Upgrading Logistics Initiatives

In fiscal 2004, emissions of greenhouse gases by the NOF Group totaled approximately 33,000 tons (on a CO2-equivalent basis and including some estimated values). Going forward, NOF will work to gain a more accurate picture of its emissions, and in parallel, promote measures to reduce these emissions.

The NOF Group is currently reorganizing its logistics operations. This is part of efforts to put in place a more simple and efficient structure that has a smaller environmental footprint.

As of March 31, 2004, NOF had created around 1,300 yellow cards. Now, when NOF carries out bulk transportation with trucks, containers or other means, yellow cards are used at all times. In the case of small-volume transportation, NOF is implementing a labeling system in accordance with guidelines issued by the Japan Chemical Industry Association (JCIA) in February 2001, called the Emergency Measure Guidelines (Application of Yellow Cards for Containers). In addition, NOF is forming mutual assistance networks with government agencies, neighboring companies, industry associations and other groups to work together in the event of an accident.

The NOF Group owns and leases a large fleet of vehicles. We have formulated and are gradually implanting a plan to ensure all these vehicles comply with relevant emissions laws and regulations. In addition, we are introducing low-emission vehicles, which have a lower impact on the environment, and taking other steps based on an environmental standpoint. NOF currently owns 5 passenger cars for transporting visitors, 15 sales vehicles and 34 cargo vehicles. Our policy is to select low-emission versions of all these cars, vans and trucks when they are replaced.

Nichiyu Logistics Co.,Ltd in its current form was created in 2002 from a merger with another logistics firm, Nichiyu Jidosha Unyu Co., Ltd. As of March 31, 2004, the company owned 16 diesel trucks, 5 petrol-powered passenger cars, and 117 forklift trucks (including 51 electric models). Nichiyu Service is responsible for the logistics operations of the NOF Group.

As the core logistics arm of the NOF Group, Nichiyu Service has begun actively taking steps to protect the global environment. Because of its specific role as a logistics business, the company plans to acquire Green Management certification from the EcoMo Foundation, an organization affiliated with the Ministry of Land, Infrastructure and Transport, by December 2004.

NOF is aware that, compared to the rest of the Group, the Logistics Division lags behind on implementing environmental protection measures. However, beginning with initiatives at Nichiyu Service, NOF is steadily rolling out measures to reduce the impact of its logistics operations on the environment and to ensure safety. In fiscal 2005, NOF will review its transportation methods and vehicle assignments to boost efficiency in its logistics operations, thereby reducing their impact on the environment.

Key initiatives being introduced or under consideration at NOF facilities