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Global Warming Prevention : Activities in FY2010

Olympus aims to reduce environmental loads by moving away from business models based on the mass-consumption of finite resources, and to contribute to the formation of a recycling-based society capable of sustainably using a wide variety of resources, including energy, water, minerals and biological assets.

Long-Term Targets

Olympus emits greenhouse gases through the use of energy and CFC substitutes in its business activities. Global warming is becoming an increasingly serious problem, and we regard the reduction of greenhouse gas emissions as a vital priority. We are working actively to achieve our long-term goal of reducing total CO2 emissions throughout product life cycles by 50% from the fiscal 2007 level by fiscal 2020.

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This logo symbolizes the Olympus Group's commitment to its long-term environmental target for the prevention of global warming.

Responding to Climate Change

Climate change is likely to cause extreme climatic trends and weather events in the future, including concentrated heavy rainfall, floods, droughts, and temperature changes. Olympus is reviewing its position in relation to current and future changes and regulatory systems.

Physical Changes, Cost Changes
Abnormal weather patterns could cause physical damage to infrastructure and other assets, while weather events, such as concentrated heavy rainfall and floods, could lead to delays in deliveries of production supplies and products for sale. Olympus is mitigating this risk by diversifying its transportation networks.

Countermeasures against climate change are also expected to result in higher energy prices, leading to increased operating costs at business sites. The Olympus Group's response to this problem includes an increased commitment to energy conservation efforts.

In addition to these risks, there are also likely to be increased opportunities to supply Olympus products and services, such as non-destructive testing equipment, because of the heightened possibility of damage to water pipes and other infrastructure as a result of abnormal weather events.

Compliance with Global Warming-Related Laws and Regulations
In Japan, the Olympus Group is developing energy management systems and facility management standards in response to amendments to the Act on the Rational Use of Energy.

Under its Basic Environmental Ordinance, the Tokyo Metropolitan Government has introduced restrictions on total greenhouse gas emissions and a waste trading system. Infringements against these requirements, which have been in effect since in April 2010, are punishable by fines. The Research and Development Center in Hachioji (Ishikawa/Utsugi) is required to reduce its total CO2 emissions by 8% compared with the base level over a five-year period from fiscal 2010 to fiscal 2014. To ensure that this task is carried out as efficiently as possible, the Center has formed a CO2 Reduction Promotion Committee with members from each department. This committee has started to implement specific measures, including the development of an emission reduction plan.

Because of measures implemented when new buildings were constructed, current estimates indicate that it should be possible to achieve the required reductions without purchasing emission rights.

Results of Activities in Fiscal 2010

Manufacturing-related CO2 emissions: 100,071 tons 16% reduction from fiscal 2007 level

FY2014 target: 20% reduction from fiscal 2007 level

Total CO2 emissions from business sites in fiscal 2010 amounted to 100,071 tons, a reduction of 16% compared with fiscal 2007 and 7% compared with fiscal 2009. In addition to production cuts caused by the recession, these reductions were also the result of day-to-day energy conservation efforts and other measures, including a shift to the use of natural energy.

Olympus stepped up the pace of its efforts to improve the environmental performance of its manufacturing activities. Measures include the use of power monitors to identify electricity wastage, and the development of alternative technologies to replace non-energy greenhouse gases, such as HFC, PFC and SF6, which are used in cleaning, semiconductor etching and other processes. In March 2011, Olympus completely eliminated the use of HFC solvents for lens cleaning processes.

Olympus will continue to accelerate its efforts to improve the environmental aspects of its manufacturing activities. Specific measures in relation to electric power, which accounts for the bulk of energy consumption, include the use of power monitors to identify electricity wastage, and the development of manufacturing technologies that contribute to energy and resource conservation.

Energy Consumption

(Unit: TJ)

    Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010




Direct
City gas 60 56 62 87 104
LPG 22 26 33 23 33
LNG 0 14 49 44 46
Heavy fuel oil 151 138 82 50 54
Kerosene 12 11 11 11 1
Diesel fuel 224 226 202 205 176
Subtotal 469 472 440 421 415
Indirect Electricity 1,417 1,545 1,553 1,479 1,425
Total 1,887 2,017 1,993 1,900 1,839

CO2 Emissions at Manufacturing Sites

CO2 Emissions at Manufacturing Sites

CO2 Emissions Generated/Not Generated from Energy

CO2 Emissions Generated/Not Generated from Energy

* Changes at all manufacturing sites only.
* Olympus reports in the following categories under the GHG Protocol.
Scope 1: Greenhouse gas emissions resulting from the direct use of fossil fuels
Scope 2: Greenhouse gas emissions resulting from secondary utilization, such as the purchase of electric power
* The Greenhouse Gas Protocol conversion coefficients are as follows.
Japan: Calculations for items other than electric power were based on the conversion coefficient stipulated in the Greenhouse Gas Emission Methodology and Reporting System. Conversion coefficients published each year by the Federation of Electric Power Companies of Japan were used for electric power. The electric power figures for FY2010 were calculated using the FY2009 coefficient.
Overseas: Calculated using the Greenhouse Gas (GHG) protocol conversion coefficient as officially announced.(http://www.ghgprotocol.org)
* Calculated using the figures stipulated in the enforcement order for the Law Concerning the Promotion of the Measures to Cope with Global Warming.
* CO2 generated from energy: Amount of greenhouse gas emissions generated by using energy (scopes 1 and 2 in accordance with the GHG Protocol).

Energy Conservation Initiatives

Implementation of Environmental IE  (May - September 2010)
Environmental IE is a method for visualizing environmental loads and identifying technical issues on production lines. Olympus developed its own environmental IE methods and implemented an employee education program in preparation for the introduction of this technology at all plants in Japan.

Olympus Production Innovation Meeting  (February 2011)
The main theme for the meeting was "Manufacturing for the Environment - Becoming the Best Manufacturing Group in the World." Participants presented case studies relating to production innovation on a global scale, including micro-factories and environmentally-conscious factories.

Promoting Electricity Saving at Work and Home  (March 2011)
Olympus produced educational materials about electricity saving and energy conservation measures that can be implemented at work or at home. This initiative was undertaken in response to major electricity shortages caused by the Great East Japan Earthquake, and as a way of raising employee awareness about the need to conserve electricity and energy.

Utilization of Natural Energy

Installation of Solar Panels
Olympus Surgical Technologies Europe (OSTE) has business sites in Germany, the Czech Republic and elsewhere, at which it develops, manufactures, sells and services medical endoscopes. It is implementing a range of environmental measures based on local conditions at its facilities. The company incorporated every possible environmental measure into a new service base opened in the Czech Republic in November 2009, with the aim of achieving the first Class A environmental rating for an industrial facility in Central Europe. Energy-related measures include the use of energy-efficient lighting systems, heat pumps and heat recovery compressors, as well as the installation of rooftop solar panels to generate electricity and collect heat. These measures have reduced power demand at the facility by 74% compared with a conventional facility.

Green Electricity Purchasing
In addition to its efforts to reduce energy consumption at its development, production and sales site in Germany, OSTE also worked with Olympus Europe Holding GmbH, the holding company for European subsidiaries, to implement an electric power purchasing policy under which it would purchase only naturally produced hydroelectric power. In this way, CO2 emissions relating to electric power were reduced to zero, reducing total emissions by approximately 2,700 tons per year.

Green electricity certificates issued to Olympus Europa GmbH (OEH) and OSTE

Green electricity certificates issued to Olympus Europa GmbH (OEH) and OSTE

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