2010
Furniture

Stationery

Corporate Outline of KOKUYO Co., Ltd. (as of December 31, 2009)
Net Sales (consolidated)

Established: October 2, 1905

Number of Employees(¥100 million)

Capital:¥15.8 billion

President:

3,395

3,500

3,261

6,000

5,505

3,039

Akihiro Kuroda

3,000

2,528

Head office: 6-1-1 Oimazato-Minami, Higashinari-ku,
Osaka 537-8686, JapanNet Sales by Business Segment(consolidated)

2,667

5,000

4,747

4,949

5,037

5,147

Store-Related 5.2%(¥13.8 billion)

2,500
4,000
2,000

Net Sales¥266.7billion

3,000

No. of consolidated subsidiaries: 24

1,500
2,000

1,000

0

Furniture
37.2%(¥99.1 billion)

1,000

500

Mar. ’06 Mar. ’07 Dec. ’07 Dec. ’08 Dec. ’09

0(fiscal year)*

Stationery
57.6%(¥153.6 billion)

Mar. ’06 Mar. ’07 Dec. ’07 Dec. ’08 Dec. ’09(fiscal year)* 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(5 consolidated subsidiaries)

Shareholders

Employees

Stationery
operations

Centered on KOKUYO S&T Co.,
Ltd., these operations consist of the
manufacture, procurement and saleof files, notebooks and other paper
products, stationery, PC-related
products, and child education materials, as well as solutions in areas
such as document management.

Localcommunity

Furnitureoperations

Customer Front Companies(4 consolidated subsidiaries/6 nonconsolidated subsidiaries)
This segment includes KOKUYO Office
System Co., Ltd., which supplies officespace proposals and solutions to major
corporate customers, as well as KOKUYO
Marketing Co., Ltd., and other regionallybased manufacturer sales companies.
Campus Note twin-ring notebook (dotted ruled lines)

Mail-order Office Supply Operations(2 consolidated subsidiaries)

Furniture Operations

Store
operations

Overseas
operations(4 consolidated subsidiaries)
KOKUYO Furniture Co., Ltd., andother Group companies produce,
supply and sell office furniture.

Inspiration, Efficiency and Comfort

Customersandconsumers

Mail-orderoffice supply
operations
Customer
front
companies
Suppliers
andpartnercompanies

Media

Interior Design and Installation
Operations(1 consolidated subsidiary)Store Operations(1 consolidated subsidiary)
KOKUYO Store Creation Co., Ltd.,produces and sells store fittings, andalso provides store design and installation services.

Financial
institutions

Global environment
01

Interior
design andinstallation
operations

KAUNET Co., Ltd., and Forest Co.,
Ltd., conduct mail-order sales of all typesof products required by offices.

KOKUYO Engineering & Technology
Co., Ltd., offers interior design services
ranging from layout design to partitioning
and flooring, as well as design and installation of facilities.

Free-address tables (WorkLink)

Overseas Operations(5 consolidated subsidiaries)
KOKUYO Group companies, centeredon KOKUYO International Co., Ltd., carryout Group operations in China, Southeast
Asia, India and other overseas markets.

E-rail electric power supply system for store fixturesBecoming a Company That Contributes to a Sustainable Society in Many Ways
KOKUYO Co., Ltd., was founded in 1905
as a manufacturer of covers of wacho(Japanese paper account books) under the
trade name Kuroda Hyoshiten. Though few
paid attention to the account book coverbusiness, which was regarded as a thankless,troublesome, and gratuitous business, thecompany’s founder, Zentaro Kuroda, threw
himself into the enterprise heart and soul.
Through his relentless efforts, the businessbegan to produce new value and developed
into KOKUYO, a company with unique value
and a fresh role in society. Since then, all of
us in the KOKUYO Group have made thefounder’s indomitable spirit our own.
The thoughts of the founder are preserved
today in the corporate philosophy of the
KOKUYO Group: “Contributing to society byproviding superior products.” Our approachto achieving this goal is expressed in ourmanagement creed, the meaning of which isinstilled in every KOKUYO employee.
For the 105 years following the company’s
foundation, the KOKUYO Group has followed
a consistent management vision: “Always
Innovating For Your Knowledge.” By always
providing value for the knowledge work of all
our customers through inspiration, efficiency
and comfort, we ensure business continuity
while achieving the aim of our Corporate
Philosophy.
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 to which
the KOKUYO Group is heir, reinforcing thetrust and confidence we enjoy from our many
supporters and stakeholders.

CONTENTS
1
2

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

3

Executive Dialogue

The Future of Offices andVehicles Evolving in an
Environmentally Friendly Society
The role of enterprise in achieving a lowcarbon society
Akihiro Kuroda, president of KOKUYO Co., Ltd.,
speaks with Toshiyuki Shiga, COO of Nissan MotorCo., Ltd.

CSR Management
11
12

The KOKUYO Group and CSR
Corporate GovernanceRisk Management/Business Continuity Plan

13

19
20
21
22

Relationship Between Business Activities andthe Environment
Environmental Vision/Medium- to Long-term
Environmental Action Plans and Results
Initiatives in Biodiversity
CLOSE UPThe Fourth Year of Yui no Mori Project Focuseson the Original Functions of the Forest
CLOSE UP
Broadening Our Product Range and Human
Network to Safeguard the Precious Natural
Environment for Future Generations
Measures against Global Warming
Dealing with Hazardous Substances
Resource Conservation and Recycling Measures
Providing Eco-Products

23
25

Promoting Diversity
Responsibilities to Shareholders

26

CSR Accounting

Environmental Report15
17

Special Feature Toward a low-carbon society

Reducing office CO2 and offering
eco-products
7
9

Eco LiveOffice Shinagawa: Reaping the fruitof changes in employee awareness
Kasumigaseki LiveOffice: Establishing new
standards through innovative office design
proposals

18

Reducing CO2 from logistics andproviding eco-services
10 With a 6.1% reduction in CO2 emissions,
we aim to be the logistics partner customers
choose first.

Social Responsibility Report

Data

Management
Creed
Corporate
Philosophy

Contributing toSociety by Providing
Superior Products

When born into this world, a childhas nothing to call its own.
Our bodies, minds and spirits grow and arenourished by the love of our parents and families,
the guidance and discipline of our teachers, andthe encouragement of society as a whole.
We grow and mature and adopt vocations suitableto ourselves and the education instilled in us.
These vocations must be pursued withutmost diligence by gaining the trust ofcolleagues, clients and communities around us.
The only way to secure this trust is to act withabsolute sincerity in every action andendeavor we undertake.
In this way, our endeavors succeed inand of themselves, and we are
happy in our vocations.
Sincerity not in words but in action.
This is the KOKUYO creed.

Brand
Message

Inspiration

Efficiency Comfort

Corporate
VisionScope of the CSR Report
Period covered
Data consists of results from January to December 2009. Activities described include those undertaken during
and before 2009, and those from January to March 2010.
Organizations covered
In principle, KOKUYO Co., Ltd., includes its 24 consolidated subsidiaries; however, the Environmental Reportcovers only KOKUYO Co., Ltd., and the 22 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, KOKUYOInternational, KOKUYO Business Service, KOKUYO Supply Logistics, KOKUYO Vietnam, KOKUYO Product
Shiga, KOKUYO MVP, KOKUYO-IK (Thailand), KTL, KOKUYO (Malaysia), KOKUYO Logitem, KOKUYO Finance,
KOKUYO K Heart

02

The Future of Offices and Vehicles
Evolving in an Environmentally
Friendly Society
The role of enterprise in achieving a low-carbon society

Toshiyuki Shiga
COO
Nissan Motor Co., Ltd.

Akihiro Kuroda
President
KOKUYO Co., Ltd.

03

Prudent environmental management is essential in today’s
business world. Attaining sustainable operations will require
more than just environmentally friendly products. It will require a
new attitude, in which people discover the joy of orienting
business activities toward the achievement of a low-carbon
society. Akihiro Kuroda, president of KOKUYO Co., Ltd., invitedToshiyuki Shiga, Chief Operating Officer (COO) for Nissan MotorCo., Ltd., to Eco LiveOffice Shinagawa to discuss a wide range of
topics related to environmental management at the twocompanies. Mr. Shiga has recently been in the spotlight for hisplans to introduce the Leaf, Nissan Motor’s electric vehicle.

Environmental initiatives need to have anelement of fun
Kuroda: Thank you for coming to our Eco LiveOffice Shinagawa,
Mr. Shiga.
Shiga: When you escorted me through this office, I strongly
sensed your employees’ concerted efforts and strong motivation
toward reducing environmental impacts. My impression is that,rather than being forced to take action, your employees are
mindful of the environment even in their private lives. KOKUYO’s
approach and set of values seem to be closely aligned with its
employees’ way of living.
Kuroda: I’m delighted to hear that. If we look at Japan’s CO2
emission volumes by industry, we can see that emissions fromplants and manufacturing are declining, while those from homes
and offices have climbed almost 40% since 1990. As a company
that is close to the office segment, KOKUYO is working hard to
introduce environmentally friendly products, reusing resources
and so forth, but I think we need to go further. If we don’t change
people’s attitudes and the ways they work, there won’t be muchnoticeable change. Eco LiveOffice Shinagawa introduces a
number of experimental innovations, such as LED lighting thatsenses human presence to control energy consumption,nighttime power contracts, and an outdoor garden office, but its
main purpose is to make the people who work in it more aware of
the environment. We apply the results of these experiments toother KOKUYO offices, ultimately extending them to ourcustomers. In this way I hope we can continue to find our own
way of contributing to a low-carbon society.
The feelings of people who work here or elsewhere may not
be easy to detect, but when you said you could feel our
employees’ commitment to the environment in this office today,
Mr. Shiga, you gave me a great boost of confidence.

Shiga: Action on the environment is no longer optional for us asautomobile manufacturers. Now, it’s our mission. Today we haveto build into our product development plans solutions to reduce
CO2 emissions, ensure clean emissions, conserve resources andfacilitate recycling, and we have to set ambitious targets for ourwork. Our approach is consistent, whether we are selling our
products in the developed world or in developing countries; we
instill the same ways of thinking at our overseas production
centers as in Japan. We’re promoting environmental action that
goes beyond the cars that are our products, to encompass all of
the corporate activities by which those products are brought tomarket. Without such concerted action, we won’t survive as anenterprise or as an industry.
That’s why I believe employee attitude is so important.
What’s the point of our business activities if we sell
environmentally friendly vehicles, then let our cars idle when wepick up our children at school or preschool? When I looked atyour office, I saw many good examples that could be used in ourbusiness as well.

Shiga: Environmental activities need to have an element of fun. A
car has to be environmentally friendly, but it needs to be fun too.
A product has to be fun as well as eco-friendly when driven—for
example, our electric cars have to be enjoyable to drive,otherwise their appeal won’t last long. People will lose interest if
they feel forced or obligated to make sacrifices.
At Nissan, we’re trying combinations of various fun elementswith our environmental message. For example, our customers
can have their vehicles’ fuel consumption displayed on theirmobile phones, and they can check their eco-friendly driving
performance against others in the form of a performance ranking
system. Another approach we will be using is to load the driving
data of our test drivers, who are expert eco-friendly drivers, into a
car’s computer system to control the engine. Improving a car’sfuel consumption by a fraction of a liter through engineering
requires an enormous amount of investment, but far bigger gains
in fuel efficiency can be achieved by changing the mindset of thedriver. It’s important to entertain people as you transform theirawareness and establish new habits in their everyday lives.

Kuroda: Our company hasn’t always been this way. When wecreated this office in the summer and fall of 2008, there were anumber of heated discussions. A year and a half later, ouremployees are coming out with a stream of ideas on their own.
For example, some employees decided on their own to put on a
fashion show, suggesting the kinds of fashions appropriate forworking in a summer garden office. Others suggested taking thestairs when going to and from the fifth floor. Another innovation
was an award based on environmental action points. Thisenthusiasm is expected to gradually gather momentum, growing
out to the regional and national-society level. We’re seeing achange in employees’ feelings that is changing the Company, andultimately the products they bring out. I hope to see this happen
any day now.

Kuroda: I feel exactly the same way. In fact, at the beginning of
2008, before we built this office, we began our “Eco-X markprogram,” marking with an X all KOKUYO products that were notsufficiently environment-friendly in all phases of their life cycles.
The aim was to eliminate all of these problems within three years,
that is, by the end of 2010. Nobody wants to suffer the agony of
missing this deadline. Our customers were quite favorably
impressed with this program. We heard people say this was awonderful stance for a company to take, and some concededthat they personally must think more about the environment. Our
employees and all our partner factories are working together toachieve our target of zero Eco-X products. Once we started thisproject, we learned how effective it could be in changing theattitudes of customers and employees about environmental
issues.

04

Balancing the expectations of thedeveloped and developing worlds
Kuroda: Last year the Japanese government committed itself(albeit subject to cooperation from the global community) to theambitious target of a 25% reduction of CO2 emissions from 1990
levels by 2020. In December of last year, the world’s majorcountries met in Copenhagen for COP 15, the 15th Conference of
the Parties, for a discussion of CO2 emissions targets. I believe
the world has embarked on a new stage in the quest for a lowcarbon society.
Actually, last year KOKUYO succeeded in reducing its carbon
emissions in Japan by 30% from 1990 levels. Much of this featwas achieved through our own efforts, but the current worldwide
recession, and the slump in production it engendered, had aprofound impact as well. As we strive to place the Company on a
new growth track from this year forward, we are setting ourselvesa new challenge: increasing production while holding CO2
emissions at current levels.
Shiga: COP 15 ended without an agreement on
reduction targets. Even so, I think it is a
momentous step forward that the representativesof so many countries, including developing
nations, were able to convene and reach aconsensus that we must put the brakes on CO2emissions growth, so we can bequeath this blue
planet of ours to future generations. The
Copenhagen accord included a call to reduce theeffect of global warming to within 2°C of preindustrial levels, and various countries are
expected to continue their cooperation as they
deliberate the issues on their own.

05

Kuroda: That’s right. We have the developing nations, which aretrying to achieve prosperity through economic growth, and thedeveloped nations, which have come to recognize that money
doesn’t necessarily buy happiness. That difference was madeclear at COP 15. We need to get everybody moving in the same
direction, thinking about what we need to do as one world,
beyond the narrow interests of individual countries and peoples. I
believe it is Japan’s role to create the opportunities for suchconsensus. Japan’s enterprises are capable of extremely efficient
production, and so are dynamically effective at slashing CO2
emissions. I feel that Japan holds the key to achieving a lowcarbon society while continuing to promote the growth of thedeveloping nations.
Shiga: As you know, China has become the largest automobile
market in the world, surpassing the United States. The mostpopular models in China are fuel-efficient, compact gasolinepowered vehicles. In developed countries, meanwhile, the spreadof electric vehicles and other low-emission solutions is expected
to reduce CO2 emissions dramatically. In other words, the most
realistic approach right now is to achieve balance in CO2emissions by providing vehicles that raise standards of living,
using the technology of the developed countries to contribute to
the economic growth of the developing countries. The number ofcars owned in the developing world is going to growtremendously over the next few years. For the advanced
countries to demand that the emerging world curb this growthwould just be selfish.

The emerging pictures of the new automotive
society and the office of the future
Shiga: For more than 100 years since the invention of theautomobile, our cars have mainly been run by the combustion offossil fuels. Yet in a few decades, we’re told, the availability ofthese fuels could be limited. If we don’t find the answer toreplacing fossil fuels, the automobile industry could beconstrained for the next 100 years. Given the agreement to
restrict global warming to no more than 2°C above pre-industrial
levels, and the target of a 25% cut in CO2 emissions by 2020, theneed to reduce vehicle emissions to zero becomes obvious. One
such solution is the electric vehicle, a “zero-emission vehicle.” I
hope that, in tandem with the promotion of electric vehicles, wewill also develop many ideas for making life more fun andfulfilling. For example, currently we cannot bring cars indoors
because of their gas emissions, but when electric vehicles
become commonplace, the strict separation of the garage andthe rest of the house may become a thing of the past. So if the
car has an audio system, it could be used as a separate room
when somebody wants to listen to music; or, to save energy, on
hot days the air conditioning could be turned on only in the car.
This new arrangement could also eliminate many inconveniences

The Future of Offices and Vehicles
Evolving in an Environmentally Friendly Society
The role of enterprise in achieving a low-carbon society

for people in wheelchairs. Another innovative concept, which isjust an idea at this point, is that sales worker could use their cars
as their own offices at work; to adapt, the workplace couldchange, from the office buildings we know today to something
resembling multi-level parking garages. If such a change were tooccur, electric vehicles and a wide range of new KOKUYO
products could become part of the scene at many workplaces.
Kuroda: That prospect sounds like a lot of fun. It may very wellchange the way we think about cars and offices in general.
However important it is to calculate a project’s profitability andeconomic viability, the element of fun is vital, too. At KOKUYO,
we’re trying a lot of fun ideas to generate new environmental
approaches. For example, in our “environmental relay race,” wecirculate ideas on the environment and challenge each team toreach the goal first. We’re also keen to make Shinagawa, where
various companies are concentrated, into an “Eco Town,” andencourage companies located here to make presentations on
their environmental activities to local children. I think we may justbe reaching the point where individual employees’ interest inthese issues spurs them to take up activities on their own. It is thejob of managers to ensure that these ideas multiply and expand.
To raise employees’ interest, we need to make the results of theirefforts visible. For example, here at the Shinagawa office we’ve
temporarily shut down one elevator, and displayed figures
calculating the reductions in CO2 emissions in terms of distancetraveled by a passenger car, such as “this month we’ve saved
enough CO2 to travel to Matsuyama City.” It’s a visual gimmick,but the entertainment value can be used to change the way
people think about the environment.

has earned an S ranking, the highest ranking in the CASBEE∗1system. So we’ve achieved considerable eco-friendliness in a
broad sense, but we still face challenges in terms of work
practices, such as separation of trash. As an environmentally
responsible company, we have much more to do in terms ofraising employee awareness, to bring corporate strategy, brandand individual employees’ actions into full alignment.

of new initiatives, while tabling proposals for achieving a lowcarbon society. Mr. Shiga, I’ve learned a great deal from ourconversation today, and had a lot of fun. Thank you very much.
∗1 Comprehensive Assessment System for Built Environment Efficiency,
developed under the guidance of Japan’s Ministry of Land, Infrastructure,
Transport and Tourism.

Kuroda: Our efforts are just getting started too. The visible resultsfrom Eco LiveOffice Shinagawa are just beginning to emerge.
Moreover, as we discussed earlier, we are launching a wide range

Kuroda: “It’s possible to run an electric car’s
air conditioners, and schedule andconfirm recharges, from a mobile
telephone, isn’t it?”

All-paper files

Shiga: At Nissan, environmental awareness is relatively highamong our plant and production workers, but I think it is stillinsufficient among headquarters and sales company staff. We’ve
just completed a new company office building in Yokohama that

Shiga: “I separate and dispose of confidential
documents myself, but this file makes it
unnecessary to separate paper fromother materials. It’s a really useful idea!”
Nissan Leaf

06

Toward a low-carbon
society

1ways to achieve its objectives. “We all recognized that acontinuous process of raising employee awareness was the mostimportant task,” recalls Akihiko Kobayashi, senior designer at the
RDI Center. “We managed to reduce the entire office’s annual
CO2 emissions by 59.4 tons (44% of pre-rebuilding figures),exceeding our target of 56 tons (41.5%). But things didn’t always
go smoothly.”Problems occurred, for example, when the ceiling lighting
was linked to motion sensors, in the hopes of reducing the use oflighting in unmanned areas of the office. The system failed toreduce power consumption to the extent originally expected. The
reason was that, if even one person was present, the sensors
would detect that person and the lights would remain on.
Kobayashi recalls, “We realized that, while the introduction ofenergy-efficient equipment certainly enables us to save energy
and thus reduce CO2 emissions to a certain degree, just leaving
everything up to the equipment results in no savings or even aslight increase.” To achieve their target for CO2 emissions
reduction, each and every worker had to make a daily, routine
habit of turning off lights and other daily individual efforts.

Reducing office CO2 andproviding eco-products

Systems that support eco activities

Eco LiveOffice Shinagawa:
Reaping the fruit of changes
in employee awareness
KOKUYO opened this “experimental office” a year ago,
aiming to reduce CO2 emissions while raising the quality andspeed of manufacturing. The results, in terms of changed
employee mindset and exciting new products, have beenamazing.
(Photo, from left) Akira Kato
Governmental TCM Task
KOKUYO Furniture Co., Ltd.

Akihiko Kobayashi
Senior Designer, RDI Center
KOKUYO Co., Ltd.

Maiko Fukuda
Designer, RDI Center
KOKUYO Co., Ltd.

Yukiko Sugiyama
Global Sales & Marketing Department
KOKUYO Furniture Co., Ltd.

07

Where ecology and creative work go live
In November 2008, the company opened Eco LiveOffice
Shinagawa, an experimental, environmentally friendly officespace, to its customers. Located on the fifth floor of KOKUYO
Shinagawa Office, Eco LiveOffice Shinagawa is conceptualized
as an office that supports corporate growth through the use of
eco-friendly ideas. By providing a space where employees
practice environmentally friendly work methods every day, thisexperimental office points the way to new growth opportunities
for the KOKUYO Group.
Eco LiveOffice Shinagawa promotes environmentally friendly
modes of office work using ideas and approaches only KOKUYO
could devise, while showcasing to customers how KOKUYO
products, services and operations are becoming more ecofriendly. Its overriding objectives are to reduce office CO2
emissions and improve the quality and speed of manufacturing.

The key to success in ingraining eco-friendly habits in
employees is cultivating employee awareness. With this objective,
the office clarified its ecological code of conduct in writing, andintroduced Eco Style ASP, a system for visualizing the ecologicalawareness of each individual based on a point system for ecofriendly individual actions. A checksheet was prepared listingsome 30 eco-friendly actions, such as “taking the stairs to andfrom the office” and “working in the garden,” and employees
were called on to record each day the items on the list that they
had performed.

Energy-saving equipment complements
human efforts
In practical terms, 2009 was Eco LiveOffice Shinagawa’s firstyear of operation. It was a year of trial and error, of searching for

LED ceiling lighting system with motion sensors

A product born of Eco LiveOffice Shinagawa

Encouraging participation throughseasonal events
To further encourage employees to take part in eco-friendly
activities on a long-term basis, Eco LiveOffice Shinagawa
launched a series of seasonal events. For example, some
activities focus on seasonal apparel and accessories, such assummer and winter clothes and sun visors to use in the Garden
Office, the office’s outdoor workspace.
“To encourage working in the garden, we launched theGarden Photo Contest. In this contest, we collect and display
photos of ‘Garden Work Biz’ style that takes into accountstandards for working in the garden, as well as items developedfor use while working in the garden” explains Yukiko Sugiyama of
KOKUYO Furniture, one of the planning members of the event. By
continuously planning and presenting events in this way, Eco
LiveOffice Shinagawa succeeded in increasing the frequency ofuse and number of people using the Garden Office.

Promoting a fun approach to eco activities
By using systems to visualize ecological awareness, andjudging from the results of the events as described above, welearned that the key to ensuring the continuity of eco-activities is

As eco-activities began to take root, the office began using a new system called
EcoPiyo. This system uses an ID card reader to count how many times each employee
has worked in the garden. EcoPiyo is even placed at stair landings, making it easy for
employees to record their ecological activities.

to make them fun for everyone.
By creating a stream of eco-friendly activities that employees
can enjoy, Eco LiveOffice Shinagawa found that it could build
awareness in every scene and situation. The process also resultsin bringing to the market imaginative products worthy of the
KOKUYO name.
Speaking of hopes for the coming fiscal year, Kobayashi says,“We want to provide more opportunities for people to experience
Eco LiveOffice Shinagawa—not just customers, but other KOKUYOGroup employees as well. As part of that effort, we will make anactive effort to tell people about Eco LiveOffice Shinagawa and its
eco-activities, both within the Group and in the wider world.”

CO2 emissions reduction at Eco LiveOffice Shinagawa
The office succeeded in reducing CO2 emissions by 59.4 tons (44%reduction), outstripping its original target of 56 tons (41.5% reduction).
(Period: January to December 2009)

Reduction in CO2 emissions
CO2 emissions (t/year)

Maiko Fukuda, tasked with planning and operating Eco Style
ASP, adds, “By entering the information every day, little by little
the employees developed the habit of environmental awarenessand action.” The office is currently introducing a new system,
EcoPiyo, which focuses on simple and fun ways to participate ineco-friendly activities. This system employs card readers, installedat various places in the office, enabling workers to enter theirenvironmental activities instantly. After fully testing in the office,
KOKUYO hopes to launch the system as a commercial product.

150
120

50 t
6t

51.55 t7.85 t79 t75.6 tEstimate at Target
previous office

Result

60

135 t

30
0

1. Energy-saving
lighting–44%

Breakdown of CO2
emissions reduction
1. Energy-saving
26.59 tlighting
2. Energy-saving 15.79 t
air-conditioning
3. Natural ventilation 1 t
4. Other
8.17 t5. Reductions via
work practices
Total

51.55 t7.85 t59.4 t(t-CO2/year)

2. Energy-saving
air-conditioning

3. Naturalventilation

4. Other

The Worklink circular table

Interdepartmental collaborative
manufacturing
Asked how product development processes have changed
at the new office, Akira Kato of KOKUYO Furniture Co., Ltd.,
cites the example of Worklink, a circular table developed there.
“Eco LiveOffice Shinagawa is divided into four zones,
according to the nature of the operations performed in each.
There’s a zone for building understanding, another for creatingideas, a third for giving shape to ideas, and finally a zone fortelling the world. At the ‘creating ideas’ stage, we held a‘manufacturing idea contest.’ People from every part of the office,not just the development staff, offered possible seeds of new
products. At the ‘giving-shape’ stage, we held a ‘commercialization contest,’ in which opinions were gathered from
employees of various Group companies and customers regarding
a prototype, and the final improvements were made. In this way
we drove a cycle of all-out collaborative efforts for productdevelopment, accomplishing in seven months a commercialization
project that would previously have taken almost a year.”
Launched in October 2009, the Worklink circular table isspace-efficient, and has garnered praise for its flexibility forhandling increases and decreases in numbers of users.
Together with the Actina chairs, developed simultaneously,
Worklink tables are selling briskly.
Stimulating communication across organizational anddepartmental boundaries, to raise the quality and speed of
manufacturing, is a continuing theme of operations at Eco
LiveOffice Shinagawa.

5. Reductions via work practices
Worklink in use at Eco
LiveOffice Shinagawa.
The Worklink’s circularshape reduces thesurface area occupied
by each worker by up to40%.

Note: Does not include common areas or heat sources of air-conditioning systems.

Entries to the Garden Photo Contest (atleft) are posted at the entrance to Eco
LiveOffice Shinagawa. This display
shows visitors to the office various ideas
for working in the garden employees
pursue with each season.
Employees in “Garden Work Biz” style,which makes it easy to work in thegarden (above).

The Actina office chairfeatures a design for
temporary storage of
documents or personal
belongings.

08

Toward a low-carbon
society2

Reducing office CO2 andproviding eco-products

Kasumigaseki LiveOffice:Establishing new standards
through innovative officedesign proposals

An indoor oasis for contact with natureand people

KOKUYO Office System Co., Ltd. (KOS) specializes inproposing office solutions for large companies. KOS remodeled
its office in 2009 in the theme of “Crash the Rule.” The message
was simple: in today’s economic conditions, all approaches andaccepted views regarding the office need to be reappraised, fromthe roots up.
“The background was that the environment surrounding theoffice had changed significantly,” explains Nozomu Arai, theproject leader. “Preserving the environment is the mission of
every company nowadays. But meanwhile, the recession is
dragging on, and businesses have to trim office expenses any
way they can. In times like these we need to ask ourselves what
the ideal form of each office is.”In a tenant building where the scope for modification isnarrow, how can an office respond to environmental needs?
Resonance Field is full of answers to this question.

One of the office’s most popular features with customers isthe Veggie Garden, an indoor garden where employees growvegetables and other plants. “This idea sprang from a project toimprove the work-life balance for our female employees,” says
Rieko Ikeda, one of the originators of the scheme. Today, one inthree employees “owns” a plot in the garden. Last summer, theemployees held a “harvest festival,” in which they tasted the fruitsof their labors.
KOKUYO continues to work hard to make Resonance Field
the ideal office in today’s ongoing quest for a low-carbon society.

Eliminating ceiling lighting and otherapproaches

Work Style Solutions First Department
Solutions Division
KOKUYO Office System Co., Ltd.

“Everyone who comes to see our office is surprised,” says
Arai. “We don’t use the ceiling lighting. Instead, the floor isequipped with pole-shaped Sensor Lighting Stands linked tomotion sensors. When someone approaches, the light turns on,
and when the person moves away, the light switches off again.
It’s lighting on demand.”“Eliminating the use of ceiling illumination was a bold move,”
explains Hiroshi Sakai of KOS’ Solutions Development Office.
“We believe this solution, along with other approaches in thisoffice, can reduce CO2 emissions by about 30% compared withconventional office, but at this point we’re still analyzing results interms of actual benefits.”
The office applies many other innovative features. Intelligent
Work Lighting uses LEDs to change the office’s brightness andcolor temperature according to the tasks it is used for. A “Super
Eco Room” feature lets in natural light and gathers solar energy
during the day, then uses the stored energy to generate power atnight. Other systems visualize the office’s energy consumption.
These types of solutions create radical change in employee

Hiroshi Sakai

awareness.

In a rapidly changing business environment, we aimed tocreate an office space where both productivity andenvironmental awareness could be improved. In this sense,
Kasumigaseki LiveOffice provides numerous solutions andideas.

(Photo, from left) Nozomu AraiWork Style Solutions Second Department
Solutions Division
KOKUYO Office System Co., Ltd.

Rieko Ikeda

Solutions Development Office
Solutions Division
KOKUYO Office System Co., Ltd.

09

Advancing office solutions beyond
environmental needs

Veggie Garden

Sensor Lighting Standand Battery-shared Desk
Sensor Lighting Stands are pole-shaped lights that stand on thefloor and are switched on and off by motion sensors. This
energy-saving solution automatically reduces the excess lighting
in the office at times when few people are present. Similarly,
Battery-shared Desks supply power from built-in batteries for
wireless LAN environments. This arrangement obviates the needfor office automation flooringand installation of
LAN cables, reducing initial costand enhancing
layout flexibility.
Sensor Lighting Stands andBattery-shared Desks

Accelerating CO2 reductions in logistics
KOKUYO Supply Logistics Co., Ltd. (KSL) ships stationery
products to retail outlets through its logistical operations, and to
consumers via its mail-order office-supply delivery operations. In
November 2009, KSL began phasing in a number of energysaving changes, including energy-efficient lighting, energy
measurement and control systems at its distribution centers, anddelivery by bicycle in certain regions. These efforts are expected
to result in an approximate annual reduction in CO2 emissions of
6.1%, or 219 tons.

Toward a low-carbon
society3

Reducing CO2 from logistics
and providing eco-services

With a 6.1% reduction in
CO2 emissions, we aim tobe the logistics partner
customers choose first.
KOKUYO Supply Logistics Co., Ltd., who handles theGroup’s stationary products distribution, is strengthening
measures to cut CO2 emissions. We are making ourdistribution system even more environmentally friendly toensure that customers continue choosing KOKUYO as
their logistics partner.

Hiroyuki Fujimori
Control Section Head
Metropolitan IDC
East Japan CS Operations Division
KOKUYO Supply Logistics Co., Ltd.

erating systems were also introduced to power a hybrid
streetlighting system.
Activities are ongoing at KSL to ensure that customers continue to choose the company as their logistics partner while promoting environmental awareness.

KSL forms a task force and partners withan energy service company
Metropolitan IDC is one of KSL’s distribution centers. At its
vast five-story warehouse, which handles tens of thousands ofitems every day, heavy power consumption had been a chronic
issue, as its belt conveyors run continuously and lighting andtemperature must be kept optimal for operations at all times. In
February 2009, an Eco Task Team was formed. To transform
Metropolitan IDC into an environmentally friendly distribution
center, the team partnered with Creative Techno Solution Co.,
Ltd. (CTS), an energy service company (ESCO).

Achieving an eco-friendly workplace
without making sacrifices
After repeated consultation between KSL and CTS, it was
decided to begin with lighting. We replaced the 210-watt mercury
lamps and 40-watt bulb-type fluorescent lamps then in use with
88-watt and 32-watt fluorescent lamps respectively, each fittedwith high-reflectance reflectors. This simple change dramaticallyreduced energy consumption while making the facility brighter
than before.
Next, we introduced Motto Save, the energy measurement
and control system provided by CTS. This systemrenders the status of lightand air-conditioning use
visible in real time, andslashes electricity waste
by detecting when lighting
and air-conditioning systems are left on unnecesFluorescent lamp fitted withsarily. Wind and solar gen-

LCD panel at Metropolitan IDC showing
energy consumption measurement results.

Hybrid streetlighting system

Launch of a bicycle delivery
service
Amid growing popular awareness of environmental issues,
the members of the KSL CO2 reduction task team turned to amode of delivery that emits no CO2 at all: the bicycle. To adopt
the bicycle for services such as @office, KOKUYO’s online
shopping site for office consumables, KSL partnered withecohai Co., Ltd., a leader in bicycle delivery services. By
switching to bicycle delivery in certain regions, KSL expects to
reduce annual CO2 emissions by some 38 tons.

Delivery by electric-assisted
bicycle with bicycle trailer

high-reflectance reflectors

10CSR Management

KOKUYO Group CSR Charter

Basic policy

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

Management Philosophy
Gratuitous BusinessCorporate Philosophy“Contributing to society byproviding superior products”

KOKUYO GroupCSR Charter

KOKUYO Group
Code of Conduct

11

Zentaro Kuroda, founder of KOKUYO, left us
his way of looking at fulfilling one’s role insociety—even if it feels unglamorous orburdensome—which he called “gratuitousbusiness,” and our management philosophy,
which clearly states his own attitude towardbusiness. Derived from these sets of businessethics 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
our role 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 Group and of society as a whole, in fivecategories: customers, local communities,
environmental protection, business activities, andhuman rights. Group companies carry out
corporate activities based on these five principles.
In addition, we have established a KOKUYOGroup Code of Conduct that indicates the way
employees should behave on a daily basis in orderto maintain the trust and goodwill of stakeholders.
In 2009, we integrated our business strategies
and CSR activities under the primary themes of“the environment” and “business continuity.”
Furthermore, through efforts to cultivate a newcorporate culture centering on compliance, we arestrengthening our commitment to fulfilling oursocial responsibilities.

The KOKUYO Group shall be sincere in its pursuit of business and shall be an enterprise needed bysociety even as it strives to enhance profitability. This endeavor shall follow the Corporate Philosophy
that has guided KOKUYO since its founding: “Contributing to society by providing superior products.” Byliving up to its legal obligations and fulfilling its social responsibilities as a corporate citizen, KOKUYO
shall win the trust of customers, stockholders and all parties concerned and maintain the sustainability ofits business.

Customers

1. KOKUYO shall assure customer satisfaction and earn customer trust by taking thecustomer’s point of view and planning and offering products and services
accordingly, thereby serving a useful purpose in the world.
2. KOKUYO shall be a unique business that continuously offers creativity, efficiency
and comfort as it actively leads the way in the evolution of both customers anditself.

Local
Communities

1. KOKUYO understands that it is a member of the community and shall seek to be agood corporate citizen trusted by society because of the way it interacts with local
communities, contributes to society in many ways and helps to build a richsociety.

Environmental
Protection

1. KOKUYO recognizes protection of the global environment from threats such as
global warming and deforestation as one of the greatest concerns of all humanity,
and thus it shall use the combined wisdom of its employees and mobilize them tosolve these issues.
2. KOKUYO recognizes its responsibilities as a provider of products and a consumerof resources, and as such shall have in all its activities a consciousness of thethree R’s: Reduce, Reuse, Recycle.

Business
Activities

1. KOKUYO shall compete freely, fairly and transparently, shall have fair trade withour business partners and shall maintain healthy and proper relationships withgovernments and authorities.
2. To assure that KOKUYO’s relationships with its suppliers are always fair and that
KOKUYO remains a trusted company, KOKUYO shall cooperate with its suppliers
and seek to grow with them.
3. KOKUYO recognizes its duty to shareholders to increase corporate value and shallassure transparent, healthy corporate management that is trusted by society.

Human
Rights

1. KOKUYO shall respect the rights of all persons with whom it deals in all aspects ofbusiness. It shall strive for a working environment free of discrimination and shallnever tolerate child labor or forced labor.
2. KOKUYO shall respect the individuality of each employee and shall offer aworkplace that allows employees to fully express their autonomy and talents.
KOKUYO shall aim to be one of Japan’s leading companies in employee
satisfaction.

CSR Management

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

CSR Management

Risk Management/
Business
Continuity Plan

to allow flexible response to changes in thebusiness environment. Though the Group currently
retains no external directors, well-informed
outside individuals are contracted in an advisory
capacity, supporting management as a source ofneutral, objective opinions on a wide range ofissues. Out of four auditors (including two external
auditors), two are full-time auditing staff, while fourlawyers on an advisory contract provide legal
advice as the need arises.
Furthermore, in January 2009 the Groupestablished the J-SOX Committee. Straddlingorganizational lines, this committee was founded
to build and strengthen the Group’s internal
controls in tandem with the enactment of the new
Financial Instruments and Exchange Act. The
committee is particularly focused on upholding thereliability of the Group’s financial reporting.

The KOKUYO Group is preparing
plans to carry out the necessary
measures and procedures tocontinue and recover its operationsin the event of large-scale disasters
and threats such as new strains
of influenza.

KOKUYO Group Governance System

Appointment and dismissal

Appointment and dismissal

Coordination

Auditing

Board of Directors
Appointment, dismissaland supervision

Appointment and dismissal

What would happen to the KOKUYO Group’s
operations in the event of loss of some or all of its factoryor office functions due to a natural disaster? To prepare forsuch a contingency, in 2007 the Group began consideringand preparing a business continuity plan (BCP).
In 2009, the Group implemented a comprehensive
program to respond in the event of a major earthquake,such as one centered in the Tokyo area. The practicalityof the program was thoroughly tested, with training on
confirming the safety of employees, support measures
for those unable to return to their homes, and general
disaster-response training.
On April 28, 2009, the World Health Organization(WHO) raised the influenza pandemic alert level, and theJapanese government launched a new set of nationalcountermeasures against influenza. Responding to thisrising concern, the KOKUYO Group established the
KOKUYO Group New Influenza Countermeasures
Headquarters. This headquarters is tasked withconfirming the status of such threats both in Japan andoverseas, implementing measures to prevent the spreadof infection within the Group, and responding
appropriately in the event of infection.

Board of Auditors
ReportReportCertification acquired

President
J-SOX Committee

Inquiry
Group Management Conference
Response

Risk and Compliance Committee

Instructions
ReportCoordination

Environmental Committee

Accounting
auditsDiversity Promotion Committee
Central Workplace Safety
and Hygiene Committee

Head office divisions(for business execution)

Management Audit DivisionInternal auditing

Coordination
Internal auditing

ControlGroup operating companies

Internal audit system

Accounting auditors

The KOKUYO Group places great emphasis on
corporate governance based on the core values oftransparency, speed, and fairness, and isreinforcing working systems to uphold thesevalues. While clarifying operating authority andresponsibilities under the holding company
system, we are also making efforts to strengthen
overall supervisory functions and enhance
corporate governance. The Group’s management
framework, basic structure, and essential points
on Group operations under the new system are
stipulated in the KOKUYO Group GovernancePrinciples, established in line with the introductionof a holding company system in October 2004.
The Group has an auditing system in place,and each of the seven members of the Board of
Directors is appointed to a term of only one year

General meeting of shareholders

Holding company(Group parent company)

Corporate governance andinternal controls

Establishing and implementing
a business continuity plan

KOKUYO Furniture Co., Ltd., established a BCP
pilot project in FY 2007. The project carried out
preparations for every contingency, listing andevaluating the risks to vital aspects of the company’s
supply chain management (SCM) system andpreparing a number of recovery scenarios. In FY 2008,
KOKUYO Furniture obtained international certification(BS 25999∗1) for its business continuity management
system (BCMS), becoming the first Japanesecompany in the office furniture industry to do so.
∗1 These guidelines clarify the capabilities required of an organization, in the event ofa pandemic or other disaster, to minimize interruption of operations and to counterthreats to the continuation of business. Promulgated by the British Standards
Institution (BSI), BS 25999 consists of the Code of Practice (Part 1), announced in
November 2006, and the Specification (Part 2), announced in November 2007.

12

Environmental Report

EnergyWater

Relationship Between
Business Activities
and the Environment
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 here.
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.

13

89,256 GJ
41,000 m3

INPUT

EnergyWater

282,384 GJ
104,000 m3

Material input
Paper
MetalsPlastics
LumberOther

61,180 tons
39,459 tons
13,623 tons
2,990 tons
556 tons
4,552 tons

EnergyWater

42,990 GJ
2,000 m3

Containers and packaging
9,567 tons

Planning, researchand development

OUTPUT

Greenhouse gas
3,507 t-CO2
SOx0.001 tons
NOx
0.5 tons
Volume of waste
emissions462 tons
Drainage
41,000 m3

Manufacturing

Greenhouse gas
11,889 t-CO2
0.07 tons
SOx
1.45 tons
NOx
Volume of waste
emissions
6,119 tons

Water usedcyclicallyin factories
134 m3

93 kg
COD
20 kg
BOD
Drainage∗ 84,000 m3∗ Of this, the volume
discharged into
public waters is
71,000 m3

Sales andserviceGreenhouse gas
2,206 t-CO2
SOx0.01 tons
NOx
4.26 tons
Volume of waste
emissions
159 tons
Drainage
2,000 m3

Energy
Water

156,555 GJ
26,000 m3

Energy224,246 GJ

Total sales volume219,000 tons

Input parameters
Indicator

EnergyUnit

GJ

Calculation method
Electricity, gas (city gas, LPG, natural gas), oil (gasoline, light fuel oil, kerosene)
The unit calorific value employed for electric power is the daytime 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 for fuels is that set forth in the Manual for Calculation and Report ofGreenhouse Gas Emissions Ver. 2.4 (March 2009). The unit calorific value employed for city gas since theprevious year is that set forth in the Environment Ministry’s Guidelines for Calculating Emissions ofGreenhouse Gases by Businesses (Draft ver. 1.5).

Water

m3

Total amount of tap and industrial water used

Material input

tonVolume used as raw material during product manufacturing

PackagingtonVolume of material used for the product packaging

The unit calorific value employed for fuel from FY 2009 onward is the value shown above.

Output parameters
t-CO2

Total volume of CO2 generated by consumption of electricity, gas and oil, and other gases generated byshipping vehicles (CH4 and N2O emissions calculated as those of CO2).
The volume of greenhouse gas emissions generated by distribution (contracted delivery) is calculatedusing the t-km method.

CO2emissionst-CO2

Volume of CO2 generated by consumption of electricity, gas and oil (see page 19)
The CO2 emission coefficient for electric power is the average value for all power sources (0.378 kg
CO2/kWh) published in 2000 by the Federation of Electric Power Companies of Japan.
The CO2 emission coefficient used for fuels is that set forth in the Manual for Calculation and Report ofGreenhouse Gas Emissions Ver. 2.4 (March 2009). For city gas, the CO2 emission coefficient is that of the
Ministry of the Environment’s Guidelines for Calculating Emissions of Greenhouse Gases by Businesses(Draft ver. 1.5) used since the previous year.

SOx, NOxton

Total volume of emissions generated by vehicles and those from currently operational, smoke-generating factories.

Waste
emissionstonVolume of waste emissions: Total volume of waste substances and valuable substances generated bybusiness locations.
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 (see page 21).
Final disposal volume of waste: Out of all waste products, the total volume of those that are simply
incinerated or directly buried in landfills (see page 21).

Drainagem3

Total volume discharged into public waters and sewage systems

COD, BOD

kg

Volume released into public waters from domestic plants that are mandated by law to check water quality.

Greenhousegasemissions

Distribution (storage
and shipping)

Distribution(contracted
Volume ofresources reuseddelivery)inside businesslocations 176 tons

Greenhouse gas
6,201 t-CO2
SOx0.001 tons
NOx
0.32 tons
Volume of waste
emissions
6,767 tons
Drainage
26,000 m3

Total shipping volume
92 million t-km

Greenhouse gas 15,302 t-CO2
SOx
0.1 tons
NOx
105 tons

Usage

Recovery of used products
974 tons
Reuse of used products
31 tons

The CO2 emission coefficient employed for fuel from FY 2009 onward is the value shown above. For city gas, the CO2 emission coefficient is that of the
Ministry of the Environment’s Guidelines for Calculating Emissions of Greenhouse Gases by Businesses (Draft ver. 1.5) used since the previous year.

Other parameters
Total delivery volume

t-km

Water reused in factories

m3

Volume used cyclically inside business locations

Resources reused on
business locations

ton

Amount of packaging used by companies such as KOKUYO Logitem Co., Ltd., and KOKUYOSupply Logistics Co., Ltd., that is reused inside business locations

Total sales volume

tonTotal retail sales of stationery and furniture

Collection of used products

tonVolume of used products collected from customers by KOKUYO Logitem Co., Ltd.

Reuse of used products

tonVolume of products reused, out of those used products collected from customers by
KOKUYO Logitem Co., Ltd.

Total amount of contracted delivery of furniture and stationery products (excl. KAUNET deliveries)

14

Environmental Report

KOKUYO Group Environmental Vision

Environmental Vision/
Medium- to Long-term
Environmental Action
Plans and Results
Environmental Vision updated
This year, the KOKUYO Group updated the
KOKUYO Group Environmental Vision in accordancewith the national government’s call for comprehensive
initiatives toward “a recycling-based society,” “a lowcarbon society” and “a symbiotic society,” in order toachieve the overall goal of “a sustainable society.”
The Environmental Vision consists of an
Environmental Philosophy to be observed by theGroup, and an Environmental Policy outlining specificareas of endeavor. “Biodiversity” has been added tothe existing areas of prevention of global warming;
resource conservation and recycling; procurement,
development and supply of eco-products; legal
compliance and pollution prevention; information
disclosure and communication; and environmental
management, for a total of seven areas of endeavor.
This update of the Environmental Vision provides
a jumping-off point for formulation of the new“Green Initiative 2020” program for new medium- tolong-term environmental action plans.

15

Environmental Vision

Environmental Philosophy

Fundamental Philosophy

Based on the corporate philosophy we have followed since our foundation, “contributing tosociety by providing superior products,” the KOKUYO Group will work toward a sustainable
society, recognizing environmental problems such as global warming, exhaustion of resources and preservation of biodiversity as universal and enduring issues. Drawing upon thewisdom of all company personnel, we will take the initiative and address these problems.

Since KOKUYO’s founding, our corporate
objective has been “Contributing to society byproviding superior products.” In line with thisobjective, we draw upon the collective wisdomof all company personnel and act Group-wide toaddress a common long-term issue relevant to
the whole world - environmental conservation.

Environmental Policy

Environmental Policy
1. Prevention of Global Warming
To prevent global warming, KOKUYO works
to reduce emissions of CO2 and other greenhouse gases.

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

3. Procurement, Development and Supplyof Eco-Products
KOKUYO practices green procurement toobtain product components, and develops
and supplies eco-products. Additionally,
environmental impact is minimized throughtechnological innovation and the developmentof environmental business models.

Environmental
Vision update

Prevention of
Global Warming

To achieve a low-carbon society, KOKUYO works todrastically reduce emissions of CO2 and other greenhouse gases.

Resource
Conservation andRecycling

To help achieve a recycling-based society, we use theearth’s limited resources sparingly and strive to fulfill
our obligation to reduce, reuse, and recycle.

Procurement, Development and Supply of
Eco-products

KOKUYO works to develop new environmental technologies
and practice green procurement in order to mitigate environmental impact throughout all stages of the product life cycle.

Biodiversity

Through business activities executed with consideration for biodiversity, KOKUYO makes efforts to minimize impact on and preserve the ecosystem.

Legal Complianceand Pollution
Prevention

KOKUYO complies with environmental laws, voluntarystandards and industry policies on which the company has
agreed. Further, every effort is 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 enhance our environmental conservation activities.

Environmental
Management

All employees work together to develop new environmentally friendly business models, and continue to lighten
environmental impact and improve business practices.

4. Legal Compliance and Pollution Prevention
KOKUYO complies with not only environmental laws, but also with voluntary standards and industry policies on which thecompany has agreed. Every effort is also
made to prevent pollution.

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

6. Environmental Management• Our environmental management strives to fulfill 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 of frameworks to achieve these targets, the nurturing of human resources, and the development of evaluation systems are themeans we use in striving to enhance ourenvironmental and economic effectiveness.

Green Initiative 2020

(scheduled for enactment)(KOKUYO Group program for medium- to long-term environmental action plans)Green Initiative 2010

Targets and results for 2009 (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)

TargetInformation
disclosure andcommunication

10.6% reduction

24.0% reduction○

10% reduction

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

Improvement of shipping and delivery
data accuracy

Expansion of scope of shipping anddelivery data gathered○

4% reduction over the year ended March 31,
2007

Expansion of modal shift

Improvement

79.4% 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

83% reduction○

64% reduction (this rate will be sustained forearly attainment of targets)

Improved recycling rate for the overall
volume of waste

Maintain present progress levels

95.3%

○

91% (this rate will be sustained for earlyattainment of targets)

Promotion of “zero emissions”

Maintain present progress levels

Expansion (5 distribution points)○

Expansion to all business locations

Reduction in the ratio of products
marked with the Eco X markStationery products: 35%
Furniture products: 7%

Stationery products: 40%
Furniture products: 6%×○

0% (in the 2011 KOKUYO General Catalog)

Reduction in hazardous chemical
substances contained in products

Compliance with the RoHS Directive

Maintain compliance with the RoHS
Directive―

All supply sources will follow these guidelines.

Reduction in hazardous chemical
substances used in manufacturing processes

Maintain present progress levels(eliminating toluene and xylene)

Toluene: 46.0 kg reduction
Xylene: 34.2 kg reduction○

All materials will be free of toluene.

Introduction of a management system tothe supply chain

—

—

―

Set every year

Disclosure ofenvironmental 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

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
and business 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

Improved third-party evaluations (corporate
environmental management surveys)

Make improvement

Improved from 111th place to 84th
place

○

Continual improvements in environmental
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○—

Measures aimed atresource conservation
and recycling

Strengthening ofmanagement systems forhazardous chemical
substances

Activities contributing tosociety

Environmental
management

Targets for 2010

ResultReduction of CO2 emissions (over theyear ended March 31, 1991)

Prevention of global
warming

Procurement, development Development ofand supply of eco-products eco-products
Legal complianceand pollution
prevention

Evaluation

Items to be addressed

16

The Fourth Year of Yui no Mori Project Focuses on
the Original Functions of the Forest

Environmental Report

Forests’ yearly improvements
in CO2 absorption

Initiatives in
Biodiversity
KOKUYO is promoting initiatives
that strike a balance between
environmental protection andbusiness activities.

Collecting and identifying
species at the riverside

Objectives of Yui no Mori
The KOKUYO Shimanto Yui no Mori project in
the Shimanto River basin of Kochi Prefecture is
now in its fourth year. Its purpose is to rejuvenate
the forests’ original functions, such as supporting
ecosystems and absorbing CO2, and use woodfrom forest thinning to create commercial products,
thereby fostering a virtuous cycle between
business and environment. Activities connected tothe project aim to (1) promote a society that is inharmony with nature through surveying andmonitoring in support of biodiversity; (2) form a lowcarbon society through appropriate forest
management, including forest thinning; and (3)achieve a recycling-based society through theeffective use of wood from forest thinning.

Improved ecosystems
confirmed in monitoring
In 2009, the project carried out surveys ofvegetation, of the volume of water flowing from soils,
and of water quality and biodiversity in rivers basedon stream-clarity standards. The vegetation survey
examined the rate of forest regeneration afterthinning, caused by increased exposure to sunlight.

17

By carefully studying plant species, heights anddensities, and their distribution, the project teamlearned that the number of plant species in the forest
had increased from the previous year, from 57 to 81.
In preparation for examining the effects ofthinning in Yui no Mori on water quality andecosystems, KOKUYO employees conducted theirfirst survey of stream clarity, measuring water quality
and biodiversity in the Shimanto River. Upon
measuring transparency, temperature, pH balance,
and the number of species living in the river, theproject team determined that the stream was clearer
than in the previous year. Many of the creaturesliving in it were native to clear streams. As a result,the prefectural government awarded the Shimanto
River grade 1, indicating top-level water quality.
After forest thinning, increased biodiversity canbe seen in Yui no Mori.

Furniture using FSC-certified
thinned-wood from Yui no Mori
joins standard product line

The FSCcertification logo

To date, the KOKUYO Group has thinned
some 194 ha of forest through the Yui no Mori
Project. CO2 absorption is expected to improveaccordingly. Following a Kochi Prefectural
Government survey and an examination of CO2
absorption by a third-party committee of forest
experts, the Group received a prefectural
Certificate of CO2 Absorption, in recognition of theabsorption of 2,653 tons of CO2. In collaboration
with the local community, the Group intends tocontinue its efforts to preserve the environment,
promote CO2 absorption, and make use of woodfrom forest thinning.

Handover of CO2 Absorption Certificate by the Osaka
Office Director of the Kochi Prefectural Government

For over 10 years, the KOKUYO Group has usedwood from forest thinning for developing and producing
an array of furniture products. To increase theseproducts’ customer base and widespread use,
KOKUYO launched two models of conference tables
produced using Yui no Mori thinned wood and havereceived Forest Stewardship Council (FSC) forest
management certification. These products havebecome part of standard lineups.
KOKUYO is currently the only producer of officefurniture that has received FSC certification.

Broadening Our Product Range and Human Network to Safeguard
the Precious Natural Environment for Future Generations
Reed calligraphy pen

Widening the circle of supporters
protecting Lake Biwa with the reed

Protecting the environment of
Lake Biwa and the habitats of thecreatures that live in and around it
Shiga Prefecture is home to Lake Biwa, vitalwater source for many regions around Kyoto,
Osaka and Kobe. Shiga is one of Japan’s mostenvironmentally progressive prefectures and is thehome of KOKUYO Product Shiga Co., Ltd. (KPS),
the KOKUYO Group’s main factory for Campus
Note notebooks and other paper products. This
company strives to protect the environment
through its daily operations, saving energy andreducing waste generation. KPS also seeks toprotect the reed marshes of Lake Biwa and utilize
the aquatic plant.
These reed marshes are of great ecologicalsignificance. The little grebe (Tachybaptus
ruficollis), a waterfowl, nests in these reeds, and atype of carp called the nigorobuna (Carassius
buergeri grandoculis), found only in Lake Biwa,
spawns and raises its young there. In recent years,
the populations of both these species have beenfalling.
One factor in this population decline is thedisappearance of their habitat. The extent of thereed marshes has fallen to half the level of half acentury ago. As the reeds grow, they filter the lakewater by absorbing nitrogen and phosphorus fromit. Maintenance of reeds helps them fully exert thisability; as old reeds wither, they need pruning togive new shoots room to grow.
To protect the incredible biodiversity of Lake
Biwa’s original natural environment, KPS
undertook a project to find new uses for the reeds
and to promote use of such products throughout
the region. Since its launch two years ago, thisproject, called the ReEDEN Project, has
dramatically expanded the possibilities for reedbased products and their sales. The project’s
stationery series include not only paper products
made partially from reed pulp, such as notebooks,
business cards and photocopying paper, but also
calligraphy pens made directly from reeds.
In products sold in 2009, a total of 28 tons ofreeds was used. According to KOKUYO’s own
calculations, the volume of reeds maintained forthis purpose was sufficient to filter the nitrogenfrom 0.58 million tons of water and thephosphorus from 2.1 million tons of water.

The ReEDEN Project does not stop at
developing and selling reed-based products. KPS
was determined to extend the project to activities
spanning the entire region, including participationof volunteers in reed pruning and sending
personnel to schools to teach children theimportance of the reeds. With these goals in mind,
KPS organized a group of 21 companies, mostly
located in Shiga Prefecture, to form the Network
to Protect Lake Biwa with the Reed. Toshihiro Ota
of KPS’ Environmental Promotion Group serves as
the network’s secretariat, recruiting volunteers forreed pruning from among the members,
distributing an e-mail magazine, and otherwise
keeping members regularly informed of
KOKOYO’s and other network members’ efforts.
In February 2010, some 180 volunteers from12 companies conducted a reed pruning exercise
at Lake Nishi-no-ko in nearby Azuchi-cho. “I
hope,” said Ota, “we can inform not only thepeople of Shiga Prefecture but also people in theentire Kyoto-Osaka-Kobe region—in fact,
everyone who benefits from the waters of Lake
Biwa—of the importance of the reeds.”
The network aims to steadily widen the circleof supporters of Lake Biwa preservation.

This lagoon, known as Lake Naiko, is home to a wide
expanse of reeds.

The ReEDEN
SeriesThe ReEDEN Series, launched in 2007,
is a series of stationery products createdusing the reeds of the Lake Biwa/Yodo
River system. Born from a desire to“transform Lake Biwa into an earthly paradise with our own hands,” these products
have gradually expanded in range, frompaper products to writing instruments. In
2009, KOKUYO presented ReEDEN-noKobako, an exhibition commemorating thesecond anniversary of the ReEDEN Series.
The exhibition succeeded in introducing
ReEDEN to an entirely new type of audience.
The ReEDEN Project has earned highacclaim for its successes in both protecting the environment of Lake Biwa and nurturing the fledgling reed-products market.
In the Eco Services category of the Eco
Products Awards, which officially recognize excellent environmentally friendly
products and services, the ReEDEN Project was given the Award of Excellence(Eco Products Award Promotion Association Chairman’s Award).
ReEDEN-no-Kobako
exhibition (at apreserved private homein Omi-Hachiman,
Shiga Prefecture)

ReEDEN Project
participants after theawards ceremony

18

Environmental Report

Plant. Through this program, operational improvements alone (such as reducing nighttime/holiday
standby electricity consumption, and setting rules
for facility use during production periods) resulted
in a 222-ton reduction in emissions.

Overview of the year ended
Dec. 31, 2009

Measuresagainst Global
Warming
Target for the year ended Dec. 31, 2009

Volume of CO2 emissions
10.6% reduction from the levels of the
fiscal year ended March 31, 1991
(27,915 t-CO2)

Results for the year ended Dec. 31, 2009

Volume of CO2 emissions
24.0% reduction from the levels of the
fiscal year ended March 31, 1991
(23,742 t-CO2)In FY 2009, the KOKUYO Group achieved a4,746-ton reduction in the volume of CO2
emissions compared to the previous year, for a
total of 23,742 tons. We estimate that a 1,462-ton
reduction resulted from operational improvements,
a 245-ton reduction from facilities improvements,
and a 3,039-ton reduction from decreased
production volume and merging and streamliningof facilities. Therefore, actual emissions reductions(resulting from operations and facilities
improvements) amounted to 1,707 tons, a 14.2%
reduction from FY 1990 emissions levels.

Measures against global warming
adopted during distribution
CO2 emissions resulting from distribution(storage and shipping) were 872 tons lower than in
the preceding year.
At KOKUYO Supply Logistics Co., Ltd., westrengthened efforts to reduce CO2 emissions due
to distribution of disposable office supplies, suchas use of energy-saving light fixtures and deliveryof supplies by bicycle.

Measures against global
warming adopted at factories

Related information

In FY 2009, standardized emissions reduction
measures were adopted at all domestic KOKUYO
factories, and with implementation of measuressynchronized across the board, deeper cuts inemissions were achieved. The outcome was a
3,195-ton reduction compared to the previous
year. Because 2,532 tons are deemed to result
from decreased production levels, the actual
reduction in emissions is estimated at 663 tons.
Last year, a system aimed at making processes visible was implemented at the Shibayama

Measures against global
warming adopted in offices
CO2 emissions from offices were 679 tons
lower than last year.
We continued promoting the Cool Biz programand No Overtime Day, and the two newenvironmentally friendly offices, Eco LiveOffice
Shinagawa and Resonance Field 3.0, helped KOKUYO
propose environmental solutions to our customers.
At the Shinagawa office, a system aimed at

CO2 emission volume changes(t-CO2)30,00031,22028,78028,33729,311

p. 10

Breakdown of CO2 emissions
by business area
23,74220,00010,000

90

19

05

06

07

08

Related information

09 (fiscal year)∗ Starting in FY 2009, the CO2 emission coefficient used for fuels excluding city gas is that set forth in the
Manual for Calculation and Report of Greenhouse Gas Emissions Ver. 2.4 (March 2009), which is published by
the Ministry of the Environment and the Ministry of Economy, Trade and Industry. Calculated with the CO2
emission coefficient used up through FY 2008, the 2009 emissions volume comes to 23,733 tons of CO2.

Offices
5,660(24%)
Distribution (storage
and shipping)
6,196
(26%)

p. 7-9TOPICSKAUNET Catalog obtains
carbon offset accreditation
The KOKUYO Group is pursuing acarbon offset initiative for catalogs. Amongthese, measures to offset CO2 emitted
during printing, binding and shipping of our
KAUNET office supply mail-order catalog
received our first accreditation under aCarbon Offset Accreditation Systemoverseen by the Ministry of the Environment.

KAUNET catalogs with accreditation labels on the covers

Breakdown of CO2 emissions by source(t-CO2)

28,4880

making processes visible allowed us to keep tabs
on energy consumption and achieve a 132-ton
reduction in emissions, through measures such as
adjustment of running periods for air conditioning
systems (a major consumer of power) as well as
reducednighttime
power
consumption,suspension of elevator operations and so on.

Gasoline 7%

Others 2%

City gas 8%
Factories
11,886(50%)

LPG 8%
Electricity
75%

Environmental Report

Measures to reduce levels of chemical
substances in product development

TOPICS
Making processes visible at construction sites
helps reduce CO2 emissions
KOKUYO Engineering & Technology (KET) is acontractor entrusted with overseeing overall officespace design, interior renovation and facilities
installation at over 16,000 sites a year. Until now,
one of KET's pressing concerns has been how tobuild a system aimed at ensuring improvement of
the quality and reliability of workmanship.
KET addressed this concern by developing
the original GLASS System, which allows
centralized management of all types of
information including blueprints and construction
processes on a server, and sharing of information
among all parties involved in executing the work.
In this system, photographs at each stage of thework are taken with a mobile camera anduploaded. KET staff check them as needed,manage the work process remotely and provide
instructions to those on site. Clients can also view
the progress of work, the staff conducting it andthe layout blueprints, allowing confirmation of

A screen from the GLASS System(simulated image)work quality and maximum reliability as clients
receive information in real time.
At the same time, implementation of the
GLASS System also results in reduced CO2
emissions, as staff who formerly visited sites
using company cars and so forth can now checkthem remotely. In the second half of 2009, thevolume of CO2 emission reduction was 6.8 tons*,
equivalent to 2.5% of overall emissions from
KET. Considering that almost half of CO2
emissions in the transport sector in Japan result
from cars for personal use, we see steady effortsof this sort as an important means of reducing
environmental impact.
We will continue making efforts to ensureboth quality workmanship on the construction
site and environmental friendliness.
∗ The CO2 emission coefficient used for fuels is the value
set forth in the Manual for Calculation and Report ofGreenhouse Gas Emissions Ver. 2.4 (March 2009).

A staff member photographs workat the site

A KET administrator checks the
progress of work

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.
At KOKUYO S&T, in order to reduce materials
covered by the RoHS Directive and otherhazardous substances, we receive written
confirmation from suppliers, and perform in-houseinspections to verify that information using X-ray
fluorescent analysis equipment to ensure thathazardous substances are not present. In thelatter part of FY 2009, we completed these
inspections, and we plan to strengthen measuresfurther.
At KOKUYO Furniture, we regularly store in a
database inspection results on materials coveredby the RoHS Directive, which are based on the
results of inspections carried out at suppliers, andundertake other necessary measures.

Dealing with
Hazardous
Substances
Measures to reduce levels of chemical
substances in the production process
In 2009 at the Shibayama Plant of KOKUYOFurniture Co., Ltd., we reduced the amount of xylene
used to zero by switching from solvent-based to waterbased coating. We do not use xylene at the Mie Plant.
In response to revisions to materials covered by the
PRTR Law, we are revising our MSDSs while working to
implement thorough management and reduce such materials.

Chemical substances covered under the PRTR Law
Ordinance
numberName of chemical
substance

Amount
used

1
307
270
102
227
16
43
232
63
309
224
93
346

Zinc compounds (water-soluble)
Polyalkyl ether
Di-n-butyl phthalate
Acetic acidTolueneMonoethanolamine
Ethylene glycol
Nickel nitrate
XylenePoly(oxyethylene) nonylphenyl ether
1,3,5-trimethylbenzene
Chlorobenzene
Molybdenum and its compounds
Total

1,047.0
698.1
523.5
184.5
175.8
117.6
106.6
60.5
21.6
18.3
14.4
10.0
1.0
2,978.9(Unit: kg)

Volume emitted/volume transported
AtmosphericemissionvolumeVolume ofdrainage
discharged

Volume ofwaste
disposed of

Subtotal

Volumeremoved intreatment

0.0
698.1
0.0
20.6
101.5
111.7
0.0
0.0
21.6
18.1
14.3
9.9
0.0
995.8

2.6
0.0
1.1
4.9
0.1
5.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
14.6

0.0
0.0
8.1
11.0
0.2
0.0
0.1
42.4
0.0
0.0
0.0
0.0
0.0
61.8

2.6
698.1
9.2
36.5
101.8
117.6
0.1
42.4
21.6
18.1
14.3
9.9
0.0
1,072.2

540.3
0.0
0.0
0.0
71.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
611.9

Volumerecycled

Volumeconsumed

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
0.0

504.1
0.0
514.3
148.0
2.4
0.0
106.5
18.1
0.0
0.2
0.1
0.1
1.0
1,294.8

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 businesslocations as other substances as described above, or as components of or accompaniments to products.

20

Environmental Report

Working toward zero emissions
through promotion of the 3 R’s

Overview of FY 2009

Resource
Conservation
and Recycling
Measures
Target for the year ended Dec. 31, 2009
1. 64% reduction from the levels of the
fiscal year ended March 31, 1998 infinal disposal volume of waste
produced

The KOKUYO Group emitted 13,507 tons ofwaste in FY 2009, which was 2,972 tons less thanin the previous fiscal year. Also, drawing on
improved accuracy in tabulating general waste
volume (involving the rigorous application ofhandling standards at certain sites), recycling
volume and final disposal volume∗1 were adjusted
for the past several fiscal years.
Since FY 2007, the Group has exceeded its
targets for recycling rate∗2 and final disposal
volume. We intend to continue to improve our
performance in appropriate waste treatment andrecycling.

An independent review conducted in February
2009 determined that KOKUYO MVP’s Aoya
Factory had not achieved zero emissions∗3. The
main reason for this failure was that files withdefective affixing had been simply incinerated.
Later, an agreement was signed with a newwaste-treatment operator, and an on-site
inspection of the final-processing site confirmedthat these materials were recycled. As a result,zero-emissions status was achieved at Aoya
Factory.
Also, five Group distribution centers, including
KOKUYO Supply Logistics Kinki IDC, achieved
zero emissions for all emissions, including generalwaste.

∗1 Final disposal volume: Out of all waste products, thetotal volume of those that are simply incinerated or
directly buried in landfills.
∗2 Recycling rate: Total volume of waste products that arerecycled as materials (material recycling), as energy(thermal recycling), or as valuable substances, as apercentage of all waste products.

Reuse and recycling ofused products
When delivering products to customers, we
also collect their used and unneeded products
and recycle or reuse them when product condition
permits.
In FY 2009, KOKUYO Logitem Co., Ltd.,
collected 974 tons of used products including
office desks and chairs. Of that, 31 tons werereused, and 556 tons were disassembled,
separated by material type, and recycled.

∗3 “Zero emissions” is defined in the KOKUYO Group as
reduction of the final disposal volume of industrial
waste to zero.
Disassembling and separating used chairs

2. Maintenance of a 91% or greater
recycling rate of total waste volume
Volume of waste products recycled compared withfinal disposal volume

Results for the year ended Dec. 31, 2009
1. 83% reduction from the levels of the
fiscal year ended March 31, 1998 infinal disposal volume of waste
produced
2. Maintenance of a 95.3% or greater
recycling rate of total waste volume

Recycled(t)
20,00015,00017,601

17,557

Final disposal volume

16,47913,581

13,507

10,0009,849

16,216

16,586

15,775

12,872

1,385

971

704

635

5,000
3,732
0

97

06

07

08

∗ Waste produced at construction sites is not included.

21

09 (fiscal year)

Breakdown by source ofwaste produced
Offices
621 tons(5%)
Factories
6,119 tons
6,767 tons
(45%)
(50%)

Distribution(storage and shipping)

Breakdown by material of waste produced(figures in parentheses are recycling rates)
Others
1,712 tons (77.8%)
Plastic
1,378 tons (82.7%)
Metal
2,393 tons (100%)Paper
8,024 tons
(99.8%)
Total
13,507 tons
(95.3%)

Environmental Report

TOPICS

Efforts in 2009

Providing
Eco-Products
Target for the year ended Dec. 31, 2009

Percentage of products displaying Eco X markStationery: 35%
Furniture: 10%

Results for the year ended Dec. 31, 2009

Percentage of products displaying Eco X markStationery: 40%
Furniture: 6%∗1
∗1 • The Eco X mark display percentage for furniture is thepercentage of all furniture products in the General Catalog, excluding low partitions, room dividers, and instore fixtures and furniture.
• The data for results shown in the 2010 KOKUYO General Catalogs for stationery and furniture, published in
December 2009, was the latest data available when
the catalogs were produced, and thus the values differ.
Manufacture

Recycled
materials

Alternative
Forestmaterials preservation

Manufacture

Distribution

Resourcesaving
designDistribution
Zero
Eco X
marks

Disposal

Usage

Ecopackaging

Ecoshipping

Long life

Usage

Disposal

EnergyVOC
conservation measures

Recycling

For both stationery and furniture:
A product must be eligible to receive at least one “original environmental mark” at each of the four life
cycle stages, or the product will bemarked with an Eco X mark.

KOKUYO Group has been marking every
product in its General Catalog that is notenvironmentally friendly in each and every stage of
its life cycle with the Eco X mark. The Group’s aim
is to eliminate all Eco X marked products. In FY
2009, the Group achieved its target for Eco X
marked product ratio in furniture products. In
stationery products, the Group actively promoted
the use of recycled materials and slimmed down
its packaging, changing the specifications for its
products one by one. However, in comparison
with products slated for improvement, there weremore products in stock that were slated for
discontinuation than originally assumed, so thetarget was not fulfilled.
In 2009, the second year of the zero Eco X
mark initiative, the Group concentrated on
discovering issues and addressing them, with aview to tackling them and achieving zero Eco X
marks. The most pressing issue uncovered wasthat the only option available at time of disposal
was recycling. Some product groups could not be
evaluated on this basis. For example, material
recycling was not possible for some plastic
products, such as OA filters; for others, such aslarge cutters, separation and sorting of materials
was hazardous. For these products, KOKUYO
recognized that new evaluation methods andperspectives were needed. The Group is
continuing to seek out solutions for issues such asthese, one by one.

Packaging reuse begins

Initiatives for reception chairs

In furniture products, KOKUYO focused on
applying its standards for the distribution phase of
the product life cycle. These standards were adopted
as part of a revision of KOKUYO’s environmental
performance standards for Eco X mark products. The
Group revised packaging configurations of its
products, and worked on ways to raise shipping
efficiency. In 2009, KOKUYO launched the“returnable intermediate packaging” initiative.
Previously, packages had been wrapped in plasticbags before being placed in cardboard boxes anddelivered to customers. After delivery, customers
would throw the plastic bags away as garbage. In
response to this issue, personnel in charge of productdevelopment, production management, and quality
assurance worked together to propose returnableintermediate packaging. In this solution, products
were wrapped in nonwoven tubular sacks, eachcolor-coded for the distribution center of origin orlabeled with a code for the factory that produced the
product. This initiative will be applied in sequence,starting from new models of reception furniture in the
FY 2010 catalog.

KOKUYO adopted a number of measures toreduce the environmental impact of the Aldeo
reception chair. In the distribution phase, aknock-down design∗2 was adopted, and the
packaging size during shipping was reduced toabout 80% of the former size. For the
manufacture phase, upholstery consisting of 25%
polylactic acid (PLA) from industrial maize and75% recycled polyester was used as the surface
material. The main structural material was 100%
FSC-approved wood. KOKUYO is the only officefurniture producer to require FSC certification on
its own initiative, and is the first in the Japaneseindustry to use this combination of FSCapproved wood and PLA in reception furniture.

Reusable intermediate
packaging∗2 Knock-down design: Design of furniture to be
shipped as parts and assembled on-site, intended toraise the efficiency of both storage and shipping.

Aldeo reception chair

Reuse label attached to returnable intermediate packaging

22

Social Responsibility
ReportOur basic approach

PromotingDiversity
KOKUYO recognizes that
promoting diversity is essential
for its continued growth anddevelopment.

At KOKUYO, we define “diversity” as “an environment that supports a wide variety of work methods and approaches, and recognizes a wide rangeof circumstances and values, so that each employee can achieve his or her maximum performance.”
KOKUYO positions this management issue as one
that demands the participation of all employees,
male and female, able-bodied and disabled. Under
the direction of the Diversity Promotion Committee,
established in August 2007, Group-wide efforts areunder way to promote and strengthen diversity.
In FY 2009, KOKUYO linked three Group locations in a live Forum to Promote Work-Life Balance.
This event succeeded in raising awareness of the importance of striking a balance between the pressuresof work and the needs of home and personal life. The
forum also served to inform employees of theGroup’s action plan, based on the Act on Advancement of Measures to Support Raising Next-Generation Children, encouraging each Group company tomove forward with its own activities in this regard.

Four basic themes in promoting diversity
Establishing a framework and promoting its use
Creating a framework that flexibly embraces diverse
ways of working
Spreading the use of various systems for diversity
within each company

Sharing the significance of promoting diversity
Building a shared understanding toward achieving
comfortable and supportive work environments
Building a shared understanding toward achieving
environments that put people’s abilities and talents to work

Achieving work-life balance
Creating environments that support both work andpersonal life
Achieving highly productive work methods

Supporting the activities of a diverse workforce
Achieving diversity through diversity in hiring
Promoting the active participation of women in theworkplace23

Supporting a balance between
work and childcare/nursing care
KOKUYO is developing a full suite of management systems to support a balance between theneeds of work and family. We are creating work
environments that can accommodate such life
events as childbirth, childcare and nursing care.
KOKUYO’s childcare-leave system is generous
beyond legal requirements: employees may takeleave to raise a child until the April 30 after the childhas turned one year old, or until the child is one year
and six months old, whichever is longer. This
arrangement was adopted in consideration of the
gap that may arise between the time the child is
eligible for nursery school (first birthday) and thestart of nursery school (in Japan, usually early April).
Our employees tell us that this system enables themto manage their return to work without undue
hardship. KOKUYO also introduced a system of
reduced work hours, enabling the selection of ashorter workday in consideration of personal or
position-related circumstances. Moreover, KOKUYO
provides training to managers as well, to impress onthem the importance of work-life balance.

Taking childcare leave
I took childcare leave
mainly to help my wife
with
our
first
two
children. My strongest
memory of that time wasof joining our middle
child’s Christmas party(at the kindergarten). My
wife was having trouble
recovering from childTakashi Minematsu
birth, so I attended inKOKUYO Business Service Co., Ltd. stead of her. I was the
only father in the room.
To tell the truth, I was quite embarrassed, until I saw to mysurprise how thrilled my daughter was to have me there.
At that moment I knew from my heart how glad I was tojoin her party.

Number of employees taking childcare leave
Fiscal year

2005 2006 2007 2008 2009

Men

0

0

4

6

1

Women

16

18

40

23

38

NumberRatio of men to
women: all
employees

Ratio of men to
women: management positions(Regular staff, consolidated
Group companies)(Data from main Group
operational companies)

Women
2.6%
Women
1,591
(30.9%)

Men
3,556(69.1%)

Men
97.4%

Hiring and training local
people overseas
To operate successfully on the global stage,
KOKUYO goes to great lengths to attract and train
the most talented people, irrespective of factors
such as nationality, age and gender, and appoint
them where they can shine the brightest. In thisway we recruit and develop the talent that will
propel KOKUYO into a new age of innovation andexpansion.
As of December 31, 2009, the KOKUYO Group
operates a worldwide network of sales offices that
includes 16 locations in China and one each in
Thailand, Malaysia, India and Europe. Production
facilities for our stationery and furniture operations
can be found in Thailand, Vietnam and Malaysia.
In all, 90% of the employees at our overseas
locations were hired locally, and some went on tobecome directors.
Our most concerted efforts in developing
overseas facilities are in China. Our two principal
Chinese affiliates, KOKUYO Trading (Shanghai)Co., Ltd., which creates office environments, and
KOKUYO Commerce (Shanghai) Co., Ltd., which
conducts mail-order sales of office products,
employ over 100 people.
Also, for each of our production centers in
Thailand, Vietnam and Malaysia, we offer a rangeof programs aimed at bolstering employee skills
and motivation and encouraging them to share thevalues of the KOKUYO Group and to understandits Corporate Philosophy. For example, on-the-job
training is provided at each line, and employees
are invited on observation tours of Group
production facilities in Japan.
When hiring overseas employees, the Grouprequires applicants in each country to furnish
copies of their personal identification and IC
cards, without exception. All KOKUYO overseas
affiliates are completely free of child labor andforced labor.

Producing notebooks at a plant in Vietnam

Employing the disabled
As an executive member of the Osaka
Employment and Development Association(formerly known as the Osaka Prefectural
Association for Employment of the Disabled),
KOKUYO has been actively promoting theemployment of the disabled since theestablishment of the above organization in 1949.
Since that time more than half a century ago,
KOKUYO has worked vigorously as chair of thisCommittee to promote employment opportunities
for the disabled.
Today, the entire KOKUYO Group iscoordinating its efforts to promote environmentsthat are welcoming and easy to work in for people
with disabilities. At the center of these initiatives are
two special subsidiaries: KOKUYO K Heart Co.,
Ltd., established in September 2003, and HeartlandCo., Ltd., established in December 2006.
KOKUYO K Heart Co., Ltd., is principally
entrusted with the printing and quality-inspection
operations of the KOKUYO Group. In January
2010, this company reached its 2,200thconsecutive day of accident-free operation.
Heartland Co., Ltd., provides a place where
people with mental and intellectual challenges canwork. Our research determined that farming is themost suitable working environment for these
employees, so Heartland personnel are employedin cultivating and selling hydroponic vegetables.

TOPICS
Supporting IT-based work-at-home environments,
KOKUYO promotes employment opportunities for the disabled,so they can experience the joy of contributing to society

KOKUYO K Heart Co., Ltd.
(Back row, from left)
Hidehiko Kuroda (President),
Koichi Nakao, Tamio Tokieda(Front row, from left)
Go Itoh, Shigeki Takano

Expanding telework opportunities
to make employment of the disabled
become more widespread
KOKUYO Engineering & Technology Co., Ltd.
(KET) is a company that specializes in providing
next-day delivery of custom-tailored office layout
proposals. Two employees of KOKUYO K Heart
Co., Ltd., the Group’s special subsidiary, Go Itohand Shigeki Takano, work at home to produce
the layouts on which the proposals are based.
Both employees, due to illness or accident, have
only the use of their left hands. Throughconcerted training, Itoh and Takano mastered theuse of CAD applications, and were looking for
positions where they could put their skills towork. As it happened, KET was searching for a
new supplier for its layout drawings. Assisted by

the provisions of the Law to Promote Employment
of Disabled Persons, KET concluded acollaborative agreement with KOKUYO K Heart. In
March 2007, Itoh transferred to KET. With nocommuting to deal with, and able to work in arelaxed environment at home, Itoh had found his
dream job. Takano joined him in February 2009.
“I always work hard to satisfy customers’
wishes and provide plenty of added value,” Itohcommented for this Report. “Once I had theopportunity to see an office created from one of
my layouts. I was delighted!”
Takano shares Itoh’s strong sense of
purpose. “The prospect of delighting thecustomer is what motivates me the most. I refuse
to be satisfied by the status quo. I want to beable to do two, three times as much work as I donow.”

Growing spinach for salad at Heartland Co., Ltd.

24

Social Responsibility
ReportToward greater transparencyof management activities

Responsibilities
to Shareholders
The KOKUYO Group recognizes its
responsibility to all shareholders
and investors to raise enterprisevalue. The Group makes every
effort to uphold sound andtransparent management, and toprovide timely and accurate
disclosure.

We believe that timely and accurate disclosureof information to all shareholders and investors isvital for transparent, healthy corporate management that earns the trust of society.
1) Investor relations (IR) activities
Corporate investors and analysts are kept
informed of the Group’s current condition throughevents such as semiannual settlement briefings
and individual visits, and by continuous and fairdisclosure of information. At the settlement
briefing conducted in February 2009, we led
attendees on a tour of our Eco LiveOffice
Shinagawa, opened in the previous year, tointroduce them to specific Group activities in the
key field of environmental action. At our interim
settlement briefing in August 2009, we took an
extraordinary step to open the proceedings to as
wide an audience as possible: for the first time,
the briefing was held jointly in Tokyo and Osaka.
The two sites were linked via the meetima XVD
Communication System, a videoconferencing
solution that delivers high-definition video overordinary fiber-optic broadband networks,

providing incredible immediacy through a realtime video feed.
As part of shareholder benefit program, theGroup sent a special set of its products toindividual investors and over 80% of recipientspronounced themselves satisfied.
2) Information disclosure
The Group follows all regulations stipulated bystock exchanges regarding the timely disclosureof corporate information by issuers of listed marketable securities (“timely disclosure regulations”).
Even in cases where timely disclosure is not required by regulations, the Group’s basic policy is
to disclose such information, actively and fairly, if
said information would be helpful to shareholders
in understanding the operations of the Group.
Whenever possible, the Group discloses said information promptly on its Web site.
In 2009, Nikko Investor Relations Co., Ltd.,
carried out its seventh annual ranking of listedcompanies’ Web sites in terms of the fullness of
their disclosure. In this survey, the KOKUYO site
was selected as outstanding.
http://www.kokuyo.co.jp/ar/

Ratio of shareholdings by shareholder type

< By shareholder type >KOKUYO
8.1%

Individuals
and others
27.8%

Presentation of interim settlement briefing via real-time,
full-high-definition video feed

25

Overseascompanies, etc.
11.5%

128,742,463
shares< By number of shares held >Financial
institutions andsecurities
companies
20.2%

Other corporate
persons
32.4%

1,000 to 4,999
9.0%

999 or less
2.6%

128,742,463
shares100,000 or more
74.2%

5,000 to 9,999
3.5%
10,000 to 49,999
7.5%
50,000 to 99,999
3.0%

Stock and shareholder
conditions
As of December 31, 2009, the Group has atotal of 128,742,463 shares outstanding, heldamong 27,249 shareholders.
Dividend policy and results
The KOKUYO Group is committed to shareholder focus, continuation of a stable dividend,
and sound consolidated results. On this basis, theGroup aims to maintain a payout ratio of 20% orabove. For the past 10 years, the Group has maintained a total annual dividend of ¥15 per share (notincluding commemorative dividends and the ninemonth settlement). Accordingly, in FY 2009 as well,
the Group plans to distribute a total dividend of¥15, consisting of an interim dividend of ¥7.5 pershare and a year-end dividend of ¥7.5 per share.
Focusing on prudent management, the Groupinvests its reserves with a view to strengthening
further the Group’s management base andenhancing future enterprise value.

Status of inclusion in SRI
indices
Investors are growing increasingly interested insocially responsible investment (SRI), which
involves investing in companies that fulfill theirsocial responsibilities, are actively engaged inmeasures to protect the environment, offer expanded employment opportunities, and otherwise
contribute to society. In recognition of its engagement in these areas, the KOKUYO Grouphas been selected for inclusion in the prestigious
Ethibel Sustainability Index published by Ethibel,
one of the top SRI consultants in Europe andNorth America. The KOKUYO Group has also
earned inclusion in other highly respected SRI
indices including FTSE4Good, managed andcalculated by UK-based FTSE.

Data

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

KOKUYO’s
Responsibilities

Cost of Activities

strive to calculate only the differential cost∗1, as in
the case of the environmental accounting that wehave 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

Customers

Local Communities

Environmental
Protection

Business Activities

Human Rights

Providing products andservices from theviewpoint of customers

Building vibrantcommunities

Making efforts to solve
global environmental
problems

Conducting corporate
activities fairly

Placing emphasis on
human rights in all
corporate activities¥319,445,000
Improving customer
satisfaction¥261,619,000
Proper maintenance ofcustomer information¥1,622,000
Leading customer evolution¥28,389,000
Societal contributions¥14,044,000
Revitalizing local
communities¥5,698,000
Construction of amanagement system¥47,557,000

Breakdown ofMain Costs ofActivities

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 theresults as mere figures, but also to employ themas part of the information used to drive theGroup’s management policy.

¥8,647,000

Construction of amanagement system¥440,010,000
Preventing pollution¥67,945,000
Preventing global warming-¥17,178,000
Saving and recycling
resources¥98,653,000
Procuring and providing
eco-products¥154,922,000
Compliance promotion¥15,017,000
Communication withstakeholders¥75,400,000
Construction of amanagement system¥64,505,000¥65,487,000

Scope ofCSR
accounting

Equal opportunities andpersonnel training¥35,224,000
Workplace safety andsanitation¥12,970,000
Construction of amanagement system¥17,293,000¥39,529,000¥8,647,000∗1 Differential cost: Cost with expenses not directly
related to CSR objectives deducted wheneverpossible. It is declared as a difference from regular
total costs incurred in order to isolate as accurately as
possible the additional cost judged to be generated by
the KOKUYO Group’s deliberate pursuit of CSR
activities.

Accounting
periodFigures posted represent the cost of
putting into practice the ideals outlined in
the KOKUYO Group CSR Charter. This
cost is a sum of personnel, depreciationand other expenses. The amount saved
through cost reductions and income fromassets is subtracted from the expenses.
“The cost of construction of amanagement system” is derived fromproportionally distributed, approximate
amounts of head-office-related costs.
It should be noted that the accuracy of
calculations of costs for each activity
does not necessarily represent the actual
distribution of management resources.

Guidelinesforreference“Environmental Accounting Guidelines,
2005,” published by Japan’s Ministry of
the Environment

Investigation and research into
environmental engineering¥128,026,000¥33,178,000
Construction of amanagement system¥89,857,000——

p. 13-22

p. 11-12, 25

p. 23-24

January 1 to December 31, 2009

Accounting
methodEnvironmental
communication

Related pages

KOKUYO Co., Ltd., and 19 consolidated
subsidiaries
KOKUYO S&T, KOKUYO Furniture,
KOKUYO Store Creation, KOKUYOBusiness Service, KOKUYO Product
Shiga, KOKUYO MVP, KOKUYO Logitem,
KOKUYO Supply Logistics, KOKUYO
Office System, KOKUYO Marketing,
KOKUYO Engineering & Technology,
KAUNET, KOKUYO Chugoku Sales,
KOKUYO Kyushu Sales, KOKUYOInternational, KOKUYO-IK (Thailand),KOKUYO (Malaysia), KOKUYO Vietnam,
KOKUYO K Heart

26

About the front cover design
Since FY 2008, the KOKUYO Group has promoted diversity
in the workplace, and the front cover shows the facial
expressions of a diverse workforce energetically engaged invarious jobs. The pattern at the bottom of the cover displays
the percentage of products bearing the Eco X mark (“NonEco” mark indicating products that are insufficiently
environmentally friendly, introduced in FY 2008) in all 2009
KOKUYO stationery and furniture lines.

The KOKUYO Group CSR Report 2009 wasawarded the Excellence in Environmental
Reporting Award in the environmental reportcategory of the Environmental Communication
Awards 2009.

Published by

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

Department of Public Relations
KOKUYO Business Service Co., Ltd.
TEL: 06-6976-1277 FAX: 06-6976-1253(May 2010)