Environment

In fiscal 2007, CO₂ emissions from all sites in Japan rose 8.6% over the previous year to 264,000 tons (a 43.8% increase compared to the fiscal 1990 level). The group's companies in Japan are striving to conserve energy through the incorporation of the latest energy-saving technologies at new factories and by improving production efficiency in all business areas.

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Based on usage results of all sites, and includes estimates for part of the fiscal 1990 data. For the emissions coefficient for electricity and natural gas, results for all the suppliers were used, and results for the previous fiscal year were used for figures not yet released. Regarding other fossil fuels, coefficients were used based on Japan's Law Concerning the Promotion of Measures to Cope with Global Warming.

In fiscal 2007, the material flow cost accounting (MFCA) method was introduced on a trial basis in order to help "visualize" process energy loss. Through this trial implementation, measures to reduce energy use by 15% were identified. Studies are currently underway with a view to full-scale implementation of these measures.

Konica Minolta is also undertaking initiatives for visualizing CO₂ amounts reduced through the execution of energy conservation measures. A reduction of 450,000 tons was confirmed, which was obtained in the form of the difference between the fiscal 2007 results and the estimate CO₂ emissions if the fiscal 2007 production had been carried out using the production units from fiscal 2004, which were the benchmarks in the medium-term environmental plan.

Thanks to the execution of these energy saving measures, greater CO₂ reduction amounts were achieved. However, a new factory was built to produce LCD-protecting TAC film at the Kobe Site, which was completed in November 2007. As a result of this construction, CO₂ emissions from Konica Minolta sites in Japan increased during this year. Since future factory strengthening and production expansion may lead to greater CO₂ emissions, Konica Minolta is preparing to obtain emission rights as a measure to supplement its thorough energy conservation efforts.

In fiscal 2007, CO₂ emissions from all sites in the US, Europe, and Asia (excluding Japan) fell 6.5% over the previous year to 81,000 tons (a 2.4% increase compared to the fiscal 2000 level).

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Based on usage results from all sites. Country-specific emissions coefficients from the Greenhouse Gas (GHG) Protocol were used for electricity. Moreover, the closest-year figures were used for the fiscal years prior to the GHG Protocol. Protocol emissions coefficients were also used for natural gas and other fossil fuels.

There was a temporary decrease in CO₂ emissions due to the effects of Konica Minolta's withdrawal from the camera and photo business. However, further reduction efforts are needed as an increase in CO₂ emissions is expected from fiscal 2008 onward. This is due to expanded production at various factories, and to the new construction and reinforcement of a glass substrate factory for hard disks completed in March 2008 in Malacca, Malaysia.

Konica Minolta has implemented an Energy-Conservation Support Program, dispatching energy management professionals to various factories to check the status of energy and equipment use, and identify energy conservation measures.

In fiscal 2007, we sent energy management experts to two factories in China, and started the Energy-Conservation Support Program there. As a result, measures have been identified to reduce energy use by about 10% at each factory.

Energy-Conservation Support Program being carried out at Konica Minolta Business Technologies (Dongguan) Co., Ltd.

Energy-Conservation Support Program being carried out at Konica Minolta Optical Products (Shanghai) Co., Ltd.

For fiscal 2008, along with the implementation of the identified measures, we are planning to expand the program to other factories in China, as well as those in Europe and the US.

Located in Tokyo, the Konica Minolta Plaza is the group's venue for providing the public with various types of information, including social, cultural, and artistic exhibits. As of March 2008, Konica Minolta Plaza uses only low-environmental-impact electricity procured through the green power certification system to cover electrical needs for all its exhibitions.

Green power is electricity made from renewable energy sources such as wind and biomass. In addition to the electricity itself, it benefits us in terms of "environmental added value," which represents the advantages of green power including a reduction in CO₂ emissions, and energy conservation (reduced use of fossil fuels). The green power certification system allows Konica Minolta to receive certificates for the environmental added value of electricity that it purchases.

Having a green power certificate means that the group purchased the environmental added value of electricity, in addition to the regular electricity supplied by the power company. In other words, it certifies that green power was used. During the year, the Konica Minolta Plaza used 72,000 kWh of electricity for its exhibits. In fiscal 2008, about 90% of this amount was biomass electricity from power stations in Iwate, and in Tokyo. The remaining 10% essentially came from the wind turbine power facility in Chiba.

"Team Minus 6%" is the nickname of a national campaign waged in Japan to fight global warming by achieving the 6% reduction commitment stipulated in the Kyoto Protocol. In support of the campaign's objective, Konica Minolta has enrolled as a member of "Team Minus 6%" and is taking the following measures.

1) In-house measures

1. Recommended air conditioning settings of 28 degree C in summer, and 20 degree C in winter
   • Putting up posters to advertise Company participation in "Team Minus 6%" to all employees and calling for their all-out efforts.
   • Promoting "Cool Biz" and "Warm Biz" campaigns to encourage employees to dress down in summer and dress warmly in winter, so as to adapt to appropriate room temperature settings.
2. Efficient operation of elevators
   • "Two-up and Three-down" campaign (use stairs, rather than elevators, when going up two floors and down three floors).
3. Energy-saving on office lighting and OA equipment
   • Turning off power when lights are not needed.
   • Using energy-saving mode and turning off power when OA equipment is not in use.
4. Promotion of idling stops
   • Stopping engine idling in Company-owned vehicles when not in motion.
   • Requesting vehicles entering Company premises to stop idling engines when not in motion.

2) Activities at home

Encouraging employees to act on the "Team Minus 6%" campaign even at home.

3) Activities outside the Company

Encouraging active participation in related campaigns and other events organized outside the Company (mainly via the Corporate Communication & Brand Management Departments).