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At JRC we have been conducting our business in an environmental conscious manner in accordance with the basic philosophy of our environmental policies, which is to recognize that conserving the global environment is one of the most important problems facing humanity, and take conservation of the environment into account in every stage of our operations.

The speed at which the Earth's natural environment is being destroyed has not declined: on the contrary, it has accelerated, as evident from the many natural phenomena that can be considered symptoms of global warming, including shrinking of the Artic iceshelf and melting of permanently-frozen soil in Siberia. The problems companies have to address to bring about a resource recycling (sustainable) society are becoming increasingly complex and diverse. We are required to make significant energy savings at our production plants (sites), reduce industrial wastes and tighten regulations governing VOCs (volatile organic compounds). In the area of product design, the European RoHS Directive came into force in July, and various other regulations concerning environmental conscious products influenced by the RoHS Directive will come into force in the near future. In addition, environmental risk management and society's valuation of companies are now more important than ever.

Photo:President Yorihisa SuwaWe acquired ISO 14001 environmental management system certification in 1998, and since the very beginning of our ISO environmental activities have been working to conserve the environment in line with a fundamental principle of cocnserving the environment. Starting in 2005, we have decided to put in place a president's policy for environmental activities each year, in which we will prioritize specified themes. The policy for 2005 is to add more environmental conscious product to our lineup. To ensure the continued survival and prosperity of the company, we must respond to various environment-related requests and demands from society, and we are committed to making a contribution to society by improving our operations in the environmental realm.

Turning to actual results in 2005, we find the reduction in energy use was substantially smaller than our target for environmental conservation at production facilities. Targets were however achieved in activities aimed at reducing the environmental impact of our products. As described in the section in this document on our various initiatives, our lineup of environmental conscious products has been boosted. Starting in fiscal 2006, we introduced the “Type II environment label” as a totally new initiative, and began setting target compliance ratios. Though we have already completed RoHS compliance for all products for which it is required by customers and sold in the European market, we have set ourselves the target of making all our products RoHS compliant by September 2008, except those we cannot make RoHS compliant due to customer requirements. We will continue to work hard to improve our RoHS compliance.
For details, refer to the next pages.

We also voluntarily investigated the soil of company housing near our Mitaka plant and found multiple harmful substances in concentrations higher than those specified by law. The majority of this land was used for the Mitaka plant of our affiliate Japan Radio Glass until about 1977 and the substances were used as raw materials for the manufacture of glass. This research result was published in a press release and the news section on our website, and presented at a meeting for neighboring residents.

We are currently taking appropriate action to address the situation, in consultation with the Tokyo Metropolitan Government and Mitaka City. To date we have taken measures to prevent scattering of soil, and dug a well for observation of ground water to examine water quality regularly. Incidentally water quality tests did not yield any results in excess of Japan's environmental quality standards.

I would like to close by saying that our work in the area of environmental conservation requires not only the disclosure of information from the company, but also your feedback. We would be delighted to hear your comments or opinions about our environmental activities.

President Image:Yorihisa Suwa

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