................205t

NOx ....................................38t

Total...................................3,014t

Boiler Air Pollutants

4

Raw Materials

sP25

Domain of Business

Imaging Systems
Group
Film Camera

IC Recorder

Magnet-optical (MO) Drive

Endoscope Video Information System

Ultrasound Videoscope

Endosurgery System

Endotherapy Accessories

Medical Systems
Group

Life ScienceGroup
Clinical Analyzer

Genome Analysis Systems

Industrial Microscope

Industrial Endoscope

Liquid Crystal Substrate Inspection Unit

Industrial Systems
Group

Distribution

Sales

sP12

Packaging Materials

sP17

Digital Camera..............1,376 t

Cardboard .....................1,977t

Film Camera ....................773 t

Paper................................473t

IC Recorder .....................274 t

Plastics.............................320t

MO Disk Drive .................103 t

Metal ....................................1t

Endoscope ......................776 t

Glass ....................................2t

Microscope .....................593 t

Total ..................................2,773t

Clinical Analyzer ..............589 t

Olympus Environmental Report 2004

OUTPUT
Major Products

Business Activities and Environmental Impact

Biological Microscope

Environmental Management

Digital Camera

Measuring Instruments....725 t
Printer...........................1,104 t
Total .................................6,313 t

5

Environmental Management

Basic Environmental Plan
Every three years, Olympus formulates a Basic 5-Year Environment Plan based on presidential policy. In FY2004, the second yearof the Basic Environmental Plan 2002, we accelerated the promotion of Eco-products, Eco-facilities, and Eco-management.

Ecology Vision 21
Increase environment brand andmaximize corporate values

Realize Corporation Excellence inEnvironmental Management

Environmental Management

Basic Policy

Olympus will promote harmonized environmental
management in the Basic Environmental Plan 2002
by developing the following three aspects of ecology
Products: Introducing Environmentally Conscious Products into all Marketing Fields
Facilities: Meeting the Challenge of achieving Zero emissions at all facilities
Management: Promoting Group-standardized Environmental Management

Basic Environmental Plan

Goals

FY2005• New lead-free products• New products based on LCA• Application of eco-glass materials to new products왎 Elimination of hazardous substances defined in RoHS Directive• Total phase-out of chlorine-based organic solvent (trichloroethylene, dichloromethane)• 40% reduction in CO2 emissions in Japan (compared with the basic unit of sales in FY2001)
왎 15% reduction in gross CO2 emissions in Japan (compared to the basic unit of sales in FY2001)• Execution of efficient environmental management
왎 Establish of a basis for material flow management[Goals already attained are excluded. Newly established goals are marked with왎.]Priority Measures
Olympus Environmental Report 2004

Eco-facilities

Eco-management

Environmental Technology Development andEnvironmentally Conscious Products

Eco-products

Challenge to Achieve Zero Emissions

Promotion of Integrated Environmental
Management for the Olympus Group

1. Application of Product Evaluation Methods (LCA, etc.)
Implementation of product assessment to all products,
green procurement, longer-life products, improved maintainability, Eco-label type 3 products (disclosure of products environmental information)
2. Development of Environmental Technology and its
Application to Products
Elimination of hazardous materials (lead-free solder, ecoglass materials, etc.), application of environmental technology to new products
3. Development of the 3Rs (Reduce, Reuse, and Recycle)
for Packaging Materials
Improvement of packaging (returnable, simpler recycling),
innovation in collection and delivery, reform of transport(modal shift, more appropriate vehicles)

1. Promotion of Energy Saving and Resources Saving
Introduce efficient energy systems (co-generation, heatstored air conditioning and heat recovery system etc.),
enlarged circulation of production service water, closed
system of lens surface treatment drainage
2. Reduction of Waste and More Recycling
Green purchasing, recycling, returnability, more intermediate processing (processing of raw waste etc.)
3. Elimination of Hazardous Substances, Reduction ofEnvironmental Risk
Introduction of pitch-less processing, hexavalent chromate-replacement, Cyan elimination, VOC reduction, soil
condition investigation and risk management in workplaces in Japan, enhancement of environment facility
management

6 The Basic Environmental Plan 2002 (formulated in December 2001)

1. Global Development of Environmental Management
Expansion of ISO 14001 throughout the Olympus Group,
enhancement of environmental education, evaluation ofenvironmental results
2. Better Environmental Communication
By means of environmental accounting and Olympus
Environmental Report, through website, by contributions
to society, and by holding eco-exhibitions inside and outside the company.

: Achieved

 Results for FY2004

: In work

Eco-products (Environmental Technology Development and Environmentally Conscious Products)
Priority Measures
Application of ProductEvaluation Methods• Establishment of independent Eco-product Standards in three areas:
microscopes, cameras, and industrial products• The stereo microscope, digital single-lens reflex camera, and portableindustrial endoscope were approved as Olympus Eco-products.

p12-15• Operation of New Green
Procurement• Green Procurement Standards were reviewed and briefing sessions
held for domestic and overseas suppliers starting in January, 2003.



p18• Introduction of Olympus Life Cycle
Assessment (OLCA)• Eco-label, "ECOLEAF" (Type 3) on the OLYMPUS E-1 digital SLR
was certified as the first in the field for this type of camera.



p15• Application of Hexavalent Chromiumfree Technology to New Products• Different types of chromate treatment are under review
The study on satisfying durability after zinc plating must becontinued.

• Applied to lead-free solder to new products such as the
OLYMPUS E-1 digital SLR• Achieved an eco-glass use rate of 98.5%

• Adopted environmentally conscious packaging for packaging of anindividual set of the OLYMPUS E-1 digital SLR• Adopted cardboard for endoscope carrying cases
Adopted film wrapping for the microscopes to other products, toreduce packing material use

p17

RelatedPage• Introduction and Promotion of
Eco-products• Application of Lead-free Solder to
New Products• Application of Eco-glass to New
Products

Development of the 3Rs for
packaging materials• Formulation and Implementation of
an Improvement Program for
Packaging Materials

Related
Page

P15
P19

Eco-facilities (Challenge to Achieve Zero Emissions)
Priority Measures
Promotion of Energy andResource Savings

Waste Reduction and more
Recycling

Goals

Results

Selfevaluation• CO2 Emissions in Japan: 6.4%
Reduction, Compared to FY2001• CO2 emissions at domestic facilities: The goal was not met, althougha reduction of 4%, compared to FY2001, was achieved.

• Eco-efficiency (consolidated net sales / CO2 emissions) improved by
6%, compared to the previous year (The Shenzhen Plant [China] is
included.)• Assessed energy conservation at domestic plants and the plant in
China



• Achievement of Zero Emissions at
Major Facilities• Achieved zero emissions at all development, manufacturing, and distribution bases• Reduced Waste by 8%, Comparedto FY2001• Reduced waste by 16%, compared to FY2001

p22-23





p19



p25

Results

Selfevaluation

RelatedPage• Group Evaluation Based on Ecoefficiency• Performed efficiency evaluations using data on CO2 emissions and net
sales



• Extension of ISO14001 to theWhole Olympus Group• Started preparation for implementing the Basic Environmental Plan
2005



• Scheduled units acquired ISO 14001 certification
Olympus Logitex, ODI (Olympus Diagnostica GmbH [Irish Branch]), theOlympus Corporation Environmental Management System and KS
Olympus• Substantial Environmental Home
Pages and Environmental Reports• Updated the home page into an HTML format in October• Participation in outside Eco-exhibitions• Participated in Ecoproducts 2003 Exhibition• Achieved recycling rate of 94%• Achieved Recycling Rate of 80%
Elimination of Hazardous
Substances, Reduction ofEnvironmental Risks• Total Elimination of Chlorine-based
Organic Solvent in FY2005• Implementing alternatives to dichloromethane• Elimination of Hexavalent
Chromium• Completed introduction lead-free soldering to the OLYMPUS
E-1 digital SLR processing line at the Tatsuno Plant• Introduction of Lead-free Soldering• Reduced soil contamination at the Okaya site and conducted overseas environmental risk assessment• Reduction of Environmental Risks• Working at individual facilities to eliminate hexavalent chromium

p20-21

p24

Global Development ofEnvironmental Management

Better Environmental
Communication

Goals• Introduced environmental reports in Chinese

p10

p28-29Olympus Environmental Report 2004

Eco-management (Promotion of Integrated Environmental Management for the Olympus Group)
Priority Measures

Basic Environmental Plan

Selfevaluation

Environmental Management

Development of Environmental
Technologies and its
Application to Products

Results

Goals

7

Environmental Management

Environmental Accounting
In FY2000, Olympus introduced environmental accounting in order to assess costs and effects of environmental protection,and has implemented it to promote environmental management.

penses were incurred from improvement in recovering polluted
soil at the Okaya site, found by the soil investigation in FY2003.
In connection with environment conservation, CO2 emissions increased from the preceding year, although intermediate waste
treatment by contract decreased 67% from a year earlier due toaccelerated zero emissions.
In an economic effect of environment protection, energy cost
was 1.75 billion yen, down 3% from the previous year. The
charge for intermediate waste treatment by contract was 15 million yen, down 65% from a year earlier due to accelerated Zeroemissions.

Costs and Effects on Environment in FY2004

600

1,600

200

182

1,080

600

200

'03

'04

Waste Intermediately
Treated by Contract

963

315

-648

-67%

Copy Paper
Purchased

133

127

-6

-5%

Description of
Effects

FY2003

FY2004

Change from
Previous FY

Energy Cost

1,800

1,753

-47

-3%

Waste Intermediately
Treated by Contract

43

15

-28

-65%

Cost of Copy Paper
Purchased

21

19

-2

-10%

Trading of Recycled
Valuable Articles

16

20

4

25%

0

'02

3%

Ratio of
Change

800

0

(FY)

2,028

Unit: million yen

400

100

66,291

Income300

64,263CO2 Emission

1,335

1,200
1,000

Ratio of
ChangeFY2004

Cost Reduction

400

Change from
Previous FY

FY2003

Grouping

418

Environment
Load Index

 Volume Effects Involved in Environmental Conservation

1,618

1,400

512

500

Effects in Business
Place Areas(mil. yen)Amount of Cost

Environmental Accounting

Amount of Capital Investment(mil. yen)

Unit: tonGrouping

Environmental Management

The environmental cost in the FY2004 was tabulated, based on
the Environmental Accounting Guidelines (2002 edition), of the
Ministry of the Environment of Japan. Cost was calculated to include the Shenzhen Plant, one of the largest overseas production
bases, in addition to domestic manufacturing facilities. The environmental cost in FY2004 was 1.62 billion yen, up 21% fromthe preceding year, and capital investment totaled 420 million
yen, down 18% from the previous year. Major investments inequipment such as high-efficiency transformers, energy-saving
air conditioners, etc., for preventing global warming accounted
for 50% of total capital investment. Expenses for collection of
products, development of lead-free technologies, and preventionof global warming and reduction of waste increased. One-time ex-

(FY)

'02

'03

'04

 Transition in Environmental Conservation Cost

 Economy Effects Involved in Environmental Conservation

Unit: million yen
Amount of Capital Investment
Grouping

Major Projects

FY2002Prevention of
Public NuisanceAmount of Cost

RelatedPages
FY2004

FY2003

FY2002

FY2003

FY2004

59

105

60

226

364

187

Global Environmental Installation of energy saving equipment (high-efficiency
Conservation Costtransformers, etc.) to prevent global warming

57

353

211

22

121

302

Resource
Circulation

Reduction of waste and promotion of a recycling drive(wastewater recycling equipment, recycling cost, etc.)

46

14

51

151

280

243

In Upstream andDownstream

Collect and reuse of products(reuse of films for endoscope)

0

0

19

13

43

109

Cost of Control Activity

Management and operation of environmental management

14

40

0

257

292

290

Cost of Research andDevelopment

Development of environmentally conscious technologies(lead-free technology, etc.)

0

0

77

316

225

413

Cost of Social Activities

Premises layout and greening

6

0

0

93

9

1

Cost for Damaged
Environment

Recovery from soil contamination at the Okaya site

0

0

0

2

1

73

182

512

418

1,080

1,335

1,618

Cost inside
Business Area

Replacement of underground tanks with above-groundtanks

Olympus Environmental Report 2004

Total

8
 Cost of Environmental Conservation

Scope: Olympus Corp. and affiliated production companies in Japan,
including the Shenzhen Plant (China) from FY2003 on.
Period of calculation: April 1 to March 31 next year, each

Environmental Management

Environmental Promotion System
Olympus acquired ISO 14001 certification for the Olympus Corporation Environmental Management System to strengthen andpromote environmental management.

Organization of Promotion

President
Chief Executive ofEnvironmental
Management in the
Olympus Group
Corporate Planning
Division

Risk Management
BureauDirector Responsible forEnvironmental Affairs
Person Responsible for
the Environmental
Management in the
Olympus GroupOlympus Group
Environmental
Secretariat(Environmental
Development
Department)

Olympus Group
Environmental Committee
As an advisory panel forcompany environmental
measures, this committee
drafts and deliberates
measures forenvironmental affairs at thecorporate level.

Improvements to andoperation of theenvironmental management
system of the whole
Olympus Group

Environmental Management

Olympus Group
Environmental
Secretariat Meeting

Facility Environmental
Affairs Administration
Meeting

Eco-products ApprovalCommittee
This committee evaluates
the degree of productcompliance with the Ecoproduct Standard(environmentallyconscious standard) andjudges whether items canbe approved as Ecoproducts.

To deliberate priority
measures and key
problems at branches,
this meeting is responsible
for solving general
problems at branches todevelop practicalcompany-wide
environment policies.
Facility Environmental
Secretariat Meeting

Environmental Promotion System

Olympus strives to promote company-wide environmental activities the under exclusive control by the President. The Olympus
Corporation Environmental Management System is run by anorganization consisting of Director Responsible for Environmental Affairs, the Corporate Planning Division, Risk Management Bureau, Olympus Group Environment Committee, Facility
Environmental Affairs Administration Meeting organized bygeneral managers of facilities, and Olympus Group Environmental Secretariat. The Eco-products Approval Committee was established in FY2004 to certify Eco-products (page 12).
Each Group center and facility addresses environmental issues
under the Olympus Corporation Environmental Management
System directly reflecting top management policy. Environmental management organizations are formed at the company center,
facilities, and companies incorporated overseas corresponding to
the Olympus Corporation Environmental Management System(Groups, Centers Environmental Management Organization, Facility Environment Management Organization, and Local Overseas Subsidaries Environmental Management Organization, respectively).
The Olympus Corporation Environmental Management System
operates as the core of the Olympus Group, under which the
mid-term environmental plan, and annual environment policy,
etc., are drafted. In FY2004, Olympus received ISO 14001 certification for the Olympus Corporation Environmental Management System (box at right) (page 10).

Executive Management
Committee

The Olympus Corporation
Environmental Management System

Groups, Centers,
Environmental Management
Organization

Facility Environment
Management
Organization

Local Overseas Subsidiaries
Environmental Management
Organization

 The Olympus Group Environmental Management System

Risk Management

Task Force

Risk Management
Committee
Chaired by President

Risk Management
Supervisors ofGroups, Centers,
Facilities and Affiliates

Risk Management
BureauRisk Management
Promotion Committee
Chaired by Risk Management
Bureau Manager

Groups, Centers,
Facilities
and Affiliates
 Risk Management

Risk Management andPromotion Supervisors ofGroups, Centers,
Business Places andAffiliated Companies

Olympus Environmental Report 2004

As economic activities by corporations increase, we have more
occasions to encounter unexpected crises due to changes in social systems and awareness. Olympus has appointed the President as the Risk Management Supervisor and has formulated
crises management rules for standardized control of crisis information company-wide both in order to prevent the developmentof a crisis and to promote the early solution of problems, should
they arise. These rules apply to environment at risk managements as to enhance environmental protection (page 25).

President
Risk Management
Supervisor

9Environmental Management

Environmental Management System
The Olympus Group uses ISO 14001 environmental management as basic environmental management promotion,and encouraged Group-wide implementation in FY2004.

ISO 14001 Certification

Environmental Management

The Ina Plant, a production facility, acquired the Group's first
ISO 14001 certification, followed by production and development facilities and overseas manufacturing sites. Major development and production facilities in Japan obtained ISO 14001 certification by FY2000, and certification for 10 facilities has beenrenewed.
In FY2004, certification was granted to Olympus Logitex, and
KS Olympus (a sales affiliate) and the Olympus Corporation Environmental Management System. Facilities developed environmentally conscious products, energy saving, and reduced waste
through improvement via environment management.
Among overseas production affiliates, certification was acquired
by Olympus (Shenzhen) Industrial Ltd. in China, Olympus Winter and Ibe GmbH (OWI) in Germany, and KeyMed (Medical andIndustrial Equipment) Limited in the UK. In FY2004, Olympus
Diagnostica GmbH's Irish Branch (ODI) acquired certification.

Environmental Management System

ISO 14001 Certification for the Olympus
Corporation Environmental Management System
ISO 14001 certification prompted an intensive management review by the President and encouraged innovation in Plan-DoCheck-Action in the course of the implementation of the Midterm Environmental Plan and Annual Environmental Policy. We
implemented environmental risk management, including a Risk
Management Bureau, to incorporate environment management.
Since ISO 14001 certification was previously acquired facility
by facility, the Olympus Corporation Environmental Management System is unique and effective for company-wide environmental promotion, according to certification authorities.

Olympus Environmental Report 2004

Interview at examination attended by President Kikukawa(second from left )ISO 14001 Certification by KS Olympus Co., Ltd.
KS Olympus, an Olympus domestic sales agents handling Olympus medical
endoscopes, microscopes, industrial equipment, clinical analyzers, etc., has
24 business branches, including Head Office. In June 2003, an Environmental
Activities Promotion Committee headed by its president was established. As a result of top-down activities, the company established environmental management system targeting all branches and employees. KS Olympus obtained certification as the first
Olympus sales affiliate, followed by the Group's
KS Olympus President
largest number of branches which received certificaKawasaki andtion at the same time.
Certification

Olympus Diagnostica GmbH [Irish Branch] (ODI)
ISO14001 Certification
ODI uses approximately 400 different chemicals as the raw materials to produce its products. The management of these raw materials is a key issue forthe company. We continually improve our environmental compatibility
through the following initiatives, waste vendor consolidation, installation ofabove ground chemical storage tanks and piping, revamp and quality review
of our material safety data management process, and implementation ofchemical risk assessment for the company. The auditor commented, "Veryimpressed with the technical knowledge and expertise of the people met
and the obvious enthusiasm and commitment of the workforce which will bea source of strength to the Environmental Management System going forward. The company has in place the secure foundations of an effective
Environmental
Management
System. A comprehensive set ofEnvironment objectives, targets
and associated programs are inplace driving continual improvement in company environmental
performance and overall sustainable development."
Certification for ODI and Personnel

Facility

Location

Date ofCertification

Ina Plant

Ina-shi, Nagano

February
1997

Tatsuno Plant / Okaya Olympus Co., Ltd.

Tatsuno-machi, Kamiina-gun,
NaganoFebruary
1998

Hinode Plant

Hinode-machi, Nishitama-gun,
Tokyo

July
1998

Aizu Olympus Co., Ltd. / Opnotech Co., Ltd.

Aizu-Wakamatsu-shi, Fukushima

October
1998

Shirakawa Olympus Co., Ltd.

Nishigo-mura, Nishishirakawa-gun,
Fukushima

October
1998

Aomori Olympus Co., Ltd.

Kuroishi-shi, Aomori

November
1998

Olympus Opto-Technology Co., Ltd.,
Sakaki Branch

Sakaki-machi, Hanishina-gun,
NaganoDecember
1998

Mishima Olympus Co., Ltd.

Nagaizumi-cho, Sunto-gun,Shizuoka

June
1999
September
1999

Olympus (Shenzhen) Industrial Ltd.

Shenzhen, China

Technology Research Institutes (Hachioji)

Hachioji-shi, Tokyo

March
2000

Olympus Winter & Ibe GmbH

Hamburg, Germany

May
2001

KeyMed (Medical & Industrial Equipment)
LimitedSouthend-on-Sea,
United Kingdom

March
2002

Olympus Logitex Co., Ltd.

Kawasaki-shi, Kanagawa

The Olympus Corporation
Environmental Management System

Nishi-Shinjuku, Shinjuku-ku, Tokyo
Hachioji, Tokyo

January
2004

Olympus Diagnostica GmbH, Co.

Clare, Ireland

January
2004

KS Olympus Co., Ltd.

Hongo, Bunkyo-ku, Tokyo

March
2004

10
 ISO 14001 certifications for the Olympus Group (as of March 31, 2004)

November
2003

Environmental Management

Environmental Education
It is important to enhance individual employee environmental awareness to ensure environment protection for establishment of asustainable society. Olympus provides environmental education to everyone from new employees to management, together withenvironmental awareness training.

Environmental Education System

Environmental problems may arise globally, and Olympus prepares through environmental education and awareness training
at overseas facilities.
At Olympus America Inc., information is shared with employees
via an intranet.
At KeyMed (UK), environmental issues are introduced in a corporate brochure distributed to new employees.

Company-wide and Facility Education

Environmental Education

An internal auditor orientation course has been held at least
twice a year as part of company-wide training since 1997. In theintervening 6 years, the 24 sessions have been attended by 526
participants.
As part of company-wide education, the company magazine
runs a series on environmental management covering environment-related topics.
Each facility promotes environmental education with its own
business activities.

Environmental Management

Olympus provides environmental education to eligible personnel, business units, and facilities domestic and overseas, consistent with individual responsibilities. Training includes acrossthe-board education mainly conducted by the Human Resources
Development Center of the Human Resources Department andthe Environment Development Department. Facility-specific education is given mainly by plants, and education by independent
education institutes.

Overseas EducationOAI Intranet Display

KeyMed Corporate BrochureInternal Auditor Orientation Course

Company Magazine

Personnel Environment-related Qualifications
Olympus Eco-forum
Each facility sets internal standards and systematically educateslegally qualified personnel in the environment and labor safety
and health to secure the required number of staff members.
Number of
Actual Persons

Qualification

Number ofInternal Standard Statutory Persons

Air

35

16

2

Water Quality

95

29

12

Noise

17

5

0

Vibration

15

3

0

Senior Pollution Control Manager

1

0

0

Manager of Industrial Waste
Requiring Special Treatment

58

13

13

Debriefing for Overseas Facilities

Pollution Control
Managers

Lecture by a Visiting Lecturer

 Number of Environment-related Qualified Persons

Olympus Environmental Report 2004

Following FY2003, a panel
exhibition introducing environmental activities by domestic and overseas facilities, a debriefing session,and a lecture by a visiting
lecturer were held on September 10 and 11, 2003. Inhouse environmental awards
were made to outstanding
panel presentations.

11

Product-Related Measures

Creation of Environmentally
Conscious Products
Ideal environmentally conscious products creating new value are defined by Olympus, which has been creating environmentallyconscious products to reduce the environmental burden throughout the product life cycle, the procurement of raw materials,
manufacturing, distribution, and customer use to after-sales services and product phase-out.

Environmentally
Conscious
Products targetedby Olympus

Eco-products
Product-Related Measures

Environmental
protection and Safety

Energy Saving

Resource Saving

Safe Chemical
Substitution

Products with Increased
Energy Saving

Promotion of Circulationoriented Society via 3R(Reduce, Reuse, Recycle)

 Schematic Diagram of Eco-products

Creation of Environmentally Conscious Products

Olympus Eco-products
In FY2004, we focused on developing Olympus Eco-products
under new Olympus Eco-product standards for environmentallyconscious design.
Olympus Eco-product standards set out product environmental
provisions uniquely advocated by Olympus, including substitution with safe chemicals, the development of products with increased energy saving , and the promotion of a circulation-oriented society via 3Rs for ideal environmental conscious products and maintenance of substantial product assessment and disclosure of product-related environmental information.
Products meeting these standards are defined as Olympus Ecoproducts after evaluation by the Eco-products Approval Committee and approval by the Director responsible for the Environ-mental Affairs. The Olympus Eco-product mark  1) is placed on
approved products and product environmental information disclosed in product catalogs and on the Olympus home page.
Environmentally conscious products meeting Olympus Ecoproduct Standards were first marketed in FY2004.

Definition
Environmental
Protectionand Safety

Energy Saving

Standard• Substances Prohibited or Use-restricted
in Products• Enhanced Safety in Use• Reduction of Power Consumption whenin Use• Lighter, Thinner, Shorter, and Smaller Products• Ratio of Improved Recyclability
Olympus Environmental Report 2004

12

• Discretion• Collecting/Recycling

Olympus Eco-product MarkResource Saving• Indication• Resource Saving in Use

 1)
The Olympus Eco-product markis certified and registered forenvironmentally conscious products designated by Olympus as
Type2Eco-label products.

• Resource Saving during Manufacture• Longer-life Products• Upgrading
Disclosure ofEnvironmental
Information• Environmental Impact Assessment/
Information Provision

 Olympus Eco-product Standards

Product-Related Measures

Olympus Eco-products (1)Realized light-weight, rigid products and saved resources by adopting structural analysis design.

Certified as Olympus Eco-products:
SZX7/SZ61, Stereo Microscopes

SZX7 Galileo Optical System

SZ61 Greenough Optical System

Main Eco-product Features

Product-Related Measures

A series of stereo microscopes SZX7/SZ61, were developed
based on specific product planning and development goals basedon conventional life cycle assessment (LCA) seeking a slim,
compact design through computer-aided engineering (CAE) thatlightened weight and increased rigidity. The SZX7/SZ61 were
the first certified Olympus Eco-products marketed.

Use of Lead-free Glassfor Optics
Lead-free glass is used for all
types of optical glass such as
lenses and prisms.

A rigid light-weight microscope
was developed based on therigidity analysis of basic components such as the brace
and its optimal design through3-dimensional (3D) computeraided design (CAD) to reduce
the size and weight and thenumber of components tosave resources.

SZX7

SZ61

A compact incident-light/transparent lighting unit  1) was developed as an example of electricity-saving accessories using awhite LED as the illumination source to cut electricity consumption to one sixth that of conventional lighting units and to realizea product life 12 times longer than conventional products.

Olympus Environmental Report 2004

Environmentally Conscious Designof Accessories 1) The lighting stand is not certifiable as an Olympus Eco-product.

Phase-out of Adhesives
Improves Separability
and Disassembly
The use of adhesives in positioning and fixing frames for
optical lenses was discontinued to improve separability
and make disassembly easier.

Simulation of CAE Frame Structure
Analysis

Olympus Eco-products (1)Structural Analysis Design
Realizing Light Weightand High Rigidity

13
White LED lighting unit

Product-Related Measures

Olympus Eco-products (2)Dramatically improved performance reduces size, weight, and electricity consumption.

Certified as an Olympus Eco-product:
IPLEX MX, an industrial video scope (endoscope)
The IPLEX MX, the industrial video scope features improved
performance and reduced size and weight. It is designed to be aportable observation device for field operations at high altitudes
and work sites with limited space, and marketed as a certified
Olympus Eco-product.

99.98

100
90

Global warming(converted to CO2)

154kg

Acid rain(converted to SO2)

0.28kg60

Eutrophication(converted to phosphate) 0.02kg

50

Depletion of natural resources(converted to iron ore)
128kg

30

Energy(converted to crude oil)

10

80
70

54kg

40

28.00

22.57

20

Product-Related Measures

0Photochemical oxidant(converted to ethylene)

0.00

0.09

3.14

0.01kgEnergy consumption

2,930MJ

Global warming (converted to CO2)

 IPLEX MX LCA

Main Eco-product Features

Olympus Eco-products (2)Use of a White LED asa Lighting Source and
Newly Developed
Electricity-saving Lithiumion Batteries witha Longer Product Life
A high intensity/low electricity
consumption lamp using thefirst white LED as a lighting
source for industrial video
scopes and a newly developed
high-capacity lithium-ion battery enabled the IPLEX MX,
the industrial video scope tooperate for long periods in field
operations. Electricity consumption was reduced toabout one tenth that of conventional lamps while ensuring
a longer lamp and battery life.

Reduced Size and Weightfor High Portability

Olympus Environmental Report 2004

14

Life Cycle Consumption
and Emissions

The IPLEX series followed 3 generations of 3R design. The scope and main unit make an all-in-one package. The main unit is about
one tenth the size of the first-generation IPLEX and weight, at 4.6 kg, was about one fifth that of the previous model, dramatically saving resources.

Certification of Olympus Eco-products
In FY2004, under self-declared design standards for environmentally conscious products enacted in FY2003, we started inhouse certification of Olympus Eco-products.
The Olympus Group Environmental Secretariat initially examines certification of product development and meeting of design
standards for environmentally conscious products category by
category. Three applications were certified in FY2004, and accredited.

Assessment of Environmental Impact
under Olympus Life Cycle Assessment (OLCA)
Quantitative assessment of environmental load is a key to creating Eco-products and promoting Eco-management. To adopt thisquantitative assessment, themanufacturing technology
unit developed an easy-touse LCA tool similar to the
OLCA and trained those engaged in development at theProduction Engineering Division.
In-house OLCA Training

Product-Related Measures

Olympus Eco-products (3)Implementing lead-free soldering and environmentally conscious lead-free glass.
We achieved the first ECOLEAF certification in the field of digital single-lens reflex camera.

Certified as an Olympus Eco-product:
OLYMPUS E-1 Digital SLR, an interchangeablelens type digital single lens reflex camera
Featuring 4/3 image pickup and an interchangeable lens
mount, the OLYMPUS E-1 Digital SLR  1) saved energy andresources. The new "Four-Thirds System" (page 16) is advocated by Olympus.
Product-Related Measures 1)
Eco-product certification applies only to the OLYMPUS E-1 Digital SLR unit.
Lead-free Zuiko Lens Series

Main Eco-product Features

Use of Lead-free Lenses
Lead-free lenses are used
for all types of optical lenses and prisms.

Use of Lead-free Soldering

Mercury-free Backlight
Source for Liquid
Crystal Display
A white LED is used forthe backlight source of liquid crystal monitors tosave energy and eliminate
mercury.

Olympus Eco-products (3)Lead-free soldering with tin and zinc isused for major electrical circuit boards.
We plan to selectively use lead-free soldering with tin, silver, or copper basedon the thermostable reliability of the surface-mounted component.

Resource Saving, Using
Secondary Batteries forPower Supplies
Resource-saving lithiumion batteries, rechargeable
500 times, are used.

Lead-free Circuit Board

Olympus Environmental Report 2004

Data on Environmental Impact Assessment
under LCAECOLEAF is used to disclose product environmental information managed by an external organization of the Ministry of International Trade and Industry, the Japan Environmental Management Association for Industry (JEMAI: http://www.
jemai.or.jp). ECOLEAF is managed, based on international standards. Type3 labeling computing environmental product load,
based on LCA discloses quantitative data. Products are quantitatively evaluated for environmental consciousness using this data.
The OLYMPUS E-1 Digital SLR first achieved the Type3
ECOLEAF label for digital single-lens reflex camera.  2)

Eco-label, "ECOLEAF" ( Type3)
 2)
Camera and accessories. Interchangeable lenses and other separate accessories are not included.

15

Product-Related Measures

Examples of Environmental
Technology Development
Olympus is developing products, manufacturing technology, and the introduction of application technologies that minimize
adverse impact on the environment during the product life cycle.

New Standard - "Four-thirds" System
for OLYMPUS E-1 Digital SLR

Product-Related Measures
Examples of Environmental Technology Development
Olympus Environmental Report 2004

16

Olympus advocated a 4/3 CCD sensor as the new standard forlens-changeable digital single-lens reflex cameras to produce
better picture quality than 35 mm film and save on electricity.
The image pickup device of the four-thirds system is about one
fourth the size of a 35 mm film camera, making it possible tosave electricity and downsize the camera and interchangeable
lenses, saving resources. A digital four-thirds camera provides
the telephotographic effect of a 600 mm lens with the 300 mm
lens of a 35 mm film camera.

1)
TIPA was organized by representatives of 31 photo and imaging magazines from 12 European countries
and selects the top image products
and technologies each year.

Rapid Prototyping (RP) for Molding:Technology for Experimental Manufacture
Supporting Manufacturing at ProductDevelopment

Lens Size for a 35 mm Camera

Lens Size for the Four-thirds Camera
The lens was about one half the size of thelens for a 35 mm camera with the same
aperture ratio and view angle.

The downsized lens has the same viewing angle
but greater aperture than a 35 mm camera lens.

 Four-thirds System Lens Size

Generally speaking, the full-frame CCD has twice the information per pixel of the interline CCD. The E-1 uses the full-frame
CCD developed exclusively for still pictures for image pickup.
The large acceptance surface ensures pictures with the rich graduation available only with the full-frame CCD and pictures withthe high quality of the 4/3 system.
Four-thirds System Standards achieved the Best Award for Innovative Technology Category of TIPA  1) European Photo andImaging Award 2003-2004.

Plastic components are used in a variety of products. At initial
product development, component performance is evaluated using trial components made of plastic blocks or molded with simplified dies, and the evaluation is reflected in component and die
design for commercial manufacturing of the finished products.
This evaluation conventionally required repeated trial manufacturing of finished product using components made with experimental and modified dies until such products were commerciallyacceptable.
Rapid prototyping (RP) for molding is new plastic molding technology, combined with design support by 3D design (3D-CAD),
evaluating performance at the initial stage using components
with the same quality as products in commercial manufacturing.
We made 22 experimental prototypes using this technology. The
strength of components made from plastic blocks is evaluatedwith this technology and the dimensional accuracy of components to one digit is ensured compared to those manufactured
with conventional simplified dies. Development of this technology also shortened production lead time 9.5 to 14 days compared to the previous 1.5 to 2 months and enables problems in
preparation for manufacturing to be found early and solved.
We are developing new applications of RP for molding and newtechnologies, shortening verification of experimental products
and reducing resources and energy.

Four-thirds System Logo

4/3type CCD

RP Mold

RP Molded Camera Chassis

Product-Related Measures

Environmental Consciousness in ProductPackaging and Distribution
Olympus is reducing the amount of materials used for product packaging, using recycled resources, and adopting smaller packaging to reduce environmental load due to product packaging and distribution. The integration of distribution bases for the Olympus
Group is the next target for reducing the environmental load due to distribution.

Improvements in Product Packaging

Awarded Shield and Certificate of
Merit at Japan Packaging Contest

Improved Packaging for Distribution

Mr. Yasuhiro Kawate, General Manager,
Olympus Shenzhen, Futian Office

Approach to Reducing Environmental Loadduring Distribution
The Distribution Main Center in Kawasaki, Kanagawa (Olympus Logitex Tokyo Center), started operation nearly three years
ago in August 2001.
In FY2004, we reviewed regular transport, etc. Total annualtransport (vehicle ton ~ travel distance in km) by cargo trucks
was 9,009,511 t/km, down about 4% from the previous year.
CO2 emissions by regular transport was 793 tons, down about 3% from the previous year, thanks to the efforts of Logitex employees in reducing environmental load during distribution.
We addressed waste reduction positively for ISO 14001 certification. In-house paper was recycled by professional recyclers
for reuse as cushioning for packaging.

Olympus Environmental Report 2004

In the last 5 years, returnable containers have been used to shipcomponents between plants in China and Japan. Before the useof returnable containers, large amounts of cardboard were used
for transport and scrapped at destinations. The consumption of
cardboard has been reduced since reusable plastic (polypropylene) boxes went into use.
In FY2004, addressing the 3Rs for distribution packaging onplastic container renewal, we started using new containers forcomponent transport reflecting findings from LCA of packaging
design and improvement requirements from distribution sites.
The new 3-piece container consists of a lid (vacuum molding),
removable inner frame (plastic cardboard), and a bottom (injec-

Mr.Masami Kurihara, Production Engineering
Dept., Production Engineering Div. (in Charge of
Packaging Design)

Environmental Consciousness in Product Packaging and Distribution

One-piece Box Packaging for Camera and Lens

Product-Related Measures

Knockdown (one-piece) cardboard boxes with cushioning areused for packaging the OLYMPUS E-1 Digital SLR, realizing
use of a single material, resource saving, reduced assembly, andsimplified packaging. A new environment-conscious packaging
design used in this one-piece packaging saved energy. This onepiece box received the Good Packaging Award - Adequate
Packaging Award - at the 2003 Japan Packaging Contest sponsored by the Japan Packaging Institute.

tion molding). This change in container design, together withweight reduced about 30% that of conventional containers enabled reuse of plastic cardboard due to recycling of molding material for the bottom, saving resources. The conventional plastic
cardboard container could not be washed due to hollow crosssections, and dust, nap, and stains had to be removed using
cleaning cloths requiring excess work. The new plastic container's bottom and inner frame are removable, and edges of the inner frame are sealed to prevent water from entering, enablingcleaning with lukewarm water. The use of identification labels
removable from transport containers by lukewarm water simplified cleaning, which also saved energy. By May 2005, 400,000
plastic containers will be completely recycled.

17
The New 3-piece Container

Stuffing Cushioning

Recycled Cushioning Rolls

Product-Related Measures

Green Procurement
To supply high-security products, Olympus is promoting "Green Procurement" working with business partners to eliminate
hazardous chemicals and procure materials and components with less environmental load.

Approach to Green Procurement

Product-Related Measures
Green Procurement

Olympus has long been committed to Green Procurement andhas evaluated business partners' approaches to environmental
protection and surveyed chemical substances in parts and assembly components. Olympus also implemented environmentallyconscious quality control including together with quality, cost,and delivery time (QCDE) control. In FY2004, we surveyed
chemical substances using Ver. 1.1 in line with the Triangle
Guidelines of the Japan Green Procurement Survey Standardization Initiative. Based on the result of this trial survey, we aresystemizing the selection of survey items, transcription on a survey response format and its submission, control of response
deadlines, etc., and building of a database using information to
fulfill fully-fledged Green Procurement in line with new uniform
survey format Ver. 2.0.
In line with full-fledged implementation of uniform survey format Ver. 2.0, we held briefing sessions for our business partners
starting in Cebu, the Philippines, in January 2004. Sessions werethen held in February and March for domestic and overseas
business partners based on Olympus Green Procurement Standards for cooperation in the survey on Green Procurement.
We are carefully reviewing information on chemical substances
to evaluate the inclusion or exclusion of chemical substances.
We will expedite green procurement to prepare for the EU Directive 2002/95/EC (RoHS) "Restriction on the use of certain
hazardous substances in electrical and electronic equipment" becoming effective in July 2006.

EU Directive Restricting the Use of Hazardous
Substances
In April 1998, the European Commission released a draft directive on the collection and recycling of waste electrical and electronic equipment and restriction of the use of certain hazardous
substances in electrical and electronic equipment (WEEE andRoHS) and the implementation of assessment concerning environmental impact of products through their life cycle (EEE).
Later, the "WEEE and RoHS" directives were enacted as
2002/96/EC (WEEE) and 2002/95/EC (RoHS) in February 13,
2003. RoHS restricts the use of four heavy metals - cadmium,lead, mercury and hexavalent chromium - and two specificbrominated fire retardants - PBB and PBDE - in electrical andelectric equipment, and will be applied to electrical and electronic equipment in ten product categories manufactured or marketed in Europe after July 2006.
Olympus will implement design development, quality control,
inventory control, and sales strategies complying with these directives.

Participation into Green Procurement Research
Sharing Council
The Green Procurement Survey Standardization Initiative (JGPSSI) was set up to reduce survey work related to the green procurement survey by standardizing lists of surveyed substancesand response formats and improving response quality. Since it
was set up, the JGPSSI has been introducing procurement surveys adopted in Japan to Europe (EICTA - the European Information and Communication Technology Association) and the
US (EIA - Electronic Industries Alliance) targeting its authorization as a global standard. Olympus also joined the JGPSSI in
preparing a standardized survey format.
Chemical substances surveyed were designated and listed
through consultation with the EICTA and EIA, and Trial Guidelines were released in January 2003 and standardized survey format Ver. 2.0 in July 2003.

Olympus Environmental Report 2004

Japanese Version

English Version

Chinese Version
Olympus Green Procurement Standards Ver. 2.0

18
Briefings for Business Partners

Product-Related Measures

Substitution Using Safe Chemicals
To enable customers to use Olympus products safely, we have been eliminating the use of hazardous substances in advance of
disclosure of information on safe chemicals and the enactment of regulatory regulations.

Elimination of Hazardous Substances to Ensure
Environmental Protection and Security

Substances Used in
Production Process

Banned Substances

16 Substance Groups

Level 1:
Use banned at production• Cadmium Compounds• Lead Compounds• Mercury Compounds• Hexavalent Chromium
Compounds• Specific Bromine-based Fire
Retardants, etc.

Level 2:
Used at production stopped inline with restrictions

Controlled Use
Use at production and disposal
at Olympus

Category

14 Substance Groups• Arsenic Compounds• Beryllium Compounds• Nickel Compounds• Selenium Compounds, etc.

Substances used in
Manufacture Process
32 Substance Groups

Level 1:
Use banned at production• Substances specified or
regulated by Ozone Layer
Protection Law• Prohibited substances forprevention of soil andgroundwater Contamination• Dust specified by Air Pollution
Control Law• Class 1 specified chemicals by
the Law on the examination andregulation of manufacture, etc.,
of chemical substances, etc.

Level 2:
Use at production stopped inline with restrictions

Controlled Use
controlled use at production
and disposal at olympus

Powder painting is introduced
for exterior painting of microscopes to improve conventional painting with diluted
solvents that involves the release of solvents into the atmosphere and requires treatment for waste paint sludge
and waste water in painting
booths. Powder painting
eliminates atmospheric release of diluted solvents andreduces plastic waste by recycling powder paints.

Powder Painting of Components for
Microscopes

Olympus Environmental Report 2004

Banned Substances

Powder Paint

Substitution Using Safe Chemicals

Category

Many electrical parts
mounted on circuit boards
for cameras are more temperature-sensitive than ordinary electrical parts, andmay be damaged if soldered with tin, silver, or
copper, which have a highmelting point than lead.
Having developed manuLead-free Reflow Line at Tatsuno Plant
facturing techniques related
to nitrogen gas-sealed reflow and cream solder printing, we installed a soldering processthat uses tin and zinc with a low melting point in leading manufacturing facilities in Japan and China to promote lead-free manufacturing, selectively applying soldering with tin/zinc or tin/silver/copper based on the reliability of heat resistance ofelectrical parts.

Product-Related Measures

In FY2004, we reviewed in-house standards for chemical substance use, related to design, manufacture, and procurement of
Olympus products and reflected the review in environment-related substance control regulations Ver. 2. New Olympus Ecoproduct Standards were implemented based on these regulations(page 24, control performance data on chemical substances).
We adopted environmentally conscious technologies in manufacturing to ensure that hazardous substances were replaced withsafe substances including lead-free solder, lead-free lenses,
PVC-free and mercury-free substances, and cleaning and antiseptic solutions with low toxicity for medical equipment, powder paint, and trivalent chrome solder baths.

Lead-free Reflow Soldering LineClass 1 Substances specified
by PRTR(excluding substances specified
in the above division)

19
 Standards for Environment-related Substance Use

Powder Painted Microscopes

Manufacturing-Related Measures

Energy and Resources Management
Olympus promotes energy saving to save energy and protect against global warming. While energy consumption by the Olympus
Group increased as businesses expanded, consumption at domestic facilities decreased and the basic unit of sales demonstrated
dramatic improvement.

Transition in Total Energy Use

Transition in CO2 Emissions

Manufacturing-Related Measures

Total CO 2 emissions due to manufacturing by the Olympus
Group increased to 66,291 tons of CO2, up 2.6% from the previous year. Emissions are increasing as business expands. Unit
consumption to sales decreased by 55% from a year earlier only
at domestic facilities. We are now working to maintain production with high energy efficiency by promoting safe-energy programs, reducing energy consumption in production, installingstreamlined equipment, and applying production innovations.
Starting in FY2004, we are actively implementing programs forpreventing global warming by controlling CO 2 emissions andnonenergy-related greenhouse gas emissions.

Domestic Emission(t-CO2)

 Shenzhen Emission

70,00016,04260,000CO2 Emissions

Energy and Resources Management

In FY2004, energy consumption at domestic facilities was 1,151
terajoules, down 3.9% from the previous year. CO2 emissions also decreased by 5.6% from the previous year. Unit consumption
to sales was down 23% from a year earlier. We strive to operateby using environmental resources more effectively. Since
FY2001, we have maintained a track record of energy consumption at the Shenzhen Plant in China, our largest overseas facility.
In FY2004, due to increased production worldwide, energy consumption including that of the Shenzhen Plant was 1,567 terajoules, a 3.9% increase from the previous year.
In FY2004, determining energy consumption by 10 domestic facilities and the facility in China and consulting personnel responsible for equipment at manufacturing facilities about theperformance of inspection of transformer station, pumps, motors, air compressors, lighting, air conditioners, manufacturing
equipment, etc., and proper timing of environmentally conscious
equipment replacement to implement ideas for energy-related
improvement, Olympus established a plan to save energy. We
are emphasizing energy saving to cope with increasing overseas
energy consumption reflecting the expansion of global business.

50,00010,476

12,60347,72445,966'01'02

20,424

48,27943,81040,00048,58045,86730,00020,00010,000
0

'91

(FY)

'97

'03

'04

 Transition in CO2 Emissions

Items
CO2 Emissions

Olympus Environmental Report 2004

20

Unit
t-CO2

FY1991

FY1997

FY2001

FY2002

FY2003

FY2004

43,81048,27947,72445,966

48,58045,867

Amount of Energy

TJ

1,084

1,187

1,194

1,159

1,198

1,151

Net Sales

100 mil. yen

1,574

2,017

3,129

3,283

3,464

4,252

Unit Consumption
to Salest-CO2/
100mil. yen

27.8

23.9

15.3

14.0

14.0

10.8

Unit Consumption to
Sales (100 in FY1997)

%

―

100

64

59

59

45

Crude Oil
Conversion Basis

S

28,06930,72330,91030,00031,01229,806

LPG 1.2%

Diesel Oil 0.4%

Kerosene 1.3%

Gasoline 0.2%

City Gas 3.3%

Heavy Fuel Oil* CO2 emissions: CO2 emissions for each year are calculated on the basis of factors specified in the FY2000 Regulations for the Law
concerning Promotion of Measures to Cope with Global Warming.
* Conversion to Joules: For electrical power, factors specified in Regulations for the Law concerning Rational Use of Energy are used
for each year but for other types of energy, factors specified in Overall Statistics about Energy is used.
* Conversion to crude oil: Conversion is conducted on the basis of factors specified in Regulations for the Law concerning Rational
Use of Energy.
 Energy Consumption and Energy Consumption per Unit of Net Sales

19.7%
Electric Power 73.8%

 CO2 Emissions by Type of Energy Source in FY2004

Energy-saving Activities

Resource-saving Activities

Timer-controlled Operation of Blowers and Air Conditioners
Olympus Opto-Technology Co., Ltd.,
Sakaki Branch

Water
Consumption(10,000 m3 )

200
150
100

15
187

Ground Water

Piped Water
Weight: tons

15
173

19

16
163

13

17 172

160

140
120

138 140

80

50

40

0

(FY)

Saving Energy for Large Air Conditioners(Cool Air Intake, Duct Bypassing, Air Conditioners)

128 125 133 123

0'99 '00 '01 '02 '03 '04(FY) Transition in Water Consumption'00 '01 '02 '03 '04

 Transition in Copy Paper Consumption

Manufacturing-Related Measures

Two 11 kW blowers operated 24 hours for aeration in the wastewater treatment facility. Reviewing air quantity required for
wastewater treatment showed that one blower was sufficient.
We installed a calendar timer for air conditioners to stop cold air
intake during spring and fall, off-season. Thanks to these two
measures, annual electricity consumption was reduced to261,000 kWh.

Total water consumption in FY2004 was 1.91 million m3, by
22% increase from a year earlier. Copy paper consumption was
123 tons, down 8% from the previous year.

Shirakawa Olympus Co., Ltd.

Reduction in Water Consumption
Shirakawa Olympus Co., Ltd.

In FY2004, Shirakawa
Olympus used 9,300 m3 of
piped water. Since waterfrom a nearby village wasdelivered to the workplaceat comparatively high pressure, we decreased pressureusing a pressure control
valve to reduce water consumption by 1,000 m 3 ayear.

Energy and Resources Management

Two cool air intake air conditioners were used to cool the
workplace for circuit board assembly of about 1,000 m2 floor
space even in winter becauseof heat generated through soldering. Bypassing the air conditioner duct made one air
conditioner sufficient, reducing power consumption of
44,000 kWh per year.

Pressure Reduction Valve for Water Lauout after Duct Bypassing

Replacement with High-efficiency Transformers

Old transformers installed over 15 years ago lost large amountsof electricity. We installed high-efficiency oil transformers, cutting electricity loss by 22% over conventional transformers andreducing electricity consumption by 40,000 kWh a year.

Ina Plant
Olympus Environmental Report 2004

Olympus Opto-Technology Co., Ltd.,
Omachi Branch

Water Circulation System

At the Ina Plant, lens cleaning equipment consumes
large amounts of purified
water for lens cleaning. We
reduced water consumption
by 1,200 m3 per year by repurifying used water, using
circulation system.

21
High-efficiency Transformers

Water Purification Equipment

Manufacturing-Related Measures

Waste Management and Recycling
In FY2004, we focused on realizing our Zero emissions declaration.
As a result, all major facilities in Japan achieved Zero emissions.

Waste Oil 8%

All Major Facilities in Japan Achieved
Zero Emissions

Waste Acids and Alkalines 13%

Manufacturing-Related Measures
Waste Management and Recycling

In FY2004, we worked to achieve Zero emissions declarations atmajor facilities. This was accomplished by 11 major development, production, and distribution bases in Japan.
Olympus prioritized reduction of the amount of final disposal,
and its criterion for Zero emissions is to reduce the volume oflandfill after intermediate processing within 1 % or less of total
amount of emissions. We perfected assessment standards andregulations for assessing Zero emissions.
The assessment criterion was compliance with regulations, suchas consignment contracts with contractors, manifests, etc., andwhether promotion at each work site succeeded and maintenanceand control after achievement was sustainable.
Individual facilities separated and collected waste and promoted
recycling, starting with Tatsuno Plant's achievement of Zeroemissions in June and all major facilities in Japan had achieved
Zero emissions by March 2004.
We issued Olympus Zero Emissions Achievement Certificatesto individual facilities.
Olympus will continue to promote Zero emissions at sales andmarketing sites in Japan and bases abroad.

Waste Paper and Cardboard 25%

Food Waste and Sludge14%
Waste Plastics 23%
Waste Metals and Glass 17%

Total 3,014 tons
 Breakdown of Amount of Recycled Materials

Transition in Commissioned Waste Processing
To reduce commissioned waste processing, we reused and recycled waste within the company, focusing on lens sludge, waste
plastics, waste acids, and waste alkalies, all unique to our company. As a result, commissioned waste processing discharged
from development and production sites in Japan stood at 205
tons in FY2004, down 642 tons (76%) compared to the previous
year and 2,408 tons (92%) compared to the standard year
(FY1997).

Waste Acids 3%

Others 1%

Waste Oil 3%
Waste Metals and Glass 8%
Waste Alkalies 8%
Assessment

Waste Paper 54%

Waste Plastics 9%

Sludge 14%

Total 205 tons
Achievement Certification Award Ceremony

Olympus Environmental Report 200422

 Breakdown of Commissioned Waste Processing

(t)
3,000

 Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate

2,500
2,000

Amount and Rate of Recycling in FY2004

1,799

1,500

1,245

1,000

Olympus counts the amount of resources recycled as the amountof those reused as resources for recycling by facilities or outsourcing contractors out of total emission materials at each facility. This amount includes materials that were sold as valuable
resources.
Recycling in FY2004 was 94%, up 18% from the previous year.
By looking for ways to thoroughly separate and collect waste
and routes for recycling, it has become possible to recycle evenwaste considered to be conventionally difficult to recycle.

500

484

0

16

29

34

1,920

1,474

942
38

2,641

3,014
100

94

60

76
48

40

56

20
0

500

205

1,000

847

1,500

1,530

2,000
2,500

(FY)

2,613
'97

80

2,420

2,399

'98

'99

2,579
'00

2,049
'01

'02

'03

 Transition in Amount of Recycling Materials and Commissioned Waste Processing'04

Introduction of Waste Liquid Treatment Equipment
and Reuse of Distilled/Discharged Water

Waste Reduction and Recycling

Hinode Plant
Increase Reuse of Film Spools for Endoscopes
Shirakawa Olympus Co., Ltd.

Spool

Spool

SpringWinding Core

Manufacturing-Related Measures

We are collecting and reusing endoscope film cassettes, which
consist of a spool, a spring, and a winding core. Collection now
stands at 100% - 6 tons annually.

Since waste liquid discharged from dicing saws used in the manufacturing line for electronic scanning ultrasonic oscillators contains lead exceeding 0.1 ppm in concentration, waste liquid had
to be treated separately from general industrial water. We introduced waste liquid treatment
equipment able to process
1,200 liters a day, and produced recycled water after concentrating waste liquid without
outsourcing it for disposal. We
store recycled water in a tankwatering to trees, washingcommuter buses, etc., using a
Waste Liquid Treatment Equipment
pressure pump.

 Spools for Endoscope Film

Ina Plant

In addition to achieving Zero emissions, we are improving waste
processing. In FY2004, we focused on reducing different typesof chips from metal processing plants and set up a sectional
committee within the Group to improve employee awareness ofwaste separation and to prepare temporary storage and plural
buckets for metal chips. Thanks to these efforts, we recycled
nearly 50% of metal chips weighing nearly 9 tons into valuable
resources and reduced waste generation and processing costs.

Shirakawa Olympus Co., Ltd.

When cleaning cutting parts with water, we changed from conventional cleaning to cleaning by high-pressure spraying of soft
water (temperature 50 ºC) to parts for removing cutting oil. We
plan to cut costs by about 4 million yen a year by reducing theuse of petroleum-based detergent and cleaning hours. We arethermally recycling cutting oil after collecting oil using an
oil/water separator. We are also reusing soft water for cleaning.

Waste Management and Recycling

Changing Aqueous Cleaning for Cutting Parts
Recycling Different Metal Chips into Valuable Resources

Reducing the Number of Cardboard Boxes
Mishima Olympus Co., Ltd.
Reduction of Waste Discharged
by Introducing an Acid Recovery Equipment
Tatsuno Plant

Olympus Environmental Report 2004

To reduce waste acid discharged from plating worksites, westarted operating an acid recovery equipment in November
2003. We expect to reduce discharged waste
acid, classified as a specially controlled industrial
waste, by about 26 tons a
year.

Parts for clinical analyzers are small-lot products of a wide variety procured from many suppliers. This generates much wastematerial such as cardboard for packaging and shock-absorbent
cushioning material. Working with other firms, we made special
returnable boxes for packaging corresponding to the specificshape of each part, reducing waste. We cut transport costs
thanks to firms being willing to take back returnable boxes. In
FY2004 alone, we reduced cardboard by about 600 kg. This also reduced the transport cost of other firms.



23
Acid Recovery Equipment

Special Returnable Box Used for Packaging
 Folding plastic box. The shock absorbent-material inside is returnable.
 Plastic cardboard. The shock-absorbent material is for exclusive use.

Manufacturing-Related Measures

Chemicals Management
Manufacturing lines use many different types of chemical substances, some of which could impact harmfully on the environmentand health.
To reduce this impact, Olympus is taking different steps to reduce the discharge of chemical substances into the environment.

Catalytic Decomposition of Ethylene Oxide Gas

PRTR Surveys

Aomori Olympus Co., Ltd.

Air for dilution

Catalytic reaction

The amount handled of the 174 chemicals specified by the four electric andelectronic associations for PRTR survey
The amount handled of the 354 chemicals specified by Japan's PRTR Law

4CO2 +4H2O +Heat

Ethylene
oxide

CarbondioxideAirborne
oxygen

Water
vapor

Chemicals Management

76

60

Reduction of Ethylene Glycol

55

Ina Plant

41

39

40

35

32

29

We looked for an alternative to ethylene glycol, and developed analternative for all lens automatic processor lines. By eliminating
the use of ethylene glycol, we reduced its use by 350 kg a year.

20
0
(FY)

2C2H4O + 5O2

 Decomposition and Chemical Reaction Formula

101

80

Catalytic bed

Gas from aeration

Mixingchamber

100

Sending gas
after treatment into
the atmosphere

Ethylene oxide gas
from sterilizationequipment

Heatert
120

Ethylene oxide gas is widely used in hospitals and health clinics
for sterilization. We introduced catalytic decomposition equipment for discharging ethylene oxide sterilization gas without impacting on the environment, discharging it as a harmless gas.

Prefilter

Manufacturing-Related Measures

We have conducted PRTR (Pollutant Release and Transfer Resister) surveys since FY2001 for 354 substances subject to the
PRTR Law promulgated in FY2002. Each facility examines
chemical substances whose annual handling exceeds 10 kg, andround up the result for substances handled by all facilities, total
handling exceeded 100 kg.
Total handling of substances subject to the PRTR Law in
FY2004 stood at 29.27 tons, down 2.50 tons compared to theprevious year.
We had completely phased out trichloroethylene by March
2003, with few exceptions, by giving work environment maintenance first priority.

'98

'99

'00

'01

'02

'03

'04

 Transition in Handled PRTR Substances
Unit: tons

Material
Code

Olympus Environmental Report 2004

24

Chemicals

AmountHandledVolume ReleasedAir

162-amino ethanol

0.54

30

Epoxy resin of bisphenol A (liquid)

0.26

0.02

40

Ethyl benzene

0.19

0.13

42

Ethylene oxide

3.67

0.75

43

Ethylene glycol

0.43

63

Xylene5.12

69

Hexavalent chromium compounds

0.67

101

Acetic acid 2-ethoxyethyl

0.30

0.02

145

Dichloromethane *1

0.47

0.33

207

Copper water-soluble salt

0.13

211

Trichloroethylene *1

0.11

224

1.3,5-trimethyl benzene

0.24

227

Toluene8.44

230

Lead and lead compounds

5.12

231

Nickel

0.36

0.00

232

Nickel compound *1

1.91

0.02

243

Barium and water-soluble barium compounds

0.11

253

Hydrazine

0.12

283

Hydrogen fluoride and water-soluble hydrogen fluoride salts

0.80

304

Boron and boron compounds

0.24

307

Poly (oxy-ethylene)=alkyl ether*2

0.32

309

Poly (exy-ethylene) = nonyl phenyl ether

0.25

Total

29.27

Soil

VolumeRemovedVolumeRecycled

Volumeof Landfill

0.54
0.17

0.06

0.01

0.06
2.87

0.06

0.43
1.67

3.40

0.02

0.67
0.11
0.04

0.17

0.00

0.01

0.12

0.05

0.05

0.11
0.24
2.43

0.04

2.83

1.52

0.77

0.03

0.23

0.04

0.06

0.24

0.74

0.62

0.29

0.01

0.10

5.97

0.06

0.06

0.00

0.02

0.80
0.19

0.03

0.01
10.85

0.49

0.00

0.29

0.03

*1: Dichloromethane, trichloroethylene, and nickel compounds (including nickel sulfate)
are subject to survey of noxious substances.
*2: Limited to those with number of carbons in alkyl base radical is 12 to 15 and their mixture.
 PRTR Survey Result

Water Area

VolumeVolumeConsumed Recorded

0.25
0.00

4.17

3.11

9.34

1.32

0.00

Totals may not correspond to the actual sum due to rounding off.

Manufacturing-Related Measures

Risk Management
In FY2003, we cleaned up the Okaya site, where contamination was confirmed to exceed the standard, and implemented soil
improvement measures.
We are also developing, positively, environmental assessment abroad.

Cleaning up Soil at the Okaya Site

Environmental risk was assessed at overseas plants at Olympus
Optical Technology Philippines, Inc. (OPI), and at China's Shenzhen and Panyu Plants. We visited OPI affiliates to match environmental management and improvement items. In environmental assessment and environmental risk diagnosis abroad, we observe laws and regulations of
the governing country and implement assessment or diagnosis by setting up, globally,
stricter voluntary standards.

Building

BlowerVolatilization

Excavation

Risk Management

Discharged
into theatmosphere

Environmental Risk Assessment

Activated Ventilation duct
charcoal
adsorption
equipment
VOC gas generated by volatilization
Gas after activated charcoal adsorption

Preventing Air and Water Contamination

 Soil Cleanup Process

Emergency Training

The Olympus Group observes laws and regulations and ensuresthat individual sites prevent air and water from being contaminated by setting voluntary control standards severer than applicable regulations for maintaining and managing environmental
facilities.
( t/y )
45
40 40.1
35
30
25
20
15
10
6
5
0
(FY) '01

NOx SOx

38.4

39.7

38.0

( t/y )
7.0

6.7

6.0
5.0
4.0

5.2

5.5

'03

'04

4.2

3.0
2.0

6

6

6

'02

'03

'04

Change in Volume of NOx and Sox Emission
from Boilers

1.00(FY) '01'02

Change in Volume of Water Pollution BOD
Emission

Lawsuit/Penalty/Complaint

Meeting on Emergency Training at Head Office

In FY2004, Olympus faced no violations of environmental laws,
lawsuits, penalties, fines, or other problems whatsoever.
The single complaint about noise we received related to a plant
located in a semi-industrial zone we handled by upgrading theventilation duct fan and reducing noise, even though no threshold measured near the plant was exceeded.

Olympus Environmental Report 2004

Up to last year, we reported simulated training in emergencies at
each facility. To obtain ISO 14001 certification in January 2004,
for the Olympus Corporation Environment Management System, we implemented emergency training to improve risk management, collectively managing risk information company-wide.
We checked the company's intranet Emergency Report System
to see if information is accurately and unfailingly transmitted
through the emergency communication route and each contact
point. Linked with simulated emergency training at the Tatsuno
Plant, the risk management section, the Public Relations & Investor Relations Department (Main Office, Shinjuku Monolith
Building), and the Environmental Development Department
joined in training, setting up countermeasures for Head Officeand emergency press conferences.

Emergency Training at Tatsuno Plant

Manufacturing-Related Measures

We cleaned up soil at the Okaya site, where contamination ofsoil was found by a general soil survey in FY2003. Soil inwhich trichlorethylene exceeded the environmental standard wasplaced in a sealed building tovolatilize the substance. Soilwas collected, cleaned, and returned to the original site. Soilcontaining heavy metals was
broken up and replaced withclean soil. Contaminated soil
was reused as cement materiSoil Cleanupal, completing cleanup.

Execution of Environmental Risk Assessment inOverseas Plants25Social Activities

Social Contribution
Olympus contributes to the local community and next generation at each site worldwide based on a socially responsible
management concept (Social IN).

Taking Part in the Day in The Life of Africa Project as a Premiere Sponsor

Social Activities
Social Contribution

In February 2002, about 100 world's foremost
photojournalists, including 2 Japanese, fannedout across Africa to capture images within 24
hours, launching a magnificent project. Olympus donated to all the participating photographers full set of SLR digital camera equipment,
and portable dye-sublimation printers, to fully
support the project. Olympus also organizedtraining sessions to help them familiarize withthe equipment, and assembled techinical support team during the project. A photography
book was published in English, French, andGerman. All earnings went to the African
AIDS Education Fund through the Project Secretariat. Olympus-sponsored exhibitions heldin Tokyo in June, in Kobe in August, in Seoul
in November 2003 and in Pusan in February
2004 were well received everywhere. In September, the Third Tokyo International Conference on African Development (TICAD3) was
held mainly involving the Japanese Government, UN, and NGOs. Olympus held a miniexhibition at the hall and donated several setsof photography book .
In October, Olympus co-sponsored an exhibition with the UN Development Programme(UNDP) at UN Headquarters in New York as
part of the UN's poverty-fighting campaign.
At the opening ceremony where we welcomed
UN Secretary-General Kofi's wife, two UN
Vice-Secretaries, and others from the UN,
Olympus Chairman Kishimoto donated$33,000 earned from the exhibition in Tokyo
to the Millennium Development Goal  1) .
These vivid photos send out signs of hope for
Africa and help make people worldwide consider issues to be faced regarding Africa, suchas AIDS.

 1) In 2000, a 15-year program was adopted at the UN Millennium
Summit to develop activities by setting up 8 targets: eradicating poverty
and hunger worldwide, implementing elementary education, gender equality, peace, eradication of AIDS, etc. 2003 saw the start of the program.

Circuit Exhibition throughout Tokyo

UN Opening Ceremony
From the left Mr. Mark Gumz (President, Olympus
America Inc), Mrs. Nane Annan (wife of the United
Nations Secretary-General), Mr. Masatoshi Kishimoto(Chairman, Olympus Corporation), Mr. Ibrahim
Gambari (United Nations Under-Secretary-General),Mr. Shashi Tharoor (United Nations Under-SecretaryGeneral), Mr. John Issac (participating photographer)Supporting WWF Japan by Nature Photo Calendar
Olympus cooperates closely with WWF Japan,
the world's largest private nature preservationgroup. 2004 is the 19th year this Nature PhotoCalendar has been published  2), and this project has securely taken root, since Olympus became a co-sponsor of WWF Japan. The calendar emphasizes environmental considerations,e.g., nonpolluting, avoiding the use of PVC
wall hangings, and printing all pages on 100%
recycled paper. The calendar's book format
ensures that pages need not be removed each

Olympus Environmental Report 2004

26

time a month begins. Income from the calendar goes to funds for nature preservation at theWWF.
 2) This calendar is available only in Japan.

2004 Edition of the Nature Photo Calendar

Olympus America Inc. Colorectal Cancer Awareness
Olympus America Inc.(OAI) has undertaken
numerous initiatives to increase public awareness and screening for colorectal cancer. A
high-profile initiative is Olympus America's
support of the National Colorectal Cancer Research Alliance (NCCRA). Recently, an OAI
spokesperson presented a check for $500,000
to the NCCRA on national television (NBCTV's "The Today Show"). OAI also supports
National Colorectal Cancer Awareness Month,an activity of the Cancer Research and Prevention Foundation, in March each year. OAI isalso a sponsor of a nationwide tour of the
Colossal Colon, a public outreach program forcolorectal cancer awareness featuring Molly
McMaster, a 27-year-old colon cancer survivor. OAI helped as a sponsor of a 20-city
tour of The Colossal Colon  3) which was open
to the general public.
 3) Colossal Colon is forty foot long, four foot tall crawl-through replica of
the human colon.

Molly McMaster, a 27-year-old colon cancer survivor
and Bob Reinhardt (R) from OAI pose with The
Colossal Colon.

Olympus Schweiz AG Support for Ecological Research in Borneo Forests
pact of logging. Researchers identified thehighest number of Ephemeroptera (mayflies)
ever recorded in the world - 10 of them previously unidentified. They named one of these"Prosopistoma Olympus," in appreciation of
the help given by Olympus Schweiz AG over
the years.

Company Paper ECHO Issued
from Olympus Europe GmbHSocial Activities

The Museum of Zoology in Lausanne was oneof the institutes to take advantage of special
conditions offered by our Swiss subsidiary(Olympus Schweiz AG) to acquire a SZX12
stereomicroscope, a BX51 upright microscope
and a C-3000ZOOM digital camera for the
support of a study by the Laboratory of
Ecosystem Management (GECOS) at the
EPFL (Swiss Federal Institute of Technology).
14,000 insects were collected from forest
streams in Borneo to aid in measuring the im-

Olympus UK Ltd. Support for The Julia Margaret Cameron Trust
glory and it now plays host to permanent exhibition of Julia Margaret Cameron's work. Not
only that, but Olympus UK has been pivotal inpromoting photography at this historic venue
by bring photographers such David Bailey,
Lord Lichfield, Barry Lategan and John Swannell to Dimbola Lodge to exhibit their photography. By bringing new and exciting photographic work to this historic venue, Olympus
UK is helping to add to the cultural diversity
on offer in this stunning part of UK.

Social Contribution

Olympus UK is a proud supporter of the Julia
Margaret Cameron Trust at its base at Dimbola
Lodge on the Isle of Wight. Julia Margaret
Cameron was a pioneering photographer of hertime. In an age when women photographers
were rarity, Julia Margaret Cameron shone out
as a great photographer and has been muchrevered ever since. Dimbola Lodge is the original house that she lived in on the Isle of Wight
and where she entertained other creativecelebrities such as the great writer Tennyson.
The building was in need of substantial
restoration which started in 1994. The restoration has brought the house back to its former

Photographer Lord Snowdon (M) and Graeme
Chapman (R) and Mr. Ron Smith (L), who is the
Chairman of the Julia Margaret Cameron Trust.

KeyMed (Medical & Industrial Equipment) Limited Supporting Orphans and Road Safety in Uganda
may's Baby Unit, Adolescent Centre and Day
Care Clinic. KeyMed is also actively involved
in improving the hazardous road safety conditions in Uganda. Working in collaboration
with the Ugandan Police, City Council and the
Rotary Club of Kampala West, a total of 14
projects have been completed to help reduce
deaths and injuries in certain accident blackspots in Kampala.

Donated Toys Being Put to Good Use at Mildmay Day
Care Clinic

Olympus (Shenzhen) Industrial Ltd., Planting Trees in Shenzhen City
December 2003, Olympus Shenzhen Industrial
Ltd., participated in a tree planting exercise at
the Shenzhen City International Flower andGardening Fair. This event was held jointly byShenzhen City and the Shenzhen City Green
Fund, targeting greening and landscaping in
the city. The 200 employees of Olympus
Shenzhen planted 208 trees, sprinkled eachwith water, and promised to join together visiting the planted trees next year. People weredeeply impressed by employees' sincerity andcommitment.

Olympus Environmental Report 2004

KeyMed has established links with Mildmay
International, a charity specializing in the palliative care of AIDS patients in the UK and
Africa, and provides financial and practicalsupport for orphaned and starving children suffering from AIDS in Uganda. As a result ofappeals for toys, clothing and equipment, coordinated by KeyMed, 8 ~ 20 ft containers fullof donated items from staff and the local community have been shipped to help equip Mild-

27
Planting Trees in Shenzhen City

Social Activities

Social/Environmental Communication
We communicate with local communities by disseminating environmental information or taking part in local community events.

Holding Scientific Seminar for Children

Social Activities

Scientific seminar is for elementary and juniorhigh school students to increase children's interest in science. In 2003, this seminar washeld 4 times by volunteer employees to teachchildren the wonders and arcane aspects of science through optical experiments. These werereceived well by participants. Volunteers enjoyed seminars as much the same as the children, so calls for 30-80 volunteers are an-swered at once. Olympus continues to offer
opportunities for children to explore science
whenever possible.

Scientific Seminar Held at a Junior HighSchoolOlympus America Inc. (OAI) Digital Photography Education and OutreachSocial/ Environmental Communication

OAI started a new program to bring digital
photography education to students ("the photographers of tomorrow"), senior citizens andart institutions. Some of the students who havebeen reached through this program to date are
disadvantaged youth in Philadelphia, Washington, D.C. and Tampa, Florida. In addition, digital photography programs are being presented
to senior citizens as a part of an active lifestyleand to enable them to keep in touch with family and friends. These programs are made possible through the loan or donation of Olympus
equipment. OAI also supplies course materials
and instructional support.

Environmental Advertising"Expanding High Performancein Environmental Consciousness"

Ecoproducts 2003 Exhibition

We acquaint newspaper and magazine readers with Olympus' thoughts on the environment, e.g., creating products that are highperformance, even for the environment.

OAI "Visionary" professional photographer
Nick Kelsh shows some of his publishedphotographs to fourth graders at Clara Barton
Elementary School in Philadelphia.

We displayed products at Ecoproducts 2003
Exhibition held at Tokyo Big Sight in December 2003, presenting them in three zones- the Management Zone for introducing
Olympus' environmental efforts, the Productzone for introducing Type II Eco-label products, and the natural science classroom forchildren to cultivate interest in the environment. Most display setups were reused, andthe few that could not be recycled.

Olympus Booth at Ecoproducts 2003
Exhibition

Display at Product Zone

Olympus Environmental Report 2004

Environmentally Conscious Neon Sign
New Olympus neon signs are installed in
Hachioji and Ginza.
This sign expresses Olympus' "uplift" byfusing light and digital design in an environmentally conscious manner. Low-pressure
inverters brighten neon luminance and use
40% less electricity than conventional neonsigns.

Neon Sign at Ginza

28
Olympus Environmental Advertising
Neon Sign at Hachioji

Environmental Report and Environmental Home Page
Olympus has been issuing an annual Olympus Environmental Report since FY2001 as a key tool in environmental communication. In
FY2004, we issued the first Chinese version, joining Japanese and English versions issued the previous year, to inform more people about
Olympus' environmental activities. On the updated social/environmental activities section of the Olympus home page (http://www.olympus.co.jp/jp/corc/environment/), we are disclosing content and details not covered by the Environmental Report.

Japanese Version(11,000 copies)

Social Activities

Environmental Report 2003 and Circulation

English Version(3,000 copies)

Chinese Version(2,300 copies)

Olympus Home Page: Social and Environmental Activities

Environmental Report 2003 Questionnaire: Items to be Improved and Responses to the Questionnaire

Results of Questionnaire on Olympus Environmental Report 2003

Number of Respondents: 107 ( As of March 31, 2004 )

Q1

Q2

Q3

Which most closely describes you?

What is your overall impression of the
Olympus Environmental Report?

How do you evaluate our environmental
efforts?

Others 20%
Resident near
Olympus Facilities 2%

Blank 1%Student 2%
In Charge ofCorporate Environmental
Activities 23%

Customer 16%

Slightly difficult tounderstand 2%

Blank 2%

Of average difficulty 12%

Slightly insufficient 1%

Blank 3%

Of averagesufficiency 8%
Very easy tounderstand 51%

Business Partner

27%

Sufficient 22%

Social/ Environmental Communication

We deeply appreciate the many warm and insightful opinions and impressions to Environmental Report 2003, and are reflecting them inEnvironmental Report 2004.

Very sufficient 66%

Easy to understand 33%

Member of Government
Member ofOrganization 2%
Environmental Group 5%
Researcher/Trainee 2%

Very difficult to understand 0%

Very insufficient 0%

Opinions on Olympus Environmental Report 2003
Points to be Improved

Reflection on Olympus Environmental Report 2004

Main Related Pages

p32-39

Environmentally conscious products are difficult to understand without specific products illustrated.

sss We indicated specific examples of Olympus Eco-products using photos.

p12-16

Projected goals for the following year should be mentioned.

sss We mentioned goals to be attained in FY2005 in the Basic Environmental Plan, after reviewing it.

Environmental accounting was the only part difficult to understand.

sss We expanded space describing specific efforts in each cost category.

p8

The Okaya site wants to improve soil conditions as soon as possible.

sss We improved soil within the FY2004 budget and give results.

p25

Third-party opinions should be included.

sss Our current policy for preparation of the report is to in-house document facts in good faith.

-p6

Good Points
Reports reflected opinions.
Descriptions seemed better than in the 2002 edition.
The finished report is easy to read thanks to informative banner headlines on two facing pages or one
page.
Very agreeable because articles focus on environmental issues, although product content is somewhat
overdone.
Information is useful to employees in charge of the environment, since specific activities are detailed.
I was impressed by your efforts to contribute to the local community, such as participating in local activi-

ties to pick up trash. I actually witnessed such work.
Social contribution pages helped me better understand corporate activities.
You clearly mentioned environmental education from organization to practical teaching.
Very understandable emphasis on considerations toward the environment and development of environmental technology in dealing with products.
Inclusion of comments from research institutes regarding soil contamination
Actually observe that you are conducting activities such as soil surveys, moving underground piping
above ground, etc.

Olympus Environmental Report 2004

Many more case examples should be introduced.
Pages that compare efforts made at each plant, such as energy and resource saving should be sss We included efforts at individual facilities as domestic and overseas site reports.
We indicate formats so you can compare contents of facility reports.
increased.

29Social Activities

Health and Safety
Olympus is promoting the management of work safety and improved health and safety standards that go beyond simple
compliance with regulations.
We are promoting health by working closely with medical care and health fields and introducing new programs.

Control of Labor Safety

Social Activities

Each Olympus facility works toward eradicating potential disasters, such as through regular patrols, traffic safety guidance, etc.,
targeting zero tolerance of danger in the work environment. In
FY2004, the 39 labor accidents were up 19 cases from the previous year. This was due to increased traffic accidents on the way
to work.
To maintain and improve safety and a comfortable working environment, each facility measures noise and dust in the workplace and the concentration of organic solvents and chemicals in
the atmosphere based on the Industrial Health and Safety Law.
In FY2004, most facilities fell under the first control division,
but the 9 workplaces of 5 plants, falling under the second andthird divisions, indicate that noise produced by manufacturing
equipment is causing problems that we are now taking measures
to resolve.
Items

Health and Safety

FY1999FY2000FY2001

FY2002

FY2003

FY2004

13

20

22

20

20

39

Accidents
Accidents Resulting
in Lost Days
Accidents Not Resulting
in Lost Days

1

5

9

7

8

7

12

15

13

13

12

32

Lost Days

14

25

238

163

41

149

 Number of Labor Accidents

Categories

FY1999FY2000FY2001

FY2002

168

162

105

114

125

133

Category 2

8

7

1

2

4

6

Category 3

2

2

2

2

5

3

178

171

108

118

134

142

FY2003Olympus has established aportal,Onaka-no-Kenko.com(Healthy Stomach.com) on digestive diseases and endoscopy forthe general public. The site provides wide-ranging information
on gastric health and endoscopy,"Onaka-no-Kenko.com" Home Page
from health checks  1) answer("Healthy Stomach.com")
ing simple questions on the Internet to stomach conditions to be checked and the introductionof examination procedures and treatment for internal organs andspecific diseases, the role of endoscopic examination, and leading-edge endoscopy.

FY2004

Category 1: A workplace where environment management is appropriately carried out andwhere it is desired that current environment management processes be maintained.
Category 2: A workplace where the appropriateness of environment management is
midway between that of categories 1 and 3 and where it is desired that measures betaken to shift the workplace into category 1.
Category 3: A workplace where environment management is inappropriately carried out
and where it is desired that environment management processes be quickly improved.
 Number of Workplaces in which Working Environment is Measured

Olympus Environmental Report 2004

30

Health Backup Site "Onaka-no-Kenko.com"(Healthy Stomach.com)

 1) This is only a rough indication, so if you are worrying about your health, please consult yourdoctor.

Category 1

Total

PSA inspection, etc. The Olympus Health Insurance Association is strengthening in-house physical examination and offers
information to employees and their families through the Olympus Health Insurance Association Home Page and "Healthy
People" health insurance news.

New Physical Examinations
Starting from April 2003,
Olympus introduced a new
in-house physical examination for preventing lifestylerelateddiseases,andstrengthening screening forcancer. Major items added
The Olympus Health Insurance Association
to conventional physical exHome Page
aminations are combined
stomach pepsinogen and endoscope examination, direct chest Xrays, abdomenal ultrasound, fundus oculi examination, lung helical CT, large intestine endoscope, gynecological examination,

Walking Campaign
Preventing lifestyle-related diseases, starting from FY2001,
Olympus has set 3 months from September to November for awalking campaign and encourages employees to walk at every
opportunity. In FY2004, campaign year 4, participants numbered 1,581, 87 more than the previous year, and those achieving 10,000 steps a day hit 62.7%. We open this walking campaign as a walk rally through Japan, and based on our calculation, we start at Wakkanai in the first campaign, and are expected to arrive at Hiroshima in the fourth campaign. In FY2005,
the last year, in which campaign 5 is to be held, we are heading
toward Kagoshima. In FY2004, we issued a certificate bearing
the name and number of steps to all participants, including those
who walked more than 600,000 steps (insured) or more than728,000 steps (nonworking dependents).
First
time

Third

time

Fourthtime

1,237 1,410

1,494 1,581

Number of Participants Whose
Final Number of Steps is Registered

1,237 1,309

1,318 1,470

-

884

630

Number of Participants Who
Walked 10,000 Steps a Day

486

778

810

921

Rate of Final Participants
Who Completed Walking (%)

39.3

59.4

61.5

62.7

Number of First Participants

Walking Campaign
Certificate

Secondtime

Number of Applicants

Result of Walking Campaign

561

Social Activities

Personnel System and Human Resource
Development
Olympus is proactively creating a workplace where all employees can exert their true abilities and achieve self-actualization, andintroducing personnel and cultivating special abilities and performance-based principles.

Basic Policy

Equal Gender Employment Opportunities

Olympus plans personnel policies and Human Resource Development policies based on the basic corporate concept that themost important way to realize a value-creating corporation isthrough its personnel.







100

[Human Resource Development Policy]
The basic policy of ability development relies on voluntary
practice, and the most basic personnel development is Onthe-Job Development (OJD), meaning self-development
through job performance.


100

80 37

27

20

37

24

73

80

63

76

'00 '01
50
Women 74
Men 125 134

'02
23
91

'03
53
90

'04
42 (People)
133(People)

60
40

Number of
Employees
Transferred

Number of
Job Seekers

Number of Employees
Transferred

1999

24

50

21

2001

44

23

2000

41

47

20

2002

32

16

2001

43

36

22

2003

29

7

2002

69

46

22

2003(June)

83

28

15

2003(Dec.)

92

37

16

In-house Recruitment of Desired Personnel:
Number of Staff over the Last 5 Years

In-house Search for Desired Jobs: Number ofStaff over the Last 3 Years

22

81

75

73

84

78

'00

'01
8
24

'02
23
61

'03 '0436
52 (People)
193 186(People)

0

0
Year

Women 7
Men 30Gender-centered Employment in Irregular
HiringOlympus College
Olympus College proactively provides business and technicalcourses for enhancing professionalism based on personnel policies and cultivation.

Highly Advanced Technician Development
SystemBy systematically upgrading technique and technical ability, wetarget (1) pursuing high professionalism, (2) multiplying skills,(3) guiding and teaching technical employees in charge of development, (4) nurturing oftechnologies and techniques, and (5) launching
and guiding of jobs outside the company.
Individual level is evaluated, based on a skill
evaluation chart, and employees meeting qualifications receive a special
title as high-level technicians.
Genichi Kurata of the mechanical group at the Ina
Plant received an award from the Ministry of Health,
Labor and Welfare and awards from sponsors in thelathe category, at the 21st Skills Grand Prix cosponsored by Japan Vocational Ability Development
Association and All Japan Skilled Workers
Federation).

Olympus Environmental Report 2004

Number ofApplicants

16

Personnel System and Human Resource Development

Number of
Job Types

27

50

63

Gender-centered Employment among New
HiringTo help support our personnel management policies of respect
for individuals and self-sustaining efforts, high expertise andmorale, and promoting performance and ability-based assessment, we implemented in-house recruitment of desired personnel in 1990 and an in-house search for desired jobs in 2001. Inhouse recruitment of desired personnel is a scheme in which
staff members can apply, at their own discretion and without thepermission of their immediate bosses, for a recruitment request
placed by any given job section, and upon acceptance throughthe interview, they can freely accept the offer from the job section without restriction. In-house search for desired positions is ascheme for promoting transfers within the company in which
staff members look in-house for jobs they want for a year after
obtaining permission of their immediate bosses. The two
schemes are collectively referred to as the "Challenge System."
The policy of respect for individuals and self-sustaining efforts
calls especially for trusting and respecting the initiative of eachindividual and relies on individuals to develop their career paths
and desired skills. The "Challenge System" was implemented tonurture such self-sustaining professionals.

25

20

Year

Challenge System

19

Social Activities[Personnel Policies]
Respect for individuals and self-sustaining efforts
High expertise and morale
Promotion of performance/ability-based assessment

Olympus scrupulously avoids gender-based hiring of new graduates, irregular hiring, promotion, and salary raises. Olympus
proactively employs and uses personnel with self-sustaining professional awareness, well-balanced personalities, high expertiseand morale, in line with basic personnel policies of respect for
the individual and nurturing of self-sustaining staff, and highly
specialized skill and high morale.

31Site Report

Approaches at Home and Abroad
Each base at home and abroad approaches the environment and society based on regional considerations.

Location: 2951 Ishikawa-machi, Hachioji-shi, Tokyo 192-8507
Phone: +81-426-42-2111 (direct)

Technology Research Institutes (Hachioji)Land area: 89,552m2 Gross floor area: 70,767m2

Business area: Development of medical services, image, industry-related and other matters, development of components, production technology

Site Report

Technology Research Institutes (Hachioji) is a basefor developing products and technology for the Olympus Group and is the largest facility in Japan. Thiscenter consumed huge amounts of energy in experiments or trial production, but in FY2004, the center
reduced electricity by 7% (450 kWh/person), promoting and strengthening energy-saving grass-roots activities. The center used to discharge huge amounts ofrejected materials and waste fluid caused by trial production, but as a recycle activity, Technology Research Institutes (Hachioji) recycled sludge in waste
fluid produced into coolant for ovens at iron mills, although intermediate treatment of sludge is still on
commission, and eventually improved recycling from
74% to 91%.
In contributing to the local community, 20 employees

volunteered for the 20th Hachioji Welfare Festival in
May 2003. Booths were enthusiastically received byvisitors, and employees taught them how to makekaleidoscopes, demonstrated industrial endoscopes,
and took photos for visitors with digital cameras.
Crowds were attracted by the performance of the
Olympus Japanese Drum Group "Hibiki." We distributed Eco-organic fertilizer made from kitchen waste
discharged from restaurants in Hachioji, free ofcharge, which was appreciated by many visitors.

 Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

1,000

91.4

100

74.2
500

59.3

570.0

774.8

50

342.6

0

0

235.1

197.9

73.0

500
Performance of Olympus JapaneseDrum Group "Hibiki"

'02

(FY)

'03

'04

Approaches at Home and Abroad

Transition in Recycling Waste and Recycling
Rates

 Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Waste

EnergyPRTR Amount HandledElectricity(10,000kWh)

Crude oil(kl )City gas(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Xylene(t)

Toluene(t)

Ethyleneoxide(t)Others
(t)

1,910

84

708

1

59

8,732

37.7

29.7

5.7

774.8

91.4

0.03

0.03

0.10

0.11

3

Location: 34-3 Hirai, Hinode-machi, Nishitama-gun, Tokyo 190-0182
Phone: +81-42-597-7111 (direct)

Hinode Plant
Business area: Production of medical services and industrial endoscopes and ultrasonic products

Olympus Environmental Report 2004

The Hinode Plant faces a big environmental burden
due to its electricity consumption and reducing this is
critical to the plant. Specifically, we are improving
capacity use and operation from reduction in electricity consumption and efficient use of electricity as follows:
1) Execution of scheduled operation of air conditioners2) Improvement of pressure control for compressors3) Use of ice storage system for air-conditioning4) Improved operation of air conditioners in CPU
rooms
The results of these activities were evaluated highlyby the Kanto Area Electricity Use Streamlining Committee, which presents awards each year for our efforts.

Based on Guidelines on Occupational Health and
Safety Management System issued by the Ministry of
Health, Labor and Welfare in 1999, we integrated labor safety and health activities, previously done byanother organization, into our environmental management, and launched an environmental health division
responsible for safety and health. We eventually integrated these two activities into cyclic Plan-Do-CheckAction.

Mr.Satoru Hayashi, Planning Group Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(%)

100

50

80.5

81.9

51.9

51.5

12.6

11.4

'02

'03

97.9

63.9

100

50

0

0

1.4

50
Highest Award Plaque for Streamlining of Electricity Use

(FY)

'04

Transition in Recycling Waste and Recycling
Rates

Waste

PRTR Amount HandledElectricity(10,000kWh)

LPG(1,000m )CO2conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Ethyleneoxide(t)Others
(t)

206

26

898

1.0

0.0

0.4

63.9

97.9

0.37

0.05

3

Land area: 8,486m2 Gross floor area: 10,606m2(t) Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Energy32

Mr.Noboru Nakano, General Affairs
GroupLocation: 5128 Oaza-Ina, Ina-shi, Nagano 396-0021
Phone: +81-265-72-1111 (direct)

Ina Plant
Business area: Optics microscope production

Land area: 38,863m2 Gross floor area: 38,677m2

at the relay, etc.
The sounds of the big drum make the start of the relay
exciting and are received very favorably. The Ina
Plant also picks up trash from the Tenryu River, measures 24-hour water quality, etc. We are creating communication with the local community going far beyond the framework of environmental ISO.

Site Report

The Ina Plant established a system based on the standard regulated by the Occupational Health and Safety
Assessment Series, OHSAS-18001. The OHSAS enabled us to collectively control occupational healthand safety, and environmental risks. Our Environmental Secretariat is working on integrating environmental management and health and safety management.
In communication with the local community, we takepart in local events in addition to environment-related
matters. At the Ina Festival every August for over 20
years, more than 200 employees participate. Citizens
tell us they looking forward to our dance troupes and
Neputa every year. We have been sponsoring thespring high-school Ina Ekiden Road Relay since 1996
and participate in drum performances, directing traffic

Mr.Satoru Mizutani, General AffairsGroup Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

500
87.4

250
0

33.6

395.4

97.4

100

374.5

50

183.3

0

56.8

10.2

250

Spring High-School Ina Ekiden Road
Relay of Spring

Ina Festival

500

362.1

'02

(FY)

'03

'04

Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Energy

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Trichloroethylene
(t)

Lead
compound(t)

Xylene(t)

Toluene(t)Dichloromethane(t)

Others
(t)

1,119

845

5

15

185

6,867

7.8

0.0

2.4

374.5

97.4

0.11

0.06

0.55

0.60

0.20

1.26

3

Location: 6666 Inatomi, Tatsuno-machi, Kamiina-gun, Nagano 399-0495
Phone: +81-266-41-4111 (direct)

Tatsuno Plant

Business area: Digital camera/liquid crystal inspection unit production, semiconductor research and development

Land area: 125,840m2 Gross floor area: 44,000m2

in front of the office in June and October with 500
participants and collected 85 kg trash in environmental improvement and motivated employees toward environmental activities. We cleaned the 500 m drainwith specialized brushes from the office, removing
water stains, algae, and pebbles, thus keeping the areaclean.

Mr.Takaaki Nakamura, General AffairsGroup Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

1,000

83.7

100

980.8
500

61.8

577.5

50

347.8
0

0

215.1

119.0

29.2

500
(FY)

Cleanup

'02

'03

'04

Transition in Recycling Waste and Recycling
Rates

Data on Records of Energy, Waste and PRTR Amount Handled (FY2004) * Including data on Okaya Olympus Co., Ltd.

Energy

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Lead
compound(t)

Xylene(t)

Toluene(t)

Others
(t)

2,536

1,358

12

10

22

12,970

23.8

5.5

0.0

980.8

97.1

1.28

0.41

0.07

3.15

3

97.1

Olympus Environmental Report 2004

The Tatsuno Plant is located at the center of Nagano
Prefecture and has facilities in Tatsuno-machi andOkaya City. We achieved zero waste emissions, themost important challenge in FY2004, and recycling
operation and maintenance has stayed at 99.5%. To
eliminate toxic substances, we started changing conventional solder to lead-free solder on manufacturinglines for cameras and Liquid Crystal Substrate Inspection Units. Studies on alternatives to hexavalentchromium are in progress and we have entered thefirst stage for experimenting with and evaluating replacements.
It is now the 7th year since we obtained ISO 14001
certification, a given in regional area cleanup that has
been actively implemented.
We picked up trash from the 1.2 km long public road

Approaches at Home and Abroad

Transition in Recycling Waste and Recycling
Rates

33

Site Report

Approaches at Home and Abroad

Location: 2-248-1 Okkonoki, Kuroishi-shi, Aomori 036-0357
Phone: +81-172-52-8511 (direct)

Aomori Olympus Co., Ltd.
Business area: Production of medical services processing apparatuses

Site Report

Aomori Olympus, located in northeast Japan, isa pioneer in the cleanest, latest plant facilities. We
lead Aomori Prefecture enterprises in ISO 14001 certification, having received our first in 1998 -only thesecond in the prefecture. To reduce waste in ISO
14001 activity, we have introduced a raw-garbage
processor for recycling kitchen garbage from theemployees' dining room into compost for nearby
farms, thereby achieving our target for zero raw
garbage disposal. We have also implemented themonitoring of electricity and strengthened monitoring
as a measure to cut down on power use.
In taking part in environmental activities in thelocal community, we help in cleaning up rivers
flowing through the city. We also take part inKuroishi Neputa to support Aomori's long history

Land area: 26,345m2 Gross floor area: 8,967m2

of local festivals, for 25 years in a row, to date.

Mr.Hiroyuki Ishizawa, General AffairsGroup Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

81.8

87.7

94.6

100

70.3
53.0

50

50

38.2
0

0

8.9

7.4

4.0

'02

'03

'04

50
(FY)

Kuroishi Neputa Festival

Approaches at Home and Abroad

Transition in Recycling Waste and Recycling
Rates

 Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Energy

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Toluene(t)

Ethyleneoxide(t)Others
(t)

343

128

20

1

16

1,743

4.0

0.0

0.0

70.3

94.6

0.23

2.87

0.01

3

Location: 500 Aza-Muranishi, Oaza-Niidera, Monden-machi, Aizu-Wakamatsu-shi, Fukushima 965-8520
Phone: +81-242-28-2111 (direct)

Aizu Olympus Co., Ltd.
Business area: Production of medical services endoscopes

Olympus Environmental Report 2004

Aizu Olympus began working toward zero emissions
in 1998, recycling waste after separating it into 62
types. We added processing when we updated thewaste water processing facility, and neutralized thickacid and alkali generated in plate processing, in-houseto reduce industrial waste. We have achieved the Zero emissions standard to reduce the volume of intermediate landfill after processing within 1% or less of
total amount of emissions. After our efforts were reported in the local press, the Environmental Divisionof Aizu-Wakamatsu City recommended our company
for the 2nd Aizu-Wakamatsu-shi Environmental
Grand Prix and we received an Environmental Awardin the Facility category for reducing the environmental burden.
This year, we also took part in the city's annual envi-

Land area: 63,657m2 Gross floor area: 27,975m2

ronmental festival in Aizu-Wakamatsu-shi, introducing our activities for environmental conservation
through panels and models. Our booths distributedorganic fertilizer produced in our raw garbage processing for free and had a trivia section, and printed
stickers as gifts. This was very well attended this year,
just as in FY2003.

Mr.Yasuo Ikeda (L) and Mr.Kazuharu Watanabe(R), General Affairs Group Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

300

75.8
150

51.1

235.6

258.8

100
50

0

0

75.4

150

28.5

162.7
Testimonial, 2nd Aizu-Wakamatsu
City Environmental Grand Prix

"Environmental Festival in Aizu" Aizu
Olympus Booth

300
(FY)

'02

'03

'04

Transition in Recycling Waste and Recycling
Rates

 Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Lead
compound(t)

Xylene(t)

Toluene(t)Dichloromethane(t)

Others
(t)

1,234

729

11

5

5

6,516

21.3

4.4

2.8

258.8

90.1

2.79

3.93

6.08

0.05

10.67

3

90.1

170.0

Energy

34

(%)

100

Location: 3798 Aza-Higashihara, Oaza-Tokiwa, Omachi-shi, Nagano 398-0004
Phone: +81-261-22-6111 (direct)

Olympus Opto-Technology Co., Ltd., Omachi BranchBusiness area: Design and fabrication of metal mold, MO molding, parts assembly and production

ty consumption in mold forming and processing plastic waste. We are therefore replacing conventional
forming equipment with energy-saving equipment andreusing waste in-house or recycling it thermally. We
are working together to reduce burdens on the environment.

Site Report

The Omachi Branch is located in an area favored bynatural beauty throughout the year. The majestic viewof the North Alps peaks is a familiar sight from the office. We are engaged mainly in mold forming, molded
lens forming, and assembly of finders for cameras, andtrade with partners is increasing annually.
The Omachi Branch, which deeply values social harmony, takes part in local summer festivals, encouraging temporary employees to experience the exotic
mood of such events and deepen communication. We
make the company tennis court available to local residents free of charge, and have some 20 employees
take part in spring and fall local cleanup. This year,
we picked up about 4 kg of empty cans and cigarettebutts from the public road near the company.
Our environmental efforts focus on reducing electrici-

Land area: 17,810m2 Gross floor area: 7,116m2

Mr. Toyomi Kobayashi, Quality Team Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

200

99.2

100
24.2

0

58.0

46.3

100

173.6

50

128.5

0
1.5

100
200

181.2

'02

(FY)

Cleanup

149.3

'03

'04

Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Energy

Waste

PRTR Amount HandledElectricity(10,000kWh)

LPG(1,000m )Gasoline( kl )

Others(kl )CO2conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Lead
compound(t)

Xylene(t)

Toluene(t)Dichloromethane(t)

Others
(t)

883

11

2

13

3,258

1.5

0.0

0.0

173.6

99.2

0.10

0.16

1.33

0.07

0.04

3

Location: 1355 Nakanojo, Sakaki-machi, Hanishina-gun, Nagano 389-0602
Phone: +81-268-82-2361 (direct)

Olympus Opto-Technology Co., Ltd., Sakaki BranchBusiness area: Production of camera lenses and printers

Land area: 41,415m2 Gross floor area: 15,475m2

is nearly 500 m long and crosses a drain - whichmakes for a lot of afternoon sweat! In June, we collected nearly 10 light vans full of cut grass. Residents
appreciated our aid in the village's joint work.
Mr. Tsutomu Honma, Lens Technical
Processing Team Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

200
100

77.5
64.5

61.1

182.0

136.7

100.8

0

100.0

87.0

200
(FY)

50
0

29.1

100

Cleanup

100

'02

'03

 Transition in Recycling Waste andRecycling Rates'04

Olympus Environmental Report 2004

At the Sakaki Branch, the ratio of conventional polished lens to glass-forming lenses is increasing, accounting for 55% of the electricity consumed. We are
now shifting our polishing process from polishedlenses for compact cameras to large-caliper, high-precision polished lenses for the OLYMPUS E-1 digital
SLR.
All Employees teamed up in zero emissions efforts in
September 2002, creating a management system,
sharing environmental information via bulletinboards, and setting up new waste separation. Sludge
generated in lens polishing is particularly difficult torecycle, but in the future, we will be working to recycle all waste and attain our target of zero waste.
In the local community, we cut grass along the MidoRiver during environment week each year. The area

Approaches at Home and Abroad Transition in Recycling Waste andRecycling Rates

Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Energy

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Xylene(t)

Toluene(t)Dichloromethane(t)

Others
(t)

829

69

2

3

16

3,206

15.9

5.5

7.7

100.8

77.5

0.05

0.09

0.15

0.06

3

35

Site Report

Approaches at Home and Abroad

Location: 128 Shimotogari, Nagaizumi-cho, Sunto-gun, Shizuoka 411-0943
Phone: +81-55-973-1311 (direct)

Mishima Olympus Co., Ltd.
Business area: Development, manufacture and service of blood analyzing unit

Site Report

Mishima Olympus has focused long-term on two inhouse environmental activities. One is a monthly environmental poster - now in its sixth year - put out
by the environmental secretariat covering such wideranging issues as electricity and waste reduction, recycling, and requests for environmental audits.
The other is morning cleanup inside and outside theplant. We have been cleaning company gardens daily
since Mishima Olympus was founded. We also pickup garbage and waste that accumulate on nearby
roads. From Monday through Friday, divisions taketurns cleaning while being careful to avoid traffic accidents during the 8 o'clock commuting rush. Local
residents appreciate our effort, and employees havebecome used to being asked by total strangers about
the company's morning cleanups. We are happy to be

Land area: 7,066m2 Gross floor area: 5,876m2

contributing to such activities and enhancing the corporate image.

Mr.Kaname Hasegawa, Purchase Group Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

100
74.2

50

49.5
44.0

55.5
46.1

50

54.5

0

50

0

44.9

'02

(FY)

Cleanup

37.0

18.9

'03

'04

Approaches at Home and Abroad

Transition in Recycling Waste and Recycling
Rates

 Data on Records of Energy, Waste and PRTR Amount Handled (FY2004) * Substances applicable to PRTR not treated.

Energy

Waste

Electricity(10,000kWh)

Gasoline(kl )CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

102

3

369

6.6

12.3

0.0

54.5

74.2

Location: 3-1 Aza-Okamiyama, Oaza-Odakura, Nishigo-mura, Nishi-Shirakawa-gun, Fukushima 961-8061
Phone: +81-248-27-2211 (direct)

Shirawaka Olympus Co., Ltd.

Business area: Production of medical services mechanical appliances

Olympus Environmental Report 2004

Shirakawa Olympus' policy is to preserve the scenic
local environment for future generations and operatingin harmony with the beautiful Abukuma Mountain site
our enterprise is privileged to occupy. In FY2004, we
focused on reducing CO2 emissions, achieving Zeroemissions certification, and reducing well and pipedwater consumption. To reduce CO2, we measure each
workplace and facility electricity consumption andmonitor plant-wide electricity consumption. Based onsuch information, we will work to implement a detailed reduction program for each workplace andequipment. In working with the local community, we
marked the company's 25th anniversary by starting
cleanup of Nihigo-mura, the source of the Abukuma
River, and a walking campaign to pick up trash along
mountain trails while improving resident and employ-

Land area: 76,550m2 Gross floor area: 11,500m2

ee health. In this campaign, 218 employees and family
members collected some 80 kg of trash. We also held
annual summer charity fundraisers at festivals, donating an MIC-D digital microscope to Nishigo-mura.
We make the company tennis court available to thetennis club of Shirakawa High School.

(t)

200

93.1

94.9

161.1

161.6

(%)

100

80.2
100

148.9

50

0
MIC-D Digital Microscope Donated to
Nishigo-mura, the Source of the
Abukuma River

0

36.6

11.9

8.7

'03

'04

100
Nishigo-mura along Abukuma River
Cleanup and Walking Campaign

 Data on Records of Energy, Waste and PRTR Amount Handled (FY2004)

Waste

PRTR Amount HandledElectricity(10,000kWh)

Crude oil
(kl )

LPG
(1,000m )Gasoline(kl)

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

Lead
compound(t)

Ethylene
oxide
(t)

324

41

4

5

1

1,308

6.2

2.5

0.04

161.6

94.9

0.89

0.34

3

Mr.Shoichi Sano, General Affairs Group Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate

Energy

36

(%)

100

(FY)

'02

Transition in Recycling Waste and Recycling
Rates

Location: 1-3 Tanabe-shinden, Kawasaki-ku, Kawasaki-shi, Kanagawa 210-0856
Phone: +81-44-344-5111 (direct)

Olympus Logitex Co., Ltd.
Business area: Product warehousing and distribution

Land area: 19,058m2 Gross floor area: 30,297m2

cling by separating and collecting OA paper from thecompany for reprocessing by a local paper manufacturer. We then use this reprocessed paper as cushioning material for shipping products.
Site Report

Olympus Logitex celebrated its 30th anniversary 3
years ago by moving to Kawasaki Ward in Kawasaki,
between Tokyo and Yokohama. Social issues such aspollution caused by the city's dense industrialization
have been replaced by redevelopment of coastal areas
and upgrading bases for international research and development and disaster prevention. Since we are located along an industrial artery, we regularly clean up
areas around the company to help change the city's
reputation as one of Japan's most polluted population
centers. During lunch each week, a dozen or so employees take turns picking up empty cans and cigarette butts from along the road. To obtain ISO 14001
certification, we pursue employee awareness of environmental policy at morning assemblies and classify
garbage in detail. We also promote "closed" recy-

Mr.Shoichi Sato, Operation Group Amount of Recycling Waste
 Amount of Commissioned Treatment of Waste
 Recycling Rate
(t)

(%)

600

91.0

450

98.1

100

464.7

75
50

300

281.0
Cleanup

25

150

0

0
Environmental Policy Read at
Morning Assemblies

150

'02

(FY)

27.8

8.8

'03

'04

Data on Records of Energy, Waste and PRTR Amount Handled (FY2004) * Substances applicable to PRTR not treated.

Energy

Waste

Electricity(10,000kWh)

Gasoline(kl )CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

122

2

440

8.8

0.0

0.0

464.7

98.1

Location: Nantou, 5th Industrial District, Nanshan, Shinzhen, Guang Dong, P.R.C
Phone: +86-755-6980118

Olympus (Shenzhen) Industrial Ltd.
Business area: Assembly of cameras and processing of lens and mold components

Land area: 104,446m2 Gross floor area: 33,334m2"Clean Production Firm" Certification

Personnel Affairs Control
Department, Environmental
Promotion Department
Ms.Luo Ying (L) and Mr.Di Bao Feng(R)
( t CO2 )25,00020,42420,00016,042

15,00012,603
10,0005,000
0Tree Planting

(FY)

'02

'03

'04

Transition in CO2 Emissions*The coefficient of CO2 emission is calculatedusing a coefficient for 2000 cited in the
Enforcement Order for Promoting Global
Warming Countermeasures in the same way as
is done in Japan.

Data on Records of Energy and Waste (FY2004)

Energy

Waste

Electricity(10,000kWh)

LPG(1,000m )Gasoline( kl )

Others(kl)

CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

2,309

67

2

4,453

20,424

7.5

94.0

8.9

711.3

86.6

3

Olympus Environmental Report 2004

Shenzhen Plant is implementing and strengthening its
ISO 14000 Environmental Management System. In
September 2003, we were recognized as a "Clean Production Firm" due to extensive improvements in environment and work efficiency. This is awarded only tofirms satisfying extremely strict standards - only 22
firms in all of Guangdon, including 2 from Shenzhen,
and the first Japanese affiliate to do so. In November,
we received an "honorable title" from Shenzhen City
as a leading firm, fully meeting Shenzhen-City Industrial Pollution Standards.
In social activities, some 200 employees took part in
the 5th China International Plant and Flower Exhibition, planting trees and enhancing employees' environmental awareness and position as part of the local
community.

Approaches at Home and Abroad

Transition in Recycling Waste and Recycling
Rates

37

Site Report

Approaches at Home and Abroad

Location: Kuehnstraße 61, D-22045 Hamburg, Germany
Phone: +49-40-669 66-0

Olympus Winter & Ibe GmbH (OWI)
Business area: Development, production, sales, and service of rigid and flexible endoscopes

Site ReportOWI obtained ISO14001 in 2001 and has been enhancing its environmental activities.
OWI is planning to change the packaging system formechanical instruments (not for telescopes).
From the data "Dimensions and Weight" you can notethat new packaging is considerably lighter and smaller. The downside is that the number of PE-pouches
has increased. PE is known as recyclable plastics.

Land area: 13,300m2 Gross floor area: 11,980m2

All Products (kg)Old System

New System

Packaging (Cardboard)

22,12018,690

Packaging (Plastic bag)

5,215

5,690

-16%
{9%

Packaging (Volume)-16%

Capacity of Storage / Transportation-16%

Expected Results Based upon Sales Figures of OWI Products*The table "Statistical Data" shows estimated values basing upon the basis of2002. The percentage-values (%-figures) mentioned in the table, are based partially, upon estimation.

 Targets of New Packaging Systems:
1. Protection of the product during transportation and storage
2. Protection of the product against pollution
3. Packaging smaller and lighter, improve Environmentfriendliness
4. Reduce storage and transportation capacity, improve
Environmental consciousness
5. Accepting of the new packaging-system by the customer
6. Introduction of the new packaging-system Dec. 2003

New System of Trocar
Cardboard dimension: 210 ~90 ~43 mm,
Weight: 53g
Weight of plastic bag: 15g

Old System of Trocar
Cardboard dimension: 288 ~90 ~90mm,
Weight: 226g

Approaches at Home and Abroad Data on Records of Energy and Waste (FY2004)

EnergyWaste

CO2Electricity
City gas
conversion
basis(10,000kWh) (10,000kWh)( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

1,667

645.0

0.0

65.4

605.8

46.0

233

166

Olympus Diagnostica GmbH [Irish Branch] (ODI)
Business area: Development and manufacturing of reagents for clinical blood analyzers

Olympus Environmental Report 2004

ODI's main environmental objective was to obtain certification to International Environmental Standard ISO
14001, and this objective was successfully completed in
January 2004. Firstly, a number of Environmental Improvement Programs were put in place. Some of these issues are as follows: the Upgrade of ODI's Effluent Treatment Plant, Fire-Water Retention Study, Hazardous &Non-Hazardous Waste Management, Chemical Risk Assessment and Control, and Contractor Control.
Further segregation of waste streams at ODI and increased recycling levels during the last year have resulted
in a 45% reduction of waste going for disposal to landfill.
The company has invested in bunding and separate storage units for chemicals, thus ensuring, environmentallyconscious chemical use and storage.
Education of and communication with employees in en-

EnergyLocation: O' Callaghan's Mills, Lismeehan, Co. Clare, Republic of Ireland
Phone: +353-656-83-11-00
Land area: 1,300,000m2 Gross floor area: 5,700m2

vironmental issues is of paramount importance at ODI.
For example, an Environmental Notice Board which was
put in place, is used as a very visible means of communicating environmental performance and initiatives. Numerous training modules took place - the first one being
an Environmental Awareness Induction Module which
each individual received on commencement of employment. Pocket sized Environmental Policy Cards indicating the main points of ODI's Environmental Policy are issued to all personnel. Other education initiatives are environmental procedures training, waste segregation training, spillage response training, hazardous substances
training and emergency response team training.
ODI strives to continuously improve its environmental
standards and to manufacture in unison with our environment.

 Data on Records of Energy and Waste (FY2004)

38

Head of Regulatory Affairs,
Mr. Bruno Soltau

Waste

Electricity(10,000kWh)

Crude oil
(kl )

CO2
conversion
basis( t• CO2 )Generalwaste(t)Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

205

59

1,754

54.3

296.9

58.8

14.3

Human Resource Manager,
Mr. Liam McGregor

Burial Site Adjacent to Building Works
A meeting was held prior to thecommencement of the building
extension with all local house owners
and land owners so that they could
voice any concerns. ODI ensured that
all the existing trees around thebuilding area were protected and arestill being protected as was the historic
Stone Age burial site adjacent to thebuilding, without negatively affecting
the surrounding environment.

KeyMed (Medical & Industrial Equipment) Limited
Business area: Sales, repair, development and production of endscopes and accessories

Land area: 30,000m2 Gross floor area: 15,000m2

find a contractor who was prepared to receive andprocess these waste streams. Nevertheless persistentsearching meant that contractors were eventuallyfound and all electronic waste, cathode ray tubes andwood are now recovered. Electronic waste is sent for
the recovery of precious metals and other materials.
Cathode ray tubes are sent to Belgium where a stateof the art plant is used to disassemble the tubes andrecover the various components, and wood is sent tobe chipped and made into kitchen furniture. As wellas initiating these new recovery streams there have also been improvements in the quality of separation ofother waste streams such as cardboard.

Regulatory & Environmental Affairs
Manager, Mr. Andrew J. Vaughan

Harry's Garden

Waste

CO2
Electricity
City gas
conversion
basis(10,000kWh) (10,000kWh)( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

3,118

429.4

7.8

0.0

659.6

60.1

478

559

Electronic Waste

Location: [ Corporate Headquarters ] 2 Corporate Center Drive, Melville, NY 11747-3157, U.S.A. Phone: +1-631-844-5925[ San Jose National Service Center ] 2400 Ringwood Ave. San Jose, CA 95131-1700, U.S.A. Phone: +1-408-935-5018

Olympus America Inc. (OAI)Business area: [Corporate Headquarters] Sales and marketing of all products except industrial microscopes[San Jose National Service Center] Repair of medical products, administrative service, and distribution[ Corporate Headquarters ] Land area: 1,700m2 Gross floor area: 24,247m2[ San Jose National Service Center ] Land area: 24,690m2 Gross floor area: 7,500m2

In San Jose National Service Center, OAI continued
its established recycling activities, including recyclingof polythene foam shipping materials, discarded electronic components, Cathode Ray Tubes (CRT's) andcardboard packaging materials. Energy saving activities included, at selected locations, the use of long-life
fluorescent lamps as replacements for burnt out older
lamps, and the select use of motion sensors to turn off
lights when not needed. Hazardous wastes were collected at specific locations throughout the facility forproper disposal in accordance with applicable laws.

Chief Compliance
Officer,
Mr.Timothy D.Sullivan

Environmental Health,
Safety & Facility
Senior Manager,
Mr.Pad Kemmanahalli

Recycling of Electronic Parts Waste

Olympus Environmental Report 2004

During 2003, in Melville HQs, OAI enhanced its environmental activities. OAI presented its environmental activities for the first time at this year's global
Olympus Eco-Forum. OAI strengthened communication with Olympus Tokyo and other global Olympus
Business Centers by sharing information identified
through its study of various U.S. federal, state, and local environmental laws. Use of Styrofoam packing
material for product shipment was reduced by 45% in
the Hauppauge Distribution Center. OAI reduced paper use by expanding its program to process Consumer Product orders electronically through OAI's Internet web site. During the program's first full year in
136P, over 66,000 orders were processed electronically from more than 900 CPG dealers and thousands of
direct consumers.

Approaches at Home and Abroad

Data on Records of Energy and Waste (FY2004)

EnergySite Report

KeyMed's social contribution increased last year. For
example, the Sacred Heart Catholic Primary School
approached KeyMed for assistance in creating awildlife garden in the corner of the playing field.
KeyMed agreed to fund the garden and planting wascompleted in March 2003. During the summer of2003 a child of the school tragically died of cancer,
and the school dedicated the new garden to him, calling it "Harry's garden."
KeyMed has also continued to reduce its environmental impact and has made significant improvementswith waste separation. Advances have been made in
the separation and recovery of electronic waste, cathode ray tubes and wood. Until recently all these categories were sent to landfill because the very small
quantities generated by KeyMed made it difficult toLocation: KeyMed House, Stock Road, Southend-on-Sea, Essex SS2 5QH, United Kingdom
Phone: +44-01702-616333

Data on Records of Energy and Waste (FY2004) * San Jose National Service Center only.

Energy

Waste

Electricity(10,000kWh)

City gas(Therm)CO2
conversion
basis( t• CO2 )Generalwaste(t)Industrial
waste
(t)

Specialwaste(t)Recycled
amount(t)

Recycling
rate
( %)

169

20,482

505

424.4

4.9

0.1

470.8

52.3

Recycling of Polyethylene Foam
Shipping Materials

39

Recognition from Outside

Queen's Award for Enterprise in Sustainable Development Conferred on
KeyMed (Medical & Industrial Equipment) Limited
On 21 April 2004, Her Majesty The Queen approved the Prime Minister's recommendation that a Queen's Award
for Enterprise be conferred on KeyMed in the category of Sustainable Development. The Award was given inrecognition of the business efficiency gains arising from the company's success in combining commercial excellence with progressive social and employment policies. The Queen's Award is widely recognized as the mostprestigious business award in the United Kingdom.
In a statement released to the press, the Queen's Award Office stated:"KeyMed clearly demonstrates that integrating sustainable development into business activities can pay dividends through staff development and motivation, engagement with local communities, and mitigation of the impacts of its activities on the environment It has invested considerable effort in staff health and safety, promoting
access to work for people with disabilities, and offering staff the opportunity to develop within the organization".
The company was also praised for offering local schools access to its facilities, contributing significantly to anumber of charities, actively taking part in local community development projects and its Board-level commitment to reduce CO2 emissions and adopt a wider range of environmentally-responsible approaches to its operations.
Michael Woodford (MBE 1)) , Group Managing Director, commented: "We are extremely proud of this honor
as it is the highest accolade Her Majesty can bestow on industry and places KeyMed amongst the most successful of UK businesses. Quite apart from the publicity that this Award has generated, it is rewarding that the culture and ethos of the organization, which is at the heart of our success, has been recognized in this way."

The Queen's Awards Logo 1) MBE: Members of the Order of British Empire

Olympus (Shenzhen) Industrial Ltd. Receiving Clean Production Firm Award
In September 2003, Olympus Shenzhen was the first Japanese affiliate to receive a Clean Production Firm Award
from the Guangdong government. The award goes only to firms that meet very strict standards, including reports
on contents of clean production, organization, and education, the status of activities set forth by regulations, company-wide clean production, and whether indicators for emissions, drainage, and waste satisfy standards set forth
by laws and regulations. Olympus Shenzhen has focused on energy saving, recycling of household wastewaterand resin material, and reducing waste. Among our efforts, waste recycling introducing leading-edge technology
was especially highly evaluated, leading to this award.

"Clean Production Firm Award" Presentation
Ceremony

Olympus Logitex Co., Ltd. Receiving 20th Logistics Grand Prize Recognition
Olympus Logitex received recognition at the 2003 (20th) Logistics Grand Prize, the most authoritative award in
the distribution industry. Efforts that were highly evaluated included elimination of warehouse-to-warehousetransport, reduction of CO2 emissions by modal-shift introduction, and innovative efforts in optimizing distribution bases through integration and thereby shortening delivery lead time for customers. We also reduced inventory and distribution costs. In the words of Olympus Logitex President Masatoshi Tabata, "When viewing Olympus as a whole, there is still room for improvement. In the future, we intend to undertake procurement in physicaldistribution to further contribute to the business of the Group as a whole."

Editor's Note

This environmental report reviews the company's environmental activities over the last year, and includes site
reports on "Approaches at Home and Abroad." Site reports should prove of special interest to residents in thelocal community. This report also contains a new section
on the "Personnel System and Human Resource Development," and devotes considerable space to environmentallyconscious products. It presents a new challenge for us asa manufacturer to create new value. By obtaining ISO

Photograph on the Cover :Shot by Mr. Mitsuaki Iwago, Animal Photographer
Born in Tokyo in 1950. He has visited most of the globe alone
taking pictures of nature and animals and published a numberof true-to-life photographs. His works are highly regarded
internationally.

Mikio Takagi, a Board member (L) and President
Masatoshi Tabata, Olympus Logitex (R), holding
award plaques

14001 certification for the Olympus Corporation Environmental Management System, environmental promotion
by managers has become clear and easy to understand.
We hope you will find this report on realizing a sustainable society both entertaining and informative, and lookforward to hearing your candid comments, impressions,and advice.
Katsuhiko Tsunefuji
General Manager,
Environmental Development Department

Cover : King George Island, South Pole
Located 120 km off coast of Antarctica in the Southern Ocean, King George Island is the largestof the South Shetland Islands. It is home to research stations belonging to Argentina, Brazil,
Chile, China, South Korea, Poland, Russian and Uruguay. The South Pole region, one of themost sensitive on earth, reflects the influence of climatic change, including swiftly shrinking sea
and shelf ice, dwindling populations of native species such as penguins, and the emergence offlora never before seen there.

Olympus Environmental Activities and Awards

History
Year

Month

Major Activities

1975

March



Pollution Prevention Committee established

1976

June



Each facility celebrated Environment Week



Production of calendars, etc., in support of the WWF (current World Wild Life Fund) begun

1970 Latter halfCompany-wide regulations and standards related to pollution prevention, waste treatment, chemicals management, etc., arranged and upgraded

1984



April

1980 Latter half

1992



Pollution prevention diagnosis program began (continued through 1996)
Each office in the Olympus Group is to prepare an annual environmental white paper summarizing environmental conservation andpreservation efforts and to submit it to officials in charge of the environment.

JanuaryEnvironmental Affairs Office responsible for company-wide coordination of environmental activities established

August

Olympus Environmental Principles created

1993

July



Completed discontinuation of use of specified chlorofluorocarbons and 1,1,1-trichloroethane

1994

DecemberCompleted discontinuation of use of polystyrene foam for compact camera packaging

1995

July



Landscaping and preservation of the Tenryu River promoted (Chubu Regional Bureau Ministry of Construction).

1996

March



Company-wide Basic Environmental Plan 1996 instituted

June



Company-wide Environmental Management manual createdFebruary

Ina Plant became first Olympus facility to obtain ISO 14001 certification.

Application of environmental assessment to products started.

June



PRTR data for fiscal 1997 gathered and announced

October

The Tatsuno Plant received the Japan Greenery Research and Development Center award as a 1998 Good Greening Plant.

FebruaryTatsuno and Ina Plant received awards for achieving 1998 Energy Management (from Chubu Bureau of International Trade and Industry).

July



Company-wide Basic Environmental Plan 1999 instituted

September

Shenzhen Plant (Shenzhen, China) obtained ISO 14001 certification

February



1997

1998

1999

2000

March

October

2001

2002





Introduced Green Procurement Guidelines, finished audit of parts suppliers

Drafted guidelines for the purchase of products for commercial use

February

Hinode Plant again received award for superior rationalization of energy use from the Kanto Electric Association

March



Introduced technology to eliminate trichloroethylene in the washing processGarbage processing device introduced at Tatsuno Plant

May

Olympus Winter & Ibe GmbH obtained ISO 14001 certification

June



Garbage fermentation processing device introduced at Technology Research Institutes (Hachioji)

August

Olympus Logitex Co., Ltd., Tokyo Center started operation of distribution bases

March



Medical & Industrial Equipment (KeyMed) Limited obtained ISO 14001 certification



Recycling center of Technology Research Institutes (Hachioji) started

Company-wide Basic Environmental Plan 2002 designated Ecology Vision 21 establishedEnvironmental Development Department established

April



2003

Environment Committee organization arranged (Olympus Group Environmental Committee, Facility Environmental Affairs Administration
Meeting, etc.)Environment site assessment started around soil and ground water examination at domestic production sites

SeptemberInternal Eco-forum held

February

Ina Plant awarded Prize of Director-General for Agency of Natural Resources and Energy

SeptemberFive major development and production bases in Japan achieved Zero emissions.

Olympus Shenzhen received the Clean Production Firm Award.

OctoberOlympus Logitex received the 2003 (20th) Logistics Grand Prize from Japan Institute of Logistics Systems.

NovemberOlympus Logitex obtained ISO 14001 certification.

December





2004

Hinode Plant received award for superior rationalization of energy use from the Kanto Electric Association
Technology Research Institutes (Hachioji) obtained ISO 14001 certification, completing the certification of all 12 Olympus development andmanufacturing facilities in Japan

January

March

Products were shown at Ecoproducts 2003 Exhibition.
In-house qualification of environmentally conscious products was implemented, and the SZX7/SZ61, a stereo microscope and the E-1,
a digital SLR system were designated as Olympus Eco-products.



The E-1 received the first ECOLEAF environmental label for a digital single-lens reflex camera.

ISO 14001 certification was obtained for the Olympus Corporation Environmental Management System.

Olympus Diagnostica GmbH (Irish Branch) obtained ISO 14001 certification.

All major offices in Japan achieved Zero emissions.



KS Olympus, a sales affiliate, obtained ISO 14001 certification.

Olympus Corporation
For enquiries, please contact:
Environmental Development Department
2-3 Kuboyama-cho Hachioji-shi, Tokyo 192-8512 Japan
TEL: +81-426-91-7288
FAX: +81-426-91-7291
E-mail: environ@ot.olympus.co.jp

The Olympus Web Site
http://www.olympus.co.jp

Published in August 2004
Next issue: August 2005
This report is printed with soybean oil ink via waterless printing on
non-wood Take-pulp key G A paper made from 100% bamboo pulp.

X04KE-0804T햲 Printed in Japan