The Ajinomoto Group Environmental Report 2002 · Environmental Management Environmental Management...

Environmental Report

2002The Ajinomoto Group

The products of the Ajinomoto Group rely on nature’s blessings. The only way in which the Group can continue to develop business activi-ties based on these blessings is to place top priority on preserving the global environment. The cover illustration represents the Ajinomoto Group’s hope that a symbiotic relationship between people and nature will ensure that fu-ture generations continue to benefit from the wondrous gifts of our global environment.

About the Cover Illustration

C o n t e n t s

Editorial Policy

Profile of the Ajinomoto Group

Message from the President

Ajinomoto Group Philosophy and Basic Environmental Policy

Three-year Environment Preservation Plan (1999–2001) and Achievements

New Three-year Plan (2002–2004)

Environmental Preservation ActivitiesEnvironmental Management

Environmental Management System

Environmental Audit

Environmental Assessment

Technological Development

Employee Training

Environmental Accounting

Record of AchievementsAnalysis of the Environmental Load

Zero Emissions Activities

Energy Conservation Activities

CO2 Emissions Reduction Activities

Environmental Risk Measures

Containers and Packaging Activities

Logistics Activities

Environmental Office Activities

Social ActivitiesCommunity Relations

Customer Relations

Employee Relations

Cultural Activities

Environmental Public Relations Activities

The History of Environmental Activities

Glossary

Editor’s Postscript

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4

6

7

8

9

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3236373940

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Editorial Policy

2001 Edition Feedback

This environmental report is intended to communicate to our employees and the general public the Group’s approach and activities related to environmental preservation. The goal of this report is to promote public communication, enhance transparency of the Group’s business, maintain and strengthen Group credibility, and raise awareness of ecological issues among Group employees.The Ajinomoto Group Environmental Report 2002 applies the following editorial policies:

• The target audience of this report focuses on a variety of stakehold-ers, including customers, business partners, residents of neighboring communities surrounding our operation sites, shareholders, investors, environmental activists, non-governmental organizations (NGOs), stu-dents, and employees of the Group companies.

• Commencing in 2001, the English version has been published for in-ternational dissemination in order to enhance global awareness of our environmental activities.

• This report is published on our Web site to promote understanding of the Ajinomoto Group’s environmental preservation activities to a wider audience. The report (both in Japanese and English) is available in PDF format from the Web site.

• In preparing this report the Environmental Reporting Guidelines (Minis-try of the Environment) and the GRI Guidelines were used as a refer-ence to make it more inclusive as well as to have a systematic format for better accessibility.

• With special consideration for requests to include information on sus-tainability, a new chapter, “Social Activities,” has been added to enrich the report content. This new chapter includes sections on “Community Relations,” “Customer Relations,” “Employees Relations,” “Cultural Activities,” and “Environmental Communication Activities.”

• The scope of companies for this compilation encompasses virtually the entire Ajinomoto Group in both Japan and overseas. This repre-sents an expansion beyond last year’s framework, which was limited to operation sites of Ajinomoto Co., Inc., and part of its domestic and foreign Group companies.

• Although we understand that third-party verification is expected to confirm overall reliability, it has not been pursued for this report, pend-ing further improvements in the systematic collection of information.

The Ajinomoto Group in this report refers to Ajinomoto Co., Inc., and those parts of its domestic and overseas consolidated subsidiaries that are subject to the Group’s environmental man-agement (please refer to the list of companies under “Scope”). Those companies subject to the Group’s environmental man-agement do not fully coincide with those of the Ajinomoto Group in terms of the consolidated accounting system (Ajino-moto Co., Inc., consolidated subsidiaries, and affiliated compa-nies), but 74% of those companies encompassing all major business activities are covered. (The scope of companies partly differs from that of the previous year. The major difference is ac-counted for by the exclusion of Ajinomoto Oil Mills Co., Inc., and Ajinomoto General Foods, Inc.)The scope for the accumulation of track-record information, such as data on environmental burdens, covers major produc-tion-related and distribution-related operation sites of the entire Ajinomoto Co., Inc., as well as domestic and overseas consoli-dated subsidiaries. The coverage is expressed as an expansion over the previous year. The 2002 report also covers, although only fractionally, articles related to companies beyond the scope of the Group’s environmental management.The report focuses on environmental activities and achieve-ments for the fiscal year ended March 31, 2002 and includes a few significant events that occurred after March 31, 2002.The 2002 report is the third edition published since the first was issued in 2000, which covered activities in 1999. The 2003 edition is scheduled to be published in Fall 2003.

Ajinomoto Co., Inc.Corporate, Seasonings & Food Products Company, Global Foods & Amino Acids Company, Pharmaceutical Company

Consolidated subsidiariesConsolidated subsidiaries pertaining to CorporateAcepackage Co., Ltd.; Acepack (Thailand) Co., Ltd. and its manufacturing subsidi-ary company; Ajinomoto Engineering Co., Ltd.; Ajinomoto Logistics Corporation and its 8 logistics subsidiary companies, etc.

Consolidated subsidiaries pertaining to Seasonings & Food Products CompanyKnorr Foods Co., Ltd., and its 5 subsidiaries; Ajinomoto Packaging Inc.; Ajinomoto Frozen Bakery Product Co., Ltd., and its manufacturing subsidiary company; Deli-ca Ace Co., Ltd., and its subsidiary manufacturing company; etc.

Consolidated subsidiaries pertaining to Global Foods & Amino Acids CompanyAjinomoto Co., (Thailand) Ltd. and its 3 subsidiaries; Ajinomoto (Malaysia) Berhad; Ajinomoto (Singapore) Pte. Ltd.; P.T. Ajinomoto Indonesia; P.T. Ajinex International; Ajinomoto Philippines Corporation; Ajinomoto Vietnam Co., Ltd.; Lianhua Ajinomo-to Co., Ltd.; Chuanhua Ajinomoto Co., Ltd.; Ajinomoto Eurolysine; Ajinomoto Bio-Italia S.p.A.; Ajinomoto U.S.A., Inc.; Ajinomoto Frozen Foods U.S.A., Inc.; Ajinomo-to Heartland, Inc.; Ajinomoto Interamericana Industria e Comercio Ltda.; Ajinomoto Biolatina Industria e Comercio Ltda.; Ajinomoto del Peru S.A.; Ajinomoto Lianhua Amino Acid Co., Ltd.; Shanghai Ajinomoto Amino Acid Co., Ltd.; Ajinomoto Euro-Aspartame S.A.; S.A. OminiChem N.V.; Shin-Nippon Commerce, Inc.; Ajinomoto-Takara Corporation, Inc.; Ajinomoto Fine-Techno Co., Inc.; etc.

Consolidated subsidiaries pertaining to Pharmaceutical CompaniesAjinomoto Pharma Co., Ltd., and others.

Frozen Foods Separate Company Ajinomoto Frozen Foods Co., Inc., and its three overseas subsidiary manufacturing companies

We have received public comments and opin-ions through a questionnaire included in the 2001 version and by e-mail as well as feedback from various concerned parties, including envir-onment specialists, evaluators of environmental reports, other companies’ workers responsible for environmental issues, and employees of Group companies. The volume of feedback was not sufficient to support statistical analysis, but here are a few representative comments and recommenda-tions, which have been taken into account in the preparation of the 2002 report.

Supportive Comments• The report was easy to understand. It aids in

the understanding of the close relationship be-tween the business of the Ajinomoto Group and the environment.

Requested improvements • Needs more information on the environmental

management of overseas Group companies.• The scope of the compilation is limited. Should

encompass the entire Group. • No negative information was disclosed. Should

include information from each operation site.

Scope of the Report and Activity Period

Companies subject to Group environmental management

Environmental Report 2002 3

We contribute to significant advances in food, health, and a better quality of life.The Ajinomoto Group’s products are developed and manufactured utilizing high-quality natural materials and the power of nature.We aim to create new values and contribute to a better quality of life, while promoting harmony and symbiosis with nature.

Since the release of the world’s first umami seasoning, AJI-NO-MOTO, or monosodium glutamate (MSG), in 1909, we have pursued unique methods to produce various types of amino acids, the key to umami.Our accumulated knowledge of amino acid production—the processing of natural raw materials such as sugarcane, corn, and cassava into products, using fermentation technology with the power of microbes—has been exploited for diverse busi-ness lines, including seasonings, processed foods, animal nu-trition products, and pharmaceuticals.For the Ajinomoto Group, which bases its business activities on high-quality natural raw materials and the power of nature, symbiosis with the global environment is an overriding man-agement priority.

Pursuing the production methods for amino acids, the key to umami seasoning Food

Business

Seasonings and Processed Foods, Edible Oils, Frozen Foods, Beverages and Dairy Products, and Overseas Foods

Amino AcidsBusiness

Amino Acids and Feed-use Amino Acids, Sweeteners and Specialty Chemicals

Development of Products Suitable for Local People

Pharmaceutical Business Pharmaceuticals

Profile of the Ajinomoto Group

In Harmony with Natural Raw Materials and the Power of Nature

Focusing business operations on varying local lifestyles and

cultures—this sincere concept underlies the Ajinomoto Group’s

global business activities with operational sites in 22 countries

and regions, including Japan. We concentrate on business ac-

tivities closely linked to each region by actively employing local

staff and developing products especially suited to a particular

region while also addressing the effective use of natural resour-

ces in the context of the surrounding natural environment and

characteristics, so that we can significantly contribute to regio-

nal development.

Contribution to product development and use of natural resources based on regional diversity

In Harmony with Regional Diversity on a Global Scale

Developing Regional

Economies

Improving Regional Diet

Job CreationPurchase of Raw Materials

Realizing Resource-recycling

Effective Usage of By-products

Environmental Report 20024

Corporate Outline

Summary of Financial Results

0

100

200

300

400

500

600

700

800

0

5

10

15

20

25

30

35

-15

-10

-5

0

5

10

15

20

Composition of Net Sales by Business Composition of Net Sales by Region

Net Income(Loss)

20022001200019991998

Ajinomoto Co., Inc.

Head Office: 15-1, Kyobashi, 1-chome, Chuo-ku,

Tokyo 104-8315, Japan

Tel: +81-3-5250-8111

Fax: +81-3-5250-8314

URL: http://www.ajinomoto.com

Established: May 20, 1909

Paid-in Capital: ¥79,863 million (As of March 31, 2002)

Number of Employees: 24,326 (consolidated basis)3,789 (non-consolidated basis)(As of March 31, 2002)

Date of Settlement: March 31

Consolidated

Non-Consolidated

Food Products

636.267.4%

Other Businesses

91.69.7%

Americas

56.56.0%

Fine Chemicals

215.722.9%

Europe

82.38.7%

Asia

87.89.3%

Japan

716.776.0%

(Billions of yen) (Billions of yen)

Operating Income, Ordinary Income

20022001200019991998(FY) (FY)

0

200

400

600

800

1,000

Net Sales

20022001200019991998

■ Food Products ■ Fine Chemicals■ Other Businesses

■ Food Products ■ Fine Chemicals■ Other Businesses

(FY)

(Billionsof yen)

0

10

20

30

40

50

60

Operating Income, Ordinary Income

20022001200019991998 (FY)

■ Operating Income■ Ordinary Income

■ Operating Income■ Ordinary Income

(Billionsof yen)

■ Net Income(Loss)● Return on Equity

-20

-10

0

10

20

30

50

40

-2

-4

0

2

4

6

8

10

Net Income(Loss), Return on Equity

(%)

20022001200019991998 (FY)

(Billionsof yen)

20022001200019991998 (FY)

-20

-10

0

10

20

30

40

50

Net Income(Loss) per Share

20022001200019991998 (FY)

(yen)

Net Sales(Billionsof yen)

(Billionsof yen)

(Billionsof yen)

Notes:• Net income, return on equity (ROE),

and net income per share show negative figures due to a special loss generated mainly by lump-sum amortization during FY2000 of the difference in accounting standards concerning allowance for retirement benefits.

• Figures in FY2002 are all predicted values.


Message from the President

The Ajinomoto Group launched a new three-year management plan in FY2002.

By achieving the goals in this plan, we intend to develop into a unique, distinc-

tive company trusted by people around the world, thereby becoming a truly glo-

bal company.

To earn public trust around the world, the Group must not only pursue econom-

ic growth, expanding the overall business scale of the Group, but also actively

fulfill corporate responsibilities for the environment and society as a whole.

In recent years, the impact of human civilization on the environment has over-

whelmed the Earth’s ability to rejuvenate itself, giving rise to a variety of environ-

mental problems on a global scale. These problems are mainly rooted in the

activities of people’s daily lives and ordinary business activities and are therefore

beyond the enforcement of regulatory constraints. In order to effectively con-

front these issues and establish a truly sustainable society where protecting the

environment and encouraging economic growth go hand in hand, all parties

concerned, including governments, corporations and individuals, must funda-

mentally change their patterns of behavior to reduce the burden on the environ-

ment. Furthermore, such measures must be undertaken as soon as possible

and maintained with great vigilance, taking into consideration that even if the

causes are reduced or eliminated, the recovery process from damage already

sustained will take a long time.

The Ajinomoto Group has been implementing a variety of environmental preser-

vation efforts as a corporate obligation, mainly through establishing an environ-

mental management system focusing on reducing the environmental impact

caused by business operations and promoting the recycling of natural resour-

ces, while manufacturing products that ensure consumer safety and security.

Regarding our social responsibility, the Group has concentrated on a wide

range of social endeavors, from research into food culture to promoting health

and education, and has committed to contributing to the communities in re-

gions that we serve as a good corporate citizen.

Without community support and understanding, our economic, environmental

and social endeavors will fundamentally serve no purpose. To fully realize the in-

tended benefits, we must make our activities known to a wider audience and

promote communication with people beyond our own sphere of business and

influence.

We sincerely hope that this Environmental Report will help readers better under-

stand Ajinomoto’s environmental activities. We are committed to improving the

content of each subsequent edition and will honestly and sincerely account for

our actions and responsibilities. Therefore, we welcome feedback from readers

about how we can better meet their requirements in future editions.

November 2002

Kunio EgashiraPresident, Ajinomoto Co., Inc.


Be fully aware of global environmental movements and comply with them in an exact and timely manner.1.We will closely observe international standards and global frameworks as well as the environmental administra-tion and regulations of each country. We will comply with those requirements in an exact and timely manner, adding our own voluntary standards and appropriately implementing our programs.

The Ajinomoto Group operates its businesses in many countries and regions throughout the world in compliance with international rules, depending on products of agriculture, livestock, and fisheries as raw materials. We think and act to-gether with regional people who live in diversified circumstances in terms of climate, politics, culture, religions, laws, and concept of values. We constantly strive for symbiosis or coexistence with nature in order to create a better environment.

Reduce environmental burdens on the earth.We aim to reduce any environmental burden on the global environment caused by our business activities (for example: ozone layer depletion, global warming, acid rain, ocean pollution, desertification, endangered spe-cies, or others).

2.

Save energy and resources through understanding the importance of natural resources.Manufacture of our main product AJI-NO-MOTO and other amino acids is categorized as an energy-intensive industry. Our history of technical development in production processes represents our continuous efforts to-ward energy and resource conservation. We strive every day to curb consumption of energy and resources, emphasizing improvement in productivity and effective utilization of by-products.

3.

Develop new technologies and systems for effective utilization of natural resources and environmental improvement.By reviewing the entire business process from product design to disposal, we will develop not only technolo-gies for effective utilization of waste and by-products, but also production engineering and business systems that ensure higher productivity and less waste generation, and consequently less environmental burdens.

4.

Implement education and training, to provide information, and to cooperate with outside organizations on environmental preservation.We will enhance communication with society by disclosing and providing information on our environmental preservation activities. We will also raise awareness of ecological issues among employees by establishing an efficient system for sharing information and for education across the Group.

5.

Philosophy

Basic Environmental Policies

Ajinomoto Group PhilosophyOur philosophy is to contribute significant advances in Food and Health on a global basis and ultimately

to create a better life for all.

Ajinomoto Group Basic Environmental Policy

Harmonizing the Company’s global activities with the global environment we will continually improve the environment,

and consequently contribute to a better society.

Established in November 1997


1.

2.

3.

4.

Three-year Environment Preservation Plan (1999–2001)

Reviewing and securing observance of current environmental laws and regulations. Planning and managing compliance with new regulations

Establishing and implementing ISO 14001 Environmental Management Systems or their equivalent

Accelerating further waste reduction and energy conservation, bearing “Recycling-oriented Society” in mind

Defining policies on environmental information disclosure to internal/external stakeholders. Publishing environmental reports, environmental site reports, and environmental advertisements

1.

4.

• “Ajinomoto Group Environmental Report” aimed at a wide range of stakeholders has been published annually since FY2000. For the overseas stakeholders, an English-lan-guage version has been published since FY2001.

• An “Ajinomoto Group Environmental Report” digest (Japa-nese edition) was published in 2001 with the title “Our En-vironmental Activities” for general consumers and plant tour visitors.

• We have published environmental reports on the Web site of the Ajinomoto Co., Inc. to provide a wider audience with access to the information. Taking advantage of the benefits of Internet publication, we plan to publish timely and up-to-date information and disclose more detailed information on the Web site.

• We have published environment-related information, such as internal regulations, preservation plans and laws on the corporate Intranet for employees as a means of sharing this information across the total breath of the Group. For the overseas employees, English-language versions are printed in order of decreasing precedence; however, we under-stand that the quantity of the English-language editions is not yet sufficient and we need to accelerate these efforts.

2.

3.Achievements

Reviewing and securing observance of current envir-onmental laws and regulations. Planning and man-aging compliance with new regulations

Defining policies on environmental information disclo-sure to internal/external stakeholders. Publishing en-vironmental reports, environmental site reports, and environmental advertisements

• Waste Disposal and Public Cleansing Law:Observance has been examined through environmental au-dits. Partial insufficiencies were discovered and improve-ments are being addressed.

• Containers and Packaging Recycling Law:A system for ascertaining the number of containers in use was constructed to comply with the law.

• Law Concerning Special Measures against Dioxins:Compliance with this legislation was confirmed at 3 domes-tic plants of Ajinomoto Co., Inc., following analysis of ex-haust gas, wastewater and incinerator ash. Efforts were also made to achieve quantitative targets for voluntary standards that were at stricter levels than the le-gal standards.

• Pollutant Release and Transfer Register (PRTR) Law:Substances subject to the legislation were identified at Aji-nomoto Co., Inc. and domestic subsidiaries.

• Law Concerning Special Measures against PCB WasteThe quantity in possession was identified after examining the materials concerned at Ajinomoto Co., Inc., and do-mestic subsidiaries.

Establishing and implementing ISO14001 Environ-mental Management Systems or their equivalent

• All 3 plants of Ajinomoto Co., Inc. and 9 domestic and overseas subsidiaries acquired ISO 14001 certification. ISO 14001 accreditation activities have been carried out as planned following the determination that manufacturing subsidiaries with “Ajinomoto” in their corporate names should acquire ISO 14001 environmental certification by FY2005.

• The Group environmental audit started in June 1999 and encompassed all operation sites worldwide, completing 52 sites in Japan and 29 overseas sites by the end of 2001. All domestic sites were audited as planned, with only some overseas sites remaining to be examined.

• The number of Environmental Management System (EMS) auditors, the core for promoting auditing of Group activi-ties, must be increased to make the audit more complete. So far, 18 employees have completed the formal training course to become EMS auditors.

• The ratio of both zero emissions and resource recovery of the entire Group both domestically and overseas reached 95% during FY2001, exceeding required targets (93% and 90% respectively by FY2005). These outstanding results were largely attributed to the total elimination of the dispos-al of discharge into the sea by the Kyushu Plant and a de-crease in volume of by-products following a change in pro-duction method and a reduction of waste discharged into the sea by a Peru Plant. However, factors remain in domes-tic subsidiaries that require further improvement.

• 3 Ajinomoto Co., Inc. plants reduced the basic unit of ener-gy consumption by 24% in comparison with the volume in FY1990, exceeding the target (20% reduction by FY2001). This was made possible by improvement in production technology, a change in products composition, and stead-fast efforts to conserve energy.

Accelerating further waste reduction and energy con-servation, bearing “Recycling-oriented Society” in mind


1.

2.

3.

New Three-year Plan (2002–2004)

Construction of a mechanism for realizing Environment-Conscious Management, and its steady operation

Strict management for environmental preservation and reduced environmental burdens

Strengthening corporate brand power from the perspective of the environment

1. Construction of a mechanism for realizing Environment-Conscious Management, and its steady operation

2. Strict management for environmental preservation and reduced environmental burdens

3. Strengthening corporate brand power from the per-spective of the environment

Promotion of product and technology differentiation from an environmental perspective Active disclosure of information such as environmental re-ports, and reinforcement of public relations activities

Goals we aim to achieve by implementing the new three-year plan (2002–2004)

Major Tasks for the New Three-year Plan

1

3

4

2

1

3

2

1

2

Environmental preservation activities can be divided into the follow-ing three stages: Environmental Compliance, in which activities fo-cus on compliance with environmental laws and regulations; Envir-onmental Preservation, where voluntary efforts are made to reduce environmental burdens; and Environment-Conscious Management, in which environmental preservation and management are integra-ted. According to this classification, the activities of the Ajinomoto Group are positioned between Environmental Compliance and En-vironmental Preservation, and not yet at the stage of Environment-Conscious Management. In this context, the Ajinomoto Group, as a whole, intends to achieve the first phase of Environment-Conscious Management during the new three-year plan (2002–2004), while completing full regulatory environmental compliance and establish-ing the complete system for environmental preservation. “Full regulatory environmental compliance” refers to a condition in which all business activities of the entire Group, including overseas subsidiaries, are compliant with laws and regulations, and strict en-vironmental risk management is fully carried out. In Japan, legal regulations have become increasingly strict; for example, a new system of law was enacted for establishing a recycling-oriented so-ciety, and new regulations such as Soil Contamination Control Law have been introduced. The same trends are being seen overseas. During this three-year period, the Group will not only meet these raised requirements but also strive to achieve our own voluntary goals set at higher levels than legally required. Furthermore, we will seek to proactively identify environmental risks in Japan and over-seas, and instigate appropriate countermeasures. “Establishment of a system for environmental preservation” refers to a condition in which a system is established for the entire Ajinomoto Group to reduce impact on the global environment and productive activities are fully implemented. In the past, each operation site or each individual corporation has independently implemented volun-tary efforts to reduce environmental burdens; in the future, how-ever, we all will consolidate and accelerate activities toward envir-onmental preservation, while respecting local initiatives. From this fundamental perspective, we have defined the following major tasks to be implemented during the new three-year plan. We will push these tasks through to completion and realize the Environ-ment-Conscious Management stage, therefore ensuring that our precious planet will be passed on to future generations.

Determination of specific laws and environmental risks, and taking strict measures in response

Implementation of “Ajinomoto Group Medium- and Long-term Environment Tasks”

Construction of an Environment Management System (EMS) and its unwavering operation at headquarters and branch offices of Ajinomoto Co., Inc., and Group companies Establishment of the environmental management standards and observance of the guidelines by the entire Ajinomoto GroupClarification of environmental audit criteria and reinforce-ment of environmental auditsReinforcement of environmental education

Improvement in the following environmental burdens•Reduction in CO2 emissions in view of Life Cycle Assess-ment (LCA)

•Reduction by half in the volume of materials of waste dis-posal

Masayuki HirataCorporate CouncilorGeneral Manager, Environment Department


Environmental ManagementEnvironmental Preservation Activities

The Ajinomoto Group has been actively structuring its environmental management system in compliance with ISO 14001 in order to fulfill environmental regulations based on the Ajinomoto Group Environmental Policy. A “Plan-Do-Check-Act (PDCA)” cycle is adopted to consistently upgrade our management system.

Plan

Do

Check

The Ajinomoto Group

The Board of Directors and Environmental Committee

Group Environmental Audit

The Group works out targets and strategies with the Environmental Committee as the primary mover.

Environmental Department(Secretariat of the

Environmental Committee)

Board of Directors

Environmental Committee

Act

Environmental Management System

In FY2002, the Ajinomoto Group introduced an internal company system to enhance management efficiency through quick decision making and clear delineation of re-sponsibilities. An organizational structure for promoting environ-mental management was adopted to reflect the new system. In the new structure, a Chief Environ-mental Administrator is appointed at each company of the Group as a member of the Environmental Committee to accelerate environ-mental activities of the Company’s business operations.

Activities in FY2002 Renovation of the Environmental Committee after introducing an internal company system

Note: ● Chief Environmental Administrator Environmental Administrator

Organizational StructureActivities by Unit Committees

Products and Packaging Committee

Production Committee

Logistics Committee

Office Committee

Resources and Waste Committee

Activities by Operational Areas

Ajinomoto Co., Inc. R&D Divisions,

Production Divisions, Sales Divisions

Environmental Administrators

Environmental Administrators

Corporate● Environment Department● General Affairs Department● Corporate Planning & Information

Systems Department

● Seasonings & Food Products Company

● Global Foods & Amino Acids Company

● Pharmaceutical Company

● Ajinomoto Frozen Foods Co., Inc.

● Ajinomoto Logistics Corporation

Consolidated Subsidiaries Each Unit Organization (As a general rule)

Individual Companies, Operation Sites, Plants, etc.

Individual Companies, Operation Sites, etc.




Chairperson: Director responsible for environmental management

Members: Chief environmental administrators

Secretariat: Environment DepartmentMeeting Frequency: Twice a year

(As a general rule)

Environmental Committee

Board of Directors

The Environmental Committee was established in accordance with the Environmental Regulations as the Group’s supreme body for environmental issue decision-making. Consisting of the chief executives of each department, the Committee formu-lates environmental strategies and sets up the goals for each fiscal year. The decisions by the Committee are communica-ted through environmental administrators to operation sites and Group companies for execution. Unit committees handle

various common environ-mental issues across multi-ple business fields. The or-ganizational structure was reformed following the intro-duction of an internal com-pany system in FY2002, as shown below.Environmental Committee

Chairperson: Director responsible for environmental management (Vice President since July 2001)

Members: General Managers of each business divisionDirectors responsible for each functional division (management, production, R&D, and sales)

Meeting Frequency: Twice a year (as a general rule)

Group Environmental Audit Team

Domestic and Overseas Manufacturing Subsidiaries, etc.

Ajinomoto Co., Inc. Headquarters and Business Divisions


Six operation sites newly certified.

0

10

20

70

80

30

40

50

60

Overseas Domestic

The Ajinomoto Group Plan for Achieving ISO 14001 Certification

Six operation sites acquired ISO 14001 certifications in FY2001, in addition to 6 operation sites, including 3 plants of Ajinomoto Co., Inc., that were certified in or before FY2000. Our pursuit of accreditation has expanded to encompass the headquarters, branch offices, and research laboratories, as well as the Group’s manufacturing subsidiaries both in Japan and abroad. Approximately 70 operation sites across the Group are committed to achieving certification by 2005. Es-tablishing an environmental management system at the Head-quarters of Ajinomoto Co., Inc., is particularly important, since it bears special responsibility for the important mission of inte-grating the business operations of the entire Ajinomoto Group with environmental activities in order to achieve “Environment-Conscious Management.” In this context, the Headquarters started activities from FY2002 geared toward acquiring certifi-cation at the beginning of FY2003.

FY2002

23

7

16

FY2003

37

9

28

FY2004

40

11

29

FY2005

70

28

42

acquired

12

6

6

Number of operation sites (Accumulated)

The Headquarters of Ajinomoto Co., Inc. began working in May 2002 to earn ISO 14001 certification toward integrating the environmental activities of the en-tire Group to boost the level of activity across the enterprise. With ISO 14001 certification of the headquarters, we will be able to progress from “Pollution Pre-vention” to “Environmental Preservation” and to “Environment-Conscious Man-agement” as well as to galvanize office-related environmental activities, thereby further improving corporate value.

Activities in FY2002 Headquarters started working toward achieving ISO 14001 certification

Activities for ISO 14001 Certification

Operation Sites and Group Companies that have Acquired ISO Certifications (As of August 31, 2002)

FY1998

FY1999

FY2000

FY2001

FY2002

Operation Sites and Group Companies Acquisition Date Certifying Organization

Ajinomoto Co., Inc., Kyushu Plant

Ajinomoto Co., Inc., Tokai Plant

Ajinomoto Frozen Foods Co., Inc., Chubu Plant

Malaysia Packaging Industry Berhad

Ajinomoto Vietnam Co., Ltd.

Ajinomoto Co., Inc., Kawasaki Plant

Ajinomoto General Foods, Inc.*

Ajinomoto Co.,(Thailand) Ltd., Pathum Thani Factory

Ajinomoto Interamericana Industria e Comercio Ltda., Limeira Plant

Lianyungang Ajinomoto Ruyi Foods Co., Ltd.

Lianyungang Ajinomoto Frozen Foods Co., Ltd

Acepackage Co., Ltd.

Tokai Knorr Foods Co., Ltd.

1998. 7.24

1999.11.22

2000. 2. 9

2000. 9.22

2001. 3.22

2001. 3.26

2001. 7.26

2001. 9.27

2001.12.28

2002. 2.13

2002. 2.13

2002. 3.25

2002. 8. 2

JQA: Japan Quality Assurance Organization

SGS: Societe Generale de Surveillance


SIRIM QAS: Standards and Industrial Research Institute of Malaysia Quality Assurance System

BVQI: Bureau Veritas Quality International

JCQA: Japan Chemical Quality Assurance Co., Ltd.

LRQA: Lloyd’s Register Quality Assurance

SGS UK: Societe Generale de Surveillance United Kingdom

SGS ICS: Societe Generale de Surveillance International Certification Service

SGS Switzerland: Societe Generale de Surveillance Switzerland

SGS Switzerland: Societe Generale de Surveillance Switzerland

JCQA: Japan Chemical Quality Assurance Co., Ltd.


Kick-off meeting attended mainly by members of the Board of Directors and heads of unit organizations

*Acquired comprehensive multi-site accreditation for all plants and operation sites



Environmental AuditThe Ajinomoto Group is monitoring the status of compliance with the Basic Environmental Policy and implementation progress at each operation site under the Triple Audit System, positioning an Environmental Audit as the central pillar to environmental management.The Triple Audit System consists of a Third Party Assessment performed by an independent auditing company, a Group Environmental Audit carried out mainly by the Headquarters’ Environment Department for the Ajinomoto Group, and an In-house Audit implemented by each operation site.

Basic Environmental Policy

Formulation of Group Environmental Goals

Formulation of Annual Goal of Each Business/Operation Site

Implementation

Review

1. External Environmental

Audit

2. Group Environmental

Audit

3. Internal Environmental

Audit

Compliance with Environmental Regulations (Execution of PDCA cycle activities)Observance of the laws concerning waste and its management system(Management of contracts and manifests, identification of volume and type of waste, and quantitative goals for waste reduction)Compliance with and preparation for new regulationsManagement of chemical substancesConsideration of neighboring environment

1

2

3

4

5

Major Audited Criteria

Auditing 47 sites using 58 man-days

Group Environmental Audit

Achievements of the Group Environmental Audit Major Inadequacies Found

Plants, research laboratories of Ajinomoto Co., Inc.

Plants and other manufacturing operation sites of domestic Group companies

Items requiring attention in some sites (Material or representative items only)

Clarification of the management system and the delineation of the boundaries of responsibilities are re-quired to enhance effectiveness and efficiency in implementing environmental management and envir-onmental targets.More concrete, quantitative targets should be set concerning waste reduction and energy conservation.

Stricter management is called for regarding the appropriate disposal of waste, etc. (For example, complete compliance with the revised rules of the manifest system)Environmental targets of the Ajinomoto Group are not fully reflected.

Plants and other manufacturing operation sites of overseas Group companies

A system is needed by which information on environmental management (including the Environmental Committee’s policy) can fully permeate the organization.Stricter management is demanded to identify types, quantities and characteristics of waste. Resource Recycling activities should be accelerated with specific targets.

Sales and logistics departments of Ajinomoto Co., Inc. and other domestic Group companies

The Environmental Management System and appropriate parameters need to be reinforced and maintained.Stricter management is required concerning appropriate disposal of waste (including complete compliance with the revised rules of the manifest system).The boundary of responsibilities should be clarified concerning contract-based operations. Restruc-turing of the system is required. (Contracts for storage operation or disposal of waste products)The status of waste generated by the sites, especially waste products, should be examined and ana-lyzed far more than before, and measures to reduce the volume of waste should be actively pursued.

A Group Environmental Audit was carried out during FY2001 at 47 sites, including Group companies and operation sites in Ja-pan and abroad, at a 58 man-day* commitment of resources. With a slight change in schedule for auditing overseas Group companies in the wake of the September 11 terrorist attacks in the U.S., the audit was implemented nearly as planned. During the audits, issues requiring improvement were found at several sites. Along with the discovery that the sales and log-istics sections had less environmental activity experience than

the manufacturing and plant sections, several other factors that required attention were discussed at the Environmental Committee. Each company or its branch office has the re-sponsibility to take remedial steps, and improvement proces-ses will undergo continual monitoring along with a Group En-vironmental Audit in the following year. * A man-day is a unit of resource expenditure, representing the equivalent of a full day of work by one person.

Number of AuditedOperation Sites

Domestic Overseas

ExecutionMonth

Total Man-days

Departments(Including operation sites)

April 2001

May 2001

June 2001

August 2001

December 2001

February 2002

0

11

4

6

2

10

3

0

0

0

0

11

6

9

10

6

4

23

•

•••

••

••••



Since its inauguration in 1999, a Group Environmental Audit has been performed once every two years for domestic operation sites and once every three years for overseas sites, with the first round of audits for nearly all sites completed in FY2001. For Group Audit activities in FY2002, the system was revamped in light of the introduction of an internal company system and the need for reinforcing the Group’s governance. Under the upgraded system, operation sites subject to the audit were redefined in accordance with their business and actual environmental impact caused

by their business activities. Furthermore, more frequent audits were per-formed for operation sites that required significant improvement, irrespec-tive of their location in Japan or abroad. Looking ahead, the Group will link the Group Environmental Audit with other types of Group audits (including the operation audit by the Internal Audit Department and quality assurance audits) performed by the respec-tive related corporate staff department, to enhance both the effectiveness and the efficiency of Group management.

System revamping including audit frequency increaseActivities in FY2002

An audit and inspection were carried out as scheduled and guidance was provided to operation sites

Internal Audit and Third Party Inspection

An internal audit in compliance with ISO 14001 is performed in Group compa-nies and business sites that were accredited with ISO 14001 or those prepar-ing for achieving such certification, at a frequency of once every six months or one year in accordance with the rules of certifying organizations. Issues found by the audit and inspection are pointed out at each operation site and recom-mendations are incorporated into the continuous improvement process. During this fiscal year, a third-party inspection (audit to renew and maintain ISO certification) by ISO 14001 certifying organizations was performed not only for Group companies and operation sites applying for ISO certification for the first time, but also for those that had already been certified within a given timeframe, with the result that the certification granted to each was renewed.

Training personnel as the core driving force for Environment-Conscious ManagementHighly qualified auditors who serve as the core driving force for en-vironmental management are required to make the Group Environ-mental Audit more effective. To this end, the Ajinomoto Group is fo-cusing on increasing the number of auditors who have completed the formal EMS auditor-training course. We also plan to ensure that internal auditors at each operation site are provided with systematic training by preparing standardized educational materials across the Group, to further reinforce their key role as the primary drivers of En-vironment-Conscious Management.During FY2001, the number of internal auditors increased by more than 100, far exceeding the target.

Auditor Training Plan

Internal audit performed at the Kawasaki Plant of Ajinomoto Co., Inc.

Internal Auditor Training Course

Auditor Training (Ajinomoto Co., Inc. and domestic subsidiaries)

Number of employees who completed the formal EMS auditor-training course

Number of employees who completed the internal auditor-training course

265

37

34

819

663

556

7

2,169

6

55

Pollution Control Manager

Energy Manager

Technical Controller of Waste Disposal FacilitiesController of Specially Controlled Industrial Wastes

Operation Chief for Handling Specified Chemical Substances, etc.

Operation Chief for Handling Organic Solvent

High-pressure Gas Production Safety ManagerHigh-pressure Gas Refrigeration Safety Manager

Controller of Hazardous Materials

Specified High-pressure Gas Production Safety Manager

Certified Environmental Measurer

Working Environment Measurement Expert

Number of Legally Qualified Personnel in Environment-related Fields (In plants, laboratories, and centers of Ajinomoto Co., Inc.)

Type of qualification Number of legally qualified personnel

2004 (Projected)

50

300

As of July 2002

18

235


The companies of the Ajinomoto Group are obliged to assess environmental impact whenever they plan to establish plants or laboratories, expand production capacity, or initiate new research. Furthermore, an Environmentally Friendly Container and Packaging Assessment is performed during the development of new Ajinomoto brand products as well as during the improvement of existing products.

Environmental Assessment

The entire Group is assessed in accordance with the new system

Environmental Assessment Related to Business

The companies of the Ajinomoto Group are required to evaluate environmental im-pact whenever they plan to establish plants or laboratories, expand production capacity, change production processes, or initiate new research. For important management issues and significant investments, the Headquarters of Ajinomoto Co., Inc. carries out assessments in addition to that undertaken by each Group company. The procedures of environmental impact evaluation/assessment related to pro-duction and research activities were reinforced and restructured during FY2000, under the principle that it is compulsory for a department of Ajinomoto Co., Inc. re-sponsible for proposing such activities, to implement its own assessment. In FY2001, all projects concerned were assessed in accordance with the new sys-tem. (For the details of the system reform in FY2000, please refer to p18 of the En-vironmental Report 2001.)

During FY2002, 14 projects that contained significant material issues concerning environmental preservation were discussed at the Deliberation Panel comprising the Environment Department and an expert panel members in addition to an assess-ment by a department of Ajinomoto Co., Inc., responsible for proposing the pro-jects. Opinions of the panel were reflected in the implementation of those projects.

Details of Environmental Impact Evaluation by the Group Achievements

Increase in production, changes in production processes,

initiation of R&D projects

Large investment and/or important issues of interest to

Group management

Environmental impact evaluation assessment by each operation site

Assessment by Ajinomoto Co., Inc. (as the representative of the entire Group)

Regulations of individual sites

Environmental Impact Items to be Evaluated Assessment Points

Compliance + voluntarily preemptive and preventive measuresLocal criteria and international criteriaTechnology, facilities, and system + mecha-nism of management operationRelationship with communities and stake-holdersRelationship with parties concerned, up-stream and downstream, concerning the life cycles of products and servicesPositive environmental aspects

Seven typical kinds of pollutionAir pollution, water pollution, noise, vibra-tion, odor, soil and groundwater pollu-tion, and ground subsidence Global environmental issuesGlobal warming, depletion of the ozone lay-er, acid rain, marine contamination, etc.Chemical substancesWasteEffective use of resources and by-products

29 projects

Number of Projects Assessed by the Department of

Ajinomoto Co., Inc. Responsible for Proposing Projects

Major Projects Reviewed by

the Deliberation Panel

Actions Recommended by the

Deliberation Panel

Establishment or expansion of plants and promotion of effec-tive use of resources of over-seas Group companiesExpansion of plants and change in production processes of do-mestic Group companiesIntroduction of new technology to a domestic plant of Ajinomoto Co., Inc.

Note: A great number of environmental impact evaluations/assessments were carried out at the operation site level. The list of achievements focuses on issues concerning corporate governance.

The results of environmental impact evaluation/assessment made during FY2001 were discussed at the Environmental Committee held in October 2001 and March 2002. Consequently, the consensus view of the Committee was that while the operation of the system was taking root, further improvement was needed. As a result, the system

was revamped to emphasize assessment from the perspective of Group management since FY2002. During the revamping process, special consideration was also given to the implications of introducing the internal company system and reinforcement of Group governance. The recommended system changes are now fully operational.

System renovation based on reviews by the Environmental Committee

Expanded scope of operations subject to environmental impact evaluation/assessment• Examples of projects

Production, research• Plant construction or expansion, change in production

processes, etc.

All business activities• Commencement of new business• Fixed assets, capital investment • Disposal of inventory assets (contamination, waste, etc.) • Change in sales policy, product and packaging (resources, waste, etc.)

Reinforcement of corporate governance• Procedures

[Required]• Self-assessment by the department proposing projects

[Optional]• Deliberation and instruction by the Deliberation Panel • The Environment Department was not designated

as a consulting party.

FY2001 SystemRevised Items System for FY2002 and Onward

[Required]• Self-assessment by the department proposing a project

[Required, where significant environmental impact exists]• Deliberation and instruction by the Environment Department and

technical experts• Consultation with the Environment Department

Activities in FY2002

Regulations of the Ajinomoto Group


• •• Reinforcement of risk

managementPromotion of volun-tarily preemptive pre-ventive measures as well as regulatory compliance

••

•

•

••••

•

•

•••

Number of projects reviewed by the

Deliberation Panel14 projects


We are revising Eco-Index, incorporating factors of Life Cycle Assessment (LCA) into assessment items. The new Eco-Index will be ready before the end of FY2002. We will also fully and fundamentally reinforce the system

by ensuring that the assessment of containers and packaging is per-formed at the initial stage of material selection whenever new products are developed or containers and packaging are redesigned.

Launching a new assessment approach incorporating LCAFY2002 Activities

The Eco-Index for Containers and Packaging

Achievements

Evaluation PointsFor household use For industrial use

Evaluation Item

Environmental Assessment as part of the Quality Assessment of Newly Developed Products

Environmental Assessment of Containers and Packaging

Environmentally Friendly Containers and Packaging Assessment is being per-formed as part of the Quality Assessment of Newly Developed Products that is completed when an Ajinomoto brand product is developed or an existing product is redesigned. Since 1991, the assessments have been conducted in accordance with criteria of the Eco-Index for Containers and Packaging, a quantitative evaluation method defined by Eco-Guidelines for Containers and Packaging, using diverse assessment items that are mainly divided into four categories: efficient use of resources, recycle adaptability, disposal suitability, and labeling. During FY2001, the assessment was also carried out to check whether identification marks are compliant with the law and that material labels satisfy the criteria of the Ajinomoto Group.

Efficient use of resources

Recycle adaptability

Disposal suitability

Labeling and others

Special assessment item

Other comments

Volume of disposed packaging materials

Usage of recycled materials

Adaptability to recycling systems

Adaptability to separate waste collection

Heat generation when incinerated

Reduction in volume for disposal

Environmental labeling

Improvement efforts to differentiate products

Use-by date and availability of refill products

Over

40 13

Weight ratio of a disposed container to the product content.

Amount of recycled materials used for packaging.

Whether materials used are adaptable to the existing or planned recycling systems.

Whether recyclable portions can be easily segregated for separate waste collection.

Amount of heat generation per unit weight of a container and packaging.

Whether the volume of a container and packaging can be reduced after use for easy collection.

Whether useful information for environmental preservation is offered in addition to the standard display required by laws.

Whether environmental compliance is improved and whether it is superior to that of the previous types or goods of competitors.

Whether a product is excessively packaged.How many layers of packaging used.

Whether any efforts other than those mentioned above have been made to exhibit corporate attitudes con-cerning environmental protection activities.What improvements are made compared to the previous types or goods of competitors.

Whether a container or packaging is really superior in other functions when the assessment point is low.What measures should be taken.

Length of the period between opening and disposal of a container.Whether a refill product is available for reuse as a container.

Same as left. Outer packaging and buffer packag-ing materials should also be considered.

Number of Items Assessed For Household Use For Industrial Use Details of Assessment (Examples)

[Examples of compliance with environmental policies and procedures]Thickness reduction of materials and weight and size reduction of containers and packaging

[Examples of issues that need improvement]Omissions of identification marks and insufficient descriptions of material details required by the Ajinomoto Group criteria: 5 instances

Note: Ajinomoto Oil Mills Co., Inc., and Ajinomoto Frozen Foods Co., Inc., have their own assessment systems. Therefore, the above figures do not include instances of these two companies.

Raw Materials/Production method

Production process

Products

Label display

Check items

Eco-Index for Containers and Packaging

Environmentally Friendly Containers and Packaging Assessment

● Efficient use of resources● Recycle adaptability● Disposal suitability● Labeling

Quality Assessment for Newly Developed Products

Packaging materials

Regarding environmental compliance


The technology of producing amino acids using the fermentation processes is a core technology of the Ajinomoto Group. During this technology development, it plays a significant role in the responsible use of natural resources and environmental improvement, while at the same time achieving high quality, low cost, and stable supply.

Technological Development

Environmental training is incorporated in the standard training courses for new recruits, new cadres, and staff to be assigned to overseas posts, etc. Trainees learn about the environmental activities of the Ajinomoto Group as well as global environmental issues, corporate social responsibilities, and individual social roles. At each plant, we provide employees with special training related to environmental risks and labor safety, and periodically conduct emergency training and drills.In addition, the Intranet is designed to support learning about environmental issues utilizing data published on the Web, including Basic Environmental Policy, environmental regulations and plans as well as documents for use by the Environmental Committee, and useful information about laws.

Employee Training

Major R&D

Aiming at effective utilization of natural resources in line with regional characteristicsSince more than 20 years ago, Ajinomoto Group fermentation plants located throughout the world have been practicing a re-source-recycling system, in which by-products of fermentation are processed into organic nitrogen fertilizer, which is used to grow raw materials such as sugarcane for fermentation.Currently, the technology of producing amino acids with a fer-mentation process is being developed at overseas technology centers located in five main production bases (Thailand, Indo-nesia, the U.S., Brazil, and France) as well as at R&D depart-

ments in Japan. The overseas technology centers proceed with technological development giving consideration to the natural characteristics of each region, including raw materials and effective use of by-products, and some carry out joint de-velopment in conjunction with research institutions in each country. The technological outcomes thus obtained are actively introduced to each plant of the Group throughout the world, and some are announced at academic conferences organized by Japan Society for Tropical Agriculture or other symposia.

Assessment of liquid fertilizer with regard to its effect as fertilizer and its environmental impact (Thailand)

Examples of Environmental Education

TimeTarget DetailsExecution Period

April

August orSeptember

June

Twice a year

1 hour

2 hours

3 hours

1 hour lecture + half-day

on-site trainingNew recruits training

• Introduction of the development process and microbes for highly efficient produc-tion using bio-technology

• Development of technologies for processing by-products into solid fertilizer or us-ing them for other agricultural purposes

• Research for expanding applications of liquid fertilizer (produced from fermentation by-products that are otherwise unutilized) and assessment of durable effects (ef-fect as fertilizer, environmental impact, etc.)


New recruits

Staff assigned to overseas work (prior to being dispatched)

Cadres of overseas corporations and local staff

New cadres

Introductory education about comprehensive global environ-mental problems, corporate social responsibilities, and envir-onmental management of Ajinomoto Co., Inc.

About environmental management

Training including workshops about Group envir-onmental management and risk management

Ajinomoto Group management philosophy and environmental policy, Group environmental man-agement, on-site training for environmental pres-ervation of facilities and technologies


Ajinomoto Co., Inc. has annually aggregated environmental costs since 1992. Recognizing that environmental accounting is an effective tool for promoting environmental management, we began to aggregate the accounts of three plants of Ajinomoto Co., Inc., on a pilot basis last year, and then expanded the accounting system to encompass all operation sites of Ajinomoto Co., Inc. in this year’s report.In the future, we will extend this accounting approach to our subsidiaries both in Japan and overseas.

Environmental Accounting

The costs and effects of environmental operation are accounted for using the Environ-mental Accounting Guidelines 2002 edition published by Japan’s Ministry of the Envir-onment. However, the economic benefit, which is internally controlled by us, is limited to actual, measurable performance. “The deemed or incidental effects” based on esti-mation, therefore, are not considered. 1. Accounting scope: All operation sites of Ajinomoto Co., Inc. (Headquarters, branch

offices, Kawasaki Plant, Tokai Plant, Kyushu Plant, laboratories, and centers)2. Accounting period: April 1, 2001-March 31, 2002

3. Accounting method(1) Only the costs of the operation departments that are directly associated with environmental

conservation activities, the general affairs departments and departments providing environ-mental technological support are taken into consideration.

(2) Including investments solely for environmental purposes.(3) Depreciation of the financial accounting was adopted.(4) Including the total amount of green purchasing.(5) Accounting for actual savings in real terms from energy conservation.(6) “Other Cost” is provided in addition to environmental conservation-related items to indicate

the cost of waste products.

Basic Policy of Environmental Accounting

Environmental Conservation Costs

Environmental Conservation Performance

Investment and R&D cost Other Costs

Business area costs

Upstream/downstream costs

Management activity costs

R&D costs

Social activity costs

Environmental damage costs

Cost Category

Item InvestmentMajor Purpose Expenditure

0

Investment

207,652

109,114

30,271

68,267

0

0

0

0

1,095

Major Purpose

Total cost of products that were disposed of due to return or damageCost of waste products

Item

2,700,640

Expenditure

3,912,229

1,892,499

0

2,019,730

0

360,412

512,511

5,170

473,160

Item Details Amount

12,386,802

21,042,901

Total amount of investment during the term

Total amount of R&D cost during the term

Plant Investment

Laboratories and Plants

FY2001Item

Unit: thousands of yen

Unit: tons

Economic Benefit Accompanying Environmental Preservation Measures

Revenue from recycling 248,397

288,757

0

Cost reduction from energy conservation

Cost reduction from recycling waste

AmountImpact of Various Efforts


Unit: thousands of yenUnit: thousands of yen

Investment Total 208,747 Expenditure Total 5,263,482

137,000

101,000

115,084 5,570 7,458

310 1,415

81,576

319

130,000

100,000

106,716 5,455 7,644

362 1,126

71,728

322

–7,000

–1,000

–8,368 –115 186

52 –289

–9,848

3

–5%

–1%

–7%–2%2%

17%–20%

–12%

1%

FY2000

Environmental conservation cost to curb environmental impact caused by production and service activities in the business areas

Cost to curb environmental impacts caused by production and service activities both upstream and downstream

1) Pollution prevention cost

Environmental conservation cost in management activities

Environmental conservation cost in R&D activities

Environmental conservation cost in social activities

Cost caused by environmental damage

2) Global environmental conservation cost

3) Resource circulation cost

Investment: Activated sludge in plants, incinerators, energy conservation facilities

Cost: Cost for product disposal

Cost incurred in branch offices for the transfer of waste products

Activated sludge at the Kawasaki, Tokai, and Kyushu Plants and incinerators

Cost incurred in department responsible for environmental preservation

Cost for developing environmental technology

Events and nature conservation

Not applicable

Energy conservation facilities

Works to process by-products into fertilizer (Kyushu)

Energy consumption (crude oil equivalent)

CO2 emissions (carbon equivalent)

Waste: Recovered resourcesInternal disposalExternal disposal

Air pollution prevention: NOx emissionsSOx emissions

Collected steam

Collected ammonia water (19%)

Year-on-Year Increase/Decrease

Rate of Increase/Decrease

Record of Achievements

Energy and Resources Consumption

Aggregation ScopeDomestic: Ajinomoto Co., Inc.*

Consolidated manufacturing subsidiaries, etc.

Overseas: 27 plants producing seasonings, amino acids, or pharmaceutical intermediates, etc.

* Ajinomoto Co., Inc., p18-27 refers to its three major plants in Japan.

Aggregation PeriodOne year (April 1, 2001-March 31, 2002)

INPUT

The Ajinomoto Group analyzes the environmental load generated by all business activities in order to efficiently reduce it.We strive to accurately grasp the underlying causes of the environmental load from the perspective of both inputs and outputs and work to systematically reduce the burden on the environment.

Analysis of the Environmental Load

ElectricityGas

Heavy oilEnergy

600

2,090

Main materialsSub-materialsContainer and

packaging materials

RawMaterials

Tap waterIndustrial water

River water for coolingGround water and others

WaterDomestic

Overseas

Domestic

Overseas

Domestic

Overseas

Effective use of the entire bonitoTechnology Center for Bonito Processing (KGK Co., Ltd.)

During production of seasonings and amino acids through fermentation processes, steam is required for sterilizing raw materials and equipment, for condensing the processing solution, and for isolating or refining crys-tals. Water is also used for cooling and washing. Thus, we make use of a large volume of both energy and water.

Reduction of large-volume water and energy usageTasks

We use dried bonito as a major raw material for producing our seasoning Hon-Dashi Katsuoda-shi. During processing, we formerly used nearly half of each bonito for edible products, utilizing the other half, including the head, bones, and entrails as raw materials for feed or fertilizer. With an eye toward more effectively using the portion previously used only for feed or fertilizer, we es-tablished the Technology Center for Bonito Processing in May 1997 as a joint venture with Yana-giya Honten Co., Ltd., a leading dried-bonito manufacturer. Since then, the center has worked to discover the best processing method for utilizing the entire bonito in edible products. In Fall 2002, the technological efforts resulted in two new products now on the market. Calcium-Kyoka (re-inforced) Hon-Dashi Katsuodashi utilizes the calcium-rich center bones of the bonito, while Katsuo-Marugo-to-Shiyo (uses the entire bonito) Katsuodashi contains an ingredient of bonito umami, a seasoning produced by fermenting the head and entrails.

Example

thousandtons

thousandtons

88,000

114,000

thousandtons

thousandtons

200 thousandtons

thousandtons

(crude oil equivalent)

(crude oil equivalent)470

Environmental Preservation Activities


Output of Products and Commercialized By-products

Discharge of Environmental Load

OUTPUT

In fermentation plants, large quantities of mother liquor (the liquid remaining after the main products are extracted from fermented broth) are generated as a by-product. Effective utilization of this mother liquor has long represented a significant challenge, requir-ing unceasing efforts to find solutions. Currently, the mother liquor is being processed and sold as organic nitrogen fertilizers. In over-seas markets, demand for liquid fertilizers is strong, and as a result, commercialized by-product production is more than twice that of main products. Output of carbon dioxide, mainly discharged from fuel combustion in the Ajinomoto Group both in Japan and overseas, totals approx-imately 600 thousand tons (carbon equivalent). The Ajinomoto Group now faces the responsibilities to promote more efficient en-ergy use and to apply more environmentally friendly energy.

Products Domestic

Overseas

Amount produced

Commercialized By-products

Domestic

Overseas

Amount produced

To Air CO2 (carbon equivalent)

CO2 (carbonequivalent)

Total water discharged

Waste and Others

Unsalable products4,150t

Waste foods19,810t

Recycling of Sweet Corn LeavingsHokkaido Knorr Foods Co., Ltd.

Effective use of by-products and efficient use of energyTasks

Foodrecycling rate

80%

RecyclableAmount19,180t

Foods forRecycling23,960t

Hokkaido Knorr Foods Co., Ltd., a producer of sweet corn powder as the main ingredient of corn soup, is processing sweet corn leavings generated by production processes using the following two methods for effective use and recycling. Stems and leaves left after female ears of corn (having a husk) are reaped during the harvest season and are harrowed into soil as organic fertilizer (green manure). Unnecessary portions such as the husk, stem and cob are generated during plant processing, a sequence of proce-dures that produce corn powder from the corn delivered to the plant, including hulling, selection, washing, threshing, triturating, heating, fine grinding and drying. After being crushed outside the plant, these by-products are delivered to more than twenty designated ranches, where they are stored for a specified term and then used for cattle feed. Spe-cial consideration is given to moisture content before delivery to ensure that the product is suitably dry for use as feed at the ranches.

Example

530720

thousandtons

thousandtons

140450

thousandtons

thousandtons

88,000107,000

thousandtons

thousandtons

15090

thousandtons

thousandtons

151,490

thousandtons

thousandtons

Total volume generated

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas



Record of AchievementsEnvironmental Preservation Activities

The Ajinomoto Group targets a “zero emissions” plan to reduce external disposal of waste as much as possible by fully utilizing by-products and waste generated through business activities or by carrying out appropriate disposal within Group facilities. To achieve our objectives, we established quantitative goals; namely, zero emissions achievement ratio and resource recovery ratio.

M a j o r R e p o r t I s s u e s

0

50

200

100

150

0

25

100

50

75

%

%

Unit: thousands of tons

Unit: thousands of tons%Unit: thousands of tons

Zero Emissions Activities

● Ajinomoto Co., Inc. demonstrates steady achievement. ● Domestic subsidiaries failed to make extensive im-

provement due to insufficient implementation of pro-grams. However, we will fully concentrate on these activities to improve performance.

● Starting this fiscal year, we have disclosed data about our overseas subsidiaries. Those overseas subsidiar-ies have generally demonstrated a high resource re-

covery ratio because they must consider resource re-covery from the point of selecting the plant site. It is noteworthy that our progress toward our zero emis-sions goal has drastically improved in our Peru Plant following a reduction in the volume of by-products as a result of changing the production method and re-ducing the volume of discharge into the sea (sched-uled to be completely stopped within FY2002).

Achievement Records toward Zero Emissions

Ajinomoto Co., Inc.

Domestic subsidiaries Overseas subsidiaries (27 plants*)

0

10

40

20

30

0

25

100

50

75

0

500

2,000

1,000

1,500

0

25

100

50

75

Zero emissions achievement ratio

Resource recovery ratio

Volume of recovered resources

Volume of waste generated

Volume of waste disposed by external organizations

FY2000 FY2001

94

85

9696

1,982

1,674

122

1,645

1,578

68

FY1999 FY2000 FY2001

66

66

67

66

76

74

32

21

11

38

25

12

38

28

9

FY1997

171

65

59

10161

FY1998

72

65

161104

45

FY1999

91

82

138113

12

FY2000

94

90

128115

7

FY2001

93

89

120107

8

Plan

2005

2010

FY Zero Emissions Achievement Ratio

Resource Recovery Ratio

93%

99%

90%

95%

Concept of Zero Emissions Achievement Ratio and Resource Recovery Ratio

Internal

External

By-products Wastes

Waste generated

Operation SiteZero emissions achievement ratio (weight %)

Resource recovery ratio (weight %)

100Production activities

Resource recovery

Resource recovery

Disposal

Disposal

DisposalRaw materials Products

Waste generated

Waste generated

*27 plants producing seasonings, amino acids, pharmaceutical intermediates, etc.

Resource recovery

Resource recovery

100


This location has established a system for recycling thermal materials, in which waste packaging films previously used for reclamation are now utilized as fuel in the cement plants of Tokuyama Co., Ltd. In addition, residual ash is used as a cement additive. Consequently, they have succeeded in effectively using 100 tons of films per year. They are also actively pur-suing the effective use of recovered re-sources, including the use of all edible-oil waste as raw material for soap.

The Kawasaki Plant of Ajinomoto Co., Inc. controls the separation of waste prior to recycling or disposal. The company is exercising special care to correctly separate all items by displaying actual waste products and presentation panels in waste storage areas that clarify potential areas of confusion and give examples of incorrectly separated waste. They have also prepared a variety of tools necessary for disassembling goods for separation.

Example Control over waste separationAjinomoto Co., Inc., Kawasaki Plant

Breakdown of Waste and Recovered Resources

Liquid By-product

Sludge

Waste Oils

Waste Plastics

Waste Containers

Burnt Residues

Animal and Plant Residues

Wastepaper

Waste Wood

Waste Fibers

Waste Metals

Others

Total

Ajinomoto Co., Inc.Volume of waste generated Volume of recovered resources Volume of waste generated Volume of recovered resources Volume of waste generated Volume of recovered resources


Unit: tons

Details of Waste Disposal

Volume of all generated waste: 1,803 thousand tons

Volume of recovered resources: 1,713 thousand tons

Volume of recovered resources: 1,713 thousand tons

Volume of waste disposal: 90 thousand tons

Volume of waste disposal: 90 thousand tons

Processed into fertilizer: 89%

Heat recovery: 2%

Discharge to the sea:

17%

Reclamation: 32%

Raw materials, etc.: 9%

Incineration: 51%

30,535

78,894

3,339

383

308

1,748

1,605

837

310

0

1,288

566

119,813

28,171

71,600

3,099

202

304

365

740

779

80

0

1,182

195

106,717

292

6,331

1,581

3,622

614

25

18,898

4,252

124

37

581

1,798

38,155

36

4,745

1,195

2,247

597

0

16,362

2,576

8

0

528

99

28,393

1,322,482

289,141

1,357

1,833

250

0

353

0

0

0

0

19,421

1,644,837

1,316,748

250,572

1,357

1,833

250

0

353

0

0

0

0

6,635

1,577,748

Recycling of thermal materialsAjinomoto Packaging Inc., Kansai Head Office

*27 plants producing seasonings, amino acids, pharmaceutical intermediates, etc.

Example

Waste pakaging films Waste storage area


Consuming large amount of energy for the production of seasonings and amino acids, the Ajinomoto Group considers energy conservation to be a crucial issue. Since the oil crisis in 1973, we have concentrated our efforts on this issue to accomplish significant improvements. We are continuing to push forward with energy conservation through advances and improvements in fermentation technology.

0

50

200

100

150

0

25

100

50

75

FY1997 FY1998 FY1999 FY2001FY2000

Index of unit energy consumption

Index of unit energy consumptionIndex of unit energy consumption


Unit: thousands of tons Unit: thousands of tons

Energy Conservation Activities

Energy Consumption (Crude oil equivalent)

Ajinomoto Co., Inc.


FY1990

0

100

50

25

75

0

25

50

75

100

FY2001FY20000

125

500

250

375

0

25

100

50

75

FY2001FY2000

81 78

159 142 142 142 137 130

468435

101100 10092

100

77 78

79 84

76


Employment of high-efficiency fluorescent lamps

Boilers that provide steam for plant operations need periodic blow-offs* to maintain the concentration of silica in the boiler water within safe levels for operation. However, blow-off reduces the heat efficiency of the boi-lers. Therefore, we installed floatation equip-ment to reduce the amount of silica in the boiler water, thereby reducing the volume of blow-off and improving heat efficiency.*Blow-off: discharging a portion of the heated wa-

ter in a boiler and refilling the boiler with fresh water

Several plants, including the Kawasaki and Tokai Plants of Ajinomoto Co., Inc. and the Kanto Plant of Ajinomoto Frozen Foods Co., Inc., in-stalled high-efficiency fluorescent lamps that consume less electricity, while providing the same brightness as conventional lamps, to replace old lamps for lighting of new buildings, in order to reduce electric power consumption.

Example Improvement of boiler heat efficiency Example

Index of unit energy consumption*(Index using unit energy consumption in FY1990 as 100)

Volume of energy consumption in crude oil equivalent

* Unit energy consumption: Energy consumption per production cost amount

Ajinomoto Co., Inc.






* Unit energy consumption: Energy consumption per production volume amount

Domestic subsidiaries

Overseas subsidiaries

* 22 major plants producing seasonings or amino acids

Floatation equipment


● Ajinomoto Co., Inc. has achieved some improvement in the course of restructuring production items.

● From this fiscal year, data on subsidiaries both in Ja-pan and abroad has been disclosed.

● From this fiscal year, the energy consumption for log-istics and storage was added to the data on domestic subsidiaries, and the previous year’s figures were ad-justed accordingly. Since the unit energy consump-

tion of those domestic subsidiaries increased slightly compared to the previous year, we need to make a special effort to improve results.

● With the increase in production, energy consumption of overseas subsidiaries has risen. However, the unit energy consumption improved due mainly to improve-ment in production technology.


Index of unit energy consumption

Index of unit energy consumptionIndex of unit energy consumption



Status of Energy Resources Used by Overseas Plants

Overseas subsidiaries (22 plants*)

Ajinomoto Co., Inc. originally aimed to cut average annual CO2 emissions within the period FY2008 to FY2012 by 6% from FY1990 levels, in line with COP6 (the Kyoto Protocol). However, since the original goal has already been achieved, further improvement goals have been introduced. With the advance of global management, CO2 emissions are expected to increase throughout the world, and therefore we will make every effort to achieve our new targets.

CO2 Emissions Reduction Activities

CO2 Emissions (Carbon equivalent)

0

30

60

120

90

0

25

100

50

75

FY1997 FY1998 FY1999 FY2001FY2000

Ajinomoto Co., Inc.

FY1990

0

125

500

250

375

0

25

100

50

75

FY2001FY2000

The majority of energy resources are used to generate steam for the production of seasonings and amino acids. The consumption of energy resources including fuel oil, coal, gas and electricity grew 8% on a year-on-year basis, mainly reflecting an overall increase in production. Production in China, in particular, increased so strong-ly that coal consumption grew 23%, elevating the Group’s total en-ergy consumption. We will need to continue our efforts toward overall energy conser-vation and to promote clean energy in our Chinese plants.

Fuel Oil 35%

Fuel Oil 35% Gas 22% Electricity 21% Coal 20%

Non-fossil fuels 2%

Non-fossil fuels 2%

Gas 21% Electricity 20% Coal 22%

FY2000

FY2001

440,000t (crude oil

equivalent)

470,000t (crude oil

equivalent)

Increase by 8%

Notes:1) 11.56 Gcal/t is used. 2) The aggregate is a total of 22 major plants producing seasonings or amino acids in overseas subsidiaries. 3) Since the aggregation scope has changed from the previous fiscal year, the FY2000 figures differ from this report.

Mainly used in Europe and

the U.S.Mainly used in Southeast Asia and South America Used in China



0

10

50

30

20

40

0

20

100

40

60

80

FY2001FY2000

102100

41 44 475

92

438

100


118

100

105

77

106

79

104

79

101

77

100

79


CO2 Emissions


Ajinomoto Co., Inc.


CO2 Emissions



CO2 Emissions

* Unit energy consumption: Energy consumption per production volume amount


Overseas subsidiaries

* 22 major plants producing seasonings or amino acids

● The method of calculating CO2 emissions was changed starting this fiscal year. (CO2 emissions discharged from processes and refined compounds other than fossil fuel were in-cluded in the data of past years. From FY2001, we consider CO2 emissions discharged only from fossil fuel. The FY2000 and earlier

figures in the graph reflect adjustments based on the new calculation method.)

● CO2 emissions in overseas subsidiaries increased mainly due to the increased production in China.


Greater management control is being applied toward regulated chemical substances by the government through the enactment of PRTR Law and Regulations, as well as a heightened sensitivity to the safe treatment of dioxins and PCBs. The Ajinomoto Group complies with all established regulations and is working toward effectively controlling these environmentally hazardous substances.

Ajinomoto’s Kawasaki and Tokai Plants switched from heavy oil to more environmentally friendly natural gas as fuel for boilers. The Kyushu Plant, the only plant that uses heavy fuel oil (class C), which is responsible for more than half of our total emis-sions of SOx, successfully reduced emissions by purchasing

and using heavy oil with a lower sulfur content. With regard to the data on NOx, we are now including emis-sions from incinerators. The FY2000 and earlier values appear-ing in this report, therefore, differ from those presented in the FY2001 report.

Environmental Risk Measures

Air Quality Conservation

Note: The scope of aggregation for the figures shown in both graphs is only for Ajinomoto Co., Ltd.

SOx emissions (SO2 equivalent) NOx emissions (NO2 equivalent)

0

7,000

1,000

2,000

FY1980 FY1998FY1997 FY1999 FY2000 FY2001

Unit: tons

6,500(Estimate)

1,492

1,421 1,4151,126

1,699

FY1980 FY1998FY1997 FY1999 FY2000 FY2001

300

200

100

0

500

400

460(Estimate)

354

407

352

310

362

Unit: tons



● The Kyushu Plant succeeded in dramatically reducing SOx emissions by purchasing and using heavy oil with a lower sulfur content.

● NOx emissions from incinerators are included from this fiscal year in our NOx data. (Values for FY2000 and earlier were adjusted to include NOx emissions from incinerators.)

● A report on prevention of soil pollution is included from this fiscal year.

● During this fiscal year, we cleared our voluntarily set targets with regard to dioxins as well as regulatory values.


Environmental Load Caused by Wastewater

Overseas subsidiaries (27 plants*)Domestic subsidiaries

0

3

1

2

0

20

60

40

FY2000 FY2001

Unit: ppm

2 2

Fermentation and food manufacturing plants, in general, dis-charge large quantities of water used for washing and other purposes, and this has also been true for most Ajinomoto Group plants. Large-capacity activated sludge processing equipment is used to treat this wastewater, before the clean

water is released, mainly into rivers.The Kawasaki and Kyushu Plants recovered BOD, nitrogen, and phosphorous from wastewater and solidified the waste into excess sludge to be sold as raw material for fertilizers. The Tokai Plant incinerated these waste materials.

Water Quality Conservation

Regulatory requirements

Actual value

FY1998FY1997 FY1999 FY2000 FY2001

FY1998FY1997 FY1999 FY2000 FY2001

200

150

100

50

0

0 0

20

40

500

1,000

1,50060Unit: millions of tons Unit: tons

Unit: millions of tons Unit: tons Unit: millions of tons Unit: tons

Unit: tons

56

1,260

56

1,000

58

890

53

900

52

811

140

160150

133

160

60

4117

2721

Ajinomoto Co., Inc.

Regulatory Requirements for Discharged Water and Actual Value (FY2001)

39

14

1 0

20

10

0

1,000

2,000

FY2000 FY2001

17** 17

957

1,141

104

1,200

BOD T-N T-PBOD T-N T-PBOD T-N T-P

T-N

BOD

T-P

Volume of discharged water

Average

Maximum

Average

Maximum

50

60

5

5

40

80

22.9

35.8

3

6

0.25

0.43

20

25

3.2

7.0

60

120

9.2

17.4

8

16

1.4

2.2

60

80

2.9

5.0

60

120

18.2

37.7

8

16

0.4

1.7

Kawasaki Plant Tokai Plant Kyushu Plant

* 27 plants producing seasonings, amino acids, pharmaceutical intermediates, etc.** There were errors in the data of the previous year’s report. Corrected figures are shown in this graph.


Soil Pollution Measures

Chemical Substances Control

Beginning in December 2002, more stringent regulations of di-oxin emissions and the structural and technical standards of in-cineration facilities will take effect under Japan’s Law Concern-ing Special Measures against Dioxin. To comply with these regulations, we have intensified our efforts to modify equipment and establish operational techniques for equipment. We also have achieved our original voluntary standard of dioxin concen-tration for exhaust gas.In addition, the number of small-size incinerators (capacity: over 50 Kg/h) owned by Ajinomoto Co., Inc. and its domestic subsidiaries were reduced from 27 units in 1997 to 5 units.

Ajinomoto Co., Inc. possesses 84 units of equipment and components using PCBs to be disposed, while domestic sub-sidiaries own 68 units. These items are placed into leak-proof containers and stored in special locked warehouses. We are performing proper control and security of these items and peri-odically report to the appropriate authorities in accordance with the PCB Special Measures Law, effective July 2001.

The Ajinomoto Group established the following basic policies to prevent and reduce soil pollution, in compliance with the Soil Contamination Control Law.We will continue to conduct soil surveys centering on plants

both in Japan and overseas in accordance with these policies, and will take the necessary steps to resolve any issue that may arise, after reporting survey results to related authorities and declaring them to the public.During the survey conducted from February to July 2002 in two areas of the Kawasaki district, some of the soil samples were found to contain a few contaminants that exceeded regulatory requirements, although these contaminants were found to have no effect on groundwater. We reported these results to the appropriate authorities and disclosed the facts to neighbor-ing residents as well as the mass media. We understand that the soil pollution does not affect the health of neighboring resi-dents or our employees working in these areas and has no im-pact on the environment.

Dioxin Control PCB Control

We will comply with laws and regulations concerning soil pollution.

We will manage soil quality so that it has no impact on public

health or the surrounding environment.

We will disclose necessary information on soil pollution to our

company’s stakeholders.

We will prevent soil pollution from occurring.

1

3

4

2

PCB storage container

Information on the results of soil pollution surveys and countermeasures is available on our Web site at: http://www.ajinomoto.co.jp/URL


Regulatory Requirements of Dioxin Emissions and Actual Value

ng-TEQ/Nm3

1*

0.1

0.045

0.012

0.066

Air Quality (Exhaust Gas)

Incinerator Ash(Soot and Dust)

Water Quality (Discharge Outlet)

ng-TEQ/g

3

—

0.38

0.0063

0.042

pg-TEQ/L

10

—

0.77

0.026

0.006

* The regulatory requirement varies with incineration capacity. (Kawasaki Plant: 1, Tokai Plant: 10, Kyushu Plant: 5)

UnitRegulatory

requirementsVoluntary standard

requirements

Kawasaki Plant

Tokai Plant

Kyushu Plant


PRTR Substances Control

PRTR Substances and Volumes Released

acrylonitrile

acetonitrile

linear alkylbenzenesulfonic acid

antimony and its compounds<as antimony>

4,4’-isopropylidenediphenol; bisphenol A

polymer of 4,4’-isopropylidenediphenol and 1-chloro-2,3-epoxypropane (liquid); bisphenol A type epoxy resin (liquid)

ethlbenzene

xylene

cobalt and compounds

dichloromethane

dimethylformamide

thiourea

1,3,5-trimethylbenzene

toluene

m-phenylenediamine

phenol

bis(2-ethylhexyl) phthalate

formaldehyde

tris(dimethylphenyl) phosphate

Substance Name

7

12

24

25

29

30

40

63

100

145

172

181

224

227

264

266

272

310

353

Ordinance Reference No.

Volume Treated in FY2001

Total Volume Released

Volume Transferred(Volume taken out of our site)

507,000

115,000

2,000

94,000

5,000

68,000

1,000

30,000

1,000

2,000

334,000

15,000

1,000

206,000

25,000

4,000

2,000

49,000

40,000

0

3,485

0

0

0

0

1

1,539

0

14

40

0

15

160,469

0

0

0

24

0

Air

0

2,819

0

0

0

0

0

0

0

0

0

0

0

1

0

0

0

0

0

Water

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

0

0

0

Soil

0

6,304

0

0

0

0

1

1,539

0

15

40

0

15

160,471

0

0

0

24

0

2,562

103,856

0

0

93

5,827

0

614

865

1,524

317,687

1,250

86

37,652

0

10

0

386

0

Toluene Reduction Activities Acepackage Co., Ltd.

Inks and adhesives used for producing light packaging materials gener-ally contain volatile solvents such as toluene. In order to prevent any significant release of toluene into the atmosphere, Acepackage Co., Ltd. in conjunction with makers, has concentrated on developing tol-uene-free inks and adhesives along with a new production method for packaging materials to utilize them. As a result, more than 90% of the ink used for their materials has be-come toluene-free since they initiated these efforts in February 2001. Most packaging materials for frozen foods and seasonings supplied to Ajinomoto Co., Inc. use toluene-free inks and adhesives. Work will continue to develop new materials and methods to ensure that only toluene-free inks and adhesives are used for our packaging within the next few years.

Example

Unit: kg/year

Unit: mg-TEQ/year

dioxins 179 418 18 9 0 27 390

The PRTR Law requires that annual treatment of designated chemical substances exceeding one ton be reported; a total of 20 of these substances were used in the Ajinomoto Group companies in Japan this year. These substances were used

mainly in the production of specialty chemicals. By more pre-cisely evaluating the actual situations, we continue to strive to reduce the use of these substances.

Printing line


The primary functions of containers and packaging are to preserve the quality of the goods contained and to provide consumers with information about the goods. However, having less impact on the environment is just as significant. Ajinomoto brand products have been assessed and improved on the basis of a unique Eco-Index for Containers and Packaging (please refer to p15) built on four criteria (see figure).

Containers and Packaging Activities

Container and Packaging Recycling Law Compliance


Efficient Useof Resources

DisposalSuitability

Labeling

Volume of Materials for Containers and Packages for Household Products Expenses for Outsourcing Recycling Services

FY2001 FY2002Ajinomoto Co., Inc.

FY2001 FY2002Ajinomoto Frozen

Foods Co., Inc.

FY2001 FY2002Ajinomoto

Oil Mills Co., Inc.

0

10

5

25

15

20


3.1 3.1

7.77.1

FY2000 FY2001Ajinomoto Co., Inc.

FY2000 FY2001Ajinomoto Frozen

Foods Co., Inc.

FY2000 FY2001Ajinomoto

Oil Mills Co., Inc.

20.3

21.1

Steel

Aluminum

Glass (Colorless)

Glass (Brown)

Paper

Plastic

PET (For beverages)

0

50

200

100

150

171 170

63 65

7976

Unit: millions of yen

Unit Cost for Outsourcing Recycling Services by Material (FY2002)

Glass (Colorless) ¥3.6/kg

Glass (Brown) ¥7.8/kg

Glass (Other color) ¥9.1/kg

Paper ¥42/kg

Plastic ¥82/kg

PET bottle ¥75.1/kg


● Container and packaging weight of new products and existing products with redesigned containers was suc-cessfully reduced by 16% for household use and by 33% for industrial use.

● Demand is high for subsectioned containers and packag-ing because of their superior usability. However, adding subsections to containers and packaging increases their weight relative to the amount of product. Consequently, we are working to ensure environmental friendliness as much as possible, while satisfying customers' needs.

RecycleAdaptability

Systems and services for recycling containers and packaging such as separate disposal, collection, and reuse in other prod-ucts are increasingly entering into public use, reflecting the in-creasing social support for recycling in general. The Ajinomoto

Group is tackling the issue of container and packaging recy-cling by bearing the Expense for Outsourcing Recycling Servi-ces calculated in accordance with the material and volume of containers and packaging.


How to compress an Eco-Bottle

Examples of Major Improved Containers and Packages

Eco-Bottle

Eco-Pouche

The volume of plastics required was reduced by 20% compared with conventional bottles.

The amount of plastics required was reduced by 47% compared with conventional bottles.

The vertical length of the inner pouche was reduced by 5 mm, thereby decreasing the amount of plastic required by about one ton per year.

An “easy-to-remove cap” is used for convenient separate collection after use.

The pouche is compressible to one-tenth of its original size for disposal.

Reduction in weight by 15% compared to conventional bottles

The width of the heat-sealed poly bag was reduced by 4 mm, thereby decreasing the volume of plastic required by about three tons.

The bottle is compressible to half of the original size for disposal.

Remove the cap and collapse the rib portion at the bottom.

Compress the bottle. Put the cap back.

Sesami Oil for Sesami Oil Lovers

Cook-Do Almond Jelly and Others

Industrial Use AJI-NO-MOTO Package–Completely Separable and Easily Opened

Ajinomoto Consomme

Conventional type Improved type

Received the President of Japan Chamber of Commerce and Industry Award in the Japan Packaging Contest 2001

Received the Ministry of International Trade and Industry Award in the Japan Packaging Contest 1999

4mm 96mm

The volume of materials used for containers and packaging was reduced by 8.2g per bag, thereby decreasing the total required volume by 6.6 tons per year.

Convenient for disposal because the paper bag and the inner polyethylene bag are easily separable.

1 32

The standing pouche for cooking oil is the first of its kind.

5mm

For further information on the “easy-to-remove cap,” please refer to p36.

The volume reductions described above in-clude Cook-Do Goya-chanpuru and Cook-Do Lychee Pudding with the same packaging.

RecycleAdaptability


DisposalSuitability





RecycleAdaptability


DisposalSuitability



The Ajinomoto Group is working to reduce the environmental load during logistics operations under the slogan “Environmentally Friendly Logistics.”In 1995, we fully introduced railway containers for product transport in addition to truck containers.In FY2000, we introduced railway containers for the mainline transport of frozen foods for the first time in the food industry. In addition to these changes in logistics modalities, we have taken a variety of measures to enhance transport efficiency, such as using larger-sized trucks to simultaneously reduce costs as well as the burdens on the environment associated with logistics.

Logistics Activities


Major Activities to Date

Railway container transport

Periodic convening of “Study Meetings on Environmental Logistics” Starting in FY2002, the Ajinomoto Group, through the Logistics Strategy Department of the Seasonings & Food Products Compa-ny, has periodically convened a Study Meeting for Environmentally Friendly Logistics with the support of the Japan Freight Railway Company, toward further reducing the logistics-related environ-mental load. Environmental impacts generated by logistics activi-ties are identified and analyzed, enabling reduction solutions to be addressed. An extensive contribution has been made to reduce CO2 emissions by shifting to railway container logistic movements for mainline transportation; subsequently this transportion system will be expanded.

● Improved transport efficiency by introducing larger-size trucks and large-type containers (Deadweight: 13-14 tons)

● Achieved greater transport efficiency by delivering our prod-ucts together with other makers’ products

● Streamlining of logistic networks by establishing distribution centers near production bases

● Reduced the distances for inland logistic movements of im-ported goods

● Introduced plastic pallets

Study Meeting for Environmentally Friendly Logistics

● Railway container transport accounts for 16.5% (on a tonnage-kilometer basis) of the total logistic move-ments in both mainlines and local lines used by the en-tire Ajinomoto Group. This rate corresponds to a re-duction in CO2 emissions by 28,000 t/CO2 per year.

● We introduced transport by railway containers for the mainline logistic movements of products of Kellogg (Japan) K.K., with whom we have a business alliance.


Offices including the Headquarters and other operation sites consume a significant amount of energy and resources, including electricity, gas and paper. We are working at each office toward resource recycling and green purchasing of office stationery and equipment as well as reduced energy consumption.

Environmental Office Activities


The Tokai Office of Ajinomoto Co., Inc. is actively promoting green buying by introducing a new purchasing system used for office supplies, including sta-tionery, consumables, and equipment. The new purchasing system features an “Eco-Friendly Button” reminding the prospective purchaser to buy eco-friendly goods to promote green pur-chasing. The system also calculates the aggregate amount of green pur-chases by each department to accelerate environmental activities.

Green Purchasing System in the Tokai OfficeExample

Promotion of energy conservationExample

Reduction in Garbage Volume

The volume of garbage from the Headquarters’ cafeteria was reduced by about 60% compared to two years ago, by removing unpopular me-nus from party food services, controlling menus for lunch, and imple-menting complete garbage drainage.

Volume of Resource and Energy Usage

Electricity (kwh)

Gas (m3)

Water (m3)

Fuel Oil (KL)

Copy Paper (kg)

FY2000

6,231,291

199,027

37

36,144

527

71,955

FY2001

5,752,135

191,683

35

36,431

431

67,169

Difference

Volume of Waste Generation (FY2001)

Waste Oils

Waste Plastics

Waste Containers

Garbage

Waste Products

Waste Paper

Others

Volume

Total

1

92

16

73

103

183

35

503

Volume of Recovered Resources

Resource Recovery Ratio

0

0

4

0

0

135

33

172

0%

0%

25%

0%

0%

73%

94%

34%

Unit: tons

Input screen of the purchasing system

Drainage bathElectricity consumption was de-creased by reducing the number of fluorescent lamps by 30%. These lamps had been installed in the ceil-ings of OA corners located on each floor of the Headquarters building. The OA corners were closed after employees were able to use their own personal computers.

–479,156

–7,344

–2

+278

–96

–4,786

0

20

40

60

80

Volume of Garvage (the Headquarters’ cafeteria)

FY1999 FY2000 FY2001

（t）

74

3728

Reducing the number of fluorescent lamps

Example

● We have expanded the scope of aggregation. (This re-port covers five major branch offices as well as the Headquarters, whereas last year’s edition presented Headquarters data only.)

●The garbage volume from the Headquarters’ cafeteria was decreased by 25% on an annual basis.

Kerosene and Heavy Oils (KL)

The Ajinomoto Group participates as a responsible corporate citizen in a variety of activities in Japan and overseas, working in each location with local people to solve regional problems.

Community Relations

Social Activities

10,000m2 of green zone in the Tokai Plant Site (Yokkaichi City, Mie Prefecture), including a naturally occurring lake that is rarely seen in urban areas, is being remodeled. Led by employee vol-unteers, a wild bird sanctuary is being constructed by building hedges and a hidden observation hut for bird watchers. During peak migration seasons, more than 100 birds, such as cormorants, egrets, and ducks, migrate through or spend the winter in the Ajinomoto Tokai Bird Sanctuary. It also serves as an ideal breeding place for rare insect species like butterflies and dragonflies and forms rich and varied biota. We will further develop the area into a hibernaculum for migratory birds. This area is not yet open to the public and even employees are not granted access. However, visitors to the plant can with special approval, visit the observation hut during plant tours.On April 27, 2002, at a memorial lecture with approximately 100 attendants including employees, government and administrative staff, academics and press reporters, Professor Hiroyoshi Higu-chi of the University of Tokyo Graduate School made a presenta-tion entitled “Birds, Human Beings, and Nature.”

Seminars organized by the public relations departments of each regional branch have proven to be popular in their re-spective communities.Encompassing diverse fields, such as diet culture, nutrition, and health, the seminars feature lectures by both outside ex-perts and specialists from within the Ajinomoto Group.The seminars primarily target university and high school teach-ers, dieticians, and lecturers of cooking schools, and are tail-ored to reflect regional characteristics. In general, branch offices hold seminars once a year for each target audience, for a total of 30 seminars per year involving well over 2,000 participants.

Seminars Organized by Branch Offices

Establishment of the Ajinomoto Tokai Bird Sanctuary

Receiving Teachers for Training

Dark-backed wagtail

Scenic view of Tokai Bird Sanctuary

Diet Seminar Training teachers in the Kawasaki Plant

Professor Hiroyoshi Higuchi

The Ajinomoto Group receives public school teachers from To-kyo and Kanagawa Prefecture and provides training in a cor-porate setting.Public school teachers from Tokyo are divided into two groups and trained at the Kawasaki Plant, while teachers from Kanaga-wa participate in field trips to several operation sites, including the Kawasaki Plant, Central Research Laboratories, and the Headquarters, where they attend lectures and conduct discus-sions with employees.


Kawasaki Plant: General Affairs GroupTelephone: +81-44-222-1114

Tokai Plant: General Affairs and Human Resources GroupTelephone: +81-593-46-0111

Kyushu Plant: General Affairs GroupTelephone: +81-952-47-2211

Plant Tour Inquiries

Ajinomoto Open Plant

Firefly Admirers

Plant Tour

Ajinomoto Co., Inc., Kyushu Plant

Ajinomoto Co., Inc., Tokai PlantThe Tokai Plant invited neighboring residents to the Ajinomoto Open Plant, a get-acquainted gathering intended to strengthen community relationships. A total of 400 people participated in events in the gymna-sium and courtyard, in-cluding magic shows by a professional magi-cian, wonderful prize drawings, spot sales of Ajinomoto products, and an exhibition of how “Hondashi” sea-soning is made.

Last year, volunteers of the “Let’s release fireflies” group, which is jointly organized by the Kyushu Plant and Group Dream-Net 21, a civic association, bred firefly larvae at a facility on plant premises and released them in a man-made river. On a sum-mer day, despite a drizzling rain, more than 250 people gath-ered this year in the Kyushu Plant to enjoy the newly freed fire-flies, who were greeted by the joyful shouts of children seeing fireflies for the first time.

Cooking Classes and Movies for Parents and Children

Ajinomoto Co., Inc., Kawasaki PlantThe Kawasaki Plant conducted a variety of programs for about 100 parents and their children from neighboring areas on March 29 (Friday) and 30 (Saturday) 2002, including cooking classes on Korean cuisine and movie showings. The event, intended to express our gratitude for community support over the years, was favorably received by the participants, whose ¥100 at-tendance fee was donated to UNICEF.

Every plant of Ajinomoto Co., Ltd., Knorr Foods Co., Ltd., and Ajinomoto Frozen Foods Co., Inc. organizes plant tours for con-sumers, students, retailers, industrial users and others. After viewing explanatory videos describing corporate profiles and production processes, tourists are guided to actual production sites, mainly packaging plants. A leaflet entitled “Our Environ-mental Activities” was distributed to visitors of Ajinomoto Co., Inc. plants to introduce details of the Company’s environmental activities. Over 10,000 visitors participate in such plant tours each year.

Knorr Bon Dance Festival

Knorr Foods Co., Ltd.Knorr’s 25th annual Bon Festival Dance was held on July 27, 2002, and involved employees and their families as well as res-idents from neighboring areas. People wearing summer kimo-nos danced around a large wooden scaffold constructed for this purpose in the grass courtyard of Knorr Foods Co., Ltd. A special Japanese drum performance by children living in the area added to the extraordinary pleasure of this summer night festival.

Courtyard events

Japanese drum performance

“Our Environmental Activities”

Admiring the fireflies

Preparing kimchi



Social Activities

This is a joint project with the Japanese Organization for Interna-tional Cooperation in Family Planning (JOICFP) administered by Ba-tangas Province. Driven by a spirit of self-reliance and rooted in citi-zen participation and initiative, the project contributes to the im-provement of Reproductive Health (RH) and nutritional well-being, thereby enhancing the quality of life.

LIKAS, a Philippine NGO, im-plemented a project in the Mu-nicipality of Irosin, Sorsogon Province, providing a system-ized program for building child minding centers, improving nu-tritional status and providing food for malnourished children.

Support is given to the Food and Nutrition Research Institute (FNRI), in the Department of Science and Technology of Philippine govern-ment, to implement community-based R&D for a nutrition educa-tion model.

Run by Yayasan Kusuma Bua-na (YKB), an Indonesian NGO, the project focuses on primary schools in the Jakarta area. Activities include health base-line data collection and others.

Philippines

Indonesia

Cambodia

Operated by Universidad Peruana Cayetano Heredia, a private uni-versity in Peru, this project focuses on the highland and jungle re-gions of Peru and Lima City, seeking to popularize the addition of vitamin A and iron to locally produced foods to prevent nutritional deficiencies.

PRISMA, a Peruvian NGO, coordinates this project for chronically malnourished chil-dren in the province of Callao. The project promotes con-crete programs to combat malnutrition, including dissem-inating information through home visits and conducting group sessions for young mothers.

Peru

Integrated Project (1999–2002)

Nutrition Improvement Project (2000–2001)

R&D for a Community-based Nutrition Education Model (2000–2002)

Primary School-based Nutrition Improvement Program (2000–2003)

Nutrition Improvement Program through Household Gardening (2000–2003)

Nutrition Improvement Project through Fortification of Selected Foods with Micronutrients (2001–2004)

Health and Nutrition Project (2001–2004)

The Ajinomoto Group supports international cooperation pro-jects concerning food, nutrition, and health as a means of im-proving the dietary conditions of people around the world. Here are some highlights of these efforts.

Supporting Overseas Projects in the Food, Nutrition, and Health Fields

This project of the Japan In-ternational Volunteer Center, a Japanese nonprofit organi-zation, focuses on rural areas in Cambodia. Activities in-clude training for household vegetable and fruit gardening, as well as distributing veget-able seeds and fruit saplings.

Nutrition education aimed for parents

Training in propagating and grafting techniques

Children eating nutritive supplements at an elementary school

Project signing ceremony

Nigeria

Belgium

Indonesia

Philippines

Cambodia

Thailand


In 1999 and 2001, our Belgian subsidiary invited children between the ages of five and twelve from neighboring areas to participate in our plant tour and join with us in a “Children Learning about the En-vironment Project.” The project is a biennial local government pro-gram to teach children the importance of environmental preservation. During the plant tour, children learned about water circulation, ob-served production processes and facilities for wastewater treat-ment, and conducted experiments to learn the basic principles of wastewater treatment. The activities have been highly regarded by both schoolteachers and project organizers.

Support for Environmental Education

BelgiumChildren Learning about the Environment Project (S.A. OminiChem N.V.)

Measuring groundwater depth using a manual drill

Learning about settling tanks

We work with local communities to promote environmental education through a variety of activities, including plant tours.

We have promoted social activities concerning education and social welfare through our local corporations and foundations to deepen our relationships with local communities.

Promotion of Social Activities Concerning Education and Social Welfare

Thai Ajinomoto Foundation supports activities mainly in the areas of education and social welfare.

Thailand

We provide our support for this foundation, which mainly focuses on education.

Indonesia

This institute administerates donations of medical equip-ment and carrier vehicles to local medical organizations.

Brazil

The Group contributed to the construction of a library and donation of books to Wat Ang elementary school.

Cambodia

We supported a secondary school science quiz competi-tion and the Easter children’s party.

Nigeria

Monetary grant to cover construction expenses for a new school building at Oquen-do Elementary School.

Peru

Instituto Assistencial Ajinomoto (IAA)

YAYASAN AJI DHARMA BHAKTI Foundation

Thai Ajinomoto Foundation

Student receiving quiz competition prize

Ceremony on completion of the new building

Carrier vehicles donated by the Group

Ceremony for receiving support funds

New building of the Wat Sam Tum elementary school donated by the Foundation

Peru

Brazil


Social Activities

The motto of the Ajinomoto Group is to provide services and safe, high-quality products from the customer’s point of view. We seriously consider customer feedback and incorporate it into our business activities.

Customer Relations

Dedicated to quick, accurate and caring services, our Consumer Service Center fields approximately 60,000 customer inquiries and requests every year. Customer feedback is treated seriously and directed to related business departments, where we can learn to better meet customers’ needs and determine the best means for incorporating these recommendations into future prod-ucts and services. The Center plays an important role in discern-ing social trends by analyzing what our customers say about the environment, safety, and quality assurance, and it supports our individual business departments in addressing these concerns.

Consumer Service Center that Responds to the Voices of Our Customers

By category, inquiries about safety ranked first, accounting for 26% of all comments, reflecting public awareness of the Bovine Spongiform Ence-phalopathy (BSE) issue, followed by the “best before” date (15%) and raw materials and manufacturing processes (14%). These three items account for more than half of all comments. Inquiries about the environment totaled 419 cases (up 47% from the previous year), reflecting a growing environ-mental concern among customers. There were also many inquiries about methods of separate disposal of waste and recycle marks labeled on prod-ucts following the enactment of the Container and Packaging Recycle Law.

What Our Customers Said During FY2001

Example of Product Development Based on Customer Feedback

Previously, it was so difficult to remove the plastic cap from conven-tional glass bottles for liquid seasonings or edible oil that users nee-ded a tool such as a cutter or nipper, posing some risk of personal injury. The Company, inspired by customers’ complaints that a glass bottle with a plastic cap was refused during separate waste collection, started developing a new, more convenient cap that would comply with such a standard. As a result, two types of easy-to-remove caps, suited for specific contents, were released to the market: Hazuseru-kun, a removable cap for liquid seasonings, and a cap for edible oil.

Hazuseru-kun (Removable cap) for liquid seasonings

Easy-to-remove cap for edible oil

Safety 26%

“Best before” date 15%

Raw materials and manufacturing processes 14%

Retailers9%

Use method 7%

Quality and price 6%

Others14%

Nutrition constituents 3%

Sales promotions 3%

Containers and packaging 2%

Environment 1%

Easy-to-remove cap for convenient after-use disposal Printing of “Best Before” Date on Mayonnaise Bottle Caps We received a complaint from customers that the “best before” date of mayonnaise was lost when the outer-wrapping on which the date ap-peared was discarded. In response, since April 2000, we have been printing “best before” dates on the caps of Ajinomoto KK Pure Select Mayonnaise con-tainers. The top surface of the cap is treated and has a satin-finish (patent pending) so that the date mark is easy to read and is difficult to erase.

At the 23rd Annual Japan Packaging Contest in 2001 sponsored by Japan Packaging Institute, the “Easy-to-remove cap” was awarded The President of Japan Chamber of Commerce and Industry Award, while “Printing of ‘best before’ date on the cap of mayonnaise squeeze bottles” received the Food Packaging Section Award.

Award ceremony

“Easy-to-remove cap” The President of Japan Chamber of Commerce and Industry Award

“Printing of ‘best before’ date on the cap of mayonnaise squeeze bottles”Food Packag-ing Section Award

Consumer Service Center

Cap


The Ajinomoto Group makes every effort to establish better relationships with employees through training and workshops and encouraging each employee to voluntarily participate in socially responsible activities, thereby expanding the network of social service activities beyond the Ajinomoto Group.

Employee Relations

As of July 1, 2002, the total number of workers of Ajinomoto Co., Ltd. was 4,717, of which 1,010 are women (21.4% of all workers), including 22 cadres (management-level employees; 1.7% of all cadres). Of the 5,046 employees (including directly employed part-time workers) as of March 31, 2002, 91, or 1.80%, were disabled workers. As of July 1, 2002, there were 87 disabled workers out of a total of 4,982 (including full-time and part-time workers), representing a ratio of 1.75%.

Employment of Women and Disabled Workers

We have incorporated human rights training into the curricula of the following group courses for new recruits and cadres organ-ized by the Personnel Department.

Human Rights Training

• Training new recruits • Training those employed by year-round recruitment • Training those promoted to two positions, subject to the approval of the Company• Training newly appointed section managers • Training newly appointed general managers • Training top management

Several subjects are selected from among the following, depending on the level of training.In addition to these activities, special programs are also conducted for each Group company to train advisers and supervisors on sex-ual harassment issues or human rights matters. Each operation site and subsidiary also conducts its own human rights education.

• Purposes of human rights education conducted by the corporation • Laws and regulations concerning human rights• Major human rights issues in Japan • Anti-discrimination efforts geared toward minority groups • Human rights issues concerning Korean residents in Japan • Human rights and women• Sexual harassment• Human rights issues concerning disabled persons• Human rights and foreigners, elderly citizens, children, etc.

Group Training that Includes Human Rights Education

Training Details

Sending “Global News” to the Far Corners of the World

Top Management Web Site “C.E.Online”

“Global News,” launched in 1999 as our first English-version public relations magazine, primarily targets the local staff of our overseas subsidiaries around the world. It is intended to height-en unity among Group companies as members of a global cor-porate group by informing them of management policies and details governing business activities of the Ajinomoto Group. The booklet, now in its 18th edition and with a circulation of 1,800 overseas and 1,200 in Japan, is published in regular quarterly issues and include a special annual edition.

Regular issues

In line with the general global trend toward Group management, the Ajinomoto Group is advancing programs toward more effective cor-porate organization, including splitting corporations or introducing in-ternal company systems. In view of these changing business environ-ments, we launched the Top Management Web Site “C.E.Online” in January 2002, to inform workers of policies, strategies, and basic ini-tiatives of top management.About once or twice a month, we update Web site articles, which in-clude comments shared by the President and Vice-president either in-house or outside the Company and their views on the latest topics, plus recent newspaper articles. The network is programmed to allow employees to freely communicate with top management and ex-change views with co-workers using the Web. With about 8,000 hits ev-ery month, the system has become well established among employees of the Ajinomoto Group.

Global News special issue

C.E.Online


Social Activities

Here are a few of the ways in which we encourage employees’ participation in social activities.

Employee Volunteerism

Volunteer Information Services

Paid Holiday System for Volunteer ActivitiesA Paid Holiday System is available to employees who voluntarily en-gage in socially responsible activities. In FY2001, 18 employees used the system to participate in volunteer activities such as tree planting.

Information for becoming a community volun-teer as well as message boards for exchang-ing information are available on our Intranet homepage. The “Koe no Hanataba” Web site, established by the Japan Philanthropic Asso-ciation, provides audio recordings of printed media developed by volunteers for the elderly, the blind and partially sighted and for other physically challenged people. Ajinomoto em-ployees participate in this volunteer activity.

To highlight the importance of daily exercise, the Health Insur-ance Association of Ajinomoto Co., Inc. conducted a survey of how far our employees walk. Starting October 15, 2001, partici-pants were given pedometers and asked to record the number of steps they walked each day for a period of one month. Results were collected from 3,335 participants, representing 69% of all employees.After analyzing the data, by individual and by the organization as a whole, the Association delivered a report to each participant that included advice for maintaining good health. Most partici-pants appreciated the Association’s efforts, commenting that they were still using the pedometers as encouragement to walk more. Due to the popularity of the survey, it was conducted again in FY2002.

Survey on Employees’ Walking Distance

Ajimomoto Citizenship WeekSince 2000, the two-week period (June 11-24) framing the June 17 anniversary of the Company’s es-tablishment is designated as “Ajinomoto Citizenship Week,” a campaign intended to encourage employees to participate in social activities. Local offices in every re-gion develop plans for volunteer pro-jects, lecture about social activities, and support for charitable projects.

Kyushu Plant Received the Prime Minister’s Award

By proclaiming the first day of July as “Citizen’s Safety Day,” the govern-ment seeks to raise public awareness of citizen’s safety and reinforce the coordination of workplace safety activities.In accordance with these government policies, the Kyushu Plant of Aji-nomoto Co., Inc. has addressed improvements in workplace safety standards. As a result, the plant has been operating accident-free for 15 years (1.2 million man-days) since March 7, 1987, surpassing its own record of accident-free operation in the nation’s seasoning manufactur-ing industry. The plant has received a number of awards for its safe-workplace efforts, including the Award for Excellence from the Labor Standards Supervision Office in Saga in 1978, the Improvement Award from the Minister of Labor in 1996, and the Award for Excellence from the Minister of Labor in 1999.This high regard for the plant’s achievements is well reflected in its being awarded a Commendation from the Prime Minister on Citizen’s Safety Day in 2002, a special recognition for distinguished corporate safety performance. Receiving this award only encourages us to work even harder to ensure the safety of our workplaces.

Starting in 2001, we have rec-ognized employees who partici-pate in social activities as exem-plary corporate citizens, and an-nouncing these awards across the Ajinomoto Group to encour-age a more active and responsi-ble corporate culture.

“Society Volunteerism Award” Commendation System

Training for aiding the wheelchair-bound

Memorial plaque

Award ceremony

Pamphlet distributed to all employees

Volunteer appreciation letter and gift

Volunteer information services Web site


We actively encourage a variety of cooperative activities and services to establish solid partnerships with general society and regional communities and to foster material and spiritual prosperity.

Cultural Activities

The Ajinomoto Dietary Culture Center supports research on diet culture and provides a wide range of information through various activities, including the organizing of forums and lec-tures on interdisciplinary research; publishing the records of these forums and meetings; operating a library containing a wide range of books, literary documents and videos; and pro-viding financial assistance to research into the dietary culture.

Ajinomoto Foundation for Dietary Culture Center

We support Meals On Wheels in Japan, a volun-teer organization delivering meals to senior citizens.

Delivering Meals to Elderly Citizens

For eight years we have cooper-ated with President, Inc., a lead-ing publisher, in sponsoring an annual environmental photo con-test, “Photographs of Ecology.” This year’s theme was “Diet and Health” and, as usual, many pho-tographs were entered.

Environmental Photo Contest

We cooperate with the Foundation for Global Peace and En-vironment and the UN Environmental Program (UNEP) who jointly sponsor this competition. Children, the leaders of to-morrow, were asked to think about environmental issues and submit paintings based on the message “Preserve the beauti-ful earth.” A total of 9,043 works from 51 countries were en-tered in this year’s contest.

UNEP International Children’s Paintings of the Environment Contest

We support the National Federation of High School Home Economics Clubs in sponsoring a “Home Pro-ject Contest,” endorsing their aim of giving young people an opportunity to think about the importance of diet, living environment, and family life. This year, a total of 14,180 stu-dents from 478 schools entered the contest by submitting research re-ports centering on nutritionally bal-anced diets and living environ-ments.

“FHJ-AJINOMOTO Home Project Contest”

Winner of the Best Painting Award (Painted by a 13 year old from Romania)

Painted by a 14-year-old from Thailand

http://www.shoku-tankentai.org/

In partnership with the International Education Information Center (NPO), we co-sponsored “Discover the World through Food,” a program to advance international understanding by introducing culinary cultures from around the world, with 3,178 participants over the six months from October 2001 to March 2002.

Program to Advance International Understanding: “Discover the World through Food”

Contest poster

“Discover the World through Food” welcomes your participation. If you wish to participate, please apply through the above Web site.

URL

Delivering meals to the elderly(Photo by FUKINOTOU)

LibraryHow to make Philippine mango jam

Winner of the “2002 Ajinomoto Award”


Social Activities

The Ajinomoto Group takes the initiative in disclosing information on its various environmental activities to deepen both internal and external communications and to raise awareness of ecological issues among employees.

Environmental Public Relations Activities

Environmental Communication

Environmental Improvement Journal

Environmental Exhibition Installed on the First Floor of the Ajinomoto Co., Inc., Headquarters

The United Nations has declared June 5th to be the annual “World Environment Day.” In Japan, the same day has been designated as “Environment Day” by the Basic Environment Law, and the subsequent month is “Environment Month.” According-ly, many events take place in June throughout the world to raise awareness of the importance of environmental preservation. Recognizing and supporting the objectives of these policies, most of the Ajinomoto Group, including the major operation sites of Ajinomoto Co., Inc. in Kawasaki, Tokai, and Kyushu; Ajino-moto Frozen Foods Co., Inc.; and Ajinomoto Fine-Techno Co., Inc., perform environmental activities in June each year.This year, Ajinomoto Co., Inc., staged an environmental exhibi-tion on the first floor of its Headquarters building from June 5 to

July 5, including a slide presentation introducing the Tokai Bird Sanctuary for wild birds located on the Tokai Plant site as well as an exhibition of paintings collected from the “UNEP International Children’s Paintings of the Environment Contest” co-sponsored by the Ajinomoto Co., Inc.

We have implemented a variety of actions to inform as many people as possible about the environmental activities of the Ajinomoto Group. These include pamphlet distribution, our Web site, plus news conferences and press releases.

The journal, containing environment-related information such as workplace safety and hygiene in the office, emergency drills, and special campaigns for the correct disposal of waste, is is-sued to boost the level of environmental activities and to raise awareness of environmental issues among headquarters em-ployees.

Environmental report (Japanese and English Editions) and its digest “Our Environmental Acitivties”

Web site

Exhibition on the first floor of the Headquarters building

Environmental improvement journal


The History of Environmental Activities

Please refer to p11 for details regarding the acquisition of ISO 14001 certification.

• Discovered the source of umami of kelp, monosodium glutamate.• Production of AJI-NO-MOTO from gluten flour by an extraction method.

• Started general sale of AJI-NO-MOTO.

• Founded S. Suzuki and Co., Ltd. (Anniversary of founding: June 17)

• Fishermen’s cooperatives in Kawasaki and Haneda mount demonstrations by ship on Tama River, calling for installation of a wastewater treatment unit by S. Suzuki and Co., Ltd.

• Started production of AJI-NO-MOTO from soy protein by an extraction method.

• Diversified into Edible Oil Business.

• Started production of caustic soda by electrolysis process with the mercury method (Kawasaki Plant).

• Renamed Ajinomoto Co., Inc.

• Compound fertilizer ESUSAN approved.

• Started production of AJI-NO-MOTO by a fermentation method.

• Diversified into Processed Foods Business.

• Environmental Preservation Committee jointly established by Central Research Laboratories and Kawasaki Plant.

• Completed activated sludge processing equipment and exhaust gas desulfuriza-tion facility (Kawasaki Plant).

• Diversified into Frozen Foods Business.

• Diversified into Coffee Business.

• Completed change in electrolysis process (from mercury method to diaphragm method) and waste incinerator completed (Kawasaki Plant).

• Launched energy conservation project “KEEP.”

• Started production of fertilizer from by-product liquid (Kyushu Plant).

• Diversified into Beverage Business.

• Diversified into Dairy Products Business and Pharmaceuticals Business.

• Diversified into Sweetener Business• Fined for a breach of Water Pollution Control Law (Kyushu Plant).

• Change of boiler fuel from heavy oil to LNG (Kawasaki Plant).

• Launched Environmental Meeting chaired by Vice President (Headquarters).

• Introduced Eco-Index System for Containers and Packaging.

• Established Environment Department.

• Submitted Voluntary Environmental Action Plan requested by MITI.• Issued Eco-Guidelines for Containers and Packaging.

• Discontinued production of caustic soda by electrolysis process (Kawasaki Plant).

• Basic Environmental Policy and Environmental Regulations instituted.

• Acquired ISO 14001 Certification for the first time by Ajinomoto Co., Inc. (Kyushu Plant).

• All dumping of fermentation by-product liquid into the ocean terminated in Japan.• Started Environmental Audit of Ajinomoto Group.

• Published “Ajinomoto Group Environmental Report 2000” (Japanese edition).• Established Resource and Environment Department, International Production &

Technology Center.• Acquired ISO 14001 Certification for the first time by a domestic subsidiary

(Ajinomoto Frozen Foods Co., Inc., Chubu Plant).• ISO 14001 Certification acquired for the first time by an overseas subsidiary

(Malaysia Packaging Industry Berhad).

• Started Environmental Assessment for Large-size Investments by Headquarters management.

• Completed ISO 14001 Certification acquisition by all operation sites of Ajinomoto Co., Inc.

• Introduced internal company system.• Organizational change in “Environmental Committee” in accordance with the new

internal company system.• Announced data on soil pollution to the public.

• Pollution in Tama River becomes an object of public concern.

• Damage from mineral pollution along River Watarase near Ashio Copper Mine reported.

• Minamata Disease in Kumamoto Prefecture constituted a public problem.

• Factory Wastewater Regulations Law and Water Quality Preservation Law enacted.

• “Foul-smelling fish” in Ise Bay drew public attention.

• Smoke Exhaust Regulations Law enacted.

• Public Nuisance Countermeasures Law enacted.

• Fourteen laws concerning pollution enacted.

• Environment Agency established.

• A ban against production and use of PCB announced by MITI.• “The Limits to Growth” released by The Club of Rome. • The first United Nations Conference on the Human Environment held.

• Judgment of Minamata Disease Case delivered (in favor of plaintiffs).

• Pollution by hexavalent chromium becomes an object of public concern.• London Dumping Convention made effective.

• The first Basic Plan for Reduction of Areawide Total Pollutant Load formulated.

• Vienna Convention for the Protection of the Ozone Layer adopted.

• Resolutions for “Sustainable Development” approved by the United Nations.• The Montreal Protocol on Substances that Deplete the Ozone Layer adopted.

• G7 Summit called for earlier and global adoption of policies based on “Sustainable Development.”

• Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal adopted.

• Revision of Water Pollution Control Law.• The basic policy of the third COD Areawide Total Pollutant Load Control formulated.• Global Environment Charter by Japan Federation of Economic Organizations

(Keidanren) announced

• ICC Business Charter for Sustainable Development announced by International Chamber of Commerce adopted.

• Law for the Promotion of Utilization of Recyclable Resources enacted.

• Earth Summit (Brazil) held, Rio Declaration and Agenda 21 adopted.• Formulation of “Earth-friendly Voluntary Plan” requested by MITI.

• The Basic Environment Law enacted (Public Nuisance Countermeasures Law abolished).• Guideline on Corporate Activities Amiable to the Environment announced by the

Environment Agency.

• Basic Environment Plan by the Environment Agency resolved.• Revision of Environmental Quality Standards for Soil Pollution.• U.N. Framework Convention on Climate Change came into force.

• Container and Packaging Recycling Law enacted.• Environment Voluntary Action Plan announced by Keidanren.

• Obligation of recycling, part of Container and Packaging Recycling Law came into operation.

• Third Conference of Parties to the United Nations Convention on Climate Change (COP3) Kyoto Protocol approved.

• Law Concerning the Promotion of Measures to Cope with Global Warming enacted.• Household Electric Appliance Recycling Law enacted.

• PRTR Law enacted.• Law Concerning Special Measures against Dioxins enacted.

• Container and Packaging Recycling Law came into force.• Basic Law for Establishing the Recycling-based Society enacted.• Food Recycling Law enacted.• COP6 failed to adopt a resolution and was adjourned.

• COP6 reopened. Implementation rules of Kyoto Protocol agreed.

• Kyoto Protocol ratified by Japan and China.• Johannesburg Summit (World Summit on Sustainable Development) held.

Ajinomoto Co., Inc. and Ajinomoto Group SocietyYear

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G l o s s a r y

CFCs and CFC substitutes Various chlorofluorocarbons (CFCs), formerly used for a wide range of equipment, such as car air conditioners and the like, were found to re-act with ultraviolet rays from the sun. This led to a depletion of the ozone layer, which is responsible for absorbing most of the toxic ultra-violet rays in the atmosphere. Five CFCs with strong ozone-depleting impact were specifically designated for regulation of their production and usage. At present, CFC substitutes that have comparatively less ozone-depleting potential are used instead of CFCs, although they are also regulated.

DioxinsChlorinated organic compounds as defined by the Law Concerning Special Measures against Dioxins, promulgated in July 1999. Coplanar polychlorinated biphenyl (Coplanar PCB) is well known. Dioxins indeli-berately generated during incineration, are acutely toxic, carcinogenic, and teratogenetic.

Environmental AccountingA method of quantitatively evaluating and analyzing the costs and bene-fits of corporate environmental operations in business activities, and disclosing the results.The objective of environmental accounting is to promote environmental conservation activities effectively and efficiently and continue sustain-able development, while maintaining a favorable relationship with the community.

Environmental Reporting Guidelines of the Ministry of the EnvironmentThese guidelines, issued by the Ministry of the Environment, identify re-quired items and define preparation procedures to ensure that all envir-onmental reports share common information.

Expense for Outsourcing Recycling ServicesThis term is used in the Container and Packaging Recycling Law. Recy-cling is a procedure that begins when paper or plastic container and packaging waste is collected according to the type of material, by mu-nicipal governments or other organizations; and is then processed as resources for reuse. Packaging manufacturers and other related cor-porations are liable for recycling a certain volume of container and packaging waste according to a calculation method set by the govern-ment. The cost incurred by outsourcing recycling services to a designa-ted waste-processing dealer is called an Expense for Outsourcing Re-cycling Services.

Global Warming A rise in the average temperature of the earth due to a greenhouse ef-fect caused by an increase in the amount of greenhouse gases in the air, such as carbon dioxide and methane. Global warming has ad-vanced at a rapid rate due to the industrial production activities since the Industrial Revolution.

Green PurchasingA method of purchasing goods or services considering not only price and quality, but also environmental impact. Under the Green Purchas-ing Promotion Law, effective since April 2001, the national and munici-pal governments are obligated to purchase goods that have less im-pact on the environment, to the fullest extent possible. Private compa-nies and individuals are also required to comply with the law as much as they are able.

GRI Sustainability Reporting Guidelines Released by the Global Reporting Initiative (GRI), an international NGO encompassing the United Nations Environment Programme, national environmental organizations, institutional investors, associations of certi-fied public accountants, and private corporations. These guidelines re-quire every corporation to prepare a “Sustainability Report” integrating social, economical, and environmental aspects.

ISO 14001ISO represents International Organization for Standardization. Since 1996, ISO 14001 has been the international standard for environmental management systems. The system promotes continuous improvement of environmental management by setting definite targets and repeating four cyclical processes: Plan, Do, Check, and Act; then Plan again.

ManifestA control voucher for industrial waste. Each business party that dischar-ges industrial waste has to fill in a legally designated form, including in-formation about the type, quantity, and handling precautions of the waste. Information is added to the form at each stage after discharge; collection, intermediate disposal, and final disposal. The party that dis-charged the waste then collects the final disposal report to confirm its proper treatment.

Pollutant Release and Transfer Register (PRTR) LawUnder this legislation, each business, such as a plant, is obligated to conduct surveys on the release and transfer (including release into the air, into a river or ocean or outsourcing to a waste-disposal dealer) of about 400 government-designated hazardous chemical substances, including dioxins, and then report to the national government through the municipal government. The national government will publicly an-nounce the compiled results.

Polychlorinated Biphenyl (PCB)A highly toxic and stable substance that resists decomposition and de-struction. This chlorinated organic compound was used widely for vari-ous purposes including insulation oil. In 1972, production was prohib-ited by law, due to its strong toxicity. Without an effective disposal method, PCB waste had been stored at each company. The PCB Special Measures Law, enacted in April 2001, has provided a plan for its systematic disposal.

Soil Contamination Control LawThis law was enacted May 29, 2002, to deal with measures against soil pollution. It includes a clear grasp of the factors leading to this condition as well as measures to protect public health.The law requires landowners who have specific facilities that use identi-fied hazardous substances on their land to survey the level of soil pollu-tion when such facilities are terminated. Prefectural governors may or-der a landowner to remove soil contaminants when the public health is at risk.

Sustainable DevelopmentThe thesis proposed in a report entitled “Our Common Future,” which was submitted by the World Commission on Environment and Devel-opment to the United Nations in 1987, has become the focus point to environmental issues. It represents the belief that development without damaging the environment leads to sustainable growth.

Zero Emissions ActivitiesThe activities that promote the recycling of waste generated during business activities and that attempt to totally eliminate the outsourcing of waste disposal to an external waste-processing dealer.


E d i t o r ’ s P o s t s c r i p t

This is the third issue of our Environmental Report.Since its inauguration, we have published a greater diversity of articles and increased the scope of aggregated data describing our efforts and achievements.As in earlier editions, this report is the result of the cooperation of many people.We regret that the publication of this issue was delayed, and we pledge to step up efforts to ensure that the next report will be released earlier, as we continue to enhance the variety and quality of its content.

In closing, I would like to share an interesting story that I heard at an environmental seminar.In this story, our lives are just like an egg held in one’s hand.The yolk of the egg is the economy, the white portion is society, and the eggshell is the environment, all grasped in the hand of humankind.From this image, we can see that the economy is supported by a sound society, in which both the economy and society itself are protected by the environment, while the “egg” is entrusted to the hand of human beings. We must protect the environment for a sound society and stable economic growth. Humbly acknowledging this truth, we will continue to seriously address environmental activities and issues.Your comments and recommendations are important to us for the ongoing improvement of the content and structure of this report.

For further information regarding environmental activities of theAjinomoto Group and this Environmental Report, please contact us at:

Ajinomoto Co., Inc. Environment Department15-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8315, Japan

Tel: +81-3-5250-8169 Fax: +81-3-5250-8318http://www.ajinimoto.com/

Printed on paper made of bagasse (sugarcane fiber), using soy ink for environmental preservation, and employing a printing system that using no water and discharging no harmful wastewater in the process. Published January 2003.

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