The Takasago Group Environmental Report 2010

Takasago International Corporation
Nissay Aroma Square 17F
5-37-1, Kamata, Ohta-ku, Tokyo 144-8721, Japan
Corporate Strategy and Planning Department
TEL: +81-3-5744-0786

FAX: +81-3-3730-6678
URL: http://www.takasago.com
E-mail: TIC@takasago.com

                                                                                                                                   REPORT 2010
                                                                                                                                                                                                                        REPORT 2010

                                                                                                                                      The Takasago Group Environmental Report 2010
On the Issuance of the 2010 Environmental Report
This report covers the many efforts being carried out by Takasa-
go's seven domestic and seven overseas factories to reduce en-
vironmental impact. Additional information and data not covered
in this booklet can be found on the company's website. We have
tried to edit this report to make it easy for readers to understand
the actions of each factory.

With everyone's input we intend to verify and improve upon these
activities, and reevaluate our distribution and reporting methods.
This report covers the period of April 2009 to March 2010 (and includes some
more recent data) for Takasago International Corporation and its group companies.

Ball Incense Holder (Mari Koro)
Late Edo Period Height: 8 cm

                                                                                                                                                                                                          Looking Toward a Future of Great Potential for Aromas

This small, spherical incense burner consists
of a body and lid, the lower and upper halves,
respectively. The surface is decorated with
gold and silver lacquer, depicting a bounding
rabbit and waves. It is designed with a gyro-
scopic burner inside, so that even if the holder
is rolled, the burner will remain upright.
Because it could be placed into the hanging                                         In June 2010 the company received a Develop-
sleeve of a kimono known as a sode, it is also                                      ment Bank of Japan loan based on its being
                                                                                    evaluated as “a company with advanced envi-
called a sode koro.                                                                 ronmental programs.”
         Top Message

           Redoubling efforts to reduce CO2 emissions                     pared to FY 2000.                                            head task forces seeking systematic solutions to a wide      Contents
           in the run-up to our centenary                                    We are working toward these goals by switching fuel to    range of challenges.
                                                                          liquid natural gas (LNG), which generates few CO 2                                                                        Top Message                                                    1
         Let me begin with a heartfelt word of thanks for your            emissions, and by taking systematic steps to reduce ener-      In the quest for sustainability, we will explore
                                                                                                                                         how best to coexist with the environment, the              Takasago International Corporation
         patronage of the Takasago Group.                                 gy use on the production line. We also intend to continue
            Since its founding in 1920, Takasago International has,       installing more energy-ef cient equipment and streamlin-
                                                                                                                                         ecosystem, and society at large                            Domestic production base
         faithful to its philosophy of “Contributing to Society           ing the production process.                                  With 2010 being the International Year of Biodiversity,      Hiratsuka Factory                                              3
         Based on Technology,” always sought to deliver safety                                                                         global recognition of the importance of protecting biodi-    Iwata Factory                                                  5
         and peace of mind through the products it makes. Today             As a truly global corporation, our aim is to               versity is increasing. Over 50% of the raw ingredients
                                                                                                                                                                                                    Kashima Factory                                                7
         companies are judged also on their environmental stew-             achieve ISO 14001 certi cation at                          Takasago handles are derived from living organisms, so it    Takasago group
         ardship, and what most customers expect of us, I feel, are         all production sites                                       is no exaggeration to say that our very business depends
                                                                                                                                                                                                    Domestic base
         both all-round ability as a global corporation and the de-       As of FY 2009, the Takasago Group has obtained ISO           on biodiversity and its blessings.
                                                                                                                                                                                                    Takasago Chemical Corporation
         pendability of a partner with whom to do business over           14001 certi cation for ve sites in Japan                         We at the Takasago Group intend to enhance our
         the long term. Our task now is, while recognizing sustain-
                                                                                                                                                                                                    Takasago Spice Co., Ltd.                                       9
                                                                          (the Iwata, Hiratsuka, and Kashima factories, Takasago       knowledge of the intimate connection between biodiver-
                                                                                                                                                                                                    Takasago Coffee Co., Ltd.
         ability as a priority, to do right by society in our corporate   Food Products, and Takasago Chemical) and one loca-          sity and our business. With the aim of eventually bringing   Takasago Food Products Co., Ltd.                              11
         activities and put all our efforts into achieving sound,         tion abroad (in France). We will now focus on establish-     out a sustainability report, we will also explore how best
         pro table growth. To that end we will, in cooperation            ing environmental management systems with the goal of        to coexist with the environment, the ecosystem, and soci-    Overseas base
         with our stakeholders, manufacture products that impose          strengthening our environmental stewardship on a global      ety at large.                                                Takasago International (Singapore) Pte., Ltd.
                                                                                                                                                                                                    Shanghai Takasago-Union Fragrances&Flavors Co., Ltd.
         no burden on the environment over the course of their            scale.
         lifecycle from procurement of raw materials through nal
                                                                                                                                                                                                    Dan Kaffe (Malaysia) SDN BHD                    13
                                                                              In FY 2011, Takasago intends to bring in a system for
                                                                                                                                                                                                    Takasago International Corporation (U.S.A.)
         disposal.                                                        managing and aggregating environmental data and begin        Ritaro Igaki
             The Takasago Group has drawn up a medium-to long-
                                                                                                                                                                                                    Takasago De Mexico S.A. De C.V.                              15
                                                                          collecting environmental data from all company locations     President and Chief Executive Of cer
                                                                                                                                                                                                    Takasago Europe G.m.b.H.
         term plan on the environment, health and safety entitled         across the globe–branch of ces, production sites, research   September 2010
         EHS100. Covering the period from FY 2009 through
                                                                                                                                                                                                    Takasago International Chemicals (Europe) S.A.                17
                                                                          labs, and so forth. We further aim to achieve blanket ISO
         2020, our centenary, this consists of four phases, each of       14001 certi cation for all Takasago production sites
         three years’ duration. The goal for Phase I is to reduce the     around the world before the end of that year.
         Takasago Group’s total CO 2 emissions by 2% per year;               Under the EHS100 program, EHS managers have been                                                                               Please see following URL about the site report of each factory.
         the goal for Phase II is to achieve a 10% reduction com-         appointed at Takasago’s global production sites. They                                                                          http://www.takasago.com/aboutus/
                                                                                                                                                                                                         About us   Environment,Health and Safety        Site Reports

         build a sustainable society
         by working globally to protect
         the environment.

1   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                        2
                                                                                                                                                                                                                                            We do everything in our capacity to
                                                                                                                                                                                                                           Odor             prevent odor dispersion from our wastewater
                                                                                                                                                                                                                        Measures            treatment facility and waste retaining site.
                                                                                                                                                                                                                                            Takasago International Corporation Hiratsuka Factory Environmental Facilities Department
               Kanagawa Prefecture
                                                                                                                                                                                                                                            Sumio Ishiwa, Director
                                                                                                                                                                                                                     The wastewater from every Takasago plant is                    containers, cans filled with raw materials, and
                                                                                                                                                                                                                     processed as activated sludge and released                     bottles of samples. We built a tent-style ware-
                                                                                                                                                                                                                     into the public sewage system only after envi-                 house to hold strong-smelling waste and in-
                                                                                                                                                                                                                     ronmental criteria have been met. In scal 2008                 stalled two activated carbon deodorizing towers
                                                                                                                                                                                                                     we eliminated odor dispersion from the balanc-                 in the warehouse to prevent odors from leaking
                                                                                                                                                                                                                     ing tanks at our wastewater treatment facility by              out. Odors are measured in all of the deodoriz-
                                                                                                                                                                                                                     installing stainless steel lids.                               ing towers at the Hiratsuka Factory twice a year.
                                                                                                                                                                                                                         We followed a recommendation for odor pa-                  Activated carbon is replenished to prevent the
                                                                                                                                                                                                                     trols of the land ll site where we amass plastic               spread of odors whenever necessary.

                                                                                                                                                                                                                                                    Activated carbon deodor-
                                                                                                                 Takasago International Corporation                    Odor Patrols                                                              izing equipment installed in
                                                                                                                 Hiratsuka Factory
                                                                                                                 Yoshifumi Yuasa, Plant Manager                                                   Since becoming ISO 14001-certified,
                                                                                                                                                                                                  we have been conducting “odor pa-                  Tent-style warehouse for
                                                                                                                                                                                                  trols.” Today, we patrol outside the           storing waste. People and ve-
                                                                                                                                                                                                  factory twice a week and inside the            hicles use separate entrances
                                                                                                                                                                                                                                                 to prevent the spread of odors.
                                                                                                                                                                                                  factory once a week. The patrollers
                                                                                                                                                                                                  use odor-detecting equipment as well
                                                                                                                                                                                                  as their own noses, rating the strength
           We are putting in place new countermeasures                                                                                                                           of odors from 0 points (no odor) to 5 points (strong
                                                                                                                                                                                odor). Whenever a strength of 3 or higher is found, we

           to reach “zero odor complaints” from local residents.                                                                                                             treat the situation as abnormal and take immediate mea-

                                                                                                                                                                       sures for remediation. We also reached our primary ISO 14001
                                                                                                                                                                       goal for scal 2009, that of eliminating complaints from nearby                                       Highly impervious to aging, stainless
                                                                                                                                                                       residents regarding odors, as zero complaints were registered.                                     steel lids were adopted to cover the bal-
                                                                              top priority on measures to protect the environment.                                                                                                                                        ance tanks and prevent odor dispersion.
           Aiming to be a neighbor-friendly factory                               In scal 2009 we began an even more advanced “odor
           The Hiratsuka Factory, adjacent to the technical research lab-     elimination project.” This project is a three-year plan aimed

                                                                                                                                                                       Pick up
           oratory, specializes in avor and fragrance blends produced         at preventing odor generation and odor dispersion from the
                                                                                                                                                                                                       In addition to preventing odor dispersion by improving odor patrols and
           without the use of extracts. Hundreds, even thousands, of          factory by inspecting the sources of odors, making improve-
                                                                                                                                                                                                       odor countermeasures at our facilities, we are reducing the burden
           materials are handled at the factory. Yet the factory location,    ments, and taking measures to prevent their spread.
                                                                                                                                                                                                       on the environment by switching to electric powered forklifts and other actions.
           just across the road from a residential area, has compelled
           us from early on to take strict measures to handle odors. Our      Not merely “Kaizen for the sake of Kaizen”
           goal is to achieve zero odor complaints from local residents.      At the Hiratsuka Factory, we have set up an “Executive In-
                Measures to prevent odor dispersion that we have im-          spection Day,” a surprise inspection by the general manager
           plemented include a switch to a tent-style warehouse for           at different points around the factory each month to check
                                                                                                                                                                                       Action to         The adoption of battery-powered vehicles and painting
           the temporary storage of waste that generates strong odors         the status of the 5S/Kaizen* activities in daily operations. The                                       Environmental       the outside walls of the warehouse help to reduce CO2
           (such as raw material cans) and the adoption of highly airtight    reason for surprise inspections is to encourage the natural                                               Impact           emissions and create an environmentally friendly plant.
           stainless steel lids to cover the balance tanks at the waste-      implementation of 5S/Kaizen activities in daily business op-
           water treatment facility.                                          erations rather than an arti cial implementation only to sat-
                                                                                                                                                                                    At the Hiratsuka Factory many different efforts                 In 2008, we painted the outside walls and
               We are very careful about odors emanating from indi-           isfy inspection. The mission of the Hiratsuka Factory is based                                        are helping to reduce CO2 emissions.                       roof of our disaster prevention warehouse with a
           vidual facilities. Where coffee is roasted, we use a deodorizing   on the pursuit of business in tandem with environmental pro-                                              In scal 2009, three diesel-powered forklifts           high-re ection paint, creating an effective heat
           method that burns up odor and decomposes the odor molecules.       tection. A crucial requirement in carrying out this mission is                                        were converted to battery power, thereby re-               shield. Then in 2009 we painted the outside
           At our waste retaining site, activated carbon is used in de-       to provide guidance to assure that kaizen activities are not                                          ducing CO2 by approximately 32%. Now, about                walls of our hazardous materials warehouse and
           odorizing equipment to adsorb odors. In this way we use de-        merely carried out for their own sake. Today, we solicit the                                          one-third of the forklifts used in the factory are         one delivery center product warehouse. This ef-
           odorizing equipment to match the facility or manufacturing         cooperation of all of our employees in environmental endeav-                                          battery-powered and more will be converted in              fort has improved the effectiveness of air condi-
                                                                                                                                                                                    the future.                                                tioning and reduced energy consumption.
           process, and twice a year measure odor in exhaust steam.           ors, making these efforts enjoyable to participate in. We also
                Not only do we take environmental measures inside our         communicate to them how a factory must be run based on                                                                                                                                                                               36 forklifts are steadily
           facilities, but we also carry out neighborhood efforts. To im-     scienti c principles as we move forward with efforts in this                                                                                                                                                                      being converted from die-
                                                                                                                                                                                                                                                                                                                sel to electric power.
           prove communication with people in the neighborhood, we            area.
           patrol the perimeter of the factory to check for odors, clean
           roadside ditches outside the premises, and during local festi-
           vals provide a rest area for the public. We also raise employee
                                                                              *The 5S's are: seiri (sorting), seiton (setting in order), seiso (systematic cleanup),
           awareness about the factory's ISO-based environmental pol-         seiketsu (sanitizing), and shitsuke(sustainable discipline). The entire Takasago                                                                                                                                          The warehouse painted
                                                                                                                                                                                                                                                                                                     with high-re ection paint.
           icy. Fully aware that neglect of environmental issues would        group carries out kaizen activities in which the employees themselves create and
                                                                                                                                                                                                                                                                                                     Energy is saved in the sum-
                                                                              propose plans to address points requiring improvement in 5S and business ac-
           pose a threat to continuing business operations, we place          tivities.                                                                                                                                                                                                              mer with less needed for
                                                                                                                                                                                                                                                                                                     indoor cooling.

  3   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                                                                             4
Iwata Factory                                                                                                                                                                  We are striving to beautify the local environment through
                Shizuoka Prefecture
                                                                                                                                                              Iwata City
                                                                                                                                                                 Town          cleanups of the adjacent Iwai River and surrounding roads.
                                                                                                                                                                               Takasago International Corporation Iwata Factory Administration Department
                                                                                                                                                            Partner System
                                                                                                                                                                                Hitoshi Suzuki, Manager

                                                                                                                                                            In 2008, we joined the Iwata City       River, a waterway that runs along-
                                                                                                                                                            Town Beautification Partner Sys-        side the factory, and collect illegally
                                                                                                                                                            tem promoted by Iwata City. This        dumped trash. On monthly “safety
                                                                                                                                                            is a partnership between citizens       days” we clean inside and outside
                                                                                                                                                            and the local government aimed at       the factory all together. As a good
                                                                                                                                                            cooperative town building, focusing     corporate citizen, we contribute to
                                                                                                                                                            on the beauti cation and protection     the community through volunteer
                                                                                                                                                            of public spaces such as roads, riv-    activities of this type and efforts to
                                                                                                                                                            ers, parks, and green areas, to in-     promote environmental communi-
                                                                                                                                                            spire a fondness for the local area.    cation.
                                                                                                                                                                 Year by year concern for the                  Ef uent is treated thoroughly using
                                                                                                                                                            environment surrounding the fac-                 activated sludge that provides micro-
                                                                                                                                                            tor y has been rising, along with                bial action before being released into
                                                                                                                                                                                                             the Iwai River. We continue to carry out
                                                                                                                                                            interest in the environment among                cleanups of the river and surrounding
                                                                 Takasago International Corporation
                                                                                                                                                            neighboring residents. Around the                roads to protect aquatic creatures and
                                                                 Iwata Factory                                                                                                                               beautify the environment.
                                                                                                                                                            Iwata Factory we clean up the Iwai
                                                                 Michio Kato, Plant Director                                                                                                                                    Signboard standing on the bank
                                                                                                                                                                                                                             of the Iwai River behind the facto-
                                                                                                                                                                                                                             ry, from the Iwata City Town Beau-

            We continue to make additional efforts to
                                                                                                                                                                                                                             ti cation Partner System. The sign
                                                                                                                                                                                                                             reads, “We clean this path.”                                    Monthly cleanup by all employ-
                                                                                                                                                                                                                                                                                           ees on Safety Day.

            reduce environmental impact since acquiring
            ISO 9001 and ISO 14001 certi cation.
                                                                                                                                                            Pick up
                                                                                                                                                                                           As a member of the Iwata City Town Beautification Partner System,
                                                                                                                                                                                           we work with the local government and residents to beautify the environment,
                                                                                                                                                                                           while employing energy-saving, resource-conserving factory equipment
                                                                               environment by trimming branches and thinning out stands
            Aiming for harmonious coexistence with                                                                                                                                         to make the workplace more environmentally friendly.
                                                                               of hinoki cypress in the hilly surroundings. We also plant
            local residents and the town                                       pine trees as a wind break and participate in other activities
            The Iwata Factory manufactures aromachemicals and in-              sponsored by the Iwata City Greenery Promotion Commit-
            termediates for pharmaceuticals such as antibiotics. Its           tee. Communicating what we do at the factory through such
            main aromachemical product is ℓ-menthol*, a material               local interaction is important for our harmonious coexis-                                                                Environmental         Environmentally sound equipment is
            used in chewing gum, other foodstuffs, poultices, and so           tence with the community.
                                                                                                                                                                                                         precautions          creating an increasingly green factory.
                                                                                                                                                                                                          for factory
            on. Since achieving ISO 9001 certi cation in 1997 a rst in                                                                                                                                                        Takasago International Corporation Iwata Factory Production design & Engineering Department
            the domestic avor and fragrance industry and ISO 14001
                                                                               Forward-thinking environmental activities                                                                                  equipment
                                                                                                                                                                                                                              Etsuo Ito, Chief Electric Engineer
            certi cation in 2000, we have been working hard to reduce          leading up to the factory's 50th anniversary
            the environmental impact of our business activities through        The Iwata Factory was built in 1968, already more than 40                                                               In the many years since our acquisition of the               factory equipment toward the elimination of
            quality control strategies.                                        years ago. We are now in a phase leading up to the 50th an-                                                             ISO 9001 and ISO 14001 certi cations, we have                environmental impacts. Here are the efforts we
                                                                                                                                                                                                       continued to expand our efforts to improve our               made to reduce energy consumption.
                 We have come up with various ideas appropriate for each       niversary of the factory’s founding. Forward-thinking envi-
            facilities: We have adopted energy ef cient, resource-sav-         ronmental activities are more important than ever. To further
                                                                                                                                                                                                                                                      Of the 69 water seal vacuum
            ing measures that include the use of electrical transformers,      mitigate environmental impact, at the Iwata Factory we are                                                                                                           pumps used in depressurizing
                                                                                                                                                                                                                                                    the distillation equipment, 14
            cooling water equipment, and containers to store product           moving forward with the installation of LNG (liquid natural                                                                                                          were upgraded to dry-type
            prior to shipping. Materials no longer needed in the factory       gas) satellite stations in 2010. At present the factory’s boil-                                                                                                      vacuum pumps. This resulted
                                                                                                                                                                                                                                                    in a power savings of about
            have been utilized to set up a nighttime heat accumulation         ers are red by heavy oil, but by converting over to LNG                                                                                                              228,000 kWh, with 43,750 tons
            equipment.                                                         when it is time to replace boilers, we anticipate reducing                                                                                                           less wastewater produced.

                One area in which we have made signi cant improvements         CO2 emissions by 4,500 to 5,000 tons.
            is in odor control. The amount of raw materials and nished            We emphasize “team play” at the factory. By fostering in-
            products that we handle at the Iwata Factory exceeds the           dividual abilities, we are able to draw out employees’ unique
            amount handled at our other factories. We thus take mea-           strengths. The same holds true in environmental activities.
            sures such as the use of vent scrubbers special deodorizing        We have been raising awareness toward “energy-saving                                                                                       When expanding the
                                                                                                                                                                                                                       factory we improved the
            equipment that adsorbs odors by pounding with water and            actions to take now that will be good for the future,” and                                                                              coolant water equipment
            make sure there is no odor dispersion due to changes in            this has helped employees to understand the importance                                                                                  to achieve an 11% re-
                                                                                                                                                                                                                       duction in the amount of
            wind direction by conducting weekly “odor patrols” around          of taking environmental measures at a physical level. We                                                                                coolant water used and                     We replaced the stones covering the area near the boiler
                                                                                                                                                                                                                       a 38% decrease in cool-                 room and substation with green grass, thereby improving the
            the facility.                                                      are con dent that we will be able to continue improving the                                                                             ant water per unit, over a              ef ciency of heating and cooling. We are promoting green-
                Starting in 2008 we began to chair the Iwata City Envi-        workplace environment to encourage further action.                                                                                      period of 10 years.                     ing inside the factory as well. Other greening efforts include
                                                                                                                                                                                                                                                               sodding the red dirt eld and other small areas around the
            ronmental Protection Promotion Council. Every year we join                                                                                                                                                                                         factory with grass.
                                                                               * ℓ-menthol is an aromachemical in high demand worldwide that is main com-
            with city workers and local citizenry to help protect the local    ponent of Mentha arvensis and peppermint.

   5   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                                                             6
KashimaFactory                                                                                                                                                                                               Reducing
                                                                                                                                                                                                                                As a recycling effort we convert coffee grounds,
                                                                                                                                                                                                               Waste            oolong tea leaves, and other biodegradable materials
                                                                                                                                                                                                              through           into fertilizer that is supplied to local farmers.
                Ibaraki Prefecture
                                                                                                                                                                                                                                Takasago International Corporation Kashima Factory General Administration Department
                                                                                                                                                                                                                                Satoshi Takashina, Director

                                                                                                                                                                                                     Left: Coffee grounds placed in a eld. Right: Plant-based            In 2003 the factory received permission to pro-
                                                                                                                                                                                                  waste generated at the factory is delivered by dump truck to
                                                                                                                                                                                                  a contractor.
                                                                                                                                                                                                                                                                         duce and sell specially approved fertilizer. Since
                                                                                                                                                                                                                                                                         that time we have been recycling into fertilizer
                                                                                                                                                                                                                                                                         huge volumes of coffee and oolong tea waste
                                                                                                                                                    Pine trees planted by                                                                                                generated at the factory. Member farms of the
                                                                                                                                                 a horticultural farmer
                                                                                                                                                 using our special fertil-                                                                                               non-profit corporation Zero One mix the plant
                                                                                                                                                 izer. Kamisu City is well                                                                                               waste with chicken manure and use the fertilizer
                                                                                                                                                 known for its cultiva-
                                                                                                                                                 tion of pine and Chlo-                                                                                                  or sell it to horticultural or livestock farmers. The
                                                                                                                                                 ranthus.                                                                                                                cost of recycling biodegradable waste in this way
                                                                                                                                                                                                                                                                         is only one-tenth the cost of incinerating it.

                                                                                                                                                 Pick up
                                                                          Takasago International Corporation                                                                             Certified as part of the “Ibaraki Eco Business Establishment Registration System,”
                                                                          Kashima Factory
                                                                                                                                                                                         we make fertilizer out of coffee grounds and concentrate the effluent to reduce food waste,
                                                                          Tetsuharu Okazaki, Plant Manager                                                                               among many other ecological efforts that we continue to pursue.

                                                                                                                                                                             We are registered as an eco business establishment
            We are implementing 5S/kaizen activities with
                                                                                                                                                   Ibaraki Eco
                                                                                                                                                    Business                 that pays due attention to the environment and
            healthy input from young employees as we maintain                                                                                      Registration
                                                                                                                                                                             continue to actively implement energy-saving ideas.

            our eco-friendly factory record of zero emissions.
                                                                                                                                                                             Takasago International Corporation Kashima Factory General Administration Department
                                                                                                                                                                             Toshiyuki Takahashi, Manager
                                                                                                                                                                                                                                                                           This symbol represents the
                                                                                                                                                                                                                                                                        Ibaraki Eco Business Estab-
                                                                                                                                                 The Kashima factory was approved in                      to save energy in the area of lighting.                       lishment Registration System.
                                                                                sphere also makes it easy to implement ideas from young          2008 as one of the business establish-                                                                                 Some 906 business establish-
                                                                                                                                                                                                             Unused lights at lunchtime are turned
            Raising employee awareness through 5S/                              employees. Workplace awards (including an MVP award)                                                                                                                                    ments are currently registered
                                                                                                                                                 ments that engage in efforts to eliminate                off and energy-ef cient lighting xtures
            Kaizen activities                                                   and other means of giving recognition stimulate employee         environmental impact in Ibaraki Pre-                     have been introduced. By switching
                                                                                                                                                                                                                                                                        (as of July 2010).

            The Kashima Factory primarily manufactures avors for fa-            motivation. Effective kaizen activities were also implement-     fecture under the Ibaraki Eco Business                   over 62 fluorescent lights to energy-
            miliar food additives. These include citrus essences used in        ed at other factories, creating a synergistic effect.            Establishment Registration System.                       saving models, a reduction of close to
            soft drinks and sports drinks, natural extract liquids such as                                                                            The Kashima Factory continues to                    4.7 tons annually in CO2 emissions was
            vanilla and other spices for ice cream, and aqueous extract
                                                                                Making further progress as an Ibaraki Eco                        i m p l e m e n t m a n d a to r y t h e r m o s t a t   achieved. We will continue to carry out

            aromas for beverages such as coffee and oolong tea.                 business establishment                                           adjustment and unplugging of power                       and maintain such ecological efforts in
                                                                                                                                                 cords, and enforces rules to stop the                    combination with 5S/Kaizen activities.
               It is closer to a food factory than a food additives factory,    In 2008 the factory was certi ed under the Ibaraki Eco Busi-     practice of vehicle idling as far as is
            for which reason it is certi ed not only under ISO 9001 and         ness Establishment Registration System, so we must con-                                                                                     Left: Lunchtime at the column extraction factory. In scal 2007, 1,032 lights
                                                                                                                                                 practical, while making special efforts                                 were turned off every day during the lunch hour. Each light was rated at 32 W,
            ISO 14001, but also under SQF2000-HACCP standards                   tinue to move forward as an ecologically responsible place                                                                               and calculating 247 working days in a year, 8,156 kWh of energy was saved,
                                                                                                                                                                                                                         or approximately 4.7 tons of CO2 emissions. Right: In scal 2008 an “Eco-
            (regulating the manufacture of safe, high-quality food prod-        of business. In addition to converting coffee grounds into                                                                               Drive 10 Recommendations” campaign was run. In July 2009, Eco-Drive
            ucts) and provides assured food safety.                             fertilizer, we have also introduced ef uent-concentration                                                                                stickers were distributed, and they were put on 85 cars out of 132 (64%).
               Related to these activities, the Kashima Factory uses the        equipment to ef ciently concentrate post-extraction ef-
            slogan, “Look far with ISO and look near with eco-activi-             uent. These efforts have signi cantly reduced our food            Other Eco-Actions
            ties,” and has been working over the last several years to          waste, and in scal 2009 we again achieved zero emission.
            raise employee awareness. One area that has brought sig-                Now we are focusing our efforts on minimizing the inci-
                                                                                                                                                 Forklifts                                          Pull Tabs, Stamps, and PET Bottle Caps                            Effluent Concentration Equipment
            ni cant results is the group-wide engagement in 5S/Kaizen           dence of unacceptable or nonconforming products in the           In fiscal 2009 we replaced two LPG                 We collect pull tabs from aluminum cans, postmarked               Heat pump-type ef uent-concentration equipment
            activities. These efforts have been aimed at improving the          manufacturing process. Our efforts at the factory to elimi-      (Liquid petroleum gas) powered fork-               stamps, and the caps of PET bottles. In scal 2009 we              was introduced in scal 2008 to enable the factory
            work environment and boosting work productivity. In scal            nate the use of containers that become waste and to elimi-       lifts with two that run on battery pow-            collected 8.1 kg of pull tabs that were exchanged for             to reuse the heat generated by vaporization. By
            2009, employees submitted 265 kaizen activity proposals,            nate the production of other waste are indirectly linked to      er, thereby cutting CO2 emissions by               one wheelchair. The 458 postmarked stamps collected               concentrating the ef uent produced after extract-
                                                                                                                                                 2.8 tons annually. At present, 21 of 22            became funds to promote volunteer activities. The                 ing coffee, in 2009 food waste (coffee effluent)
            ten percent (33) of which were environment-related. Among           our environmental activities. Reducing environmental im-         forklifts used at the Kashima Factory                                                                                was reduced by 702 tons. The equipment is also
                                                                                                                                                                                                    12,000 PET bottle caps collected enabled the non-
            the many ideas submitted were: “Replace uorescent light-            pact as a natural extension of business activities is an ideal   are battery-                                       pro t organization Ecocap Move-                                   more energy efficient
            ing in the monitoring room with low-energy bulbs,” “switch          we pursue as a responsible business establishment.               powered.                                           ment to buy vaccines for 32 chil-                                 than previous equip-
            from diesel-powered to battery-powered forklifts,” and                                                                                                                                  dren in developing                                                ment, reducing CO 2
                                                                                                                                                                                                    countries. The                                                    emissions by 258.3
            “turn off the lights not used at lunchtime.” These valuable
                                                                                                                                                                                                    overall reduction                                                 tons annually.
            ideas were submitted together with calculations of pre- and                                                                                                                             in CO 2 emissions
            post-implementation costs, and estimates of energy usage                                                                                                                                was 95 kg.
            amounts and CO2 emissions. An open workplace atmo-

   7   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                                                              8
                                                                                                                                                                                                                                                                                   Pick up
                                                                  Protecting             Ensuring a stable supply of                                          Turning
                                                                                                                                                                                 Sorting waste and recycling it
                                                                 Underground             water for industrial use with                                      Waste into
                                                                    Water                                                                                                        using an “ECO Cart”.
                                                                                         an alternative water source.                                       Resources

                                                               At one time the Kakegawa Factory re-                                                      The Hadano Factory promotes waste
                                                               lied on water pumped up from a single                                                     collection and sorting with the use of an
                                                               underground source. But in 2009, to                                                       “ECO Cart” in the factory.
                                                                                                                                                                                                                                                                            Akira Kawabata, a for-
                                                               protect this resource, we built a large-                                                      We deliver spice powder refuse to an                                                                         mer employee currently
                                                               scale reservoir facility to intake water for                                              industrial waste processing company that                                                                         being a part-timer of the
                                                               industrial use from the Oi river system                                                   uses the energy from incineration to gen-                                                                        General Administration
                                                                                                                                                                                                                                                                          Department, collects and
                                                               located approx-                                                                           erate electricity, and the incinerated ash                                                                       sorts waste for recycling
                                                               imately 2 kilo-                                                                           becomes a raw material for manufactur-                                                                           using the ECO Cart.
                                                               meters away.                                                                              ing cement. Waste plastics are melt-solid-
                                                                                                                                                         i ed, becoming fuel for a paper company
         Shizuoka Prefecture

                                                                                                                                                         in Hokkaido. The burlap sacks in which
                                                                 At present, the water                                                                   raw materials are imported are reused as
                                                               use from these two lo-
                                                               cations is about 50:50.
                                                                                                                                                         ground cover to prevent weeds from grow-
                                                                                                                                                         ing, or are mulched into organic fertilizer
                                                                                                                                                         that is highly prized by fruit farmers.
                                                                                                                                                                                                                                                        Saving energy and recycling

                                                                                         We are limiting air pollution                                                                                             Waste plastics, which account
                                                                 Limiting Air
                                                                                         with the use of
                                                                                                                                                                                                                for about 80% of the waste from
                                                                                                                                                                                                                the factory, are converted into fuel.   resources using inventive means.
                               Takasago Chemical Corporation
                                                                                         high-performance scrubbers.                                                                                                                                    Takasago Spice’s Hadano Factory processes powder
                               Kakegawa Factory                                                                                                                                                                                                         spices such as black pepper, and manufactures curry
                               Seiji Sasaki, Plant Manager                                     In scal 2008, in an effort to better con-                                         Preventing odor leakage by                                             roux, health foods, and other products. Because the
                                                                                               trol any odor leakage or release of noxious                   Counter-                                                                                   factory handles natural materials, we began making ef-
                                                                                               substances, we replaced one of seven                          measures
                                                                                                                                                                                 improving manufacturing facilities.                                    forts to cope with environmental issues such as residual
                                                                                               currently operating scrubbers with a new
                                                                                                                                                                                                                                                        pesticides and abnormal weather phenomena that can
                                                                                               scrubber that eliminates nitrogen oxide
    We are reducing environmental                                                              (NOx), an air pollutant.                                  We also take environmental measures to control the dispersion of odors                         threaten the stability of harvests. We also perform regu-
                                                                                                                                                                                                                                                        lar group cleanups, both on the premises to boost work
    impact by cutting back on energy                                                                                                                     from spice products. Six years ago we installed a wet scrubber in each
                                                                                                                                                         factory building, and in recent years we made the manufacturing facili-                        productivity and outside to beautify the surroundings.
    use and employing eco-friendly                                                                                                                       ties airtight and installed a dust collector to prevent powder from escap-
                                                                                                                                                         ing. Our own "odor patrol" devised speci c standards for judging the
    manufacturing technologies.                                                                                                                          strength of odors and conducts

                                                                                                                                                                                                                                                                                                                    Kanagawa Prefecture
                                                                                                                                                                                                                                                                                                                    Kanagawa Prefecture
                                                                                                                                                         monthly patrols along the bound-
    Takasago Chemical Corporation’s Kakegawa Factory                                                                                                     aries of the factory premises.
                                                               Environmental Management
    is the manufacturing base primarily responsible for        Section
    synthesis operations for the Takasago Group. Its main      Motoshige Takaba,
    manufacturing category is organic electronic materials
    (OPCs) and pharmaceutical intermediates. We use pro-
                                                                                                  A dedicated scrubber was also newly installed to         Wet scrubbers are part of a highly ef cient
    prietary catalytic technologies to improve reaction ef -                                   prevent release into the air of trichlorosilane and its   deodorizing system that uses alkali to neutral-
    ciency to reduce environmental loads, starting from the                                    resolvent, hydrogen chloride.                             ize odors contained in powder dust.

    initial design of processes. After use, organic solvents
    are collected and reused. We also try to keep industrial     Other Eco-Actions                                                                          Other Eco-Actions
    waste to a minimum and make a special effort to con-
    tribute to the local community by joining in cleanups of   Implementing environmental measures                                                       Slashing power consumption with
    illegally dumped waste in the area.                        one after another.                                                                        energy usage alerts.
                                                               Since acquiring ISO 14001 certi cation in 2005, our employees have gained                                                                          Efforts are being made to
                                                               a greater awareness of the environment. In recent years, we have not only                                                                          cut down on power con-
                                                               been complying with the Act on the Evaluation                                                                                                      sumption in administrative
                                                               of Chemical Substances and Regulation of their                                                                                                     areas as well as in manu-
                                                               Manufacture, etc., but have also been doing as                                                                                                     facturing. We use indoor
                                                               much as possible on other fronts. We take mea-                                                                                                     lighting selectively and have
                                                               sures such as collecting worn out safety shoes                                                                                                     set the upper limit on power
                                                               for recycling, and we reuse organic solvents. We                                                                                                   usage to 550 kilowatts per
                                                               have also doubled our ef uent treatment capac-                                                                                                     day. Now we have an alarm

                                         Pick up
                                                               ity as part of investing in environmentally sound                                                                                                  system that alerts us when
                                                               infrastructure.                                                                                                                                    540 kilowatts has been
                                                                                                                                                                                           Affairs Department
                                                               Environmental Management Section                                                                                            Haruo Aihara,
                                                               Kazuhiro Kobayashi, Chief                                                                                                   Manager

                                                                                                                                                                                                                                                        Takasago Spice Co., Ltd.
                                                                                                                                                                                                                                                        Hadano Factory

9    The Takasago Group Environmental Report 2010                                                                                                                                                                                                       Katsumi Yamaguchi, General Manager
                                                                    Pick up                                                                                       The Effective
                                                                                                                                                                                     Actively reassessing energy                                                                               Pick up
              Shizuoka Prefecture
                                                                                                                                                                  Utilization of
                                                                                                                                                                     Energy          sources.

                                                                                           An extended deodorizing line and                                      In 2008 we made a full switchover from the use of LPG
                                                                                                                                                                 (Liquid petroleum gas) to LNG (liquid natural gas), resulting
                                                                     Odor Counter-
                                                                                           completely airtight system are used                                   in a 15% reduction in CO 2 emissions. In the boiler we use
                                                                                           to prevent odor leakage.                                              a plate heat exchanger that offers excellent heat transfer
                                                                                                                                                                 performance, aimed at the energy-ef cient use of energy
                                                                    The steam discharged from the coffee grounds after extraction is
                                                                    sprayed with water when it goes through the deodorizing line and
                                                                    odors are adsorbed. We lengthened the deodorizing line by 60% and                                                                                                     LPG boiler equipment. CO 2 emissions were
                                                                                                                                                                                                                                       reduced by approximately 1/4th the size of Tokyo
                                                                    installed spray nozzles in eight new locations. We also installed an air-                                                                                          Dome in scal 2009.
                                                                    tight cover to the bypass section. The well water used for spraying is
                                                                    sent to the wastewater treatment facility where it is reused for dilution
                                                                    before being discharged into the sewage system.

                                                                                                                                                                  Odor Counter-      Deodorizing in two stages with
                                                                                                                                                                    measures         scrubbers.                                                               Aiming to abolish land ll waste
                                                                                                                                                                                                                                                              by promoting more recycling.
                                                                                                                                                                 We pay careful attention to odor                                                             At Takasago Food Products we manufacture powder
                                    Takasago Coffee Co., Ltd.
                                                                                                                                                                 countermeasures and have installed
                                    Iwata Factory                                                                                                                                                                                                             spices that are used in many varieties of foods, along
                                                                                                                                                                 scrubbers in each factory building.
                                    Fujio Takihira, Plant Manager       Coffee grounds from the ex-                                                              Especially in our factory that manu-
                                                                                                                                                                                                                                                              with food additives such as fruit juices, natural avor-
                                                                    traction column are discharged in
                                                                                                                                                                 factures powder spices, odors go                                                             ings, and food dyes. We are constantly aware of and
                                                                    three locations. The space is large
                                                                    enough to hold the trucks that de-                                                           through primary deodorizing inside                                                           work toward easing environmental impact and function-
                                                                    liver the grounds.                                                                           the factory and then again using a                                                           ing in harmony with the local community. In all of our
       We are working all together                                                                        Environmental Facilities Section
                                                                                                                                                                 large deodorizing tower. In process-                                                         manufacturing-related activities we strive to use energy
                                                                                                                                                                 ing coffee grounds and treating highly
       on odor countermeasures and                                                                        Yoshihiro Hirano
                                                                                                                                                                 concentrated ef uent, the line is shut-
                                                                                                                                                                                                                                                              effectively, save resources by recycling, and minimize
       converting waste into usable                                                                                                                              tered so that odors cannot escape,
                                                                                                                                                                 and a duct leads to the dryer.
       resources.                                                                                                                                                    We have also changed the buffer
                                                                                                                                                                 material and use alkali neutralizers on
       Takasago Coffee’s Iwata Factory produces regular cof-                                                                                                     products that produce strong odors
       fee roasted coffee beans in kraft paper bags and coffee                                                                                                   for effective deodorizing. Measured

                                                                                                                                                                                                                                                                                                     Shizuok a Prefecture
                                                                                                                                                                                                                                                                                                     Shizuok a Prefecture
       extract from coffee beans. The extract is used in cof-                                                                                                    odor values continue to drop year by
                                                                       Other Eco-Actions                                                                                                                        Strongly aromatic powder spices
       fee and milk-based drinks, frozen desserts, etc. Cof-                                                                                                     year thanks to these and other efforts.     are further deodorized using a large
                                                                                                                                                                                                             deodorizing tower.
       fee gives off a distinctive aroma, so we conduct “odor       Greening the Factory Premises by 25%!
       patrols” on a daily basis and take measures to coun-
                                                                    Under Japan’s Factory Location Act, a minimum portion of factory grounds
       teract odors in each process of roasting, grinding, and      (currently 25%) must be used for plants or other greenery. To comply with
       extracting.                                                  this regulation, we use plantable concrete blocks for the parking lot which
          At the roasting factory, a platinum catalyst is used as   allow green grass to grow in the gaps between concrete blocks. The con-
       an oxidant in combustion-type deodorizing equipment          nected green strips that are formed create a nice, green area on the factory                   Other Eco-Actions
       to decompose odors. The exhaust steam from grinding
       the roasted beans is passed through a layer of water                                                                                                      Tea growers are using our special fertilizer
       in a device known as a “water scrubber” for odor ad-                                                                                                      In addition to our fer tilizer
       sorption. Also, the steam discharged from the coffee                                                                                                      brand “TFP 1,” we have reg-
                                                                                                                                                                 istered the ordinary fertilizer
       grounds after extraction is cooled under a water shower                                                                                                   “Kocha Kasu” and the special
       and adsorbed.                                                                                                                                             fertilizer “Coffee Kasu.” For
           In 2010 an expansion pipe was installed as part of                                                                                                    convenience we use private
       measures to improve the line and strengthen odor pre-                                                                                                     dump trucks to supply fertil-
                                                                                                                        For the parking lot, instead of grass,   izer to nearby farms.                                            Coffee Kasu is
       vention measures. Also, by using circulated water in                                                           which requires periodic maintenance,                                                                    highly acclaimed for
                                                                                                                      we laid plantable concrete blocks and                                                                   its ability to stimu-
       certain areas we were able to cut down on our use of                                                           our employees seeded the sections                                                                       late plant growth.
                                                                                                                                                                                                   Environmental Protection
       water. We plan to implement many other environmental            We laid sod mats which are designed to be with clover.
                                                                    laid over concrete, creating over 10 m 2 of green
       measures to ensure that the local community fully ac-        space.                                                                                                                         Tsuneo Hirai,
       cepts the factory.                                                                                                                                                                          General Manager

                                                                                                                                                                                                                                                                     Takasago Food Products
                                                                                                                                                                                                                                                                     Co., Ltd.
                                                                                                                                                                                                                                                                     Yasuhira Okamoto,
                                                                                                                                                                                                                                                                     Plant Manager
  11    The Takasago Group Environmental Report 2010
          Takasago’s plants and business establishments overseas are as committed as
          their Japanese counterparts to reducing their environmental footprint.
                                                                                                                                                                             Shanghai Takasago-Union Fragrances & Flavors Co.,Ltd.
          While implementing improvements parallel to those in Japan,
          they are also taking their own unique steps as described here.
                                                                                                                                                    Shanghai                 Enhancing safety measures in pursuit of
                                                                                                                                                                             further improvements.
                                Takasago International (Singapore) Pte., Ltd.

           Singapore            Taking extra steps to protect the environment                                                                     Takasago’s Shanghai plant is a primary supplier to major
                                                                                                                                                  multinationals. The Shanghai Expo took place during the
                                                                                                                                                                                                                                   down, thus helping prevent accidents on site. The brightly
                                                                                                                                                                                                                                   colored sign immediately catches drivers’ attention at night
                                by raising employee awareness.                                                                                    year, and environment, health, and safety measures have
                                                                                                                                                  assumed greater importance than ever as Takasago’s busi-
                                                                                                                                                                                                                                   as well as during the day.
                                                                                                                                                                                                                                       In addition, the Shanghai plant will continue to give prior-
                                                                                                                                                  ness operations in China expand.                                                 ity to wastewater processing and deodorization, as well as
                                                                                                                                                      An evacuation drill is held every year to practice safety                    take further steps to enhance employee safety.
          Eco measures implemented,                                             was brought to the notice of employees by poster and e-           procedures during emergencies and raise safety awareness
          a new committee formed                                                mail, and they were urged in so far as possible to avoid us-      among employees. Signs and lighting showing the positions
                                                                                ing electricity at the designated hour — to turn off their TVs    of the emergency exits and urging peo-
          — all in pursuit of achieving certification
                                                                                and computers and spend the time with their families. This        ple to evacuate swiftly play a key role in
          Takasago’s Singapore plant is striving to achieve certi ca-           was a chance for them to start thinking eco in their private      ensuring safety.
          tion for ISO 14001 and OHSAS 18001 which supplement                   lives as well.                                                        The entrance to the plant is equipped
          ISO 9001 and HACCP by the end of August 2010.                             On Earth Day employees were encouraged to avoid the           with an alarm warning drivers to slow
              ISO 14001 and OHSAS 18001 of cially recognize, and                elevator and take the stairs, while a contest was held for
          reinforce, a company’s efforts and achievements in maxi-              production staff on the tricks to eco-friendly living. World
          mizing safety for workers and visitors on site and in minimiz-        Environment Day, on June 5, was also advertised by poster
                                                                                                                                                                                                        Sign and lighting identifying an emergency exit.      An alarm warns drivers to slow down.
          ing impact on the environment (the soil, water, atmosphere,           and e-mail.
          people, and ora and fauna).                                               The Singapore Takasago team will keep up its environ-
               To ensure that certi cation is fully achieved by the tar-        mental conservation efforts on all fronts.
          get date, an outside consultant has been engaged to advise
          each location, and de nite progress has been made. As-                The 5 S’s — raising the awareness of
          sessments of impacts and risks at all levels have already             each and every employee
          been completed, and an EHS committee has been estab-                                                                                                               Dan Kaffe (Malaysia) SDN BHD

          lished. Both sites in Singapore have implemented numerous             The 5S Committee continues to support implementation of
          measures to enhance safety and environmental protection.
          Efforts to meet the required standards are being backed up
                                                                                environmental and safety systems. By raising employee
                                                                                awareness, it facilitates recycling efforts and creates a safer
                                                                                                                                                    Malaysia                 Pulling out all the stops to achieve conformity
          by the existing safety committee and its associated activi-
          ties, along with the 5 S’s.
                                                                                workplace environment for workers and visitors. On 5S Day,
                                                                                which took place in October, the winners of the Logo Design
                                                                                                                                                                             with local environmental regulations.
                                                                                Award and the Best Project Award were honored, further
          Green Committee spearheads                                            boosting awareness among staff. The 5 S’s, an indispens-
          company-wide eco efforts                                              able part of the company’s philosophy and culture, will be        Takasago’s Malaysian plant, which produces liquid coffee                         roasting machine, which allows production of a wide range
                                                                                maintained in 2010 and beyond.                                    extract and instant coffee, is taking measures to protect the                    of avors through various roast settings, and makes it pos-
          The Takasago Singapore Green Committee launched two                                                                                     environment in readiness for ISO 14001 certi cation, while                       sible to achieve emission controls in conformity with Malay-
          years ago is vested with the task of supporting the cam-                                                                                steadily implementing a small-scale improvement program.                         sian environmental standards. Operation commenced after
          paign for ISO certi cation. The committee has taken many                                                                                   The plant’s production capacity has increased 150%                            adequate product testing, trial runs, and ne-tuning, and
          essential steps in the areas of recycling, environmental con-                                                                           since the addition of a second processing line in 2009. Of                       quality coffee beans are now produced in large quantities.
          servation, and raising awareness to ensure all the criteria for                                                                         particular signi cance is the installation of a fully automated                  And the new boilers burn far less fuel than before, reducing
          certi cation are met.                                                                                                                                                                                                    CO2 emissions.
              The committee also spearheads the Switch Off Cam-                                                              Thank you sticker
          paign, which calls on people to switch off the lights when                                                       on the staircase.
          they leave the room. Stickers have been put up in conspicu-
          ous locations and e-mail reminders are sent out regularly, all           Sign on the elevator announcing today
          in an effort to raise awareness among employees and alter             is Earth Day and asking people whether
                                                                                they intend to take the lift or stairs.
          their behavior. This campaign is designed not only to foster
          eco-friendly operations but also the habit of saving energy.

              Advantage has been taken of several worldwide eco
                                                                                                                                                    Fully automated coffee               The new four-path boiler, already up
          events to raise employee awareness and contribute directly                                                                              roasting machine.                   and running, is used on both production
          to conserving the environment. Earth Hour, in March 2010,                                                                                                                   lines.

13   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                                     14
                                    Takasago International Corporation (U.S.A.)                                                                                          Takasago De Mexico S.A. De C.V.

             U.S.A.                 Reducing impacts on the environment                                                                              Mexico              Saving energy and conserving the environment
                                    by using energy more ef ciently.                                                                                                     by systematically implementing the basics.

          A full range of eco measures and                                        Cutting back power use with                                      Protecting the environment through                                 Reducing water use and tapping
          programs in place                                                       energy-saving technology                                         the combined effect of water and                                   natural energy — a boon to both
                                                                                                                                                   power conservation                                                 environment and bottom line
          In 2009, in an effort to raise awareness about energy use               At the avor plant, reductions in nitrogen oxide (NOx)emis-
          and the importance of environmental conservation, Takasa-               sions and natural gas use have been realized by installing a     Takasago’s plant in Mexico used to water the lawn with             The plant’s clean-in-place (CIP) system requires 12m 3 of
          go U.S.A. launched an Energy Management Team, which                     new, more energy-ef cient model of industrial steam boiler.      drinking water, but now it purchases cheaper recycled water        drinking water per cycle, but the water used during the third
          directly oversees energy use and ecological programs (spe-              Furthermore, the lighting system is now equipped with au-        for that purpose instead. Rainwater accumulated in the 11m 3       stage of the cycle can be recycled for reuse at the next
          ci cally recycling).                                                    tomatic controllers with built in motion sensors and photo-      water tank is used as well.                                        stage. A total of 487 cleaning operations using the anhydro
              Ongoing training of building management staff at all lo-            tubes, while large load circuits have been separated off in a        In the past bulbs consuming 40W of power each were             spray dryer are planned for 2010, and it is expected that 6m 3
          cations has instilled a greater sense of responsibility about           bid to curb excessive power consumption.                         used, but with the installation of energy-ef cient equipment       of water can be conserved per operation, saving a total of
          energy and the environment.                                                 At the fragrance plant, reductions in electricity use have   these have now been replaced by 32W bulbs.                         2,922m 3 of water.
                                                                                  been achieved by adopting a variable frequency drive de-            There are 150 light xtures in use at the company, and the          Moreover, the boiler is shut down in spring and summer,
          Progress made in saving energy by taking                                sign for large-scale motors and upgrading the warehouse          switch from two 40W bulbs to two 32W bulbs for each cuts           and the hot water needed for the cleaning process is heated
          bold action, raising employee awareness                                 lighting system.                                                 power consumption by 2,400W. Assuming the lights are on            using a solar water heater.
                                                                                      When purchasing energy, Takasago U.S.A. is careful to        ten hours a day, that adds up to a reduction in electricity use
          Electrical power use was cut by 5% in 2009, use of natural              select suppliers that buy energy produced with clean tech-       of 5,760 kWh per year.                                             Outcomes of environmental conservation
          gas by 27%. These reductions were achieved by limiting or               nology. It also takes part in an energy program in partner-                                                                         measures in numbers
          optimizing running of heating, ventilation, and air condition-          ship with energy suppliers and the New Jersey Of ce of
          ing equipment — boilers, cooling apparatus, air condition-              Clean Energy.                                                                                                                       1. Drinking water consumption reduced by 3,482m 3 per
          ers, compact heaters — in both the of ce and the fragrance                 When launching new projects for the future, the company                                                                             year (equivalent to the amount consumed daily by 12,616
          plant. Further reductions were achieved by posting no-                  gives rst priority to adopting energy-ef cient, eco-friendly                                                                           Mexicans).
                                              tices next to every light           equipment. It is also pursuing research on the potential of                                                                         2. Power consumption reduced by 22,392 kWh and CO2
                                              switch in every location            alternative energy sources.                                                                                                            emissions by 14 tons per year (equivalent to the monthly
                                              urging staff to conserve                                                                                                                                                   power consumption of 93 Mexican households).
                                                                                                                                                                                     Automatic sprinklers in opera-
                                              energy.                             A little ingenuity goes a long way                                                            tion at night, with control switch.   3. Using a solar water heater instead of a boiler reduces
                                                                                                                                                                                                                         CO2 emissions by 9 tons per year.
                                                                                  The company e-mail system has been enlisted in the ef-
                                                                                  fort to conserve natural resources. To raise environmental                                                                             Takasago De Mexico is committed to achieving further
                                                                                  awareness, all e-mails automatically include the message,                                                                           such gains through sustained efforts to protect the environ-
                                                                                  “Save paper. Don’t print e-mails unless absolutely neces-                                                                           ment and save energy.
                                                                                  sary.” In addition, the use of styrofoam cups, which are bad
                                                                                  for the environment, has been forbidden at all company lo-
                                                                                  cations; instead mugs bearing the Takasago logo have been
                                                                                  issued to all employees. As a means of conserving water,
                                                                                  meanwhile, of ce washrooms are being equipped with wa-
                                                                                  ter-saving valves.
                                                                                      Takasago U.S.A. intends to keep up these efforts to
                                                                                                 combat global warming and save energy.                                                                                CIP system at Takasago’s
                                                                                                                                                                                                                      Mexican plant.
                                                                                                                                                                                                                                                   Solar water heater at Takasago’s
                                                                                                                                                                                                                                                  Mexican plant.

                 Steam boiler designed to reduce
              nitrogen oxide emissions and natu-
              ral gas use.

                                                                                                 A highly energy-efficiency
                                                                                              air compressor.

15   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                      16
                                     Takasago Europe G.m.b.H.                                                                                                                            Takasago International Chemicals(Europe)S.A.

           Germany                   Protecting the environment on a daily basis                                                                                       Spain             Respecting the environment and the community
                                     with ef cient systems for conserving energy and                                                                                                     while creating products of use to society.
                                     reducing CO2 emissions.
                                                                                          substance is spilt, absorbent material is available in each              The plant in Spain, which serves as Takasago Internation-            and the health of employees as part of its mission of sup-
          Meticulous measures for reducing                                                area to wipe it up. Finally, water piping is equipped with cut-          al’s aroma chemicals production hub in Europe, has been              plying safe, reliable products.
          greenhouse gases and conserving energy                                          offs to prevent any leaked toxic agents from owing into the              taking steps to protect the environment, enhance safety,
                                                                                          public sewers or the public sewage treatment plant.                      and promote the health of employees in line with the EHS
          During construction of the new company building on the site                         These cutoffs also function in the event of a re, pre-               Statement adopted in 2008.
          of the plant in Germany, environmental considerations were                      venting the water and foam used to extinguish the re from                    Following the switch to natural gas boilers, which reduce
          factored in right from the design stage. The new laboratory                     penetrating groundwater and soil.                                        the burden on the environment, the remaining heavy oil
          built in 2009 has been equipped with ventilation incorporat-                                                                                             boiler underwent refurbishment in 2009. This upgrade is
          ing a heat-recovery system, opening the way to major gains                      Pursuing CSR through                                                     expected to reduce heavy oil consumption by more than
          in energy conservation.                                                         active community participation                                           half. Waste oil from the plant will consist purely of hydro-
              The ventilators are tted with exhaust lters to reduce CO 2                                                                                           carbons, making for a much cleaner fuel than the heavy oil
          emissions. These lters are changed regularly, and soiling                       As a responsible corporate citizen, Takasago Europe                      used before.
          is automatically monitored; if dirt builds up before it is time                 G.m.b.H fully backs up employees who participate in com-                    Production processes for over a hundred items are being            Flu shot notice.
          for a regular lter change, an alarm sounds and the lter is                      munity emergency response programs like the volunteer                    systematically reviewed, and on-site inventory of interme-
          changed immediately.                                                              re brigade. Employees are exempted from duty when tak-                 diates reduced, in an effort to conserve energy and raw
              Installation of ventilators is now complete in all structures               ing part in re ghting drills or rescue activities. They put              materials and ensure a safe working environment.
          built since 1999. An energy-ef cient ventilation system using                   the expertise so gained to good use on the job through                       Other steps are also being implemented to ensure safety
                                                                                                                                                                                                                                                                      The refurbished boiler will have more than
          recycled air is now available for cooling facilities as well.                   their role in formulating risk avoidance and rst aid plans.              and protect the health of workers. These include providing                                       double the annual waste oil processing capacity,
                                                                                                                                                                                                                                                                    and save energy too.
                                                                                              Besides taking steps to reduce its environmental foot-               employees with training and giving them u shots. Takasa-
          Taking all possible steps to prevent                                            print, the company thus also strives hard to be part of the              go’s Spanish subsidiary will further strengthen efforts in
          soil and water pollution                                                        community.                                                               the areas of the environment, safety, workplace conditions,

          The company implements safety measures of the highest
          standards in the quest to prevent soil and water pollution or
          minimize its effects. To that end it mobilizes a full range of
                                                                                                                                                                   Overseas Takasago Locations
          technologies.                                                                                                                                            Outside Japan, Takasago has over thirty locations scattered across the ve continents,
              All production or storage areas where hazardous sub-                                                                                                 including full-scale facilities complete with research laboratory and production plant.
          stances are used or stored are equipped with ltration                                                                                                    Among the countries where it has a presence: U.S.A., Mexico, Brazil, France, Germany,
          sumps. The oors are covered with a special corrosion-                                                                                                    Spain, Singapore, and China.
          resistant waterproof coating, which stops cor-
          rosive substances from leaching into the soil.
          Just in case a hazardous liquid does seep out,
          doors and gates are tted with hand-operated                                                                                                                     France
          emergency shutters, which can be shut to pre-                                                                                                                                                                                                                         U.S.A.       P15
          vent contamination of other areas. In the un-
          likely event that a small amount of a hazardous                                                                                                                                Germany                     China Shanghai          P14

                                                                                                                                                                          P18                    Malaysia             China Guangzhou                                                                    Brazil
                                                                          Emergency shutters and waterproof oor coating prevent leakage of hazardous substances.                                                                                                               Mexico
                                                                                                                                                                                                                                                       Please see following URL about the site report of each factory.
           Rooftop of the new company building, with ventilation equip-
          ment for the heat-recovery system.                                                                                                                                                                                                       http://www.takasago.com/aboutus/
                                                                                                                                                                                                                                                   About us    Environment,Health and Safety        Site Reports

17   The Takasago Group Environmental Report 2010                                                                                                                                                                                                                                                                        18

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