AISIN - CSR - Environmental Aspects - Environmental Management - Result of FY 2011 Environmental Activities

Organizational structure

AISIN has established the AISIN Consolidated Environment Committee, composed of the environmental management officers of the Group's 12 main companies and headed by the chief executive for environmental management (Aisin Seiki's vice president). The committee formulates policy and strategy for the Group as a whole to manage consolidated environmental activities.

AISIN consolidated environmental management structure

ISO 14001 certification

We are advancing certification under the ISO 14001 standard for environmental management systems. As of the end of FY2011, 94% of AISIN's consolidated manufacturing companies, or 84 companies, had acquired ISO 14001 certification.

North America Consolidated Activities — Zero landfill waste achieved by three companies

The AISIN North American Consolidated Environment Committee meeting was held in September 2010, with 31 participants from 12 local Group companies. Case studies of environmental activities by each of the companies were presented, and technical lectures were held with regard to restrictions on greenhouse gas emissions.

In addition, in FY2011, three companies in the Marion region of Illinois achieved zero landfill waste production as a result of continued waste reduction activities.

Members of the AISIN North American Consolidated Environment Committee

China Consolidated Activities — Rationalization of waste water treatment process

In China, where rapid economic growth is accompanied by growing environmental concerns, the AISIN Chinese Consolidated Environment Committee was established in FY2010 involving 18 local Group companies. At a committee meeting held in FY2011, companies shared information to enable exceptional activities implemented independently by each of the companies to be carried out by other companies.

The Group's Aisin Seiki Foshan Automobile Parts Co., Ltd. has implemented measures to rationalize its waste water treatment process. For example, machine oil used at its plant has been switched to synthetic oil that readily separates from water, allowing the COD^* level in waste water to be reduced. This makes it possible to reduce the number of cycles in the waste water treatment process from eight down to just one, which keeps the COD level below the regulatory threshold.

^*Chemical oxygen demand (COD): A standard measure of water quality that uses the amount of compounds susceptible to oxidation that is present in water, expressed as the amount of oxygen required to oxidize the compounds. Also known as oxygen consumption.

Assessment of all business bases worldwide conducted by Aisin Takaoka

In FY2011, Aisin Takaoka launched an environmental assessment of all of its business bases in Japan and abroad. Environmental division personnel dispatched to the business bases inspected the legal compliance and environmental management status of each workplace and issued recommendations as required. In particular, in overseas business bases, issues and concerns particular to each local area were highlighted through discussions with local employees, and approaches to tackle them were recommended.

Aisin Takaoka will continue to perform environmental assessments of its business bases in Japan and abroad as well as seek to energize the environmental conservation activities of each going forward.

Environmental assessment
staff meeting

Environmental assessment staff meeting

Environmental Accounting

Environmental conservation costs(Billions of yen)
	10 main manufacturing companies in Japan			23 main companies in Japan
	FY2009	FY2010	FY2011	FY2009	FY2010	FY2011
Cost for business operation	10.74	7.67	6.81	11.46	8.21	7.43
Costs of management activities	0.83	0.72	0.78	0.90	0.87	0.94
Upstream and downstream costs	2.56	1.93	2.79	2.63	2.01	2.89
Research and development costs	8.81	8.93	8.40	8.81	8.94	8.41
Costs of community involvement	0.24	0.59	0.37	0.24	0.59	0.37
Environmental damage countermeasure costs	0.15	0.07	0.07	0.15	0.07	0.07
Total	23.33	19.91	19.22	24.19	20.69	20.11

Effects of environmental conservation measures(Billions of yen)
	10 main manufacturing companies in Japan			23 main companies in Japan
	FY2009	FY2010	FY2011	FY2009	FY2010	FY2011
Energy saving	0.73	0.97	0.82	0.75	0.99	0.84
Resource saving	0.22	0.25	0.15	0.23	0.26	0.16
Effects of reducing waste materials	0.06	0.06	0.04	0.06	0.07	0.04
Sale of valued property	7.97	3.51	4.41	8.18	3.61	4.57
Total	8.98	4.79	5.42	9.22	4.93	5.61

Note: These figures are based on Environmental Accounting Guidelines 2005, issued by Japan's Ministry of the Environment.