Corporate Outline of KOKUYO Co., Ltd.
(as of December 31, 2008)
Established: October 2, 1905

■Net Sales (consolidated)■Number of Employees(¥100 million)(consolidated)

3,395

3,500

3,261

6,000

5,505

3,039

Capital: ¥15.8 billion

2,835

3,000

4,747

5,000

2,528

Head office: 6-1-1 Oimazato-Minami, Higashinari-ku,
Osaka 537-8686, Japan■Net Sales by Business Segment

4,949Store-Related 5.8%(¥19.0 billion)

5,037

4,206

2,500
4,000
2,000

President: Akihiro Kuroda

Net Sales¥326.1billion

3,000
1,500

No. of consolidated subsidiaries: 24

2,000

1,000

1,000

500
0

0

Mar. ’05 Mar. ’06 Mar. ’07 Dec. ’07 Dec. ’08

Mar. ’05 Mar. ’06 Mar. ’07 Dec. ’07 Dec. ’08(fiscal year)(fiscal year)*

Furniture
42.4%(¥138.2 billion)

Stationery
51.8%(¥168.9 billion)* FY 2007 is an irregular, 9-month fiscal year due to a change offiscal year-end from March 31 to December 31.

KOKUYO Group Operational Framework
The KOKUYO Group and its Stakeholders■Stationery Operations
Shareholders

Localcommunity

Employees

Stationery
operations

Furnitureoperations

Overseas
operations

Store
operations
Inspiration, Efficiency and Comfort

Customersandconsumers

Mail-orderofficesupplyoperations

Customer
front
companies

Interior
design andinstallation
operations

Media(1 consolidated subsidiary)Centered on KOKUYO S&T Co., Ltd., these
operations consist of the manufacture,procurement and sale of files, notebooks andother paper products, stationery, PC-related
products, and child education materials, aswell as solutions in areas such as document
management and disaster preparedness.

KOKUYO Engineering & Technology Co., Ltd.,
performs a wide range of interior design, fromlayout design to partitioning and flooring, as
well as design and installation of facilities
such as electrical wiring, telephone and LAN
systems, climate control systems, andwaterworks and wastewater systems.

■Furniture Operations■Overseas Operations(4 consolidated subsidiaries)(5 consolidated subsidiaries)

KOKUYO Furniture Co., Ltd., and other Group
companies produce, supply and sell officefurniture.

KOKUYO International Co., Ltd., and otherGroup companies implement KOKUYO Group
operations in China, Southeast Asia, India
and other overseas markets.

■Store Operations (1 consolidated subsidiary)
KOKUYO Store Creation Co., Ltd., produces
and sells store fittings. It also provides a wide
range of solutions in store operations,
including store design and design execution.
■Mail-order Office Supply Operations(2 consolidated subsidiaries)

Suppliers
andpartnercompanies

Financial
institutions

Global environment

01■Interior Design and Installation Operations(5 consolidated subsidiaries)

KAUNET Co., Ltd., and one other company
conduct mail-order sales of stationery, officesupplies, and daily necessities required by
offices and stores.

■Customer Front Companies(4 consolidated subsidiaries/6 non-consolidated subsidiaries)

KOKUYO Office System Co., Ltd., delivers
office furniture, office space proposals andsolutions to major corporate customers in theprincipal urban areas of Japan. KOKUYO
Marketing Co., Ltd., and eight other regionallybased manufacturer sales companies
conduct wholesale operations rooted in eachregion as well as sales of KOKUYO Group
products and other products.

Becoming a Company That Contributes to a Sustainable Society in Many Ways
KOKUYO Co., Ltd., was founded in1905 as a manufacturer of covers of wacho(Japanese paper notebooks) under the
trade name Kuroda Hyoshiten. Though few
paid attention to the notebook coverbusiness, which was regarded as athankless, troublesome, and gratuitousbusiness, the company’s founder, Zentaro
Kuroda, threw himself into the enterpriseheart and soul. Through his relentlessefforts, the business began to produce newvalue and developed into KOKUYO, a
company with unique value and a fresh rolein society. Since then, all of us in the
KOKUYO Group have made the founder’sindomitable spirit our own.
The thoughts of the founder arepreserved today in the corporate
philosophy of the KOKUYO Group:“Contributing to society by providing
superior products.”
Our approach toachieving this goal is expressed in ourmanagement creed, the meaning of whichis instilled in every KOKUYO employee.
For the 104 years following thecompany’s foundation, the KOKUYO Grouphas followed a consistent management
vision: “Always Innovating For Your
Knowledge.” We are constantly adapting toongoing social change, providing value forthe knowledge work of all our customers
through inspiration, efficiency and comfort.
In this report, we introduce you to thescope and variety of the KOKUYO Group’s
corporate social responsibility (CSR)
activities. Each and every one of these
activities reflects the corporate DNA towhich the KOKUYO Group is heir,
reinforcing the trust and confidence weenjoy from our many supporters andstakeholders.

CONTENTS
Corporate Philosophy

Contributing to Society by Providing Superior Products

1
2Overview of the KOKUYO Group
Philosophy of the KOKUYO Group/Table of Contents

3 Executive Dialogue

Management Creed

Awareness Spurs
Environmental Management

When born into this world, a child has nothing to call its own.

Akihiro Kuroda, president of KOKUYO Co., Ltd.,
speaks with Shigeo Oyagi, president of Teijin Ltd.

Our bodies, minds and spirits grow and are nourished by the love ofour parents and families, the guidance and discipline of ourteachers, and the encouragement of society as a whole.
We grow and mature and adopt vocations suitable to ourselves andthe education instilled in us.
These vocations must be pursued with utmost diligence by gaining
the trust of colleagues, clients and communities around us.
The only way to secure this trust is to act with absolute sincerity inevery action and endeavor we undertake.
In this way, our endeavors succeed in and of themselves, and we are
happy in our vocations.
Sincerity not in words but in action.
This is the KOKUYO creed.

Special Feature

Tackling global warming
7 Initiatives at the office
The new Eco-office concept aims to achieve bothcustomer-focused production and a 41.5% reduction
in CO2 emissions

9 Logistical initiatives
IT was used to optimize vehicle dispatch, eliminating
51 t of CO2 emissions

10 Preservation of forest
Seeing results of our initiatives in environmental andeconomic aspects

Special Feature

Promoting environmentally friendly products

CSR Management
15 The KOKUYO Group and CSR
16 Corporate Governance

Environmental Report
17 Relationship Between Business Activities andthe Environment
19 Environmental Vision/Medium- to Long-term
Environmental Action Plans and Results
21 Measures against Global Warming
22 Resource Conservation and Recycling
Measures
23 Dealing with Hazardous Substances
24 Providing Eco-Products

Social Responsibility Report
25 Responsibilities to Shareholders

Data
26 CSR Accounting

11 Initiatives at the factory
Thorough measures against VOCs and other initiatives
remove the Eco X mark from 800 products

12 Initiatives in the development sector
20.6% reduction in plastics use results in a 3-meterincrease in tape length

13 Toward zero Eco X marks
Presidents of KOKUYO Group manufacturers speak
about the Eco X program.

14 CO2 labeling

Brand
Message

Corporate
VisionWorking with a METI study group to institute systems
and trials■Scope of the CSR Report【Period covered】
Data consists of results from January to December 2008. Activities described include those undertaken during
and before 2007, and those from January to March 2009.

Inspiration
Efficiency
ComfortWe constantly adapt tochanges in society, reworking
our activities so they serve theneeds of the communities inwhich we do business.

【Organizations covered】
In principle, KOKUYO Co., Ltd., includes its 25 consolidated subsidiaries; however, the Environmental Reportcovers only KOKUYO Co., Ltd., and the consolidated and non-consolidated subsidiaries listed below. In cases
where the scope of organizations covered differs, individual notes are provided.
<Subsidiaries covered in the Environmental Report>
KOKUYO S&T, KOKUYO Furniture, KOKUYO Office System, KAUNET, KOKUYO Marketing, KOKUYO
Chugoku Sales, KOKUYO Kyushu Sales, KOKUYO Engineering & Technology, KOKUYO Store Creation,
KOKUYO International, KOKUYO Business Service, Net KOKUYO, KOKUYO Supply Logistics, KOKUYO
Vietnam, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO-IK (Thailand), Tokyo OSL, Kinki OSL, KTL,KOKUYO (Malaysia), KOKUYO Logitem, KOKUYO Finance, KOKUYO K Heart* Tokyo OSL and Kinki OSL were merged with KOKUYO Logistics on July 1, 2008.
* Net KOKUYO was merged with KAUNET on January 1, 2009.

02

Awareness Spurs
Environmental Management
Protecting the environment of one’s own company is taken for granted
today. Enterprises have no option but to explore what they can do tocontribute to environmental improvement through their business. Shigeo
Oyagi, president and CEO of TEIJIN Ltd., and Akihiro Kuroda, president of
KOKUYO Co., Ltd., are in full agreement on these points. The two businessleaders discussed this at Eco Live Office Shinagawa, KOKUYO’s
experimental, environment-friendly office, which was overhauled in fall 2008.

03

Shigeo Oyagi

Akihiro Kuroda

President and CEO
TEIJIN Ltd.

President
KOKUYO Co., Ltd.

Kuroda: KOKUYO is a processor and manufacturer, and although

Preserving the environment brings about
new awareness
Kuroda: Mr. Oyagi, thank you very much for joining me today. At
KOKUYO we use your PLA products* every day in our officechairs and other products. I’m extremely interested in your ideas
about going “post-petroleum.”
Oyagi: Rayon was the start of our operations. In 1918, the year
after your company decided on the trade name “KOKUYO,” aJapanese chemist set his sights on producing rayon in Japan,
which was then produced only in Europe. Working with Suzuki
Shoten, a major trading company at the time, he launched
Teikoku Jinzo Kenshi K.K., the forerunner to Teijin Corporation, in
Yonezawa. Since that time, our focus has remained on chemical
technology, with constant expansion in the fields of synthetic
fibers, films, plastics and medical supplies.
I believe Teijin was an early mover in developing an awareness ofenvironmental issues. In 1992 we established our own Global
Environmental Charter, resolving to work as a company for theprotection of the environment. In 2007, we proclaimed an
Environmental Management Declaration that confirmed theenvironment as one of the pillars of our operations. The
Declaration consisted of three pillars: environmental preservation
through efforts toward reduced CO2 emissions and zero
emissions; environmental design, which builds reductions inenvironmental impact into product and process designs; andadvancing environmental business with the aim of protecting theenvironment as its prime focus. Our “post-petroleum” initiative isan indispensable concept in our development of environmentallyfriendly design and environmental business. Methods tochemically recycle fibers and create plant-based products thatuse no petroleum whatsoever are core initiatives.

* Polylactic acid: a biomass polymer polymerized from lactic acid made byfermenting the starch in corn (maize) and other plants.

real surprise to me.

we are not as well-versed in chemical technology as Teijin, we
produce our goods with careful attention to detail. For example,

Kuroda: A lot of people have told us that. Within three to five

we eschew the use of virgin materials, create no material waste inyears, consumers will probably begin to assume all products

the course of our production activities, and produce our goods

available to them to be strictly environment-friendly as a matter ofusing a single material. Interestingly, we’ve found that ourcourse. All other products will be removed from the market. So,

relentless insistence on environmentally friendly products has

environmental measures must be implemented in all products

captured the attention of customers, who see added value in theimmediately. We have no intention of resting on our laurels,

environmental performance of our goods.

because we are a company that has more environmentally friendly

Recently, we introduced all-paper files consisting completely

products than other companies. We refuse to accept excuses forof materials made of paper, including covers and binding parts.

not dealing with environmental issues, such as “the right materials

These all-paper products obviated the need to separate different

aren’t available,” “our factories aren’t properly equipped,” and sotypes of waste, as required by law in Japan. One customer in theon. Otherwise, we’ll be left behind before we know it.

financial sector recently told me, “These products do much more

The aim of the Eco X mark program is not only to separate

than just eliminate the time-consuming task of separating metal

environmentally friendly products from products that are not, but

components from the documents we throw out. By freeing ouralso to raise the awareness of everyone who uses our products. It’s

employees from the drudgery of separating garbage, we free

no use waiting for environmentally positive materials to appear inthem to do more value-added work. The security factor of single-

front of us. We have to seek out such materials ourselves, taking thematerial products is also higher.” Many of the documents handledinitiative to gather information around the world. Failure to do so

by financial institutions contain sensitive personal information, so

endangers the very survival of the Company. We want ourthey have to be thoroughly separated for proper disposal.

environmental awareness to be infectious, not just to our employees
but to all partner factories and producers, so they too will think ofOyagi: As we incorporate environmental protection into ourenvironmental response as a matter of deep importance.

operations in a variety of ways, we increasingly find that theenvironmental measures themselves add value. By thoroughly
pursuing resource-saving operations and recycling, we are
gaining a new awareness of other issues not directly related toenvironmental concerns, such as security and safety.

Environmental initiatives to change people’s
perceptions and change society at large
Oyagi: You touched on the importance of being thorough. But
KOKUYO’s Eco X (“Non Eco”) mark program to identify KOKUYO
products that are not completely environmentally friendly was a04

Oyagi: To tell the truth, while I was surprised at first, I also had mywhere people are saying “most things can wait more.” I’m getting

doubts. How is this going to play out in practice? I wondered. But

a sense of the speed with which you are making progress atafter speaking with you about it, I understand now. As President

Teijin, and it inspires me to step on the gas with our own work at

Barack Obama says, it’s about change. KOKUYO is an initiator,

KOKUYO.

Using awareness to spur enterprise growth
Kuroda: You mentioned a moment ago that the environment

an agent of change in society. As a material producer, we at Teijincreates a new awareness. I agree completely. Today’s companies

have to deal with a number of challenges, but I think that society

have to think hard about how to continue growing while reducing

is changing and must change.

CO2 emissions, which means reducing the consumption of

One of the directions we are determined to pursue at Teijinenergy. The only way to get there is to think deeply about how to

is “green chemicals.” We believe it is time to rework the oldwork more efficiently and boost our creativity—that is, we have tophraseensuredevelop our awareness. We set out thinking only about theenvironmental performance from the cradle back to the cradle

environment, but somewhere along the way we encounteredagain, as it were. Instead of discarding products, we adopt a

issues that struck at the very heart of our corporate management.

business model that always supports recycling, constructing aThis office is completed fitted with LED lighting, the latest

recycling-based, post-petroleum business covering our entire

climate-control systems and other environment-friendly features.

product line from textiles to films and plastics. We have alreadyMoreover,implemented a recycling system called “Eco-circle,” in which weawareness in their work habits. When customers see our office,chemically break down used polyester products such asthat same awareness touches them, too.

“fromcradletograve”—we

have

to

our

peopleconstantly

incorporate

ecologicalclothing and return them to petroleum-based raw material form

At our factories and distribution facilities, it’s understood thatin order to create new textiles. Because collecting usedthorough environmental response equals reduction of waste,

products would be hard for us to do on our own, we work withwhich equals reduction of costs. Employees are tackling theseapparel and sports gear manufacturers to broaden the scope ofproblems with a high level of awareness, and they know we canour recycling activities. Today we work with a network of moresustain these efforts because such efforts directly reduce costs.

than 110 companies; one product we use is KOKUYO’s Biofront,

For the people working in our offices, however, the situation is

your highly heat-resistant bio-plastic. For us, using materials ofdifferent. In their case, the shift to environmentally friendly work

biological origin is the ticket to post-petroleum operations. At

procedures does not necessarily increase their individual

Teijin, we are carefully considering moving to an all-biological-

achievements or improve their performance reviews, so efforts

material framework.

tend to be limited to remembering to turn out the lights and soforth. You can see the extent of the problem from a recent report

05

Kuroda: Mr. Oyagi, given how deeply Teijin’s products andstating that Japan’s offices emit 40% more CO2 overall than they

operations reach into every aspect of the daily lives of consumers

did in 1990. As a company in the business of creating offices, wethroughout Japan and around the world, your words bring homehave to find a tangible form for the awareness we discussed

to me the clarity of your conviction that environmental excellence

earlier. That’s why we embarked on our experimental Eco-office

is an absolute must, and that green chemicals are the right way toprogram as a means of enhancing creativity and efficiency in thego. Indeed, at our Company there are still pockets of resistance,

office.

Awareness Spurs Environmental Management

Oyagi: I visit the offices of a lot of companies, but I’ve never seen

initiative. Every time I come into this office, I realize how valuable

an office as completely devoted to environmental performance asenvironmental issues are as an agent of change.

this one. And it’s not mere window dressing—it’s an integral partof a deep commitment.

“Some things must not change. Others
must continue to change.”
Oyagi: I’ve seen your Management Covenant. Your perspective
has always been to practice “management from the heart,” but

Kuroda: This office is a kind of laboratory, where we practiceafter speaking with you today I have an even stronger impression

environmentally friendly ways of working and explore newof what that means. By valuing the input of your employees while

avenues for the growth of KOKUYO. Building the office was notinsisting on strict implementation of decisions made, you’rethe end of the project but the beginning. We want to show ourachieving a transformation that I find very interesting.

customers how employees’ perspectives, work habits and work
processes change when they work at this office.

One of our managers at Teijin once compared the process ofchange in corporations, a bit unflatteringly I suppose, to the life

I come here fairly frequently. One cold day in January, I came

cycles of cicadas. Industries, of course, have their own life cycles.

across an employee working in the garden office, outside the

In good times nobody wants to change the way they do things.

building. I was worried she’d catch cold, so I called out, “You’re

But just as cicadas cast off their skins, so we have to transform

not overdoing it, I hope!” She replied, “Don’t worry, I felt likeourselves and move on to new things. At the same time we havecoming out here!” She had moved outside to get her work done

to preserve our corporate DNA. In our case that DNA consists ofmore efficiently than working inside the office.

science and innovation. Everything else is open to change, andBy going outside in the cold, she had no one to interrupt her.

we’re committed to driving forward.

At the same time, she focused on finishing as much work as she
could before the cold forced her to go back indoors. This may

Kuroda: It’s just as you say. At KOKUYO, we have a long history,

seem like an almost trivial incident, but when I saw this employee

yet our target of becoming a “front-running environmental

notice conditions and find a way to do her work more efficiently

company” is only now coming to fruition. We’ve only just taken

through her own initiative, I was really glad we’d overhauled ourthe first steps forward. Now we must focus on delivering theoffice.

value customers expect, based on this environmental stance.

Oyagi: People’s attitudes can change even before seniorcan continue this dialogue. Thank you very much for joining me

management realizes it. Having such a process in place is antoday.

Mr. Oyagi, I’ve learned a lot talking with you, and I hope weincredible strength for your company.
Kuroda: It’s exactly what I hoped would happen. Now ourmanagers expect individual employees to identify issues andseek out their own solutions to them. We’re changing ourorganization and evaluation procedures to reflect that new reality.
The reorganization of our office had the same value as a strategic

06

Tackling global warming

Eco + creativity = change in awarenessPositive environmental approachTurning left from the south exit of Shinagawa Station in Tokyo’s
Minato Ward, one immediately sees a building with the KOKUYO
logo. This is the KOKUYO Shinagawa office, the nerve center ofthe KOKUYO Group in Tokyo. In November 2008, the Company
opened Eco Live Office Shinagawa to the general public. Locatedon the top floor of KOKUYO’s five-story showroom building andadjoining the eleven-story KOKUYO office building, Eco Live
Office Shinagawa has attracted many visitors.
Three KOKUYO Group companies occupy the new office:principal occupant KOKUYO Furniture, which manufactures officefurniture; KOKUYO Office System, which provides office solutions
to major companies; and RDI Center, the KOKUYO Group’s main
research and development organization. The new office's primaryobjective is to demonstrate new ways of working in a world wherecompanies must raise environmental awareness by slashing CO2
emissions while boosting the speed and quality of production.
KOKUYO hopes this showcase office will revolutionize attitudes
as well as work practices.

“Many environmental initiatives involve negatives, like
reducing energy consumption, reducing garbage, and so forth. At
KOKUYO, we aim to make the Eco-office project our own by
accentuating the positive.” So says Takashi Ueda, director of the
RDI Center, who was involved in the Eco Live Office Shinagawa
plan from the outset. There remains plenty of reducing to do: even
as CO2 emissions declined in production sectors nationwide,
emissions by office sectors grew 40% from 1990 to the present.
Many companies in Japan have approached and enforced a seriesof energy-reducing activities such as turning off their electricity or
turning air-conditioning temperature settings a little higher insummer. Yet CO2 emissions continued to rise. KOKUYO decided
that a proactive, positive approach was in order.
The answer Ueda and the other project members devised
was to apply environmental approaches in combination withmeasures to enhance intellectual productivity, which is one of theoffice’s original functions. This innovative approach would open
new possibilities for the Eco-office concept.
Large-scale renovations were carried out to install climate
control systems with motion sensors, and LED lights and natural
air-circulation systems were installed throughout the floor. At thesame time as these thorough equipment-related measures weretaken, features were implemented to support the four phases ofcreative office work: inspiration, idea generation, expression intangible form, and dissemination. All such measures took into
account the changes of the passing seasons. By supporting work
practices that welcome the natural environment into the office asmuch as possible, we have been challenging ourselves to reduce
CO2 emissions while bolstering productivity and creativity,
revolutionizing the work practices of both individuals and theorganization.
For example, employees working at Eco Live Office
Shinagawa accepted a common target of spending 90 days ayear working in the garden office. Not only in spring and autumn
but also on mild days in the winter and summer, employees takethe initiative to work amid the refreshing breeze and natural lightof the outdoor space. The experience quickly reoriented
employee awareness while sharpening creativity. “The right work
habits for the right season” soon became an ingrained habit.

A flagship office befitting a front-runningenvironmental company

The Eco-office completed at KOKUYO’s Shinagawa office inNovember 2008 is positioned as “an office that supports
enterprise growth with environmental activities as its driving
force.” An experiment in new office buildings for the age of global
warming has begun.

(From left)

Takashi Ueda

Kazunobu Hoshino Masako Teramoto

Director,
RDI Center
KOKUYO Co., Ltd.

General Manager,
Design Promotion Division
KOKUYO Furniture Co., Ltd.

General Manager,
Marketing Division
KOKUYO Furniture Co., Ltd.

“Businesses that fail to be concerned with the environment
can no longer survive.” This idea lies at the heart of the sloganthat unites the entire KOKUYO Group: “A front-runningenvironmental company.” By “front-running environmental
company,” we mean much more than simply a company thatconsiders only the environment in its operations. The products
and services we provide to our customers, and all our businessactivities, utilize novel, environmentally friendly ideas in a uniqueway, and are conducted in a timely manner.
In 2007 KOKUYO implemented the Eco X mark program,aiming to make every KOKUYO-brand product environmentallyfriendly within three years. The following year, each Group
company began an additional effort to make its office spaces
environmentally friendly as well. Our company building in
Shinagawa, where relatively few building restrictions apply, plays
the role of a proving ground where we can try out new ideas
freely.
a Related information p. 13 and p. 24 (Eco X mark)07

Initiatives at the officeRaising efficiency by making processes
visibleIn mid-February 2009, the office’s work-lab area ran a contest
for new product ideas to be launched in the autumn. In the past,ideas for the initial planning phases originated from thedevelopment sector of KOKUYO Furniture. By putting Eco Live
Office Shinagawa to work in this capacity, KOKUYO was able to
make the development process visible to a wider circle of people.
“Making individual roles more clear has enhanced specializationin each field,” observes Kazunobu Hoshino, general manager ofthe Design Promotion Division at KOKUYO Furniture. “At thesame time, it has lowered visibility with regard to others’ work in
the past. By using the new office to make processes more visible,
we are getting good ideas with more polish and reflecting thewishes of a wider range of customers. On top of that, when
everybody understands the beginning, real improvements inefficiency result.” From development through production, sales
promotion and operations, KOKUYO does not merely explain
each process, but openly canvasses everyone’s opinions from theoutset, exploring the type of customer targeted, intentions inlaunching the product, and so on. The result is greater
understanding and a stronger feeling of consensus.

say ‘do this, do that.’ Instead, they encourage employees to
notice things for themselves and think about them. That’s the way
to achieve meaningful change in a sustainable fashion. It’s just aslightly different way of saying things, yet it’s proved popular with
our employees, and even with our customers.” At Eco Live Office
Shinagawa we will strive diligently in FY 2009 to reduce CO2
emissions, achieving its target of 56 t per year (a 41.5% reduction
from before the remodeling). At the same time, we will to try
to reflect the effects of changes in work processes for
manufacturing, our core activity.

Continuing is easy when you are motivated
Other than enhancing the quality and speed of manufacturing, which is KOKUYO’s core activity, another priority is
described in messages posted throughout Eco Live Office
Shinagawa. Visitors to the office never fail to stop in their tracks
when they see them. One message is, “Using the elevator too
often is unhealthy.” Another says, “Going home at the right time
is a job well done.” Says Masako Teramoto, general manager ofthe Marketing Division at KOKUYO Furniture, “Our signs don’t

4

2
Messages around the officeal n
tic tatio
c
a
n
Pr me
ple
im

3
5

■CO2 reduction targets for Eco Live Office Shinagawa
150
(t)
120

Reductions via
facilities
Reductions
via work practices

90
60

135 t

ng
ari eashS f id
o

1

41.5%

ge
an ws
h
c
Ex f vieoProjection
79 t

30
0

Reduction of
56 t■Work styles appropriate for each work type and season
Before remodeling(Annual)After remodeling(Annual)2 Library court

3 Project space

Eco Live Office Shinagawa

4 Work lab

5 Studio< Breakdown of 56 t reduction >Reductions via facilities

Reductions via work practices

Natural ventilation……………5 t
Energy-saving lighting (LED)………………………………30 t
Energy-saving climate control
and transport ………………14 t
Rooftop greenery ……………1 t

・Working in the garden office 90
days a year
・Time management, reduction inbusiness trips
・Taking the stairs instead of theelevator when arriving at andleaving work, and other such habits…………………………………6 t

1 Garden office
対策後

Building understanding

Creating ideas

Putting ideas into tangible form

Telling the world08

Tackling global warming
Logistical initiatives
Optimized dispatch of vehicles improves
the efficiency of their loading space.

Delivery trucks that take load efficiency into accountIT was used to optimize vehicle
dispatch, eliminating 51 t of CO2
emissions.

KOKUYO Logitem is in charge of logistics in office furniture.
One of its responsibilities is to move furniture from four major
warehouses in the Chubu region to 24 local warehouses throughout
Japan. In 2008 the company established a Central Vehicle Dispatch
Office to achieve more efficient distribution. Its greatest objective isto reduce environmental impact and cost associated with
distribution and shipping while continuing to serve the constantly
shifting needs of the market.
“The key to efficient shipping is moving pallets aroundefficiently, using trucks of the right size, while minimizing distancetraveled and the number of trips,” explains Takayuki Takeda,
general manager of the Central Vehicle Dispatch Office, Operations
Division. It’s not as easy as it sounds, however, when loadquantities, sizes and shapes come in every imaginable combination.
The key to accomplishing this task consists of “loadcombination” and “load relay.” In “load combination,” trucks move
between warehouses A, B and C before heading to theirdestinations, so loads can be combined. In “load relay,” products inwarehouse A are sent separately to warehouse B in advance, sothey can be loaded onto a separate truck headed from warehouse
B to warehouse C before being taken to their destination. The
company is working hard to deploy this technique to achieve
efficiency gains in logistical processes.

Incorporating veteran know-how in IT
For KOKUYO Logitem, which delivers office furniture tocustomers, raising efficiency in logistics is proving a decisive
weapon in the fight against global warming. Mie Distribution
Center, the Group’s logistical hub for the Chubu region, issolving these problems using IT.

Supporting the work of the Central Vehicle Dispatch Office is aunique automatic dispatch system, introduced in October 2008.
The system incorporates expertise accumulated in front-line
operations. For example, experienced drivers know that stability is■Cumulative distances traveled by type of vehicle

378 trips

After

Three months after the launch of the new logistical system,
Takeda calculated distance traveled by type of vehicle from thenumber of trips made. The graph below illustrates the results. The
number of trips by 4 t truck decreased by 201 from before thesystem was implemented*1, whereas the number of 10 t truck tripsrose by 6. Overall, the shift from 4 t trucks to the more efficient 10 ttrucks reduced total distance traveled by 78,063 km, slashing
51.5 t of CO2 emissions.*2
Aside from the environmental benefits, these improvements
dramatically reduced delivery-planning time. Processes of placing
orders with shipping companies and sending instructions towarehouses became more efficient, and errors were reduced.
“Even with just three months’ results to go by, results havebasically met expectations,” explains Takeda. “As we broaden thescope of the program, I expect to see further benefits.”*1. Number of trips dispatched under the old system, based on actual volumes.
*2. Calculated based on fuel methods. Fuel costs are calculated by determining the amountof energy used by shipping contractors to ship the goods.
Fuel cost for 4 t trucks (maximum load: 2,000-4,000kg): 3.79 km/L
Fuel cost for 10 t trucks (maximum load: 8,000-10,000kg): 2.89 km/L
Coefficient for diesel: 2.624

Difference in distance driven
Diesel equivalent

127,421 km

CO2 equivalent

10 t trucks

352 trips

Before163,449 km

358 trips

After
0

09

217,394 km

579 trips

BeforeGeneral Manager, Central Vehicle Dispatch Office
Operations Division
KOKUYO Logitem Co., Ltd.

Shifting from 4 t trucks to 10 t trucks(October to December 2008)

4 t trucks

Takayuki Takeda

improved if heavier loads are placed on the driver’s side; heavyloads should thus be collected first and placed accordingly. Also,
the volume of loads that can be loaded can be increased or
decreased by changing the configuration in which they are placed.
“The most important point in making the system easy to use
was how to implement such know-how that is unlikely to fit in the
IT systems,” reflects Takeda.
Currently only 30% of the trucks leaving four warehouses aredispatched through this system. Within the 2009 fiscal year,
however, the number of warehouses is expected to be increased to
five, and uptake is expected to rise to 100%.

175,359 km
50

100

150

200 (Thousands of km)

4 t trucks

10 t trucks–89,973 km–23,740 L–62.3 t+11,910 km+4,121 L+10.8 tNote: The logistical system for which the Central Vehicle Dispatch Office is responsible also
includes shipments to Sapporo via train. Unlike for trucks, KOKUYO is unable to calculate
CO2 emissions for these shipments using the fuel-cost method, so CO2 from train shipments
is omitted from the calculations. Distance shipped by train due to operation of the Central
Vehicle Dispatch Office declined from 90 trips (129,958 km) to 68 trips (98,696 km), basedon 5 t containers, contributing to a decrease in CO2 emissions.

Tackling global warming
Preservation of forests

Promoting forest thinning for theregeneration of planted forests

Seeing results of our initiatives inenvironmental and economic
aspects

Approximately 40% of the forests in Japan were planted byhuman hands. Many of these planted forests have not been
sufficiently thinned due to decline in the domestic forestry industry,and growth is getting denser. This rising density restricts the growthof individual trees, making harvesting uneconomical and creatingother problems, such as choking off growth of smaller plants andbushes, degrading moisture retention, and loss of ecosystems.
To tackle these problems, in October 2006 KOKUYO launched
the KOKUYO Shimanto Yui no Mori Project in western Kochi
Prefecture. The purpose of this project is to regenerate forests bythinning planted stands of cypress and cedar. The project isrejuvenating the forests’ ecological functions of absorbing CO2,
supporting ecosystems, and cleaning rivers and streams. In
addition, the project aims to foster healthy circulation in bothbusiness and the environment by using the thinned wood to create
innovative products. Thanks to the generous assistance of partners
such as the Forestry Union of Taisho Town, with which KOKUYO
had a business relationship regarding thinned-wood furnitureproduction, Shimanto Prefectural High School, private citizens in
the region, and Tsukuba University Graduate School, in 2008 theproject was carried out over an area of 1,074 ha, thinning acumulative total of 228 ha.

Prefectural certification as a forest thatabsorbs 758 tons of CO2
The KOKUYO Shimanto Yui no Mori Project aims for healthy
circulation in both the environment and economy, using forest
thinning to protect forests while developing innovative
products. Now in its third year, the project is bearing fruit withsuch results as certification for CO2 absorption.

(Front row, the second from the left)

Shinichi Saito
CSR Division
KOKUYO Co., Ltd.

In July 2008, based on thinning results from the previous fiscal
year, Yui no Mori was certified by Kochi Prefecture as a “CO2absorbing forest” capable of absorbing 758t*1 of CO2. Thiscertificate was based on an agreement concluded in 2007 on“operations to create a jointly managed forest with anenvironmentally progressive private enterprise.” The prefecture
calculated CO2 absorption according to IPCC*2 guidelines,
obtaining confirmation from a panel of third-party experts on
climate change and forests. According to Saito of the CSR
Division, which is in charge of Yui no Mori, “this official certificationis meaningful as a visualization of the results of forest
management, namely the amount of CO2 absorption. We plan to
use the certified figure Group-wide.”Yui no Mori is certified by the Forest Stewardship Council(FSC), vouchsafing that its forest-management practices areappropriate. Forest regeneration is also signified by the results ofecosystem monitoring, which was undertaken according to FSC
guidelines. Thanks to forest thinning, sunlight now reaches theforest floor, leading to an increase of the number of plant species
from 52 to 65 (according to a September 2008 survey). Gradualthough it may be, change for the better is definitely occurring in Yui
no Mori in its third year.

A source of materials and base for training
In a way, the cypresses thinned from Yui no Mori have also
been granted a new life. At local workshops, this wood is turned
into office products and furniture, to be offered for sale on
KAUNET, the Group’s mail-order company, under the Yui no Moribrand. Moreover, beginning December 2008, the furniture on theexecutive floor of the KOKUYO Shinagawa office was completely
replaced with fragrant Yui no Mori cypress furniture.
We have also begun using Yui no Mori as a forum for personnel
training. This “full-fledged training program certification” is now
available to employees with four years’ service who meet certain
conditions. Through activities such as participation in cleaning
activities, planting chestnut seedlings, and drafting reports on plantsurveys, participants are expected to gain awareness andknowledge of environmental issues.
The Yui no Mori Project has helped preserve forests, enhanced
regional exchange, helped to restrain global warming and provided
an avenue for personnel and product development. KOKUYO
expects this project to continue to add value from a widening
range of perspectives.
Notes*1. Formula for calculating CO2 absorption (according to the Kochi Prefecture website):
Absorption per hectare (t-CO2/year)= cumulative increase × expansion coefficient × capacity density × carbon inclusion
rate × CO2 calculation coefficient
Cumulative increase = Annual forest growth (m3) per hectare (trunk growth only)
Expansion coefficient = Coefficient for adding branch and root growth to the figure for
growth (trunk growth only)
Capacity density = Coefficient for converting growth (cubic) into dry weight
Carbon inclusion rate = Ratio of carbon per unit of dry weightCO2 calculation coefficient = Coefficient for converting the calculated carbon volume
into CO2 volume*2. Intergovernmental Panel on Climate Change (IPCC)

10

Promoting environmentally friendly products
Initiatives at the factory

Aiming for zero Eco X products within one
year
In December 2007, KOKUYO announced its “Zero Eco X
Marks Declaration” to the Group and to the world. The Group set
targets for product development and design in each sector,
marking the beginning of a fresh and difficult challenge. Mie Plant,a core production facility of KOKUYO Furniture, was especiallyambitious, proclaiming complete elimination of products marked
with the Eco X mark by the end of the 2008 fiscal year.
Mie Plant’s vision is “manufacturing that is sound andsensible.” The Plant has already implemented an impressive listof environmental measures, including the complete elimination of
toluene and the switch to powder-based paints. Thanks to these
efforts, the factory has reduced its list of Eco X-marked products
to about 800 out of a total lineup of over 8,000 products.* All ofthese products are essential, however, and cannot simply beremoved from the lineup. For Mie Plant, the moment of truth has
arrived.
aRelated information p. 24 (Eco X mark)

Keeping in step with partner factories“We’re going to reduce the number of Eco X products to zero by
the end of the fiscal year.” To achieve this target, set by the factory
itself, KOKUYO Furniture’s Mie Plant worked with over 200 partner
production facilities to take firm action against volatile organic
chemicals (VOCs). In so doing, the Plant has accelerated its efforts
to reduce products marked with the Eco X mark.

(From left)

Mitsuhiro Kubo

Hiroyuki Kaneko

Fumio Koga

Product Design GroupMie Factory
KOKUYO Furniture Co., Ltd.

Product Design Group

Product Design GroupAt the time, the majority of products that still bore the Eco X
mark were produced by a network of 200 partner factories. To
obtain their understanding about environmentally friendly
products, Hiroyuki Kaneko of the Product Design Group visited
each of these partner factories. Time and again he explained how
a proactive stance on the environment meant added value for
their products. As it happened, the global economy began toslow down at this time. Some objected, asking how KOKUYO
could expect to sell such products, given the added cost ofenvironmental compliance. However, the KOKUYO Group’s
resolution to affix the Eco X mark to its own brand products,
market trends showing a desire for more environment-friendly
offerings, and Mie Plant’s sheer determination to overcome all
hurdles, convinced partner factories. By summer, the list of target
products was complete. With even stricter Eco X standards ontheir way, Mie Plant and partner factories began to operate in
step.

Measures against VOCs and use ofrecycled materials proved to be the key
Mie Plant identified two key points in removing the Eco X
mark from partner factories’ production processes. The firstconsisted of measures against formaldehyde and other VOCs
used in their wooden materials. The second was to boost theratio of recycled plastics used. Kaneko’s team recommended theuse of F☆☆☆☆ adhesives and recycled plastics, which were notsubject to regulation under the Construction Standards Law, andbegan finding solutions.
With Fumio Koga and Mitsuhiro Kubo of the Product DesignGroup serving as point men, prototypes began to arrive from thepartner companies. Environmental testing equipment was used tovary heat and humidity in order to confirm that the products met
KOKUYO’s rigorous design standards for strength, durability,
resistance to discoloration, and other factors. In some cases,changes in adhesives and materials resulted in a loss of strength.
Even though these products still met KOKUYO standards, Koga
and his team members modified the designs for added safety as
well as environmental performance.
Thanks to these endeavors, the Eco X mark was lifted from all
but four products that were designed with more emphasis on
strength than convenience of separation of materials. Mie Plant
plans to move forward and take aim at the challenging Restrictionof Hazardous Substances (RoHS) directive, extending its
products’ environmental performance still further.
* Total number of all products listed in the general catalog, except for low partitions, room
dividers, and store fittings, which are excluded from the calculation of the Eco X markratio.

Removal of the Eco X mark from all desktop panels was completed in 2008.

11

Promoting environmentally friendly products
Initiatives in the development sector

For marquee products, the bar is especiallyhigh
Dotliner is a tape glue to be used in the same manner as
corrective tape: dots of glue 1.5 mm in diameter are arranged in a
discrete pattern on film, which is wound onto a reel. This productis easier to use than conventional adhesive tapes, which use glue
spread across the entire film surface, making the product stringy
and difficult to cut. Because the glue in Dotliner is attached to thefilm in discrete dots, stringiness is eliminated, the tape requires
only a slight pressure to adhere, and hands stay clean. This easeof use has made Dotliner a hit product, selling a cumulative 10
million rolls in the three years since it was launched in 2005.
In January 2009, Dotliner was made even moreenvironmentally friendly: its appearance and price weremaintained, but tape length was extended by 3 m.

Adding value by relentlessly eliminatingwaste

For products that are used constantly at work and in daily life, it isespecially important to build environmental performancethoroughly into products in a way that brings tangible benefit tocustomers. In this section we tell of a case in which environmental
performance was enhanced without compromising basic productvalues such as price, function and esthetic appeal.

Keiji Kai
Gluetech VU
Creative Products Division
KOKUYO S&T Co., Ltd.

“In everyday life there are plenty of cases where being kind to
the environment also saves money. If you use less electricity, forexample, your power bill goes down. That gave us the idea for
Dotliner, a product that’s easy on both the environment and thewallet.” So explains Keiji Kai, who was in charge of the product’s
redesign project at KOKUYO S&T.
Kai began by redesigning the plastic parts of the replaceabletape in Dotliner without modifying the main unit case, in order toeliminate the need for existing Dotliner users to buy a remodeled
main unit case. “Holding a pair of nippers in one hand and theadhesive in the other, I cut out and put back pieces as I looked forany omissible parts to reduce the overall volume,” Kai explains.
Including quality tests, the improved version of Dotliner took
about six months to complete. The outer part of the refill(replaceable tape) was made as thin as possible while preserving
the required strength, and the tape core and winding gear used to
set the tape had holes punctured in them reduce weight. The
inner part of the refill was reshaped to combine several separate
parts into one, and the film on which the glue is applied wasmade thinner. As a result of all of these modifications, the material
used in the replaceable tape was reduced by 20.6%. In addition,in an effort to improve environmental performance, an endcap

made of plant resin was adopted on a trial basis.
By reducing total weight and quantity of plastic used, material
costs for Dotliner were slashed. The integration of multiple parts
streamlined the production process and dramatically lowered
production costs. In addition, the material saved was used tomake the tape longer. KOKUYO S&T continues to look for ways of
improving environmental performance, providing enhanced value
to consumers.

Always doing everything we canDuring this redesign project, the package was also changed
to deliver a significant improvement in shipping efficiency. The
package width was reduced to a slim 9 mm, while the hookportion used to hang the product on racks at the store was folded
over. Packaging for the refill packs was switched from blister
packs to vinyl bags. All told, these modifications yielded a 50%
improvement for the product itself and a 100% improvement for
the refills in shipping efficiency.
“I think we did everything we possibly could with thisproduct,” Kai comments, “but it can still be better. Improving
materials, technology and environmental performance is anincremental process. To ensure that Dotliner continues to be atruly unique product, we have to continue to always do everything
we can.”Winding gear
Made lighter
Cap
Plant resins used
Refill inner part
Reduced in size

Tape core
Made lighter
Refill outer part
Made lighter

Revision of various parts resulted in reduced plastic parts used and preserved
the product’s strength.

12

Toward zero Eco X marks
Presidents of KOKUYO Group manufacturers speak
about the Eco X program.

In 2008, KOKUYO began labeling its own-brand products that did not meet Groupenvironmental standards with the Eco X mark. within 2010, the Group aims to eliminate Eco X
products completely. At the heart of this initiative are KOKUYO S&T, the KOKUYO Group’s
stationery producer, as well as Group furniture-maker KOKUYO Furniture. We asked thepresidents of both of these companies for their comments on the zero Eco X campaign.
aFor details on the Eco X mark, initiatives in 2008 and near-term targets, please see p. 24.

Takuya Morikawa President and CEO, KOKUYO S&T Co., Ltd.
Soon after we started the Eco X program in January 2008,
misrepresentation problems occurred between recycled paper
and plastic products and their product descriptions. Having
displayed the Eco X mark in our catalogs and declared ourintention to achieve 100% eco-friendly products, we as acorporation have a responsibility to ensure the thorough accuracyof the environmental information we provide to our customers. To
ensure that our suppliers share this understanding, we dispatchedemployees to nearly 100 paper mills. These employees spent agreat deal of time examining each mill’s systems and production records to verify the recycled-paper
content of their products.
The criteria for display of the Eco X mark are now standardized throughout the KOKUYO Group.
Some two-thirds of stationery products now bear the Eco X mark. In 2009 we are accelerating the
campaign to make all products environmentally friendly, and we are aware that our products are themeans of fulfilling our mission and contributing to society. We know we have to implement environmental
performance across the entire value chain, from the moment a product is produced to the moment it isdiscarded or reused. It is especially important that we use these efforts to radically transform our level ofenvironmental awareness and activeness. We need to think deeply about the environmental impact ofeach link on the value chain and implement permanent, revolutionary changes.
Consider, for example, the job of picking and packing orders at the warehouse when a customer
orders stationery products of varying shapes, weights and sizes. We use a wide range of packing materials
to provide each customer with individually tailored service. As we succeed in raising the environmental
awareness of our customers, however, in time we begin to hear feedback such as “your service isexcessive” and “can’t you make do with less packing?” which prompts us to revise our operations.
From a management point of view, it is never easy to manage a roster of over 10,000 products, pursuing
higher quality in each product while reviewing environmental performance and maintaining uniform
standards. Yet no matter how volatile economic conditions become, consumer concern about the global
environment continues to rise. Encouraged by this knowledge, we at KOKUYO S&T continue to work
together to eliminate the Eco X mark across the entire value chain in a timely manner, thereby serving thecommunities in which we do business. We’re committed to this agenda, and we are determined to succeed.

13Eiichi Nukina Senior Vice President KOKUYO Furniture Co., Ltd.
Fully one quarter of all our furniture products carried
the Eco X mark when we started in 2008. Everyone,
including not only employees but outside partner
factories and material suppliers, shared the goal ofeliminating the Eco X mark entirely within three years.
There’s no question that this effort accelerated theimprovement of our products’ environmental performance.
During the fiscal year, despite adding environmental
standards on “distribution,” we succeeded beyond our
expectations, reducing the share of Eco X products from 25% to 14% of the lineup.
One future challenge is how to approach products that cannot be made environmentallyfriendly through the manufacturing process. Although we’ve reduced the percentage of furnitureproducts with the Eco X mark to 14%, we are confident that most of these (12% to 13% of total
products) can be made eco-friendly by revising product specifications and design or the
manufacturing processes. For the remaining 1% to 2%, however, this is not possible byourselves, so a new business model is necessary.
One example is strongboxes. Given the purpose of the product, it makes no sense to make iteasy to separate into its component materials. Yet if they can’t be recycled, we can’t remove theEco X mark from any of our strongbox products. To make them environmentally friendly, we mayneed to agree (for example) to collect unneeded strongboxes from our customers. Similar
problems exist with a few other products.
In 2009 we need to proceed with a greater sense of urgency than in 2008. We must solve all
problems that can be solved in manufacturing terms this year, and gather all the information weneed on legal and other restrictions, partners, and so on. That way we will be ready to achieve
zero Eco X products by the end of 2010.
While the task ahead is a challenging one, we can fulfill our destiny as a front-runningenvironmental company by using original ideas. All employees, partner factories and otherbusiness partners are working together to transform the KOKUYO Group according to our goals.

Promoting environmentally friendly products
CO2 labeling

One Campus Note Notebook = 197 g of CO2
Every product carries a cost to the environment. From themoment it is made to the time its useful life is finished, it contributes
to global warming through each stage of its life cycle, from material
procurement to disposal or recycling. This cost is expressed as the
product’s “carbon footprint,” a calculation of total CO2 generated
based on certain standards. For companies, the ability to express
environmental impact in numerical terms for each phase of the
product life cycle makes further gains in environmental performancepossible. If a large number of products are labeled to indicate theirindividual carbon footprints, consumers can use this information in
their purchasing decisions.
In 2008, some 30 companies responded to a call from METI tojoin the Study Group for Developing and Promoting a Carbon
Footprint Program. Three KOKUYO Group companies took part:
KOKUYO S&T, KOKUYO Furniture and KOKUYO Store Creation.
Using six representative products from these companies including
notebooks, office desks and store display fittings, the study groupconducted trial calculations of CO2 volumes. Calculation standards
varied according to product characteristics, which were determinedby category.
As a result of the METI program, it was determined that, forexample, the carbon footprint of one Campus Note notebook
across its entire life cycle is 197 g, and of this, 147.9 g is
generated by material procurement.
These trial products were labeled with a standard logo and theircarbon footprints clearly indicated. They were exhibited at Eco■Trial calculation results for Campus Note

The Carbon Footprint Program is a research program under theguidance of the Ministry of Economy, Trade and Industry (METI).
This program is one of a series of undertakings by the governmentof Japan to reduce the nation’s CO2 output. KOKUYO was one of
the first companies to join this project, lending its support to theestablishment and widespread adoption of the Carbon Footprint
Program.

Hiromi Kumagai

Kazunori Takeuchi

Design Development Division
KOKUYO Furniture Co., Ltd.

Development Innovation Division
KOKUYO S&T Co., Ltd.

Products 2008, Japan’s largest exhibition of environmental
products and services, in December 2008, where they wereviewed by a large number of visitors.

Raising awareness of developers“There’s a whole pile of problems,” laments Kazunori Takeuchi of
KOKUYO S&T’s Development Innovation Department. One is theprecision of the calculations. Though the study group specifies theCO2 volume generated to produce 1 kg of each material, in reality
there are many types of each material, and the actual figures for eachtype varies widely. Lack of consistency also remains a problem in thescope of data collected on supply chains and distribution routes.
Hiromi Kumagai, of the Design Development Division at
KOKUYO Furniture, points out that the system has to be designed tofacilitate expansion. “Increasing the number of products that display
this information will be difficult unless we can find a way to simplify
data collection for products composed of multiple materials.”
At the same time, both Takeuchi and Kumagai agree, workers
on the front lines of product development are becoming
increasingly mindful of life-cycle CO2.
At KOKUYO, we look forward to the spread of accurate carbon
footprint information to as many products as possible to facilitate
work on reducing CO2 emissions. We hope that, in the near future,
consumers’ attention will be drawn to carbon-footprint information in
stores and catalogs, so they can incorporate this information into
their purchasing decisions. The KOKUYO Group is solidly committed
to timely achievement of this goal.

■Other products used in trial calculations of carbon footprints

Provisional indication of carbon footprint as
exhibited at Eco Products 2008

Procurement of raw materials

147.9 gManufacturing

2.2 ｇ

Shipping

11.5 gSales

25.9 gUse/consumption

0g

Disposal/recycling

9.3 g

Ecotwin R tube file
1,337 gMX+ Desk System office desk
173 kg

Dotliner tape glue
245 g

Wizard swivel chair
81 kg

YF Series One-sided Display
steel store display
62 kg

The values for CO2 emissions given for the products shown above are derived from trials conducted by
METI’s Study Group for Developing and Promoting a Carbon
Footprint Program. They do not represent final, confirmed values.

14

CSR Management

KOKUYOGROUP
CSR REPORT
2009
Overview of 2008 Activities

sBasic policy

The KOKUYOGroup andCSR
All Group companies share acommitment to the ongoingpromotion of CSR activities, basedon the philosophy of the founder of
KOKUYO.

15 CSR Management
17 Environmental ReportManagement Philosophy
Gratuitous Business

25 Social Responsibility Report
26 DataCorporate Philosophy“Contributing to society byproviding superior products”

KOKUYO GroupCSR Charter

KOKUYO Group
Code of Conduct

15

Zentaro Kuroda, founder of KOKUYO, left us his
way of looking at fulfilling one’s role in society—even
if it feels unglamorous or burdensome—which hecalled “gratuitous business,” and our management
philosophy, which clearly states his own attitude
toward business. Derived from these sets ofbusiness ethics is the KOKUYO Group’s corporate
philosophy, “Contributing to society by providing
superior products,” which, in turn, serves as a
guideline for the Group’s CSR activities.
Based on this guideline, in 2004 we instituted
the KOKUYO Group CSR Charter, which outlines ourrole in society as a good corporate citizen, andunderlines the importance of building optimum
relationships with our many different stakeholders.
The charter enumerates our basic policies, intended
to ensure the positive development of the Groupand of society as a whole, in five categories:
customers, local communities, environmental
protection, business activities, and human rights.
Group companies carry out corporate activities
based on these five principles. In addition, we haveestablished a KOKUYO Group Code of Conduct thatindicates the way employees should behave on adaily basis in order to maintain the trust andgoodwill of stakeholders.
Since 2008 the KOKUYO Group has been
focusing on two areas in our CSR activities:
prevention of global warming and promotion ofenvironmentally friendly products. Efforts haveincluded the adoption of the Eco X mark and theplanned phasing-out of applicable products. By
integrating business strategies and CSR activities,
we are strengthening our commitment to fulfilling
our social responsibilities.

CSR Management
place, and each of the seven members of theBoard of Directors is appointed to a term of
only one year to allow flexible response tochanges in the business environment. There are
four auditors (including two external auditors)
and two employees are engaged as full-time
auditing staff. Four lawyers on an advisory
contract provide legal advice as the needarises. We are also strengthening our system ofinternal auditing through improved cooperation
between the holding company and Group
operating companies, and sharing issues inauditing.

sCorporate governance system

Corporate
Governance
The KOKUYO Group places greatemphasis on strong corporate
governance and an effective
internal control system to carry out
sound and transparent
management

The KOKUYO Group places great emphasison corporate governance based on the corevalues of transparency, speed, and fairness,and is reinforcing working systems to upholdthese values. While clarifying operating
authority and responsibilities under the holding
company system, we are also making efforts tostrengthen overall supervisory functions andenhance corporate governance. The Group’s
management framework, basic structure, andessential points on Group operations under the
new system are stipulated in the KOKUYOGroup Governance Principles, established inline with the introduction of a holding company
system in October 2004.
In addition, we have an auditing system insInternal control system
The KOKUYO Group adopted a resolution
on a basic policy for an internal control system

at a meeting of the Board of Directors held in
May 2006.
The basic policy establishes a framework
for the Group’s internal control system,
including document-handling rules governing
the storage and maintenance of information
related to the duties executed by directors, andthe establishment of ethical judgment
standards based on the KOKUYO Group Codeof Conduct.
In January 2009 we also established theGroup-wide “J-SOX Committee” with the goalof maintaining and strengthening the system ofinternal controls focused on ensuring thereliability of financial reports, in accordancewith the Financial Products Trading Law.

■ KOKUYO Group Governance System
General meeting of shareholders
Appointment and dismissalof directors

Appointment anddismissal

Appointment anddismissal of auditors

・ Group Management Conference (held twice a month in principle)
As the President’s advisory body, the Group Management Conference
deliberates overall Group strategy and policies, makes decisions on
and announces vital matters regarding the operations of the Group’s
holding company and operating companies, and assists in exchanging information and communications among various levels ofmanagement.

Holding company(Group parent company)

Board of Auditors

Board of Directors
Auditing
President

Coordination
Group Management Conference
Accounting
Accounaudits

Central Workplace Safety and Hygiene Committee

Management Auditing Division

Diversity Promotion Committee

Internal auditing
Environmental Committee
Risk and Compliance Committee
J-SOX Committee

ControlGroup operating companies

Internal audit system・ Board of Directors (held once a month in principle)
The Board of Directors consists of seven directors chaired by the
President, and deliberates and makes decisions on basic KOKUYOGroup policies and vital aspects of its operations.

ting
auditors

・ Board of Auditors (held once a month in principle)
The Board of Auditors, consisting of four auditors, receives reports onvital issues related to auditing, and deliberates and makes decisions
on those issues. Auditors are responsible for admonishing and advising the Directors on the execution of their duties while keeping close
contact with accounting auditors, the management auditing sector,
and auditors of operating companies in order to carry out accurate
audits.
・ Management Auditing Division (internal auditing)This division works to prevent dishonesty and errors in all areas of the
management activities of KOKUYO Co., Ltd. (holding company), andoperating companies, as well as evaluating and improving the effectiveness of risk management and governance with advice,recommendations and proposals intended to aid in the achievementof management objectives.

16

Environmental ReportsEnvironmental load posedby business activities

Relationship
BetweenBusiness
Activities and theEnvironment
Working toward a comprehensive
and quantitative assessment of theenvironmental load of our businessactivities, and promoting activities
that reduce the load

17

The KOKUYO Group’s activities center on
the manufacture and sale of stationery, furniture,and store fixtures, as well as planning, research,
distribution, construction, and services
incidental to these products. Quantitative data
representing the environmental load generated
by these activities throughout the product life
cycle (from planning, research and development
to usage stages) is shown in the diagram to theright.
The KOKUYO Group is working to advanceenvironmental preservation activities mainly inareas where Group operations are directly
relevant: planning, research and development;
manufacturing; sales and service; anddistribution (storage and shipping).
Regardingoutsourced
distribution(contracted delivery), we track the environmentalload posed by delivery services and provide
energy conservation suggestions by using
contractors designated as “specified shippers”
under the revised Law Concerning the Rational
Use of Energy, and we also submit all necessary
periodic reports and proposals. In addition, we
are working to expand our collection services forpicking up old furniture and other unneeded
products from customers and reusing them.
In FY 2008, we made efforts to reduce theenvironmental load at all levels of businessthrough activities such as the introduction ofvisualization exercise to our factories andoffices. On top of this, overall sales dropped incomparison to the preceding year, resulting in a
reduced overall volume of CO2 and other waste
emissions.

(Input parameters)
Energy: electricity, gas (city gas, LPG, natural gas), oil(gasoline, light fuel oil, kerosene)
The unit calorific value employed for electric power is thedaytime electric power value set forth in the Enforcement
Regulations for the Law Concerning Rational Use of Energy(enacted April 1, 2006). The unit calorific value employed forfuel is that set forth in the Environment Ministry's Guidelines
for Calculating Emissions of Greenhouse Gases by
Businesses (Draft ver. 1.5).
Water: tap and industrial water
Material input: volume used as raw material during productmanufacturing
Packaging: volume of material used for the productpackaging

EnergyWater

95,671 GJ
38,000 m3

INPUT(Output parameters)
Greenhouse gas emissions volume: Total volume of CO2
generated by consumption of electricity, gas and oil, andother gases generated by shipping vehicles (CH4 and N2Oemissions calculated as those of CO2). The CO2 emission
coefficient for electric power is the average value for all
power sources (0.378 kg CO2/kWh) published in 2000 by theFederation of Electric Power Companies of Japan. The CO2
emission coefficient used for fuels is that set forth in theEnvironment Ministry’s Guidelines for Calculating Emissionsof Greenhouse Gases by Businesses (Draft ver. 1.5). The
volume of greenhouse gas emissions generated by
distribution (contracted delivery) is calculated using the tonkilo method.
Volume of waste emissions: total volume of general waste,industrial waste and valuable substances generated bybusiness locations.
SOx, NOx: total volume of emissions generated by vehicles
and smoke-generating facilities.
Drainage: volume discharged into public waters and sewage
systems
COD, BOD: volume released into public waters fromdomestic plants that are mandated by law to check water
quality.

Planning, R&D(Other parameters)
Total delivery volume: total amount of contracted delivery offurniture and stationery products (excluding Kaunet deliveries)
Cyclical use in factories Water: volume used cyclically insidebusiness locations
Cyclical use on business location grounds Resources:
amount of packaging used by companies such as KOKUYO
Logitem Co., Ltd., and KOKUYO Supply Logistics Co., Ltd.,
that is reused inside business locations
Total sales volume: total retail sales of stationery and furniture
Collection of used products: volume of used products
collected from customers by KOKUYO Logitem Co., Ltd.
Reuse of used products: volume of products reused, out of
those used products collected from customers by KOKUYO
Logitem Co., Ltd.
* The data for three offices with large numbers of employees
engaged in sales (KOKUYO Business Service Co., Ltd.’s
Kasumigaseki, Yokohama, and Nagoya offices) has beenshifted from “Planning, R & D” to “Sales and service.”* Water used by the Vietnamese Factory and its drainage are
not included.
* Does not include data (CO2, SOx, and NOx emissions) for
the Kaunet Nagoya Distribution Center and Fukuoka
Distribution Center.

Greenhouse gas

OUTPUT

3,757 t-CO2
0.001 tons
SOx0.56 tons
NOx
Volume of waste
542 tons
emissions
38,000 m3
Drainage

Energy
Water

350,474 GJ
109,000 m3

Material input
Paper
MetalsPlastics
LumberOther

82,531 tons
51,361 tons
19,442 tons
3,601 tons
1,686 tons
6,441 tons

EnergyWater

51,419 GJ
3,000 m3

EnergyWater

177,795 GJ
28,000 m3

Energy276,038 GJ

Total sales volume
302,000 tons

Containers and packaging
12,380 tons

Manufacturing

Sales and service

Distribution(storage and shipping)

Water usedcyclically insideplants 134 m3

Greenhouse gas
15,084 t-CO2
0.08 tons
2.13 tons

SOx
NOx
Volume of waste
emissions
7,109 tons

COD
137 kg
BOD
36 kg
Drainage*
85,000 m3* Of this, the volume
discharged into public
waters is
65,000 m3

Greenhouse gas

Distribution(contracted delivery)
Volume ofresources reused
inside businesslocations 270 tons

Greenhouse gas
2,654 t-CO2
0.01 tons
5.13 tons

SOx
NOx
Volume of waste
emissions
199 tons
Drainage
3,000 m3

7,073 t-CO2
0.001 tons
0.38 tons

SOx
NOx
Volume of waste
emissions
8,629 tons
Drainage
28,000 m3

Total shipping volume
120 million ton-km

Usage

Recovery of used products
1,458 tons
Reuse of used products
33 tons

Greenhouse gas 18,798 t-CO2
SOx
0.1 tons
NOx
129 tons

18

Environmental ReportsKOKUYO Group
Environmental Vision

Environmental
Vision/Mediumto Long-term
Environmental
Action Plans
and Results

In July 2002, the KOKUYO Groupestablished the KOKUYO Group Environmental
Vision in order to apply the corporate philosophy
we have followed since our foundation,“Contributing to society by providing superior
products,” to environmental activities.

The Environmental Vision outlines thefundamental philosophy to be observed by theGroup, along with an Environmental Policy
divided into six areas of endeavor: prevention of
global warming; resource conservation andrecycling; procurement, development and supplyof eco-products; legal compliance and pollution
prevention;
information
disclosureandcommunication; and environmental management.

KOKUYO Group Environmental Vision
KOKUYO
Environmental Policy
Legal Compliance and
Pollution Prevention
KOKUYO complies with not only environmental laws, but also with voluntary standards andindustry policies on which the company has
agreed. Every effort is also made to prevent
pollution.

Information Disclosure andCommunication
We will actively disclose environmental
information and engage in communication
with our customers and other external parties
to continually enhance our environmental
activities.

Prevention of Global Warming
To prevent global warming, KOKUYO works to
reduce emissions of CO2 and other greenhousegases.

Fundamental Philosophy
Since KOKUYO’s founding, ourcorporate objective has been“Contributing to society by providing
superior products.” In line with thisobjective, we draw upon the collective
wisdom of all company personnel andact Group-wide to address a common
long-term issue relevant to the wholeworld — environmental conservation.

● Our environmental management strives tofulfill both environmental and business objectives. The company sets targets for mitigating
environmental impact, and all employees work
together for continuous improvement.
● The maintenance and improvement offrameworks to achieve these targets, thenurturing of human resources, and thedevelopment of evaluation systems are themeans we use in striving to enhance ourenvironmental and economic effectiveness.

Resource Conservation andRecycling
To help achieve a recycling-based society, we
use the earth’s limited resources sparingly andstrive to fulfill our obligation to reduce, reuse,
and recycle.

Procurement, Development andSupply of Eco-Products

Environmental Management

19

In line with the environmental policy of the
KOKUYO Group Environmental Vision, our“Green Initiative 2010” program for medium- tolong-term environmental action plans sets forth
specific measures and targets, and we haveundertaken activities based on theseguidelines.

KOKUYO practices green procurement toobtain product components, and develops andsupplies
eco-products.
Additionally,
environmental impact is minimized throughtechnological innovation and the developmentof environmental business models.

Green Initiative 2010
(The KOKUYO Group’s program for medium- to long-term environmental action plans)

■Green Initiative 2010

Targets and results for 2008 (Jan. 1 to Dec. 31)

Environmental
PolicyPrevention of
global warming

Resource
conservation andrecycling○: Targets attained; ×: Targets not yet attained; −: Not applicable (e.g., targets interrelated in multiple areas)

Items to be addressed

Measures taken to prevent
global warming(improved energy efficiency)

Measures aimed atresource conservation
and recycling

Targets for 2010

Evaluation
TargetResultReduction of CO2 emissions(over the year ended March 31, 1991)

0.7% reduction

8.8% reduction○

10% reduction

Reduction of CO2 emissions generated during
deliveries (over the year ended March 31, 2007)

Shipping and delivery data systemcreation

Shipping and delivery data systemcreation○

4% reduction over the year ended March 31, 2007

Expansion of modal shift

Improvement

94.6% of the previous year’s level×

Expansion

Reduction in the final disposal volume ofwaste (over the year ended March 31, 1998)

Maintain present progress levels

69% reduction○

64% reduction (this rate will be sustained for earlyattainment of targets)

Improved recycling rate for the overall
volume of waste

Maintain present progress levels

92.9%

○

91% (this rate will be sustained for early attainmentof targets)

Promotion of “zero emissions”*1

Maintain present progress levels

Could not maintain progress levels(Aoya Factory)×

Expansion to all business locations

Procurement, development
and supply of eco-products

Development of eco-products

Reduction in the ratio of products marked
with the Eco X markStationery products: 35%
Furniture products: 15%

Stationery products: 65%*2
Furniture products: 14%*2

×
○

0%

Legal complianceand pollution
prevention

Strengthening ofmanagement systems forhazardous chemical
substances

Reduction in hazardous chemical
substances contained in products

Compliance with the RoHS Directive

See page 23―

All supply sources will follow these guidelines.

Reduction in hazardous chemical substancesused in manufacturing processes

Maintain present progress levels(eliminating toluene and xylene)

Toluene: 49.6 kg reduction
Xylene: 36.2 kg reduction○

All materials will be free of toluene.

Introduction of a management system to the
supply chain

―

―

―

Set every year

Disclosure of environmental
information

Web site enhancement

Regular updates

Regular updates○

Regular updates

Communication

Strengthening of links with industry
associations, NPOs and communities

Continuation of activities

Continuation of activities○

Continuation of activities

Activities contributing tosociety

Promotion of forestation

Regional and global environmental
preservation activities

Green fund-raising, Ikoma no Mori
project, Yui no Mori project○Continuation of forest preservation activities

Community cleanups

Execution of cleanup projects

Execution of cleanup projects○

Continuation of cleanup projects around offices andbusiness locations

Environmental management

Maintenance and improvement ofenvironmental management systems

Maintain present progress levels

Maintenance of integrated authentication○

Maintenance of integrated authentication

Fusion of management andthe environment

Establishment of an environmental result evaluation
system and environmental accounting

Maintain present progress levels

Display of Eco X (“Non Eco”) marks in
the general catalog○

Continual improvements in CSR management

Promotion of an ecologicalbusiness modelBusiness application and operation of a new
ecological business model

Execution of the Yui no Morimanagement plan

Execution of the Yui no Morimanagement plan○―

Information
disclosure andcommunication

Environmental
management*1 Zero emissions: Defined as the reduction of the final disposal volume of industrial waste to zero.
*2 The standards for display of the Eco X mark were revised in 2008, and the values for results in fiscal 2008 are those conforming to the new standards as of the year ended December 31, 2008.
The data for results shown in the 2009 KOKUYO General Catalogs for stationery and furniture, published in December 2008, was the latest data available when the catalogs were produced, and thus the values differ.

20

Environmental Report

a 549-ton reduction due to operational
improvements, for a net increase of 11 tons.
Notable measures included refurbishedcompressors and lighting equipment, along withother improvements, at the Mie Plant, for a 331ton reduction. At KOKUYO Product Shiga Co.,
Ltd., partial-load operation of compressors anda change to inverter control of dust collectors
led to a reduction of 113 tons.

sOverview of the year ended
Dec. 31, 2008

Measuresagainst Global
Warming
TargetVolume of CO2 emissions

for the year
0.7% reduction from the levels
ended Dec. 31, of the fiscal year ended March
2008
31, 1991 (31,004 t-CO2)

Results

Volume of CO2 emissions

8.8% reduction from the levels
for the year
ended Dec. 31, of the fiscal year ended March
2008
31, 1991 (28,488 t-CO2)In FY 2008 the KOKUYO Group achieved a
2.8% reduction (823 tons) in the volume of CO2
emissions compared to the previous year. There
was a 1.3% reduction (202 tons) in factories, a
4.3% reduction (321 tons) in distribution(storage and shipping), and a 4.5% reduction(300 tons) in offices.

sMeasures against globalsMeasures against global

warming adopted during
distribution

warming adopted at factories
At the five domestic KOKUYO factories,
there was an increase in production due to theconsolidation and reorganization of KOKUYOMVP Co., Ltd., and two partner companies, anddue to boosted production capacity at the
Shibayama Plant. With this in mind, increases
and reductions in CO2 emissions were recordedin two separate categories: “increases andreductions due to changes in production volume”
and “increases and reductions due to operational
improvements.” The estimated results were a
560-ton increase due to boosted production andMerging and streamlining of distribution
points continued in 2008 with KOKUYO Logitem
Co., Ltd., the company in charge of furniture
distribution, eliminating one location in August.
In the area of distribution (shipping anddelivery), we systematized shipping anddelivery data and created a system for tracking
monthly data for each individual company anddistribution channel. This data was analyzed toverify the effectiveness of each measure taken.
At KOKUYO Logitem’s delivery center in Mie,

■CO2 emission volume changes(t-CO2)30,00031,22029,17328,78028,33729,311

28,488

Offices
6,339（22％） Factories

20,00015,081
（53％）
7,068
（25％）

10,000
0

90

04

05

06

07

08 (fiscal year)

CO2 emission coefficient employed was that set forth in the Environment Ministry’s Guidelines for
Calculating Emissions of Greenhouse Gases by Businesses (Draft ver. 1.5).

21■Breakdown of CO2 emissions
by business area (t-CO2)

Distribution(storage and shipping)efficiency was improved thanks to the creationof a central vehicle dispatch office.
Related informationp. 9

sMeasures against global
warming adopted in offices
In addition to the continued promotion of
the Cool Biz program and No Overtime Day,
2008 saw the opening of two newenvironmentally friendly offices, Eco Live Office
Shinagawa and Resonance Field 2.0, where the
KOKUYOGroup
continued
proposingenvironmental solutions to our customers.
At our head office, we adjusted lighting
levels in shared spaces and adopted othermeasures based on analysis of gas andelectricity conservation performance. At the
Shinagawa office, we kept tabs on energy
consumption using a visualization system, andused the results as a basis for future proposals.
Related information

p. 7-8■Breakdown of CO2 emissions by source
City gas 5%

Others 2%

Gasoline 7%
LPG 14%
Electricity
72%

Environmental Reportemissions in February 2006, but an
independent review for the KOKUYO GroupCSR Report 2009 executed by KPMG in
February 2009 revealed this to be false. At
present, negotiations with waste disposal
contractors are underway, and measures aimed
at achieving zero emissions are being
considered.
At the Shibayama Plant, where the total
volume of waste products fell 12% from thepreceding year, measures included thebreakdown, separation and recycling of ametal-and-resin alloy previously disposed of as
industrial waste, with the goal of improving therecycling rate.
In offices, we are continuing efforts to
reduce the total volume of waste produced byexpanding waste separation, and also
continuing to promote material recycling. One
example is at our head office, where 67.5 tonsof industrial waste was incinerated and theashes recycled as raw materials for cement andblast furnace pellets.

sWorking toward “zero emissions*”
through promotion of the 3 R’s

Resource
Conservation
and Recycling
Measures
1. 64% reduction from the levelsof the fiscal year ended March
Target31, 1998 in final disposal
for the year
volume of waste produced
ended Dec. 31,
2. Maintenance of a 91% or2008
greater recycling rate of total
waste volume

1. 69% reduction from the levelsof the fiscal year ended March
Results
31, 1998 in final disposal
for the year
volume of waste produced
ended Dec. 31,
2. Maintenance of a 92.9%
2008
recycling rate of total waste
volumeAll companies in the Group make it a policy
to promote the 3 R’s (Reduce, Reuse, Recycle)
in order to use resources efficiently and reduce
the final disposal volume of waste produced.
In FY 2008, on top of the results achieved
through various conservation efforts, thevolume of products produced and sold fell.
Accordingly, waste emission volumes werereduced at many sites (notably the two furniturefactories), resulting in a lower overall volume
than the previous year. The KOKUYO Groupalso exceeded our targets for recycling rate andfinal disposal volume of waste produced.

sResource conservation inbusiness activities
Among the KOKUYO Group’s domestic
factories, the Aoya Factory of KOKUYO MVP
Co., Ltd., declared that it had achieved zero■Volume of waste products recycled comparedwith final disposal volume
Recycled(t)
20,00015,00017,457

9,849

5,000

* Zero emissions: Defined as the reduction of the final disposal volume ofindustrial waste to zero.

Final disposal volume
17,73916,47913,581

10,000017,601

15,783

16,075

16,424

15,310

1,674

1,526

1,314

1,169

05

06

07

08 (fiscal year)

products
When delivering products to customers, we
also collect their used and unneeded products
and recycle or reuse them when productcondition permits.
In FY 2008, KOKUYO Logitem Co., Ltd.,
collected 1,458 tons of used products including
office desks and chairs. Of that, 33 tons werereused, and 630 tons were disassembled,
separated by material type, and recycled.

Disassembling and separating used chairs■Breakdown by source ofwaste produced■Breakdown by material of waste produced(figures in parentheses are recycling rates)

Offices
741 tons（4％）

Others1,907 tons（61.4%）

Factories
7,109 tons
8,629 tons （43%）
（53%）

3,732

97

sReuse and recycling of used

Distribution(storage and shipping)Notes:
1. Waste produced at construction sites is not included.
2. Data for FY 2005--2007 has been revised, with previously omitted data computed and added.
3. Volume recycled: Out of all waste products, the total volume of those that are recycled as materials (material recycling), as energy(thermal recycling), or as valuable substances.
4. Final disposal volume: Out of all waste products, the total volume of those that are simply incinerated or directly buried in landfills.

Plastic
1,729 tons（84.3%）
Metal
3,000 tons（99.8%）

Paper
9,843 tons
（98.4%）
Total
16,479 tons
（92.9%）

22

Environmental ReportsMeasures to reduce levels ofchemical substances in
product development

Dealing with
Hazardous
Substances
Investigation and action
regarding materials covered
Target by the RoHS Directive• Stationery: 10,000 productfor the year
ended Dec. 31,
items checked2008• Furniture: some 21,000
product items passed

Investigation and action
regarding materials covered
Results by the RoHS Directive
for the year
• Stationery: 10,800 productended Dec. 31,
items checked2008• Furniture: some 21,000
product items passed

The KOKUYO Group works to ensurecompliance with laws and reduce its
environmental load by means of a chemical
substance management system and datacollection methods established under chemical
substance management regulations.
In order to reduce levels of hazardous
substances, particularly those addressed by the
RoHS Directive, KOKUYO S&T Co., Ltd.,
conducted surveys in writing at all supplierlocations to confirm these substances were notused. To verify the results of the surveys, thecompany carried out screenings using
fluorescent X-ray analysis equipment. By theend of 2008, a cumulative total of 10,800
separate product items were checked in thisway, accounting for over 80% of all productitems.

Based on the results of surveys ofsuppliers, KOKUYO Furniture Co., Ltd., hasbeen compiling a database of test results on
items containing substances covered by the
RoHS Directive. So far some 21,000 separate
product items have been made compliant withthe directive.

sMeasures to reduce levels ofchemical substances in the
production process
At the Mie Plant of KOKUYO Furniture Co.,
Ltd., measures dealing with hazardous
substances were taken with regard to products
manufactured at partner factories. Upgradesfrom F☆☆☆ to F☆☆☆☆ ratings, and reduced
use of hexavalent chromium, were promoted at
approximately 200 companies.
At the Shibayama Plant, we have beenswitching to a water-based coating in order toreduce the amount of xylene used since FY■Chemical substances covered under the PRTR Law in the year ended Dec. 31, 2008
Ordinance
numberName of chemical substanceAmount
used

1
307
270
227
16
43
232
63
93
309
40
224

Zinc compounds (water-soluble)
Polyalkyl ether
Di-n-butyl phthalate
TolueneMonoethanolamine
Ethylene glycol
Nickel nitrate
XyleneChlorobenzene
Poly(oxyethylene) nonylphenyl ether
Ethylbenzene
1,3,5-trimethylbenzene
Total

1,157.1
662.6
545.6
221.8
210.0
127.8
66.9
55.8
14.0
16.1
7.4
1.0
3,086.1

Volume emitted/volume transported
Atmospheric Volume of drainage Volume of waste
Subtotalemission volume
discharged
disposed of

0.0
662.6
0.0
172.8
199.5
0.0
0.0
55.7
13.8
16.1
7.4
1.0
1,129.0

4.0
0.0
1.0
0.1
10.5
0.0
0.0
0.1
0.0
0.0
0.0
0.0
15.6

0.0
0.0
3.6
0.1
0.0
1.3
46.8
0.0
0.0
0.0
0.0
0.0
51.9

4.0
662.6
4.6
173.0
210.0
1.3
46.8
55.8
13.8
16.1
7.4
1.0
1,196.4

2005. FY 2008 saw a further reduction
compared to the preceding year’s 20.4 kg,
resulting in a total of 5.9 kg of xylene used.
Related informationsManagement and disposal ofequipment containing PCBs
We have been stored and properly managed
condensers and other waste materials
containing PCBs (polychlorinated biphenyl) at
the Osaka head office, Chiba warehouse,
KOKUYO MVP (Tottori Factory/Aoya Factory),
and the Fukuoka Nanotsu building. We also
submit the proper documents relating to the
management and disposal of the materials, inaccordance with the Law Concerning Special
Measures Against PCB Waste. In July 2008, 20
such condensers at the Osaka head office were
disposed of.

(Unit: kg)

Volumeremoved intreatment

Volumerecycled

Volumeconsumed

512.3
0.0
0.0
45.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
558.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

640.8
0.0
541.0
3.1
0.0
126.5
20.1
0.0
0.2
0.0
0.0
0.0
1,331.7

Notes: 1. “Volume removed in treatment” refers to the volume of “chemical substances covered under the PRTR Law” that were transformed into other substances through incineration,neutralization, decomposition, reactive treatment or other means used within business locations.
2. “Volume consumed” refers to the volume of “chemical substances covered under the PRTR Law” that were taken out of business locations as other substances as described above,or as components of or accompaniments to products.

23

p. 11

Environmental ReportsRevision of standards andsEfforts in 2008

Providing
Eco-Products
Targetfor the year
ended Dec. 31,
2008

Results
for the year
ended Dec. 31,
2008

Percentage of products
displaying Eco X markStationery: 35%
Furniture: 15%*1

Percentage of products
displaying Eco X mark*2
Stationery: 65%
Furniture: 14%*1 The Eco X mark display percentage for furniture is thepercentage of all furniture products in the General
Catalog, excluding low partitions, room dividers, andin-store fixtures and furniture.
*2 The standards for display of the Eco X mark wererevised in 2008, and the values for results in FY 2008
are those conforming to the new standards as of theyear ended December 31, 2008.
The data for results shown in the 2009 KOKUYO
General Catalogs for stationery and furniture,published in December 2008, was the latest data
available when the catalogs were produced, and thus
the values differ.

With efforts to eliminate Eco X marked
products getting underway, in 2008 we didaway with the previous system of recording“the sales ratio of eco-products,” and insteadbegan using the “display ratio of the Eco X
mark.”In 2008, we pursued activities focused
primarily on the following two areas:
1. Switching over to new types of adhesives,
etc., during manufacturing to reduce use of
VOCs (volatile organic compounds)
2. Redesigning products to make them easierto recycle
The problem of misrepresentation ofrecycled material content on labels for paperand other products surfaced in January 2008,
and in response we have been conducting onsite investigations at paper mills and taking
other steps to gain a further understanding of
the situation and pursue necessary corrective
measures.

■2008 General Catalog
Manufacture

Recycled Alternative Forest
Parts
Washablematerials materials preservation replacement products

policy for 2009 onward
While working to reduce the number of Eco
X marked products, in 2008 we also reexamined
the standards used for the mark itself. As aresult, we broke down the life cycle of a productinto the four stages of “manufacture,”“distribution,” “usage” and “disposal,” andestablished an environmental policy for
KOKUYO products, to be followed until the endof 2010, that entails considering some kind ofenvironmental-protection measure for each oneof these stages. At the same time, we unified
the separate Eco X mark standards used forstationery and furniture into a single standard.
With these measures, the standards fordisplay of the Eco X mark became stricter thanthose used in the KOKUYO General Catalog
published in 2008, and at the end of 2008 thepercentage of stationery products displaying
the mark was 65%, while furniture products
stood at 14%.
We will continue using the new Eco X markdisplay standard in the coming years and weare maintaining our initial target of eliminatingproducts bearing the Eco X mark by 2010.

■2009 General Catalog
Usage

DisposalRefillable
EnergyVOC
products conservation measures Recycling

For stationery products, if a product is not eligible to receive
an “original environmental mark” at any of the three life
cycle stages, it is marked with an Eco X mark.
For furniture, at least three of the life cycle stages must be
eligible to receive at least one “original environmental
mark,” or the product is marked with an Eco X mark.

Manufacture

Distribution

Recycled Alternative Forest ResourceEcoEcosaving packaging shipping
materials materials preservation design

Manufacture

Distribution
Zero
Eco X
marks

Disposal

Usage

Usage

Disposal

EnergyVOCLong life conservation measures Recycling

For both stationery and furniture:
A product must be eligible toreceive at least one “originalenvironmental mark” at each of thefour life cycle stages, or the productwill be marked with an Eco X mark.

Measures addressing the problemof misrepresentation of recycledmaterial content on labels■KOKUYO S&T Co., Ltd.
In response to the problem of
misrepresentation of recycled-pulp content
on labels for paper, which surfaced in
January of last year, we have been visiting
paper factories throughout Japan andconducting on-site investigations todetermine levels of recycled material content
in order to swiftly regain customers’ trust.
So far we have checked approximately
100 factories by examining their systems,
production records, daily reports, and so on
to verify how much of what recycled pulp is
actually used in their products.

■KOKUYO Furniture Co., Ltd.
After the discovery of falsified recycled-pulpcontent labeling for paper, we conducted ourown investigation of partner companies to verify
levels of recycled resin content. Upon finding
several cases of inaccurate labeling, KOKUYOFurniture Co., Ltd., responded by strengthening
its quality management system (QMS). The“QMS Requirements” were revised andapproximately 170 partner companies wereasked to apply stricter product quality andsafety standards. Partner companies were also
asked to urge their suppliers to take similar
steps.

24

Social Responsibility
ReportsToward greater transparencyof management activities

Responsibilities
to Shareholders
KOKUYO is committed todisclosing information promptly
and accurately in order to meet the
expectations of shareholders andinvestors

We believe that timely and accurate
disclosure of information forms the foundationof transparent, healthy corporate management.
1) Investor relations (IR) activities
Corporate investors and analysts are kept
informed of the Group’s current condition
through semiannual settlement briefings andindividual visits. At the 2008 interim settlement
briefing, we led attendees on a tour of ourshowcase Kasumigaseki Live Office, with thegoal of keeping investors updated on the areasof ours endeavor.
2) Information disclosure via our Web site
Information that may impact investment
decisions is promptly disclosed on our Web site.
The Group’s IR information
Web site is available inJapanese and English inorder to meet the needs ofinvestors worldwide. In 2008,as a corporation meeting
Daiwa Investor
predetermined standards
Relations Excellence
for online IR informationAward

disclosure, we received an Excellence Award
from Daiwa Investor Relations.

sStock and shareholder
conditions
As of the end of December 2008, the total
number of shares authorized was 128,742,463,
with 25,245 shareholders. In terms of ratio ofshareholdings by shareholder type, financial
institutions
andsecurities
companies
accounted for 21.0%, overseas individuals andcompanies 11.7%, individuals and others
28.0%, and other corporate persons 31.2%,
while shares held by the KOKUYO Group itself
accounted for 8.1%. Starting in 2007, we
adopted a special benefit plan for shareholders
to show appreciation for their support.
Dividend policies and results
In an effort to place further emphasis on
shareholders in our management, and inconsideration of consolidated business results,
the KOKUYO Group is setting a target of a 20%
or higher dividend payout ratio in addition to theexisting stable dividend. With this in mind, thedividend for FY 2008 will be set at the usual 15
yen per share (interim 7.5 yen, year-end 7.5 yen).

The internal reserve fund will be put towardfurther strengthening of the Group’s
management and investments aimed atelevating its brand value in the future.

sStatus of inclusion in SRI indices
Investors are growing increasinglyinterested in socially responsible investment(SRI), which involves investing in companies
that are actively engaged in measures to protect
the environment, offer expanded employment
opportunities, and otherwise contribute tosociety. In recognition of its engagement inthese areas, the KOKUYO Group has been
selected for inclusion in the prestigious Ethibel
Sustainability Index published by Ethibel, one of
the top SRI consultants in Europe and North
America. The KOKUYO Group has also earned
inclusion in other highly respected SRI indicesincluding FTSE4Good, managed and calculatedby UK-based FTSE.

■Ratio of shareholdings by shareholder type
〈By shareholder type〉
KOKUYO
8.1%

Individuals
and others
28.0%
Overseascompanies, etc.
11.7%

25

128,742,000
shares〈By number of shares held〉
Financial
institutions andsecurities
companies
21.0%

Other corporate
persons
31.2%

1,000 to 4,999
9.1%

999 or less
2.5%

128,742,000
shares100,000 or more
74.7%

5,000 to 9,999
3.6%
10,000 to 49,999
7.6%
50,000 to 99,999
2.5%

Account settlement briefing

Data

CSR
Accounting

Since 2004, the KOKUYO Group has been
conducting CSR accounting, tallying andpublicly announcing the expenses incurred inconnection to the five areas elaborated in the
KOKUYO Group CSR Charter (Customers, Local
Communities,
Environmental
Protection,
Business Activities, and Human Rights), by which
the Group’s CSR activities are guided. For CSR

accounting, we strive to calculate only thedifferential cost*1, as in the case of theenvironmental accounting that we have been
carrying out since 1998.
Regarding the CSR accounting process, wehave been aware of issues such as the need for
improving accuracy and methods of calculations,as well as the need for estimating the effect of

CSR activities. Increases in autonomous activities
conducted by Group operating companies haveresulted in a necessity for placing greater
emphasis on finding solutions to these issues.
We will make efforts not only to announce
the results as mere figures, but also to employ
them as part of the information used to drive theGroup’s management policy.

Customers

Local Communities

Environmental
Protection

Business Activities

Human Rights

KOKUYO’s
Responsibilities

Providing products andservices from the viewpointof customers

Building vibrant communities

Making efforts to solve global
environmental problems

Conducting corporate
activities fairly

Placing emphasis on humanrights in all corporate
activities

Cost of
Activities¥414,420,000¥49,330,000¥516,334,000¥175,913,000¥49,094,000

Improving customer
satisfaction¥351,373,000

Societal contributions¥22,679,000

Preventing pollution¥62,908,000

Compliance promotion¥8,059,000

Revitalizing local
communities¥6,810,000

Preventing global warming-¥13,359,000

Fair transactions withbusiness partners¥1,900,000

Improving employee
satisfaction¥6,000,000▼Scope of CSR accounting: KOKUYO Co., Ltd., and 20
consolidated subsidiaries
KOKUYO S&T, KOKUYO Furniture, KOKUYO StoreCreation, KOKUYO Business Service, KOKUYO Product
Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYOSupply Logistics, KOKUYO Office System, KOKUYO
Marketing, KOKUYO Engineering & Technology,
KAUNET, Net KOKUYO, KOKUYO Chugoku Sales,
KOKUYO Kyushu Sales, KOKUYO International,
KOKUYO-IK (Thailand), KOKUYO (Malaysia), KOKUYO
Vietnam, KOKUYO K Heart▼Accounting period: January 1 to December 31, 2008
▼Accounting method: Figures posted represent the costof putting into practice the ideals outlined in the KOKUYOGroup CSR Charter. This cost is a sum of personnel,
depreciation and other expenses. The amount saved
through cost reductions and income from assets is
subtracted from the expenses. “The cost of constructionof a management system” is derived from proportionally
distributed, approximate amounts of head-office-related
costs.
It should be noted that the accuracy of calculations ofcosts for each activity does not necessarily represent theactual distribution of management resources.
▼Guidelines for reference: “Environmental Accounting
Guidelines, FY 2006 edition,” published by Japan’s
Ministry of the Environment

Proper maintenance ofcustomer information¥6,866,000
Leading customer
evolution¥46,339,000

Breakdown ofMain Costs ofActivities

Construction of amanagement system¥9,842,000¥10,000,000

Saving and recycling
resources¥170,882,000

Construction of amanagement system¥9,842,000

Procuring and providing
eco-products¥55,656,000

Disaster relief

Investigation and research
into environmental
engineering¥118,368,000*1 Cost differential: Cost with expenses not directly related
to CSR objectives deducted whenever possible. It isdeclared as a difference from regular total costs
incurred in order to isolate as accurately as possible theadditional cost judged to be generated by the KOKUYOGroup’s deliberate pursuit of CSR activities.
Remarks
After consulting with an external review organization, we
have decided from this year forward not to post theoperating costs of the Kuroda Greening Foundation, which
had been posted under “Local Communities – Community
greening” until fiscal 2007.

Communication withstakeholders¥97,685,000
Construction of amanagement system¥68,269,000

Equal opportunities andpersonnel training¥29,411,000
Workplace safety andsanitation¥3,841,000
Construction of amanagement system¥9,842,000

Environmental
communication¥17,362,000
Construction of amanagement system¥104,517,000

Related pages──

p. 17-24

p. 15-16, p. 25

─26

About the front cover design
The KOKUYO Group promotes diversity in the workplace,and the front cover shows the facial expressions of a diverse
workforce energetically engaged in various jobs. The patternat the bottom of the cover displays the percentage of
products bearing the Eco X mark (“Non-Eco” markindicating products that are insufficiently environmentallyfriendly) in the stationery and furniture lines.

■Environmentally friendly paper■Environmentally friendly printing■Universal Design with consideration of color perception

Printed on FSC-certified paper

Waterless printing

Green purchasing in printing services

Color Universal Design

The paper used for this publication iscertified by the Forest Stewardship Council(FSC) as being made from “timber from
responsibly managed forests (certified
timber).”

The use of waterless printing, which requires
no water, eliminates the need for volatilesolvents and prevents the release of liquid
waste during the printing process.

The KOKUYO Group is committed to green
purchasing in printing services, based on
the guidelines for ordering offset printing
services set out by the Green Purchasing
Network (GPN).

We make every effort to display information so that it isclearly visible to all users, regardless of individual
differences in color perception. After inspection bymonitors and other checks, we have received certificationby the Color Universal Design Organization (CUDO).

Published by

KOKUYO Co., Ltd.
6-1-1 Oimazato-minami, Higashinari-ku, Osaka 537-8686, Japan
Contact

PR Division
KOKUYO Business Service Co., Ltd.
TEL: 06-6976-1277 FAX: 06-6976-1253(June 2009)

200906A01DN

2009-078