1Sustainability Report 2007
C o n t e n t sIwatani environmental policy
Environmental Charter
This report contains details of Iwatani Group's activities in FY 2005.(It includes certain activities through to the end of June 2006). 【Guidelines used for reference】Ministry of the Environment: Sustainability Report Guidelines (FY2003 Version)Ministry of Economy, Trade and Industry: Environmental Reporting Guidelines2001 with Focus on StakeholdersGRI: Sustainability Reporting Guidelines 2002
Iwatani environmental policy ……………1
Environmental Charter ……………………1
Liquefied Natural Gas(LNG)……………2
Hydrogen Energy …………………………4
LPG ……………………………………………6
Various Activities …………………………7
Eco-Friendly Products ……………………7
Contribution to Local Communities……8
International Activities,Support for Energy Technology ………9
Environmental Management System …10
Summary of EnvironmentalPerformance in FY 2006 ………………11
Iwatani's Material Balance ……………12
Supply Chain Management System,Logistics ……………………………………13
Compliance with Laws & Regulationsand Negative Information,Environmental Accounting ……………14
FY2007 Environmental Objectives and Targets…………………………………15
Environmental Chronology………………16
Feature StoryBest Energy Mix and More...
Social Performance
Environmental Performance
"Gas and Energy" is a key concept for Iwatani. Whilst LP gas andvarious industrial gases remain our core business, Iwatani hasbeen developing interests in a comprehensive range of industriesincluding general consumer products, foods, machinery, weldingmaterials, electronic equipment, metals, chemicals and minerals.Iwatani strives, in all its business activities, to work in harmonywith local communities and to contribute to a more recycling-ori-ented society, in the spirit embodied in the Iwatani GroupEnvironmental Charter.
We will endeavour to reduce burdens on the environment,notably those which contribute to global warming, throughnew technologies allowing us to use our natural resourcesmore effectively, research and development of newsources of energy contributing to a more viable society andthe wider use of Eco-friendly products.
We will save resources and energy and keep waste to aminimum through our business activities.
We will comply with environmental laws and regulations, andfollow environmental requirements we consider workable.
We will continuously improve our environmental manage-ment systems and be more effective at preventing pollutionby setting and regularly reviewing of environmental objec-tives and targets.
We will ensure that all company and group employees areaware of environmental issues, and that environment-relat-ed training and education are provided.
1st May, 2003
IWATANI INTERNATIONAL CORPORATIONAkiji Makino President
1.
2.
3.
4.
5.
2 Sustainability Report 2007
Feature Story : Best Energy Mix and More....― Liquefied Natural Gas (LNG)
Natural Gas has a much smaller environmental impact
than oil, reserves are huge, and it is clean. Iwatani has so far
supplied Natural Gas to large industrial customers and, in
order to meet a wider range of demands, established a
Natural Gas supply company, Koga Energy Co., Ltd. (Koga
City, Shiga Prefecture), jointly with Kansai Electric Power
Co., Inc. and Koga Kyodo Gas Co., Ltd. The company start-
ed full Natural Gas supply in May 2007.
Koga Energy built necessary facilities, including a satellite
base and gas pipelines, within its Natural Gas delivery area. It
will expand the use of Natural Gas in households, shops and
small factories by supplying Natural Gas to Koga Kyodo Gas,
a general gas operator, while directly delivering Natural Gas
to large industrial consumers for stable and smooth supply.
This Natural Gas supply business model by Koga Energy
is the first such attempt in the nation, and has attracted atten-
tions as a new business model for converting regional energy
sources to Natural Gas.
Iwatani Starts New Supply BusinessResponding to Increasing Demand for Natural Gas
Natural Gas Supplier Koga Energy Co., Ltd. Started Full Natural Gas Supply in May 2007
Overview of Natural Gas supply company Koga Energy
Lorries are a fundamental means of delivering LNG. Iwatani already owns several dozen.
Three LNG tanks (100 kiloliters) were installed in the satellite base and additional tanks willbe built for more stable supply.
Iwatani has expanded its LNG sales base and know-how by
establishing joint ventures with Kansai Electric Power Co., Inc.,
Chubu Electric Power Co., Inc., and Hokuriku Electric Power
Co., Inc., and will start a satellite supply to consumers in the
Kanto district using Iwatani LNG lorries at the end of FY 2007.
The LNG will be supplied from the Tokyo Electric Power
Company's Futtsu Thermal Power Station.
The sale of LNG in the Kanto district will be an
independent Iwatani business. The latest
growth in our sales area will expand cover-
age from the Tokyo metropolitan area to
the Shizuoka and Koshinetsu districts,
as well as the north Kanto, in
addition to the already
established the west
from Aichi and
Hokuriku dis-
tricts.
3Sustainability Report 2007
As Natural Gas has been distributed mainly through existing
city gas pipelines, we had to establish supply infrastructures and
overcome geographical restraints in order to expand the use of
Natural Gas. Koga Energy suggested a new way of supplying
Natural Gas, called "Satellite Supply." This has enabled us to be
more flexible in delivering Natural Gas to more users.
In the Natural Gas supply business of the company, the LNG
transported from the Sakai LNG Center of Kansai Electric Power
by lorry is gasified at the satellite base and delivered to con-
sumers. The Natural Gas is directly delivered to large con-
sumers like factories through the main pipelines, while being
supplied wholesale to Koga Kyodo Gas, a city gas operator,
which delivers Natural Gas to households and various facilities
through its low-pressure pipelines.
Koga Energy plans an annual supply of around 12,000 tons
for direct supply and around 3,000 tons for wholesale supply as
initial goals.
To maintain the safe supply of Natural Gas, reliable handling
techniques and experience are indispensable. Iwatani has
sophisticated techniques and abundant experience in handling
low-temperature gases, which is the key to the supply of
Natural Gas. In addition, we already operate several dozen lor-
ries to transport LNG, and built a group-wide system that cov-
ers all aspects of the Natural Gas supply business, including
logistics, and the production, engineering, security and mainte-
nance of supply facilities. Our accumulated know-how is effec-
tively applied to the supply business of Koga Energy. Iwatani
will increase its role in promoting the use of Natural Gas.
"Satellite Supply" by Koga Energy Opens UpNew Possibilities of Natural Gas Supply
Demand for Natural Gas is growing every year in Japan.
70 percent of Natural Gas is used for power generation, 30
percent for city gas (where industrial use rate is highest), and
the rest for domestic use. Demand for this environmentally
friendly, stable energy source will increasingly grow in the
future.
Growing Demand for Natural Gas
Iwatani Has the Nation's Most AdvancedNatural Gas Handling Technology
Sale of LNG in Kanto at the End of FY 2007 is PlannedExpansion of Annual Sales to 300,000 Tons
■ Demand for Natural Gas (by use)
■ Iwatani's Natural Gas Supply Business Model
■ Source: Ministry of Economy, Trade and Industry "Yearbook of Production, Supply and Demand of Petroleum, Coal and Coke," and Ministry of Finance "Japan Exports & Imports" Expanding supply area
4 Sustainability Report 2007
Iwatani, as the leading supplier of hydrogen in Japan, has
focused on the development of hydrogen supply infrastruc-
tures in order to realize a hydrogen energy based society.
Our "operation center", Hydro Edge Co., Ltd., is the nation's
largest liquid hydrogen production plant. It started operation
in April 2006.
Hydro Edge was founded as a joint venture by Iwatani and
Sakai LNG Co., Ltd., a member of the Kansai Electric Power
Group. It has the Japan's first innovative plant for combining
the production of liquid hydrogen and air-separation gases.
Liquid hydrogen production capacity is the highest in Japan,
with two lines each capable of producing 3,000 liters/h by liq-
uefying gaseous hydrogen obtained from natural gases
through steam reforming.
Liquid hydrogen, which has better transportation and stor-
age characteristics than compressed (gaseous) hydrogen,
will bring innovation to the distribution and application of
hydrogen. With Hydro Edge as our operation center, Iwatani
is building hydrogen supply infrastructures while looking
ahead to the future of a hydrogen energy based society.
Feature Story : Best Energy Mix and More...― Hydrogen Energy
Operation of a New Infrastructure Model Starts in aMove Towards Hydrogen Energy Based Society
A Hydrogen Supply Network Expanding from "Hydro Edge"― the Nation's Largest Capacity Liquid Hydrogen Production Plant
Liquid hydrogen loaded into a lorry for long-distance transportationA lorry can transport approx. 16,000 cubic meters hydrogen at a time.
Two tanks each having astorage capacity of 300kilo liters of liquid hydro-genStable supply has beenachieved in response toincreasing demands forhydrogen
"Hydro Edge" (Sakai City, Osaka Prefecture)
Expanding liquid hydrogen supply areas
■Infrastructure network for hydrogen fueled vehicles expanding from Hydro Edge
Hydro Edge
Satellite stationLiquefied Hydrogen storage type mobile refueling station
Liquid hydrogen transportation lorry
Satellite station
Off-site station
Liquefied Hydrogen storage type mobile refueling station
Iwatani has also promoted the
development of new applications
for hydrogen, achieving steady
results. For example, the fuel cell
powered bicycle, equipped with
our hydrogen occlusion alloy
(metal hydride) tank, is capable of
generating 300 watts of output
power. It is expected to be used as
a convenient and clean means of
transportation.
The "hydrogen fuel cell type
power generation system," which
combines a lightweight high-pres-
sure hydrogen supply system,
developed by Iwatani, with the "FC
Box" fuel cell power generator
from Ebara Ballard, is capable of generating 850 watts of power,
quietly and free of greenhouse gases, with a start time of a minute
or so. This could be useful for power generation during disasters
and emergencies.
We are also developing Japan's first "mobile fuel cell power sup-
ply vehicle" equipped with an on-board 10kW pure hydrogen-type
fuel cell, aiming at a wide variety of applications, including emer-
gency power supplies during disasters, and power supplies for out-
door construction and events. As these examples show, Iwatani's
activities exploiting the possibilities of hydrogen extend to every cor-
ner of society and people's lives.
5Sustainability Report 2007
As part of the JHFC (Japan Hydrogen & Fuel Cell Demonstration
Project) led by the Ministry of Economy, Trade and Industry, Iwatani
constructed a "JHFC Kansai Airport Hydrogen Station" at Kansai
International Airport on May 7, 2007 in order to start a demonstra-
tion project for supplying liquid hydrogen to the hydrogen fueled
vehicles and mobile power supply vehicles in the airport. Liquid
hydrogen is delivered from Hydro Edge using a "Liquefied Hydrogen
storage type mobile refueling station" co-developed by Iwatani and
Kansai Electric Power.
The JHFC Kansai Airport Hydrogen Station is a small-sized satel-
lite supply station that can be expanded in line with future increases
in hydrogen demand. At present, it is capable of filling one or two
fuel cell vehicles at a time, but can be developed to a full-scale
hydrogen station by adding facilities.
"The Liquefied Hydrogen storage type mobile refueling station" is
an on-board installation designed for providing a hydrogen delivery
service. Efficient use of a mobile station will allow hydrogen to be
delivered to demand
locations spread over
wide areas.
As we are still at
the dawn of a hydro-
gen energy based
society, Iwatani will
steadily promote the
use of hydrogen by
proposing suitable infrastructure models that meet the hydrogen
demands of the times, and will improve hydrogen supply infrastruc-
tures in phases as our proposals bear fruit.
Infrastructure models meeting the needs of the times"JHFC Kansai Airport Hydrogen Station" and "LiquefiedHydrogen storage type mobile refueling station"
JHFC Kansai Airport Hydrogen Station
Development of HydrogenApplications
Japan's first offsite hydrogen station"JHFC Ariake Hydrogen Station"
Mobile fuel cell power supply vehicle
Hydrogen fuelcell type powersupply system"FC Box"
Liquefied Hydrogen storage type mobile refueling station
Fuel cell powered bicycle
6 Sustainability Report 2007
Feature Story: Best Energy Mix and More...― LPG
We Promote Stable Supply �and Efficient Use of Clean Energy LPGWe Promote Stable Supply �and Efficient Use of Clean Energy LPG
Replacing Gas Delivery Trucks with LPG Vehicles Compliant withthe new Long-Term Exhaust Emission RegulationsFuel Facility Secondary production Transportation Production
Basic unit of greenhouse gas emissions (g-C/K-Mkcal)
Coal
Oil
LNG
City gas
LPG
0 20 40 60 80 100 120The first LPG-fueled vehicle wasdelivered to Home Energy Tokai.
From Households to Factories, Promotingthe Use of LPG
Source: LPG Reader
Iwatani is the sole organization in Japan providing an inte-
grated network from import to delivery of LPG to home users.
We deliver LPG to about 3 million households nationwide
with the brand name "Marui Gas." Having a history of more
than 50 years, "Marui Gas" is the most familiar LPG brand
among consumers.
About three quarters of the LPG consumed in Japan is
imported from overseas. Iwatani has four stockpiling bases in
Japan for assuring stable supply. To reduce CO2 emissions,
we have also promoted the introduction of high-efficiency
equipment and cogeneration systems utilizing the environ-
mental properties of LPG, as well as offering a simple LPG
filling system to disseminate the use of LPG-fueled vehicles.
The LPG (liquefied petroleum gas) is a compound of car-
bon and hydrogen, consisting mainly of propane and butane.
Its gross calorific value per volume is high, about 2.2 times
that of city gas. Other excellent characteristics include very
low CO2 emissions in combustion.
Comparing various energies in terms of their environmen-
tal burdens throughout their life cycles, from production to
consumption (life cycle assessment), shows that LPG has
the smallest carbon (C) emissions per calorie. It is a proven
energy which, along with natural gas, has a small impact on
global warming.
LPG, used in 25 million households around the nation as
domestic energy, draws our attention again as a very familiar
clean energy.
LPG, Clean Energy the Public is Familiar With
Our 19 regional home energy companies for house-to-house delivery of LPG
nationwide have been replacing their gas delivery
trucks with environmentally friendly LPG-fueled
vehicles, and the first such vehicle, compliant with
the new Long-Term Exhaust Emission Regulations,
was introduced this July. Existing trucks will be
replaced at the time of renewal, step by step, at a
rate of about 100 vehicles a year.
■ Environmental burdens of various energies in relation to global warming
7Sustainability Report 2007
Biogases are a clean gas energy recovered from methane
gas produced by organic waste materials or manure etc., and
are typically used for fueling compressed natural gas vehi-
cles and in power generation. Biogases can also be reformed
to hydrogen for use as the raw hydrogen material used for
fuel cell vehicles. Iwatani has participated in the construction
and operation of various biogas facilities as part of our efforts
for the practical application of biogases.
Feature Story: Best Energy Mix and More.... ― Various activities
Pursuing the Possibilities of Clean Energies through Various Activities
Biogases
The 15th World Solar
Car Rally was held at
Solar Sports Line in Ogaki
Village, Akita Prefecture
from July 27 to 29. This is
the fifth meet since the
fuel cell car section was added, and six of the 32 teams
joined in the fuel cell car section this year. Since its inception,
Iwatani has offered hydrogen to the participating teams and
cooperation with the rally.
Iwatani Offered Hydrogen to Fuel Cell Carsin the 2007 World Solar Car Rally
Special Co-sponsorship of the Osaka ScienceFestival for Youngsters, "Science Festa".
The "JHFC Ariake Hydrogen Station" is the nation's first liquid
hydrogen station jointly operated by Iwatani and Showa Shell
Sekiyu. Since its launch in June 2003, the station has filled many
fuel cell vehicles with hydrogen for the purpose of various demon-
strations and accumulating data relating to hydrogen stations.
On January 18, 2007, the total number of vehicles fueled at
this station reached 2,000, and the volume of refilled hydrogen
about 4,300 kg. With this amount of hydrogen, a fuel cell vehicle
could travel around the earth about 11
times. The hydrogen station served as
a meaningful way towards a hydrogen
based society by ensuring the safety
of hydrogen supply facilities.
A Total of 2,000 Vehicles Fueled at theAriake Hydrogen Station
DME (dimethyl ether) is a
fuel synthesized from natural
gas, coal or biomass. It is
expected to be a new clean
energy source because it is
easy to handle, and does not
emit black smoke or particulate matter (PM). Iwatani is devel-
oping technologies for applying DME to diesel engines and
cogeneration systems using diesel engines, while taking part
in a national proof test project for LPG composite fuels.
Synthetic Fuel DME
"The 1st Iwatani Hydrogen Energy Forum - Towards the Future
Hydrogen Based Energy Society," was held on December 11, 2006.
This is the first hydrogen forum held by the private sector. The
forum provided a "place" for forging close ties among participating
companies and organizations for the realization of a hydrogen-
based energy society, and drew larger numbers of participants than
expected from associated industries-
390 participated in the forum. The par-
ticipants actively exchanged opinions
and information for early realization of
a hydrogen based society.
The 1st Hydrogen Energy Forum
In line with the objectives of the festival, which is to help stop the falling
numbers of children interested in science - as Japan's future depends on
them - Iwatani participated in the Science Festa from last year as a special
co-sponsor. We chose "Hydrogen, A Future Energy - Feel the Power of
Hydrogen!" as the theme for this year's
festival (held on July 25 and 26).
Children enjoyed learning about the
future energy, hydrogen, through elec-
trolysis experiments using water and
handmade fuel cell driven mini-cars.
Fuel cell cars running at the maximum speedof 70 km/h.
Iwatani defines products that contribute to environmental improvements as "eco-friendlyproducts", and aims at improving the environment through everyday business activities.
ECO-FREEZE Bead Dry
Iwatani's high-purity carbon hydride coolant "ECOFREEZE" is a natural refrigeration medium that replaceschlorofluorocarbons. We have supplied ECO FREEZE toall the domestic refrigerator manufacturers, and offered atotal of 910 tons both in Japan and overseas, therebycontributing to a decrease in CO2 greenhouse gas emis-sions equivalent to about 2,080,000 tons.
Dry ice is pelletized into beads with diameters of approximately6mm in order to enlarge the total surface area, thus improvingthe cooling effect. This allows meticulous low-temperature con-trols of foods and other goods. We also provide thermal insula-tion containers for preventing the mixture of goods having differ-ent storage temperatures. This makes on-board refrigeratorsunnecessary thereby reducing the number of delivery trucks.
We provide a broad range of eco-friendly products from various business operations in Iwatani, including "MIX-GT" leak-resistive tire filling gas, the "Cassette-Feu Eco" - portable cooking stoves with good
thermal efficiency, the "Kansai Meijin Jr." canister-crusher for the safe release of flammable gases remaining in used gas canisters, and the "Aqua-Make" waste water processing system using oyster shells.
Eco-Friendly Products
The 2,000th car was a Nissan"X-TRAIL FCV".
Sponsoring the "Environmental Photo Contest"
Iwatani is sponsoring the "Environmental Photo Contest",
held under the auspices of PRESIDENT Inc. The contest
invites participants to submit photos on themes proposed by
sponsoring companies. Many photos were entered under the
Iwatani theme "Hometown" in 2007, and the "Iwatani
International Corporation Awards" was awarded to Mr. Kenji
Kuwabara for his photo entitled "Welcome Fires."
The "Hometown" theme is the starting point for a process
of rejuvenation that can enrich our minds. Our hometowns
may be gradually changing as a result of environmental dete-
rioration, but we hope that the warmth of the people commu-
nicated by "Hometown" will stimulate people's awareness of
the importance of environmental protection.
Cooperation with NHK Symphony Orchestra activities
Iwatani supports the objectives of the NHK Symphony
Orchestra as they "Aim to enhance and develop the musical
art of our country through symphonies, and accomplish the
orchestra's mission in society", and has cooperated in many
aspects of their activities
throughout the country
for 20years. A mainstay
of our activities is spon-
soring the classical music
concert "NHK Symphony
Orchestra "Summer"".
"ALALA" eco-friendly prod-
ucts are a range of environ-
mentally friendly detergents
and soaps made using with
100% natural ingredients.
Part of the proceeds from
Alala eco-friendly products
8 Sustainability Report 2007
Social Performance
Contribution to Local CommunitiesIwatani contributes to the security of local communities and environmental conservation, making the fullest use of human andinformation networks throughout the country, including our LP gas dealers. Such cooperation is helping to foster a rich culture.
"Marui Gas Emergency Taskforce" Contributing to RegionalDisaster Prevention and Post-disaster Restoration
The "Marui Gas Emergency Taskforce" is a disaster relief
support organization immediately mobilized in the event of
earthquakes, storms, floods, and other disasters. An emergency
disaster prevention network has been formed by Iwatani LP gas
dealers, with 3,000 qualified staff members standing by in 10
regional block branches throughout the country.
In the Niigata-ken Chuetsu Earthquake in October 2004, the
"Marui Gas Emergency Taskforce" metropolitan area branch
was mobilized, beginning work on the following day. In tough cir-
cumstances, and suffering frequent, strong aftershocks, a total
of 224 members of "Marui Gas Emergency Taskforce" participat-
ed in restoration activities for two weeks. They completely
restored LP gas operations for 1,960 customers, thus helping
secure their lifelines.
The "Marui Gas Emergency Taskforce Disaster Drill Day" is
observed on October 15 every year. On this day, nationwide
drills are carried out based mainly on field exercises which
include equipment inspections which focus on strengthening the
taskforce and education. In the event of a disaster, the "Marui
Gas Emergency Taskforce" can be mobilized immediately, in
any part of the country, to carry out LP gas restoration work, gas
equipment inspections, and gas leak detection. This approach,
unique to Iwatani (which delivers Marui Gas throughout the
country), provides customers with safety and security as well.
Support for cultural activities
Nationwide ALALA Club
sales are donated to the Association of National Trusts in Japan,
to be utilized for natural environment protection such as "100 m2
Movement Forest Trust" for the Shiretoko Peninsular.
Environmental protection cannot be achieved in a short space
of time. Iwatani intends to continue with its down-to-earth activi-
ties and local environmental protection activities.
Marui Gas Emergency Telephone Nationwide drills by the Marui Gas Emergency Taskforce
Activity of the environmental protectiongroup "100 m2 Movement in Shiretoko"
"NHK Symphony Orchestra": Iwatani supportstheir activities.
Photo that received the "Iwatani International Corporation Award" in the Environmental Photo Contest 2007
"Iwatani Research Grants for International Students", fund-
ed by the Iwatani Naoji Foundation, are provided to support
students studying natural sciences from East and Southeast
Asian countries who are funding themselves whilst studying
at graduate schools in Japan. The objective of this scheme is
to provide individuals who are expected to maintain close
relations with Japan, and who embody the fruitful outcomes
of friendship and exchange, with opportunities and research
support, thereby deepening international mutual cooperation
and understanding and contributing to the improvement of
peoples' lives in both countries.
9Sustainability Report 2007
International ActivitiesWe focus our support on engineers and overseas students studying in Japan, so that theycan drive development in their own countries.
Support for Energy TechnologyThe Iwatani Naoji Foundation supports scientific and technical research and developmentwith the themes of resources, energy and the environment.
Iwatani Naoji Memorial Prizes / Iwatani Science and
Technology Grants
The Iwatani Naoji Foundation grants funds for and promotes sci-
ence and technology research through the "Iwatani Naoji Memorial
Prizes", awarded for excellent achievements in research and
development in the field of resources, and through the "Iwatani
Science and Technology Grants" for natural science researchers
in colleges and universities throughout Japan. Issues relating to
resources, energy, and the environment, which have been adopted
as themes for more
than 30 years since
the Foundation was
established in 1973,
have been increasing-
ly highlighted since
the start of the 21st
century.
Scholarships for international studentsDalian City - Iwatani Japan-China WeldingTechnology Seminar and Contest
Since 1997, Iwatani has held Dalian City - Iwatani Japan-
China Welding Technology Seminar and Contest for the pur-
pose of further improving welding technology in Dalian, and
contributing to the development of Dalian. (A welding skills
contest for the "Iwatani Prize" and a welding seminar are
held alternately every other year.).
In the 10 years from 1997 to 2006, a total of 30,000
welders applied to the test & selection process, 1,200 were
qualified to participate in the city level competition, and the
top 42 were selected for study tours to Japan. These activi-
ties have contributed in a big way to improving welding tech-
nologies and fostering human resources.
■Winners of the 33rd "Iwatani Naoji Memorial Prizes" (2006) (Honorific titles omitted)
■Recipients of the 33rd "Iwatani Science and Technology Grants" (2006)
Organization
Tokyo Electric Power Company. Construction Dept, Electric Engineering Group for Hydro Power Plants
Development and practical use of mass production system of high-efficiency solar cells
Development and application of new type runner with splitter blades to pumped storage power plants
Division General manager Tatsuo Saga
Assistant manager Shigenori Watanabe
Representative researcher Theme of achievementSharp Corporation.�Solar Systems GroupNew Technology Development Center
OrganizationKitami Institute of TechnologyFaculty of Engineering
Tokyo Institute of TechnologyGraduate School of Science and Engineering
Novel, low cost and high performance hydrogen permeation alloys
Prof. Kiyoshi Aoki
Mechanical behavior and fracture mechanics of zirconia and ceria electrolytes for solid oxide fuel cells
Assistant Professor Wakako Araki
Osaka Prefecture UniversityGraduate School of Engineering
Hydrogen production using anaerobeAssoc. Prof. Hiroyasu Ogino
Keio UniversityFaculty of Science and Technology
Development of catalysts and electrolyte membrane for polymer electrolyte fuel cell
Assistant Akiyoshi Kuzume(Ph.D.)
Nagasaki UniversityFaculty of Engineering
Development of recyclable oligo-urethane elastomers
Assoc. Prof. Ken Kojio
Researcher R&D theme
(Excerpts from 19 presenters (in random order))
Dalian Welding Seminar
Environmental Management System
10 Sustainability Report 2007
Environmental Performance
Iwatani is engaged in environmental activities throughout companies in the group. To further improve results, we are reinforcing theorganization and systems in an effort to enhance employees' awareness.As a result we were able to achieve steady results in FY 2005.
Environmental Management System
Iwatani's Environmental Management System (EMS) at our
Head Offices in Tokyo and Osaka, the Shiga Technology
Center, and other major 7 operational bases in the country
(which accounts for more than 70% of our employees), have
obtained ISO14001 certification. Other branch offices and sales
offices have also developed the management system under
Head Office and major operational base guidance. The "Disaster
& Environment Control Committee" discusses the implementa-
tion of important items concerning environmental management.
The Group's ISO Promotion Staff Meeting
"The Group's ISO Promotion Staff Meeting", with representa-
tives from major subsidiaries and affiliates that have acquired
ISO certification, has been regularly held since FY 2001.
Agreements over future directions, information exchange, and
guidance, strengthen the environmental management system of
the Iwatani Group. Our overseas companies are also working
towards obtaining ISO certification.
Internal audits of EMS are carried out twice a year for all units
in the company. Any non-conformities found are dealt with
immediately. In FY 2006, they were carried out in July and
January, and no major non-conformities were found. In
November 2006, a re-certification assessment of ISO14001 was
carried out by the High Pressure Gas Safety Institute of Japan,
and we were assessed as effectively running the EMS.
ISO14001 assessment in 2004
Environmental education using internal LAN
Overseas companies that acquired ISO certification ISO9001…20 companies/ISO14001…7 companies
ISO14001 Sub-committee 21 companies
ISO9001 Sub-committee 19 companies
Secretariat(Safety and Environment Department,
Global Environment)
Chairman (Executive Officer; Environmental Issues)
Time ContentEducation Courses
Introductory training
Education by rank
Group training
Follow-up
Recruit training
Management training
At beginning of fiscal year
As required
General environmental issues, summary of EMS, advantages of environmental activitiesSelection of environmental aspects, setting of targets and goals, sustainment of EMSEnvironmental goals, procedures of environmental activities, compliance proceduresInformation supplement via internal LAN, awareness confirmation tests
■The Group's ISO Promotion Staff Meeting
Internal audit / Assessment by an external organization
Iwatani provides the following
education to enhance employees'
awareness of the environment.
Environmental education
For our affiliated companies who have not acquired ISO certi-
fication, we conduct onsite assessment and point out items
requiring improvement in order to enhance levels of compliance
with environmental laws and regulations. Assessment is made in
accordance with priorities determined after studying the environ-
mental impact of each company. In FY 2006, assessment and
guidance were provided for 3 business operations. We continue
to carry out assessments and guidance in FY 2007 to ensure
compliance throughout the Group.
Complete Compliance of Affiliated Companieswith Environment Related Laws and Regulations
Range covered by ISO14001 certification
President
EMS office (Safety and Environment Department, Global Environment)
Branch offices、 Sales Offices Branch offices、 Sales Offices Branch offices、 Sales Offices
Branch block (8 units)
Osaka block (15 units)
Tokyo block (17 units)
Risk Management Committee
Internal environment auditors
Disaster & Environment Control Committee
Chairman of the Disaster & Environment Control CommitteeThe environmental management Representative
(Executive Officer; Environmental Issues)
■EMS operation organization
11Sustainability Report 2007
FY 2006 Summary of Environmental PerformanceIwatani strives to check and improve environmental performance in order to reduce theburden of our business activities on the environment.
Results of environmental activities in FY 2006
In the Iwatani EMS, environmental objectives are set every
year with the aim of attaining the environmental targets for
the 3-year medium-term plan. We have activities relating to
10 items in our environmental objectives for FY 2006 to FY
2008. The actual achievements regarding environmental tar-
gets in FY 2006 are shown in the table below.
Eco Office
The status of the "Eco Office Activities" we have been con-
ducing since 1999 is shown in the graphs below.Burnable
garbage is steadily decreasing. Electricity use is tending to
decrease, but still remains high.
■Results of the environmental activities in FY 2006
3,088
2,896
2,973
2,848
2,912
3,005
2,762
2,864
2,9922,965
2,933
2,841
2,8102,779
2,996
3,088
,99
,00
,01
,02
,03
,04
,05
,06
35000
39000
43000
47000
51000
55000(Unit: kg)�
,99
,00
,01
,02
,03
,04
,05
,06
2600
2700
2800
2900
3000
3200
3100
(Unit: MWh)�
ActualTarget
ActualTarget
53,49653,496
48,146
47,174
45,421
45,471
42,796
45,471
43,86742,797
43,425
47,495
52,304
45,00143,863
42,802
■Amount of burnable garbage ■Electric power consumption
Iwatani's Material BalanceThe "Material Balance" indicates the overall picture of the impact of Iwatani on the environment.
We also started researching the burden of the whole Iwatani Group on the environment in FY 2003. We will make efforts to
improve environmental efficiency in our business activities by reducing resources and energy input as well as the amount of
waste and energy-derived CO2 emission.
12 Sustainability Report 2007
Environmental Performance
13Sustainability Report 2007
※ Law concerning the Rational Use of Energy:
A law that specifies the rational use of energy.
Supply Chain Management SystemCooperation with customers and suppliers is also important for environment-conscious business activities. Iwatani is making efforts in the area of supply chain management such as green procurement and quality assurance.
Green procurement
EU directives regulating chemical substances such as RoHS
and ELV are applied to all products sold in Europe including
those exported from Japan. Therefore, manufacturers doing
business in the European market must examine the records of
components and raw materials used, and stringently control pur-
chased materials so that finished products do not include chemi-
cal substances restricted by regulations. (Green procurement)
Iwatani also examines substances with a potential environ-
mental burden in goods supplied to us so that we can meet
requirements demanded by our customers, such as Sony Green
Partner Standards. At the same time, we carry out green pro-
curement from suppliers, and provide our customers with quality
assurance and certificates for non-use of environmentally harm-
ful substances, thus contributing to a greener supply chain.
Target reduction setting for CO2 emitted in the context of logistics
Iwatani has strived for improving the efficiency in freight transporta-
tion consigned to cargo carriers inside and outside the group by merg-
ing/abolishing existing logistics centers, using transportation means with
less environmental burden and, eco-driving. The volume of freight trans-
portation in FY 2006 as a specified consigner provided in the Law con-
cerning the Rational Use of Energy was around 210 million tons, and
CO2 emissions involved this transportation were 32,000 tons.
Quality assurance
supports analysis by the Gas Technology Department [Quality
Management] for their quality assurance of industrial gases (i.e.
analysis of various gases, instructions for gas analysis, and the
selection of analysis equipment).
The separate gas plants in the Iwatani Group have acquired
ISO9001, the international standard for quality management, and
have established a high level quality control system, thereby pre-
venting environmentally harmful substances from being mixed in.
Iwatani is a gas manufacturer as well as a trading company, and
pays utmost attention to the quality of gases we ship as our own
products. In order to assure the purity of gases required by our cus-
tomers, respective Divisions, Safety & Environment Department,
and Technology Development Department [Quality Management]
cooperate together to establish a quality assurance system. In
implementing the system, with industrial gases for example, the
Technology Development Department [Shiga Technology Center]
Iwatani's Measures to the environment
LogisticsThe transportation sector accounts for over 20% of total CO2 emission in Japan, making it essential to reducetheir emissions. Iwatani also strives to reduce environmental burdens from logistics throughout the group.
Iwatani's Measures to the environment
ISO9001Plant ISO14001
Iwatani Industrial Gases Corp. Kofu Plant
Air Chemicals Corp. Kitsuregawa Plant
Sanyo Air Chemicals Corp. Ohtake Plant
Hokuriku Air Chemicals Corp. Tsuruga Branch
○�
○�
○�
○�
○�
○�
─�
─�
Suppliers�
Customers�
Consumers
Deliver compliant product
Certificates for non-use of environmentally harmful substances
Sell environmentally friendly products
Indicating required items(Green procurement)
Communication of requirements Examine / Instruct
■Green supply chain
■Separate gas plants of the Iwatani Group
Environmental AccountingIn order to reflect costs for environmental measures and their effects on the environmental management system of the compa-
ny, as well as to widely disclose relevant information, we are compiling "Environmental Accounting" that can quantitatively assess
efforts by the company towards environmental conservation.
14 Sustainability Report 2007
Environmental Performance
Iwatani's Environmental Action(s)
Septic tank maintenance costs etc.
Introduction of low-emission vehicles
Costs of recycling and disposal of waste
Commission based on the Containers and Packaging Recycling Law
Commission based on the Home Appliance Recycling Law
Supply chain management costs
Costs for developing and operating the EMS
Environmental information disclosure / Environmental advertisement
Environmental burden measurement
Costs for environmental education
Environmental maintenance around business sites
Research and development of products concerning environmental conservation, etc.
Donation to groups conducting environmental conservation activities*
Costs for environmental restoration work etc.
0
0
772
27,492
3,456
2,286
961
8,000
61,284
2,500
7,452
2,697
1,537
678,227
300
32,800
829,764
Business area costs
①Pollution prevention costs
②Global warming prevention costs
③Resource circulation costs
Upstream/Downstream costs
Administration costs
Research and development costs
Social activity costs
Environmental remediation costs
Total
Category Summary of major actions and results Investments Costs
(Period: April 1, 2006 to March 31, 2007 [Units: 000 yen])
*Donation to the Association of National Trusts in Japan, etc.
Compliance with Laws & Regulations and Negative InformationIwatani strives to comply with environmental laws and regulations as well as requirements of others concerned. Should any problems be identified, we will promptly disclose relevant information.
Compliance status in FY 2006
We have been urging our employees to be aware of environment
related laws and regulations and compliance in their areas of responsi-
bility. However a case of violation of the law (the Cabinet Order of the
Labor Safety and Sanitation Law) was found in FY 2006.
Furthermore, two cases of soil contamination were found on our
properties which were being sold; we took appropriate measures for
decontaminating the land before selling the properties. Otherwise there
were no cases of incidents that affected the environment either inside
and outside premises.
Talc powder in violation of the Cabinet Ordinance
concerning the revised Labor Safety and Sanitation Law
On September 13, 2006, the Osaka Central Labor Standards
Iwatani's commitment to the environment
■Status of compli-ance with FoodRecycling Law
■List of environment related laws and regulations
Examples applicable Major laws and regulations concerning our business Compliance status
High Pressure Gas Safety Law
Poisonous and Deleterious Substances Control Law
Containers and Packaging Recycling Law
Waste Disposal and Public Cleansing Law
Air Pollution Control Law
Soil Contamination Countermeasures Law
Labor Safety and Sanitation Law
LP gas sales
Ammonia sales
Cassette-Feu sales
Disposal of business waste
Use of boilers
Investigation of soil contamination
Rules concerning Asbestos
Yes
Yes
Yes
Yes
Yes
Yes
No
*The objective of the law is to decrease total food waste by 20% by FY 2006. We have reduced the amount of waste by restraining waste generation.
Waste(kg)�FY vs.2002
2002
2003
2004
2005
2006
86,833
54,256
18,918
29,052
28,361
─�
-37%�
-78%�
-67%�
-67%�
Supervision Office of Osaka Labour Bureau pointed out that our talc
powder (raw material from Shuen, China) for use in electronic materi-
als sold after September 1, 2006 had contained more than 0.1%
asbestos, which was in violation of the Cabinet Order concerning the
Labor Safety and Sanitation Law revised on September 1, 2006.
Immediately after that, we took appropriate measures under the
supervision of the Osaka Central Labor Standards Supervision Office of
the Osaka Labour Bureau. However, we are deeply regret for any inad-
equacies in confirming and in understanding the new law enforced on
September 1, 2006, and will make companywide efforts to prevent this
kind of incident in the future.
15Sustainability Report 2007
No.
Expansion of use of eco-friendly products
Promotion of environmental activities
Reduction in electricity and energy use
Reduction in burnable garbage
①�
②�
③�
④�
⑤�
⑥�
⑦�
⑧�
⑨�
⑩�
⑪�
390 points (cumulative in 3 years)
13,500 points (cumulative in 3 years)
Proportion of LPG vehicles : 72.8%
1% reduction (from FY 2005 level)
Efficiency improvement 3%
130 points
4,500 points
Reduction of 292 million pages.
Proportion of LPG vehicles : 66.9%
Introduction of additional 100 LPG vehicles
1% reduction (from FY 2005 level)
Efficiency improvement 2% Reduction of greenhouse gas emissions by the Iwatani Group (Energy efficiency improvement in air separation factories)
Thorough compliance with environmental laws and regulations in constructing factories and equipment work.
Reduction of environmental burdens by rationalization of logistics
Reduction in forms output at the center as a result of ERP
Reduction in environmental burdens by business vehicles (Iwatani International companywide)
Reduction in environmental burdens by delivery trucks, etc. (affiliated companies)
Thorough compliance by affiliated companies with environmental laws and regulations
Research into compliance with laws and regulations and support for taking measures : 9 business operations (cumulative in 3 years)
Thorough compliance with environmental laws and regulations
Reduction of 7.56 million pages (3 years cumulative total)
Replacement with 200 LPG vehicles(cumulative over two years)
Research into compliance with laws and regulations and support for taking measures : 3 business operations
Thorough compliance with environmental laws and regulations
2% improvement in transportation efficiencyIn terms of energy use ratio to the volume of transportation (ton-kilo) in FY 2006
1% improvement in transportation efficiencyIn terms of energy use ratio to the volume of transportation (ton-kilo) in FY 2006
①1% reduction (from. FY 2005 level) ②Sorting 100% achievement
①1% reduction (from. FY 2005 level) ②Sorting 100% achievement
Item Environmental Objectives (FY2006 to FY2008) Goals in FY 2007
Number of issues: �3,000 copies
Businesspartners
48%
Seminars, etc.15%
In-house use31%
PR, IR 6%
FY2007 Environmental Objectives and Targets
Assessment of FY 2006 activities
The "Environmental Objectives" we set out to achieve over the 3-year period up to FY2008, and our FY2007 "Environmental Targets", are
described in the table below. The targets were set, taking into consideration the reductions of environmental burdens at Iwatani offices and logistics
operations, the beneficial environmental activities and compliance with laws and regulations, and the environmental burdens at group companies.
Environmental communication
To raise awareness of Iwatani's environmental initiatives,
we distributed the "Sustainability Report 2006" and included
environment-related information on our web site in FY2006.
Safety & Environment Department (Global Environment) has
responded to the questions and opinions put to the public
information office and other enquiries.
As a result, there were no complaints regarding Iwataniユs
environmental activities in FY2006. We have also worked
hard to disclose information in good time, and have regularly
updated our website content.
Obtaining ISO certification
Iwatani supports the business of obtaining ISO certification
for the quality and/or environmental management, fully utiliz-
ing know-how obtained in the experiences of obtaining
ISO9000 and ISO14001, for our company and companies in
the Iwatani Group. We have a good reputation for construct-
ing compact systems appropriate for company size and line
of business, as well as sophisticated follow-ups. Please con-
tact us if you are studying how to obtain ISO certification for
purposes such as green procurement.
In "The 10th Environmental Management Survey of
Companies" (Nihon Keizai Shimbun Inc.), we were ranked
6th in the trading company sector. We were as highly rated
as the year before (7h in the trading company sector).
Iwatani's Environmental Action(s)
■Sustainability Report distribution and use in FY2006.
16 Sustainability Report 2007
Company Name �Incorporated �Established �President �Paid-in Capital �Net Sales �Number of Employees �Number of Business Operations ��Number of Shareholders�Fiscal Year Ended
Corporate DataIwatani International Corporation�February 2, 1945�May 5, 1930�Akiji Makino�¥20,096million. �¥544.3 billion (in March 2007)�1,376 (as of April 1, 2007)�95 [89 in Japan, 6 overseas]� (as of April 1, 2007) �28,436 (as of March 31, 2007)�March 31
We aim to produce even better reports reflecting readers'opinions.�If you have any opinions or questions about the "Sustainability Report 2007", please contact us.������Information on Iwataniユs environmental initiatives can be found on our web site as well as in this report. The site has information updates subsequent to the publication of this report, as well as a PDF version of this report.
Safety and Environment Department - Global Environment�Mail address: [email protected]�TEL: 03-5405-7027 FAX:03-5405-7028 Tokyo, Japan
Information service (concerning environmental measures) on the Internet at: �http://www.iwatani.co.jp/jpn/company/ecology/index.html
Environmental Chronology1953
1970
1973
1978
1980
1991
1994
1996
1997
1998
1999
2000
2001
2002
2006
Oct.
Oct.
June�Dec.
Dec.
Apr.�Dec.
Mar.�Apr.�May�Aug.�Nov.�
�Dec.
Dec.
Apr.
●First to start sales of LP gas for domestic use in Japan, � under the brand name "Marui Propane"
●Announced the corporate slogan "Our aim is to making the Earth a good place to live" � in commemoration of the Company's 40th anniversary.
●Established the Iwatani Naoji Foundation� Started providing awards and grants for science and technology research and development, � including environmental conservation, and established a scholarship system for international students
●Started first liquid hydrogen production for commercial use in Japan.
●Sakai LPG terminal was completed and started operation
●Opened the first automobile LPG filling station on an expressway in Japan in the Tomei Ashigara service area.
●Kashima L.P.G. Joint Stockpiling Terminal was completed and started operation
●Held the 1st Environment Committee
●Established the "Iwatani Group Environment Charter"�●Exhibited at "Eco Japan '97", jointly held with the 3rd Session of the Conference of the Parties � to the United Nations Framework Convention on Climate Change (COP3) in Kyoto. �●Joined the Green Purchasing Network
●Tokyo Head Office and the Metropolitan Block Branch received "Recycle Promotion Commendation; � Recycling Council Chairman's Award"�●Started publishing the Environmental Report
●Osaka Head Office and the Kinki Block Branch received "Osaka Environmental Prize・Special Commendation Award"�●The 4th Environmental Management Survey by Nihon Keizai Shimbun Inc.� Obtained "A"rank in all items in the trading company sector (non-manufacturing sector)
●The 5th Environmental Management Survey by Nihon Keizai Shimbun Inc.� Ranked No.1 in the trading company sector (non-manufacturing sector) and No. 4 out of all companies
●The 6th Environmental Management Survey by Nihon Keizai Shimbun Inc.� Ranked No.2 in the trading company sector (non-manufacturing sector) and No.5 out of all companies
●Started operation of the "Hydro Edge" liquid hydrogen manufacturing plant.
●Launched the premiere issue of "PASSPORT", the environmental information bulletin (in-house bulletin) �●Established "Iwatani's Environmental Policies"�●Held first environmental seminar as part of personnel training course �●Started the operation of the environmental management system�●Sakai LPG terminal � received "Tree Planting Award of the Osaka Chamber of Commerce and Industry"�●Acquired ISO14001 certification