Sumitomo Heavy Industries Group 4th Medium-Term Environmental Plan

At the Sumitomo Heavy Industries Group, we aim to realize the “Excellent Eco Factory” that contributes to the realization of a sustainable society by holding fast to the “Sumitomo Business Spirit” and setting our sights on achieving a low-carbon society in 2020.

Contributing to the Prevention of Global Warming in Both Product Use and Production

― 4th Medium-Term Environmental Plan Focuses on the amount of contribution to reducing CO2 emissions from product usage ―

Our Group’s 4th Medium-Term Environmental Plan has the achievement of a low-carbonsociety as a major component. We are aiming for a 22% reduction in CO2 emissions from global production and a 15% reduction in CO2 emissions from product use.We have been taking measures for some time to reduce CO2 emissions during production, and now we are putting additional focus on the amount of contribution to reducing CO2 emissions from product usage. This will further reinforce our CO2 reduction activities working through both products and services.

“The amount of contribution to reducing CO2 emissions from product usage” refers to the size of the CO2 reduction that we anticipate from the development of new products with greater energy-conservation performance than the older products (FY2008 standard). In order to increase the amount of contribution to reducing CO2 emissions from product usage, we are setting fiscal year targets for the increase of the number of our proprietary environmentally friendly products and the expansion of our sales of those products. An overwhelmingly large part of lifecycle CO2 emissions for our Group’s products comes during product use, at 96%. This amount must be reduced. We will take steps to develop and popularize products with greater energy efficiency. Our aim is to contribute to the realization of a low-carbon society.

Meanwhile, our efforts to reduce CO2 emissions during production are lowering CO2 from our factories in Japan every year. Our actual records show a 33% reduction from 2004. There was also a slight reduction at our overseas factories, so when results in Japan and other countries were added together, we achieved our target. The 4th Medium-Term Environmental Plan sets a global reduction target of 25% in FY2020,and calls for energy conservation at our factories outside Japan.

Basic Policies of the 4th Medium-Term Environmental Plan

CO2 emissions during production and during product use

Promote environmental risk management
We will take steps to reduce environmental risks and aim to achieve zero environmental accidents.We will expand our environmental risk assessments to all our business establishments, including factories outside Japan, take steps to prevent environmental accidents, and maintain our zero accident record.
Contribute to the achievement of a low-carbon society
We have long been taking measures to reduce CO2 emissions during production, and in addition we are reinforcing our activities to reduce CO2 emissions during product use.
Realize a resource-recycling society
We will continue to reduce the amount of waste we generate and pursue zero emissions.
Contribute to local communities and take measures for biodiversity
We will participate in local community activities in every region, and contribute to the protection of a diversity of organisms by afforestation at our factories and other such activities.

Changes in Environmental Management Activities at the Sumitomo Heavy Industries Group

Contribute to low-carbon society with environmentally friendly products and “first-class products”

All-electric injection molding machines

This is a device for producing plastic products. The group has special expertise in high-precision, high-cycle work, and has one of the top market shares domestically. We deliver products that are outstanding not just for their performance but also for their economy. That is why, for example, we have won the Minister of Economy, Trade and Industry Award at the Outstanding Energy Conservation Equipment Awards of the Japan Machinery Federation.

Steam turbine

This is a device used primarily for privatepower generation at factories. It receivessteam from a boiler and uses it to run anelectric generator. Recent years have seenincreasing use for biomass power generation,and we have an overwhelmingly largeworldwide share in this application.

Hybrid hydraulic excavator

The rotation is used to generate electricity, providing support for engine output that enhances the excavator’s fuel economy. The hydraulic excavator model used as the base for this system is also a prize-winner for energy conservation, and this further energy-conserving effect is contributing to the environment.

Compact CFB boiler

This circulating fluidized bed (CFB) boiler iscapable of efficiently burning even flame-retardantfuels. In response to the demand from small-scalepower generation facilities that use biomass asfuel, we developed a compact boiler in the 5-MWclass. This is contributing to the effective utilizationof global resources.