Organization to Promote Environmental PreservationEnvironmental

In SMK, the Group policies, targets, and initiatives related to environmental preservation are deliberated upon and determined by the Corporate Environmental Preservation Committee, which is chaired by the Vice President of the Environment Division. Major items are subject to deliberation and determination at the Executive Officer’s Meeting. Upon determination, they are deployed at all Japan and overseas sites. At each business site, the local Environmental Preservation Committee decides local policies, targets, and initiatives in accordance with the Group policies, targets, and initiatives taking locally specific issues into consideration and puts them into practice.

Environmental Management Systems

SMK’s environmental management systems are in accordance with ISO 14001, the international standard for EMS. We have obtained ISO 14001 certification at all of our Japan sites and overseas works. Since fiscal 2007, in addition to individual activities at each site, we have been setting targets and themes to be shared by all members of the SMK Group, reinforcing linkage among our sites, and working to heighten group-wide systemic arrangements.Our environmental preservation activities are by no means confined to within the Group; in 2004, we released the SMK Green Procurement Guidelines and widened the circle of such activities to include our suppliers. In particular, we asked our suppliers to promise to halt use of environmentally hazardous substances we have prohibited and to construct setups based on ISO 14001. In fiscal 2009, we are going to begin making visits to suppliers which have not yet been certified under ISO 14001 to determine the state of their environmental preservation activities and to offer advice.

Environmental Education

SMK implements environmental education by levels of employees throughout the Group, and as a part of the professional education curriculums. In addition, each business site makes its own annual education plans.We also encourage our employees to take the Certification Test for Environmental Specialists (also known as the Eco Test) held by the Tokyo Chamber of Commerce and Industry. Every year since the first test in 2006, we have recruited candidates, purchased textbooks, and provided assistance with the burden of exam fees. The cumulative number of SMK employees who had passed the test and been certified reached 26 in 2008. These employees are directing and driving the environmental preservation activities at each workplace.