Environmental conditions have been deteriorating year after year due to global warming, ever-increasing waste production and many other reasons. At NKC, we believe that taking voluntary, energetic action to combat these issues is a matter of corporate and social responsibility. Our approach is to engage in global environmental conservation, striving to reduce the environmental impact that our products and services may have in Japan and other parts of the world in all of our businesses. We are promoting this environmental policy at all of our business facilities in Japan and abroad.

a. Energy Conservation: reducing CO2 emissions 1% annually by unit of output

i) Increase operating efficiency of production facilities
ii) Systematically replace existing electrical air conditioners with natural gas type
iii) Regulate indoor temperature to a low of 28°C during the summer months and a high of 20°C during the winter months
iv) Turn off all office equipment when it will not be in use for 30 minutes or more
v) Systematically replace existing company vehicles with eco-friendly cars
vi) Reduce electrical energy consumed for security and during non-working hours

b. Industrial Waste Reduction

i) Promote zero emissions (eliminate waste that goes directly to landfill)
In April 2007 we achieved zero emissions at the head office and a total of six major districts/plants in Japan. We will sustain these efforts into the future.

ii) Maintain current minimum recycle rate of 99%
iii) Promote "3R" campaign
Reduce
Reuse
Recycle
We promote refuse separation to maximize recycling potential based on the saying: "Separate and it's a resource; mix and it's just trash."

c. Toxic Chemical Countermeasures

We employ efforts to properly manage and reduce or eliminate the use of specified chemical substances in compliance with the Pollutant Release and Transfer Register (PRTR).

d. Green Procurement: Giving priority to the following goods.

i) Products that meet environmental standards
ii) Products that use reclaimable materials or recycled parts
iii) Products that are lighter, longer lasting, or help to save resources in other ways
iv) Energy-saving products
v) Products that contain no toxic chemicals
vi) Products that are easy to handle at time of disposal

Three factories in Japan (Osaka, Nabari and Mie) were certified as ISO14001 compliant on February 27, 2006.

We began participating in a joint research project with NEDO in 2005, "Field Testing of New Solar Power Generation Technologies." A 110kW solar energy generator has been in operation since October 2009.

NKC's Osaka factory was selected by The Energy Conservation Center of Japan's Kinki Branch as a model plant to host the Center's second training session on converting to energy-saving practices. On May 14, 2004, the factory introduced its energy conservation practices to participants from other companies in the effort to promote energy conservation.
These efforts were based on the Osaka factory's receipt of an award for excellence in energy management from the Kansai Bureau of Economy, Trade and Industry in the year 2003 (electrical division).