DOWA Corporate Social Responsibility Report 2010

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Environmental Management

Our Efforts toward Preventing Global Warming------------------------------------------------------------------------------------

Okayama City, Okayama Prefecture Production of biodiesel fuel (BDF) started

Bio-Diesel Okayama was selected as the model business area experimenting with the use of bio-fuel by the Ministry of Agriculture, Forestry and Fisheries of Japan. Bio-Diesel collects used cooking oil from households, school food services, supermarkets and food manufacturing plants jointly with Okayama City to make bio-fuel.

The company has produced 200 kL so far (at the end of March 2010) and the fuel is used in 80 garbage trucks in Okayama City. In the future it is planning to expand the annual production to 1,200 kL and contribute to effective utilization of used cooking oil and reducing CO2 emission.

Akita, Chiba and Okayama Prefectures Collection and Disposal of CFC by Destroying It

CFC used in refrigerators and air conditioners, if released, to the atmosphere, have a great impact on the environment, including destruction of the ozone layer and contributing to global warming.

The DOWA group has been engaged in destroying these greenhouse gases since the former Ministry of the Environment and Akita Prefecture out-sourced the business of destroying greenhouse gases to us in 1996.

DOWA adopted a mixed burning method for wastes that takes advantage of heat generated when wastes are burnt to destroy greenhouse gases. This method does not require additional energy to destroy these gases. Also, CFC is treated with heat over 1000℃, and ninety-nine percent of CFC can be destroyed.

At present Eco-System Akita, Eco-System Sanyo and Eco-System Chiba are engaged in destroying and pyrolysis processing of CFC. In 2009, the DOWA group processed CFC and CFC substitutes that corresponds to 95,000 t converted to CO2.

Kosaka Town, Akita Prefecture Survey Started for Wind Power Generation

Kosaka Smelting and Refining generates power using its own hydraulic power generation system and heat from smelting and refining, covering approximately 56% (2009 result) of the required power within the plant. Now the company is conducting a survey a feasibility study of wind power generation system in order to further reduce greenhouse gases. In the survey, wind conditions around Kosaka Smelting and Refining were measured to identify economic efficiency and reduction effect of greenhouse gases if wind power generation is implemented.

Philippines Clean Development Mechanism (CDM) Business

PhotoCollecting methane from swine farms

DOWA Eco System established a joint venture, IDES Corporation, with ITOCHU Corporation in the Philippines as part of DOWA's commitment to preventing global warming to collect methane gas from 15 swine farms there. After the methane is collected it is destroyed by burning and its heat is used to generate electric power.

In April 2010, construction of all the facilities to collect and destroy methane by burning was completed and IDES Corporation started operation. This reduction of global warming gases is counted as an emission credit for Japan (CDM credits - CER), and thus, helps Japan to achieve its commitments as agreed to in the Kyoto Protocol.