Asahi Glass | Environmental Activities: Environmental Management

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Environmental Activities: Environmental Management

Concept:

The AGC Group, being fully aware of the high environmental impact of its operations, regards the environment as one of its most important management priorities, and all Group companies are committed to contributing to developing a sustainable society.

Targets for fiscal 2008

To promote global environmental management
To establish an environmental management system in consideration of product lifecycles
To establish a comprehensive chemical substance management system
To implement measures to reduce greenhouse gas emissions
To improve environmental communication and enhance environmental education programs

Results in fiscal 2008

		Self-evaluation
1.	Achieved zero emissions*1 at seven sites of Asahi Glass	A
2.	Conducted a survey on the AGC Group's existing environmentally friendly products	B*2
3.	Completed the pre-registration of a total of 101 substances for the AGC Group in compliance with the REACH regulation	A
4.	Achieved a 36% reduction in CO2 emissions from the fiscal 1990 level (by Asahi Glass)	A
5.	Held an environmental forum to share information across the Group and accepted trainees under the “Eco-Internship” program of the Japanese Ministry of the Environment	A

Criteria for self-evaluation
A:Satisfactory level, in which the intended target has been achieved
B:Almost satisfactory level, in which a part of the intended target has not yet been achieved
C:Unsatisfactory level, in which the intended target has not been achieved

Targets for fiscal 2009

To implement measures to achieve zero emissions on a global scale
To promote the development, manufacture, and sale of environmentally friendly products
To implement measures to achieve a 40% reduction in VOC emissions from the 2001 level in 2010 (Asahi Glass and its domestic Group companies)
To reduce CO2 emissions by approximately 1% from the average value for 2006 and 2007 during the first commitment period*3 of the Kyoto Protocol (Asahi Glass)

*1 Asahi Glass defines zero emissions as recycling 99% or more of waste.
*2 Reason for B evaluation: Because we have yet to establish a system to provide a wider range of environmentally friendly products.
*3 From 2008 to 2012

AGC Group Basic Environmental Policy (Established on February 9, 2001 and revised on June 25, 2008)

Basic Policy
AGC Group has designated environmental activities as one of the Shared Values in the Group Vision, “Look Beyond”, with the awareness of large amount of natural resources and energy usage in its activities.

As a global material and component provider, we shall contribute to the development of a sustainable society through:
- effective use of limited natural resources and energy, and
- consideration of the influence of our activities on the natural environment including climate change and biological diversity.

Slogan
Play your part as a responsible citizen in creating a better environment.

Guidelines for Environmental Activities
AGC Group will implement environmental activities based on the following Guidelines throughout our business activities.

1.	We will make continuous improvements based on the Integrated Environmental Management System.
2.	We will comply with all regulations and standards prescribed by environmental laws, ordinances, treaties and agreements.
3.	We will take steps to reduce environmental impact and to prevent pollution. We will set voluntary targets in regards to resource conservation, global-warming countermeasures, waste reduction and recycling, and the proper control of chemicals. We will work to accomplish these goals while making further improvements.
4.	We will develop and provide eco-conscious products, technologies, services, and facilities for society in all areas of our activities.
5.	We will actively communicate with our stakeholders to foster an appropriate understanding of all aspects of our environmental activities.

The AGC Group Environmental Policy is disclosed to the public.

Integrated Environmental Management System

The AGC Group is conducting its business in glass, electronics and displays, chemicals, and other fields, each of which differs in its environmental impact. In the past, each base and Group company independently implemented measures to reduce its environmental impact, but since 2003, the Group has been establishing an Integrated Environmental Management System (Integrated EMS), recognizing the necessity of taking relevant procedures across the entire Group in a unified manner. Since 2007, we have been striving to establish an Integrated EMS on a global scale. The Automotive division of Glass Company, ahead of other In-House organization, incorporated its overseas sites into the system in 2006. The Flat Glass division of Glass Company has also completed the incorporation of all Group companies in Asia and has begun incorporating those in Europe and North America into the system.

The Electronics and Chemicals Companies are also steadily incorporating the related overseas companies into the system, which will be completed by 2010.

Moreover, as part of the Integrated EMS, we have been fostering internal auditors on the EMS with the qualification of assistance to ISO 14001 inspectors. This will also help improve the quality of internal audit.

Organizations Incorporated into the Integrated EMS (as of the end of December 2008)

● Click the image to see its detail.

*The number of affiliates (consolidated subsidiaries) and the number of manufacturing sites are shown.
*For plants and affiliates belonging to more than one In-House Company/SBU, the above numbers are indicated per In-House Company/SBU in duplication.
*Organizations incorporated into the Integrated EMS are each ISO 14001-certified, undergoing examinations by an external certification body based on the same examination criteria.

AGC Group's ISO 14001-Certified Manufacturing Sites (As of the end of December 2008)

Location	No. of manufacturing sites	No. of certified manufacturing sites (No. of sites incorporated into the Integrated EMS)
Asahi Glass	11	11(11)
Japan	55	44(40)
Asia	31	27(24)
Europe	51	43(12)
North America	22	7(7)
Total	170	132(94)

*As for non-manufacturing sites, a total of 101 sites are ISO 14001-certified (including the Integrated EMS).

Relationship between Business and the Environment

● Click the image to see its detail.

*Scope of data: Asahi Glass (unconsolidated)
*Totals do not always match the sum of the individual figures because of rounding.
*See “Reduction in Greenhouse Gas Emission“, “Proper Management of Chemical Substances“, “Prevention of Soil Groundwater Contamination“, “Asbestos“, “Waste Reduction Activities“ and “Prevention of Air and Water Pollution“ for details of environmental performance data.
*4 PJ (peta joule) = 10¹⁵ J (joule)
*5 Total for fiscal 2007

AGC Environmental Indicator

Asahi Glass introduced the AGC Environmental Indicator to analyze the environmental impact from its manufacturing activities in an objective manner. Since fiscal 2006, we have been reducing our environmental impact by clearly determining priorities based on this indicator. We calculate the indicator by comparing our sales (economic effect) on Japan's GDP and our substances of concern (SOC) emissions from our manufacturing activities on total domestic SOC. We thus estimate our environmental impact in relation to our economic contribution to the country's GDP.

To improve the Indicator values, we must reduce our emissions beyond the rate of reduction achieved by the entire country under the following conditions.

Asahi Glass sales vary almost in line with Japan's GDP, and so the rate of our economic contribution to the country's GDP remains nearly constant.
Total SOC emissions are on the decrease in Japan's industrial sector as environmental awareness increases.

In fiscal 2008, Asahi Glass successfully reduced the Indicator values for all the targeted substances to “2 or below,” which was our initial goal. We will continue to examine and eventually set the global target for the entire Group.

How to Calculate the AGC Environmental Indicator

How to Calculate the AGC Environmental Indicator

Features of the AGC Environmental Indicator

Calculating the environmental impact of each substance allows identification of which substances give relatively more environmental impact.
It is possible to continue improvement activities to achieve higher targets without taking a baseline year into consideration.

Conventional environmental indicator

If an absolute value is set as a target, continuity of data might be lost as the business structure changes.
If an efficiency indicator per unit of sales is used, the motivation to decrease the absolute amount of emissions might be lowered.

AGC Environmental Indicator Scope of data: Asahi Glass (unconsolidated)

	Fiscal 2008			Target *6
	Target	Economic size Environmental impact	AGC Environmental Indicator	Target *6
Sales	-	645.9 billion yen	1.0	-
Total energy consumption	2.0	35PJ	1.8	2.0
Greenhouse gas emissions		2.78 million tons	1.7	1.7
of which CO2 emissions		2.19 million tons	1.4	1.5
SOx		725 tons	1.1	1.3
NOx		1,910 tons	1.8	2.4
Soot and dust		42 tons	0.6	0.9
Sent to landfill		8,000 tons	0.3	0.3
COD		580 tons	0.4	0.3

*6 At present, we are making improvements based on the actual results in fiscal 2007.

Continuous Improvement of Environmental, Safety, and Security Activities through Audits

The AGC Group conducts Corporate Environment & Safety Directorate Audits and Environment & Safety Audits to identify the status of environmental, safety, and security activities and make each division strictly follow the plan-do-check-act (PDCA) cycle to realize the Group Vision "Look Beyond". The Corporate Environment & Safety Directorate Audits have been conducted since fiscal 1994 by the head of the Corporate Environment & Safety Directorate, targeting the top management of the In-house Companies/SBUs, while the Environment & Safety Audits have been carried out annually by the In-house Companies/SBUs themselves, targeting their subordinate manufacturing sites located both inside and outside of Japan. In fiscal 2002, the CSR Office began conducting Corporate Environment & Safety Audits of major manufacturing companies within the AGC Group to improve the overall level of environmental, safety, and security management of the entire Group and correct disparities among manufacturing companies.
In addition to conducting these audits once every two to three years, the CSR Office also provides the companies with whatever support they need to help them improve the level of management in these areas.
Moreover, the AGC Group conducts Integrated EMS Internal Audits of in-house organizations participating in the integrated EMS. This audit is based on the idea of mutual auditing. Internal audit teams comprised of representatives of the EMS secretariats of the head office departments and environmental officers of the In-house Companies/SBUs conduct audits of each others′ sites and factories so as to identify problems from different viewpoints, discuss them, and implement across-the-board improvement measures.
The AGC Group verifies the effectiveness of each PDCA cycle by auditing and following up on the environmental, safety, and security activities of in-house organizations, thereby continuously improving its performance.

Environmental Education and Training

The AGC Group is engaged in various environmental education and training which enhances employee's environmental awareness and environmental improvement in order to provide the knowledge necessary to carry out environmental activities. Each In-House Company/SBU provides more specialized education in line with the nature of their respective work.

Major environmental education for AGC Group employees (Fiscal 2008)

Training subjects	No. of participants
EMS internal auditor training course	54
AGC Group Environmental Forum	125

The Integrated Green Procurement

The AGC Group has added green procurement, which means procuring environmentally friendly materials, to its procurement principle. We manufacture products using materials that meet our procurement criteria, and deliver environmentally friendly products to our customers. The AGC Group uses different types of materials in its four business segments (glass, electronics and displays, chemicals, and others). In order to present common procurement policies to all our In-House Companies/SBUs engaged in different business segments, we revised the AGC Group's Integrated Green Procurement Guideline in October 2008, and in compliance with this Guideline, each In-House Company/SBU sets its own green procurement guidelines to manage materials in a manner that is environmentally friendly and appropriate to its manufacturing process, in cooperation with its suppliers.

The Concept of the AGC Group's Green Procurement

Procurement for the raw material, parts and outsourcing products of the lower environmental impact
Procurement for the raw material, parts and outsourcing products manufactured by the EMS and QMS maintained factory

To Detail (Corporate Information)

Topic
Receiving the Highest Commendation for Environmental Activities (the Philippines)

The PEP Award Trophy

PEP Award presentation ceremony

AGC Flat Glass Philippines (AGPH), which manufactures and sells various types of fl oat glass received the PEZA Environmental Performance (PEP) Award from the Philippine Economic Zone Authority (PEZA) in February 2008. To select the winners of the award, PEZA made a series of examinations and on-site inspections of 1,700 companies in the Philippines. AGPH's implementation of an Environmental Management System based on ISO 14001 is highly regarded. It helped AGPH to achieve the compliance with the domestic environmental laws and regulations or to sustain its commitment to waste management, materials recycling and pollution prevention. Its contribution to local communities was also highly praised.

The AGC Group Environmental Forum 2008 on Zero Emissions*7

AGC Group Environmental Forum 2008

Each year the Group organizes the AGC Group Environmental Forum for the purpose of sharing excellent cases of environmental activities as well as challenges the Group faces. In fiscal 2008, the forum was held in Tokyo with the participation of 125 members from 10 countries and regions for two days over July 10 and 11. Participants actively discussed the measures and problems to be tackled to achieve zero emissions across the entire Group.
At this forum, a total of five cases were presented by representatives from Japan/Asia, Europe, and North America. The Automotive division of Glass Company, an In-House Company, for example, reported the higher profitability achieved through waste reduction and recycling at its two plants in the United States. The Company has been achieving zero emissions on a global basis and completed the establishment of its Integrated EMS in fiscal 2006.

*7 Asahi Glass defines zero emissions as the recycling of 99% or more of waste.

Stakeholder Dialogue

The dialogue was held focusing on “Environment”, one of the priority issues for the AGC Group's CSR activities, with knowledgeable people from outside the company invited.

First Stakeholder Dialogue: Environment

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