I. Basic Policy on Environmental Preservation of KITASHIBA

KITASHIBA ELECTRIC CO.,LTD. (hereinafter referred to as KITASHIBA) develops and manufactures the products such as transformer, system controller, electro-heat system, small motor, heat exchanger, rotating machine and environment-related equipment, and contributes to the society and economic activity by providing of these products into the world.

Further we define it as our basic policy that “we will harmonize with the nature and actively contribute to establish affluent and sound social environment based on the recognition that handing over this Irreplaceable Global Environment to the next generation in a sound status is our essential responsibility as a member of the society”, and promote the environment preservation activity based on the following basic policy.

1. We will place the preservation of global environment as one of the most important managerial subjects, and struggle with continual environmental improvement and prevention of pollution with full participation of employees,
2. We will observe the laws and arrangements related to environmental preservation, and manage our activities in accordance with our more strict voluntary standard,
3. We will promote the following environmental preservation activities on environmental aspects related to business activities, products and services based on the environmental impact assessment:
   We will

1. Recognize the definiteness of global resources and promote product assessment such as lightening of products, longevity, reduction of components used in a product, standardization & normalization, indication of used materials, etc. as well as merchandizing of energy saving conscious products,
2. Promote substitution of regulatory chemical substances to reduce environmental burden,
3. Replace deteriorated facility to the facility that imposes less burden to the environment,
4. Endeavor to prevent water pollution due to industrial effluent paying attention to the preservation of water quality of the Abukuma River that is our water resource,
5. Endeavor for the reduction of industrial wastes such as wasted packaging materials, papers, plastics, oils and sewages and promote recycling, and
6. Endeavor to reduce exhausting of CO2 that causes global warming by reduction of electric power consumption occupying considerable part of energy consumption.

4. We will set the environmental objectives and environmental targets for the achievement of this basic policy on environmental preservation, and promote the environmental preservation activities by all of our departments and employees.
5. We will instruct and support our suppliers and related companies to promote environmental preservation activities, and establish cooperation and solidarity with the local community.