Sumitomo Heavy Industries Group

Environmental
Sustainability Report 201236%

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

Printed on paper made with wood fromforest thinning. “Morino Chonai-kai” (Forest
Neighborhood Association)—Supporting
sound forest management.

Message from the President
Editorial Policy
The Sumitomo Heavy Industries Group issued its first
Environmental Report in 2001. In 2005, we expanded thescope of the report to include social aspects and changed
its name to Environmental Sustainability Report. Every year,
we widen the scope of social contribution activities andenvironmental activities, which form the social responsibilitiesof the Group. In addition to promoting environmental
management including activities to prevent global warming,the 2012 Report also introduces our engagement withbiodiversity as a form of social contribution. We have also
expanded the scope of data on the environmental burden
overseas. To convey to a wide audience our engagement withenvironmental and social activities, we have sought to makethe report accessible by using plain and concise language
and by making frequent use of graphs, illustrations andphotographs.
Further, when issuing this Report, we consulted
the Environmental Reporting Guidelines (2007) and theEnvironmental Accounting Guidelines (2005) from the Ministryof the Environment.

Engaging in global corporate
activity on the basis of the“Sumitomo Business Spirit,” wepursue innovation to contribute torealization of a sustainable society.

The Sumitomo Heavy Industries Group has incorporated
the conceptual approach of the “Innovation 21”
medium-term management plan in formulating theSumitomo Heavy Industries Group Third Medium-Term
Environmental Plan, which we launched in FY2011.
We will expand our business globally while providing“first-class products” and “first-class services” that areenvironmentally friendly and pursuing “first-class production
processes” that reduce environmental impact in the courseof producing those products and services. Our aim is tobecome a corporate group capable of contributing to theachievement of a sustainable society.
To that end, we must declare high goals and overcome
a large number of issues. Changes are also taking placein the social responsibility demanded of corporations. As I
see it, our pursuit of innovation that continues to take on thechallenges of reform is going to contribute to achievementof a sustainable society.
As the globalization of SHI Group businesses
advances, the values to be shared by all employees takeon greater importance. The context of our emphasis onprotection of the environment and our engagement inenvironmental activities includes the “Sumitomo BusinessSpirit.”To state this differently, having all the members of the
SHI Group share the “Sumitomo Business Spirit” adds
further impetus to our promotion of environmental activities.

Scope of the report
Sumitomo Heavy Industries, Ltd. and its group companies
Period covered by this report
April 1, 2011 – March 31, 2012
Previous issue: August 2011
Current issue: August 2012
Next issue:
August 2013

companies and held on-site discussions. It is crucial
that we make the change from formalist environmental
activities to efficient environmental management systems.
The point is not just to achieve numerical targets, but
to confirm on-site whether everyone recognizes theimportance of environmental activities and understands
what should be done to achieve those targets. Verifying
the processes of our activities and evaluating themenables us to understand SHI Group capabilities andcontributes to improvement. The target values set in the
Third Medium-Term Environmental Plan are minimum
values. The SHI Group is taking on the challenge of still
higher target values.

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

CONTENTS
Message from the President

1

Outline of Sumitomo Heavy Industries Group3

Relationship between Sumitomo
Heavy Industries Group and Society

5Special feature Manufacturing Excellence at Sumitomo
Heavy Industries

Globalization and innovation:
our core strategies to enhancemarket competitiveness

7

Environmental Initiatives
Environmental Management System

11

Environmental Objectives(Medium-Term Plan) and Results

13

Global Warming Prevention Activities

15

Activities Directed Toward Creatinga Society Based on Recycling

17

Activities for Managing Chemical Substances

19

Stronger Environmental Management
at Our Overseas Factories

21

Environmental Impact Data

25

Relations with Society
Social Contribution Activities

27

When people with a variety of different values andcultures take steps to engage in communication andaccelerate the measures we take to realize yet higher
objectives, this gives rise to new value. As I see it, thisenables us to achieve further growth as a global company.
Going forward, the SHI Group will continue to pay
serious attention to what our stakeholders tell us. We will
always transform ourselves to achieve our high objectives.
We appreciate your opinions and advice, which we willdraw on for future initiatives.
President and CEO

Yoshinobu Nakamura

In order to determine the actual state of ourenvironmental activities, I went to works and Group1

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Sumitomo Heavy Industries Group Environmental Sustainability Report 20122

Outline of Sumitomo Heavy Industries Group

Overseas Locations

The Sumitomo Heavy Industries Group contributes
to building an affluent society with “manufacturing”
technology

Asia

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

Affiliatedcompanies
Number of
employees

Company Outline (as of March 31, 2012)
Company name
FoundedIncorporated
Head Office

Sumitomo Heavy Industries, Ltd.
November 20, 1888
November 1, 1934
1-1 Osaki 2-chome, Shinagawa-ku, Tokyo

Machinery Components

Capital
Number of employees
Net sales

Europe30,871,650,000 yen
Consolidated: 18,139
Consolidated: 624,100 million yen

Precision Machinery

152,800 million yen
20 companies
4,747 people

Net sales

42,600 million yen
12 companies
1,711 people

Net sales
Affiliatedcompanies

Construction Machinery

Number of
employees

America
We handle speed reducers, which are devices
for lowering the number of motor revolutions andraising torque. Taking part in a broad range ofmarkets, speed reducers are used in conveyancelines at factories, in robotic joints and in the drive
systems of a range of machines.

We handle the injection molding machines formaking plastic products, devices for manufacturingliquid crystal and semiconductors, and devices fordiagnosing and curing cancer. Among injection
molding machines, products that require precision
machining are one of our particular specialties.

An extremely fuel-efficient product, our hydraulicexcavator was the first construction machinery to
win the Energy Conservation Grand Prize. Featuring
outstanding maneuverability, the Good DesignAward is another stellar achievement for the
excavator.

Main Products

Main Products

Main Products

Power transmission equipment
Inverters

Plastic injection molding machines, cyclotrons for
medical use, ion accelerators, plasma coating systems,
laser processing systems, cryogenic equipment,
precision positioning equipment, transfer molding pressmachines, precision forgings, defense equipment

Hydraulic excavators
Mobile cranes
Road machinery

Ships

Affiliatedcompanies
Number of
employees

Changes in net sales

6,000

800

6,241
5,162 5,480

3Main Products

Main Products

Main Products

Forging presses
Material handling systems
Logistics & handling systems
Turbines
Pumps

Ships

Power generation systems, industrial wastewater treatment
systems, water and sewage treatment systems, landfill
leachate treatment systems, air pollution control plants,
process equipment for chemical plants, reactor vessels,
mixing reactors, steel structures, food processing machinery(100 million yen)
400

569

471

458

2007

2008 2009 2010

2011

(FY)

12.8%
9.3%
12.9%

0

2007

2008

2009

2010

2011

Net sales ratio by region (FY2011)
1.2%

(FY)

0

2007

195

136

133

2008

2009 2010

2011

(FY)

Employee ratio by region (FY2011)

0.7%
7.6%

12.0%

624.1 47.5%
12.5% billion yen

25.5%

43%

18,13957%

11.6%
Overseas

Other

Construction Machinery

Other

China

Environmental Facilities & Plants

Machinery Components

Oceania

EuropeShips

Precision Machinery

Central and South America

North America

Asia (except China)

Japan

Industrial Machinery

279

200
100

14.9%

624.1
23.1%
billion yen

430

300

283

6.8%

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Changes in net income

200

1.4%

We also handle boilers that are 100% biomass fuelcompatible, and energysaving effluent treatment
facilities. Our products also include exhaust gas
processing facilities that do not use water, andfacilities for recovering metals from waste.

Environmental Facilities & Plants

500

400

Net sales ratio by segment (FY2011)

We specialize in midsized tankers with a capacity inthe 100,000 ton class. By narrowing down thetypes of ships, we have raised development
efficiency and we take pride in a low fuelconsumption that is in the top class for the industry.

Ships

778

600

2,000

We handle products referred to as heavymachinery. They include forging presses for
producing components for automobile engines,
large cranes for shipyards and ports, steam
turbines for private power generation at factories,
automated warehouse systems etc.

Industrial Machinery(100 million yen)
6,608 6,429

4,000

0

Construction Machinery

Changes in operating income(100 million yen)

Environmental Facilities & Plants

Precision Machinery

119,900 million yen
22 companies
1,374 people

Net sales

8,000

Industrial Machinery

Machinery Components

Japan

Sumitomo Heavy Industries Group Environmental Sustainability Report 20124

Relationship between Sumitomo Heavy Industries
Group and Society

Plastic injection
molding machine

Mobile Phones, 7DVDs and CDs

Hospitals 1■ Oil tanker■ Proton cancer therapy system■ Large crane

Shipbuilding Yards 4

The simple structure saves labor at use.
Cooling to the ultralow temperature of−269ºC, this is the core of MRI equipment.

■ Forging press

No wobbling at inversion
Widely used in fields where
precise control is required
such as welding robots etc.

Harbors 5

Resolves environmental
issues caused by heavy fuelconsumption, black smoke
and other exhaust gases.
By adopting a hybrid system,
we have kept maximum
engine output to about 1/3,
reduced fuel consumption
by approximately 60%, andreduced exhaust gas.

■ Forklift

Contributes to optimization of
shipbuilding.
Helps raise the efficiency of
shipbuilding operation with alifting capacity of 1,200 tons.

■ Cryocooler for MRI systems■ Precision speed reducers■ Container transfer crane

Implementing energy
conservation on board
ships
Our proprietary
technologies deliver
energy-conserving
performance at theinternational top level.

We continue to lead in tracer
RI pharmaceutical systems
for PET systems.
Discovers cancers of less than
1 cm in the early stages.

More compact than theconventional system
Capable of pinpointing and picking
off cancer cells, outstanding interms of its gentle therapy effect on
the patient’s body.

Sea 3

Mechanical parking
garageMaximum effective
utilization of limited
space
Facilitating fasterremoval times andhigher storage capacity(about 170 vehicles perunit)

Warehouse 6
Satisfies all workability,
comfort, economic
efficiency and safety
standards.
We have an abundant lineup
from 0.9 to 48 tons.

■ Speed reducers

Automobile Factories 2

Semiconductor and liquid Televisions 12
and PCs
production equipment

Numerousachievements in awide-ranging industry
Streamlines tasks withcompletely automatedmanagement of 190,000
packing cases■ Coke drums

Oil Refineries 13
Responds to wide-ranging
customer needs with asophisticated quality
assurance system.
At oil refineries, the cokedrums are capable ofprocessing heavy oil in themost efficient manner.

Power Generating Facilities 14
Contributes to the global
environment by utilizing
diverse fuels.
Creates power and steam
from a variety of fuels
including biomass fuels where
high-efficiency use has beendifficult in the past.

■ Steam turbine
Advanced technologies withconfidence and results that
respond to the needs of thetimes.
We are proud to have delivered
about 6,500 turbines toapproximately 80 countries
worldwide.

Dry-type desulphurizationdenitrification system
Contributes to processing
SOx, NOx and dioxins inexhaust gas.
Treats exhaust gas without
using water.

Delivering high positioning
precision on the order ofnanometers
We handle the XY stages
used for precision positioningof FPD and semiconductor
manufacturing equipment.

Automobile Factories 2

A history of trust
spanning more thanhalf a century
The compact design
trims weight by 30%.

■ Biomass boiler

Factories

Delivering highproductivity with highprecision and highqualityCompatible with 20 nm
ultrafine LSI. Implants ion
in wafers.

Elevators and Escalators 10■ Hydraulic excavator

Construction Sites 15

We contribute to reducing
the burden on theenvironment worldwide.
Delivering a 20% improvementin fuel consumption. First
construction machinery
receiving Energy Conservation
Grand Prize (FY2007).

10

1

2

■ Ion implantation system Semiconductor 11

Sewage Treatment Plants 9

Automated
warehouse system

Largest in the world at 16,000
tons
Plays a part in a range of
forging scenarios from compact
machinery to the world’s largest
machines.

Underground 8
Parking Lots

Sewage Treatment Plants 9
Delivering energy savings
by reducing energy
consumption at sewage
treatment plants
Capable of reducing powerusage by creating bubbles
that are finer than those of
conventional diffusers for
efficient delivery of oxygen.

Approaching next tozero waste, defects ordifficultyCompatible with precision
micro molding

Oil refineries, shipbuilding yards, automobile factories, semiconductor industry and other industrial
settings as well as the settings of daily life such as households, hospitals, elevators and escalators: theproducts of the Sumitomo Heavy Industries Group are involved with all these areas. Here, we introduce
several products that take account of the global environment as well as the people who use them.
■ Cyclotron for PET■ Diffusion equipment

7

12

6
8
11

4
9

14

15
3

5

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

513

Sumitomo Heavy Industries Group Environmental Sustainability Report 20126

Special feature Manufacturing Excellence at Sumitomo Heavy Industries

Globalization and innovation:
our core strategies to enhance market
competitivenessWith “Innovation of Half and Double” as our slogan and a redesigned competitive
structure, Sumitomo Heavy Industries Group is establishing a dominant positionin the global market.
How “Innovation of Half and Double” works: By integrating product development with intellectual
property activities and strengthening collaboration between the corporate technology operationsgroup (which develops constituent and fundamental technologies) and our business units, we arehalving costs and process times while doubling performance and efficiency.

The new SE-EV series of injection molding
machines is now available
We have added this new series to our lineup of plastic
injection molding machines. An injection molding machineis a machine that pours molten plastic into a mold andcreates a product. The SE-EV series of small fully-electric
injection molding machines is a further evolved version of
the previous series which enjoyed a solid reputation, andcontributes greatly to higher productivity when making
molded products.
The SE100EV small fully-electric
injection molding machine

The SE-EV series of small fully-electric injection molding machines

Expanding andleveraging our global
network
We are developing andexpanding our network ofoverseas bases to meetthe needs of a global
clientele.

Developing andmarketing first-classproducts“Innovation ofHalf and Double”
in practice

We are accelerating
development of “green
products” designed forsaving energy, the useof renewable energy andso on.

Innovation in
manufacturing andmarketing, enhancing ourbusiness competencies
We are strengthening
each of our development,
design, manufacturing andmarketing processes.

1 Realizing a higher level of precision and stable molding

The low-inertia fast-response servo motor which was developed in-house is controlled by the latest servo controller, permitting
extremely precise control. This in turn realizes a higher level of precision and stable molding. In addition, the new series comeswith a new melting theory (SL screw system)* which realizes highly stable plasticization.

2 High energy conservation performance reduces power consumption by 20%

The mechanical efficiency has been thoroughly reviewed, realizing a reduction of power consumption of approximately 20%
compared to previous models. The quality of the grease used and the lubricating system have been re-examined, thus enabling
the grease consumption to be halved. The overall length of the new models has been reduced by up to 10% compared to theprevious models, resulting in greater compactness and higher flexibility of installation at the worksite.

3 Simple operation

Operability of the new machine has been rationalized throughout, and the setting screen has been simplified. The number ofsetting items has been reduced by 50%, enabling settings to be made in a shorter time, and also permitting even inexperienced
operators to carry out operations accurately. The machine can support a total of 15 languages including Chinese, Korean andSpanish.
* New melting theory (SL screw system)
The plasticizing system has greatly increased thermal efficiency, thus greatly reducing shear heating which causes scorch marks and black spots
on the resin.
In 2010, we received the “Aoki Katashi” award (an award that is awarded for technology that has contributed to the development of plastic
molding) from the Japan Society of Polymer Processing.

What is an injection
molding machine?
An injection molding machine isa molding machine which melts
the plastic material (resin), feeds
it to a mold (= injection), thensolidifies it (= molding), and takesout the finished product.

(Clamping unit)
Mold
Melting

Injection

Molding

Taking out

7

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Sumitomo Heavy Industries Group Environmental Sustainability Report 20128

Development of biomass firing small CFB boiler

Development of an industrial motor that complies
with various international standards

We have developed a small circulating fluidized bed (CFB)
boiler that generates steam at the rate of 25 t/hour (scaleof power generation: 5,000 kW). The design specificationsof the main parts of the boiler have been standardized,
resulting in greatly reduced delivery period. This enables
the boiler to be put into operation within 14 months fromreceipt of order.
A CFB boiler can be designed to run on wood biomass(wood chip, demolition wood, and so on), coal, or a mixtureof both. It thus contributes to the effective utilization ofenergy sources and the reduction of CO2 emissions.

Industrial motors with higher efficiency are being demanded in order to realize
countermeasures against global warming and the promotion of energy conservation.
Amid this background, the international standard IEC 60034-30 was enacted in
2008, and based on this standard, high-efficiency (IE2 class) regulations for induction
motors were implemented in various countries.
Many of these regulations also cover gear motors (motors with a speed
reducer). We acquired high efficiency certification in various countries based on
the high-efficiency motors that we developed in 2010, and developed products that
could satisfy international standards in many countries.
The motors that we developed cover the range between 0.75 and 30 kW, andare capable of meeting the South Korean regulation that was implemented in July
2010, and also the regulations in China, Australia and other countries. We havealso acquired certification for meeting safety standards such as the CCC (China
Compulsory Certification). You can thus use our products with peace of mind whendeveloping overseas markets as well.

Small circulating fluidized bed boiler

Biomass firing small CFB boiler

Speed reducer with high-efficiency motor

Intended market and future prospects

This product consumes between 55 and 60 thousand tons of wood biomass fuel per year. The demands are expected to be foundin companies that already have in-house power generating facilities and considering fuel conversion to biomass in the future;
domestic power suppliers who have their sights on the “feed-in tariff scheme for renewable energy” to utilize unused forestry
resource such as thinned wood, which is not being used efficiently at present; and also in the ASEAN countries. We believe thatthe short delivery period of this product can be utilized as an advantage and contribute to dispose the waste generated by theGreat East Japan Earthquake as well.

Mechanism of combustion
Air fed from the bottom of the boiler
will float and mix the hot particles
and the fuel in uniform condition,
thus enabling various kinds of fuel tobe burned efficiently. In addition, thefuel particles which rise together withthe combustion gas are separated
by a cyclone, and returned to thebottom of the boiler once again, thusincreasing the combustion efficiency.

Features
1. Can utilize a variety of fuelsThis boiler can also run on various fuels thatare difficult to burn, such as low-grade coal,construction waste, scrap tires, waste plastic, coalrefuse, and paper sludge.
2. Can utilize waste fuels
The fuel does not need to be pulverized. The wires
and other non-rubber parts of tires can be smoothly
discharged (prior separation unnecessary).

Combustion gas

Combustion gas+
Particles

The longer the running time, the greater is the energy
conservation effect.

Price of a standard motor+ Electricity charge

3000

Electricity
saved

Price of a high-efficiency motor+ Electricity charge

Period required torecoup the additional cost

Particles

High-efficiency
motor
0

1000

2000

3000

4000

5000

6000

Running time (h)Energy loss comparison
If you attempt to obtain the same output from the motors, thehigh-efficiency motor, which has lower energy loss, will consumeless power.
Energyloss

Standard
motor
Separationof particles
using
a cyclone

10000Service life

Standard motor

2000

Output (motor capacity)

Example of generation of energy loss in a motor❶ Fan, Bearing
Mechanical loss
❷ Stator core, Rotor core
Iron loss

Energyloss

Highefficiency
motor

Output (motor capacity)
Input to high-efficiency motor (power consumption)

Savingelectricity❸ Primary winding

Primary copper loss

● Mechanical loss

3. Reduced NOx emissions
High combustion efficiency and low combustion
temperature compared to other methods results
low NOx emissions.

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

■ Comparison of energy loss power

Input to standard motor (power consumption)

Particle circulation● Iron loss
● Primary copper loss
● Secondary copper loss

Air

9

■ Comparison of economy of different motors

Lost electric power (kWh)The detailed design of the main parts of the boiler has been already completed, so that we can start manufacturing immediately
after we receive the customer’s order. The boiler is manufactured in-house as modular parts and installed at the construction
site with minimum welding work. As a result, the design process and factory work are reduced, and the boiler can be put into
operation 14 months after receipt of order. In addition, we are aiming to reduce the construction period to 12 months when thevarious conditions are met. The shorter construction period will result in reduction of construction costs.

Although the purchase price of a high-efficiency motor is somewhat higher than that of a standard motor, the lower power consumptionof the high-efficiency motor enables the additional cost to be recouped.

Diverging point

2 Short delivery period

Energy conservation and high economy realized by a high-efficiency motor

Running cost

Previously, this type of boiler was used as in-house power generating facilities installed in medium and large factories that
consume a certain order of electric power (steam generation quantity: 65 to 450 t/hour, scale of power generation: 15,000 to
70,000 kW). Recently, we have developed smaller-scale power generating facilities (steam generation quantity: 25 t/hour, scaleof power generation: 5,000 kW) in consideration of the demands of users for such small-scale power generating facilities. Even
business operators who were unable to install biomass power generating systems because of the excessive size of equipment
can now install a system that meets their requirements.

Price of a high-efficiency motor
Price of a standard motor

1 Small-scale power generation

What is a circulating
fluidized bed boiler?

Small and medium speed
reducers with high-efficiency
motors which conform to IE3● Stray load loss

Loss due to bearing wear and wind loss due to thecooling fan
Loss that occurs due to magnetic alternation in
the iron core
Insulation resistance loss in the stator coil
Insulation resistance loss in the rotor conductors
Other losses that occur in the stator and the rotor❹ Rotor conductors, Aluminum

Secondary copper loss

❺ Stator, Rotor(Example of cyclo speed reducer)

Stray load loss

Sumitomo Heavy Industries Group Environmental Sustainability Report 201210

Environmental Initiatives

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

Sumitomo Heavy Industries Group Environmental Philosophy
The Sumitomo Heavy Industries Group contributes to implementing sustainable developmentof society by holding fast to the “Sumitomo Business Spirit.”
The Sumitomo Heavy Industries Group is taking action across the Group to protect the global
environment.

Environmental Policy

Environmental Management

In order to implement the sustainable development ofsociety, we must respond to global environment issues
and reduce the burden on the environment posed byvarious aspects of corporate activity. To do so, the Groupis promoting autonomous and proactive initiatives toprotect the environment.
In 1992, we established the Environmental Committee
to promote environmental protection and compliance inlocal communities. In September 1997, we established theSumitomo Heavy Industries Environmental Policy in orderto drive home the message of environmental management.
In addition, in order to clarify the basic policy ofactivities across the Group, we established the Sumitomo
Heavy Industries Group Environmental Policy in November
1999, expanding environmental management across theGroup as a whole including overseas facilities.

We have established an Environmental Management
Division in the General Affairs Group, which draws up
the medium-term environmental plan (the current third
medium-term environmental plan runs from FY2011 toFY2013), environmental goals on an annual basis, anddevelops environmental management across the Group
including personnel training.
In 2011, we assigned an environmental manager
to Shanghai, China, to promote environmental activity
monitoring and support throughout China.

Sumitomo Heavy Industries Group Environmental Policy
Established November 1, 1999

Considerationof the impact on
the environment
around thefacilities

President andCEO

Associate
Executive
Director
Environmental
Management
Division

DivisionsGroup
Companies
within Japan

Group
Companies
outside Japan

Environmental
Committee
members

Environmental
Committee
members

Environmental
Committee
members

Environmental
Committee
members

Works / Divisions

Group Companies within the Scope of Certification

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

Japan

Saving energy
Saving resources
Promotingrecycling
Waste reduction

The Environmental Management Division undertakes
documentation checks and on-site internal audits of eachoverseas corporation with the principal objective being
activities to prevent global warming and environmental
risk reduction.
Audits of seven plants in China, two plants in Vietnam,
and one plant in Brazil were conducted in FY2011.
In FY2012, audits were further expanded to include
three plants in Europe.

Chiba Works

Yokosuka Works

Nagoya Works• Sumitomo (S.H.I.) Construction Machinery Co., Ltd.
• Kenki Engineering Chiba Co., Ltd.
• Sumitomo (S.H.I.) Construction Machinery Sales
Co., Ltd.

Group companies in Japan that have independently
received the ISO14001 certification
Group Company

Date of Certification

August 1998

April 1999

Date of Certification

Sumitomo NACCO Materials Handling Co., Ltd.

March 2000

Shin Nippon Machinery. Co., Ltd.

February 2002

Izumi Food Machinery Co., Ltd.

June 2002

SEN Corporation

October 2002

Sumiju Environmental Engineering Inc.

October 2002

Sumitomo Heavy Industries Environment Co., Ltd.

November 2002

Lightwell Co., Ltd.

February 2005

Nihon Spindle Mfg. Co., Ltd.

March 2006

Japan Electron Beam Irradiation Service Co., Ltd.

January 2007

Sumitomo Heavy Industries PTC Sales Company

September 2007

SFK Co., Ltd.

August 2008

Seisa Gear, Ltd.

August 2009

Sumitomo Heavy Industries Modern, Ltd.

December 2009

February 1999

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

January 1999

Group companies outside Japan that have
independently received the ISO14001 certification

March 2000

Sumitomo (SHI) Demag Plastics Machinery
GmbH (Wiehe factory)

April 1998

Sumitomo (SHI) Cyclo Drive Germany GmbH

March 2006

Sumitomo (SHI) Cryogenics of Europe, Ltd.

June 2008

Ningbo Sumiju Machinery, Ltd.

September 2008

Dalian Spindle Cooling Towers Co., Ltd.

December 1999

SHI Manufacturing & Services (Philippines) Inc.

January 2011

Sumitomo (SHI) Cyclo Drive China Ltd.

May 2011

Sumitomo (SHI) Demag Plastics Machinery GmbH
(Schwaig factory)

July 2011

Link-Belt Construction Equipment Company

August 2011

Suminac Philippines Inc.

September 2011

Sumitomo Heavy Industries (Tangshan), Ltd.

March 2012

• Sumitomo Heavy Industries Finetech, Ltd.

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

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

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Five plants at five companies acquired certification in
FY2011, so that a total of 11 plants at 10 companies
have acquired certification. Sumitomo NACCO Materials
Handling (Vietnam) Co., Ltd., which manufactures forklift
parts in Vietnam, and Sumitomo (S.H.I.) Construction
Machinery (Tangshan) Co., Ltd., which manufactures
construction machinery in China, are slated to acquirecertification in FY2012.

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

Okayama Works

Ehime Works(Saijo Factory)

11

Japan
Twenty-one of the main departments (works, divisions,Group companies) have acquired ISO14001. In Japan, allprincipal manufacturing divisions have completed the ISO
certification.

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

Overseas
Prevention ofenvironmental
pollution

ISO14001 Certification

Overseas

Environmental
Audit Team

Works

Environmental Management Audit
Once a year, the Environmental Management Division
conducts an audit of each works and Group company.
The audit covers environmental management as a wholeand its principal emphasis is on activities to prevent
global warming. In order to improve performance andto implement continued improvements, the emphasis isplaced on validating and verifying the systems. We also
undertake extraordinary audits as the need arises.
The audit results are evaluated on a five-point scale
based on independent evaluation standards for eachdepartment, the aim being to raise the levels.

Evaluation by the President (Once per year)
Report by the Executive Board (Four times per year)
Environmental audit (Once per year)
Sumitomo Heavy Industries Group Environmental Management
Committee (Twice per year)
Environment and Energy Conservation Conference for Preventionof Global Warming (Four to six times per year)
Special Patrol for Energy Conservation (According to level of goal
attainment)Group Company

November 1999

February 1999
October 2002

Date of Certification

Sumitomo Heavy Industries Group Environmental Sustainability Report 201212

Environmental Initiatives

Environmental Objectives(Medium-Term Plan) and Results
Sumitomo Heavy Industries Group formulated the third medium-term environmental plan, for which FY2013
is the final year, and is working to reduce environmental impact. In order to achieve a sustainable society, we
have set a target of making a 30% reduction in CO2 relative to 1990 by 2020, and we aim to have the No. 1
eco-factory in the industry through innovation.

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

INPUT

Energy■ Crude oil
equivalent
Water
Resource

Activities in FY2011 – General Overview

OUTPUT
CO2 Emissions

44,812kℓ
1,269,000m

370,000t

Chemical substance transfer
and release amounts
966t■ PRTR*1 Substances

Sumitomo
Heavy Industries
Group

Waste
■ Total Amount(A4 paper equivalent)■ Recycling Rate

31,216t99.95％

Investment
amountDetails of the main activities and the effects

Breakdown

Handling or processing water, air, noise, vibration, chemical substances, and waste materials; reducing energy and(1) Costs within
Business Areas (Sites) resource consumption; and recycling materials① Reduction in CO 2 emissions atworks and offices

542

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

178

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

182

Costs
473

209

102

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

11

162

Cost of cutting paper to use reverse side0

1.4(3) Management Activity
Costs

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

49

180

(4) Research andDevelopment Costs

Research and development of energy-saving products and renewable energy use, energy-saving design ofconstruction machinery, development of models that support emission controls, development of technologies tocounter corrosion in melting chlorine furnaces, development of combustion technologies for high alkaline fuel for
CFB boilers, development of low-grade combustion technology, research on improved fuel consumption for ships,
development of reduction gears for wind power generator, development of IE3 motor (development division),
improvement of hybrid power supply, development of reduced-weight CSU, improvement of effluent treatment
equipment functionality and energy saving, forklift development, emissions control support, other environmental
support, development of energy-saving products

580

735

(5) Cost of dealing with
Levies on air pollution loads; share of compensation for contamination and green belts charged to regional
environmental damage corporations

0

0.01

Total

1,171

1,388

Economic
effectMain content

Prevention of Global
Warming

improvement④ Reduction in paper usage

Reduction in CO 2 emissions intransportation① Reduction in volume of waste

Promotionof Resource
Conservation andRecycling

Cost reduction with introduction ofenergy conservation, natural energy

69

Reducing landfill by separating
rubbish, cost reduction by cuttingback on waste

Reduction by 19% from the FY2004 level by
FY2013(28% reduction over FY1990 levels)

Reduce CO 2 emissions by 17% from
FY2004 level(26% reduction over FY1990 levels)(Target exceeds medium-term plan)

27% reduction compared to FY2004◎

Improvement by 5% compared to FY2008

Reduction of 1.5% for the Group△

Average score 3.4 points

Average score 2.7 points○

50% reduction compared to FY2005◎

12% reduction per basic unit of
15% reduction compared to FY2006
transportation against FY2006 benchmark◎

Achieve four points of a maximum five-pointscore as in-house benchmark for process
improvement activities across all departments

Reduction by 45% from FY2005 level by FY2013 Reduction by 42% from the FY2005 level
By FY2013, 14% reduction per basic unit oftransportation against FY2006 benchmark• 13% reduction in amount generated compared • 11% reduction in amount generated• Amount generated 31,216 tons (8%to FY2007
compared to FY2007
reduction compared to FY2007)• Amount disposed of is less than 0.05% of• Amount disposed of is less than 0.5% of • Amount disposed of 39 tons (0.05% ofamount generated
amount generated
amount generated)○

Continue achieving zero emissions
factories

Achieved by all divisions◎

33% reduction compared to FY2005◎

Use completely abolished• Dichloromethane completely abolished,
continue complete abolition oftrichloroethylene and tetrachloroethylene• Continue complete abolition ofozone-depleting substances HCFC-141b,
HCFC-225

Compared to FY2005• Completed shift to dichloromethane
alternative• Trichloroethylene completely abolished• Continuing complete abolition oftetrachloroethylene• HCFC-141b reduced 44.5%, continuing
complete abolition of HCFC-225◎

Reduced by 33% from the FY2006 level

Reduced by 31% from the FY2006 level

25% reduction compared to FY2006○② Achievement of zero emissions

Achieve zero emissions factories③ Reduction in water usage• 22% or greater reduction compared to
Reduction by 25% or more from the FY2005 level
FY2005• Reduce non-attaining divisions to zero

① Emission control of organochlorine

chemicals (Soil Contamination
Countermeasures Law, Montreal
Protocol)Promotion ofPrevention ofEnvironmental
Pollution

Expansionof Line-up ofEnvironmentally
Friendly Products

Description

AmountTotal amount of investment madein the period

Renovations of wastewater treatment facilities; Maintaining sewage systems; Installing oil-water separating tank; Upgrading transformers (high-performance); Lighting
INV and scaling back on lighting; Investing in energy conservation measures; Upgrading air conditioning; Upgrading lighting; Upgrading compressors

1,171

Total cost assumed in the period

Recycling, collecting, transporting, processing and disposing of waste; Inspections to detect extremely small amounts of PCBs; Operational control of waste water
treatment facilities; Measuring water quality, exhaust gas, noise and vibration; Administering and maintaining ISO14001; Providing training; Monitoring implementationof action plans; Fixed term; Updated inspections

1,388

Total cost of research anddevelopment in the period

Researching and developing energy-saving products and renewable energy; developing technologies to counter corrosion in melting chlorine furnaces; developing
combustion technologies for high alkaline fuel for CFB boilers; researching improved fuel consumption for ships; Developing high-efficiency motors; energy
conservation; developing commercial versions of compact (resource-saving) equipment (water treatment); developing forklifts; emission control responses; otherenvironmental responses; developing energy-saving products

1,314

Cost of disposal of valuables etc.
in the period

Effective utilization of remainder materials such as metal scraps etc.

455

Total cost of environmental protection activities during the period② Emission control of substances

designated as VOC (Air Pollution
Control Law)

Promotion of measures for green
procurement (purchase of raw
materials and components)① Increase in the number of

ISO14001 certifications

Environmental
Management② Expansion of the scope of theConsolidated Environmental
Management③ Contribute to biodiversity

2,559

Evaluation◎• Complete early registration with theJapan Environmental Safety Corporation• Early registration of equipment with highof equipment with high concentration
concentrations of PCB completedof PCB. Dispose of appropriately after• Continuing investigation of low
receipt of disposal noticeconcentrations• For low concentrations, replace and store
in accordance with plans◎

Review Green Procurement Guidelines, eliminate
prohibited substances

Review Green Procurement Guidelines;
Develop regulations for prohibited
substances

Continue in accordance with Green
Procurement Guidelines◎

Expand certification at overseas factories to 10
companies

Three overseas Group companies acquirecertification for total of 10 companies
certifiedThree overseas companies acquirecertification
Total 10 companies acquire certification◎

Expand to principal overseas manufacturing
bases• Local guidance by head office, periodic• Implement environmental audits at
environmental audits
principal overseas manufacturing bases• Post full-time staff to Shanghai, create a• Post full-time staff to Shanghai
network•
Conduct education for environmental• Raise the level of education for
managers in China
environmental managers at Chinese
factories◎

Expand tree-planting and growing programs atfactory premises

Expand tree-planting and growing
programs at factory premises○

uses PCB (Law Concerning Special Total prohibition of use
Measures Against PCB Waste)

545

Achievements in FY2011
Zero environmental accidents (legal
violations)③ Total abolition of equipment that

Item

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

generated and disposed of

Reducing cost of wastewater
treatment

438

Targets in FY2011
Continue zero environmental accidents(legal violations)

Energy productivity = Net
By FY2013, a 7% improvement in the energy
sales/CO2 emissions (CO2 reduction
productivity indicator compared to FY2008
due to productivity improvements atfactories)③ Raising scores for process

108

39

Third Medium-Term Plan (2011 – 2013)
Zero environmental accidents(legal violations)② Improved energy productivity

Unit: million yen

13violations)⑤ Promotion of green logistics

As a yardstick for measuring the investment, expenditure and effect of environmental protection, we have conductedenvironmental accounting in accordance with the Environmental Accounting Guidelines, 2005, issued by the Ministry of theEnvironment.
Cost of Environmental Protection (Accounting Base: Sumitomo Heavy Industries Group)
Unit: million yen(1)-2 Costs for Global
Environment
Protection(1)-3 Resource
Recycling
Costs(2) Upstream andDownstream Costs

Item① Zero environmental accidents (legal*1 PRTR: Pollutant Release and Transfer Register*2 VOC: Volatile Organic Compounds

Environmental Accounting for FY2011(1)-1 Costs forPreventing
Pollution

Index
Environmental
Management

Emission of Air Pollutants Waste■ VOC*2735t

Paper 52,948,000 sheets

Category

We are promoting our third medium-term environmental plan (FY2011-2013) based on lessons learned with the second
medium-term environmental plan.
The status of achievement of FY2011 activities is as follows.

Systematic tree-planting and growing
programs in all areas

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

Sumitomo Heavy Industries Group Environmental Sustainability Report 201214

Environmental Initiatives

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

Promoting Environmental Management

Energy Productivity

In the Sumitomo Heavy Industries Group, activities
to prevent global warming are positioned as a part ofenvironmental management with discussions conducted atevaluations by the President on visits to the manufacturing
floor. The results from each business division are fed backfor monthly processing at the Environmental Management
Division. The results are also announced at the quarterly
meetings of the Executive Board.
Each division in the Group promotes activities toprevent global warming and is engaged in activities toimprove a range of processes in order to further enhancethe efficient use of energy and to “visualize” activities andinitiatives through “the participation of all employees.”

We have been using the new unified index of energy
productivity (sales/CO2 emissions) since FY2009 to
conduct monthly management and operations byeach business unit while taking the particular businesscharacteristics of the SHI Group into consideration.
We operated with the declared target of 5%
improvement over FY2008. As a result, where in FY2010
the SHI Group overall achieved a 10% reduction over
FY2008, in FY2011 it achieved a 1.5% reduction, which
was an improvement over FY2010 but ultimately did notmeet the target. Our principal manufacturing bases didmeet the target in FY2011 with a 17% improvement over
FY2008.
FY2008 sales were the highest in the past several
years, and sales then decreased due to the subsequentcollapse of Lehman Brothers. Even though FY2011 sales
recovered to a higher level than FY2010, they were lower
than FY2008. The reason that targets were not met is thatsome departments were unable to achieve reductions in
CO2 emissions appropriate to this decrease in sales.
Going forward, we will continue to promote thefollowing measures:❶ Concentrate operating hours❷ Minimize standby power❸ Minimize working areas❹ Make effective use of facilities.

Reducing CO2 Emissions
The Sumitomo Heavy Industries Group started to takeaction in FY2005 with the First Medium-Term Environmental
Plan to reduce CO2 emissions by 10% from FY2004
levels by FY2007. As of FY2011, we launched the Third
Medium-Term Environmental Plan aiming to further reduce
CO2 emissions by 19% from the FY2004 level by FY2013.
Compared to the benchmark year of FY1990 for the Kyoto
Protocol, the target is to achieve a 28% reduction.
In FY2011 we were able to control emissions to far
exceed the target with a 27% reduction over FY2004 levels
and a 35% reduction over FY1990 levels.

Energy productivity
SHI Group energy
productivity target values

CO2 emissions(100 million yen/thousand tons)

Target amount of CO 2 emissions by the Group

80

18%

(10,000 t- CO 2)from FY2004

12
10
8

reduction

0

9.64

9.43

9.30

8.44

6.79

7.21

7.00

Activities to Reduce Paper Usage
Reducing paper use is part of activities to save resources
and at the same time, it is linked to activities to prevent
global warming such as reducing CO2 emissions in thepapermaking process. In FY2013, the Sumitomo Heavy
Industries Group aims for a 45% reduction compared to
FY2005 levels.
In FY2011 we exceeded the target of a 42% reduction
over FY2005 levels with a reduction of 50%.

7.83

60
50

CO2 emission through logistics (basic units)
59.9

64.8

64.1

65.9

57.4

63.1

Estimate2005 2006 2007 2008 2009 2010 2011 2012 (FY)13%

(t-CO 2 /t)

20

Target0

The Sumitomo Heavy Industries Group has createdsystematic and voluntary standards across the Groupsuch as carrying out Lifecycle Assessments*, improving
recycling rates at the time of disposal, reducing the volumeof packaging, curtailing harmful substances containedin products, and developing products that consume lessenergy, weigh less, are more compact and last longer. We
have launched initiatives for continuous improvements andevaluation based on these standards.
As a result, we were able to increase the number of“first-class products” from three products, consisting of thebiomass boiler (Energy & Environment Group), the hydraulicexcavator (Sumitomo (S.H.I.) Construction MachineryCo., Ltd.) and the bag filter (Nihon Spindle Mfg. Co., Ltd.),
to 11 products with the addition of these in FY2011:
Electric-powered reach forklifts (Sumitomo NACCO Materials
Handling Co., Ltd.); plastic injection molding machines(Plastics Machinery Division); turbines with longer blades (Shin
Nippon Machinery Co., Ltd.); hot forging presses (Sumitomo
Heavy Industries Techno-Fort Co., Ltd.); dividing-wall
distillation columns (Sumiju Plant Engineering Co., Ltd.);
compact 25-ton biomass boilers (Energy & Environment
Group); dry-type desulphurization equipment (Energy &Environment Group); and asphalt finishers (Sumitomo (S.H.I.)
Construction Machinery Co., Ltd.).

2007

2008

2009

2010

2011

2012 (FY)

TargetTarget amount of paper usage reduction by the Group

from FY2006

0.03

2006

Paper usage (A4 paper equivalent)Target amount of CO 2 emissions by the Group logistics

67.9

10
1990

Environmentally Friendly“First-Class Products”* Lifecycle Assessment: A method of objective and quantitative evaluation of environmental
impact throughout the lifecycle (all stages from extracting the resources to manufacturing,use, disposal and transportation) of products and services

70

30
10.67

improvement

In transportation, we have been making efforts to reduce
CO2 emissions by eliminating waste and by improving
efficiency. With FY2006 as the benchmark year, weaimed to achieve an 12% reduction in the basic unit oftransportation (t-CO2/t) in FY2011. Through measures
such as a switch to modal shift, efficient transportation
planning and by making
improvements to loading
ratios, we exceeded
the target with a 15%
reduction in FY2011. We
will be pushing activities
toward the goal of a 13%
reduction in FY2012
compared to FY2006
Using ships to achieve a modal shiftlevels.

40

6
4

6%

over FY2008

Promoting Green Logistics

0.02

reduction

44%(million sheets)120

from FY2005

100
80

reduction

60
0.01

0

15

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

0.02040.02040.01950.01890.0187

2007

2008

2009

2010

2011

0.0191

2012 (FY)

Target

40
20
0

96

83

68

49

54

53

2006

2007

2008

2009

2010

2011

59

2012 (FY)

TargetSumitomo Heavy Industries Group Environmental Sustainability Report 201216

Environmental Initiatives

Activities Directed Toward Creating a Society
Based on Recycling
In order to build a recycling-oriented society, we at the Sumitomo Heavy Industries Group are controlling thedischarge of waste generated by our business activities, reusing and making efficient use of resources as well
as working on initiatives to reduce the environmental burden posed by our business activities.

Measures for Reducing theEnvironmental Burden

Zero Emissions in FY2011 Achieved by
Entire SHI Group

Establishing a society based on recycling is essential for
ensuring the sustainable development of society. We manage
our waste by classification into the three categories shown
below. We aim to reduce the volume of waste generated
through our business activities and put more emphasis on
improving the recycling of waste. We also take action to reducethe burden on the environment by setting specific goals.

The SHI Group has defined factories at which the amount ofwaste disposed of as landfill as a percentage of total waste (thezero emissions rate) is less than 0.5% as zero emissions
factories. We have been promoting this program since
FY2005, and as a result in FY2011 we achieved zero emissions
at all seven works and all eight Group companies. We werealso able to achieve a zero emissions rate of 0.05% for the SHIGroup as a whole, greatly exceeding the target.
Recycling by separating waste is crucial in achieving zero
emissions. Going forward, we will conduct thoroughgoing
waste separation so that we can maintain zero emissions
status, and we will aim to make our plants friendly to the global
environment.

Waste for Disposal

Discarded as landfill or incinerated as unusable waste

Valuable Resources

Recycled for reuse. Metal scraps account for the main part.

Waste for Recycling

Discarded as waste, but recycled and later reused

Volume of waste generated in FY2011
Volume of waste disposed of X
39t

Volume of waste recycled Y
10,887t

Valuable resources Z
20,290t

Volume of waste W (X+Y)
10,926t

Control of Waste Generated and Reductionin the Volume of Waste Discarded
In FY2013, we aim to reduce the volume of waste discarded
by 13% compared to FY2007 levels. In FY2011, we worked
to control the volume of waste including metal scraps, toeliminate wastefulness and to streamline production
activities, and the volume of waste decreased to 31,216 tons,
a reduction of 8% compared to FY2007 levels, but we did
not meet the FY2011 target, which was a reduction of 11%.
The target for waste disposal is less than 0.5% of the volume
of waste. In FY2011, the disposal volume of 39 tons was
0.05% of the volume of waste, thus achieving the target.

■ Waste disposal■ Waste generated

12%30,00020,000reduction

2,652

17

2007

2008

0.6

0.4

2009

2010

0.5%
0.5

0.05
2011

2012

Target(FY)

Reducing Water Consumption
Reducing water consumption is linked to protecting resources
and reducing discharge into public water systems. The SHIGroup has set a target of reducing water consumption in
FY2013 by 25% compared to FY2005 levels. In FY2011, we
continued to install visible water pipes (abovegroundinstallation) in order to identify water leaks and eliminate waste.
As a result, we achieved a 33% reduction from FY2005 levels.
For FY2012, we will aim for further reductions without allowing
ourselves to be limited by target figures.

(1,000 m3)

Water use target values at
the SHI Group

34,01429,761

2,500
2,000

24%

2007

2008

hardware and software sides, including consciousness-raising activities
to encourage participation by all personnel, visualization, operating
standards for air conditioners and lighting, updating of skylights to reduce
lighting needs, installationofeasilyaccessible
switches for office lighting,and Group-wide lateral
deployment of measuresacrossorganizationalboundaries.
Lecturing at the Seminar on Rationalizing
Energy Consumption

Explaining the importance of separating waste to lower secondary school students
visiting for a workplace experience (Yokosuka Works)

Grindstone and dust collector waste treatment flow at Shin Nippon Machinery’s Kure Works
Dust from dust collector

Grindstone waste
Shaft-mounted
grindstone

Disk grindstone

Grinding wheel

Sandblasting

Grindstone grit
Separate

28,02031,21629,814

1,000

1,669

1,631

1,574

1,439

1,425

1,269

271

143

39

2009

2010

2011

2012 (FY)

TargetSumitomo Heavy Industries Group Environmental Sustainability Report 2012

0

2006

2007

2008

2009

2010

2011

Trade in (sell) to
grindstone manufacturer
for recycling

Intermediate treatment
contractor (disassembly)

reduction

1,449

500
808

Waste material at the Yokosuka Works has been thoroughly broken
down into 80 types and recycling is being promoted. At the Nagoya
Works, machining sludge is not being sent for disposal in landfill
as before, but is instead being recycled. The same is being donewith grindstone waste and dust from dust collectors at Shin Nippon
Machinery Co., Ltd. Recycling of grindstone waste is also being
promoted at Seisa Gear, Ltd., and Sumitomo NACCO Materials
Handling Co., Ltd.
At Sumitomo Heavy Industries Himatex Co., Ltd., shot dust
is being recycled as iron material. Steps are also being taken
to promote recycling by rigorously separating the waste whenupgrading furnaces.

Intermediate treatment
contractor (disassembly)

from FY2005

1,500
33,88010,0000

1.8

Target line for waste generationfrom FY2007

40,000

Below

4

0

Ministry of Economy, Trade and Industry has taken steps to further promote
corporate energy-saving programs by holding a seminar on rationalizing
energy consumption in February, which is designated energy-saving
month, in order to promote the more efficient use of energy.
The seminar was sponsored by the Shikoku Bureau of Economy,
Trade and Industry of the Ministry of Economy, Trade and Industry.
At the seminar, the environmental manager of the Niihama Factory
spoke about SHI Group activities to prevent global warming anddescribed energy-saving measures at the Niihama Factory as aprogram case study.
The lecture covered a wide range of measures on both theWater use

Trends in volume of waste, etc.
（t）

（％）
6
5.2

31,216t

Lecture at Seminar on Rationalizing Energy Consumption

Example of Zero Emissions Program

Zero emissions rate

Volume of waste
generated S(X+Y+Z)TOPICS

2012

TargetIntermediate treatment
contractor
Steel waste

Grindstone portion

Grindstone portion

Grindstone portion

Recycleas scrap

Recycle as sub-basecourse material

Recycle as sub-basecourse material

Recycle as sub-basecourse material(FY)

Sumitomo Heavy Industries Group Environmental Sustainability Report 201218

Environmental Initiatives

Activities for Managing Chemical Substances
We manage chemical substances with the aim of implementing prevention of environmental pollution.

Complete Abolition of Organochlorine
Chemicals

Emissions of substances that are subject to theSoil Contamination Countermeasures Law(kg/year)(kg/year)
1,250
1,000
750
500

0

8,000

Continue
totalabolition

926
550

250

10,000

2007

2008

201

0

0

0

2009

2010

2011

2012

Target

(FY)

6,000
4,000

5,178

2,000
0

3,251
2005 2006 2007

3,430

4,992
320

2008

2009 201090

TargetMore than 90% of PRTR substances are paint solvents(toluene, xylene, ethylbenzene). In FY2011, we reduced
these substances by 27% of the level in FY2006. We willcontinue to expand the use of low-solvent paint while
ensuring that we maintain the quality of our products. We
will also install and expand solvent collection and removal
equipment to reduce the emission and transfer of PRTR
substances.

(t/year)

32%

1,250

from FY2006

1,000

0

2011 2012

Toluene, xylene and ethylbenzene in paint solvents
account for over 90% of the VOC we use. Our goal is to
reduce emissions of these chemicals by at least 33% by
FY2013 compared with the level in FY2006.
Progress was made with reduction in FY2011 thanks to
the operation of solvent collection and removal equipmentat our large-scale paint facilities that are subject to legal
controls. As a result, we saw reductions of 25% comparedto the level in FY2006. Measures to control VOC emissions
in FY2012 will continue from FY2011 through such steps as
the operation of solvent collection and removal equipment,
the expanded use of powder paint, and the adoption of
low-solvent paints to control emissions.

VOC emissions

Completeabolition

9,388

Emissions and Transfer of PRTR
Substances(FY)

Emissions

Amount handled

Emissions of ozone-depleting chemicals

Emission Control of VOC(Volatile Organic Compounds)

TOPICS

500

984

946

915

767

754

735

669

250

Management of PCB (Polychlorinated Biphenyl)
and Total Abolition of Equipment Containing PCB
We have completed early registration of all equipment withhigh concentrations of PCB with the processing company,
Japan Environmental Safety Corporation, and we haveundertaken a systematic course of detoxification based on
the Law Concerning Special Measures Against PCB Waste.
Until FY2011, this material was processed at the Tanashi
Works, Okayama Works, Nihon Spindle Mfg. Co., Ltd., andIzumi Food Machinery Co., Ltd. The survey of equipmentwith low concentrations of PCBs was furthered and updated
in FY2011. Study is underway regarding treatment of items
presently being stored. In FY2011, we also undertook a major
upgrade with regard to lighting equipment with stabilizers andtransformers containing PCBs.

750

reduction

0

2006

2007

2008

2009

2010

2011

2012

Target(FY)

Emissions and transfer volume of Class I DesignatedChemical Substances under the PRTR Law in FY2011(Substances subject to reporting)(kg/year)
Substance
numberEthylbenzene

204,787

80

Xylene498,489240

Styrene

1,784

296

1, 2, 4-trimethylbenzene

1,217

297

1, 3, 5-trimethylbenzene

300

Toluene349

Phenol

1,347

374

Hydrogen fluoride and its water-soluble salts

39,839384

1-bromopropane

4,000

392

Normal hexane

405

Boron and its compounds

2,578

412

Manganese and its compounds

14,709Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

7,370
184,885732* Emissions + transferred amount is the total amount for Sumitomo Heavy Industries andall Group companies

PRTR substance emissions andthe amount transferred(t/year)
2,000

Exterior view of the warehouse forstorage of equipment containing PCB(Okayama Works)

Storing transformers containing minute amount of
PCB (Okayama Works)

27%

from FY2006

1,600

reduction(achievement)

1,200
800
400
0

19

Emissions +transferred amount

Substance designation

53

Emissions + transferred amountIn FY2011, we completed eliminating any use ofdichloromethane, tetrachloroethylene and trichloroethylene,
which are organochemical substances subject to the Soil
Contamination Countermeasures Law.
In FY2011, the total use of these three substances
was reduced 99% compared to the level in FY2005. The
achievement by substance shows a 95% reduction indichloromethane from the FY2005 level, and the shift tosubstitutes was completed during FY2011. The use oftrichloroethylene continued to be completely abolished in
FY2011. The use of tetrachloroethylene was completely
abolished as of FY2009.

Total abolition of ozone depleting substances
We have worked toward the goal of total abolition of theozone depleting substances HCFC-141b and HCFC-225
by FY2010.
We completely abolished the use of HCFC-225 as of
FY2008 while HCFC-141b was completely abolished in
FY2010 with the adoption of substitutes.

Amount handledComplete abolition of substances subject to the Soil
Contamination Countermeasures Law

1,316

1,187

1,228

993

939

966

2006

2007

2008

2009

2010

2011

(FY)

Sumitomo Heavy Industries Group Environmental Sustainability Report 201220

Environmental Initiatives

Stronger Environmental Management
at Our Overseas Factories
Sumitomo Heavy Industries Group is strengthening environmental risk management and global warming
prevention measures at overseas factories.

Stronger Environmental Risk Management
Stronger environmental management system at ouroverseas factories
To strengthen environmental risk management at ouroverseas factories, we created the Headquarters post ofenvironmental manager for overseas factories in FY2011.
In addition, to strengthen environmental management ateight of our subsidiary companies in China, we set up andappointed a manager to a new Environmental
Management Department in Shanghai. At the same time
we began organizing China area environmental
management meetings. With the purpose of enhancing
environmental management measures in China, thesemeetings oversee environmental management at eachfactory in this area, providing guidance regarding problem
issues and allowing pooling of knowledge on these issues.
At our overseas factories, we are making pollution
prevention the top environmental management priority.
We verify that each factory has environmental
standards in accordance with all local laws andregulations, and we are putting in place compliancesystems to ensure that these standards are maintained. At
factories in Vietnam and China, in response to tighter local
environmental standards, we are carrying out measures
such as extensions, upgrades and increasing cleaning
rates of factory waste water systems.

Stronger environmental auditing at overseas factories
We are increasing the frequency of environmental audits
by Headquarters managers at our overseas factories, with
10 factories in China and Southeast Asia audited in
FY2011. The environmental audit evaluates environmental
risk for each factory, and the interval between audits isbased on this risk.
The audit verifies that environmental management
systems in accordance with local environmental
regulations are in place, and that factories have sufficient
capacity to prevent pollution incidents. It also examines
natural resources conservation and global warming
prevention operations at each factory, and provides
guidance on making these operations more effective.

Guidance for initial environmental management
operations at new factories
Before a new factory goes into full operation, an
environmental manager from our Headquarters is sent to
the factory to advise local environmental managers andprovide support for the initial phase of environmental
management operations.
In FY2011, Headquarters environmental managers weresent to advise local environmental managers at the new
construction machinery factory in Indonesia and the new
speed reducer factory in Brazil.

Speed reducer factory in Brazil
Providing operational guidance to environmental managers

Progress in Global Warming Prevention
Measures
As Sumitomo Heavy Industries Group establishes new
overseas factories and extends existing ones, total CO2
emissions for overseas factories are tending to increase.
In FY2011, 47% of our Group’s CO2 emissions came fromoverseas factories.
In response to this situation, to strengthen our global
warming prevention measures, Sumitomo Heavy Industries
Group has been setting a CO2 emissions reduction target
for each of its factories since FY2011.
We have set a target for CO2 emissions reduction of atleast 2% per year from a baseline year established factoryby factory. For factories which expand production, the target
is adjusted to take the sales budget for the fiscal year into
account. In addition, we have set a target for improvement inenergy productivity (the ratio of CO2 emissions to net sales)of at least 1% per year. In FY2011, we met our targets forboth CO2 emissions and energy productivity.
With the expectation that CO2 emissions will increase in
the future, we are continuing to enhance our environmental
management.
CO2 emissions by Sumitomo Heavy Industries
Group area in FY2011 (t)CO 2 emissions from overseas factory account for 47% of our Group’s total emissions.

Environmental audit
Inspecting the environmental bulletin board at the speed reducer
factory in Shanghai, China

21%
5%Emissions from factories in Japan

Total
emissions

127,000ｔ
21%

53%

Emissions from factories in China
Emissions from factories in Southeast Asia
Emissions from factories in the EU andAmericas

Change in overseas factory CO2 emissions
and energy productivity

China area environmental management meeting
Managers from eight factories in China attend the environmental management meetingwith the environmental manager from our Shanghai office.

Environmental audit
Operational inspection of a boiler used for heating at the
speed reducer factory in Tianjin, China

21

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Construction machinery factory in Indonesia
Advising on management of the waste water discharge box at the site boundary

Energy productivity

Energy productivity(million yen/t-CO 2)

80,0002.0

70,0001.5

60,00050,000Progress in acquiring ISO 14001 external certification,
maintaining and expanding the scope of certification
Our overseas factories are continuing to acquire ISO 14001
external certification, with five factories receiving new ISO
14001 external certification in FY2011. By the end of
FY2011, among 22 subsidiary companies running factories,
10 companies with 11 factories had been certified. This
represents a certification rate of 45%.
Furthermore, whenever we extend our factories toincrease production, we also expand the scope of certification.

■ CO 2 emissions

CO 2 emissions(t-CO 2)1.0

40,00030,00020,00040,017

46,70851,1692009

2010

60,006

66,6000.5

10,0000

Environmental audit
Inspecting the waste water drainage channel at a speed reducer
factory in Vietnam

2008

2011

2011

Target0(FY)

NOTES: Constants used to calculate CO2 emissions vary according to countryof factory location.
Sales have been calculated using 2007 currency exchange rates.
The annual emissions are the total amount of emissions for each fiscal
year.

Sumitomo Heavy Industries Group Environmental Sustainability Report 201222

Environmental Initiatives

Stronger Environmental Management at Our Overseas Factories

Global Warming Prevention Measures in
Factory Construction
To prevent global warming, whenever Sumitomo Heavy
Industries Group overseas factories are constructed or
extended, we use buildings and equipment designed witha commitment to saving energy.
In our recently constructed overseas factories,
multiple inverter-type and other compressors have been
installed for efficient air supply. Also, we are progressively
adopting energy-saving lighting equipment such as metal
halide lamps and energy-saving air-conditioning systems.

Speed reducer factory in Brazil and construction machineryfactory in Indonesia
In these newly constructed factories, large skylights havebeen installed in the ceilings and even in the walls. On clear
days, the intense sunlight in these low-latitude areas
makes lighting inside the factory unnecessary.

Reducing Electricity and Fuel
Consumption for Air-Conditioning
Installing air-conditioning equipment which meets
operational needs
Speed reducer factory in Tangshan, China
At the speed reducer factory in Tangshan, north China,
using the air-conditioning system to cope with the cold
winters and hot summers of a continental climate causes
high consumption of electricity and fuel.
When the factory building was extended in 2011, local
air-conditioning units controllable at each work site were
installed to enable rational use of air-conditioning to meet
operational needs.

Energy-Saving Designs for New Factories
We are adopting designs for factory buildings which, by
taking the local climate into account, allow large-scale
reductions in energy consumption for lighting andair-conditioning equipment.

Construction machinery factory in Indonesia
Wall vents

Reducing Electricity Consumption for
Factory Lighting

Ingress of insects and small animals through the ventsis prevented by netting, and this structure can provide
natural ventilation 24 hours a day.
Another feature of the construction machineryfactory in Indonesia is that the cafeteria has walls on twosides only and is open on the other sides, providing a
comfortable environment without air-conditioning.

Installing factory ceiling skylights
To reduce the electricity consumed by factory lighting, ourfactories are being comprehensively fitted with ceiling
skylights.
Speed reducer factory in Tangshan, China
In comparison with the existing building constructed in
2009, the number of skylights was greatly increased in the2011 extension to the factory. This allowed about
two-thirds fewer lighting units to be used in the factory.

Speed reducer factory in Brazil
With the skylights in the ceiling and walls, lighting inside the factory is unnecessary indaytime.

Speed reducer factory in Tangshan, China
Local air-conditioning units allow rational air-conditioning use at individual work sites.

Using extensive natural ventilation to cut down on
factory air-conditioning

Construction machinery factory in Indonesia
Despite the height of the ceiling, skylights make lighting inside the factory unnecessary indaytime.

Speed reducer factory in Brazil and construction machineryfactory in Indonesia
Local temperatures are higher than in Japan and lessvariable throughout the year. With the local climate in mind,
the factory building walls are fitted with large air vents,
making an air-conditioning system unnecessary.

Construction machinery factory in Indonesia
The cafeteria is open on two sides.

The increased number of skylights in extension to
the speed reducer factory in Tangshan, China
The extension to the factory can be seen through the doorway.
The number of rows of skylights has been increased from one
to two.

Speed reducer factory in Brazil
Wall vents

23

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Sumitomo Heavy Industries Group Environmental Sustainability Report 201224

Environmental Initiatives

Environmental Impact Data

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

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

Environmental impact data for each works
Chiba Works❚ ISO14001 (obtained in August 1998)❚ Established in 1939
❚ Building Area: 14,368m2❚ Site Area: 40,712m2❚ Main Products: Defense Equipment, Cryogenic Equipment❚ ISO14001 (obtained in April 1999)❚ Established in 1965
❚ Site Area: 294,600m2 ❚ Building Area: 110,692m2❚ Main Products: Plastic Injection Molding Machines, Metallic Molds, Hydraulic Excavators(t-CO2)CO2 Emissions(million yen/
Energy productivity
t-CO2)

Waste(t/year)

6,000

10

1,600

8

4,500
3,000

0
2004 2009 2010 2011 (FY)

0100

16,000

12 6,000

100

10

80

40

400

2

CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

20
2001

0
2008 2009 2010 2011 (FY)12,000

8

8,000

6
4

4,000
0

Main Products: Industrial Instruments, Environmental Equipment, Building Materials(t-CO2)CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

4,000

2
0
2004 2009 2010 2011 (FY)

4,500

60

3,000

2001

2008 2009(Molding Machines), Precision Forgings, Stage Systems, System Controller(t-CO2)
24,000(million yen/
CO2 Emissions
t-CO2)
Energy productivity
5

6,000

40

3,000

1

0

0

2004 2009 2010 2011 (FY)(t-CO2)
10,000

60

6,000

2

(%)
100
80

9,000

3

12,0000

12,0004

18,000

Amount Disposed ofAmount Discharged
Zero emissions rate

Waste
(t/year)20
2001

2008 2009

00

2010 2011 (FY)2004 2009 2010 2011 (FY)

4,500

1
0

2004 2009 2010 2011 (FY)

1,500
0

20
2001

2008 2009

1,500
02010 2011 (FY)

8

80

2

500

0
2004 2009 2010 2011 (FY)

0

20
0
2001

2008 2009 2010 2011 (FY)

CO2 Emissions(million yen/
Energy productivity
t-CO2)

Waste(t/year)

8,000

5

4,000

6,000

4

Amount Disposed ofAmount Discharged
Zero emissions rate

100
80

3,000

60

2,000

40

2

0

0
2004 2009 2010 2011 (FY)

(%)

1,000

20

0

0

2001

2008 2009 2010 2011 (FY)

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Amount Disposed ofAmount Discharged
Zero emissions rate

(t-CO2)CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

15 1,200

100

8,000

5 200

100

12 900

80

4

80

9

60

600

3
2004 2009 2010 2011 (FY)02001 2008

150

60

100

1
0

0

2010 2011 (FY)

2009

(%)

40

2
2,000

20

0

3

4,000

40

300

0

6,000

2004 2009 2010 2011 (FY)64202004 2009 2010 2011 (FY)

6,000

(%)

60

4,000

50

20

0

0
2001 2008

2009

0
2001

Waste
(t/year)

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

CO2 Emissions(t-CO2)

1,600

6,000

1,000

8,000

2010

2011 (FY)

4,500

1,200

4,500

800

6,000

3,000

800

3,000

1,500

400

1,500

2008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)

0

600

200
100

2,000

200
0

300

4,000

400

2008 2009 2010 2011 (FY)

Waste
(t/year)2008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)SHI Manufacturing & Services(Philippines) Inc.

Sumitomo Heavy Industries(Vietnam) Co.,Ltd.

Country: China
Main Products: Hydraulic Excavators

Country: The Philippines
Main Products: Precision Components

Country: Vietnam
Main Products: Power Transmission Equipment and Motors

Sumitomo (S.H.I.) Construction
Machinery (Tangshan) Co., Ltd.
CO2 Emissions(t-CO2)Waste(t/year)

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

CO2 Emissions(t-CO2)Waste(t/year)10,000

1,200

1,000

300

5,000

3,000

20

8,000

900

0

6,000

2008 2009 2010 2011 (FY)

4,000

40

2,000

CO2 Emissions(t-CO2)6,000

0(t-CO2)

10Main Products: Ion Implantation Systems
(%)

6

0

200

600
400

300
2008 2009 2010 2011 (FY)

4,000

800

600

2,000

Oven Machines

3

5,000

Amount Disposed ofAmount Discharged
Zero emissions rate

Environmental impact data for main overseas Group companies

080❚ Established in 1973
❚ ISO14001 (obtained in February 1999)❚ Site Area: 535,000m2❚ Building Area: 91,500m2❚ Main Products: Steel Structures, Pressure Vessels, Stirring and Mixing Equipment, Coke

2,000

Amount Disposed ofAmount Discharged
Zero emissions rate

8

Ehime Works (Saijo Factory)

4,000

0

100

10,00002011 (FY)Country: China
Main Products: Power Transmission Equipment

40

10 8,000

40

2010

Sumitomo Heavy Industries (Tangshan), Ltd.

CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

60

2009

Country: China
Main Products: Plastic Molding Machines,
Components for Power Transmission Equipment(t-CO2)

1,000

2001 2008

Ningbo Sumiju Machinery, Ltd.

20,00042004 2009 2010 2011 (FY)Country: China
Main Products: Power Transmission Equipment

(%)

6

3,000

2011 (FY)

20

0

0

Sumitomo (SHI) Cyclo Drive China, Ltd.

3,000

Machines, Transporting Machines

15,000

3

0

60

4,500

100

1,500

0

40

300

SEN Corporation

Main Products: Turbines, Pumps

1,000

60

600

80

10 2,000

Waste(t/year)

2010

80

9

4

❚ Established in 1888
❚ ISO14001 (obtained in November 1999)❚ Site Area: 418,000m2 ❚ Building Area: 204,000m2❚ Main Products: Ion Accelerators, Coating Equipment, Parking System, Forge Rolling

CO2 Emissions(million yen/
Energy productivity
t-CO2)(%)

2009

12 9006400

Shin Nippon Machinery Co., Ltd.

3,000

❚ Established in 1948
❚ ISO14001 (obtained in March 2000)❚ Site Area: 425,000m2❚ Building Area: 94,000m2❚ Main Products: Gearboxes, Stage Systems, Machine Tools

6,000

2001 2008

02010 2011 (FY)

Ehime Works (Niihama Factory)

Amount Disposed ofAmount Discharged
Zero emissions rate

0

(%)
100

100

2

2,500

20

0

0

800

40

500

15 1,200

5 6,000

3

5,000

1,000

Amount Disposed ofAmount Discharged
Zero emissions rate

(million yen/ Waste
CO2 Emissions
t-CO2) (t/year)
Energy productivity

1,200

60

4,000

Okayama Works(t-CO2)

25

7,500

80

1,500

20

Amount Disposed ofAmount Discharged
Zero emissions rate

CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

12(t-CO2)❚ Established in 1961
❚ ISO14001 (obtained in January 1999)❚ Site Area: 293,000m2 ❚ Building Area: 90,000m2❚ Main Products: Power Transmission and Controls, Gear Motors, Inverters, Construction
Cranes1,600

40

Nagoya Works❚ Established in 1971
❚ ISO14001 (obtained in February 1999)❚ Site Area: 523,000m2❚ Building Area: 170,635m2❚ Main Products: Ships, Laser Processing Systems, Semiconductor Manufacturing Equipment

100

3

2,000

Yokosuka Works

15 2,000

CO2 Emissions(million yen/ Waste
Energy productivity
t-CO2) (t/year)

1,500
0

(%)

(t-CO2)6

1,000

Amount Disposed ofAmount Discharged
Zero emissions rate

(%)

9

2,000

0

(t-CO2)

60

800

4

1,500
0

1,200

6

Amount Disposed ofAmount Discharged
Zero emissions rate(%)
80

Nihon Spindle Mfg. Co., Ltd.

Main Products: Forklifts

3,000

Tanashi Works

Amount Disposed ofAmount Discharged
Zero emissions rate

Sumitomo NACCO Materials Handling Co., Ltd.

2,000

100

0

1,000

1,000

200

2008 2009 2010 2011 (FY)

2,000

3,000

2008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)

Sumitomo (SHI) Demag Plastics
Machinery GmbH

Sumitomo Machinery Corporation ofAmerica

Link-Belt Construction Equipment
CompanyCountry: Germany
Main Products: Plastic Molding Machines

Country: United States
Main Products: Power Transmission Equipment

Country: United States
Main Products: Construction Cranes

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

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

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

8,000

2,500

4,000

1,000

24,00012,000

6,000

2,000

18,0009,000

12,000

6,000
3,000

1,500

4,000
2,000
0

600

2,000

1,000

2008 2009 2010 2011 (FY)

800

3,000

400

500

1,000

200

6,000

0

0

0

0

2008 2009 2010 2011 (FY)2008 2009 2010 2011 (FY)2008 2009 2010 2011 (FY)2008 2009 2010 2011 (FY)02008 2009 2010 2011 (FY)

Sumitomo Heavy Industries Group Environmental Sustainability Report 201226

Relations with Society

Social Contribution Activities
Each division and company in the Sumitomo Heavy Industries Group aims to establish itself in the local
community.
Each employee takes the initiative in planning and implementing activities for contributing to the community.

Biodiversity Measures
The SHI Group is committed to planting trees and greeneryin order to contribute to biodiversity conservation.
Our Tanashi Works is preserving the Musashino Forest,
which occupies approximately 30% of the 41,000-m2
campus. This forest contains over 4,500 trees of 40 or
more species, and 164 of the trees have been designatedprotected trees by Nishi-Tokyo City. Past wildlife habitat
surveys confirmed the presence of considerable wildlife in
the forest, which is a stronghold for the local ecosystem aswell as a precious natural asset for scientific research.
With its abundant greenery, the Tanashi Works has
named a portion of these woods the Forest of Inspirationand opened it to the public as a place where local
communities and corporations can think together about the
future of the earth. Artificial plantings have been avoided sothat visitors can get a feeling of what the original Musashinolandscape was like. Barrier-free walking paths have been
set up with wooden benches to make a place where local
residents can come to relax. In the autumn, nursery school
children come to gather acorns.
The acorns gathered in the forest at the Tanashi Works
are distributed to other works and Group companies for use
in our tree-planting campaigns. Our aim is to make effective
use of the space within the works, expand the green area,and make it an ecologically friendly facility.
We are aiming to expand the green area at all of ourworks. At the Yokosuka Works, we plant a tree every time
we build and deliver a ship.
At the Niihama Factory, we have demolishedbuildings and converted those areas to greenery as partof redevelopment of the campus. Plans call for continuing
expansion of green areas.

Family tour groups planted
2,200 trees with the wish
they would grow into a“thousand-year forest”(Yokosuka Works)

A commemorative tree is planted for every shipdelivered (Yokosuka Works)

27(Tanashi Works)Children collecting acorns at the “Forest of Inspiration”(Tanashi Works)

Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

Rescue Drills

The SHI Group is taking part in traffic safety campaigns
as a member of the local Traffic Safety Association.
In order to heighten the awareness of traffic safety
among Group employees, we also hold lectures inall of our districts, and we request the cooperation oftransportation contractors that carry loads into and out
of our works.
The Nagoya Works and Sumitomo NACCO
Materials Handling Co., Ltd. periodically take on trafficmonitoring duty, and they are actively cooperating with
community traffic safety.
At the Yokosuka Works, Japanese radishes
together with reminders of traffic safety were
distributed to visitors who came by car. The Japaneseradishes were symbols of the slogan, “Root out traffic
accidents completely,” for the year-end traffic accident
prevention campaign conducted by the Taura Traffic
Safety Association of Yokosuka City.
Also at the Yokosuka
Works, we sponsor lessons
in improving motorcycle
driving skills with thecooperation of the local
police department.

The SHI Group conducts rescue drills with theguidance of the fire department.
Last year, the Chiba City Fire Department
designated the Chiba Works as a businessestablishment cooperating in the promotion of firstaid. We sponsored an emergency care and life-savingcourse that was attended by 30 people.
This course provided advanced emergency
response training intended not only for within the works
but also for traffic accidents and other such needs
on neighboring prefectural roads. All the participantsqualified to receive a certificate of completion.
A course in advanced life-saving skills was held at
the Yokosuka Works with guidance from the Yokosuka
Kita Fire Station. Course content included how totransport injured and ill people, casualty management,
clearing foreign matter from airways, infant to adultcardiopulmonary resuscitation, and the use of AED.
At the end of the course, a life-saving relay
session (from preventing cardiopulmonary arrest, toearly recognition and notification, to primary life-saving
measures) was held with both practical and written
tests.
The SHI Group will continue to provide courses
to prepare us to contribute to local communities inthe event of future disasters and other emergency
situations.

A lesson in driving a motorcycle(Yokosuka Works)

救命講習

Distributing leaflets calling for traffic
safety (Yokosuka Works)
Cultivating seedlings
from planted acorns
from the Tanashi
Works (Niihama
Factory)“Root out traffic accidents completely”(Yokosuka Works)

Planting camellias, the flower of Kure
Changing the border of the sidewalk
City, by the roadside on the campus
to a green area
(Nihon Spindle Manufacturing Co., Ltd.) (Shin Nippon Machinery Co., Ltd.)

Emergency care and life-savingcourse (Chiba Works)

Course in advanced life-saving skills(Yokosuka Works)

Providing a Heliport for Air Ambulance Service

Blood Donation

Newly expanded green area (Niihama Factory)

Green curtain (Yokosuka Works)

Traffic Safety Measures

SHI Group collaboration with blood donation drives has
continued over many years, and for our employees,these have become well established as the blood
drives they feel closest to.
In FY2011, a total of 1,000 people throughout theGroup companies donated blood.
The Chiba Works and the Chiba Factory of
Sumitomo (S.H.I) Construction Machinery Co., Ltd.,
received commendations from Chiba Prefecture for
their long years of cooperation on blood drives.
The SHI Group will continue to promote blood
drives to help save people’s precious lives.

Blood donation (Chiba Works)

The Nagoya Works makes an adjoining playing field
available for use as an air ambulance heliport.
We will continue to provide this facility to enable us
to contribute in the event of emergency.

Air ambulance (Nagoya Works playing field)

Sumitomo Heavy Industries Group Environmental Sustainability Report 201228

Relations with Society

Social Contribution Activities
Environmental Classroom Display at Environmental Fair

Cooperation with Welfare Facilities

Cleanup Activities

The Sumitomo Heavy Industries Environment Co., Ltd., placed
an environmental classroom on display at an environmental fairin Minamiashigara City, Kanagawa Prefecture.
The display allowed visitors to observe the organisms that
inhabit clean rivers and polluted rivers, explained differences
between the two, and conveyed the importance of preserving
river environments.
Visitors were also given opportunities to observe rice
paddy-dwelling Branchinella kugenumaensis (a species of fairy
shrimp) and water purifying microorganisms that could only beobserved during the time of the environmental fair, as well as totry out experiments in purifying polluted water using powdered
activated carbon.
We intend to continue these activities in the future to convey
to children the importance of environmental preservation.

The Yokosuka Works provides the Kagamida-En, a
Yokosuka municipal welfare support center, with cut
ends of electrical wire generated during shipbuilding
and empty cans from dormitories and so on.
At the facility, the insulation is stripped off toremove the core wire and aluminum cans are crushed
together in a compactor. The materials are then soldand the proceeds are applied toward facility operating
costs.
The Nagoya Works cooperated with the Akebi-En,
a welfare facility located in Obu City, by regularly
placing cookies and bread baked at the facility on salein the employees’ dining hall.

The SHI Group conducts regular cleanup activities of neighboring areas.
We also take part in cleanup activities organized by local governments andvolunteer groups.
In addition to cleanup activities in the vicinity of the works, in FY2011
our Saijo Factory and the SEN Corporation also participated in the “Refresh
Setouchi” Inland Sea cleanup activities at Takasu Beach in Saijo City, Ehime
Prefecture. Takasu Beach is the only natural sand beach that remains in Saijo
City, and protecting the environment there is seen to be in everyone’s interest.
This campaign, launched in 1993, marked its 20th meeting this year, andit was a major event among the city’s volunteer campaigns.
The Nagoya Works and Sumitomo NACCO Materials Handling are also
participating in the Adopt Program* supervised by Obu City in Aichi Prefecture
Families cleaning up Takasu Beach in Saijo City
while the Niihama Factory is taking part in the Adopt Program in Niihama City.
We are undertaking cleanup activities in their environs through* Adopt Program
these programs, as well.
It is a volunteer campaign in which residents designate a public facility,
We will maintain the SHI Group’s commitment to this local such as a park or a footpath, to take care of on their own responsibility.
They then pick up trash, water the plants, and weed it as if it were theirwork to keep the environment beautiful.
own, so that people will be able to enjoy using that facility.

Cleanup (Niihama Factory)

Overseas Activities
The Philippines
Selling cookies and breadfrom the Akebi-En in Obu

Environmental classroom

Work underway at the Kagamida-En in Yokosuka

Active Participation in Local Community Events
The SHI Group takes active part in local community events.
At the Niihama Factory, we participated in a sports
day in the Ofuki area of Saijo City as part of Ehime
Prefecture’s Support Group Matching Project for
Healthy Village Development. The Ofuki area has a large
elderly population, and the sports days there tended
to be shorthanded. In response to a request from thecommunity, three members went from the SHI Group to
participate.

The weather on the day of the event was poor, withintermittent rain, but it turned out to be a very enjoyable
and meaningful day of exchange with members of thelocal community.

Germany

SHI Designing & Manufacturing, Inc., in the Philippines
has been engaging in social service activities two or threetimes every year since 2009. An executive committee hasorganized badminton meets and bingo games to raise
funds. The company then donates a matching amount to
the executive committee, which is used to support social
service activities.
In 2011, participants took food and clothing to people
who had suffered in that year’s floods. They also visitedelementary schools in the mountains, where they engaged
in cleanup, took part in classes, gave presents of games
and stationery, planted trees, and so on.

Sumitomo (SHI) Demag Plastics Machinery GmbH inGermany held a family day on July 2 and invited employees’
families to visit their plant.
Some 800 or more visitors came on the day of theevent, exceeding expectations. The event was a great
success, and the president received many messages of
thanks from employees.
Japanese resident staff members and their families
also cooperated by setting up a typical Japanese festival
game of fishing for water balloons and putting up Tanabata
summer festival decorations. These were a kind ofamusement and a kind of seasonal observance not foundin Germany, and the other participants greatly enjoyed thiscontact with Japanese culture.

Visiting flood victims

Fun in elementary school classes
Preparing theplaying field
before the event

Tree planting
Costume party

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Sumitomo Heavy Industries Group Environmental Sustainability Report 2012

100-meter dash by age groupClassroom scene

Scenes from the family day

Sumitomo Heavy Industries Group Environmental Sustainability Report 201230