TaKaRa Green Accounting Report 2001

Message from the President
TaKaRa Corporate Outline & Environmental Action Goals
1. Takara Shuzo Corporate Philosophy
2. Basic Philosophy of Environmental Activities
3. Environmental Action Goals
4. Corporate Profile
TaKaRa Green Accounting Report 2001
1. Editorial Stance
2. Current Environmental Targets and Achievement
3. New Environmental Targets
4. Other Environmental Activity Goals
5. Fiscal 2000 Green Ink Accounting Report
6. Calculating "Green Ink"
How Takara Shuzo's "Green Accounting" Works
3-year Summary of Green Ink Accounting
Explanation of important individual subjects
1. Green Procurement and Purchasing Activities
2. Adoption of an Environmental Management System (Company-wide Activities)
3. Reduction and Recycling of Container and Packaging Waste
4. Environmental Accounting Activities (Analysis of Environmental Activities from an Economic Viewpoint)
5. Environmental Communication Activities
6. Takara Shuzo's Environmental Activity Structure

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Message from the President

Message from the President
With ever increasing certainty, the preservation of the global environment has become a driving
force behind all economic activities. The alcoholic beverage industry in particular sustains its
business activities through various benefits received from nature. These benefits should not bethought of as freely given by nature, but rather as an investment made by the Earth. If the benefits
from the Earth are thought of as investments, then a responsibility to effectively use theinvestment and to earn a profit is born.
Environmental activities such as energy and resource conservation can be called effective use ofthis investment from the earth. Furthermore, social contribution activities such as naturepreservation efforts can be viewed as a profitable return on the earth's investment. Based on thisphilosophy, we have pursued our "Green Ink" accounting activities since 1998.
All of our factories have obtained the ISO 14001 certification as of April 2001, and we haveestablished the goal of having all branch sales offices obtain certification during fiscal 2001.
Furthermore, our Zero Emissions activities, which target 100% recycling of factory wastes,
reached the 98% level during fiscal 2000, and we are aiming for over 99% during fiscal 2001. In
addition, we have acknowledged the container and packing recycling problem as an importantsocial responsibility of a manufacturer of alcoholic beverages. Thus, while enacting "upstream"
policies for product development, we have been actively seeking the involvement of theconsumer in the recycling problem by opening up communication with the public and thegovernment. We are also undertaking global warming prevention policies, setting long-term
environmental goals (p 2) and promoting coordinated activities. The results of these activities arereported to society in the easy-to-understand format of our Green Accounting Report, and the factthat our environmental activities are being monitored by you, the public, is a major source of ourefforts to promote environmental activities.
The Green Accounting Report was established with the idea that the calculation method and data
range would be revised as necessary after three years. This year's report will bring the first Green
Accounting term to a close. The suggestions received by you about the last three years of ourgreen accounting activities will be incorporated in the new term beginning next year. We hopethat you continue to grace us with your opinions and criticisms.

President, Takara Shuzo Co. Ltd.

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TaKaRa Corporate Outline & Environmental Action Goals

2

Takara Shuzo Corporate Philosophy (established September 1985, revised April
2001)

Through our fermentation technology and biotechnology, we will contribute to healthy lifestyles
and the creation of active society in harmony with nature.

Basic Philosophy of Environmental Activities (established September 1999)
Production activities essentially place a burden on the Earth. We take this reality seriously. We
make efforts to contribute to environmental protection by lowering the impacts from our
production activities, and make efforts to contribute to society by diverting business profits toconservation activities. We perceive these two efforts as obligations stemming from businessactivities, and promote environmental activities accordingly.

Environmental Action Goals (established September 1999)
Target the coexistence of the economic responsibility of corporate activities (responsibility
toward investments) and social responsibility (responsibility toward the environment).
● Offer a new value system in which customer satisfaction and social satisfaction coexist.
● Starting from the position that "the global environment is an asset of all of society," report
to society the impact of production activities on the global environment and open up
dialogue with society on environmental problems. (Disclosure of Environmental
Information)● To work toward development of new products and marketing methods that offer
consumers new values while suppressing environmental impact. (Development ofEnvironmental Marketing)● Design applications for resolving environmental problems with newly developed
technologies.
● Connect our future corporate competitiveness to prompt implementation of environmental
policies, anticipating future change and expansion of environmental problems.
●

Corporate Profile (as of March 31, 2001)
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TaKaRa Corporate Outline & Environmental Action Goals

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Corporate Profile (as of March 31, 2001)
Established 1925.
Capital: 13.2 billion yen.
Employees: 1,926.
Sales: 174.983 billion yen (non-consolidated), 184.886 billion (consolidated).
Operating profit: 9.921 billion yen (non-consolidated), 11.297 billion yen (consolidated).
Percentage of sales by business division: alcoholic beverages, 73.8%; foods, 18.5%; spirits, 1.4%;
bio, 6.1%; other, 0.2%.
Domestic operations: Headquarters; branches: 15; research centers: 3; factories: 8; storage,
distribution centers: 3.

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TaKaRa Green Accounting Report 2001

Editorial Stance of "Green Ink Accounting Report 2001"
This report introduces the environmental impacts that Takara Shuzo generates and the efforts it makes to lessen those impacts, and is aimed at all consumers
and citizens. Detailed information is available on our web site.

Corporate units surveyed :Takara Shuzo as a whole (domestic only)
Period surveyed :April 2000 to March 2001. Years are noted for information from other periods.
Scope of environmental impact and accounting data :Food and alcoholic beverage business divisions (bio business division data is not included).
For the products of consigned production (accounting for 12% of the total sales value of food and alcoholic beverages),
environmental impact data begins at the point Takara takes delivery of the products, covering containers and distribution.
This report is prepared in accordance with the Environment Ministry's Environmental Reporting Guidelines (FY 2000).
Publisher : Takara Shuzo Co., Ltd., September 2001
Opinions or questions regarding this report can be sent to :e-mail : eco@takara.co.jp
homepage : http://www.takara.co.jp

Comments on this report by the environmental non-profit organization Climate Network are posted on our web site.
Next printing: Abstract, June 2002; Report: September 2002.

Current Environmental Targets and Achievement
Category

Environmental Impact
Reduction Green Ink(ignoring changes in
production)

100% recycling of ISO 14001
factory waste
certification for all
workplaces

CO2 reduction in
the production
division

Promoting energy
conservation in theDistilling division

TargetIncrease of 5 ECO or
more per year

Attainment by
fiscal 2002

A 6% reduction
from 1990 levels
by fiscal 2001
(per 1 kl ofproduct)

A 33% reduction
from 1997 levels by
fiscal 2001 (per 1 klof alcohol product)

Fiscal 2000
Results

Increase of 10 ECO
over 1999

98.2% recycle rate Certification of sevenfactories, Tokyo Site,
Technology andSupply Division at
Headquarters

69.7kg-c/k
17% reduction
from 1990 levels(83.6 kg-c/k )208.8 /k -Alc
27% reduction from1997 levels (284.8
l/k -Alc)

Future Plans

Increase of 5 ECO or
more by fiscal 2001

Over 99% recycle
rate for fiscal
2001

Over 17%
reduction from1990 levels infiscal 2001

Over 33% reduction
from fiscal 1997
levels in fiscal 2001

All departments
certified by fiscal
2002

2001 : All branch
offices and one
factory.
2002 : Headquarters
Research Center* Note: CO2 statistics are for emissions from fuel, power, incineration, fermentation, malting, waste water, and production.

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TaKaRa Green Accounting Report 2001

New Environmental Targets (Fiscal 2001 - Fiscal 2004) Established September 2001

Category

Energy conservation
promotion in the
Production Department

Water use reductionin the Production
Department

Reduction ofgreenhouse gases(CO2) in the
Production
Department *2

Target8% reduction fromfiscal 2000 levels (106l-crude oil/kl) in fiscal
2004 *1

9% reduction fromfiscal 2000 levels(18.5m3/kl) in fiscal
2004 *1

13% reduction fromfiscal 2000 levels(64.3 kg-c/kl) in
fiscal 2004 *1 *3

100% recyclingof factory waste

Development of eco products

100% recycle
rate from fiscal
2002

Development of at least 1
new product each year that isenvironmentally considerate*1. Per k of production*2. CO2 statistics are for emissions from fuel, power, and incineration*3. 28% reduction from fiscal 1990 (78.2kg-c/k )Other Environmental Activity Goals
Promotion of the distribution efficiency, resource conservation, energy conservation, and prevention of global warming
Promotion of development of environmentally considerate products; container and packaging recycling● Promotion of green procurement, green purchasing● Promotion of environmental communication● Promotion of social contribution activities● Promotion of corporate-wide environmental education● Developing tools and social applications for environmental accounting●●

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TaKaRa Green Accounting Report 2001

Fiscal 2000 Green Ink Accounting Report (April 2000 - March 2001)〇627,226〇10,249〇1,091,953〇37,654http://www.takarashuzo.co.jp/english/green01_e/conts3/index.htm (3/4) [2002/04/26 10:49:33]

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TaKaRa Green Accounting Report 2001

Social Contribution Green Ink(unit: 1000 yen) Financial Contribution % of FY 1997 Social Contribution Green Ink
FY 1997

94,252-FY 1998

77,83183-17ECOFY 1999

75,27980-20ECOFY 2000

70,79575-25ECO

Analysis : Our Environmental Impact Reduction Green Ink for fiscal 2000 was +29 ECO. This is due to a large reduction in the total
volume of our environmental impacts, despite a 4% increase in production over the base year. Specifically, we achieved large
contributions through activities including: Energy conservation in our production division following the introduction of ISO 14001;
zero-emission promotion activities in factories (achieving a 99% resource recycling rate in fiscal 2000); more efficient distribution;
and an increase in our use of returnable bottles.
On the other hand, our Social Contribution Green Ink decreased again, to -25 ECO. This reflects a reduction in both the number ofcampaigns in which we participated, and in expenditures on individual campaigns.

Calculating "Green Ink"
<Environmental Impact Reduction Green Ink>
We divide the environmental impacts of our corporate activities into 11 categories in two groups: "Procured from the Earth"and "Released into the Earth".
● We look at the results of our conservation activities in reducing environmental impact in each of the 11 categories, andcompare these with our impacts in the base year of 1997 to measure a percentage improvement.
● We weight and average the percentage changes in the 11 categories, using weights assigned by internal and external
environmental specialists.
● Each percentage point of improvement in the average is 1 ECO.
●

<Social Contribution Green Ink>
We take expenditures on natural conservation activities (including environmental education activities), which we view as areturn of profits to society, and compare with expenditures in the base year of 1997 to measure a percentage improvement.
● Each percentage point of improvement is 1 ECO.
●

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TaKaRa Corporate Outline & Environmental Action Goals

How Takara Shuzo's "Green Accounting" Works"Lifestyle activities place a burden on the Earth." TaKaRa responds to this reality through its"green accounting" activities, seeing the reduction of the burdens caused by lifestyle activities,
and a return of profits to society through environmental preservation and other social
contributions, as corporate obligations accompanying business activities.

What's "Green Ink"?
"Black ink" and "red ink" are measures of economic results, indicating the degree of the
return made by a company upon the funds of its investors. But at the same time,businesses also receive "investments" from nature in the form of resources, energy,
waste disposal sites, and so on. We asked what we could use as a measure of the returnon this investment, and coined the term "green ink". "Green accounting" is a settlement of abusiness's contributions against the investment it receives from the Earth.
Why measure things in ECO units?
Under "green accounting" we evaluate the results of a wide range of environmental activities,
under the comprehensive index called "ECO". The environmental burdens generated bybusinesses take many forms, such as energy consumption and waste discharge. It's hard to see thebig picture looking at each of these data items one by one. But if a company expresses its
environmental performance in a single number, its employees can readily evaluate that
performance, feel closer to the issues, and take action. And releasing that number to the public
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TaKaRa Corporate Outline & Environmental Action Goals

makes it easier for society to observe our activities, which spurs us to more meaningfulconservation activities.
How are ECO calculated?
The key is in the weights assigned to each environmental issue. Global warming, the waste
problem, acid rain, and so on can not all be treated the same. Looking at environmental impacts,
we have CO2 measured as t-c, electrical power as kwh, and waste discharges as t -- units that
don't simply add up and offer an average!
To line up these units, we first established a base year (initially set to fiscal 1997), allowing
measurement of percentage improvements over that base. We then used methodology from LCA(life cyle assessment) impact evaluation, which assigns relative weights to individual
environmental issues. Five environmental managers from within Takara and three researchers
from outside the company weighed 11 environmental issues through discussions andquestionnaires, ranking each on a 5-level scale indicating the importance of that issue to Takara
Shuzo. The percentage changes in these 11 environmental measures are multiplied by theirrespective weights and averaged, with each percentage point of improvement in the average
representing 1 ECO.
Why are there two numbers?
A company's contributions to the environment includes its efforts to reduce the environmental
impacts resulting from corporate activities. This is activity to eliminate red ink (i.e., reduce aminus). This is our Environmental Impact Reduction Green Ink, and serves as a measure of ourefficiency in making use of investments from the Earth.
A company's contributions to the environment also include activities that make a positive
contribution. A good example is activities that return a portion of profits to environmental
conservation or other social contributions. A company makes profits on investments that include
those from the Earth, and thus must return a dividend to the Earth, as it does to any investor. We
call this Social Contribution Green Ink. The two numbers together point to different ways inwhich we should be contributing to the environment.

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93-year Summary of Green Ink Accounting〇1,091,963,000〇1,162,758,000

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3-year Summary of Green Ink Accounting

Controlling Environmental Impacts at the Source

Product Planning
By designing environmental consideration into a product during the planning stage, we areable to suppress the environmental burden of a product throughout other stages: resource
procurement, production, distribution, and marketing and consumption. At Takara Shuzo, we
have established "Guidelines for Development of Environmentally Considerate Products" andfollow these to design environmentally friendly products.
< Environmentally Friendly Product Planning >●●●Ecology Bottle (from FY 2000)
We use hard-to-recycle colored bottles tomake new glass bottles.

Returnable 720 ml Bottles (from FY 1994)
By washing and reusing bottles, we reduceresource usage and waste.

Bulk Sales of Shochu Spirits (from FY
1998)
Customers bring their own bottles to shops tofill with shochu spirits, reducing containers
and garbage produced.

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3-year Summary of Green Ink Accounting●●

EcoPETE (from FY 1998)
PETE bottles have been made more recyclefriendly, with recycled PETE material used inhandles, and easier-to-remove caps on
condiment bottles.

EcoFrost (from FY 2000)
The frosted glass bottle for Zipang Shochu
uses a special "Eco-frost" process that does
not use harmful chemicals.

< FY 2000 Environmental Costs >Costs accompanying improvements in containers are reflected in cost of containers.

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3-year Summary of Green Ink Accounting

Office Activities
Although the sales offices and main office have a lesser impact on the environment than do
the factories, it is important for administrative sections to participate in environmental
activities. Raising the environmental awareness of all our employees boosts the progress ofenvironmental management. As a step in the process, we are working toward obtaining ISO
14001 certification for the administrative sections.
< ISO Certification of Administrative Sections >Certified in FY 2000

Headquarters : Technology/Supply DivisionTokyo Site : Kanto Branch Office, Tokyo
Administrative Office, Alcohol Lifestyle Cultural
Research Center, Alcohol Third Marketing
Division, Tokyo Bio Marketing Section, Regional
Distribution Division

Planned for certification in FY 2001

9 Branch Offices (all branch offices except the
Kanto Branch)

Planned for certification in FY 2002

Main Office (except for the Technology/Supply
Division) and Research Centers< Reduction in Office Paper Usage, All Offices >1998 : 13,855,000 sheets
1999 : 13,746,000 sheets
2000 : 13,386,000 sheets

Environmental Costs for FY 2000: 72,717,000 yen

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3-year Summary of Green Ink Accounting

Procurement from the Earth

Resource Procurement (Input)
The amount of natural resources we used in conjunction with procuring raw materials
The ingredients of spirits are agricultural products, which are a reusable and renewable
resource. On the other hand, the containers and packaging used for spirits are made fromnatural resources, and once the contents are consumed, the containers and packaging are nolonger necessary and become waste. Consequently, when selecting a container, it is importantto select the container that has the highest recycled material content (lowest natural resource
content). For Green Ink accounting, the reduction of natural material use is an important ECO
indicator. Natural resources used in containers and packaging decreased to 56.8% of 1998
levels.
< Change in Raw Material Usage >FY 1997 <base year> 110,000 tons
FY 1998

106,000 tons

FY 1999

110,000 tons

FY 2000

109,000 tons Compared to FY 1997 : 99.1% +0.3ECO< Change in Volume of Natural Resources used in Containers and Packaging >FY 1997

35,600 tons

FY 1998

27,600 tons

FY 1999

23,700 tons

FY 2000

20,208 tons

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3-year Summary of Green Ink Accounting

15<Percentage of Recycled Content in Containers Used by Takara Shuzo>< Activities >Promoting recycling of glass bottle cullet through the Ecology Bottle (from FY 2000)● Reduction of new container use through returnable bottles and bulk sales (from FY
1998)● Using recycled PETE for PETE bottle handles (from FY 1998) and gift set boxes (from●http://www.takarashuzo.co.jp/english/green01_e/conts5/page_03.htm (2/3) [2002/04/26 10:50:21]

3-year Summary of Green Ink Accounting

FY 1995)● Increased recycled content in glass bottles, aluminum cans, and cardboard

Environmental Costs for FY 2000 : 33,992,000 yen

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3-year Summary of Green Ink Accounting

Procurement from the Earth

Input during Production
The amount of water and energy used for production
Manufacturing products uses large quantities of resources and energy from the earth. In Green
Ink accounting, the water used in spirits and for cleaning and cooling, as well as the electricity
and oil used as energy resources for distillation and the operation of the bottling line, aredesignated as green ink indicators. Water use decreased to 82% of FY 1997 levels. Electricity
use increased to 111.1% of FY 1997 levels due to multi-item, low volume production andstrengthening of quality management. Oil use decreased to 87.1% of FY 1997 levels due inpart to energy conservation measures implemented during the distillation process.
< Change in Water Use >FY 19977,251,000m3

FY 1998

6,818,000m3

FY 1999

6,168,000m3

FY 2000

5,946,000m3

Compared to FY 1997 : 82.0% +6.0ECO< Change in Electricity Use >FY 1997

33,238,000 kwh

FY 1998

34,581,000 kwh

FY 1999

37,262,000 kwh

FY 2000

36,917,000 kwh Compared to FY 1997 : 111.1% -11.1ECO< Change in Oil Use >FY 1997

27,800 k

FY 1998

25,400 k

FY 1999

25,000 k

FY 2000

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3-year Summary of Green Ink Accounting< Change in Factory Production Volume >FY 1997

307,423k

FY 1998

282,639k

FY 1999

302,047k

FY 2000

321,775k

Compared to FY 1997 : 104.0%< Specific activities >Reduction of water use through revisions in production procedures, and promotion ofwater recycling.
● Promotion of energy conservation during distillation through revisions in the alcohol
distillation process.
● Energy and resource conservation in the factory through ISO 14001 certification●

Factory ISO 14001 Certification Record
Sapporo Factory ,Shirakawa Factory, Nada Factory, Takanabe Factory,
Shimabara Factory

March 1999

Kusunoki Factory

October 1999

Matsudo Factory

March 2000

Fushimi Factory

April 2001

Environmental Costs for FY 2000 : 67,381,000 yen

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3-year Summary of Green Ink Accounting

Discharged to the Earth

Output during Production
The amount of air emissions, wastewater and solid wastes derived during production
For the Green Ink accounting indicators, we use CO2, NOx, and SOx emissions for air
emissions, in addition to overall totals for wastewater and factory wastes. In the production
arena, our air emissions were 91.3% for CO2, 85.2% for NOx, and 95.8% for SOx, comparedto the base year of 1997. Wastewater emission totals declined to 84.2% of base year levels.
Finally, due to our zero emissions activities, factory wastes were down to 1% of base year
levels.
< Change in CO2 emissions >FY 1997

24,583 t-c

FY 1998

23,002 t-c

FY 1999

23,140 t-c

FY 2000

22,436 t-cCompared to FY 1997 : 91.3% +8.7ECO< Change in NOx emissions >FY 1997131 t

FY 1998

118 t

FY 1999

116 t

FY 2000

111 t

Compared to FY 1997 : 85.2% +9.9ECO< Change in SOx emissions >FY 1997

133 t

FY 1998

114 t

FY 1999

118 t

FY 2000

128 t

Compared to FY 1997 : 95.8% +2.8ECO

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3-year Summary of Green Ink Accounting< Change in wastewater emissions >FY 1999

5,833,000 m3

FY 1998

5,788,000 m3

FY 1999

5,121,000 m3

FY 2000

4,913,000 m3

Compared to FY 1997 : 84.2% +5.3ECO< Change in factory waste emissions > *Amount not recycled/reused
FY 1997

16,462 t

FY 1998

1,950 tFY 1999315 t

FY 2000

170 t

Compared to FY 1997 : 1% +165ECO

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3-year Summary of Green Ink Accounting<Recycling Rate>< Activities >Energy and resource conservation in the factory based on ISO 14001● Zero Emissions activities● Promoting water reuse● Introduction of natural gas-powered vehicles and forklifts●

Environmental Costs for FY 2000 : 226,348,000 yen

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3-year Summary of Green Ink Accounting

Discharged to the Earth

Output during Distribution
Air emissions produced by product transport
The products manufactured at our factories are delivered to the customer through a variety ofmeans, including trucks, trains and ships. The Green Ink accounting indicators we use to track
the impact of transporting our product are CO2, NOx, and SOx emissions. These are theemissions that occur during the transport (whether in-house or consigned) of our product toretail stores, combined with emissions that occur during in-house transfers. Due to more fuelefficient delivery trucks and joint deliveries with other companies, our emissions were 83.0%
for CO2, 78.4% for NOx, and 78.5% for SOx compared to levels in FY 1997.
< Change in CO2emissions >FY 1997

6,639 t-c

FY 1998

5,362 t-c

FY 1999

5,897 t-c

FY 2000

5,512 t-cCompared to FY 1997 : 83.0% +17.0ECO< Change in NOx emissions >FY 1997

159 t

FY 1998

127 t

FY 1999138 t

FY 2000

125 t

Compared to FY 1997 : 78.4% -14.4ECO< Change in SOx emissions >FY 1997

35 t

FY 1998

28 t

FY 1999

31 t

FY 2000

28 t

Compared to FY 1997 : 78.5% +14.3ECO

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3-year Summary of Green Ink Accounting< Activities >● Improved self-sufficiency in in-block truck deliveries.
● Joint deliveries with other companies in the industry● A 15% increase in fuel efficiency by having trucks run at constant speed and turn offengines when stopped● Adoption of industry standard pallets< Environmental Activity Goals for the Distribution Division >EcoDrive Promotion

1. Prohibit idling of engines
2. Prohibit sudden starts and stops
3. Promote economical driving

Promoting Efficient Distribution

1. Reorganize delivery points
2. Promote joint delivery
3. Introduce the xxx system

Environmental Costs for FY 2000: 32,150,000 yen

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3-year Summary of Green Ink Accounting

Discharged to the Earth

Output during Retail and Consumption
The amount of containers discarded during retail and consumption
It is said that the environmental problems caused by alcohol and other beverages are more
prominent during consumption than during production. A representative problem is that ofcontainer and packaging recycling. For Green Ink accounting, the indicator of impact
reduction is determined by the measured volume of containers and packaging that areincinerated or land filled instead of being recycled. During FY 2000, the volume of
unrecycled packaging and containers was reduced to 54.1% of FY 1997 levels.
Furthermore, after alcohol is consumed, it is converted into CO2 and water in the body. This
volume of CO2 and the CO2 used in Chuhai drinks are included in the Green Ink indicators.
These have increased to 102.2% of FY 1997 levels.
< Change in weight of containers and packaging not recycled after consumption >FY 1997

36,600 t

FY 1998

28,600 t

FY 1999

26,800 t

FY 2000

19,791 t

Compared to FY 1997 : 54.1% +61.2ECO

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3-year Summary of Green Ink Accounting< Takara Shuzo Recycling Rates by Container Type >< Takara Shuzo Container & Packaging Recycling Rates >http://www.takarashuzo.co.jp/english/green01_e/conts5/page_07.htm (2/3) [2002/04/26 10:50:48]

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3-year Summary of Green Ink Accounting< CO2 emissions during consumption >FY 1997

19,400 t-c

FY 1998

18,694 t-c

FY 1999

19,311 t-c

FY 2000

19,823 t-cCompared to FY 1997 : 102.2% -2.2ECO< Activities >Limiting container waste through bulk sales of shochu and promoting returnablebottles (since FY 1998)● Improving PETE bottle recycling through the use of EcoPETE returnable bottles (since
FY 1998)● Manufacturing Eco Tiles (Crystal Clay) from used glass bottles (since FY 1993)● Improving reuse/recycling of containers and packaging (result of industry-wide
promotion)● In-house collection of office-use containers●

Environmental Costs for FY 2000: 658,829,000 yen〇659,375,000

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3-year Summary of Green Ink Accounting

Returned to the Earth

Social Contribution Activities (in theEnvironmental Field)
In addition to corporate activities to reduce environmental burden, social contribution
activities such as nature conservation and environmental education are Green Ink activities
through which corporations can help the Earth. For Green Ink accounting, the amount donatedto these activities is the indicator. In FY 2000, we contributed a total of 70,795,000 yen,amounting to 75% of FY 1997 levels.
< Change in Social Contributions >FY 1997

94,252,000 yen

FY 1998

77,831,000 yen

FY 1999

75,279,000 yen

FY 2000

70,795,000 yen

75% of 1997 levels, or -25ECO< FY2000 Supported Activities >Green CAN Walking (since FY 1991)
The tenth annual event was held on August
26, 2000 at Shonan Beach in Kanagawa
Prefecture.
●

Campaign to Protect Shimanto River(since FY 1994)● Campaign to Protect Japanese Pines (since
FY 1982)● Campaign to Protect Japanese Bamboo(since FY 1983)●●

Environmental Education Corner at the

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3-year Summary of Green Ink Accounting

Factory Open Event● Recycling Display at Earth Day● Providing recycling and environmental
education information over the Internet

Environmental Costs for FY 2000: 70,795,000 yen

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28

Explanation of important individual subjects

29

Green Procurement and Purchasing Activities ("Upstream" Activities)
A corporation purchases many different things to procure raw materials for
products or to undertake sales and administrative activities. By giving priority toenvironmentally considerate materials products when purchasing, environmental
impact is reduced and support of organizations promoting environmentallyfriendly activities is achieved.
Takara Shuzo's Activities●●●

Establishment of "Guidelines for Promoting the 3 R's" for containers and packaging, andefforts to reduce environmental impact of containers and packaging based on "Rules for
Banned Materials", "Environmental Consideration during the Planning Stages", and"Gaining Understanding from Vendors". We also promote purchasing activities for thepromotion of the 3 R's and request that our vendors used environmentally consideration as
put forth by our guidelines. (3R's: Reduce, Reuse, Recycle)
We sell some non-alcoholic drinks that are manufactured under consignment by othercompanies, under the product planning regulations of Takara. We request that thesecompanies cooperate in our environmental policies to reduce impact on the environment.
(About 12% of drink and food products are produced under consignment.)
We are promoting green purchasing through the creation of a Green Purchasing Handbook
for the purchase of sales promotion items and office supplies, based on ISO 14001.

* The eight offices promoting Green Purchasing spent 8.696 million yen in FY2000 for officesupplies (about 45% of total office supply expenditure).

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Explanation of important individual subjects

Adoption of an Environmental Management System (Company-wide
Activities)
If environmental activities were simply based on establishing rules and giving
orders, these activities might stop altogether. In order to prevent the halt ofenvironmental activities in process, we promote certification under ISO 14001,
international environmental management regulations that require periodic thirdparty audits. We are aiming for certification of all our workplaces: factories,
branch and main offices, research centers, and group companies.
About ISO 14001 Certification●

Offices certified by April 2001
All Factories Certified (eight factories)
The factories established goals to prevent
pollution and control the environmental impact
of production and office activities at thefactory, and to promote energy and resource
conservation and prevention of environmental
pollution.

●

Tokyo Site (Business and Administrative
Sections) Main Office Technology and Supply
Division
The sales divisions promote energy conservation, trash
separation, and green purchasing for sales activities,
along with promotion of the EcoDrive program andsales of environmentally friendly products.

Future Plans: All workplaces certified by FY 2002
FY 2001 --> Nine branch offices

FY 2002 -->Headquarters, research
centers, major affiliatedcorporations

Regarding relevant environmental laws
(1)Compliance with Relevant Laws
We have received ISO 14001 (environmental management system) certification at all of ourfactories. Under our environmental policy, we are committed to legal compliance withenvironmental laws and appropriate up-to-date management methods.
Relevant environmental laws number over 30. We engage in strict information management for
all of these, and for the past five years have been involved in no violations or claims involving
these laws.

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Explanation of important individual subjects

311) PRTR Law (Law Concerning Improvement of Handling and Management of Emissions ofSpecified Chemical Substances)
Our company is among the businesses required to make notifications under this law. Major
chemical substances affected include acetonitrile (for research use) and acetaldehyde (abyproduct of brewing alcohol).
2) Law for Special Measures Concerning Dioxides
As a facility falling under this law, out Takanabe plant houses an incinerator for refuse fromshochu distilling. This refuse contains almost no organic chlorides, and the plant's incinerator
temperature, dust collection equipment, and measurement instruments are all designed fordioxin prevention; thus there is almost no danger of dioxin emission. The plant complies withall management standards under the law, and periodically tests gas emissions and soot to
confirm that these are under legal limits.
Dioxin concentration in gas emissions
Legal limit: 80ng - TEQ/Nm3
Measured amount: 0.064ng - TEQ/Nm3
3) Law for Special Measures Concerning the Promotion of Proper Treatment of PCB
WastesOur company has 26 electric machines using PCB (condensers, transformers, etc.), each ofwhich is stored at the owning factory under strict management. We will make plans for proper
disposal of these in accordance with the above law.
4) Foodstuffs Recycling Law
Our company is among the businesses affected by this law, which took effect this year. We
already engage in nearly complete recycling of the food wastes specified by the law, but will
make further efforts to reduce the amount of waste initially generated.
(2)Regarding soil contamination and regular testing
We regularly test groundwater for contamination, but do not regularly test soil. At the start of ouractivities for ISO 14001 certification, we conducted soil sampling and confirmed that there wasno contamination. As we do not handle any chemical substances that could be a cause ofcontamination, we have not undertaken regular testing since then.

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Explanation of important individual subjects

Reduction and Recycling of Container and Packaging Waste("Downstream" Activities)
Container and packaging waste is an environmental problem that a productcreates after entering society. Unlike environmental issues in the factory, thisproblem involves consumers and social systems, and calls for communication
between the manufacturer and society.

We have set guidelines for environmentally-considerate product development

We recognize returnable containers as having the lowest environmental impact and strive toincrease their use, but their percentage is gradually decreasing on a liquid volume base.
●

FY 1998 FY 1999 FY 2000
Change in percentage ofreturnable containers●

Liquid volume base

15%

14%

13%

Empty container weight
base

37%

36%

39%

We are working to improve one-way containers for promotion of recycling.
Conversion of PETE bottles to EcoPETE

Use of glass "Ecology Bottles" : 480 tons in FY
2000 (2.6% of one-way glass bottles by weight)

We are working to develop new sales methods, including bulk sales, which reduce
environmental impacts.
●

Amount of bulk sales

FY 1998 : 504k FY 1999 : 898k
FY 2000 : 867k (equivalent of 320,000 2.7l PETE bottles of shochu,
or 1.1%)

We apply LCA to evaluation of containers and packaging
We participate in the "Research Group for Comparing Containers by LCA Methods" and apply its
findings,in order to objectively evaluate the environmental impacts of containers and packaging.
One such finding is that returnable bottles are the form of container with the lowest impact whenused 20 times or more. Even when used only 2.5 times, returnable bottles offer the second-lowest
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Explanation of important individual subjects

energy consumption, beaten only by paper cartons.

We have introduced environmental accounting in our container recycling activities.
Through environmental accounting, we apply analysis of total costs, including recycling costs not
specified under the Container and Packaging Recycling Law, and develop strategies to reduce thesocial costs of container and packaging waste.
Paid under theContainer andPackaging
Recycling Law
FY 2000
environmental costs bycontainer type
(unit: 1000 yen)

Returnable bottles

Estimated cost to
Takara forrecycling

Total

0

230,245 230,245

One-way bottles

22,142

166,361 188,503

Aluminum cans

019,467

19,467

Steel cans

018,02718,027

PETE bottles

106,052

Paper cartons

2,152

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81,158 187,210
1,392

3,544

Explanation of important individual subjects

34

Environmental Accounting Activities (Analysis of Environmental
Activities from an Economic Viewpoint)
In addition to corporate environmental accounting, which reveals theenvironmental costs of the company as a whole, we also undertake "Conservation
Effect Comparative Environmental Accounting". Together with green accounting,this allows us to review the cost-effectiveness of individual environmental policies.
We further undertake "Segment Environmental Accounting" to analyze the environmental
cost-effectiveness of individual environmental activities, such as our package recycling
activities or Zero Emission activities.

<FY 2000 Corporate Environmental Accounting>
See web site for cost breakdown
Calculation method: Environmental costs for FY 2000 were calculated as follows:
Statistics are for Takara Shuzo as a whole, excepting the Bio Division.
● Statistics are totals of costs generated for the purpose of environmental conservation byenvironmental activity staff at each workplace and environment-related division staff at
corporate headquarters.
● Items calculated are based on guidelines from the Environment Ministry.
● Investments and expenses not entirely for environmental purposes are reduced to 25%,
50%, or 75%.
● Investments from 1996 are amortized over 10 years and entered as expenses.
● Labor costs are derived from the percentage of time dedicated to environmental activities,
times the average cost of labor.
● Environmental effects are derived only from those items whose monetary value is clearlymeasurable.
●

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Explanation of important individual subjects〇614,714〇629,068

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Explanation of important individual subjects〇1,162,758* Total investments for equipment in FY 2000 : 10,660,427 million yen<Environmental Effect Accompanying Environmental Conservation> (thousands of yen)

Income from Recycling
40,904

Effects from All Energy Conservation
Activities
101,360

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Industrial Waste Treatment Cost
Savings
11,140Explanation of important individual subjects

37

Environmental Communication Activities (Dialogue with Society on
Environmental Issues)
As a business undertakes environmental activities, communication with
consumers, shareholders, authorities, and a variety of other external parties isvital. We feel that resolving the container and packaging recycling issue inparticular requires close communication with citizens and consumers, and thus
work to join with citizens' movements and exchange information.

Examples of Tie-ups with Citizens' Movements:
Member of the Osaka Zero-Garbage Network
Returnable Container Study Group● Member of the Kyoto Municipal Waste Reduction
Conference's Returnable Plastic Container Study Group● Participated as panelist in the "Tokyo Tokoton Panel
Discussion" (FY 2001) and the "National Tokoton Panel
Discussion"● Held recycling activity display for Earth Day● Participated as panelist in the "Osaka Group to Consider
Waste" symposium● Presented environmental accounting for container
recycling in the Consumer/Citizens' Section of the
Waste Symposium●

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Earth Day 2001

Explanation of important individual subjects

38

Takara Shuzo's Environmental Activity Structure (as of September 2001)
Takara's environmental activity is centered about the "Eco Challenge 21" movement, acompany-wide conservation project inspired by the COP3 global warming conference heldin Kyoto in 1997.

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