(C)2010 DOWA Holdings Co., Ltd.

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Greeting

DOWA CSR (Corporate Social Responsibility)

Future Article I Contribution to Improving Environments in Asian Countries through Eco-friendly Recycling Business

Future Article II DOWA Recycling Complex

CSR Management

• Relationship with Stakeholder
• CSR Guideline
• Basic Environment Policy
• Management System
• Environmental & Social Goals and their Present Status

CSR Initiatives through Business Activities

• DOWA Electronics Materials
• DOWA Metaltech
• DOWA Thermotech
• DOWA Eco-System

• Social Performance
  • Relationship with Society
  • Working together with Local Communities
  • Relationship with central and local governments and with industry
  • Relationship with Customers
  • Relationship with Employees
  • Feature Summer Environmental Event for Families
  • Developing Human Resources/Employment and Treatment of Employees
  • DOWA's Work/Life Balance
  • Health and Safety/Compliance
  • Comment from Junior Staff
• Environmental Performance
  • Environmental Management
  • Business Activity and Its Related Environmental Load
  • INPUT
  • OUTPUT
  • Our Efforts toward Preventing Global Warming
  • Our Efforts toward Biodiversity
• Economic and Business Management Performance
  • Economic Report & Environmental Accounting
  • External Economic Benefit Evaluation EEBE(R)
• Business Overview
  • Corporate History and Environmental Commitment
  • Questionnaire Results
  • Basic Requirements
  • Third Party's Opinion

GRI Guideline

Editorial Line

Environmental Management

INPUT

Energy

Reduction of energy consumption and improvement of energy-use efficiency are absolutely necessary to reduce CO2 emissions. DOWA Group is promoting such reduction and improvement efforts through: utilization of renewable energy including hydro and solar power; replacing with and newly introducing energy saving equipment and facilities; modal shift of logistics.

< Electricity >

Purchased power consumption in 2009 was about 1,012 GWh (994 GWh in Japan and 18GWh internationally outside Japan), a decrease in Japan by about 14% compared to last year. This was mainly due to the decrease of operation of Akita Zinc.

In-house power generation totaled to 121 GWh, of which 1 GWh was from thermal power, 61 GWh from waste heat and 58.8 GWh from renewable energy (58.6 GWh water and 0.1 GWh solar). In 2009 power generation from waste heat and solar power generation increased by eight times and 10 times respectively compared to last year.

We continue to make efforts to reduce purchased power consumption by promoting introduction of power generation from waste heat and solar power generation.

< Fuel >

Fuel consumption in 2009 was 74,100 kL as converted to crude oil (70,300 kL in Japan and 3,800 kL outside Japan), of which 3,200 kL was for transportation and 67,100 kL was for other uses.

In 2009, as operation of the new furnace installed (introduced in 2007) in Kosaka Smelting and Refining increased, usage of coal increased compared to 2008. In connection with the increase, Japan's domestic fuel consumption increased by about 4% compared to last year.

Our efforts to reduce indirect energy consumption in 2009

Energy saving	DOWA Group is promoting various energy saving activities such as: replacing existing lighting systems with energy-saving designed lights such as LED bulbs, introducing 3-axis accelerometers and carefully manage lighting and air-conditioning systems.
Transportation	We are also accelerating modal shift from truck to railways and ships as well as the reduction of transportation distances through improvement of collection methods and loading efficiency.
Teleconference system	Our teleconference network connects 14 offices inside and outside Japan. It plays an important role in reducing both energy use and CO2 emissions, by reducing the use the use of automobiles, railways and airplanes for travelling, in addition to the improvement in business efficiency and cost reduction of travel expenses.

Water Resource

< Water Usage >

Service water usage in 2009 consisted of purchased water of about 3.8 million m³ (3.6 million m³ in Japan and 0.1 million m³ outside Japan) and in-house intake of water of about 83.6 million m³ (83.6 million m³ in Japan and 0.1 million m³ or less outside Japan), totaling 87.4 million m³, a decrease of 22% compared to the previous year.

In 2009, as manufacturing of products decreased at Akita Zinc, usage of water significantly decreased. In connection with the decrease, total water usage of the DOWA group decreased.

Raw Materials and Accepted Wastes

The DOWA group used 722,000 t of raw materials (for machine parts, medical agents and materials) in 2009, of which usage of virgin materials was 611,000 t, while that of recycled materials was 100,000 t. Included in the virgin materials are 45,000 t of entrusted heat treatment products. They were entrusted to us by our customers and are not for consumption by ourselves.

In addition, we accepted 1,190,000 t of wastes (1,040,000 t in Japan and 150,000 t outside Japan). Raw materials recycled from wastes include used oil, sludge, used plastics, shredded dust and soil. We recycle them and utilize them as energy (thermal recycling).

Usage of raw materials in Japan decreased by about 9% compared to last year. Also, the quantity of raw materials recycled from wastes in Japan had decreased by about 1% compared to last year.

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