8

Environmental ManagementStanley Group Vision

In April 2000 we formulated the Stanley Group Vision in order to share our core values, the significance of our existence for society, and our enduring mission among Stanley Group companies around the world.

Under this vision, we have established our Business Philosophy and Guidelines for Action, and

have set our sights on broadly contributing to society by means of manufacturing with a thorough mastery of the Five Ways of Creating Value with Light.

What is more, in order to practice environmentally friendly corporate activities we have put our full efforts behind our environmental protection activities.

Environmental Activities of Stanley Group

Stanley Group Vision

Basic Environmental Philosophy

Environmental Policies

Environmental Long-TermManagement Plan

Activities that Aim for the SustainableDevelopment of Society and Business

EnvironmentalProclamation

Phase IV 3-year environmental mid-term management plan(April 2010 to March 2013)Phase V 3-year environmental mid-term management plan(April 2013 to March 2016)Phase VI 3-year environmental mid-term management plan(April 2016 to March 2019)

Strengthening management systems

Prevention of global warming

Resource recycling / waste reduction

Prevention of pollution

Environmental Activities of Stanley Group

Stanley Group Vision

Basic Environmental Philosophy

Environmental Policies

Environmental Long-TermManagement Plan

Activities that Aim for the SustainableDevelopment of Society and Business

EnvironmentalProclamation

Phase IV 3-year environmental mid-term management plan(April 2010 to March 2013)Phase V 3-year environmental mid-term management plan(April 2013 to March 2016)Phase VI 3-year environmental mid-term management plan(April 2016 to March 2019)

Strengthening management systems

Prevention of global warming

Resource recycling / waste reduction

Prevention of pollution

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Basic Stance on Environmental Management

Environmental Policies

In all our corporate activities, we will follow our Basic Environmental Philosophy, with each member of our company aware of his and her roles and responsibilities regarding environmental conservation.

■ Throughout our business operations, products and services, we promote environmental activities such as the conservation of natural resources and energy and the reduction of wastes to preserve or advance the environmental wellness.

■ We carry out corporate activities while striving to minimizing environmental impacts, and we promote our environmental protection activities to achieve continual improvement of the environment and the prevention of pollution.

■ In addition to observing the environmental regulations and the environmental agreements we conclude with other parties, when necessary, we apply voluntary environmental standards of our own on the basis of those regulations and agreements.

■ To implement our Environmental Policies, we specify environmental objectives, set up environmental targets, and regularly or extraordinarily reexamine the objectives and targets in view of current progress.

■ We continuously put our Environmental Policies into practice under the framework of our environment management system.

■ We communicate our Basic Environmental Philosophy and Environmental Policies to all the persons working for the company, and we also gain the understanding and cooperation of our suppliers and other stakeholders through informational efforts.

■ We make our Basic Environmental Philosophy and Environmental Policies accessible to the general public, and we report the progress of our environmental activities in order to increase communication with the local community, when requested.

Environmental ProclamationWe, Stanley, strive to become an Earth friendly corporation by practicing the "non-use, non-

emission and non-disposing" of environmentally harmful substances.

Basic Environmental PhilosophyThrough the efficient use of resources, we will strive to ensure that all our corporate

activities sustain or enhance the environment so that we can pass on the immeasurably rich blessings of our Earth to the next generation in a healthy state.

Underlying Concepts of Ecological Activities

Under our Basic Environmental Philosophy, the Stanley Group aims for the sustainable development of society and business as it works towards the conservation of the Earth's environment. Curbing emissions of greenhouse gases to prevent global warming, resource conservation activities that aim for a recycling-oriented society, curbing emissions of harmful chemical substances, and the development of environmentally friendly products are among the activities that we promote.

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The Stanley Group’s Second Environmental Long-Term Management Plan

Initiatives for environmental regulations

Environmentallyconscious products

Initiatives for biodiversity

Prevention of global warming

Resource recycling / waste reduction

Prevention of pollution / product environment

Second EnvironmentalLong-Term

Management Plan

Strengthening initiativesfor our EnvironmentalManagement System

Phase VI 3-year environmental mid-term management plan (April 2016 to March 2019)

Promote the global expansionof environmental management

Phase IV 3-year environmental mid-term management plan(April 2010 to March 2013)

Create a foundation forenvironmental management

Strengthen management foundationsto accommodate global expansion Continue with zero environmental defects

Achieve sustainable development for society and business/carry out manufacturing that contributes to the Earth's environment to achieve both social contribution and profit creation.

Phase V 3-year environmental mid-term management plan (April 2013 to March 2016)

Promote environmental managementand start expanding it globally

Promote self-sufficient EMS activities globallyPrepare for global EMS integration Promote global EMS

Actively contribute to regional ecosystem protection activities

Promote the prevention of global warming / reduce greenhouse gas emissions through business processes

Deploy and strive for activities that do not generate waste globally

Completely eliminate environmental accidents by thoroughly ensuring that no substances of environmental concern are used

Continue with zero emissions

Reduce waste - Reductions of 1% a year or more relative to FY 2009 in basic added value units

<Distribution region> Reductions of 1% a year or more relative to FY 2009 in sales cost units

Provide environmentally conscious products that contribute to the Earth’s environment (continuously)

Continue complying with regulations related to business activities

Domestic

Overseas

Regulate a global Environmental Management System (EMS)

Reductions of 1% a year or more relative to FY 2009 in basic added value units

Promote self-sufficient EMS activities at each base

Improve the efficiency of operation through EMS integration

Strengthen the regulatedEMS activities

Environmental Long-Term Management Plan

Second Environmental Long-Term Management Plan

In order to achieve the sustainable development of society and business, we have formulated an Environmental Long-Term Management Plan (April 2010 to March 2019) in order to promote environmental management, and are working to address environmental challenges such as the prevention of global warming.

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Environmental Management StructureWe have created an environmental management structure with an environmental board director

as its highest officer under the president. Our Environmental Protection Activities Committee is a body for deliberating over issues like our environmental strategy, environmental administration, and important policies from a global standpoint. What is more, we have set up the Environmental Planning & Management Department as a department to promote environmental management, and are moving forward with activities for improvement.

With our business base in manufacturing, the Stanley Group provides products considered necessary by society while promoting an environmental management system designed to pass on the immeasurably rich blessings of our Earth to the next generation in a healthy state.

We have created this environmental management system in order for the Group as a whole to implement our Environmental Long-Term Management Plan based on our environmental policies.

Environmental Management System

Discuss environmental strategies and regulatory affairs; optimize and maintain the environmental management system to realize the Basic Environmental Philosophy and the Environmental Policies.

Environmental protectionactivity committee

Conduct environmental protection activities at the Stanley branches and group companies, respectively.

Branches & subsidiaries’environmental protection

working groups

Environmental planning &management department

Plan and oversee the environmental management system of the whole Stanley Group including domestic and overseas subsidiaries; conduct investigations and maintain and operate a database on the substances of environmental concern contained in various products.

Energy ConservationWorking Group

Facilitates energy conservation by drafting and promoting policies related to the Stanley Group’s energy management.

EMS working groupOptimizes and makes continuous improvements to environmental management systems with a view towards galvanizing and increasing the efficiency of environmental activities and strengthening monitoring functions.

EMS working group

President

Environmental board director

Environmental planning& management department

Management conference

Environmental protectionactivity committee

Energy ConservationWorking Group

Head officeR&D LaboratoryTsukuba Research LaboratoryUtsunomiya Technical CenterYokohama Technical CenterOpto Technical Center

Domestic labs & technical centersHatano FactoryOkazaki FactoryHamamatsu FactoryHiroshima FactoryYamagata Factory

Domestic factoriesStanley Iwaki WorksStanley Tsuruoka WorksStanley Miyagi WorksStanley Ina WorksStanley Niigata WorksOthers

Domestic group companies Overseas group companies Divisions

※ Branches that have yet to acquire ISO14001 certification. These are the informal names of our overseas group companies. See P05 for their official names.

ＳＵＳ（US）

ＳＥＨ（Hungary）ＩＩＳ（US）

ＡＳＩ（Thailand）ＴＨＳ（Thailand）

ＳＥＺ（China, Suzhou）

ＴＳＥ（China, Tianjin）

ＣＨＳ（China, Chongqing Hua-yu）

ＶＮＳ（Vietnam） etc.

ＳＳＺ（China, Shenzhen）

ＧＳＥ（China, Guangzhou）

※ <Branches, Marketing Offices etc.>

ＩＳＥ（Indonesia）SEB（Brazil）※

Continualimprovement

Managementreviews

Checking

Implementationand operation

Environmentalpolicies and

planning

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Internal Environmental Audits

We carry out internal environmental audits by forming independent in-house auditor teams comprised of internal environmental auditors who have been certified internally.

In addition, audits by the environmental management supervisors at each base are implemented on a reciprocal basis to promote the maintenance and improvement of the EMS level at each base.

External Audits

We undergo external audits regularly once per year, as well as renewal inspections through third party certifying agencies.

In FY 2011 we carried out audits on Stanley Electric Co., Ltd., which included companies in the domestic group, with there being zero items requiring corrections.

Environmental Education Environmental Management AuditingWe provide environmental education divided into the categories of training according to

personnel position and job type, training according to occupational abilities (strategic education) such as certification education for internal environmental auditors, and training according to occupational abilities (function segmented education) which is aimed at employees engaged in operations in the environmental field.

We consider Environmental Management System (EMS) auditing to be essential for the sake of continuously improving the EMS. Stanley Electric and Stanley Group companies in Japan conduct auditing through internal environmental auditors, as well as external audits through external, third party certifying agencies.

EMS education & training・Education based on the divisional education plan・Seminars outside the company・Jobs relating to education/trainingJobs with the potential to cause a considerable environmental impact

・Education relating to awareness (policies, objectives, emergency actions, etc.)

Subject to all employees, outside personnel workingat Stanley, personnel of commissioned agents

・Education & training for qualificationJobs that have a considerable environmental impact (i.e. designated environmental jobs)

Skill-up training for inhouse environmental auditors

Qualification training for inhouse environmental auditors & auditor candidates

Train substances of environmental concern investigation instructors

Understanding of ISO 14001 requirements

Study of environmental regulations & auditing expertise for sustained environmental improvements

Gaining of skills to analyze and detect substances of environmental concern in products

Trainings by work skill (functional education)

Trainings by work skill (strategic education)

Trainings by personnel position, job type

New manager trainingNew supervisors training

Mid-carreer recruitsNew recruits training

Management of environmentrelated laws and regulations and our environmental challengesGeneral environmental knowledge and awareness, and environmental knowledge pertaining to environment-related laws and regulations and duties as a supervisorGeneral environmental knowledge and awareness, and environmental knowledge pertaining to dutiesGeneral environmental knowledge and awareness required of employees as members of society

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Environmental Risk Management

Initiatives for Environmental Risk Management

We observe all domestic and foreign environmental regulations, and work to reduce and eliminate harmful chemical substances (substances which are contained in products and those which are used during their manufacture). One such initiative is to carry out development, design, and purchasing management for products that do not contain harmful chemical substances on the basis of a list of substances of environmental concern.

With regard to regulations and controls, we are promoting compliance with the revisions to the PRTR Law and the Law concerning the Rational Use of Energy, as well as the Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and others. To prevent environmental accidents in advance, we have instituted environmental patrols and checks during internal environmental audits.

What is more, we are working to reduce our emissions of greenhouse gases, which are a global environmental problem, through our supply chain. In order to carry out such activities we have revised our Green Procurement Guidelines and are promoting cooperation with our business partners.

Management of Substances of Environmental Concern

From the standpoint of protecting the Earth’s environment, regulatory structures for chemical substances have been growing stricter around the world and the importance of managing such substances has been on the rise.

The Stanley Group promotes the manufacture of products that do not contain harmful substances of environmental concern through the following initiatives.

Internal Structure for Managing Information on Substances of Environmental Concern■ Creating a Database of Chemical Substances Found in Products

This is an important database for managing information on the content of chemical substances in the parts and raw materials which make up our products. This database provides information on the manufacture of products that do not contain harmful substances of environmental concern to the relevant departments.

■ Establish and Strengthen a Structure for Managing Substances of Environmental Concern

We periodically carry out audits on our structure for managing substances of environmental concern at our production bases in Japan and overseas and promote initiatives to strengthen this.

Structure for Managing Information on Substances of Environmental Concern through Our Supply Chain

Throughout our environmental protection activities as a whole, the Stanley Group is actively engaged in procuring environmentally conscious materials (hereinafter referred to as “green procurement”), in close collaboration with our business partners in order to make progress towards minimizing the substances of environmental concern.

■ Our Philosophy for Green ProcurementWe have issued Green Procurement Guidelines for the Stanley Group to clearly lay

out our philosophy on green procurement. 1. We purchase parts and materials from suppliers that promote environmental

protection activities. 2. We purchase raw materials/parts/products with less substances of environmental

concern.3. We strive to determine and reduce the amount of greenhouse gas (GHG)

emissions.

■ Green Procurement Standard1. We evaluate and judge suppliers’ environmental initiatives, environmental policies,

and management systems and only deal with suppliers deemed to be excellent.2. We do not procure parts or materials that contain or use substances that we have

prohibited and try to reduce the other substances that we have designated.3. We promote the 3Rs (reduce, reuse, and recycle) and procure parts and materi-

als that generate less waste. 4. We promote the recycling and reduction of packaging materials. 5. We take energy saving into consideration when purchasing parts and materials.6. We strive to increase procurement from the suppliers who have agreed to reduce

GHG emissions from the perspective of product life cycle.

■ Green Procurement PoliciesIn order to continue to further strengthen

and promote environmental initiatives and green procurement, we describe to our major business partners the objectives of these initiatives, while also asking for their cooperation mainly with regard to the following points.・ Assurance that zero substances banned

by laws or regulations have been used・ Acquisition of certification / Complete

accreditation as one of our eco-partners

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Soil Contamination Surveys

In FY 2011 we implemented a soil survey prior to carrying out paving work at our Hatano Factory. As a result of this, selenium and boron were detected in excess of the standard values and so countermeasures were taken by means of replacing the soil. This matter was also reported to government authorities according to law.

Compliance Status with Laws and Ordinances

There were deficiencies in providing notifications as per the Fire Service Act at some of our branches, and so we are confirming the current situation and moving forward with providing said notifications. We will continue to confirm our compliance status, including for these matters, through internal audits.

Responding to Complaints

There were no complaints from nearby residents in FY 2011. When complaints do arise, we work to take immediate countermeasures to them.

Hatano Factory Failure to provide notification of trace amounts of hazardous substances Currently being handledHiroshima Factory Failure to provide notification of designated combustibles Notification completed Failure to provide notification of trace amounts of hazardous substances Currently being handled　　　　 Failure to provide notification from the pollution control manager (representative) Notification completed

DeficiencyBranch Status

Yamagata Factory

PRTR Substances

Pursuant to the PRTR Law, we determine the emissions and transfer of chemical substances which are subject to said law.

FY 2011 saw decreases in both our emissions and amount transferred, which came to 42.2t (a decrease of 16.1% YOY) and 56.0t (a decrease of 4.4% YOY), respectively.

High-voltage transformer Lighting capacitor4 19High-voltage capacitor Mercury lamp stabilizer8 29High-voltage phase advance capacitor 7 Phosphorescent lamp stabilizer 874Low-voltage capacitor 1,145

Total1 2,087

Equipment No. of units Equipment No. of units

Emissions

Total emissions

Atmospheric emissionsObjective

Emissions into public water systemsEmissions into the soil on premisesLandfill disposal on premises

Transfer to sewageTransfer to outsideTotal amount transferred

Amounttransferred

Records of PRTR-designated Class 1 Chemicals (Data from Notifying Branches)

FY 2009 FY 2010 FY 2011

47.8t

47.8t0t0t0t

0t53.3t53.3t

50.3t

50.3t0t0t0t

0t58.6t58.6t

42.2t

42.2t0t0t0t

0t56.0t56.0t

Transformer

0

80

60

40

20

FY 2009 FY 2010

20.5

6.7

12.0

5.82.9

25.0

7.56.85.63.32.1

24.5

6.94.63.4

2.8

FY 20110

80

60

40

20

FY 2009 FY 2010

32.5

10.15.91.11.32.3

37.6

11.5

6.61.30.80.8

38.3

10.45.31.20.8

FY 2011

Unit: t

StyreneEthyl benzeneDichloromethane (methylene chloride)XyleneToluene

Changes in Emissions by Type of SubstanceRequiring Notification under PRTR

Unit: t

OtherDichloromethane (methylene chloride)Ethyl benzeneXyleneTolueneStyrene

Changes in the Amount Transferred by Type ofSubstance Requiring Notification under PRTR

Other

Management of Polychlorinated Biphenyl (PCB)

We carry out the proper storage and treatment of PCB pursuant to the Special Measures Law for the Proper Treatment of Polychlorinated Biphenyl Wastes.

High-voltage transformer Lighting capacitor4 19High-voltage capacitor Mercury lamp stabilizer8 29High-voltage phase advance capacitor 7 Phosphorescent lamp stabilizer 874Low-voltage capacitor 1,145

Total1 2,087

Equipment No. of units Equipment No. of units

Emissions

Total emissions

Atmospheric emissionsObjective

Emissions into public water systemsEmissions into the soil on premisesLandfill disposal on premises

Transfer to sewageTransfer to outsideTotal amount transferred

Amounttransferred

Records of PRTR-designated Class 1 Chemicals (Data from Notifying Branches)

FY 2009 FY 2010 FY 2011

47.8t

47.8t0t0t0t

0t53.3t53.3t

50.3t

50.3t0t0t0t

0t58.6t58.6t

42.2t

42.2t0t0t0t

0t56.0t56.0t

Transformer* The number of high voltage phase-advancing condensers, mercury lamp stabilizers, and phosphorescent lamp stabilizers newly increased due to building demolitions.* The zero phase capacitors were properly disposed of.