This report introduces the environmental impacts that Takara Shuzo generates and the efforts it makes to lessen those impacts, and is aimed at all consumers and citizens. Detailed information is available on our web site. Corporate units surveyed :Takara Shuzo as a whole (domestic only) Period surveyed :April 2000 to March 2001. Years are noted for information from other periods. Scope of environmental impact and accounting data : Food and alcoholic beverage business divisions (bio business division data is not included). For the products of consigned production (accounting for 12% of the total sales value of food and alcoholic beverages), environmental impact data begins at the point Takara takes delivery of the products, covering containers and distribution. This report is prepared in accordance with the Environment Ministry's Environmental Reporting Guidelines (FY 2000). Publisher : Takara Shuzo Co., Ltd., September 2001 Opinions or questions regarding this report can be sent to : e-mail : eco@takara.co.jp homepage : http://www.takara.co.jp Comments on this report by the environmental non-profit organization Climate Network are posted on our web site. Next printing: Abstract, June 2002; Report: September 2002.

Current Environmental Targets and Achievement

Category	Environmental Impact Reduction Green Ink (ignoring changes in production)	100% recycling of factory waste	ISO 14001 certification for all workplaces	CO2 reduction in the production division	Promoting energy conservation in the Distilling division
Target	Increase of 5 ECO or more per year	Attainment by fiscal 2002	All departments certified by fiscal 2002	A 6% reduction from 1990 levels by fiscal 2001 (per 1 kl of product)	A 33% reduction from 1997 levels by fiscal 2001 (per 1 kl of alcohol product)
Fiscal 2000 Results	Increase of 10 ECO over 1999	98.2% recycle rate	Certification of seven factories, Tokyo Site, Technology and Supply Division at Headquarters	69.7kg-c/k 17% reduction from 1990 levels (83.6 kg-c/k)	208.8/k-Alc 27% reduction from 1997 levels (284.8 l/k-Alc)
Future Plans	Increase of 5 ECO or more by fiscal 2001	Over 99% recycle rate for fiscal 2001	2001 : All branch offices and one factory. 2002 : Headquarters Research Center	Over 17% reduction from 1990 levels in fiscal 2001	Over 33% reduction from fiscal 1997 levels in fiscal 2001

* Note: CO2 statistics are for emissions from fuel, power, incineration, fermentation, malting, waste water, and production.

New Environmental Targets (Fiscal 2001 - Fiscal 2004) Established September 2001

Category	Energy conservation promotion in the Production Department	Water use reduction in the Production Department	Reduction of greenhouse gases (CO2) in the Production Department *2	100% recycling of factory waste	Development of eco products
Target	8% reduction from fiscal 2000 levels (106 l-crude oil/kl) in fiscal 2004 *1	9% reduction from fiscal 2000 levels (18.5m3/kl) in fiscal 2004 *1	13% reduction from fiscal 2000 levels (64.3 kg-c/kl) in fiscal 2004 *1 *3	100% recycle rate from fiscal 2002	Development of at least 1 new product each year that is environmentally considerate

*1. Per k of production
*2. CO2 statistics are for emissions from fuel, power, and incineration
*3. 28% reduction from fiscal 1990 (78.2kg-c/k)

Other Environmental Activity Goals

• Promotion of the distribution efficiency, resource conservation, energy conservation, and prevention of global warming
• Promotion of development of environmentally considerate products; container and packaging recycling
• Promotion of green procurement, green purchasing
• Promotion of environmental communication
• Promotion of social contribution activities
• Promotion of corporate-wide environmental education
• Developing tools and social applications for environmental accounting

Fiscal 2000 Green Ink Accounting Report (April 2000 - March 2001)

Social Contribution Green Ink

(unit: 1000 yen)	Financial Contribution	% of FY 1997	Social Contribution Green Ink
FY 1997	94,252		-
FY 1998	77,831	83	-17ECO
FY 1999	75,279	80	-20ECO
FY 2000	70,795	75	-25ECO

Analysis : Our Environmental Impact Reduction Green Ink for fiscal 2000 was +29 ECO. This is due to a large reduction in the total volume of our environmental impacts, despite a 4% increase in production over the base year. Specifically, we achieved large contributions through activities including: Energy conservation in our production division following the introduction of ISO 14001; zero-emission promotion activities in factories (achieving a 99% resource recycling rate in fiscal 2000); more efficient distribution; and an increase in our use of returnable bottles.
On the other hand, our Social Contribution Green Ink decreased again, to -25 ECO. This reflects a reduction in both the number of campaigns in which we participated, and in expenditures on individual campaigns.

Calculating "Green Ink"

<Environmental Impact Reduction Green Ink>

• We divide the environmental impacts of our corporate activities into 11 categories in two groups: "Procured from the Earth" and "Released into the Earth".
• We look at the results of our conservation activities in reducing environmental impact in each of the 11 categories, and compare these with our impacts in the base year of 1997 to measure a percentage improvement.
• We weight and average the percentage changes in the 11 categories, using weights assigned by internal and external environmental specialists.
• Each percentage point of improvement in the average is 1 ECO.

<Social Contribution Green Ink>

• We take expenditures on natural conservation activities (including environmental education activities), which we view as a return of profits to society, and compare with expenditures in the base year of 1997 to measure a percentage improvement.
• Each percentage point of improvement is 1 ECO.