Business Conduct Guidelines

2.Thoroughly Consider the Environment and Safety

(1) We shall contribute to the achievement of the sustainable development of society by giving thorough consideration to environmental conservation and human safety in every aspect of our operations, including product development, manufacture, distribution, consumption and waste disposal.

• We shall recognize that addressing environmental problems is a common issue for all humanity and an essential requirement for the existence and conduct of activities of a company, and, in our business activities, we shall follow 'Kao's Policies Regarding the Environment, Safety and Health', which state that we shall: 1) Maintain employees' health and safety and improve operational safety, 2) Develop products with attention to the environment and safety, 3) Save resources and energy and reduce waste, 4) Promote human safety in the community and take a responsible approach to environmental conservation, 5) Comply with laws and internal controls, 6) Provide adequate training, 7) Conduct self-evaluations, and 8) Disclose information and continue to improve credibility in the community.
• We shall implement positive measures concerning the environment, safety and health, and we shall promote our Responsible Care® Activities* to improve upon these measures.
  
  
  * Responsible Care Activities: a voluntary program in which a company that handles chemicals takes voluntary measures for the environment, safety, and the use of chemical substances in all processes from development to disposal of chemical substances.
  
  
• By following environmentally sounder processes, we shall develop, produce and distribute products in a way that minimizes environmental impact, with a healthy balance between business objectives and environmental conservation.

(2) We shall develop and produce products with a minimum impact on the environment, and wherever practicable, in a manner that efficiently uses and recycles natural resources and energy.

• By proactively promoting conservation of the global environment, its natural resources and recycling, we shall develop and produce products and technology with a minimum impact on the environment. We shall strive to utilize and recycle natural resources and energy efficiently.
• We shall strive to develop manufacturing processes that reduce waste. When disposing of waste, we shall carefully select a method of disposal that, to the greatest extent practicable, places the minimum burden on the environment. We shall comply with relevant laws and take responsibility up to and including the completion of the disposal process.
• We shall introduce and implement environmental audits and environmental accounting and also adopt such evaluation systems as life cycle assessment (LCA) in order to develop products with a minimum impact on the environment.
• We shall strive to establish logistics systems with a minimum burden on the environment through efficient and cooperative transportation of products.

(3) We shall strive to develop innovative technology, products and services that contribute to a resolution of environmental problems.

• We shall strive to promote the development and effective use of various recycled materials such as paper, plastic, etc., as well as of naturally recyclable materials.
• We shall strive to utilize equipment and systems that efficiently utilize energy such as cogeneration systems.