appendix of kubota csr report 2010appendix of kubota csr report 2010 titles marked * are provided in...

Appendix of Kubota CSR Report 2010 Titles marked * are provided in this PDF

Basic Concept (The Kubota Group Slogan/Corporate Mission

Statement/Management Principles/Charter for Action)

In Editing the CSR Report 2010/INDEX

Commitment by Top Management (Interview with the President)

Celebrating the 120th anniversary of the company's foundation

Special Report 1 / Contributing to the Improvement of Global Water

Resources and Infrastructure

Special Report 2 / Contributions toward the Prevention of Climate Change

The Fundamental Principles of Kubota's CSR Management

Fundamental Ideas on CSR Management

* Compliance /Corporate Governance /Internal Control System

Raising CSR Awareness among Employees

Economic Report

Kubota Group Profile

Special Topics (Food/Water/Environment)

Social Report

Summary of the Fiscal 2010 Social Report, Priority Issues for the Next Fiscal

Year and Medium-Term Goals /Kubota's response to the asbestos issue

Winning Customer Satisfaction

* Status of ISO9001 Certification

Conducting Corporate Activities Based on Compliance with Legal Regulations

and Ethical Principles

* Actions taken to prevent the infringement of the intellectual property rights

/Personal information protection /Enhancement of information security

measures /others

Respecting Human Rights

Creating a Safe and Vibrant Work Environment

* Personnel policy and personnel system /Promoting action plans to the Next

Generation Nurturing Support Measures Promotion Law /Promoting diversity

management

Achieving Symbiosis with International and Local Societies

* Support for "Japanese and Chinese Speech Contest" /Support for "Child

Paintings Exhibition" /Agricultural education provided at a Japanese school

in India /others

Fulfilling Responsibilities for Improving Management Transparency and

Accountability

* Main contents of the website /Ratio of foreign shareholders

Environmental Report

Basic Policy/The New Medium-Term Environmental Conservation Plan

Kubota Group Business Activities and Environmental Loads

* Trends in major environmental indicators

* Data on production plants

Environmental Management

* Environmental management promotion system

* Environmental risk management

* Environmental education

* Environmental accounting

* Green purchasing / green procurement

* ISO14001 certification

* Environmentally friendly products

Stopping Climate Change

* Data concerning CO2 emissions

* Conversion coefficient

Working towards a Recycling-based Society

* Data concerning resource recycling

Chemical Substance Controls

* Results of PRTR reporting / Groundwater monitoring

Conservation of Biodiversity

Independent Review on the Environmental Report

* Calculation standards of environmental performance indicators

Comments on the CSR Report

Questionnaire

Inde

pend

ent A

udito

rsSystem Used to Implement CSR Management

Thorough compliance

At KUBOTA, we have established a CSR Planning & Coordination Headquarters and appointed an executive officer in charge of this headquarters to ensure full compliance with all applicable laws and regulations. An “Anti-Monopoly Act Compliance Committee” was also set up in each Business Section in reflection of violations of theAnti-Monopoly Act, and systems of education and auditing have been organized in each of these sections as well.To minimize compliance risks, “education and enlightenment,” “prior consultation,” and “on-site auditing” activities are undertaken within the internal control system by relevant committees across KUBOTA and divisions responsible for risk management.

Establishment of corporate governance

On April 1, 2009, we introduced an executive officer system with the appointment of 26 executive officers, in order to be able to quickly adapt to the change in the management environment and further improve our management efficiency. The Board of Directors is responsible for making company-wide strategic decisions and supervising the performances of directors and executive officers, while the Board of Corporate Auditors conducts audits of the performances of the directors.We have further established a “Management Committee” and an “Investment Council” for discussions in regard to specific, important issues, and installed a system that enables more appropriate, prompter determinations by top management, including the representative director, president & CEO (hereinafter “the president”). We also formulated a Research & Development Strategy Committee and a Quality Assurance & Manufacturing Strategy Committee, both chaired by the president, on April 1, 2009 to strengthen our R&D, quality control and manufacturing capabilities—the basis of manufacturing. In addition, various committees composed of specialists from each department propose work plans in their field of specialty and develop education and awareness-raising activities for the entire KUBOTA Group, as well as supporting Business Sections and presenting reports and proposals to the Board of Directors.

The Fundamental Principles of KUBOTA’s CSR Management

Corporate governance structure (as of March 31, 2010)

Management CommitteeCompensation CouncilResearch & Development Strategy CommitteeQuality Assurance & Manufacturing Strategy Committee

Election/dismissal

Cooperation

Reporting

Cooperation

Audit

Audit

Reporting

Reporting

Reporting & proposals

Election/dismissal/supervision

Election/dismissal

Guidance & assistanceInternal audit

Election/dismissal

General Shareholders Meeting

Legal Dept. (Fair trade)Environmental Protection Dept. (Environmental conservation)Health & Safety Planning & Promotion Dept. (Health and safety)Quality Assurance & Manufacturing Promotion Dept. (Quality control)Pesonnel Dept.(labor management)Corporate Planning & Control Dept. (Information security)Research & Development Planning & Promotion Dept. (Intellectual property)

Audit

Reporting

Company-wide Risk Management CommitteeFinancial Information Disclosure CommitteeAnti-Monopoly Act Compliance CommitteeCommittee for the Management of Chemical Substances in Products Quality Control CommitteeCentral Invention & Design Examination CommitteeHuman Rights Advancement Planning & Coordination CommitteeImporting & Exporting Management CommitteeDonations Auditing CommitteePersonal Information Protection CommitteeEarthquake and Other Disaster Task Force

Investment Council

Farm & Industrial Machinery Consolidated Division

Water & Environment Systems Consolidated DivisionSocial Infrastructure Consolidated Division

Representative Director, President & CEO

Executive Officers: 26(Executive Officers’ Meeting)

Head officeRegional offices & branch offices

Sales officesFactories & plants/Business centers

Overseas offices

Domestic & overseas subsidiaries

Audits of internal control over financial reporting

Compliance Auditing Dept.

Audit of basic functions

Corporate Auditors: 5(including 3 outside auditors)

Directors: 8(including 2 outside directors)

The Board of Directors is composed of eight directors (including two outside directors). In addition to the regular Board of Directors’ meeting that is held once a month, it is convened at any time necessary in order to discuss and make determinations on important management-related issues such as business plans, financial plans, investment, and business restructuring. The directors’ term of office is one year, in order to aim at the clarification of their business responsibilities each and every fiscal year, and they may be reelected at the annual General Shareholders’ Meeting.The Board of Corporate Auditors is composed of five auditors (including 3 outside auditors) and convenes a meeting both monthly and from time to time as necessary to discuss and determine auditing policies and other relevant issues.The Executive Officers’ Meeting is composed of the president and 26 executive officers. Meetings are convened monthly and from time to time when necessity arises. During the meeting, President & Representative Director gives directions and information to the Executive Officers about policies and resolutions of the Board of Directors. The progress of execution of their duties is reported to President & Representative Director by the Executive Officers.

System of management

Board of Corporate Auditors Board of Directors

Audits related to compliance

CSR Planning Dept.

Establishment and enhancement of the internal control system

KUBOTA’s internal control system is a mechanism for clearly providing the rules that should be obeyed during the performance of business and for checking whether or not business has been managed according to those rules. This system is composed of “business management,” which oversees business activities based on the rules, and “risk management,” which controls serious management risks.KUBOTA’s internal control system is classified into the following three categories in terms of major management risks that can threaten us.(1) Internal control over financial reporting(2) Internal control related to basic corporate functions such as fair

trade, environmental conservation, and health and safety, etc.(3) Internal control related to compliance with equipment-related

statutes and import and export management, etc.

The department in charge takes necessary measures to avoid these risks, audits the divisions, and reports the results of the audit and recommends measures to be taken in the next fiscal year to the president and the Board of Directors. In so doing, the section ensures that the PDCA cycle is implemented properly.We launched an internal control system in April 2007. While the system was implemented only in KUBOTA Corporation in FY2008, it was introduced to domestic affiliates in FY2009. From FY2010, we will further expand the coverage of the system to include our overseas subsidiaries. Internal control over financial reporting has been in place both at KUBOTA Corporation and at domestic and overseas subsidiaries since FY2008.

The Fundamental Principles of KUBOTA’s CSR Management

Risks and departments in charge for the internal control system

Internal control system

List of internal rules and regulations

○General business○Business information

management○Equipment management○Inventions and design○Health and safety○Medium-term management plan○Legal affairs○Handling Construction Business Law

permits and nomination requests○Group company principles and

codes of conduct

○CSR information○Administration○Public announcement○Inspection○General production

management○General research and

development○Quality assurance○Financial○Human resources and

labor

○Customer○Internal communications system

operation○Management meetings and

investment council operation○Affiliates management○Real estate management○Corporate advertising○General materials and

procurement○Intellectual property○Environmental conservation

○Management○Healthcare○Human rights

advancement○Audit○Stocks and stockholder

management○Information system○Secretary

○Regulations of the Board of Directors for KUBOTA Corporation, Regulations on KUBOTA Corporation Executive Officers’ Meeting, Regulations on compensation council, etc

○Rules on stock handling○Rules on giving approval○Rules on affiliates management (domestic/overseas)

○Rulebook on labor contracts, work rules, and miscellaneous regulations

○Rules on document storage○Rules on division of business duties

○In-house and general rules

○Rules on committee management

○Management rules concerning reliability in financial reporting

○Rules on observing the Anti-monopoly Act/Subcontracting Law

○Rules on quality assurance

○Rules on preventing violations regarding intellectual property

○Rules on environmental conservation○Rules on human resource management

○Rules on earthquake and other disaster response management

○Rules on safe driving management○Rules on the protection of personal information○Rules on compliance with logistics-related laws

○Rules on health and safety management

○Rules on information security

○Rules on observing the Construction Business Law

○Rules on preventing illegal payments

○Rules on security trade management

○Rules on observing equipment-related statutes

○Rules on human rights advancement○Rules on confidential information

management○Rules on import and export management

Business management

Articles of Incorporation

Management Principles

Code of Conduct

Basic regulations

Business rules

Risk management

Risk management rules

Business management of divisions

Business rules by division

Rules for the Board of Corporate Auditors

Reliability of financial reporting

Basic functions

Compliance

Reliability of financial reporting

Fair trade

Environmental conservation

Health and safety

Quality control

Labor management

Information security

Intellectual property

Compliance with equipment-related laws

Earthquake and disaster control

Compliance with the Construction Business Act

Human rights promotion

Safe operation control

Prevention of illegal payments

Confidential information control

Personal information protection

Security trade control

Export/import control

Compliance with logistics-related lawsPresident and Board of Directors

Company-wide Risk Management Committee

Audit plans, results, countermeasures and management policy

Decision Report

Proposal Planning

Daily business management based on

business rulesManagement

Risk to reliability of financial reporting

Risk to basic corporate functions

Risk to compliance

Business management

リスク管理

Business rulesBasic issues related to business management

Implementation of risk management based on

risk management rulesManagement

Risk management

Important managerial risks

are identified

Awareness-raising and educational activities related to risk managementAudits -> identification ->

improvement -> reimplement audits

Risk management rulesIssues that department in charge should respond to in relation to

important managerial risks

Risk description Department in charge

Internal control concerning reliability of financial reporting

Internal control concerning basic corporate functions

Internal control concerning compliance

System Used to Implement CSR Management

Finance & Accounting Dept., Compliance Auditing Dept.

Legal Dept.

Environmental Protection Dept.

Health & Safety Planning & Promotion Dept.

Quality Assurance & Manufacturing Promotion Dept.

Personnel Dept.

Corporate Planning & Control Dept.

Research & Development Planning & Promotion Dept.


General Affairs Dept.


Human Rights Advancement Dept.


CSR Planning Dept.

CSR Planning Dept.

Legal Dept.




Product Safety and Superior Quality

Status of ISO9001 Certification (As of March 31, 2010)

In 1993, the Hirakata Plant became the first business site of the KUBOTA Group to obtain ISO9001 international quality assurance certification, which was quickly followed by other sites and affiliates within the Group. By promoting the quality management program based on ISO9001, KUBOTA is committed to earning customer trust and delivering satisfying, high-quality products.

Consolidated division, division, or plant or office

Main product(s) Date of certification Certifying body

Roll

New material

Steel pipe

Vending machinery

Electronic equipped machinery

Valves

Industrial materials

Water and sewage engineering

Membrane systems

Johkasou

Engines

Tractors

Transplanters and

harvesting equipment

Construction machinery

September 1994

May 1998

October 1997

October 1997

October 1997

April 2003

October 1997

March 1996

August 2005

July 1998

September 2008

August 1994

June 1994

June 1994

June 1994

February 1997

April 1996

Valves and gates

Casting products

Pumps, pump station, and sewage & water purification plants

Sewage & sludge treatment, water purification and waste water treatment

Osmosis membrane and methane fermentation units

Small-scale plastic Johkasou

Incineration and melting plants

Mill roll

Inorganic, synthetic material (TXAXTM)

Spiral welded steel pipe

Vending machines for cigarette, paper packed beverage and canned

Electronic weighing equipment and load cell

Engines, tractors, farm equipment, and construction machinery

Engines

Engines and tractors

Transplanters and harvesting equipment


Place of business(consolidated division, division, or plant or office)

Main product(s) Date of certification Certifying bodyCompany name

Wat

er &

env

iron

men

t sy

stem

s

Pip

e sy

stem

Wate

r eng

ineer

ing

& so

lution

Mat

eria

ls

Soc

ial i

nfra

stru

ctur

eF

arm

& in

dust

rial

m

achi

nery

Affiliates in Japan

Design, installation, and maintenance of facilities for service water, sewerage, landfill disposal, night soil, waste, and ancillary services

●JQAJapan Quality Assurance Organization

●JSAJapanese Standards Association

●JICQAJIC Quality Assurance Ltd.

●LRQALloyd’s Register Quality Assurance Ltd. (U.K.)

●JUSEUnion of Japanese Scientists and Engineers

●DNVDet Norske Veritas AS (Norway)

Key to the abbreviation of certifying bodies

●JCQAJapan Chemical Quality Assurance Ltd.

●MSAManagement System Assessment Center

●JMAQAJapan Management Association Quality Assurance Registration Center

Ductile iron pipe, fittings, fiberglass reinforced plastic mortar pipes and fittings, accessories and related products for respective pipes, water information software

Ductile iron pipe Hanshin/Keiyo January 1999

Hirakata

Hirakata

Keiyo

Ryugasaki

Kyuhoji

Sakai

Rinkai

Tsukuba

Utsunomiya

Hirakata

Hirakata

Amagasaki

Suction rolls for paper manufacture, cast steel, stainless steel, heat-resistant steel, pipes, fittings, rolls, spools, columns, piles, and static castings

March 1993

LRQA

JICQA

LRQA

LRQA

LRQA

JUSE

LRQA

JICQA

JICQA

JICQA

DNV

DNV

LRQA

LRQA

LRQA

LRQA

LRQA

JCQA

LRQA

- Consigned development of software products and software packages, design, development, and manufacturing of network structures and ancillary services

- Operation service of information systems and operation and maintenance of networks- Sale of purchased products

- Design, construction and construction management of various pipeline, etc.- Investigation and diagnosis of pipelines- Training on installation of fittings and pipe laying- Rental of pipe-laying tools

- Design, development, and manufacture of rigid PVC pipe and secondary processed products

- Design, development, and manufacture of polyethylene and other plastic pipes- Design, development, and manufacture of polystyrene/polyethylene and other

plastic sheet plates

- Design, development, and manufacture of hydraulic valves and cylinders for agricultural use and construction machinery

- Manufacture of hydraulic transmissions and pumps for off-road vehicles and agricultural use, and hydraulic motors for construction machinery

KUBOTA Systems, Inc.

KUBOTA Pipe Tech Co.

Nihon Plastic Industry Co., Ltd.

KUBOTA Environmental Service Co., Ltd.

KUBOTA Precision Machinery Co., Ltd.

May 1997 JMAQA

March 2002 JCQA

February 2000

April 2007

MSA

LRQA

December 1998 JSA

Heiwa Kanzai Co., Ltd.

Water Technology Institute Ltd.

KUBOTA-C.I. Co., Ltd.

KUBOTA Air Conditioner Co., Ltd. Design, development, manufacturing, and ancillary services for large-scale air-conditioning equipment

Design, development, and supply of cleaning services for buildings and facilities

Development, sales, and consignment of computer software

Design, development, manufacture, and installation of composite pipes, fittings, accessories, and plastic products and ancillary services

February 2000

July 2002

April 2004

April 1998

JQA

JICQA

JCQA

JUSE

Hanshin Office

Hanshin Office

Social Report

Okajima

Shiga

Steel castings

Waste engineering project

Pumps

Fire drills

To prepare for emergencies, we regularly conduct fire and evacuation drills. Recently, we introduced a program to instruct the use of AEDs (Automatic External Defibrillators), which are installed in an increasing number of facilities. (The photos show a drill conducted at KUBOTA’s head office on November 26, 2009.)

Actions taken to prevent the infringement of the intellectual property rights of other companies

At the KUBOTA Group, intellectual property management divisions and R&D divisions work in close cooperation to ensure that all KUBOTA employees respect the intellectual property rights of other companies and never infringe upon such rights. These divisions also conduct in-depth investigations of domestic/overseas markets and multinational companies.

Certificate of Commendation given by the Osaka Prefecture Organized Crime Prevention Center

KUBOTA was given a certificate of commendation by the Osaka Prefecture Organized Crime Prevention Center during the 18th Prefectural Convention for Organized Crime Prevention, held on November 10, 2009 by the Osaka Prefectural Government, in recognition for its years of cooperation toward the operation and promotion of activities aimed to curtail organized crime.

Enhancement of information security measures

At KUBOTA, information security measures are in place on a group-wide basis to prevent the leakage of internal information and to avoid damages resulting from system shutdown, which can both be caused by disaster or infection by a computer virus.During FY2010, we conducted an overall inspection (audit) of ongoing PC security measures across the KUBOTA Group, including our suppliers in Japan. Additionally, we revised our security policy, taking into consideration overseas situations, and applied the same policy to all our business bases both Japanese and foreign. Starting from FY2011, we are working to enhance security measures under a new policy at our overseas business bases, especially those in newly emerging countries, in order to achieve the same level of information security both at home and abroad.

Personal information protection

KUBOTA has set up the Personal Information Protection Committee, which consists of officers in charge and managers of relevant divisions, for the proper management of customer and stakeholder personal information.

Evacuation drill using a fire engine

Booklet on rules for handling personal information “Personal Information Protection by KOBUTA”

Safe driving training

At KUBOTA, safe driving training is conducted at least once a year for employees who drive company cars, in order to increase their awareness of safe driving and to prevent traffic accidents/violations. (The photos show a training session held at KUBOTA’s head office on September 7,

2009.)

For details about our personal information protection policy, please visit our website at: http://www.kubota.co.jp/privacy/index.html

WEB

Being taught by a fireman how to use an AED

Social Report

The Ensuring of Full Legal Compliance

KUBOTA’s basic policy on human resources: “Fairness & Transparency,” “Challenge & Creativity”

“It is always people (employees) that are irreplaceable assets and that form the foundation of a corporate evolution which pursues sustainable economic and social development in line with the needs of the times.” Based on this idea, KUBOTA has enacted and operates a fair and transparent personnel system, and then works to construct an

energetic corporate climate that welcomes challenge and values creativity. Our Employee Code of Conduct also clearly prohibits discrimination on the basis of nationality, age, sex and other factors and human rights infringements in employee recruitment.

Establishing a personnel system centering on “merit-based performance evaluation”

KUBOTA’s personnel system aims to put the right man in the right place by respecting the quality and ability of individual employees and by rewarding them justly based on the fair evaluation of their performance.

Reducing work hours (through the continued involvement of labor and management)

From the standpoint of a work-life balance so that employees can balance their work and home lives and have an overall fulfilling lifestyle and for preventing health problems, KUBOTA has introduced flexible working systems, such as a flex-time system and a discretionary

working system. We are also promoting the establishment of healthcare leave and the use of paid annual leave, and have labor-management committees regularly checking on the status of those programs.

Enhancing the skills required for manufacturing

We are working to enhance the skills required for manufacturing quality products and to transfer such skills to our employees. Specifically, at KUBOTA, new employees hired as technical personnel participate in a training course for approximately one year to master basic manufacturing skills and the knowledge necessary for their work, while developing a well-rounded personality at the same time. During 2007 and 2008, new training centers were opened, adding to our training capabilities.

●Multi-track courses (manager, specialist, and expert courses) are available to upper-level employees. ●The job grade system is applied to employees

of all levels, without regard to qualifications.●Non-senior-level employees are classified into

one of the four job categories (creative, business, associate, and technical) and perform their assigned duties.

Job grade system

●Capacity development programs (fundamental, basic, and applied programs) are established and can be chosen by each employee according to their needs.●Training programs (including K’ei Juku and

“Business Producer” programs) designed for the early selection and nurturing of next-generation management personnel and in-house entrepreneurs are implemented.●An overseas language study program is

available for new employees (hired as creative personnel).●A training course for mastering basic manufacturing

skills and developing a well-rounded personality is available for new employees (hired as technical personnel).

Employee education and training system

●A monthly salary system is employed.●A performance-linked bonus system

is in place, in which bonuses are calculated based on the company’s ordinary income.

Payroll system●The “Aim for the target” system is

being implemented in which an individual performance level is set for each employee in advance and the degree of achievement of such pre-set level is measured.●Interviews are held between each

employee and his or her supervisor when setting an individual performance level and evaluating the degree of achievement.

Evaluation system

Monthly salary levels are set by course and job grade.

The results of evaluations are reflected in salary and bonus rankings.

The statistical population of each course is pre-set, and the personnel evaluation of the achievement of individually set targets is also used to determine the job grade of each employee.

Employees are required to complete designated educational/training courses and to achieve a certain level of understanding/competence for promotion to a higher position.

Personnel policy and personnel system

Sakai Training Center Employees during training Hirakata Training Center

Social Report

Creating a Vibrant Work Environment

Promoting action plans pursuant to the Next Generation Nurturing Support Measures Promotion Law

At KUBOTA, we are endeavoring to enhance our work environment and conditions to help employees with children attain a balance between work and the rest of their lives, and to enjoy being at work, as part of our effort to achieve the goals of the Next Generation Nurturing Support Measures Promotion Law to create a social environment conducive to giving birth to and bringing up children, the leaders of the next generation.We will continue our efforts into FY2010 by implementing a new action plan formulated under the Law.Our 2006-2008 action plan was awarded the Kurumin Mark, a certificate granted in recognition of corporate efforts to support employees with children.

The general business owner action plan for next-generation nurturing support starting from FY2010 (outline)

Period Two years from April 1, 2009 to March 31, 2011

(1) The period for childcare leave is set longer than legally required; (2) The period of shorter working hours for childcare is set longer than legally required; and(3) Measures to encourage employees to take annual paid holidays are implemented.

Measures taken

Support for employees with children

Three (3) continuous or individual days within one month, including the day of birth

In principle, up to the day immediately preceding the second birthday of the child

Paternity leave

Employees are entitled to take half-day paid leave up to 12 times per year.Half-day paid leave

Working hours can be shortened in 30-minute increments to a maximum of two hours, by either starting work later or ending work earlier or both, until March 31 of the year when the child completes the third grade of elementary school. This program can be used as many times as necessary.

Employees raising a child in the third grade of elementary school or younger may take up to six days of accrued paid leave per year in advance for the purpose of nursing the child, until March 31 of the year when the child completes the third grade. Employees raising two or more such children may take up to 12 days of accrued paid leave per year in advance.

Shorter workinghours for childcare

Accrued annual paidleave system forchildcare

Childcare leave

For more detailed information on “action plans based on the Next Generation Nurturing Support Measures Promotion Law,” please visit our website at: http://www.kubota.co.jp/ikusei/index.html

WEB

Promoting action plans pursuant to the Next Generation Nurturing Support Measures Promotion Law

Social Report


At KUBOTA, a fair personnel policy that treats male and female employees equally is in place, in compliance with the Labor Standards Law and the Equal Employment Opportunity Law. To facilitate such efforts, the Diversity Promotion Office was set up in FY2010. Special emphasis is placed on creating a work environment that allows female employees to demonstrate their potential to the fullest, in anticipation of the future decline in the workforce resulting from the falling birthrate and aging population.

Training personnel to have global capability

In line with global business developments, KUBOTA has launched initiatives to train personnel to be able to act globally. These initiatives include trainee programs of various levels to give employees opportunities to work abroad; cross-cultural understanding seminars; and a one-month English study program in the USA for new employees (hired as creative personnel).

Encouraging the employment of persons with disabilities

We are promoting employment of persons with disabilities through our special subsidiary,* KUBOTA Works Co., Ltd. (established in 2003), based on our belief that persons with disabilities are entitled to work as members of our society and companies are obligated to create and offer them places to work. We will continue step-by-step efforts to provide a work environment friendly to employees with disabilities to encourage more persons with disabilities to join the KUBOTA Group.

Percentage of female employees (as of April 1, 2009)

Rate of employees with disabilities

This system aims to encourage the employment of persons with disabilities by offering preferential treatment to companies in calculating the rate of employees with disabilities and granting subsidies to those companies that have established subsidiaries that pay special consideration to the employment of persons with disabilities. (Governing law: Law for Employment, Promotion, etc. of the Disabled)

For more detailed information on KUBOTA Works Co., Ltd., please visit the website at: http://www.kubota-works.com/top.html

WEB

*A special subsidiary system

No. of male employees: 8,818

No. of female employees: 814

2004 2005 2006 2007 2008 2009 (FY)

（%）

0.0

0.5

1.0

1.5

2.0

2.5

1.74 2.02 2.14 2.26 2.02 2.03

2010

2.02

Our special subsidiary, KUBOTA Works conducts social and work adjustment training to help persons with disabilities find jobs. During FY2010, a total of 37 persons received hands-on work experience and social adjustment training.

■ Activities of our special subsidiary, KUBOTA Works

Vocational training (cleaning in a park)

Promoting diversity management

Promoting diversity management

Social Report


Support for the “Voice of Japan-China Friendship: Japanese and Chinese Speech Contest”

Starting in 1989, the “Voice of Japan-China Friendship: Japanese and Chinese Speech Contest” boasts the longest history among all of the Japan-China speech contests. This speech contest aims to deepen friendly ties between the two nations by offering opportunities for Japanese and Chinese participants to make a speech in Chinese and Japanese, respectively. KUBOTA began supporting this speech contest and the “All-China Japanese Speech Grand Championship” in 2010. (The contest was held at Tianjin Foreign Studies University on March 28, 2010.)

Support for hands-on agricultural activities for children in India

KUBOTA India offered children attending a Japanese school in Chennai a hands-on opportunity to experience agricultural activities. These children learned about the difference between India and Japan in growing rice and enjoyed a ride on a rice transplanter.(Children enjoy an agricultural experience in Walajabad, India on October 10, 2009.)

Support for the “Osaka Friendship Campaign”

Since 2007, KUBOTA has been offering cooperation for the “Osaka Friendship Campaign,” an annual event held during Disability Week from December 3 to 9 to support the self-help efforts of those with disabilities. (The event is hosted by the Osaka Prefectural Government and the Osaka Municipal Government, etc.)

Support for “Rice Paddies and Water in Rural Hometowns: Child Paintings Exhibition 2009”

KUBOTA cooperated in the organization of the “Rice Paddies and Water in Rural Hometowns: Child Paintings Exhibition 2009,” held in Shiodome, Tokyo. (The exhibition was held by the National Federation of Land Improvement Associations from November 6 to 9, 2009.)

Group blood donation by KUBOTA employees

KUBOTA regularly organizes an event where groups of company employees can go to donate blood.

Social Report

Contributing to International Society and Enhancing Social and Cultural Activities

Main contents of the website

The website offers information on KUBOTA’s history and business as well as its activities in the areas of food, water, and the environment, accessible from the top page of the website.

(For reference) Ratio of foreign shareholders

This page provides an overview of the 120-year history behind KUBOTA, along with some thoughts from the founder.

http://www.kubota.co.jp/museum/

■ Kubota VIRTUAL MUSEUM

KUBOTA’s corporate attitude is communicated here by outlining various business activities.

http://giweb.kubota.co.jp/

■ GLOBAL INDEX　　

Here, users can read a series of reports titled, “Traveling into the World of Narratives,” written by a Japanese explorer, Mr. Daisuke Takahashi.

■ KUBOTA Global Journey 　　　　　　

This online community gives users the opportunity to share experience and various kinds of information related to rice fields.

http://www.tanbo-kubota.co.jp/

■ KUBOTA no TANBO (KUBOTA’s rice fields) 　　　　　

This page provides academic information on water, soil, geology, and environmental issues, which are closely associated with KUBOTA’s business activities.

http://www.kubota.co.jp/urban/

■ Urban KUBOTA

http://www.kubota.co.jp/kgj/journey.html

（%）

2005 2006 2007 2008 2009 2010 (FY)0

10

20

30

40

18.3 24.9 28.9 28.0 20.7 30.1

Social Report

IR Activities and the Provision of Corporate Information

Trends in Major Environmental Indicators


Total amount of energy input

Total1.24 PJ

(32,000 kL)Electricity68%

Natural gas22%

Light oil 4%

Other 6%(LPG, heavy oil, etc.)

CO2 emissions

Water resource input Amount of waste discharge etc.

Total64.4

kiloton-CO2

Electricity66%

Natural gas21%

Light oil 5%

Other 8%(LPG, heavy oil, etc.)

Total0.403

million m3

Service water43%

Groundwater 8％

Water for industrial use49%

Total amount

generated17,659

tons

Amount of valuable materials 44%(metal etc.)

Amount for the final disposal (landfill)16%

Amount recycled for use17%

Reduction23%

INPUT

OUTPUT

Total energy input *1

Water resource input *1

Amount of PRTR-designated substances handled *3

CO2 emissions *1

SOx emissions *4

NOx emissions *4

Soot and dust emissions *4

Amount of PRTR-designated substances released *3

Wastewater discharge *7

COD discharge *5

Nitrogen discharge *5

Phosphorous discharge *6


Wastewater discharge *7


9.645.68

7,740

PJmillion m3

tons

9.585.67

7,762

9.785.34

8,533

9.625.37

8,751

51324.275.515.37914.4713.98.8

0.2435

0.718.5922.8

kiloton-CO2

tonstonstonstons

million m3

tonstonstonskg

million m3

kgkilotonskilotons

51549.7

222.310.76604.0911.89.5

0.2741

0.9014942.0

55229.3

133.97.16314.5215.811.00.321510.85

56986.0

5368.6

80.63.75804.5615.514.30.451660.73115937.0

5753.8

69.04.05744.4811.713.90.36

400.90

4894

10.2

9.845.09

6,621

Environmental Indicators UnitsFY2007FY2005 FY2006 FY2008

Year

FY2009 FY2010

Release into the atmosphere

Release into water systems

Waste

Publ

ic w

ater

are

aSe

wage

Amount of waste discharge *2

Landfill waste *2

*5: Total emissions from business sites placed under total emission control in Japan. Includes data on overseas business sites during FY2010.

*6: Total emissions from business sites placed under total emission control in Japan.*7: Includes data on overseas business sites during and after FY2009.

*1: Includes data on overseas business sites.*2: Includes data on overseas business sites during and after FY2007.*3: Data on business sites in Japan only.*4: Total emissions from soot- and smoke-emitting facilities in Japan stipulated

by the Air Pollution Control Law.

Trends in water resource input *1

m3 (in millions)

0

2

4

6

8

5.68 5.67 5.34 5.37 5.09 4.66

Trends in SOx emissions *4

(tons)

0

20

40

60

Trends in NOx emissions *4

(tons)

0

100

200

300

Trends in soot and dust emissions *4

(tons)

0

5

10

15

20

Trends in COD discharge *5

(tons)

0

5

10

15

20

Trends in nitrogen discharge *5

(tons)

0

5

10

15

20

Trends in phosphorous discharge *5

(tons)

0.0

0.2

0.4

0.6

0.8

Ratio of the affiliates covered by corporate environmental management（%）

20

0

40

60

80

100

2006 2007 2008 2009 2010 (FY)

41 62 74 99 100

Trends in total energy input *1

（PJ）

1991 20062005 2007 2008 2009 2010 (FY)0

2

4

6

8

10

12

20062005 2007 2008 2009 2010 (FY)

20062005 2007 2008 2009 2010 (FY)

20062005 2007 2008 2009 2010 20062005 2007 2008 2009 2010(FY)

24.2 49.7 29.3 8.6 3.8 3.8

20062005 2007 2008 2009 2010 (FY)

20062005 2007 2008 2009 2010 (FY)

8.69 9.64 9.58 9.78 9.62 9.84 8.49

1991 20062005 2007 2008 2009 2010 (FY)

(FY)

20062005 2007 2008 2009 2010 (FY)

Trends in CO2 emissions *1

(kiloton-CO2)

0

100

200

300

400

500

600

KUBOTA production

plants

4783.8

49.53.8

4753.8615.410.20.25

330.99

2074

3.9

8.494.66

5,507

Environmental data on overseas business sites for FY2010 (excerpt) Increasing the coverage of corporate environmental management

All our domestic and overseas consolidated subsidiaries have been subject to environmental management since FY2010.

544 513 515 552 536 575 478

75.5 222.3 133.9 80.6 69 49.515.3 10.7 7.1 3.7 4.0 3.8

13.9 11.8 15.8 15.5 11.7 15.4 8.8 9.5 11.0 14.3 13.9 10.20.24 0.27 0.32 0.45 0.36 0.25

（　　）

Data on KUBOTA Production Plants in Japan


INPUT

Energy

Electricity

Coal coke

Town gas

Kerosene

Light oil

Heavy oil, LPG, etc.

Total

MWh

tons

1,000 m3

kℓkℓ

39,220

11,226

2,965

4,594

38

Volume of use Heat conversion GJ

383,793

330,055

127,692

168,585

1,447

924

1,012,496

Water usage 1,000 m3 826 175

Item Unit Hanshin Plant (Mukogawa) Hanshin Plant (Amagasaki) Keiyo Plant (Funabashi) Keiyo Plant (Ichikawa) Hirakata Plant Okajima Business Center Sakai Plant Sakai Rinkai Plant Utsunomiya Plant Tsukuba Plant Kyuhoji Business Center Ryugasaki Plant Shiga Plant

K-value control 0.22

Total emission

control

Concentration control

Total emission

controlTotal

emission control


Total emission

control


24.2

0.1

0.004

3.23

0.0017

-

-

30,050

0

4,235

11

13


299,619

0

182,387

414

473

2,502

485,395

-

-

1430

59,170

22,689

753

12,295

202


571,464

667,059

32,447

451,235

7,600

28,916

1,758,720

-

-

11

4,080

0

0

6

13


40,662

0

0

225

506

2,124

43,517

-

-

185

45,000

0

3,731

73

271


440,804

0

160,694

2,661

10,226

1,194

615,578

-

-

93

34,540

4,254

1,074

0

26


337,046

125,080

46,273

0

981

97

509,476

-

-

104

25,030

0

1,594

0

744


244,786

0

68,662

0

28,051

18,719

360,219

-

-

46

11,390

0

573

0

1,673


111,767

0

24,663

3

63,078

5,282

204,793

-

-

241

7,630

0

959

389

156


75,121

0

41,283

14,270

5,881

1,661

138,217

-

-

201

30,680

0

2,241

968

754


301,612

0

96,535

35,531

28,407

0

462,085

-

-

15

2,400

0

117

4

5


23,568

0

5,037

147

189

3,059

32,000

-

-

14

3,320

0

201

9

2


33,121

0

8,636

320

70

300

42,448

-

-

126

2,950

0

636

0

0


29,399

0

27,393

0

0

0

56,792

-

-

Public water areas

Sewerage

pH

BOD

COD

Nitrogen

Phosphorus

Hexavalent chromium

Lead

Regulation value of COD volume

Regulation value of nitrogen volume

Regulation value of phosphorus volume

pH

BOD

COD

SS

－

mg/ℓmg/ℓmg/ℓmg/ℓmg/ℓmg/ℓkg/day

kg/day

kg/day

－

mg/ℓmg/ℓmg/ℓ

5.8 – 8.6

30

20

120

16

0.35

0.1

104.7

40.5

1.4

5.7 – 8.7

300

－

300

Control value Measurement value

7.0

3

4

4.6

0.2

ND

ND

5.8

12.8

0.3

7.3

5

－

ND

－

－

－

－

－

－

－

－

－

－

5.7 – 8.7

300

－

300


－

－

－

－

－

－

－

－

－

－

7.7

4

－

15

5 – 9

－

20

20

2

0.05

0.1

110.5

114.7

11.65

－

－

－

－


6.7

－

1.5

2.9

0.05

ND

ND

17.5

11.0

0.14

－

－

－

－

5 – 9

60

60

70

7

0.5

0.1

4.0

2.865

0.391

－

－

－

－


7.2

2.5

10.1

8.9

1.0

ND

ND

0.31

0.32

0.035

－

－

－

－

5.8 – 8.6

25

25

120

16

0.05

0.01

37.95

38.3

4.41

－

－

－

－


7.0

8.7

5.9

8.7

0.71

ND

ND

2.04

1.93

0.18

－

－

－

－

－

－

－

－

－

－

－

－

－

－

5.7 – 8.7

600

－

600


－

－

－

－

－

－

－

－

－

－

6.5

13

－

6

－

－

－

－

－

－

－

－

－

－

5.7 – 8.7

300

－

300


－

－

－

－

－

－

－

－

－

－

6.4

140

－

6

5.8 – 8.6

30

30

120

16

0.5

0.1

1.88

7.54

1.0

－

－

－

－


6.6

1.9

11.1

11.6

1.9

ND

ND

0.69

0.72

0.11

－

－

－

－

5.8 – 8.6

25

－

－

－

0.1

0.1

－

－

－

－

－

－

－


7.5

10.1

－

－

－

ND

ND

－

－

－

－

－

－

－

5.8 – 8.6

20

20

60

8

0.5

0.1

－

－

－

－

－

－

－


7.5

2.6

5.1

5.0

0.4

ND

ND

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

5.7 – 8.7

300

－

300


－

－

－

－

－

－

－

－

－

－

7.6

2

－

11

－

－

－

－

－

－

－

－

－

－

5 – 9

600

600

600


－

－

－

－

－

－

－

－

－

－

7.3

64

85

45

6.0 – 8.5

20

20

8

0.8

0.05

0.1

－

－

－

－

－

－

－


7.8

ND

4

ND

ND

ND

ND

－

－

－

－

－

－

－

CO2 emission t-CO2 67,459 19,973 131,085 1,881 24,951 28,732 15,525 9,947 6,732 21,996 1,323 1,866 2,413

Wastetons 12,760 3,714 25,649 143 3,732 11,546 917 713 360 1,590 117 136 315

%

Volume of discharge

landfill ratio

Energy-related

0.3 0.0 0.7 0.4 1.7 0.8 0.7 1.1 0.9 0.2 3.2 0.5 0.1

Exhaust gas

SOx

Unit

NOx

Soot and dust

Melting furnacesMain smoke and soot generating facilities Heating furnaces

*Use of town gas with zero sulfur content


No smoke and soot generating facilities



Melting furnaces - Heating furnaces Melting furnaces Drying furnaces - Drying furnaces Boilers - Boilers

OUTPUT

Total emission control and K-value control:

m3N/hTotal emission control: m3N/h,Concentration control: ppm

g/m3N

2.24

0.1

0.016

0.0011

19.3

41.3

0.1

0.35

2.9

0.0056

7.661

0.1

0.02

0.008

2.86

2.4

0.05

0.053

0.037

0.006

1.615

1.661

0.1

0.231

0.393

0.021




150

0.1

35

0.001

K-value control 17.5

Concentrationcontrol


230

0.25

0.04

110

0.01

230

0.2

57

Under 0.01

Control content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement valueControl content Control value Measurement value

Concentrationcontrol 180

--

35

-

Boilers

Dra

inag

e

Ethylbenzene

Xylene

Toluene

Lead and its compounds

Nickel

Phenol

Ethylbenzene

Xylene

Toluene

Nickel

Chromium and chromium (III) compounds

Toluene

Nickel

Boron and its compounds

Manganese and its compounds

Molybdenum and its compounds

Bisphenol A type epoxy resin (liquid)

Ethylbenzene

Xylene

Toluene

61

90

1,547

9,557

231

0.0

8.0

11

199

146

3,588

0.0

0.7

844

6,662

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

3.5

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

6,833

12,600

17,153

0.0

0.0

0.0

8,983

26,686

27,693

0.0

0.0

1,566

0.0

0.0

0.0

0.0

0.0

1,482

2,548

4,821

40

63

227

230

231

266

40

63

227

231

68

227

231

304

311

346

30

40

63

227

Name of plant

Release volume Transfer volume

Atmosphere Soil SewerageTransfers to off-site

On-sitelandfills

Publicwaterareas

Name of substance

Number specified

in Cabinet

Order

Name of plant



On-sitelandfills

Publicwaterareas

Name of substance

Number specified

in Cabinet

Order

Name of plant



On-sitelandfills

Publicwaterareas

Name of substance

Number specified

in Cabinet

Order

Name of plant



On-sitelandfills

Publicwaterareas

Name of substance

Number specified

in Cabinet

Order

Hanshin Plant(Mukogawa)

Hanshin Plant(Marushima)

Hanshin Plant(Nagasu)

Hanshin Plant(Amagasaki)

Bis (2-ethylhexyl) adipate

Ethylbenzene

Cadmium and its compounds

Xylene

Toluene


Nickel

Phenol


Ethylbenzene

Xylene

Toluene

Xylene



Bisphenol A type epoxy resin (liquid)

Ethylbenzene

Xylene


Cobalt and its compounds

134

615

8,310

891

1,636

25,037

26

0.0

30,611

204

1,020

311

0.0

47

29

644

11,214

20,811

13,661

0.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

30,900

0.0

46,686

98,747

0.0

0.0

0.0

0.0

9,983

49,972

15,681

1,858

2.9

0.0

0.0

555

1,220

0.0

0.0

9

40

60

63

227

230

231

266

311

40

63

227

63

311

311

30

40

63

68

100

Keiyo Plant(Funabashi)

Keiyo Plant(Distribution Center)

Keiyo Plant(Gyotoku Processing Center)

Hirakata Plant

Keiyo Plant(Ichikawa)

Toluene

Nickel


Molybdenum and its compounds

Ethylbenzene

Xylene


1, 3, 5-trimethylbenzene

Phenol


Water-soluble zinc compounds

Ethylbenzene

Ethylene glycol

Xylene

Toluene

Ethylene glycol

Xylene

Toluene

Benzene

19,181

9.1

3,373

0.0

67

524

560

143

0.0

1,129

1,266

308

335

1,030

396

25

190

173

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

16

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

1,166

0.0

0.0

0.0

200

1,573

0.0

428

0.0

0.0

0.0

1,929

0.0

3,483

1,661

22

183

235

1.7

227

231

311

346

40

63

68

224

266

311

1

40

43

63

227

40

63

227

299

Hirakata Plant

Okajima Business

Center

Sakai Rinkai Plant

Sakai Plant


Ethylbenzene

Ethylene glycol

Xylene

Toluene


Ethylbenzene

Ethylene glycol

Xylene

Chromium (VI) compounds

Dichloropentafluoropropane

Toluene


Hydrogen fluoride and its water-soluble salts

Ethylbenzene

Xylene

Toluene

Bis (2-ethylhexyl) adipate

Styrene

Di-n-butyl phthalate

501

2,154

0.0

5,462

24

752

217

0.0

1,966

198

2,925

2,293

1,300

1,297

72

87

422

164

0.0

48

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

9.5

0.0

0.0

0.0

0.0

24

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

4,362

0.0

10,516

40

0.0

10,192

0.0

26,277

0.0

0.0

9,276

0.0

0.0

1,471

1,931

829

0.0

24,960

0.0

1

40

43

63

227

1

40

43

63

69

144

227

230

283

40

63

227

9

177

270

Utsunomiya Plant

Tsukuba Plant

Shiga Plant

Ryugasaki Plant

Data on KUBOTA Production Plants in Japan

Results of PRTR Reporting Unit: kg/year

*Total emission control: Control value by plant and the measurement value of major facilities *K-value control and concentration control: Control and measurement values of major facilities

Total emission

control


TotalemissioncontrolTotal

emissioncontrol


TotalemissioncontrolTotal

emissioncontrol






Data on KUBOTA Group Production Plants in Japan Data on KUBOTA Group Production Plants Overseas

INPUT

11,930

0

7

48

7

116,389

0

301

1,769

272

166

118,897

15 69 251 52 19 108 5

KUBOTA-C.I.(Sakai)

Name of plant

Release volume


On-sitelandfills

Publicwaterareas

-

-

29,050

0

73

0

27

281,529

0

3,141

0

1,036

69

285,775

19,300

0

0

4

1

187,046

0

0

132

49

5,857

193,084

2,110

0

191

0

1

21,044

0

8,223

7

25

1,095

30,395

10,560

0

421

0

3

102,761

0

18,137

0

111

658

121,667

10,750

0

31

0

0

103,461

0

1,362

8

0

953

105,785

6,200

0

0

0

1

59,591

0

0

0

48

136

59,775

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

pH

BOD

COD

Nitrogen

Phosphorus

Hexavalent chromium

Lead

Regulation value of COD volume

Regulation value of nitrogen volume

Regulation value of phosphorus volume

pH

BOD

COD

SS

－

mg/ℓmg/ℓmg/ℓmg/ℓmg/ℓmg/ℓkg/day

kg/day

kg/day

－

mg/ℓmg/ℓmg/ℓ

5.8 – 8.6

25

25

60

8

0.5

0.1

－

－

－

－

－

－

－

Control value

7.0

2.0

3.0

1.5

0.16

ND

ND

－

－

－

－

－

－

－

Measurement value

5.8 – 8.6

60

60

120

16

0.5

0.1

－

－

－

－

－

－

－

Control value

8.0

ND

ND

0.5

0.08

ND

ND

－

－

－

－

－

－

－

Measurement value

5.8 – 8.6

20

－

60

1

0.1

0.1

－

－

－

－

－

－

－

Control value

8.2

0.9

－

0.58

ND

ND

0.04

－

－

－

－

－

－

－

Measurement value

5.8 – 8.6

20

－

－

－

0.1

0.1

－

－

－

－

－

－

－

Control value

7.4

1.3

－

－

－

ND

ND

－

－

－

－

－

－

－

Measurement value

－

－

－

－

－

－

－

－

－

－

No specific facilities

－

－

－

Control value

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Measurement value

5.8 – 8.6

160

160

120

16

0.5

0.1

－

－

－

－

－

－

－

Control value

7.7

1.6

ND

－

－

－

ND

－

－

－

－

－

－

－

Measurement value

－

－

－

－

－

－

－

－

－

－

No specific facilities

－

－

－

Control value

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Measurement value

CO2 emission t-CO2

Wastetons

%

Volume of discharge

landfill ratio

Energy-related

Exhaust gas

SOx

Unit

NOx

Soot and dust

-Main smoke and soot generating facilities


OUTPUT

Total emission control and K-value control:

m3N/hTotal emission control: m3N/h,Concentration control: ppm

g/m3N


Organotin compounds


Organotin compounds



Organotin compounds


230

176

230

176

230

230

176

230

2.8

0.1

1.5

0.0

0.0

2.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

53

16

232

9.2

580

5.0

13

174

Name of substance

Number specified

in Cabinet

Order

KUBOTA-C.I. Co., Ltd.(Sakai Plant)

Nippon Plastic Industry Co., Ltd.

KUBOTA-C.I. Co., Ltd.(Odawara Plant)

KUBOTA-C.I. Co., Ltd.(Tochigi Plant)

Kyusyu KUBOTA Chemical Co., Ltd.

KUBOTA-C.I.(Odawara)

KUBOTA-C.I.(Tochigi)

KUBOTA Air Conditioner

(Tochigi)

KUBOTA Precision Machinery

Nippon Plastic Industry

Main PlantKyusyu KUBOTA

Chemical

1,500

0

0

18

105

14,989

0

0

645

3,973

14,066

33,673

5

17,910

0

0

0

359

178,544

0

0

0

13,552

1,279

193,374

51

13,100

0

0

0

57

130,625

0

0

0

2,141

60,129

192,895

10

9,680

0

0

0

90

96,553

0

0

0

3,397

12,936

112,886

73

6,080

0

0

0

156

60,617

0

0

0

5,881

11,619

78,118

49

1,350

0

0

10

7

13,424

0

0

377

266

8,605

22,671

31

4,930

0

0

0

272

49,164

0

0

0

10,254

20,763

80,181

45

3,980

0

0

0

16

39,721

0

0

0

586

14,452

54,760

42

14,270

0

0

0

0

142,319

0

0

0

0

94,533

236,852

27

5,323 12,376 8,479 1,370 4,701 5,018 2,331 1,640 12,133 11,371 5,840 4,102 1,547 5,660 3,594

87 743 1,070 No data 666 6 481 863

0.0 17.1 6.7 No data 9.9 3.1 25.7 3.4

7,451

2,160

0.0

KubotaBaumaschinen

GmbH

KubotaManufacturing of

America Corporation

KubotaIndustrial Equipment

Corporation

The Siam Kubotalndustry Co., Ltd.

Siam KubotaTractor Co., Ltd. P.T.Kubota lndonesia

Kubota Agricultural Machinery (Suzhou)

Co., Ltd.P.T.Metec Semarang Kubota

Metal Corporation

99 86 171 101 335 8 47

Transfer volume

0.3 0.0 0.3 0.0 0.4 0.7 0.0

-

17.5

950

0.1

Diesel engines

K-valuecontrol 2.3



180

0.3

0.049

130

0.005

Boilers - - -





Non-operated and

removed in

January 2010

Results of PRTR Reporting Unit: kg/year

Pu

blic

wat

er a

reas

Sew

erag

e

Drainage

*Total emission control: Control value by plant and the measurement value of major facilities *K-value control and concentration control: Control and measurement values of major facilities

Data on KUBOTA Group Production Plants in Japan and Overseas


Item Unit

Energy

Electricity

Coal coke

Town gas

Kerosene

Light oil

Heavy oil, LPG, etc.

Total

MWh

tons

1,000 m3

kℓkℓ

Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ Volume of use Heat conversion GJ

Water usage 1,000 m3

Control content Control value Measurement value Control content Control value Measurement value Control content Control value Measurement value Control content Control value Measurement value Control content Control value Measurement value Control content Control value Measurement value Control content Control value Measurement value

K-valuecontrol



Environmental Management Promotion System


Promotional Structure

KUBOTA Environmental Management System

Head Office Divisions, business sites, group companies

Board of Directors

President

Environmental ProtectionDepartment

Consolidated divisions ordivisions

Company-wide Risk Management Committee

Meeting of persons in charge ofenvironmental conservation

Director of EnvironmentalProtection Department

Other unconsolidateddepartments

Group companies

Departments in charge ofenvironmental management

Group companies


Plants, factories andbusiness center


Head office, regional offices,branch offices, sales offices


Upper level managerial divisions

Business sites

Plan

Do

Check

Act

Corporate management policy

Environmental management status monitoring (KEDES)*

Submit performance reports on environmental management

Check results of environmental measurements (air/water quality, etc.)

Submit performance reports on environmental accounting

Report on on-site inspections and claims

Environmental management status assessment

Improvement through instructions and guidance

Offer instructions for improvement measures

Examine and offer guidance on improvement plans

ReportsPresident and the Board of

DirectorsCompany-wide

Director in Charge of the Environmental Protection

Department

Environmental auditing

Implement environmental performance assessment of business site environmental

management systems

Drafting of environmental management plan

Business plan

Environmental Measures Committee

Establish environmental policy, objectives and goals

Review and implement environmental conservation

measures

Environmental management status monitoring and assessment

Convene Environmental Measures Committee

Confirm and assess environmental management results

Report on on-site inspections and claims

Business activities

Promote environmental management activities

Promote pollution prevention measuresNegotiate with government offices, etc.

Meeting of persons in charge of environmental conservation

Environmental management support activities

Offer technical guidance on environmental management

Examine environmental management system

Offer education on environmental management

Corporate environmental policy

New Medium-Term Environmental Conservation Plan

* KEDES stands for KUBOTA Ecology Data E-system

Environmental risk management

KUBOTA conducts its corporate activities in strict accordance with proper work standards to ensure full compliance with all applicable laws and to prevent environmental problems and minimize environmental risks, while also implementing inspections and maintenance as necessary for the optimal operation of machines and equipment. Based on the premise that an environmental accident may occur at any time, we have established accident-response procedures

to control contamination and carry out regular training to prepare for unusual events and emergencies. At the same time, we are working to improve and further strengthen internal mechanisms to prepare for any grave environmental problems that may arise and to cope with emergencies, as part of our company-wide efforts to effectively respond to serious environmental accidents and other environmental risks.

Drill example for abnormal or emergency conditions (Kubota Industrial Equipment Corporation)

Drilling is conducted to prepare for accidental oil spillage that can be caused by the falling of oil drums. (June 24, 2009)

Environmental Risk Management


If we are to promote environmentally-friendly corporate activities, we have to increase environmental awareness among all of our KUBOTA Group members. The first step in addressing environmental problems is to become aware of the problems. At KUBOTA, we implement regular position-specific educational programs so that our employees can learn about environmental problems. Systematic and specialized education is also being carried out in order to make a satisfactory response to environmental issues. We are aiming at improving our abilities and at an increase in qualified

personnel. All of this is tied to the assured practice of environmental conservation.In addition, we participate in environmental education programs offered by external groups and, during June of each year which is Environmental Month, we organize visit to companies with advanced environmental policies to learn from them. We will continue our efforts to enhance our environmental education qualitatively and quantitatively into FY2011.

Results of environment-related education in FY2010(Only in-house education sponsored by the Environmental Protection Department or performed by contracted lecturers is included.)

Frequency No. of participants Course descriptionsCourse titleClassification

Education on environmental management technology Energy conservation training for Chinese trainees at Hirakata Plant

Report on the results of the environmental audit

Global environmental issues and the response required of corporations

The ISO 14001 standard, environmental laws, and case studies

Environment-related laws, KUBOTA’s environmental efforts

Environment-related laws, KUBOTA’s environmental efforts

Environmental measures in place at the Sakai Plant

Education on environmental management at the Utsunomiya Plant

Theory and application of environmental management technology, and visits to relevant facilities

Waste Disposal and Public Cleansing Law, practical training in contracting and manifests, etc.Poisonous and Deleterious Substances Control Law, handling of poisonous and deleterious substances

Global environmental issues and KUBOTA’s environmental corporate managementGlobal environmental issues and KUBOTA’s environmental corporate managementKUBOTA’s environmental corporate management & on-site environmental managementKUBOTA’s environmental corporate management & on-site environmental management

131

41

130

20

38

24

20

42

67

86

66

9

4

1

2

2

2

1

2

1

1

2

1

1

1

1

1

General course <1> (New recruits and so on)

Training for personnel promoted to senior management

Training for newly appointed foremen

Training for newly appointed supervisors

Education of environmental management technology

Follow-up education for internal environmental auditors (ISO 14001)

Waste management lecture

Kubota Comps Corporation: Environmental education

Tochigi Prefecture Utsunomiya Hakuyo High School:Acceptance of internship

CSR training (Employees who have worked for eight years and are in creative course go through this training.)

Report meetings with directors Reporting the results of risk management audit in FY2010

Hanshin Office: Training for personnel with internal qualifications for handling poisonous and deleterious substancesKyuhoji Business Center: Environmental education for the Electronic-equipped Machinery Division

JICA (Japan International Cooperation Agency): The environmental policies and environmental management course

Management level education

Education by employee-level

Professional education

Cooperation in the education of outside organizations “Energy Conservation Training for Chinese Governmental Officials,”

held as part of the International Project for More Efficient Energy Use of FY2010, commissioned by the Energy Conservation Center, Japan.

Introduction of energy control systems employed by the Hirakata Plant and achievements of its energy conservation measures; a visit to relevant facilities

1 41

Environmental education

ー

Environmental Education


Environmental conservation costs

Slag 30%

Waste plastics 25%

Rubble 22%

Soot and dust(harmful) 7.9%

Sludge 6.8%

Waste alkali (harmful) 4.5%

Soot and dust 3.2%

Waste oil 0.3%

Waste alkali 0.2%

Flammable waste oil 0.1%

Environmental accounting is employed in order to reflect back into our business activities as much as possible the quantitative comprehension and analysis of the costs of environmental conservation and the effects that are obtained from those activities, and to promote a wider understanding of KUBOTA’s participation in environmental conservation activities by disclosing information to internal and external stakeholders.

Investment in environmental conservation amounted to 1,100 million yen, which is almost unchanged from the previous year. Environmental costs decreased by 1,100 million yen from the previous year to 8,040 million yen. Research and development cost totaled 5,010 million yen, which accounts for about 62% of all the expenditures for the year.

Environmental conservation effects

Declines in production led to across-the-board reduction in both consumption and emissions. Especially, waste disposal at landfill sites showed marked reduction because we contracted with new steel slag recycling companies.

Economic effects

Our environmental conservation activities resulted in economic effects worth 1,400 million yen.

Effects of cost reduction through zero-emission (Data for business sites in Japan)

The reduction, reuse and resource recycling associated with waste contributed to lowered outsourcing fees for waste processing and generated an effect of 380 million yen in cost reductions for the year.

Total capital investment (including land) for the corresponding period (consolidated data)

Total R&D costs for the corresponding period

26,000

25,241

Main activitiesClassificationsExpensesInvestmentExpenses

FY2010FY2009

Investment

1,514

379

244

891

23

1,235

5,005

1

260

724

517

122

85

0

0

373

0

0

1,997

591

280

1,126

28

1,252

5,646

7

212

557

370

166

22

0

0

544

0

0

Within the business area

Management activities

R&D

Social activities

Environmental remediation

Upstream and downstream costs

Local environmental conservation

Global environmental conservation

Resource recycling

(¥ millions)

Total

Prevention of air and water pollution, soil contamination, noise, vibration, etc.

Minimizing waste production, reducing quantity of waste, and recycling

Collection of used products and commercialization of recycled products

Environmental management personnel, ISO maintenance and implementation, environmental information dissemination

R&D for reducing of product environmental load and developing environment conservation equipment

Local cleanup activities and membership fees and contributions to environmental groups, etc.

Contributions and assessments, etc.

Prevention of climate change

8,0381,0969,1411,101

ItemsEffects FY2010 Increase/Decrease

Ratio to the previous FY (%)FY2009

84

92

82

100

72

95

84

71

12

ー1.35

ー0.35

ー87

0

ー19.5

ー0.2

ー130

ー26

ー7.2

7.25

4.26

406

3.8

49.5

3.8

664

64

1

8.60

4.61

493

3.8

69.0

4.0

794

90

8.2

Water consumption (million m3)

CO2 emissions(kiloton-CO2)

SOx emissions (tons)

NOx emissions (tons)

Soot and dust emissions (tons)

Releases and transfers of PRTR-designated substances (tons)

Waste discharge(kilotons)

Waste to landfills(kilotons)

Environmentaleffect related to resources input into business activities

Environmental effect related to waste or environmental impact originating from business activities

Energy consumption[units of heat; in petajoules (PJ)]

(¥ millions)

DetailsClassifications Annual effects

5

380

573

Energy conservation measures

Zero-emissions measures

Total

Efficient operation of compressors and the introduction of highly effective equipment at the time of installing and updating equipment, etc.

Improvements in load efficiency and a reduction of transportation distances in physical distribution

Reducing the quantity of, and resource recycling of industrial waste

Sales of valuable resources

442

1,400

1) The period covered spans from April 1, 2009 to March 31, 2010.2) The data of business sites in Japan are considered in the calculation.3) Data was calculated in accordance with the Environmental Accounting

Guidelines 2005, published by Japan’s Ministry of the Environment.4) “Expenses” includes depreciation costs. Depreciation cost was calculated based on the standards applied to

KUBOTA’s financial accounting, and assets acquired in and after 1998 were considered in the calculation.

“Management activities” and “R&D” costs include personnel expenses. “Resource recycling” costs do not include costs incurred during disposal of

construction waste at construction sites. The cost of “R&D” represents that which was spent on environmental

purposes, calculated on a pro-rate basis.5) “Economic effects” are obtained only by adding up tangible results and do not

include estimated effects.

Environmental accounting principles

Total¥380 million


Environmental Accounting (Data for Business Sites in Japan)

Amount spent on green products and the ratio to total purchasing amount(Data for business sites in Japan)

2005 2006 2007 2008 2009 2010

（％）

(FY)0

20

10

40

30

60

50

90

80

70

100

web For details about the “KUBOTA Group Green Procurement Guidelines,” please visit our website at: http://www.kubota.co.jp/eng/main/procure.html

(¥ millions)

0

20

40

60

80

100

120

39.90 42.36 49.97 44.81 52.63 48.51

85.4

93.2 93.293.6 91.7

67.6

Green Purchasing/Green Procurement


Green purchasing

Green procurement

The KUBOTA Group is promoting the purchase of “green” office supplies (paper, stationery, etc.).In and before FY2009, we calculated the ratio of the amount spent on green products to the total purchasing amount of the items that had green alternatives only. In FY2010, however, the ratio of the amount spent on green products was calculated in relation to the total purchasing amount of all items, regardless whether green alternatives were available or not. As a result, the ratio was 67.6%, falling short of the target of 70%.

The KUBOTA Group is committed to the procurement of products with a reduced environmental impact from suppliers that engage in environmental activities, as part of our commitment to providing society with products that are friendly to global and local environments.Specifically, we formulated the “KUBOTA Group Green Procurement Guidelines” detailing our green procurement policy, and seek understanding and cooperation from our suppliers.In April 2010, the guidelines were revised to cope with the laws regulating chemical substances in products.

KUBOTA’s business sites in Japan and consolidated divisions

All of the KUBOTA Group’s production sites in Japan were awarded ISO certification by the end of FY2007. Currently, efforts to obtain ISO certification are underway at our overseas production sites.

(As of March 31, 2010)

Inspecting/Certifying organ Date of certificationNo. Name

September 17, 1999

March 10, 2000

November 28, 1997

May 18, 2000

March 19, 1999

December 22, 1999

July 14, 2000

July 14, 2000

July 14, 2000

July 14, 2000

LRQA

LRQA

LRQA

JUSE

DNV

JICQA

LRQA

LRQA

LRQA

Main business

Valves, cast steel, new ceramic materials, and construction machinery

Engines, tractors, small-size construction machinery, etc.

Engines, tractors, etc.

FRP products

Industrial cast iron products, drainage pipes, and other cast iron products

Sewage & sludge water purification, waste water treatment in accordance

Filtration membrane unit

Incineration and melting plants

Other included organizations and subsidiaries

Shin-yodogawa Environmental Plant Center

3

4

5

8

9

10

11

13

14

1

2

Tsukuba Plant

Utsunomiya Plant

7

6

Hirakata Plant

Sakai Plant/Sakai Rinkai Plant

Shiga Plant

Kyuhoji Business Center

Okajima Business Center

Water & sewage engineering division

Membrane system division

Waste engineering project

Keiyo Plant

Hanshin Plant

Ryugasaki Plant

Pump division12

Ductile iron pipes, spiral welded steel pipes

Ductile iron pipes, rolls, potassium titanate

Vending machines

Measuring instruments, CAD systems, rice-milling products, waste shredder systems, submerged membranes, and mold temperature controllers

Sewage & water purification plants, pumps and pump stations

LRQA

LRQA

DNV

LRQA

LRQA

March 5, 1999

July 16, 1998

November 13, 1998

Distribution Center

Gyotoku Processing Center

Eastern Main Parts CenterKUBOTA F.I.M. Service Ltd.KS Tsukuba Training CenterKanto Kubota Precision Machinery Co.,Ltd.

Marushima Factory

Nagasu Factory

KUBOTA Vending Service Co., Ltd.

Ryugasaki Plant

KUBOTA Kanto Vender Center Inc.

Ryugasaki Plant

KUBOTA F.I.M. Service Ltd.

KS Utsunomiya Training Center

KUBOTA Membrane Corp.

KUBOTA Keiso Corp.

KUBOTA Colortoronic Corporation

KUBOTA Kiko Ltd.KUBOTA System Control Corporation

KUBOTA Group: Domestic companies

Inspecting/Certifying organ Date of certificationNo Name

April 20, 1999

July 23, 1999

January 19, 2000

October 27, 2000

December 22, 2000

November 20, 2002

March 27, 2003

August 27, 2004

January 24, 2005

March 17, 2007

KHK

JUSE

JUSE

JSA

JQA

MSA

JUSE

JQA

JCQA

LRQA

Main business

Manufacture of composite pipes and couplings



Manufacture of composite pipes, plastic sheets, etc.

Design and construction of civil engineering structures and buildings

Manufacture of composite pipes

Design, development and manufacture of central air conditioning systems

Design, construction, installation and management of pipelines

Installation, maintenance and management of environmental systems for drinking water, sewage, landfill disposal, raw waste and waste plants, etc.

Design, development and manufacture of hydraulic valves and cylinders, manufacture of transmissions and hydraulic pumps and motors

Other included organization

Tochigi Plant

Sakai Plant

Odawara Plant

Head office and plant, Mino Plant

Tochigi Plant




Nippon Plastic Industry Co., Ltd.

KUBOTA Construction Co., Ltd.

KUBOTA Environmental Service Co., Ltd.

Kyusyu KUBOTA Chemical Co., Ltd.

KUBOTA Air Conditioner Co., Ltd.

KUBOTA Pipe Tech Co.

KUBOTA Precision Machinery Co., Ltd.

1

2

3

4

5

6

7

8

9

10

KUBOTA Group: Overseas companies

Inspecting/Certifying organ Date of certificationNo Name

February 28, 2003

February 10, 2006

June 15, 2006

MASCI

LRQA

SGS

Main business

Small diesel engines and tractors

Diesel engines

Cast steel products

The Siam Kubota Industry Co., Ltd. (Thailand)

PT. Kubota Indonesia

Kubota Metal Corporation (Canada)

1

2

3

●LRQALloyd’s Register Quality Assurance Limited

●JCQAJapan Chemical Quality Assurance Ltd.

●DNVDet Norske Veritas AS

●JUSEUnion of Japanese Scientists and Engineers●JICQA

JIC Quality Assurance Ltd.●KHK

The High Pressure Gas Safety Institute of Japan

●JSAJapanese Standard Association●JQA

Japan Quality Assurance Organization●MSA

Management System Assessment Center Co., Ltd.

●MASCIManagement System Certification Institute (Thailand)●SGS

SGS Systems & Services Certification Canada Inc.

December 8, 2000

KUBOTA Valve Maintenance Corporation

Rice transplanters and combine harvesters

ISO 14001 Certification


To offer environmentally friendly products, the KUBOTA Group is promoting measures to reduce environmental impact at the R&D stage in a well-planned manner.

Development of environmentally-friendly products

In our effort to design environmentally-friendly products, we make it a rule to conduct an environmental assessment on products at the R&D stage to measure the environmental impact through the lifecycle of the products and to minimize that impact.

Materials

ProductionProduct environmental assessment form

Product group Content and cases of involvement at the R&D stage

Tractors

Combine harvesters

Rice transplanters

Agriculture-related product

Agricultural facilities


Engines

Iron pipes

Valves

Drainage pipes

Service water and sewerage-related

Recycling-related

Pumps

Membrane business-related

Septic tanks

Plastic pipes

Cast steel

Rolls

New material

Steel pipes

Electrical equipment

Vending machines

Air-conditioning equipment

Compliance with exhaust emission regulations; improvements in fuel-efficiency; reduction in the use of substances of environmental concern in painting and coating materials

Compliance with exhaust emission regulations; reduction in fuel consumption by reducing mass per horsepower; reduction in the use of substances of environmental concern in painting and coating materials

Reduction in total energy consumption by applying fertilizer, herbicide, fungicide, and pesticide at the same time as rice transplanting

Development of new models of the Rice Robo automatic rice cooker that require 30% less water and grass cutters that contribute to a reduction in the use of herbicide

Reduction in the weight of the seedling box supplying device (by 10% over KUBOTA’s equivalent models); reduction in the use of substances of environmental concern in painting and coating materials

Compliance with exhaust emission regulations; reduction of noise emitted by vehicles; improvements to fuel-efficiency by employment of an automatic idle elimination system

Compliance with exhaust emission regulations; reduction of fuel consumption, noise, and vibration; development of biodiesel-compatible engines

Reduction of waste soil during construction work; reduction in the number of parts; improvement of durability

Enhancement of durability of sheets; reduction of weight to increase ease of installation; reduction in use of lead-containing alloys

Reduction of materials used for installation of drainage system products; improvement of work environment during drainage pipe installation; reduction of drainage noise

Improvement of energy efficiency of sewage treatment equipment; reduction of weight of machines that dewater sludge; development of wastewater recycling technology

Reduction in energy consumption by enhancing performance of shredders

Reduction in energy consumption by enhancing the performance of pumps (vertical shaft mixed flow, volute, and non-clog pumps)

Development of energy-saving membrane devices; development of wastewater recycling and treatment systems; development of longer-life membrane cartridges for membrane methane unit

Development of compact energy-saving septic tanks for home use; development of medium- and large-sized septic tanks

Development of components and installation methods for the renewal of existing pipes; development of bioplastic products

Implementation of life cycle assessment (LCA) of new products; evaluation of environmental impact levels

Improvement of resource- and energy-saving efficiency at customers’ sites by adopting longer-life rolls for sheet-rolling mills

Development of high-performance titanate compounds to contribute to the preservation of the global environment

Reduction of construction work time through use of mechanical joints; promotion of resource conservation through use of higher-strength steel pipes; reductions in CO2 emissions

Elimination of RoHS-designated substances in new measurement instruments and agricultural products; reduction in the use of substances of environmental concern in existing products

Installation of energy-saving heat pumps in an increasing number of canned and packaged beverage vending machines (Heat pumps have been installed in all major models.)

Reduction of fan noise; reduction of substances of environmental concern; reduction in the weight of new products

Primary areas covered by the product environmental assessment (in part)

Environmentally-Friendly Products


Reduction of substances of environmental concern in materials and components; reduction in mass, volume, and the number of components; increase in the use of recycled materials; reduction in the use of rare materials

Energy conservation; waste reduction

Physical distribution Ease of transportation; reduction of packing materials

Construction Energy conservation at construction sites; resource conservation; reduction of environmental impact

Operation of equipment

Energy conservation; reduction of noise and vibration; improvements to durability

Waste disposal, recovery, reuse Recycling; proper waste disposal

Information disclosure

Disclosure of materials and components; instructions for maintenance and disposal

■ Action plan under the Next Generation Nurturing Support Measures Promotion Law

Data Concerning CO2 Emissions


Trends in freight shipping

By truck By ship By train

Total energy inputs CO2 emissions

(Unit of heat PJ=1015 J)

*In addition to the above, we also consumed electricity generated in-house by cogeneration (1,130 MWh) and solar power (40 MWh).

500

400

300

200

100

0(FY)

(million ton-km)

1Total8.49 PJ(219,000kl)

Electricity58％

Coal coke13％

Town gas/LNG14％

Kerosene 8％

Other 7％ (heavy oil, light oil, LPG, etc.)

Total478

kiloton-CO2

Energy related CO2

98％

CO2 from non-energy sources 2％(CO2, CH4, N2O, FC, PFC, SF6)

2006

240

130

370

2007

420

280

140

1

2008

410

260

150 2

2

2010

320

210

110

2009

390

250

140

1991

Trends in CO2 emissions and CO2 emissions per unit of sales

*Since FY2005, non-production sites and affiliates have been added to calculations. The number of applicable business sites is being gradually increased.*CO2 emissions per unit of sales=CO2 emissions/sales ( Consolidated net sales Non-consolidated net sales)

1000

800

600

400

200

0

100

80

60

40

20

0

544

2005

425

51388

2006

390

515

125

2007

398

552

135

2008

391

536719 9

8138

2009

415

575

151

2010

334

100

82

100

73

94

75

95

74

9084

81

101 100

478

CO2 emissions from non-energy sources (KUBOTA Group)

136

CO2 emissions (KUBOTA non-production sites and affiliates)

CO2 emissions (KUBOTA production plants)

CO2 emissions per unit of sales (FY1991=100) (KUBOTA production plants)

CO2 emissions per unit of consolidated net sales (FY2005=100) (KUBOTA Group)

(FY)

（％）(kiloton- CO2)

Trends in total CO2 emissions during distribution and CO2 emissions per unit of sales

*CO2 emissions per unit of sales=CO2 emissions/consolidated net sales

CO2 emissions (Affiliates in Japan)CO2 emissions (KUBOTA)

CO2 emissions per unit of sales (FY2007=100)

80

70

60

50

40

30

20

10

0

100

50

02006

34

43

9

20082007 2009 2010

10096 94 95

(FY)

（％）(kiloton- CO2)

39

50

11

39

49

10

36

46

10

29

39

10

Conversion Coefficient


Calculation of CO2 emissions

Calculation of CO2 emissions during distribution

Fuel: Coefficients are used from the “Table of heat generation by energy source” (revised on March 30, 2001) (Agency for Natural Resources and Energy).

Electricity: 9.83MJ/kWh is used from the “Enforcement ordinance of Law Concerning the Rational Use of Energy” (revised on December 27, 2002).

Coefficients are used from the “Enforcement ordinance of Law Concerning the Rational Use of Energy” (revised on March 29, 2006).Coefficients are used from the “Enforcement ordinance of Law Concerning the Rational Use of Energy” (revised on March 31, 2009).

●in and before FY2005

●from FY2006 to FY2009

●in FY2010

*Heat conversion coefficients

It is calculated using the values in the item of “energy consumption to carry a baggage of one metric ton in a distance of one kilometer (in FY2005)” in the “Directory of energy relating to transportation for 2006” (Ministry of Land, Infrastructure and Transport).It is calculated using the values in the item of “energy consumption to carry a baggage of one metric ton in a distance of one kilometer (in FY2006)” in the “Directory of energy relating to transportation for 2007” (Ministry of Land, Infrastructure and Transport).CO2 emissions are calculated using the improved ton-kilometer method stipulated in the Manual for Calculation and Report of Greenhouse Gas Emissions Ver.2.4 (March 2009) (Ministry of the Environment and Ministry of Economy, Trade and Industry). (CO2 emissions = ton-kilometer transported x CO2 emissions per ton-kilometer (calculated by the improved ton-kilometer method))

●in FY2005



*CO2 emissions per unit ton-kilometer in truck transportation

It is calculated using the formula below.Carbon dioxide equivalent (t-CO2)=carbon equivalent (t-C)×3.664And coefficients are used from the “Report on survey on carbon dioxide emissions (1992)” (Environment Agency).Coefficients are used from the “Guidelines for Calculating Greenhouse Gas Emissions from Businesses” (draft Ver.1.5) (July 2003, Ministry of the Environment).Fuel: Coefficients are used from the “Department regulation concerning calculation of greenhouse gas

emissions from the business activities of the specified polluters” (March, 2006; the third department regulation of Ministry of Economy, Trade and Industry and Ministry of the Environment).

Electricity: Coefficients are used from the Department regulation above and emission coefficients by electricity supplier for domestic values.For calculating overseas emissions, coefficients are used from the “Report on estimated survey on carbon dioxide emissions per unit electric generation in electric generation divisions in each country-Ver.3 (June 2006)” (The Japan Electrical Manufacturers’ Association).

Fuel: Utilizes the coefficients stipulated in the Manual for Calculation and Report of Greenhouse Gas Emissions Ver.2.4 (March 2009) (Ministry of the Environment and Ministry of Economy, Trade and Industry).

Electricity: Emission coefficients published by electricity suppliers are used for calculating domestic emissions.For calculating overseas emissions, coefficients are used from the “Report on estimated survey on carbon dioxide emissions per unit electric generation in electric generation divisions in each country-Ver.3 (June 2006)” (The Japan Electrical Manufacturers' Association).

Coefficients are used from the “List of calculation methods and emission coefficients for calculating, reporting, and disclosure systems” (revised in March 2010) (Ministry of the Environment and Ministry of Economy, Trade and Industry). Electricity: The above emission coefficients and those published by electricity suppliers are used for calculating

domestic emissions. For calculating overseas emissions, emission coefficients of the respective countries published in the Greenhouse Gas Protocol Initiative are used.

●in FY1991

●in FY2005


●in FY2009

●in FY2010

*Carbon dioxide emission coefficients

●The values are used in the item of “carbon dioxide emissions per ton-kilometer of transportation by transport vehicle” in the “Manual for Calculation and Report of Greenhouse Gas Emissions (Ver.2.4)” (March 2009, Ministry of the Environment and Ministry of Economy, Trade and Industry).

*CO2 emissions per unit ton-kilometer except for truck transportation

●Only KUBOTA Corporation non-consolidated is targeted in FY2005. Some subsidiaries and affiliates in Japan also become targets in and after FY2006.

*Targeted area of calculation of CO2 emissions is gradually expanding.

●Only plants and factories of KUBOTA are targets in FY1991. Non-production sites and affiliates also become the targets in and after FY2005. The number of targeted business places is increasing.●Beginning from the CSR Report 2008, CO2 emissions from the Residential Housing Materials Division, which was spun off from the

KUBOTA Group into a separate company in December 2003, are excluded from the KUBOTA Group’s total CO2 emissions. Accordingly, the amount of CO2 emissions during FY1991 shown in this report is smaller than the amount disclosed in the past.●Greenhouse gases other than energy-originated carbon dioxide are newly added to calculation in and after FY2007. But the values which

were calculated in and before FY2006 are not recalculated.

*Beginning from 2007, emissions for the period from January to December are shown for HFC, PFC, and SF6.

*Targeted area of calculation of CO2 emissions

Data Concerning Resource Recycling


Trends in waste discharge etc.

*Includes business sites in Japan only up to FY2006 and overseas business sites from FY2007.*Discharge per unit of sales (FY2005=100)=waste discharge/consolidated net sales

200

160

120

80

40

0

100

50

02005 2006 2007 2008 2009 2010

10096 94

8792

86

10

55

8470

47

7

66

86

6

76

92

2

56

92

3 4

44

89

Sales of valuable resources Recycling & reductionsLandfill disposal Discharge per unit of sales

(FY)

（％）(kiloton)

Waste recycling and treatment flow　(ton/year)

*The amounts of waste reduction, resource recycling after treatment and final landfill disposal were the result of surveys conducted by outside intermediate treatment companies.

Waste reduction*

Resource recycling after treatment*

Final landfill disposal*

e : 8,575

f : 58,940

g : 3,565

In-house reintegration and reuse

In-house intermediate treatment (dehydration etc.)

Resource recycling

b : 23,994

Sales of valuable resources (metals etc.)

Waste discharges(outsourced

waste processing)

Waste generation

Total waste generation

a : 46,547

c : 100,242

d : 2,922

Direct to landfill

Intermediate treatment

h : 294

71,080

74,296174,538245,079

Trends in landfill ratios

*Includes business sites in Japan only up to FY2009 and overseas business sites in FY2010.*Landfill ratio (%)= (Direct landfill disposal+landfill disposal after intermediate treatment)/ (Valuable resources+waste discharge)

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.02005 2006 2007 2008 2009 2010 (FY)

（％）

2.1

1.3 1.0

2.4

6.0

3.2

Breakdown of waste discharge

総排出量74,296t

Total discharges

74,296 tons/year

Slag56%

Other 8%Paper scrap 3%

Wooden scrap 5%

Soot and dust(harmful) 5%

Plastic waste 3%

Metallic scrap 4%

Rubble 2%

Waste oil 4%

Sludge 10%

(kiloton) （％）

Recycling rate (All)

Recycling rate (Specific Construction Materials)

Trends in the recycling of construction waste (Data for business sites in Japan)

100

80

60

40

20

0

100

80

60

40

20

0

Discharged amount (kiloton)

(FY)

89.5

99.1

2007

61

92.8

99.5

2006

2212

2005

93.4

86.2 89.2

99.3

2008

48

98.7

2010

22

84.1

99.3

2009

26

87.3

Note 1: The figures up to FY2006 show the results of KUBOTA Corporation non-consolidated, while the figure in and after FY2007 show the results of both KUBOTA Corporation and the affiliates in Japan.

Note 2: Recycling rate (All) includes construction waste other than Specific Construction Materials.

Note 3: Percentage of recycling=(valuable resources+amount reused+amount recycled+amount reduced (heat recovery))/discharge [including valuable resources]Prior to FY2007, the amount of simple incineration and dehydration, etc. was included in the amount reduced.

Results of PRTR Reporting/Groundwater Monitoring


Water-soluble zinc compounds Bis (2-ethylhexyl) adipate Bisphenol A type epoxy resin (liquid) Ethylbenzene Ethylene glycol Cadmium and its compounds Xylene Chromium and chromium (III) compounds Chromium (VI) compounds Cobalt and its compounds Dichloropentafluoropropane Organotin compounds Styrene 1, 3, 5-trimethylbenzene Toluene Lead and its compounds Nickel Phenol Di-n-butyl phthalate Hydrogen fluoride and its water-soluble salts Benzene Boron and its compounds Manganese and its compounds Molybdenum and its compounds

0.00.00.0

77,9800.00.0

191,5280.00.00.00.0

0.1024,960

428180,261

6.30.00.00.00.01.70.02.90.0

475,169

19

30404360636869

100144176177224227230231266270283299304311346

330.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.033

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

160.00.00.00.00.00.03.50.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.020

Chemical substance

Number specified in Cabinet

Order

Business site Substance Measured groundwater value

Environmental standard value

SoilAtmosphere Public water areas On-site landfills

Releases Transfers

Sewerage Transfers to off-site

Trends in the amounts of PRTR-designated substances released and transferred (Data for business sites in Japan)

Proportion of release and transfer amounts in FY2010 by substance

Results of PRTR reporting for FY2010 (for substances for which the annual handling quantity equaled one ton or more (0.5 ton or more for specific class 1 designations) for each business site)

Trends in the amounts of VOC released (Data for business sites in Japan)

2,520299644

15,030335

8,31032,45517,810

1980.65

2,92538

0.0143

26,71036,938

4130.048

1,2970.0

84441,850

0.0188,806

No contamination was detected as a result of groundwater measurements conducted on the premises of the business sites that used organic chlorine-based compounds in the past.

*VOC stands for Volatile Organic Compound.*The data shows the total amount of VOCs for which reporting is required under the PRTR Law only.

*The data shows the total amount of the substances in which the annual handling quantity equaled one ton or more (0.5 tons or more for specific class 1 designations) for each business site and for which reporting is required by law Business sites in Japan only.*Release and transfer per unit of sales (FY2005=100)＝total release and transfer/consolidated net sales*The amount of release and transfer during FY2009 was corrected.

20062005

791

180

971

100 88

80

70 73 73

660

251

911

631

246

877

580

207

787

574

220

794

475

189

664

20082007 2009 2010 (FY)

（％）(tons) Releases Transfers Release and transfer per unit of sales

0

25

50

75

100

20062005

790 659 631 580 574 475

20082007 2009 2010 (FY)

(tons)

0

200

400

600

800

1,000

1,200

1,400

1,600

0

200

400

600

800

1,000

1,200

1,400

1,600

Total

*The data shows tha total amount of the substances handled by: ( Production sites of KUBOTA in Japan )+( Production sites of KUBOTA ’s subsidiaries in Japan.)

: Volatile Organic Compounds (VOC)

(kg/year)

Xylene 33.7%

Toluene 31.2%

Ethylbenzene 14.0%

Manganese and its compounds6.3%

Lead and its compounds5.6%

Styrene 3.8% Other 5.5%

Tsukuba Plant

Utsunomiya Plant

Trichloroethylene

Trichloroethylene

0.03mg/L or less

0.03mg/L or less

Non detected(Less than 0.0002mg/L)

Non detected(Less than 0.001mg/L)

Groundwater monitoring

■Period covered:April 1, 2009 to March 31, 2010, for data on business sites in Japan (January 1, 2009 to December 31, 2009 for data in other countries)

■Organizations covered:KUBOTA Corporation and its 70 consolidated subsidiaries in Japan and 35 consolidated subsidiaries in other countries

■Calculation method:The Environmental Reporting Guidelines 2007 (from Japan’s Ministry of the Environment) were used as references. For specific details, refer to the following table.

Environmental performance indicators

Sto

pp

ing

Clim

ate

Ch

ang

e

Total energy input PJ

ton-CO2

%

Unit Calculation method

Wor

king

tow

ards

a R

ecyc

ling-

base

d So

ciet

y Amount of waste discharge etc.

Amount of waste discharge

Amount of landfill disposal

tons

tons

tons

Ch

emic

al S

ub

stan

ce C

on

tro

ls

Amount of PRTR-designated substances released and transferred

tons

Oth

er

Water resource input million m3

Amount of electricity purchased x per-unit of heat input*1+Σ (amount of each fuel consumed x per-unit heat value of each fuel*1)

Amount of electricity purchased x CO2 emission coefficient*1 +Σ (amount of each fuel consumed x per-unit heat value of each fuel*1 x CO2 emission coefficient*1 of each fuel)+CO2 emissions from non-energy sources*2+non-CO2 greenhouse gas emissions*2

CO2 emissions per unit of sales=total CO2 emissions of KUBOTA Group/consolidated salesRate of change is calculated by: CO2 emissions per unit of sales of each fiscal year/CO2 emissions per unit of sales of FY2005 x 100 (%) (as shown in the graph on page 39 of the CSR Report)

CO2 emissions per unit of sales=total CO2 emissions of KUBOTA production plants/sales of KUBOTA CorporationRate of change is calculated by: CO2 emissions per unit of sales of each fiscal year/CO2 emissions per unit of sales of FY1991 x 100 (%) (as shown in the graph on page 39 of the CSR Report)

Σ (Freight volume per shipment [ton] x distance traveled [km])

“Conversion coefficient” as shown at http://www.kubota.co.jp/csr/report/r2010.htmlThe data of KUBOTA Corporation and consolidated production subsidiaries in Japan are considered in the calculation.

PRTR-designated substance release and transfer per unit of sales=amount of PRTR-designated substances released and transferred/consolidated salesPRTR-designated substance release and transfer per unit of sales of each fiscal year/PRTR-designated substance release and transfer per unit of sales of FY2005 (as shown in the graph on page 41 of the CSR Report)

Total amount of service water, industrial water, and ground water consumed

Amount of waste water discharged to public water areas or through sewageThe data of KUBOTA Group’s business sites in Japan are considered in the calculation in and before FY2008, and the data of overseas business sites are included in the calculation in and after FY2009.

Total amount of the chemical substances handled, which are designated as Class 1 under the PRTR Law and whose total volume handled annually by each business site is one ton or more (or 0.5 ton or more in case of Class 1-specified chemical substances)The data of KUBOTA Group’s business sites in Japan are considered in the calculation.

Amount of fuel consumed (kg) x sulfur content in the fuel (on a weight basis: %)/100 x 64/32 x (1–desulphurization efficiency)/100, or amount of SOx emitted per hour (m3N/h) x annual operation hours of the relevant facility (h) x 64/22.4 x 10-3

The data of KUBOTA Group’s soot- and smoke-emitting facilities in Japan specified in the Air Pollution Control Law are considered in the calculation.

NOx concentration (ppm) x 10-6 x amount of gas emitted per hour (m3N/h) x annual operation hours of the relevant facility (h) x 46/22.4 x 10-3


Soot and dust concentration (g/m3N) x amount of gas emitted per hour (m3N/h) x annual operation hours of the relevant facility (h) x 10-6


COD or nitrogen concentration (mg/l) x amount of waste water discharged to public water area (m3) x 10-6

The data of KUBOTA Group’s business sites in Japan to which the total emission control standard is applied are considered in the calculation in and before FY2009. The data of overseas business sites are included in the calculation in FY2010.

Phosphorus concentration (mg/l) x amount of waste water discharged to public water area (m3) x 10-6

The data of KUBOTA Group’s business sites in Japan to which the total emission control standard is applied are considered in the calculation.

Consolidated sales/amount of CO2 emitted by the KUBOTA Group

Consolidated sales/amount of waste discharged by the KUBOTA Group

Consolidated sales/amount of PRTR-designated substances released and transferred by the KUBOTA Group business sites in Japan

Amount spent to purchase “green” office supplies (paper, stationery)/total amount spent to purchase items subject to green purchasingThe data of KUBOTA Group’s business sites in Japan are considered in the calculation.

CO2 emissions during distribution/consolidated salesRate of change is calculated by: CO2 emissions during distribution per unit of sales of each fiscal year/CO2 emissions during distribution per unit of sales of FY2007 x 100 (%) (as shown in the graph on page 39 of the CSR Report)

Waste discharge per unit of sales=amount of waste discharged/consolidated salesWaste discharge per unit of sales of each fiscal year/waste discharge per unit of sales of FY2005 (as shown in the graph on page 40 of the CSR Report)Amount of construction waste discharge (including waste generating from construction other than specific construction materials)+amount of valuable resources (generated from construction) sold

(Amount of waste direct to landfill+amount of waste to final landfill disposal after intermediate treatment)/ (amount of valuable resources sold+amount of waste discharged) x 100 (%)The data of KUBOTA Group’s business sites in Japan are considered in the calculation in and before FY2009, and the data of overseas business sites are included in the calculation in FY2010.

Recycling rate of construction waste (all materials) refers to the recycling rate of construction waste, including waste generated from construction other than specific construction materials.Recycling rate of construction waste (specific construction materials) refers to the recycling rate of waste construction materials stipulated in the Construction Material Recycling Law.Recycling rate=(amount of valuable resources sold+amount recycled+amount reused+amount reduced (heat recovery))/amount of construction waste discharge (including valuable resources) x 100 (%)

Total release and transfer amount of the chemical substances designated as Class 1 under the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (the PRTR Law), whose total volume handled annually by each business site is one ton or more (or 0.5 ton or more in case of Class 1-specified chemical substances).- Amount released=amount discharged to the atmosphere+amount discharged to public water area+amount discharged to soil+amount disposed of by landfill in the premises of the business site- Amount transferred=amount discharged to sewerage+amount transferred out of the business site as wasteThe amount of each substance released and transferred is calculated in accordance with the Manual for Calculating the Quantity of Released Pollutant under the PRTR System Third Edition (Ministry of Economy, Trade and Industry and Ministry of the Environment).The data of KUBOTA Group’s business sites in Japan are considered in the calculation.

Amount of valuable resources sold+amount of waste treated by outside contractors

Amount of VOCs (volatile organic compounds) released to the atmosphere (included in the PRTR-designated substances)

Amount of waste treated by outside contractors=amount of industrial waste+amount of general waste from business

Amount of waste direct to landfill+amount of waste to final landfill after intermediate treatment

CO2 emissions

CO2 emissions per unit of sales(KUBOTA Group)

CO2 emissions per unit of sales(KUBOTA production plants)

Freight shipping volume

CO2 emissions during distribution

CO2 emissions during distribution per unit of sales

ton-CO2

%

%

ton km

Landfill ratio

Waste discharge per unit of sales

Recycling rate of construction waste (all materials)Recycling rate of construction waste (specific construction materials)

Amount of construction waste discharge

%

%

tons

％

Amount of RTR-designated substances (VOCs) released

PRTR-designated substance release and transfer per unit of sales

tons

%

Amount of waste water discharge (to public water areas and through sewage)

Amount of PRTR-designated substances handled

Amount of SOx emissions

Amount of NOx emissions

Amount of soot and dust emissions

Amount of COD and nitrogen discharge

Eco-efficiency indicator (CO2)

Eco-efficiency indicator (waste)

Eco-efficiency indicator (chemical substances)

Green purchasing ratio

million m3

tons

tons

tons

tons

tons

Amount of phosphorus discharge tons

million yen/t-CO2

million yen/100kg

million yen/kg

%

*1 The conversion coefficient is as shown in http://www.kubota.co.jp/english/c-data/csr/2010html*2 The calculation uses the method stipulated in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (Ministry of the Environment).

Calculation Standards of Environmental Performance Indicators for the KUBOTA Group CSR Report 2010


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