JFE'S ENVIRONMENTAL ACTIVITIES AND SOCIAL COMMITMENT

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 JFE'S ENVIRONMENTAL CONSERVATION EFFORTS
Based on the JFE Group's environmental philosophy stating “improving the global environment to be of utmost importance for management and promoting business operations in harmony with the environment to create a prosperous society,” we aim to minimize the negative impact on the environment by our mainstay steel and engineering businesses and contribute to enhancing the quality of the global environment. To that end, we are actively addressing the environmental issues of global warming, resource recycling and energy conservation, utilizing our own long-established technologies.

ENERGY CONSERVATION MEASURES
—PREVENTING GLOBAL WARMING
JFE Steel is expending great efforts to reduce our CO₂ emissions, mainly by improving the efficiency of our facilities and making continuous production processes. In the year ended March 2004, crude steel output grew about 2% from the year before in response to growing demand. However, as a result of our energy conservation efforts, we succeeded in reducing the amount of energy used to produce each ton of crude steel by 3%.

JFE'S TECHNOLOGIES FOR CONTRIBUTING TO A SUSTAINABLE SOCIETY
Applying various Only One and Number One technologies, the JFE Group provides the following products and services that help to prevent global warming, reduce the burden on the environment and form a sustainable society.

•	Advanced and innovative steel ecological products
•	Engineering services which reduce environmental loads in society
•	Recycling through a synergy of steel and engineering technologies

 COOPERATION WITH SOCIETY
Through the JFE 21st Century Foundation (originally founded as the Kawasaki Steel 21st Century Foundation in 1990 and renamed in April 2003), the JFE Group supports university researchers in their study of topics related to steel and the environment. In the year ended March 2004, such support totaled ¥50 million for a total of 25 research projects (cumulative total in fiscal 1992/3-2004/3: ¥490 million for 242 projects).
  In addition, we have created educational materials to introduce the Japanese steel industry's most advanced production technology, environmental technology and energy conservation technology, and distributed them to domestic and foreign universities. We have also published and distributed to middle schools, high schools, libraries and affiliated organizations books about the science of steel, with the aim of fostering interest in steel and science. In this way, we hope to make a contribution to the promotion of the steel industry in the 21st century and the creation of a rich and healthy lifestyle. We would also like to see Japan's steel technology, which is quite advanced in terms of environmental policies and energy conservation, be useful in protecting the global environment.

	JFE GROUP STANDARDS OF BUSINESS CONDUCT
	1.	Provide quality products and services
		Earn high regard and trust from customers by using excellent technology to provide quality products and services.
	2.	Communicate openly with society at large
		Endeavor to communicate with shareholders and the broader community and actively disclose corporate information.
	3.	Coordinate and cooperate with the community
		Actively contribute to the community as a good corporate citizen with a spirit of coordination and cooperation.
	4.	Globalize
		Endeavor to achieve mutual understanding with people around the world, working from a global perspective and respecting local cultures and customs.
	5.	Exist in harmony with the global environment
		Contribute to the achievement of better living standards and the creation of societies that exist in harmony with the global environment.
	6.	Maintain proper relations with governments and political authorities
		Endeavor to build and maintain sound and proper relationships with governments and political authorities.
	7.	Respond appropriately to antisocial elements
		Firmly resist all elements and organizations that threaten social order and stability, and refuse all illegal or improper demands.
	8.	Respect human rights
		Respect all employees and members of the general public as individuals and refrain from any discrimination in corporate activities.
	9.	Provide motivating work environments
		Provide employees with attractive, safe and motivating work environments.
	10.	Comply with laws and ordinances
		Comply with all applicable laws and ordinances, endeavor to compete fairly and freely, refrain from illegal business activities, promote sound business practices, and be faithful and sincere in all activities and dealings.