environmental communication policy - ajinomoto · pdf fileozone layer depletion, global...

2 Environmental Report 2003

The basic policy of the Ajinomoto Group is to publish both our concepts and substantive efforts related to the environment, as well as major results, in a systematic, easy-to-understand manner. Moreover, beyond simply delivering information, we pay attention to comments and suggestions from a variety of stakeholders of the Ajinomoto Group to achieve genuine two-way communication. This enhances the transparency of the Group's business and Group credibility, and raises awareness of ecological issues among Group employees. As a part of this effort, each year we release an environmental report that describes the status of environmental activities and results. In addition, an environmental report digest highlights the main points of environmental activities for the general public, and an environment section at the Ajinomoto Group Web site provides a variety of detailed information. We also promote a broad range of environmental communications aimed at specific audiences and providing useful content; holding interactive events designed to open operation sites to local residents, issuing press releases for the timely disclosure of information, and circulating company newsletters for Group employees.

Web site for environmental preservation activities

“Our Environmental Activities” a digest version of our Environmental Report

2002 Edition Feedback

Environmental Communication Policy

The Ajinomoto Group operates its businesses in many countries and regions throughout the world in compliance with international rules, depending on products of agriculture, livestock, and fisheries as raw materials. We think and act together with regional people who live in diversified circumstances in terms of climate, politics, culture, reli-gions, laws, and concept of values. We constantly strive for symbiosis or coexistence with nature in order to create a better environment.

Ajinomoto Group PhilosophyOur philosophy is to contribute significant

advances in Food and Health on a global basis and ultimately to create a better life for all.

Ajinomoto Group Basic Environmental Policy

Philosophy

Harmonizing the Company’s global activities with the global environment we will continually improve the environment, and consequently contribute to a better society.

1.We will closely observe international standards and global frameworks as well as the environmental administration and regulations of each country. We will comply with those requirements in an exact and timely manner, adding our own voluntary standards and appropriately implementing our programs.

Be fully aware of global environmental movements and comply with them in an exact and timely manner.

2.We aim to reduce any environmental burden on the global environment caused by our business activities (for example: ozone layer depletion, global warming, acid rain, ocean pollution, desertification, endangered species, or others).

Reduce environmental burdens on the earth.

3.Manufacture of our main product AJI-NO-MOTO and other amino acids is categorized as an energy-intensive industry. Our history of technical development in production processes represents our continuous efforts toward energy and resource conservation. We strive every day to curb consumption of energy and resources, emphasizing improvement in productivity and effective utilization of by-products.

Save energy and resources through understanding the importance of natural resources.

4.By reviewing the entire business process from product design to disposal, we will develop not only technologies for effective utilization of waste and by-products, but also production engineering and business systems that ensure higher productivity and less waste generation, and consequently less environmental burdens.

Develop new technologies and systems for effective utilization of natural resources and environmental improvement.

5.We will enhance communication with society by disclosing and providing information on our environmental preservation activities. We will also raise awareness of ecological issues among employees by establishing an efficient system for sharing information and for education across the Group.

Implement education and training, to provideinformation, and to cooperate with outsideorganizations on environmental preservation.

Basic Environmental Policies

Starting this year, a site report on the environmental activities of three Ajinomoto plants is presented.

10Please refer to Editorial Policy

Supportive commentsThe report was easy to understand. It aids in the understanding of the close relationship between the business of the Ajinomoto Group and the environment.

•The Tokai Bird Sanctuary effort is excellent. I would like to visit the sanctuary. (many similar comments received from various parties)

Requested improvements•Should provide information on food safety and assurance as a food company. Environmental information for products is desired. (consumer)

•No negative information was disclosed. Information for each site is desired. (specialist, citizen living near an operation site)

•Third-party verification should be disclosed. (specialist)

•As a leader in the industry, Ajinomoto should be engaged in sustainability and corporate social responsibility (CSR ) reporting activities. (specialist)

•Reports in other languages in addition to English would increase their usefulness. (stakeholder in a non-English speaking region)

We received public comments and opinions through a questionnaire included in the 2002 edition and by e-mail, as well as feedback from various concerned parties, including environment specialists, environmental report evaluators, workers responsible for environmental issues at other companies, and employees of Ajinomoto Group companies. All these comments were taken into account in the preparation of the 2003 report.

Established in November 1997

3Environmental Report 2003

Environmental Report 2003 is intended to introduce the Ajinomoto Group’s efforts for the environment based on the following editorial policy. The report also describes the Group’s social activities.

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Environmental Communication Policy Editorial Policy, and Contents

Ajinomoto Group’s Relationship with the Environment

Message from the President—Our Commitment Review of FY2002 and Plans for the Future Overview of Ajinomoto’s Environmental Load Relationship Between Our Core Business and the Environment Overview of Business Activities Column—Ajinomoto Tokai Bird Sanctuary

Environmental Management

Environmental Management System Environmental Audit Environmental Assessment Environmental Training Research and Technology Development Environmental Accounting

Environmental Performance

Activities Addressing Global Warming Waste Reduction Activities Activities to Reduce Environmental Load Caused by Wastewater Measures Against Soil Pollution Chemical Substances ControlViolations of Environmental Laws, Environmental Accidents and Complaints Containers and Packaging Activities Logistics Activities Administrative and Sales Department Activities Site Reports from Three Ajinomoto Co., Inc. Operation Sites

Social Activities

Overview of Social Activities Customer RelationsEmployee Relations Community Relations

References

Reference to Guidelines Scope of the Ajinomoto Group Report A History of Environmental Activities Glossary Editor’s Postscript

Editorial Policy CONTENTS

The Ajinomoto Group in this report refers to Ajinomoto Co., Inc., and those parts of its domestic and overseas consolidated subsidiaries that are subject to the Group's environmental management . Those companies subject to the Group's environmental management do not fully coincide with those of the Ajinomoto Group in terms of the consolidated accounting system, but represent approximately 79% of all Group companies and 75% of consolidated net sales and encompass all major business activities except cooperative ventures.

Scope of the Report

The target audience of this report is a diverse range of stakeholders, including customers, business partners, residents of neighboring communities surrounding our operation sites, shareholders, investors, environmental activists, non-governmental organizations (NGOs), students, and Group employees.The editors referred to Environmental Reporting Guidelines set out by Japan’s Ministry of the Environment, and the GRI Guidelines, in preparing the content of this report to ensure greater inclusiveness of listed items.Charts are used to present the environmental load characteristics of the Ajinomoto Group in an easy-to-understand manner. In addition to clearly describing current issues, specific activities undertaken to address these issues are introduced.Wherever changes have been made to the method or scope of environmental data collection, historic data required for year-to-year comparison has been recalculated and identified, as far as possible.Site reports from major operation sites, including relevant environmental data, are presented.In consideration of corporate social responsibilities, the overall content of the Social Activities section has been improved from Environmental Report 2002.In order to encourage two-way communication, comments and opinions from a variety of stakeholders have been introduced into the report (VOICE column).The entire report (both in Japanese and English) is available in PDF format from the Web site.The report was first released in Japanese, with an English-language version subsequently issued for overseas audiences.Although we understand the increasing requests for third-party verification to confirm overall reliability, such verification was not pursued for this report, pending a decision on the specific applicability of verification.

The report focuses on environmental activities and achievements for fiscal year 2002, April 1, 2002 through March 31, 2003, and includes a few significant events that occurred after March 31, 2003.

Activity Period

January 2004 (next issue is scheduled for October 2004) (The issue date for the original Japanese version was November 2003, with the next issue scheduled for September 2004.)

Issue Date

Ajinomoto Co., Inc. Environment DepartmentTel: +81-3-5250-8169 Fax: +81-3-5250-8318e-mail: [email protected]

Contact

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Message from the President—Our Commitment

Our Continuing Commitment to Environmental Issues Leads to Sustainable Business Growth

President and CEO, Ajinomoto Co., Inc.Kunio Egashira

Ajinomoto Group Zero Emissions Activities Toward Sustainable Corporate Growth

Ajinomoto Group is pursuing zero emissions of various environmental loads generated in all business activities (business planning, research and development, procurement, production, logistics, sales, consumption) and promoting the efficient use of input resources and energy. Focusing on these two themes, the Ajinomoto Group aims for achieving sustainable growth.

• Air (CO2, NOx, CFC, etc.)• Water (volume, BOD, etc.)• Waste

• Resource conservation• Energy conservation

Toward resource efficiency

Toward zero emissions

Ajinomoto Group Zero Emissions—Promoting the total elimination of environmental load in every aspect of business

For the Ajinomoto Group, operating in harmony with society as a good corporate

citizen is one of the primary management objectives, and we engage in many

activities toward achieving this goal. In recent years, our main focus has been on

addressing environmental issues, a concern which everyone in the 21st century

should share. The Ajinomoto Group, from its beginnings in Japan, aims to be a

global corporation in food and amino acid products. We produce and sell a full line

of products based on the natural blessings of ingredients from every region of the

world. Consequently, coexisting with the global environment and confronting

environmental issues is a fundamental prerequisite for sustainable business growth.

Based on this concept, the entire Ajinomoto Group, including its overseas

subsidiaries, simultaneously pursues environmental preservation activities and

business development. For example, our amino acids fermentation production,

which is one of our core businesses and commands the world’s top market share,

has contributed for more than 20 years to the development of the global amino

acids business by establishing a “Bio-cycle” system in many areas in the world

, taking into account the complete circulation of resources, in partnership

with the agricultural producers that supply our raw materials.

These operations convinced us that environmental protection efforts are essential

for the ongoing development of our business and led to our decision to launch a

new campaign, Ajinomoto Group Zero Emissions. In general, “zero emissions” is

used to refer to the elimination of industrial waste into landfills. However, the

Ajinomoto Group has established its own definition: to address the full range of

environmental loads

(wastewater, air pollution, and

chemical emissions) generated

in every aspect of business

operations (business planning,

research and development,

production, sales, and

logistics), not limited to waste

generated in production

activities, while simultaneously

promoting the efficient use of

input resources and energy.

see P10


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Ajinomoto Group Plan for Acquisition of ISO 14001 Certification

Domestic consolidated subsidiariesOverseas consolidated subsidiariesAjinomoto Co., Inc.

(Target sites)

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Acquired FY2005

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We pursue sustainable growth as a socially responsible corporation through sincere

efforts to improve the environment, achieving the higher goals of Ajinomoto Group

Zero Emissions to preserve the environment and natural resources, and at the same

time strengthening our business competitiveness. The Ajinomoto Group is

determined to uphold this environmental commitment as our philosophy to

contributing to a better society. Accordingly, we will periodically report on the

specific activities and progress of Ajinomoto Group Zero Emissions.

Accelerating Group environmental management through ISO 14001 accreditation

In order to promote group-wide environmental activities, the Ajinomoto Group is

focusing on ISO 14001 accreditation. Since our business fields encompass an

extensive range, with operations spread around the world, we recognize and utilize

ISO 14001 as a basic tool for environmental management across the Ajinomoto

Group. We intend to acquire certification at approximately 100 major sites, both

domestic and overseas, by March 2006 (nearly 40 of these sites have already been

certified). As a part of this effort, in April 2003, 20 sites, including the headquarters

and branch offices of Ajinomoto Co., Inc., acquired integrated certification.

The certification of Ajinomoto’s headquarters, which controls decision-making

within the Group, will accelerate Group-wide environmental management.

Globally, the level of social demand for corporate activities that contribute to

environmental preservation, social fairness, as well as economic aspects such as

profit, is expected to rise. The Ajinomoto Group listens to stakeholder requests and

intends to embody the highest ideals of a global enterprise; that is, carefully

balancing economic, environmental and social responsibilities while promoting

continuous improvement in each of these areas.

Communication with stakeholders is very important, and we will maintain a strong

focus on this area. In Environmental Report 2003, we primarily highlighted

environmental aspects, while also reporting on economic and social aspects. We

will continue to explore the most effective means of reporting on all three factors.

We welcome your advice and comments.

see P16


As of September 2003*

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Ajinomoto Group Three-year Environmental Preservation Plan (2002–2004)

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Review of FY2002 and Plans for the Future

Promoting Activities in Accordance with the First Year of the Three-year Plan

Corporate Councilor General Manager, Environment Department

Masayuki Hirata

The chart on the right compares the production quantity and energy-originated CO2 emission intensity between FY1990 and FY2002. While overall production of the Ajinomoto Group increased by approximately 2.6 times, CO2 emission intensity was reduced both domestically and overseas, by 16% overall. Furthermore, in Japan, the absolute volume of CO2 was also reduced, by 13%. These achievements are the result of our consistent efforts over 10 years, including the development of an efficient production process that generates low environmental load utilizing fermentation processes and biotechnology of the Ajinomoto Group, and improving production technology to further conserve energy. We will continue our efforts to further reduce CO2 emissions.

Ten-year Review of the Ajinomoto Group’s Environmental ActivitiesReduction of CO2 emissions

Productionquantity index

CO2 emission intensity(t-CO2/t)

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Production quantity index(overseas)

CO2 emission intensity(domestic production)

CO2 emission intensity (domestic and overseas production)

CO2 emission intensity(overseas production)

Comparison of production quantity and CO2 emission intensity (compared with FY1990)

24% reduction

16% reduction

46% reduction

(index using 100 for the domestic and overseas production quantity for 1990)

The heart of the Ajinomoto Group Three-year Environment Preservation Plan (2002-2004) launched in FY2002 is to upgrade the environmental activities of the Ajinomoto Group, from environmental compliance to environmental preservation, and then advance from environmental preservation to environment-conscious management, firmly establishing enhanced environmental activities throughout the entire Group. Based on this approach, we implemented a variety of practices and achieved favorable results in FY2002, the first year of the plan. Major results are described on the facing page.For FY2003, we will promote consistent environmental preservation activities within the entire Group by focusing on the ISO 14001 mechanism established by Ajinomoto Co., Inc. In particular, our primary focus is on promoting Ajinomoto Group Zero Emissions—promoting the total elimination (substantial minimization) of environmental load in every aspect of business. In order to achieve this goal, we will specify the main environmental load items in all business areas, such as production, sales, and logistics, and set specific targets and milestones to promote the measures that minimize environmental load. For example, in our production division, we intend to minimize all environmental loads generated in business activities by not only eliminating the disposal of industrial waste but also reducing the use of water resources, working to eliminate wastewater-related environmental load, and voluntarily minimizing Biochemical Oxygen Demand (BOD) and nitrogen emissions, in addition to complying with legal restrictions.

FY2002FY1990

Construction of a mechanism for realizing Environment-Conscious Management, and its steady operation

Strict management for environmental preservation and reduced environmental burdens

Strengthening corporate brand power from the perspective of the environment


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Results for FY2002Promotion System

ISO Certification Acquisition Status

Formulation of Voluntary Environmental Standards

Established Group Environmental Management System, which covers domestic and overseas Ajinomoto Group companies, after introducing an internal company system.

Comparison with the previous year:

• Total energy input reduced by 2.0%• Unit energy consumption* reduced by 7.0%

Total energy input: 30,200 TJ. Reduction in both input and unit energy consumption compared to previous year.

Acquired ISO 14001 certification at all domestic sites of Ajinomoto Co., Inc.Approximately 40% of domestic and overseas Group companies have been certified (as of September 2003).

Established Group Global Minimum, a voluntary environmental standards for all companies in the Ajinomoto Group.• Prohibiting landfill disposal on company-owned property• Regulating total pollutant load of Chemical Oxygen Demand (COD) and nitrogen in wastewater

Goals for Future ActivitiesAcquire ISO 14001 at approximately 100 domestic and overseas sites by FY 2005.Further strengthen the Group Environmental Management System.

Goals for Future Activities Accomplish Ajinomoto Zero Emissions by eliminating all environmental loads.

Goals for Future Activities

Awards given for two products in the 2003 Japan Packaging Contest:• Crushable Eco Bottle for cooking oil —received Japan Star Award (Japan Marketing Association Chairman’s Award)• “Let’s QUIQ” Pasta standing pouch —received Good Packaging Award (Food Packaging Division Award)

Improving Containersand Packaging

Social Activities/Local Contributions

Complete activities aimed at carefully balancing economic, environmental and social imperatives in order to fulfill our corporate social responsibility (CSR).


• CO2 emissions reduced by 5%• CO2 emission intensity* reduced by 10%

CO2 emission volume: 2,270 thousand tons. Reduction in both volume and intensity of CO2 emissions

Energy ConservationActivities

Global WarmingPrevention Activities

*Plants achieving resource recovery ratio greater than 99.0%

Zero Waste Emissions Plant*

Soil ContaminationCountermeasures

Logistics

Waste-reductionActivities


• Resource recovery ratio improved by 1.8%

Resource recovery ratio: 95.0%


• Modal shift rate improved by 1.6%

Modal shift rate: 18.1%

• Achieved at 9 plants (1 domestic and 8 overseas)

*Measured against production volume

*Measured against production volume

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Completed soil contamination investigation in the Kawasaki Region.Construction countermeasures for soil contamination completed or in progress. see P26

Ajinomoto Tokai Bird Sanctuary received two awards:• Ministry of the Environment’s Award for Wildlife Protection • Mie Prefecture’s Environmental Protection Award see P14 P34



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Overview of Ajinomoto’s Environmental Load

Overview of Ajinomoto’s Environmental Load

Steam and water are required during the production of seasonings and amino acids through fermentation processes. Steam is used to sterilize raw materials and equipment, concentrate the processing solution, and isolate or refine crystals, while water is required for cooling and washing. Consequently, our high-volume usage of both energy and water makes energy conservation and the efficient use of water resources critical issues.

INPUT Ajinomoto Group

Logistics

Production

Sales, Office Work

Reduction of high-volume water and energy usage

INPUT

ISSUES

(kg-CO2/kWh)CO2 emission coefficient (electricity) Conversion of heat value• Fossil fuels are converted using higher heating values.• Electricity is converted using 3,600 MJ/MWh, which is different from the general conversion ratio of 9,380 MJ/MWh (the Law Concerning the Rational Use of Energy, revised on December 27, 2002.)

Natural energy ratio• Ratio of natural energy power, such as water power generation, as well as energy originated from biomass and biogas, divided by the total energy used

Calculation of CO2 volume (from fossil fuels)• The emission coefficient of fossil fuels is taken from 2002 Report by the Review Committee for the Measurement of Greenhouse Gas Emissions (Japan Ministry of the Environment, 2002).

• Electricity CO2 emission coefficient (in the table on the right) per country is used for electricity.

Wastewater load due to nitrogen • Measured by Kjeldahl method

Japan

U.S.

Brazil

France

Thailand

Indonesia

China

0.384

0.560

0.043

0.063

0.572

0.591

0.952

Remarks: The CO2 emission coefficient of electricity for Japan is quoted from Environmental Activity Evaluation Program by the Environment Agency (1999), while the comparable figures for overseas countries are quoted from the data of JEMAI-L-CA Software. The sources are based on the standards for 1996 Global Energy Statistics Data.

Tap waterIndustrial water River water and well water(For direct use)River water(For indirect cooling)

11,000 thousand tons43,000 thousand tons

22,000 thousand tons



Water

Main materials

Sub-materials

Container and packaging materials

Agricultural and fisheriesOtherAcids/AlkalisOtherPlasticsGlassCansPaper, cardboard boxes

1,710 thousand tons130 thousand tons770 thousand tons140 thousand tons26 thousand tons2 thousand tons9 thousand tons

53 thousand tons

2,830 thousand tons

Raw Materials

Energy

T (tera) = 1012

Purchased ElectricityPurchased SteamOilGasCoalOther

1,780 thousand MWh

1,600 thousand tons245 millionr

185 millionm3

2.940 tons310Mcar

30,200TJ(Natural energy ratio: 8% )

• Aggregation Scope:Ajinomoto Group companies, both domestic and overseasRefer to P46 for details

• Aggregation Period:From April 1, 2002 to March 31, 2003

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OUTPUT

Effective utilization of liquor by-product (the liquid remaining after the main products are extracted from fermented broth) generated in large volume at fermentation plants is an important issue. The liquid by-product is currently being processed and sold as organic nitrogen fertilizer. As for wastewater load and waste disposal, we comply with wastewater regulations by appropriately treating and disposing of wastewater and transforming by-products into reusable resources at a high rate of recovery. Nevertheless, we are continually seeking to further reduce waste.

OUTPUT

ISSUES

Effectively using by-products and reducing wastewater load and waste disposal

Waste for food recycling 19,966 tons

Unusable products 3,284 tons

Waste generated during the process 16,682 tons

Food recycling rate

76.9%Production

Resource recovery

External disposal

15,356 tons

4,610 tons

Products 519 thousand tons

90 thousand tons

CO2 2,270 thousand t-CO2

NOx 610 tons (in Japan only)

SOx 1,000 tons (in Japan only)

Incineration1,100 thousand t-CO2

Purchased energy 1,170 thousand t-CO2

201,000 thousand tonsDischarged toPublic waters (discharged after treatment, etc.) Public waters (indirect cooling water, etc.)Public sewerage

35,000 thousand tons163,000 thousand tons

3,000 thousand tons

Wastewater load (discharged after treatment, etc.)BODNitrogenPhosphorus

900t1,700t

50t

Internal disposal

External disposal

41 thousand tons

49 thousand tons

Effective use

1,619 thousand tons

105 thousand tons

Fertilizers, soil-improving agents, livestock feed, etc.

1,310 thousand tons

Recycling, thermal recyclingMaterial recycling, reuse, etc.

Discharge/Disposal

Waste and Other

To Air

Water

Commercialized By-products

Products

Resource Recovery

Resource recovery ratio

95.0%

By-products

Waste

Incoming and outgoing materials based on the Food Recycling Law

Scope: Domestic food products produced by Ajinomoto Co., Inc., Ajinomoto Frozen Foods Co., Inc., Knorr Foods Co., Ltd., Ajinomoto Takara Corporation, Inc., Ajinomoto Pharma Co., Ltd., and other Group companies

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The above chart assumes worldwide annual production of approximately 500,000 tons of AJI-NO-MOTO produced by the Ajinomoto Group using only sugar cane. The values for growing sugar cane and sugar production represent average global use, while the values for resources used for producing AJI-NO-MOTO and values for waste are based on Ajinomoto Group results for FY2002.

Sugar cane fields500 thousand ha

Cane molasses (sugar syrup=molasses) 1,500 thousand tons

Sugar cane (crop) 38,000 thousand tons

Raw sugar4,200 thousand tons

AJI-NO-MOTOplant

Recycling-OrientedProduction Process

The Sun

Covers approximately 70% ofnitrogen fertilizer

required for growing sugar cane

Atmospheric CO2 absorbed by photosynthesis28,000 thousand tons

Sugar production plant

Chemicalfertilizer

Transformingby-products intouseful resources

Products

Resources used

Fuel, etc.···250 thousand kl(crude oil conversion basis)Electricity···920 thousand MWhTap water, industrial water,ground water···28,000 thousand tonsRiver water (for indirect cooling)···57,000 thousand tons

AJI-NO-MOTO500 thousand tons

Waste and emissionsAirCO2

Direct emissions Purchased energyWatersTreated wastewater BOD Nitrogen Indirect cooling waterSolid waste ·Transformed into resources·Landfilled

480 thousand tons780 thousand tons

10,000 thousand tons550 tons700 tons


140 thousand tons10 thousand tons

Liquid fertilizer1,600 thousand tons

·Nitrogen 64 thousand tons·Phosphorus 3 thousand tons·Potassium 1.6 thousand tons

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Relationship Between Our Core Business and the Environment

Critical Tasks: Energy and resource conservation and waste controlAs the leader with the top share in the amino acids industry, Ajinomoto Group’s amino acids business is expanding into a variety of fields, providing such products as AJI-NO-MOTO or monosodium glutamate, pharmaceutical intermediates, infusions, nutritional foods, and animal feed. The specific environmental loads generated by the fermentation business include high-volume use of raw materials, energy, and water resources (river and industrial water) as well as the large-scale generation of by-products and wastewater. Therefore, resource and energy conservation, control of the generation of by-products, and developing technology for the effective utilization of by-products, are vital issues.

Improving the production process to promote resource conservation, minimized environmental load, and energy conservationFermentation production requires large volumes of water and energy. For example, the amount of water used by the Ajinomoto Group to produce 500,000 tons of AJI-NO-MOTO is equivalent to approximately 1/350 of annual city water usage in Japan, while the amount of energy used is roughly equivalent to 1/1,300 of annual energy consumption in Japan. A large volume of wastewater and CO2 is generated during the process.Therefore, the Ajinomoto Group is creating microorganisms with high fermentation capability, developing a highly efficient production process, and improving the thermal efficiency of boilers to conserve resources and energy while lowering environmental load. As a result, energy consumption for producing fermentation-related products containing amino acids in 2002 against production volume improved by approximately 31%, compared with FY1990.

Establishing Bio-cycle: from farm to AJI-NO-MOTO to farm Amino acids are produced by fermenting cane molasses (sugar syrup), and corn or cassava starch, then isolating and purifying the fermented liquid. By-products such as liquid concentrated during theprocess contains a large quantity of nitrogen and minerals and is therefore converted into fertilizer or animal feed, and then reused for cultivating the sugar cane required as a raw material for AJI-NO-MOTO. The Ajinomoto Group established this Bio-cycle system in which by-products generated during the production process are returned to the field for growing raw materials, and has operated this cycle around the world for more than 20 years. As a result, 97% of by-products generated during amino acids fermentation processes are recovered as useful resources.Thus, the Ajinomoto Group not only complies with national and regional regulations, but also promotes voluntary activities to reduce environmental load. Nevertheless, the absolute volume of environmental load generated from the fermentation business remains significant. Our overall aim continues to be the elimination of such impacts as far as possible.

Amino Acids-Related Business


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Critical Tasks: Minimizing food, container and packaging waste Food Business

The Ajinomoto Group’s food businesses continue to provide a variety of products worldwide, such as soups, frozen foods, and seasonings, under a brand originating in Japan. The most significant environmental loads associated with the food business are food, containers and packaging waste generated during the production, distribution and consumption processes.This waste must be reduced or recovered as useful resources.

Reducing waste through improved efficiencies, from production to distribution Waste generated during the food production process includes residue and sludge. Residual food and container packaging materials can be minimized through the design, development and management of efficient processes to limit waste and loss. Waste generated during the distribution process includes returned products, the amount of which can be lessened by generating more accurate planning estimates at the sales division level. The Ajinomoto Group strengthened collaboration between the sales and production divisions, with priority on planning and implementation of the most efficient production and sales plans. The sales division also systematically works to reduce sales promotion materials such as POPs. Moreover, we promote the recycling and recovery of unavoidable waste, converting it into useful resources. As a result, the recovery rate for waste food and plastics is approximately 77% and 70%, respectively, while the recovery rate for container waste, such as glass bottles and cans, is nearly 100%.

Promoting post-use recycling through increased consumer understanding and cooperationThe use of products by consumers generates such waste as packaging and leftover food. This imposed another critical task for the Ajinomoto Group. We have been implementing environmentally sound container and packaging assessments based on the Eco-Index for the Containers and Packaging, which has four categories: efficient use of resources, recycle adaptability, disposal suitability, and labeling. The Group also promotes the improvement of container packaging by confirming that identification marks and material labels comply with the law. Moreover, we pay consignment fees for recycling based on the Container and Packaging Recycling Law. However, in order to promote the collection and recycling of containers and packaging, it is essential to expand consumer cooperation and understanding of garbage separation, in addition to the Group performing its own activities. The Ajinomoto Group is actively engaged in disseminating information and strengthening consumer awareness.


The above chart presents a model for approximately 380 thousand tons of household commercial products (processed foods) produced and sold by the Ajinomoto Group in Japan. The values for container packaging materials are based on results in compliance with the Container and Packaging Recycling Law.

Raw materials

410 thousand tons

Vegetables, Meat, Seafood, Seasonings, Spices, Oils, etc.

Products

380 thousand tons

Processed food content

Rec

yclin

g a

nd E

ffec

tive

Use

(Rec

ycle

co

mp

anie

s)Di

spos

al by

Incin

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ion (

Adm

inist

ratio

n an

d ind

ustri

al wa

ste d

ispos

al co

mpa

nies)

Container packaging waste

24 thousand tons

Waste food content

Sales promotionmaterial waste

Products unsold

3 thousand tons

Consumption(Household)

Distribution and SalesSales promotion

materials

ProductionResidual raw material

26 thousand tons

Wastewater processingsludge

24 thousand tons

Cardboard boxes for packaging

24 thousand tons

Packaging materials

48 thousand tons

Paper and Cardboard boxes: 35 thousand tonsPlastic: 6 thousand tonsGlass bottles: 5 thousand tonsCans: 2 thousand tons


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Corporate Outline

Overview of Business Activities

987.7 987.7

Consolidated

Composition of Net Sales by Business

DomesticFood Products

583.2(59.0%)

Other66.6

(6.7%)

OverseasFood Products

139.2(14.1%)

Amino Acids

135.9(13.8%)

Pharmaceuticals62.7(6.3%)

(Billions of yen) Composition of Net Sales by Region

The Americas52.2(5.3%)

Europe88.6

(9.0%)

Japan758.3

(76.8%)

Asia88.7(9.0%)

(Billions of yen)

0

Net Sales

2002 2003200120001999 2002 2003200120001999 2002 2003200120001999(FY)

(Billions of yen) (Billions of yen)

Operating Income, Ordinary Income Net Income(Loss) per Share

(FY)

(Yen)

Notes:• Net income, return on equity (ROE), and net income per share show negative figures due to a special loss generated mainly by lump-sum

amortization during FY2000 relating to a difference in accounting standards concerning allowance for retirement benefits.• Figures in FY2003 are all predicted values.

Net Income(Loss), Return on Equity(%)

(FY)

(Billions of yen)

-20

-10

0

10

20

30

50

40

-2

-4

0

2

4

6

8

10

0

10

20

30

40

50

60

70

2002 2003200120001999 (FY)

200

400

600

800

1,000

-20

-10

0

10

20

30

40

50

Main Products by Business Segments

AJI-NO-MOTO, Hon-Dashi, Cook Do, soup, mayonnaise, Pal Sweet, Amino-Vital, Aji-Eki, frozen-food, coffee, beverages, dairy products, distribution of food products, etc.

AJI-NO-MOTO, nucleic acid-based products, instant noodles, beverages, services, etc.

Amino acids, Aspartame, specialty chemicals, etc.

Pharmaceutical products, medical foods

Distribution, various services, etc.

Operating IncomeOrdinary Income

Net Income(Loss)Return on Equity

Summary of Financial Results

Ajinomoto Co., Inc.Head Office: 15-1, Kyobashi, 1-chome, Chuo-ku,

Tokyo 104-8315, JapanTel: +81-3-5250-8111Fax: +81-3-5250-8314URL: http://www.ajinomoto.com

Established: May 20, 1909Paid-in Capital: ¥79,863 million (As of March 31, 2003)Number of Employees: 24,406 (consolidated basis)

3,549 (non-consolidated basis)(As of March 31, 2003)

Date of Settlement: March 31

DomesticFood Products

OverseasFood Products

Amino Acids

Pharmaceuticals

Other

Environmental Policy, by country

Brazil

Vietnam

Japan

China

Thailand

Japan Ajinomoto KK49 11 9 10 2 27

Subsidiaries, affiliates and offices of Ajinomoto Co., Inc.

Seasonings Plant Processed Foods Plant Amino Acids and Specialty Chemicals Plant Other PlantsPharmaceutical Plant

Poland

Switzerland

Vietnam

Thailand

Belgium

Germany

Russia

The U.K.

France

Italy

Nigeria

Indonesia

Singapore

Malaysia

The Philippines

Taiwan

South Korea

China

The U.S.A.

Peru

Brazil


(Manufacturing plants include packaging plants)

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Global NetworkPromoting global business activities sensitively tailored to 22 countries and regions around the worldFocusing business operations on local lifestyles and cultures is at the heart of the Ajinomoto Group’s worldwide operations, with sites in 22 countries and regions. We address the effective use of natural resources in the context of the specific natural environment and characteristics in addition to employing local staff and developing products specially suited to the people in each particular region. By establishing a resource recycling-oriented production process, the Ajinomoto Group aims for coexistence with the global environment.

An invaluable environmental asset passes on community heritage—Ajinomoto Tokai Bird Sanctuary

COLUMN

The Tokai Plant site includes a naturally oc-curring lake; rarely seen in urban areas of Japan. In the past, employees used the lake as a recreation site for boating, fishing, and hiking. However, the lake fell into disuse years ago following the construction of in-door exercise facilities. The fact that people no longer frequented the lake resulted in an undisturbed natural habit, allowing for the return of wildlife and providing a refuge for birds, especially those on their migratory routes, as well as for rare insects such as chotombo (a type of dragonfly that flies like a butterfly). Ajinomoto Tokai Site secured this naturally occurring lake by constructing a hedge-lined promenade upon which people could stroll without disturbing the wildlife, thereby es-tablishing a genuine bird sanctuary for pro-tecting wild birds and to which Ajinomoto employees have limited access.

Ajinomoto Tokai Bird Sanctuary is located on the Ajinomoto Co., Inc., Tokai Plant Site in Yokkaichi, Mie Prefecture, one of Japan's major industrial regions. The sanctuary occupies 10,000m2 of green zone, which includes a naturally occurring lake offering limited access, even for employees, and is preserved in its natural state as an area designated for protecting wild birds.

The bird sanctuary not only preserves a pre-cious natural environment as a resting place for wild birds,but also presents a place for communication with local residents. For ex-ample, a local history seminar was held for elementary school students. The effort pro-duced dramatic results by transforming pre-viously idle property into an invaluable en-vironmental asset and demonstrating the value of preserving the Tokai Bird Sanctuary as a local legacy.Looking ahead, we will further exercise our stewardship over this local environmental asset, valuing it as a social treasure that will serve to improve the coexistence of society and nature by moving beyond one compa-ny’s effort to preserve the environment.

Ajinomoto Tokai Bird Sanctuary

Tokai Plant viewed from Bird Sanctuary

Birdwatchers

http://www.ajinomoto.co.jp/company/index.html(content in Japanese only)

URL

Providing breathing space for wildlife

The Award for Wildlife Protection is presented by the Ministry of the Environment and Japanese Society for Preservation Birds to individuals and organizations that provide distinguished services by performing environ-mental preservation activities, investigation and re-search, or conservation activities, for the protection of wildlife. Ajinomoto Co., Inc., Tokai Plant was the only private enterprise to receive this award.

2003 Award for Wildlife Protection

The Mie Prefecture’s Environmental Protection Award recognizes individuals and organizations that are actively contributing to the health and well-being of the environment, and preserving the environment for the next generation. Eight individ-uals and organizations received this award this year, and Ajinomoto Co., Inc., Tokai Plant was the only corporate enterprise to be honored.

2003 Mie Prefecture's EnvironmentalProtection Award

A local environmental asset providing local opportunities for communication and education


002003

The Ajinomoto Group, in concert with each Group company around the world,promotes environmental activities.

In FY2002, in order to further accelerate these efforts, 20 operation sites, including the Headquarters and branch offices of Ajinomoto Co., Inc., which play key roles in

the Group's environmental activities, acquired integrated ISO 14001 certification.Furthermore, the Group has established Group Global Minimum,

a set of voluntary environmental standards for the Group, along with other initiatives, including a stronger environmental audit system, employee training,

and strengthened development of environmental preservation technologies.This section describes our environmental management operations.


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Environmental Management System


Updating the organizational structure to facilitate an environmental management system in line with the introduction of an internal company systemReflecting the introduction of an internal company system starting in April 2002, the organizational structure was updated to pro-mote environmental management. In the new structure, a chief environmental admin-istrator is appointed as the person responsi-ble at each internal company of the Group to act as a member of the Environmental Committee, the Group’s highest level deci-sion-making body for environmental activi-ties, to ground the decisions of the Commit-tee and to exercise control over the imple-mentation of environmental activities at each company of the Group.The Committee meets twice a year (in May and November) to formulate environmental strategies and define goals for the fiscal year. It also examines and approves Envir-onmental Preservation Promotional Plans and other related policies from each internal company.

Ajinomoto Co., Inc. acquired integra-ted certification of ISO 14001 at 20 op-eration sites, including its Headquar-ters and branch offices.In order to promote group-wide environmen-tal activities with consistent quality and ef-fectiveness, Ajinomoto Co., Inc. began working in May 2002 to acquire integrated certification of ISO 14001 at 20 operation sites including its Headquarters and branch offices nationwide, representing the deci-sion-making centers of the Group, and ac-quired certification in April 2003. As a result, all domestic organizations of Ajinomoto Co., Inc., including domestic manufacturing plants and R&D divisions that had already obtained certification, have acquired ISO 14001 certification. The acquisition of ISO 14001 integrated cer-tification reflects the Group’s intention to im-plement enterprise-wide environmental ac-tivities with a common sense of focus within the Ajinomoto Group as it operates in di-verse business fields worldwide. We will take further steps to strengthen our Group environmental management system.

Revising operating rules including ex-tensive reworking of Environmental RegulationsIn addition to the overall restructuring to promote environmental management in line with the introduction of the internal company system and the acquisition of ISO 14001 in-tegrated certification at Headquarters and branch offices, we extensively revised our Environmental Regulations and the Bylaws of the Environmental Regulations for dealing with environmental issues. In the revised En-vironmental Regulations, the scope of envir-onmental activities that previously covered only manufacturing and research now ex-tends into all business activities. Environ-mental assessment is applied to a wider range of business activities, including the launching of new businesses as well as the acquisition, sales and purchase of real es-tate. Furthermore, the Bylaws require an En-vironmental Assessment Summary to be at-tached to every proposed decision. In order to promote Group environmental management based on ISO 14001, EMS Promotion Secretariat Meetings have been held every month since May 2003.

Establishment of Group Global Mini-mum as voluntary environmental standards Several countries and regions in which the Ajinomoto Group operates do not have suffi-cient laws and regulations related to pro-tecting the environment. The Ajinomoto Group established Group Global Minimum as voluntary environmental standards with which every Group company, even those lo-cated in such countries and regions, must comply. These standards impose obliga-tions on all Group companies in Japan and abroad to prohibit the disposal of industrial waste in landfills located on their own prop-erty and to control the concentrations of COD and nitrogen in wastewater.

Organizational Structure

The Ajinomoto Group designed its environmental management system in compliance with ISO 14001 in order to fulfill environmental regulations based on the Ajinomoto Group Basic Environmental Policy. In FY 2002, the Group worked to obtain ISO 14001 certification at the Headquarters and branch offices as part of introducing an internal company system, while at the same time revamping the organizational structure and operating rules, and instituting the Group’s own voluntary standards. Through implemen-tation of these processes, we have been successfully carrying out unified, group-wide environmental activi-ties.

Consolidated subsidiariesEach unit organization (as a general rule)



Note :Chief environmental administrator

:Environmental administrator

CorporateEnvironment DepartmentGeneral Affairs & Risk Management DepartmentCorporate Planning DepartmentProduction ManagementDepartment


Individual companies, operation sites, plants, etc.

Individual companies, operation sites, etc.

Chairperson:Director responsible for environmental management (Vice President)Members:Chief environmental administratorsSecretariat:Environment DepartmentMeeting frequency:Twice a year (as a general rule)

Environmental Committee

Board of Directors

Organization names as of July 2003

Individual companies, operation sites, etc.

Global Foods & Amino Acids Company

Pharmaceutical Company

Ajinomoto Frozen Foods Co., Inc.

Ajinomoto Logistics Corporation

AJINOMOTO BAKERY PRODUCT CO., LTD.

Seasonings & Food Products Company

Plan

Check

Act Do

Operation of Group EMS EMS operation at each company and branch office

Each operation

site

Site-specific issues

Internal Audit

Plan

Check

Act Do

Plan

Check

Act Do

Each Group

company

Site-specific issues

Internal Audit

The Ajinomoto Group

see P17

see P18

November2002

March2003

April2003

May2003

Extensive revision of Environmental RegulationsThe scope of environmental activities extends into all business activities.

Establishment of Group Global Minimum

Acquisition of integrated certification of ISO 14001 at Headquarters and branch offices Establishment of Bylaws of the

Environmental Regulations Foundation of EMS Promotion

Secretariat Meetings


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All domestic organizations of Ajinomoto Co., Inc. have acquired the ISO 14001 certificationSix operation sites of the Ajinomoto Group acquired ISO 14001 certification in FY2002 in addition to the 10 operation sites, includ-ing 3 plants of Ajinomoto Co., Inc., that were accredited by FY2001. In April 2003, 20 op-eration sites of Ajinomoto Co., Inc., includ-ing Headquarters and branch offices across Japan, obtained the integrated ISO certifica-tion. As of September 2003, a total of 39 op-eration sites have qualified for ISO 14001 certification: 24 operation sites (plants, Headquarters and branch offices) of Ajino-moto Co., Inc. and 15 manufacturing subsi-diaries both in Japan (7 subsidiaries) and abroad (8 subsidiaries). In our plan, as re-vised in 2003, we accelerated the schedule to acquire certification for approximately 100 domestic and overseas operation sites by 2005.

Strict environmental management and inspections are implemented in accor-dance with the Ajinomoto Group Envir-onmental PolicyThe Ajinomoto Group extends the scope of its environment management to its contract manufacturers and requests those manufac-turers to base their operations on the Ajino-moto Group Environmental Policy and vol-untary environmental standards to ensure complete alignment of environmental activi-ties with those of the Group. These activities are incorporated into risk management to maintain the integrity of Ajinomoto’s brand among customers by preventing the occur-rence of environmental problems at contract manufacturers. These activities also reflect our intention to continually enhance every aspect of the Group’s environmental activi-ties.We have carefully detailed the Ajinomoto

Group’s environmental stance and policies to contract manufacturers, including envir-onmental assessment methods, and have requested their overall cooperation. Group staff is dispatched to conduct periodic in-spections for particularly challenging issues.

Activities for ISO 14001 Certification

Environmental Control over Contract Manufacturers

1998.7.24

1999.11.222000.2.9

2000.9.222001.3.222001.3.26

2001.9.272001.12.282002.2.132002.2.13

2002.6.112002.8.22002.11.222003.2.62003.3.142003.3.27

2003.4.162003.4.182003.7.142003.7.30

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

Ajinomoto Co., Inc., Kyushu Plant

Ajinomoto Co., Inc., Tokai PlantAjinomoto Frozen Foods Co., Inc., Chubu Plant

Malaysia Packaging Industry BerhadAjinomoto Vietnam Co., Ltd.Ajinomoto Co., Inc., Kawasaki Plant

Ajinomoto Co.,(Thailand) Ltd., Pathum Thani FactoryAjinomoto Interamericana Industria e Comercio Ltda., Limeira PlantLianyungang Ajinomoto Ruyi Foods Co., Ltd.Lianyungang Ajinomoto Frozen Foods Co., Ltd

Ajinomoto Co., (Thailand) Ltd., Kamphaeng Phet FactoryTokai Knorr Foods Co., Ltd.Chubu Knorr Foods Co., Ltd.Ajinomoto Engineering Co., Ltd.Ajinomoto Frozen Foods Co., Inc., Kyushu PlantAjinomoto Co., Inc., research laboratories and centers

Ajinomoto Fine-Techno Co., Inc., headquartersAjinomoto Co., Inc., Headquarters and branch offices (20 sites)Knorr Foods Co., Ltd., Ajinomoto Co., (Thailand) Ltd., Phra Pradaeng Factory

Operation Sites and Group Companies Acquisition Date Certifying Organization

Operation Sites and Group Companies that have Acquired ISO Certification

JQA

SGSJQA

SIRIM QASBVQIJCQA

SGS UKSGS ICSSGS SwitzerlandSGS Switzerland

SGSJQAJQABSI-JJQALRQA

SGSLRQATECOSGS

Ajinomoto Co., Inc.

Consolidated domestic subsidiariesConsolidated overseas subsidiaries

ISO 14001 Certification Acquisition Plan

Acquired FY2005

110

100

90

80

70

60

50

40

30

20

10

0

(Number of sites)

24

36

38

98

***

***

Sites certified as of September 2003Ajinomoto Co., Inc. and all consolidated subsidiaries engaged in manufacturing, packaging, logistics, and engineering.Ajinomoto Co., Inc. acquired integrated certification of ISO 14001 at 20 operation sites in April 2003 and thereafter spun off one of the operation sites.

*

24

87

39

***

**

Example of Environmental Inspections

Ajinomoto Frozen Foods Co., Inc. dispatched staff to conduct environmental inspections with about 30 contract manufacturers across the nation, from Hokkaido to Kyushu. Inspections focused on items closely associated with food manufacturing, including:1. Regulatory compliance and appropriate

waste disposal (management of contracts and manifests)

2. Wastewater management

We encourage the Ajinomoto Group to continue maintaining and enhancing its highly regarded environmental management systems

A variety of actions are in progress to acquire ISO 14001 certification

The key features of Ajinomoto’s environmental management systems can be briefly described as follows: (1) The Group’s Headquarters: core management formulates the environmental management policies of the entire Group and drives the overall environmental management system. (2) The entire Group, in-cluding the Central Research Laboratories and sales divisions, attends to risk management and reduces inefficiencies, waste, and non-standard practices through the identification of problems found in each primary business. (3) The entire Group focuses on streamlining operations toward reducing costs. Efforts to tackle environmental issues closely associated with primary busines-ses have steadily yielded satisfactory results, such as reductions in both the volume of waste and costs, thereby enhancing Ajinomoto's credibility among

customers.We encourage the Ajinomoto Group to con-tinue to maintain and enhance its environ-mental management system.

The EMS Promotion Secretariat oversaw a variety of activities to raise employee awareness of environmental management toward acquiring ISO certification at the Headquarters and branch offices. These included formulating employee activ-ities with specific goals and releasing guideline documents to inform employees of the progress toward achieving ISO certification. The secretariat also shares model case studies of activities across the entire Group, prepares study materials for office meetings in remote branches where it is difficult to have frequent com-munication, and distributes videotapes portraying actual instances of product waste, including scenes of returned products in warehouses and products being incinerated at disposal sites.We have already begun to observe results. For example, the returned product rule has been consistently reviewed, and the management of sales promotion materi-

als and samples has been centralized. We in-tend to step up our efforts to assist operation sites in improving their environmental activi-ties.


Lloyd's Register Quality Assurance Limited

Noriyuki Hoshino (right)

Planning Group, Logistics Planning Department,Logistics Strategy Department,Seasonings and Food Products Company,Ajinomoto Co., Inc.

Kazuhiro Uozumi (center)

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Environmental Audit


Auditing 43 domestic and overseas sites in 79 person-daysGroup Environmental Audits are conducted to test the progress of implementing the Ba-sic Environmental Policy and targets, and compliance with laws and regulations as well as the environmental performance at Ajinomoto Co., Inc. and its operation sites and domestic and overseas subsidiaries mainly related to production or logistics. Au-dits are performed by qualified professionals of the Environment Department and other departments under the supervision of a di-rector in charge of environmental manage-ment, and outcomes are reported to the chairman of the Environmental Committee (Vice President), heads of internal compa-

nies and spin-offs, and the chief environ-mental administrator. During FY2002, audits were conducted at 43 sites, including do-mestic and overseas Group companies and operation sites, at a 79 person-day commit-ment of resources. In the course of the au-dits, issues requiring improvement were identified at several sites and countermea-sures were implemented. The FY2003 audit addresses the following four major themes to uniformly strengthen environmental manage-ment within the Group, thereby improving the Group Environmental Audits.1. Environmental activities standard (self-

assessment sheet)2. Thorough understanding of Group targets3. Study of surrounding environment; risk

management and risk avoidance4. Expanded scope of audits and increased

number of auditors

Group Environmental Audit

The Ajinomoto Group monitors the progress in im-plementing the Basic Environmental Policy and tar-gets as well as compliance with laws and regula-tions, with an Internal Environmental Audit as the central pillar of its environmental management sys-tem supported by Group Environmental Audits and third-party Environmental Audits. Starting in FY2003, the Audit Department in charge of operations and accounting audits has conducted environmental au-dits at operation sites not included in the scope of Group Environmental Audits.

Environmental AssessmentThe procedures and methods for assessing the envir-onmental impact of production and R&D activities have undergone restructuring since FY2001. Reflect-ing the extensive revision of Environmental Regula-tions in FY2002, the scope of required environmental assessment was extended to all business activities. Furthermore, every new project requiring authoriza-tion must include an Environmental Assessment Sum-mary prepared by the Ajinomoto Co., Inc. department advancing the proposal and be approved by the En-vironment Department before final authorization. In this way, the environmental assessment system is strengthened and firmly established to prevent the occurrence of environmental problems and ensure the effectiveness of environmental activities.

Subsidiaries and operation sites not includedin the scope of the Group Environmental Audit

Ajinomoto Co., Inc. and its subsidiaries and operationsites primarily related to manufacturing or logistics

Operation sites that have acquiredISO 14001 Certification

Execution Month

Total Person-days

Achievements of Group Environmental Audits

May 2002

August 2002

September 2002

October 2002

November 2002

December 2002

January 2003

February 2003

Total

0

4

6

3

9

2

4

4

32

6

0

0

0

0

0

0

5

11

10

6

12

5

4

6

8

28

79

Number of Audited Operation Sites

Domestic OverseasDepartments (including operation sites) Items requiring attention at some sites (Material or representative items only)

Ajinomoto Co., Inc.

Domestic Subsidiaries(Plants and manufacturing sites)

Overseas Subsidiaries(Plants and manufacturing sites)

Plants, research laboratories, etc.• Procedures for PCB storage and storage methods need to be improved.• Contracts for outsourcing operations for industrial waste and the management of manifests need to be improved.

Sales and logistics• Contracts for outsourcing operations for industrial waste and the management of manifests need to be improved.

• Environmental management system needs to be upgraded at branch offices. • Contracts for outsourcing operations for industrial waste and the management of manifests need to be improved. • Risk management and identification of applicable laws need to be improved.• Communication of Group targets and activities must be improved.

• Identification and secure operation within boundaries of applicable laws need to be pursued in China.

Major Issues


Revised Items FY2001 System System for FY2002 and Onward

Expanded scope of operations( =Examples of projects)

Reinforcement of corporate governance( =Procedures)

Production, researchPlant construction or expansion, change in production processes, etc.

[Required]Self-assessment by the department proposing project

[Option]Deliberation and instruction by the Deliberation Panel (Environment Department, specialists)(Where the Environment Department was not designated as a consulting party)

All business activitiesCommencement of new businessFixed assets, capital investmentDisposal of inventory assets (contamination, waste, etc.)

[Required]Self-assessment by the department proposing project(The Environmental Assessment Summary)

[Required, where significant environmental impact exists]Deliberation and instruction by the Environment Department and technical expertsConsultation with the Environment Department

Audit by Audit Department


Internal Environmental Audit

Third-party Auditing


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Improved level of assessment and greater num-ber of assessment projects as a result of train-ing and the introduction of a new systemThe number of projects assessed during the term rose dramatically from 29 in FY2001 to 68* in FY2002 as a result of establishing a new assessment system and providing thor-ough education. These results followed the increased number of projects related to the disposal of products and raw materials, sales and purchase of real estate, and the sales of new products (containers and pack-aging), in addition to conventional assess-ment projects such as plant equipment in-vestment. Environmental assessment train-ing and self-assessment by the departments advancing the proposal brought about posi-tive operational impacts such as prevention of environmental problems associated with waste disposal methods.

Operational Conditions and Achievements

Environmental Training

Strengthening internal auditor training through enhanced learning opportuni-ties To maintain and strengthen its environmental management system, the Ajinomoto Group continually expands the competencies of its internal auditors through enhanced learning opportunities, including various study meet-ings with both internal and external lecturers. For example, a two-day Internal Environmental Auditor Training Course is periodically conduc-ted for employees in domestic Group compa-nies by the Environment Department, and in-cludes practical reviews that highlight the ac-tual state of the Group's activities against its targets, thereby improving course quality. This training course was held five times in FY2002 and attended by a total of 143 employees.

Internal Auditor Training

The Ajinomoto Group incorporates in-formation on global environmental is-sues and corporate social responsibili-ties into the standard orientation ses-sions for new recruits and staff as-signed overseas. Employees at each plant are provided with special training related to environmental risks and worker safety, and periodic emergency training.In addition, the Group recently stepped up its efforts to increase by 2004 the number of internal auditors to 500 by training internal auditors to be respon-sible for auditing operation sites for the purpose of upgrading environmental activities of the entire Group.

*The number represents projects requiring corporate authorization. Many other environmental assessments were carried out at the operation site level.

Development of Environmental Assessment Operations January 1998

April 2001

July 2002

April 2003

Establishment of Procedures for Assessing the Environmental Impact of Production and Research The regulations stipulate the requirements for conducting assessments on production and research related to construction projects.

Partial revision of Procedures for Assessing the Environmental Impact of Production and ResearchThe revision stipulates that project authorization requests must include environmental assessments and also defines the required reporting procedures for the assessments attached to the requests.

Extensive revision of Environmental Regulations, and establishment of Bylaws of the Environmental RegulationsPartial revision of Procedures for Requests Requiring Authorization, and establishment of Detailed Procedures for Requests Requiring AuthorizationEstablishment of Procedures for Business-related Environmental AssessmentsThe scope of environmental activities extends to all business activities.The operational scope and responsibility of the environment assessment is expanded.An Environmental Assessment Summary must be attached to project authorization requests.

Training for internal auditors

Target Execution Period Time Details

Examples of Environmental Education

Introductory education about comprehensive global environmental problems, corporate social responsibilities, and environmental management of Ajinomoto Co., Inc.

Education in environmental managementTraining including workshops about Group environmental management and risk management

Ajinomoto Group management philosophy and environmental policy, Group environmental management, on-site training for environmental preservation of facilities and technologies

Number of employees whocompleted the formal EMS Auditor Training Course

Number of trainees who completed the Internal Auditor Training Course

As of July 2003

20

343

2004 (Projected)

50

500

Internal Auditor Training

Senior management should clearly demonstrate its commitment to environmental management

Director, Consulting Manager Knowledge Management Research & Institute

Mikio Sasai

During training courses for internal environmental auditors designed for Ajinomoto Group companies, we conduct unique programs representing a wide range of issues relating not only to specific global environ-mental issues and the ISO 14001 standard, but also to other diverse management approaches such as Cor-porate Social Responsibility (CSR). I was often surprised by the strong environmental awareness of training participants as reflected in their discussions of serious issues during training exercises. They talked about a variety of subjects, including the relationship between the organization and the environment or the stance of management. To my chagrin, I often heard partici-pants at the conclusion of training comment that department staff and manage-ment should also receive this training. I think these comments reflect the fact that, despite the significant effort already made to improve environmental manage-ment, the depth of the company’s commitment is not well communicated to em-ployees. Needless to say, in order to promote environmental management, em-ployees must tackle issues with strong awareness and dedication, and senior management must also clearly express its commitment to employees. I hope that every employee adopts these principles as their own personal stan-dards and will consider the potential environmental impact of all business activi-ties. It is also my hope that strong senior management will recognize the impor-tance of this commitment by employees throughout the Group and do everything they can to encourage and support it.

New recruits

Staff assigned to overseas work (prior to being dispatched)

Cadres of overseas corporations and local staff

New cadres

April

August or September

June

Twice a year

1 hour

2 hours

3 hours

1 hour lecture + half-day

on-site training


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Research and Technology Development


“Basic Technologies for Controlling the Pro-cess of Material Production of Plants”— pro-ducing industrial raw materials from vegeta-tion (Joint project with NEDO)The New Energy and Industrial Technology Development Organization (NEDO) was es-tablished in 1980 as a key governmentaffili-ated technology development organization. NEDO, in conjunction with corporations, pri-vate research organizations and universities, now addresses a wide range of research is-sues, including the development and pro-motion of new energy sources and energy conservation, as well as the development of technologies for new industries and the glo-bal environment-related industry. The Insti-tute of Life Sciences has participated in a NEDO project since 2002 to jointly develop “Basic Technologies for Controlling the Pro-cess of Material Production of Plants.” The purpose of this technology is to estab-lish the basic biotechnology for production processes in order to move industrial raw material production systems from their high

dependence on fossil fuels to an eco-friend-ly circulating industrial system that facilitates the conservation of resources and energy conservation while reducing environment load.The role of Ajinomoto Co., Inc. in this joint venture is to develop new technology for generating specific amino acids from plants utilizing our proven expertise in amino acid fermentation technology and to implement basic technologies for efficiently producing useful nitrogenous compounds from plants.

“Technology for Metabolic Control of Vegetation”—cultivation using small quantities of nitrogen fertilizer(Project subsidized by the Ministry of Agriculture, Forestry, and Fisheries)A large amount of nitrogen fertilizers Includ-ing organic fertilizer are applied to improve crop yield and quality. It is reported, how-ever, that repeated use of excessive nitro-gen fertilizers adversely impacts soil and water, leading to the call to develop alterna-tive fertilizers and reduce the amounts of ni-trogen fertilizers. In response, the Institute of Life Sciences is conducting research, with funding from the Ministry of Agriculture, For-estry, and Fisheries, to develop innovative biotechnology for controlling a series of metabolic processes. The technology has attracted high expectations from those con-cerned because once it is established and brought into practical use, agricultural pro-duction can proceed with minimal use of ni-trogen, with dramatically reduced burden on the environment in the 21st century.

Achievements in FY2002

The Ajinomoto Group seeks to expand and create new businesses through re-search and development efforts draw-ing upon the close cooperation of inter-nal company laboratories with various areas of specialization, Corporate re-search centers that exploit new high-tech industries, and the sharing of ba-sic technologies across the Group by technology and engineering centers. With the recent globalization of our business, we have positioned research, technology and engineering centers throughout the world and have actively pursued technological development in the context of specific regional or na-tional perspectives.Amid all these activities, environmental preservation has been clearly identified as a major R&D focus. We have actively pursued the development of efficient, environment-conscious production processes based in the Group’s fer-mentation processes and biotech-nolo-gy. With the objective of reducing waste and conserving energy, we have sought to continually improve produ-ction technologies. We also promote the development of recycling technolo-gy for industrial waste and by-products generated by production operations.Through those various research and technological development activities, the Group seeks to achieve Ajinomoto Group Zero Emissions—promoting the total elimination (substantial minimiza-tions) of environmental load in every aspect of business.

Spin-off Companies

Business Tie-ups

President

R&D Organization of Subsidiaries

Pharmaceutical Company

R&D Management Dept.Production Management Dept.Intellectual Property Center

Institute of Life SciencesResearch Institute for HealthFundamentals

Technology andEngineering Center

R&D Organization in Japan

Major Roles of Each Laboratory and Center

Global R&D Network

Ajinomoto Co., Inc.

Thailand Technologyand Engineering Center

Indonesia Technologyand Engineering Center

Ajinomoto U.S.A., Inc. Food Development Center of North America

Technology andEngineering Centerof the United States

Center of Production and Development

Ajinomoto PharmaceuticalsU.S.A., Inc.

Ajinomoto Pharmaceuticals Europe Ltd.

Tripartite Pharmaceutical Organization Regional Technology Centers Tripartite Food Products Organization Others

Ajinomoto-Genetika Research Institute

S.A. OmniChem N.V.

EuroLysine Biotechnology Center

Japan

China

U.S.A.

U.S.A.

Brazil

U.S.A.

U.K.

Russia

Belgium

France

Indonesia

Institute of Life Sciences

Fermentation & Biotechnology Laboratories

Technology & Engineering Center

International Production & Technology Center

Basic StudyApplication

DevelopmentDevelopment of Technology and

Engineering/ Recycling Technology, etc.

SHANGHAI AJINOMOTO FOOD RESEACHAND DEVELOPMENT CENTER CO.,LTD.Ajinomoto (China) Co., Ltd. Technology Dept.

Institute of Life Sciences Production of nitrogenous compounds for industrial raw materials from plants

PhotosynthesisNitrogen assimilation

Amino acidsProteinsSecondary metabolites

Animal feedIndustrial raw materials

The Sun

Increasing specific amino acid content through the analysis and genetic modification of plant biological functions to produce nitrogen-based compounds for industrial raw materials.

Plants

Thailand

Seasoning & FoodProducts Company

Global Foods &Amino Acids Company

Corporate Staff

Corporate Laboratories

Business Support

Food Research & DevelopmentLaboratoriesFood Products DevelopmentCenter

AminoScience LaboratoriesFermentation & Biotechnology LaboratoriesInternational Production & Technology Center

Pharmaceutical ResearchLaboratories


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Development of succinic acid derived from vegetation as the raw material for biodegradable plastic in partnership with Mitsubishi Chemical CorporationWe are jointly developing with Mitsubishi Chemical Corporation a process for produc-ing succinic acid derived from vegetation that can be used as raw material for biode-gradable plastic in Mitsubishi’s plants. In April 2003, Mitsubishi Chemical began pro-ducing polybutylene succinate (PBS), a pet-roleum-based biodegradable plastic, in their plant, which boasts a production capacity of 6,000 tons. The company, however, decided to switch by 2006 raw materials for PBS to

succinic acid derived from vegetation in re-sponse to the environmental concern shift-ing from biodegradability to vegetative ori-gin. Mitsubishi Chemical plans to manufac-ture PBS using succinic acid to be produced by technologies co-developed by Mitsubishi Chemical and Ajinomoto Co., Inc., applying Ajinomoto’s amino acids production tech-nology.Mitsubishi Chemical intends to reduce prod-uct price and expand the scale of its PBS business to 30,000 tons per year, toward a domestic production of 300,000 tons within ten years.

Reducing loss of dough through an opti-mum mixing technologyAJINOMOTO BAKERY PRODUCT CO., LTD., a manufacturer and supplier of frozen dough for major convenience stores, faces the challenge of reducing the volume of wasted dough. The company is developing a mixing control device based on the as-sumption that a quarter of the dough lost in production processes and at baking plants is attributable to the insufficient mixing of the dough. The company plans to reduce the volume of dough waste by approximate-ly 20%.

Fermentation & Biotechnology Laboratories

Technology and Engineering Center

International Production & Technology CenterRegional Technology Center

Eliminating landfill by increasing appli-cation of by-product recycling to the maximum extent (Indonesia Plant) The Indonesia Plant, which produces AJI-NO-MOTO, discharges by-products such as gypsum generated during the removal of calcium from molasses, activated carbon, and sludge.Although some of these by-products were placed into a landfill, the plant seeks to re-duce landfill waste on their own property to zero by the end of FY2003 through broaden-ing the applications of those recyclable by-products. This reflects the recent trend to-ward stricter environmental regulation by the Indonesian government and the fact that landfill areas have steadily approached ca-pacity.The plant began testing whether these by-products could be mixed with cement or used as fuel for firing bricks. Research is also being conducted to add value to these by-products. For example, studies indicate they may be used as material for organic fertilizers or soil conditioners. At the same time, the plant intends to improve conditions of existing landfills on their sites.

Completely recycling all solid byprod-ucts through appropriate local applica-tions (Thai Plant)Our Thai Plant is selling gypsum and activa-ted carbon as raw materials to local fertilizer manufacturers, since this gypsum contains ample potassium and activated carbon as well as organic nitrogen. The plant also suc-cessfully produced soil conditioners using these by-products by adjusting the amount of nitrogen and pH levels, thereby achieving the complete recycling of all solid by-prod-ucts. Similarly, liquid by-products are util-ized as liquid fertilizer or raw materials for fertilizer. At the same time, new technology is being developed to add value to liquid by-products while examining their potential for use in fish culturing or as supplementary materials for animal feed in light of the so-dium contained in liquid by-products as well as phosphate by-products, which are be-lieved to have an effect on vegetation and soil.

Development of silage additives through the use of amino acid liquor by-prod-uctsSilage that is produced by the lactic fermen-tation of green forage stored in airtight silos is widely used in North America, European countries and Japan as feed during low-yield forage-crop seasons.In 2001, the International Production & Technology Center in a joint venture with Professor Goto at Mie University, began de-veloping silage additives using amino acid liquor by-products. Upon completion of the project a patent application was filed in Ja-pan. The silage additive has attracted the atten-tion of the dairy farm because it facilitates lactic fermentation, suppresses secondary fermentation after the silo has been opened, and improves digestion. We are planning to file patent applications overseas including France, England, and the U.S.

I expect a company to contribute both socially and through sustainable economic growth. I believe that a corporation contributes to society through its business efforts and that sustainable economic activities in themselves are important social contributions. By sustainable economic ac-tivities I am referring to corporate action that main-tains the foundation for production and consump-tion for generations to come. The foundation for production and consumption is a holistic enter-prise comprising the people who are directly in-volved in producing and consuming, their daily ac-tivities and the entire environment that surrounds people and their actions. In light of this under-standing, every corporation must address environ-mental concerns. I have been engaged in a number of projects in-cluding the improvement of crop yield using liquor by-products of Ajinomoto Co., Inc., upgrading farming methods in ash-covered areas near the Pi-natubo volcano (Bio-cycle Project), and providing

training. I am impressed by the genuine commit-ment of Ajinomoto staff to bringing prosperity to the regions in which they are working and devel-oping solid partnerships with local people in sus-tainable corporate activities. These efforts, how-ever, would not have had the desired effects if the activities had not been thoroughly integrated into corporate management strategies. I am convinced that more of these kinds of strategic actions are essential for greater impact.

Landfill

Lead Researcher, Laboratory for Sugar Cane BreedingDepartment of Crop and Food ScienceNational Agricultural Research Center for Kyushu–Okinawa Region

Akira Sugimoto


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Environmental Accounting



Cost Category Item Major Purpose Investment Expenditure

Environmental Conservation Costs

Business area costs

Upstream/downstream costs

Management activity costs

R&D costs

Social activity costsEnvironmental damage costs

4,220,948

2,007,8280

2,213,120271,222

614,968

527,174

4,650707,000

300,890

257,4140

43,4750

0

1,042,233

00

Environmental conservation cost to curb environmental impact caused by production and service activities in the business areas 1) Pollution prevention cost 2) Global environmental conservation cost 3) Resource circulation costCost to curb environmental impacts caused by pro-duction and service activities both upstream and downstream

Environmental conservation cost in management activities

Environmental conservation cost in R&D activities

Environmental conservation cost in social activitiesCost caused by environmental damage

Category Item Unit FY2001 FY2002 Year-on-Year Increase/Decrease Remarks

Other Relevant Issues

Energy conservation activities

Prevention of air pollution Prevention of global warmingReduction in industrial wasteReduction in waste products

Production amount increased 0.2% compared to FY2001

Based on shipment value

546225.72

3621126

3341.57120

88.8427.004,851

TJGJ/ Production amount

(tons)tt

1,000tt/Production amount (tons)

1,000t%

100 million yent

522424.55

2619063171.49100

89.4220.604,581

238 TJ lower4.57% lower

100t lower220t lower

17,000t lower5.37% lower

20,000t lower0.66% higher

640 million yen lower270t lower

Total consumed caloriesUnit energy consumption

NOx emissionsSOx emissionsCO2 emissionsCO2 emission intensityWaste generation Resource recovery rateAmount of waste productsWeight of waste products

ISO 14001 CertificationSoil Pollution Countermeasures

Social Activities

Following ISO 14001 accreditation at research laboratories in FY2002, 20 operation sites, including the Headquarters and branch offices, acquired certification in April 2003, completing certification by all domestic sites of Ajinomoto Co., Inc.Soil pollution inspection was conducted at seven operation sites at the Kawasaki Plant Site and one site at the Tokai Plant Site. Locations with problems were identified at the Kawasaki operation site. Interactive events were held for employees and neighboring residents. Inspection results and countermeasures were disclosed on the Company Web site.Bird Sanctuary on the Tokai Plant Site received the Ministry of the Environment's Award for Wildlife Protection in May 2003, and Mie Prefecture's Environmental Protection Award in July 2003.

Basic Policy of Environmental AccountingThe costs and effects of environmental operation are accounted for using the Environmental Accounting Guidelines 2002 edition published by Japan’s Ministry of the Environment. However, the economic benefit, which is internally controlled by us, is limited to actual, measurable performance. “The deemed or incidental effects” based on estimation, therefore, are not considered.

Accounting method1 Only the costs of the operation departments that are directly associated with environmental conservation activities, the general affairs departments and departments providing

environmental technological support are taken into consideration.2 Including investments solely for environmental purposes.3 Depreciation of the financial accounting was adopted.4 Including the total amount of green purchasing.5 Accounting for actual savings from energy conservation.6 “Other Cost” is provided in addition to environmental conservation-related items to indicate the cost of waste products.

Item Details Amount

Investment and R&D cost

Total amount of investment during the termTotal amount of R&D cost during the term

16,062,47022,779,000

Impact of Various Efforts Amount

Economic Benefit Accompanying Environmental Preservation Measures

Revenue from recyclingCost reduction from energy conservationCost reduction from recycling waste

130,36752,358

0

Item Major Purpose Investment Expenditure

Other Costs

Cost of waste products 2,060,0610Total cost of products that were disposed of due to return or damage

Aggregation scope: All operation sites of Ajinomoto Co., Inc.Aggregation period: April 1, 2002 to March 31, 2003

Unit: thousands of yen


1,343,123 6,345,963Total



Major Effects

Maintenance for environmental facilities, environmental survey cost (soil), levyActivated sludge treatment equipment

Incinerator, boiler, and otherCost for compliance with the Container and Packaging Recycling Law, waste products logistics cost, eco-friendly goods purchasing, cost incurred in department responsible for environmental preser-vation.Cost for construction of EMS for the Headquarters and research laboratories, and ISO accreditation activitiesBy-products treatment, packaging material development, manu-facturing process developmentCost for environmental events and nature conservation Cost for soil pollution countermeasures

Investment in FY2002R&D cost in FY2002

23

For the Ajinomoto Group, which produces and sells products that depend upon raw materials drawn from the blessings of nature, reducing the environmental loads generated by

our business activities is critical for ensuring sustainable business growth.With this understanding, we have committed ourselves to a bold policy we have titled,

“Ajinomoto Group Zero Emissions.”Our approach to zero emissions extends beyond the conventional scope of the term, which

generally refers to the elimination of landfills for industrial waste,to encompass every type of environmental load.

Based on this commitment, this section reports on our FY2002environmental activities and results.


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Total sales amount* approximately740 billion yen

Activities Addressing Global Warming


Actual Results for FY2002

2,270 thousand t-CO2

Total CO2 Emissions

Transition of Energy Consumption and Unit Energy ConsumptionEnergy consumptionIndex of unit energy consumption*(Index using unit energy consumption in FY2000 as 100)

*Unit energy consumption: Energy consumption per production volume

*Consolidated sales amount not including cooperative ventures

T(tera) =1012

Natural energy ratio: 8%

Refer to the footnote on P8 for the method of calculation

Composition

Purchased electricity

Purchased steam

Gas

Oil

Coal

Other (biogas)

1,780 thousand MWh

1,600 thousand tons

185 million m3

245 million r

2,940 tons

3,100 thousand Mcar

21.3%

21.1%

24.4%

32.9%

0.2%

0.04%

Energy Input by Category

Comparison with the previous year

Input

Unit energy consumption (Measured against production volume)

30,200TJTotal Energy Input

28,20030,900

30,200

2000 2001 20020

10,000

20,000

30,000

40,000

90

0

95

100100 97

90

(TJ) (%)

reduced by 2%reduced by 7%

Comparison with the previous year

Emissions

CO2 emission intensity (Measured against production volume)

reduced by 5%reduced by 10%

Sales Ratio, by Business

Fermentation-related: 25%Other: 29%

Food related: 45%

Domestic and Overseas Energy Consumption Ratio, by Business

Fermentation-related: 82.3%

Domestic: 9.1%Overseas: 73.2%

Food related: 8.9%


Other: 8.8%


Total consumption

30.2 thousand TJ

Comparison with FY1990Unit energy input:

Reduced by 31%

CO2 Emissions, by Source

Reduced by 5%

FY2001: 2,380 thousand t-CO2

Primarily used in Japan, Southeast Asia and South America

Primarily used in China

Fuel oil32%

Gas19%

Coal20%

Purchased electricity29%

FY2002: 2,270 thousand t-CO2

Fuel oil31%

Gas21%

Coal18%

Purchased electricity30%

http://www.epa.gov/landfill/products/ajinomoto.htm

URL

Promoting sound energy conservation efforts focusing on the production of energy-intensive fermentation-related productsOf the total energy input of the Ajinomoto Group in FY2002, approximately 80% was directed to the production of fermentation-related products, including amino acids. The Ajinomoto Group identified this source of environmental load early in its business de-velopment and for more than 30 years ap-plied biotechnologies to improve the pro-duction process of fermentation-related products. As a result, we have realized stea-dy results, including a 31% reduction in unit energy consumption (against production volume) used for the production of fermen-tation-related products, compared to FY1990 levels, by our overseas Group com-panies.

Reduced total CO2 emissions by 5% compared to the previous year through steadfast efforts across the entire Group Total CO2 emissions of the Ajinomoto Group in FY2002 were 2,270 thousand t-CO2, ap-proximately 5% less than the previous year. This reduction is attributed to the successful implementation of process improvements by the entire Ajinomoto Group, along with a re-duction in coal consumption, primarily used in China. Furthermore, the Ajinomoto U.S.A., Inc. North Carolina Plant, which has been participating in a project to collect methane gas generated from local garbage landfills and utilize it as a fuel, meets all its own fac-tory steam requirements using the collected methane gas. A detailed report of this pro-

ject appeared on the Web site of the Envir-onmental Protection Agency (EPA) of the United States as a best practice in energy conservation.

Energy Conservation Activities

CO2 Emissions Reduction Activities

The Ajinomoto Group takes action to reduce CO2 emissions toward prevent-ing global warming. Since significant amounts of energy are consumed in our production operations, including fermentation-related products such as amino acids, the Group promotes ener-gy-saving measures, particularly em-phasizing productivity improvements related to amino acids. As a result, the total energy input of Group domestic and overseas companies was 30,200 TJ, approximately 2% less than in the previous fiscal year. Moreover, CO2 to-tal emissions were reduced approxi-mately 5% from the previous year to 2,270 thousand t-CO2.

Primarily used in Japan, Europe and the U.S.


ConsumptionCategory

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Waste Reduction Activities

Established Bio-cycle system through a 20year effort to effectively utilize by-productsOf the total 1,815 thousand tons of by-prod-ucts generated by the Ajinomoto Group in FY2002, 1,695 thousand tons, or 93%, were related to the manufacture of fermentation-related products, including amino acids. Starting more than 20 years ago, the Ajino-moto Group has been working to develop technologies to effectively utilize by-prod-ucts of fermentation-related products, and in our overseas plant, the Group also has established “Bio-cycle” in which by-prod-ucts of fermentation are applied in the culti-vation of raw materials such as sugarcane used to produce AJI-NO-MOTO. As a result of those activities, the resource recovery ra-

tio of wastes generated during production of fermentation-related products has reached 96.6%. At the same time, we have attained an 83.8% resource recovery ratio in our do-

mestic food production plants, despite the diverse and sometimes difficult-to-recycle nature of the waste generated.

Relationship Between the Generation of By-Products and Business Structures

Nine plants designated as Zero Waste Emissions PlantsEven as the Ajinomoto Group has attained a 95.0% resource recovery ratio across the entire Group, one domestic plant and eight overseas plants have become Zero Waste Emission Plants; that is, achieving a re-source recovery ratio greater than 99.0%. Furthermore, we are currently working to raise the resource recovery ratio to ensure all Group companies operate Zero Waste Emissions Plants.

Attained zero ocean dumping Previously, some portion of by-products from the Peru Plant had been dumped into the sea. We no longer carry out this prac-tice. The entire quantity of such by-products is now sold as fertilizers, thereby achieving a “zero” ocean dumping ratio for all domestic and overseas Ajinomoto Group companies.

Reduction of landfills on corporate propertyOverseas plants that have maintained waste landfills on their property have been focus-ing on reducing waste. In FY2002, in addi-

tion to the success of the Philippines Plant to completely eliminate this source of waste, the Indonesia Plant significantly reduced the volume of its onsite landfill dumping. In ad-dition, the Ajinomoto Group has been accel-erating the improvement of the group-wide resource recovery rate by setting our own voluntary standards, Group Global Mini-mum, in April 2003 toward reducing the en-vironmental burden of the entire Group, which includes a requirement to discontinue waste landfills on corporate property.

Activities of the Knorr GroupThe four Knorr Group companies have been working to recycle waste using various methods, and have attained a resource re-covery ratio of 98%. Tokai Knorr Co., Ltd., in particular, has become a Zero Waste Emis-sions Plant. Hokkaido Knorr Foods Co., Ltd., a producer of sweet corn powder as the main ingredient of corn soup, is reusing sweet corn leavings generated by produc-tion processes as organic fertilizers and cat-tle feed.

Corn used for products is grown by 250 contract farms in a town which strictly con-trols fertilizers and the spraying of agricultu-ral chemicals, yielding a reliable, safe and hygienic system.

Resource Recovery Ratio Improvement Activities

The basic goal of the Ajinomoto Group is to reduce external disposal of waste to the furthest extent possible by fully util-izing by-products and waste generated through business activities.In addition, in order to quantitatively monitor and evaluate the progress to-ward achieving our goal, we have con-centrated on increasing the resource re-covery ratio by setting our own, more demanding goals. The resource recovery ratio in FY2002 was 95.0%, a 1.8% in-crease from the previous fiscal year. We plan to further increase the resource re-covery ratio in order to increase the number of Group “Zero Emissions Plants” (plants with a resource recovery ratio of 99.0% or greater).

Actual Results for FY2002

Volume of all generated waste

95.0%1,815

thousand tons

Volume of waste disposal:90 thousand tons

Volume of recovered resources:1,725 thousand tons

Resource recovery ratio*

*The weight ratio of waste converted to commercialized by-products, recycled (including heat recovery), or effectively utilized, divided by the waste (process by-products, general waste) generated by the business activities.


Increased by 1.8%

Total Volume of Generated By-products, by Business

Food related: 4%, 66 thousand tons

Volume of allgenerated waste:

1,815 thousand tons

Sludge: Animal and plant residues:

Waste acids and waste alkalis:

Other

25 thousand tons

22 thousand tons

3 thousand tons


By-products breakdown

Fermentation-related: 93%, 1,695 thousand tons

Other: 3%, 55 thousand tons

Waste Recycling method

After dehydration, processed into fertilizer by fermentation, or cement raw material or used in heat recovery

Processed into fuel by calorie control or oil-water separation

Recycled as resins, or processed into fuel or cement raw material after thorough separation

Recycled as materials by thorough separation or reused

Processed into fertilizer or animal feed, or used in heat recovery

Recycling Method for the Waste

Sludge

Cornfield Manufacture of sweet corn powder

1,358 thousand tons318 thousand tons

5 thousand tons

Concentrated liquid by-products:

Sludge:Animal and plant residues:

Other


By-products breakdown

Waste oils(vegetable oil, machine oil)

Waste plastics

Bottles/cans/glass/cardboard/paper

Garbage


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Activities to Reduce Environmental Load Caused by Wastewater


Undertaking a variety of measures to reduce environmental loads using ac-cumulated technological expertiseThe Ajinomoto Group adequately treats waste in various forms to reduce environmental loads associated with wastewater. For example, high-performance, large-capacity activated sludge treatment equipment is used to treat waste-water before the newly cleaned water is re-leased into rivers.For example, the Kawasaki and Kyushu Plants of Ajinomoto Co., Inc. recovered BOD, nitrogen, and phosphorous from wastewater and solidi-

fied the waste into excess sludge to be sold as raw material for fertilizers, while the Tokai Plant incinerated these waste materials. In addition, a lysine plant in Thailand introduced a biological denitrification (BDN) treatment method that can efficiently remove BOD and nitrogen compo-nents from discharged wastewater, such as wa-ter used for washing. This method has already been introduced to several amino acids manu-facturing plants of the Ajinomoto Group and is demonstrating solid results. The expertise ac-cumulated through this experience will be shared with other plants.

Adequate Wastewater Treatment

Wastewater from manufacture of fer-mentation-related products such as AJI-NO-MOTO and amino acids in-cludes high concentrations of BOD and nitrogen. Therefore, the Ajinomoto Group has been working to reduce the environmental load from wastewater in various ways, including appropriate treatment of these substances along with the development and introduction of wastewater treatment technologies. Beyond simply complying with the ef-fluent regulations of various nations and regions through these efforts, in March 2003, we formulated our own voluntary standards for wastewater en-vironmental load that all Group compa-nies worldwide are required to observe in order to more aggressively reduce wastewater, even in nations and re-gions with inadequate legal or regulato-ry safeguards. The entire Group has been making every effort to meet these voluntary standards. In addition, the nature of the manufac-

turing process for fermentation-related products requires large quantities of water resources, such as cooling water and water used for washing. Therefore,

we have been implementing measures to effectively utilize water, for example, through the recycling of water resour-ces.

Measures Against Soil Pollution

Actual Results for FY2002 Consumption


Total amount 205,000

thousand tons

Industrial water:21%

River water and well water (directly used in the process) 11%

River water (for indirect cooling): 63%

Tap water: 6%

Water releaseWater consumption


Total amount 201,000

thousand tons

Released to public waters after wastewater treatment: 17%

Released to public sewerage:1.5%

Indirect cooling water, etc.: 81%

900 tons

1,700 tons

50 tons

BOD

Nitrogen

Phosphorus

Nishiki-goi carp majestically swim in an in-plant pond through which treated wastewater passes before being released into a river(Kamphaengphet Plant, Thailand).

Results of Soil Survey at the Kawasaki Plant and Subsequent Measures

Place/name of construction project

Area (m2)

Details of anti-pollution construction

Date reported to the city

Pollution status (maximum concentration against environmental standard)

Soil elution Underground waterKawasaki Daishi Station SquareTrans-Kawasaki Route Construction SiteConstruction site of parking lot for exclusive use of the new distribution warehouse Facilities, gate, and site for parking lot extension of the Institute of Life SciencesCountermeasures for surface soil contamination at the plantCountermeasures for groundwater contamination at the plant (1)Countermeasures for groundwater contamination at the plant (2)

1,773

1,250

1,965

8,000

747

344

Total mercury

Total mercury

Total mercury

Total mercury

Total mercury

Total mercury

126

50

19

76

174

2

No pollution

No pollution

No pollution

Total mercury

Total mercury

56

8

Removal by excavation completedRemoval by excavation completedRemoval by excavation completedRemoval by excavation and containment completedUnder construction for removal by excavationUnder construction for removal by excavation

September 10, 2002

February 12, 2003

April 7, 2003

April 23, 2003

July 9, 2003

July 24, 2003

We submitted Environmental Survey Report (voluntary survey results) for the entire Kawasaki Plant Site to Kawasaki City on December 10, 2002. Countermeasures for disposing of excess soil generated in association with in-plant construction have been properly taken, including reports to Kawasaki City, as nee-ded. Detailed data and survey results of other operation sites are published on the Web site. http://www.ajinomoto.co.jp/ (content in Japanese only)URL

Soil survey

Basic policies to prevent and reduce soil pollution1. We will comply with laws and regulations concerning soil pollution.2. We will manage soil quality so that it has no impact on public health or the surrounding environment.3. We will disclose necessary information on soil pollution to our

company's stakeholders.4. We will prevent soil pollution from occurring.

The Ajinomoto Group has established basic policies concerning soil pollution and con-ducts soil surveys centering on plants both in Japan and overseas in accordance with these policies. Whenever the surveys un-cover issues at our operation sites, we re-port the results to related authorities, dis-close them to the public, and take the nec-essary actions to resolve them.


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Chemical Substances Control

Decommissioned all small incinerator unitsBeginning in December 2002, more stringent regulations of dioxin emissions and the structural and technical standards of inciner-ation facilities went into effect under Japan’s Law Concerning Special Measures against Dioxin. To comply with these regulations, we accelerated the removal of small incinera-tors (50 kg/h or more) and decommissioned all the units at Ajinomoto Co., Inc. and its domestic subsidiaries by the end of FY2002.

Thoroughly implementing stringent inspec-tion and control, and reporting storage con-ditions to appropriate authorities Ajinomoto Co., Inc. possesses 79 units of equipment and components using PCBs to be disposed, while domestic subsidiaries own 59 units. These items are placed into leak-proof containers and stored in special locked warehouses. We are performing proper control and security of these items and periodically report to the appropriate authorities in accordance with the PCB Spe-cial Measures Law, effective July 2001.

Dioxin Control PCB Control

Violations of Environmental Laws, Environmental Accidents and Complaints

Observing various laws and regulations, and disclosing the status of compliance to administrative authorities as needed There were no serious violations of environ-mental laws, prosecutions, penalties/non-pen-al fines, or accidents that seriously impacted the environment, associated with Ajinomoto Group companies in Japan in FY2002. Al-though we initiated administrative guidance in six cases in which standard emission and drainage levels had been temporarily excee-ded, we immediately implemented corrective actions in each case.

The Ajinomoto Group responds promptly to complaints from neighboring residents and takes necessary measures for improvementThe Ajinomoto Group companies in Japan recorded 24 incidents of complaints to our plants from neighboring residents in FY2002. The type of complaints included noise (12 cases), odor (7 cases), vibration (2 cases), water quality (1 case), and others (2 cases). We responded immediately and took necessary actions in each case. We will make every effort to prevent future inconve-nience to neighboring residents.

Serious Violations of Environmental Laws Complaints

Continuously reducing designated substances based on precise evalua-tionsThe PRTR Law requires that annual treat-ment of designated chemical substances exceeding one ton* be reported; a total of 25 of these substances were used in the Aji-nomoto Group companies in Japan this year. The released volume of substances by destination are as shown in the graph at the right. These substances were used mainly in the production of specialty chemicals. By more precisely evaluating the actual situa-tions, we continue to strive to reduce the use of these substances.

PRTR Substances Control

*For specific class 1 designated chemical substances, those used in amounts exceeding 100kg/year, and dioxins, are subject to control.

PCB container

Notes on the table at the right Please note that, for the following reasons, the Volume Treated values do not correspond to the sum of the columns for Air, Water, Soil, and Volume Transferred for some substances1. Not all descriptions are included for collection recycling, transfer of substances to material products, and controlled landfill.2. For class 1 designated chemical substances, the volume treated has been reported for consumption exceeding 100 kg/year, as specific class 1 designated chemical substances. Discharge sites have been summarized and reported for release volumes exceeding one ton/year in accordance with the stipulations of the PRTR law.

Volume Air Water Soil Extinction Volume TransferredSubstance Name

PRTR Substanas and Volumes Released Unit:kg/year

Class 1 designated chemical substances

NN'-dimethylformamide

Acetonitrile

Antimony and its compounds<as antimony>

Polymer of 4,4’ –isopropylidenediphenol and 1-chloro-2,3-epoxypropane (liquid); bisphenol A type epoxy resin (liquid)

Pyrocatechol

Toluene

Formaldehyde

m-phenylenediamine

Xylene

Dichloromethane

Thiourea

Chlorodifluoromethane

Decabromodiphenylether

4,4’-isopropylidenediphenol; bisphenol A

linear alkylbenzenesulfonic acid

Bis(2-ethylhexyl) phthalate

Manganese and compounds

2,2-Dichloro-1,1,1-trifluoroethane

1,3,5-trimethylbenzene

Cyclohexylamine

Piperazine

Tris(dimethylphenyl) phosphate

Phenol

Specific class 1 designated chemical substances

Benzene

Dioxins(unit:mg-TEQ / year)

Total

286,00597,33795,000

82,000

74,90066,85055,10030,00022,50319,67018,32010,670

8,0007,4002,8722,6001,5261,5001,5001,2301,1001,0861,000

4421.29

888,613

465,719

0

0

042,617

200

1,2903,697

010,670

00000

50090000

30.11

64,571

0823

0

0

000000

2300000

11400

660000

00.17

1,620

000

0

0000000000000000000

00

0

0145

0

0

34900000

67000

320000

570000

00

1,163

286,00490,55595,000

82,400

74,55119,86755,47830,00017,944

2,14818,300

08,0007,410

3092,600

4871,0001,517

01,118

01,017

301.01

795,734

The following three plants of the Ajinomoto Co., Inc. willingly accept plant tours. For more informa-tion, contact:

Plant Tour InquiriesKawasaki Plant: General Affairs GroupTel: +81-44-222-1114Tokai Plant: General Affairs and Hu-man Resources GroupTel: +81-593-46-0111Kyushu Plant: General Affairs GroupTel: +81-952-47-2211

Plant tours are usually conducted in Japanese only.


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Achievements in environmentally sound containers and packaging assessment

The rates of reduction in the weight of mate-rials for containers and packaging of new products and products associated with the revision of containers and packaging were 14% for household use and 6% for indus-trial use. However, annual consumption of containers and packaging has been increasing due to growth in sales quantities and rising demand for products packaged in small portions. We will promote environmentally sound contain-ers and packaging in the future through steadily reducing the weight of packaging materials for individual products and adopt-ing materials with lower environmental loads.

Compliance with Container and Pack-aging Recycling Law Systems and services essential for recycling containers and packaging such as separate disposal, collection, and reuse in other prod-ucts are increasingly entering into public use by consumers and local communities. The

Ajinomoto Group is tackling the issue of container and packaging recycling by bear-ing the expense for outsourcing recycling services calculated in accordance with the material and volume of containers and pack-aging.

Major Activities in FY2002

The primary functions of containers and packaging are to preserve the quality of the goods contained and to encourage consumers to purchase based on brand recognition. The Ajinomoto Group ad-vocates the improvement of containers and packaging that is essential for products, as a vital aspect of environ-mental responsibility. Specifically, we assess the environmental compliance of containers and packaging using the Eco-Index for Containers and Packag-ing as part of our Quality Assessment for Newly Developed Products. We have been working on assessment and improvement from the perspective of LC-CO2 by partly revising as-sessment items and newly adding Pre-vention of Global Warming as of Sep-tember 2003.

see P29

see P29

Containers and Packaging Activities


Number of Items Assessed

74 22Products for household use Products for industrial use

Volume of Materials for Containers and Packaging for Household Products

SteelAluminumGlass (colorless)Glass (brown)Glass (other colors)PaperPlasticPET (for beverages)

FY2001Ajinomoto Co., Inc. Ajinomoto Frozen Foods Co., Inc.

FY2002 FY2001 FY2002

Unit: thousandsof tons

Unit: millionsof yen

0

5

10

15

20

25

21.1

24.7

3.1 3.2

Expenses for Outsourcing Recycling Services

0

50

100

150

200 Unit Cost for Outsourcing RecyclingServices by Material (FY2003)

Glass (colorless) ¥3/kgGlass (brown) ¥5.7/kgGlass (other colors) ¥8.6/kgPaper ¥25.2/kgPlastic ¥76/kgPET bottles ¥64/kg

FY2002Ajinomoto Co., Inc. Ajinomoto Frozen Foods Co., Inc.

FY2003 FY2002 FY2003

170

205

65

92

Quality Assessment for Newly Developed Products

Label display

Packaging materials

Products

Production process

Raw materials

Check Items

Eco-Index for Containers and Packaging

Environmentally Sound Containers and Packaging Assessment

Reg

ardi

ng e

nviro

nmen

tal

com

plia

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Suitability forrecycling or disposal

Prevention ofglobal warming

Efficient useof resources

Labeling

The Eco-Index for Containers and PackagingEvaluation Item Evaluation Points

Efficient use of resources

Recycle adaptability

Disposal suitability

Prevention of global warming

Labeling and others

Special assessment item

Other comments

Over packaging

Volume of disposed packaging materials

Use-by date and availability of refill products

Usage of recycled materials

Adaptability to recycling systems

Adaptability to separate waste collection

Reduction in volume for disposal

CO2 emissions

Environmental labeling

Improvement efforts to differentiate products

Whether a product is excessively packaged.How many layers of packaging used.

Weight ratio of a disposed container to the product content.

Length of the period between opening and disposal of a container.Whether a refill product has a reusable

container.

Amount of recycled materials used for packaging.

Whether materials used are adaptable to the existing or planned recycling systems.

Whether recyclable portions can be easily segregated for separate waste collection.

Whether the volume of a container and packaging can be reduced after use for easy collection.

Rate of reduction in CO2 emissions (LC-CO2) discharged in global environment across the entire life cycle from

material procurement to disposal and recycling

Whether useful information for environmental preservation is offered in addition to the standard display required by laws.

Whether environmental compliance is improved and whether it is superior to that of the previous types or goods of competitors.

Whether any efforts other than those mentioned above have been made to exhibit corporate attitudes concerning environmental protection activities.

What improvements are made compared to the previous types or goods of competitors.

Whether a container or packaging is really superior in other functions when the assessment point is low.

What additional measures should be taken.


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Container and packaging improve-ments reflect a variety of concerns, including conserving resources and reducing LC-CO2 loadsThe Ajinomoto Group strives to reduce en-vironmental loads from various standpoints based on the Eco-Index for Containers and Packaging. Here is a summary of how we in-corporated the reduction of LC-CO2 load as a new assessment item in September 2003.

Examples of Improved Containers and Packaging

What is LC-CO2?

In general, the method for calculating envir-onmental loads generated across the entire product life cycle from raw materials pro-duction to processing, packaging, logistics, sales and disposal of postconsumption waste, as well as the assessment of environ-mental impact, is called Life Cycle Assess-ment (LCA). LC-CO2 is a method for estimat-ing the total amount of CO2 derived from

fossil fuels which is emitted throughout the entire life cycle based on LCA. The Ajinomo-to Group strives to identify and reduce CO2 emissions throughout the entire life cycle of packaging materials while incorporating LC-CO2 load as an assessment item for Eco-In-dex for Containers and Packaging.

R

Cook Do Oyster Sauce 130 g bottle

Three popular Knorr Cup Soup items

Knorr pota Knorr Vegetable Potage series

Reduced weight of material used for containers and packaging Reduced weight of CO2 emitted from containers and packaging in terms of LC-CO2

TOPICS

What is biodegradable shrink film?1. Its major ingredient is polylactic acid (PLA) made from corn starch.2. It ultimately decomposes, in a natural process, into water and car-

bon dioxide by microbial activity, while retaining the same level of functionality as conventional plastic materials. Since its combustion temperature is as low as that of paper, the film does not cause the damage to incinerators that conventional plastics do. In addition, carbon dioxide emissions are not derived from fossil fuels but are produced from natural vegetation sources, and therefore do not cause global warming.

First in Japan! An environmentally sound biodegradable shrink film

Compressible Eco-Bottle for cooking oilJapan Star Award (Japan Marketing Association Chairman's Award)

Ajinomoto brand products have been highly evaluated as environmentally sound products. The Eco-Pouch for Salad Oil received the Japan Star Award (Ministry of International Trade and Industry Award) in the Japan Packaging Contest, and the World Star Award in the World Packaging Contest. The following two products received awards in FY2003.

An environmentally sound biodegradable shrink film will be adopted for AJI-NO-MOTO® 30g bottles. (Transition started in late November 2003.) This is the first time a processed food manufacturer in Japan has applied this technology for the cap seal of packaging materials. It will also be adopted for 75g bottles.“Let’s QUIQ” pasta, standing pouch

Good Packaging Award (Food Packaging Section Award)The package was downsized by packaging pas-ta noodles and seasonings in a single bag. A water level gauge is provided on the container.

The bottle is easily compressible to half of the original size for disposal after use. In addition, the plastic weight has been reduced by 20% compared to conventional bottles.

The only competition in Japan that recognizes excellence in packaging and technologies that meet current socie-tal expectations for general containers and packaging. (Sponsored by the Japan Packaging Institute and suppor-ted by the Ministry of Economy, Trade and Industry, The Japan Chamber of Commerce and Industry, etc.)

*

Glass weight was reduced by 8.5% (18g/bottle).

Volume of glass used

CO2 emissions

Reduced by 36 tons per yearReduced by 41 tons per year


CO2 emissions



CO2 emissions

Reduced by120 tons per yearReduced by135 tons per year

Volume of plastic used

CO2 emissions

Reduced by124 tons per yearReduced by470 tons per year

Volume of PET used

CO2 emissions


Volume of container material used

CO2 emissions

Volume of plastic used

CO2 emissions

Reduced by 19 tons per yearIncreased by 9 tons per year

Aji-Shio 110g bottleGlass weight was reduced by 6.4% (15g/bottle).

PET bottle weight was reduced by 19% (6 g/bottle). Glass weight was reduced by 24 g/bottle.

Steel can was replaced by a paper box. Weight was reduced by 17% (0.29 g/packet) making inner plastic package thinner.

Volume of paper used

CO2 emissions


Box was downsized in response to consumers’ opinion that a box for three packets was too large in the context of conserving resources.

Content was directly filled into the cup, eliminating the use of an inner packet

AJI-NO-MOTO 75g bottleR

Amino Vital Water Charge 500 ml PET bottleR

Hon-Dashi Katsuodashi for giftsR

R

R R

R

R

Two products won awards in the Japan Packaging Contest* for FY2003



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Past results and current conditionsIn FY1995, the Ajinomoto Group introduced railway containers for product transport, and in FY2000, we introduced railway containers for the mainline transport of frozen foods, for the first time in the food industry. These ex-amples illustrate our efforts to improve the selection and application of logistics modali-ties. As a result, the rate of modal shift in FY2002 was 18.1% (on a tonnage-kilometer basis), a 1.6% increase from the previous year’s lev-els.The CO2 emissions by domestic products transportation in FY2002 were 50,860 t-CO2, while the CO2 emission intensity (per ton-nage-kilometer) was 146 g-CO2/tonnage-kilometer. We will continue to aggressively promote changes in logistics modalities and work on reducing CO2 emissions in product transportation.

Introduction of 31-foot Wing Rail Freight ContainersIn September 2003, we introduced a large 31-foot Wing Rail Freight Container for product transportation in the Kanto–Kansai and Kanto–Kyushu routes, which represent major mainline sections, in cooperation with Japan Freight Railway Company and ex-press companies. The introduction of this container is expected to reduce CO2 emis-sions from product transportation by ap-proximately 1,400 tons per year. While the 12-foot container units currently prevalent in room-temperature railroad con-tainers provide a good supply system as general-purpose containers, most are used for non-palletized bulk loading, which limits efficiency. On the other hand, while the 31-foot container has a loading capacity equiv-alent to a 10-ton truck and supports palle-tized shipments, the supply system has not been able to accommodate its use as a gen-eral-purpose container, and the container has currently been limited to the private

shipments of leading logistics companies. The recent successful introduction of the 31-foot Wing Rail Freight Container was re-alized as a result of the agreement based on Ajinomoto’s strategy for reducing CO2 emis-sions through changes in logistics modali-ties and JR Freight’s plan to increase the volume of cargo handling by changes in log-istics modalities, and on agreement that the development of 31-foot containers for gen-eral purposes would be matched with Ajino-

moto’s provision of stable cargo volume to JR Freight. We will also confirm transporta-tion quality as a result of this effort and ex-plore the possibility of introducing the 31-foot container to medium- and long-dis-tance transportation routes. We are determined to continue pursuing the compatibility of simultaneously reducing logistics costs and environmental load by advancing a variety of policies, including changes in logistics modalities.

Activities for Changes in Logistics Modalities

The Ajinomoto Group is working to re-duce the environmental load during log-istics operations under the slogan En-vironmentally Friendly Logistics.We particularly focus on modal shifts, that is, shifting to railway container log-istic movements for mainline transpor-tation, through such efforts as the peri-odic convening of Study Meetings on Environmentally Friendly Logistics with the support of the Japan Freight Rail-way Company (JR Freight), and with participation by Ajinomoto Co., Inc., Aji-nomoto Logistics Corporation, and Aji-nomoto Frozen Foods Co., Inc., in a joint quest for efficient logistics.

Logistics Activities


Starting in FY2002, the Ajinomoto Group, through the Logistics Planning Department of the Seasonings & Food Products Company, has periodically convened Study Meetings for Environmentally Friendly Logistics with the sup-port of JR Freight, toward further reducing log-istics-related environmental loads. Environmen-tal impacts generated by logistics activities are identified and analyzed, enabling the develop-ment of solutions for reducing environmental loads in our future activities. An extensive con-tribution has been made to reduce CO2 emis-sions by changes in logistics modalities for mainline transportation; subsequently, this transportation system will be expanded.

Periodic Convening of Study Meetings on Environmental Logistics

Study Meeting for Environmentally Friendly Logistics

31-foot Wing Rail Freight Container Loading

Weight, distance, and means of transport are extracted from daily shipping data and converted into numeric values. CO2 emission basic units provided by the Ministry of Land, Infrastructure and Transport are applied (48 g-C /tonnage-kilometer for trucks and 6 g-C/tonnage-kilometer for railroads).

Calculation Method for CO2 Emissions in Changes in Logistics Modalities

CO2 Emissions by Domestic Product Transportation

146g-CO2/tonnage-kilometer

50,860t-CO2

Aggregation scopeProducts belonging to categories of dry foods, gifts, edible oils, and frozen foods of Ajinomoto Co., Inc., Ajinomoto Oil Mills, Co., Inc., and Ajinomoto Frozen Foods Co., Inc., except products shipped in bulk.

Unit energy consumption (per tonnage-kilometer)

Rate of Change in Logistics Modalities (FY2002)

CO2 emissions reduced 16% (9,700 tons per year)

Compared with transportation using only trucks

Rate of change in logistics modalities by product categories

Frozen foods

Dry foods

21.3%

Edible oils

Gifts

26.4%

18.1% 1.6% increaseComparison with the previous year


***

***

C=Carbon. C is converted to CO2 by multiplying by approximately 3.67 (molecular ratio = 44/12).Unit in transportation. Transportation of cargo weighing one ton for 1 km equals one tonnage-kilometer

14.9%

14.1%

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The Ajinomoto Group promotes com-pliance with exhaust gas controls en-forced in October 2003Ajinomoto Logistics Corporation, which oversees the general logistics operations of the Ajinomoto Group, has been steadily ad-vancing compliance with the diesel vehicle emission gas controls enforced in Tokyo, Saitama Prefecture, Chiba Prefecture, and Kanagawa Prefecture since October 2003. This regulation is a cooperative, self-regula-ted effort involving municipalities of one metropolis and three prefectures of the To-

kyo metropolitan area, and is intended to prevent air pollution by mandating vehicles of certain age to be equipped with exhaust gas removal equipment.Ajinomoto Logistics Corporation has been equipping vehicles that fall under the con-trols for particulate matter (PM) reduction systems and replacing vehicles to ensure full compliance. Furthermore, the company has been working to prevent air pollution by hav-ing some vehicles use natural gas fuel sys-tems.

The Ajinomoto Group promotes compati-bility between reducing NOx and SOx emissions and bringing down costs.The Ajinomoto Group improves the efficien-cy of logistics operations by changing from transporting small cargo volumes between bases to cooperative distribution with other companies. We are promoting compatibility between environmental preservation, includ-ing reduction of NOx and SOx, and cost re-duction by decreasing the number of trans-port trucks required, through cooperative distribution. The Group has been pushing to select partners for cooperative distribution and negotiating with them under the leader-ship of Ajinomoto Logistics Corporation. We intend to further expand these activities.

Pursuing the potential of more effi-cient distributionAjinomoto Logistics Corporation conducted a field trial of a special-purpose vehicle to integrate food distribution and the collection of recyclable and discarded material. In the trial, conducted from February 3 to March 20, 2003, a modified food delivery vehicle collected vegetable matter discarded as waste generated at delivery points, mixed it, and delivered it to the Sendai Logistics Center for initial processing. Ajinomoto Log-istics Corporation will continue to pursue development of logistics operations through a variety of methods, with full consideration of the environment.

Exhaust Gas Control Compliance

PM reduction systems

Sticker for a vehicle meeting the PM

emissions regulation

Cooperative Distribution Activities

The Ajinomoto Group uses reusable rubber bands to stabilize cargo and reduce material used to secure cargo stacks.The Ajinomoto Group uses large quantities of shrink wrap to secure cargo stacks and prevent them from collapsing in the course of shipment. However, since such material becomes industrial waste after use, logistics centers are faced with the challenge of mini-mizing the use of such materials.In order to address this problem, Higashi-Ougishima Logistic Center is experimenting with the application of reusable rubber bands to prevent the collapse of stacked cargo. While some cargo is difficult to stabil-ize using a rubber band, and there is the challenge of collecting the rubber bands, the method is already demonstrating the poten-tial for replacing a significant volume of con-ventional shrink wrap, and is well worth pur-suing.

Considering the surrounding environ-ment, and thorough controls for pre-venting all types of pollutionLogistics centers have been working not only on comprehensive “safety first” practi-ces, but also to thoroughly control noise and light pollution, prevent soil and water pollu-tion from oil leakage, and manage the stor-age of inflammable materials to ensure the safety and comfort of neighboring communi-ties. In addition, logistics centers have been particularly focused on strengthening the adequate disposal of waste, with full aware-ness of their responsibility for handling the property of shippers.

Activities at Logistics Centers

Field Trial of Food Recycling by a Special-Purpose Vehicle

Special-purpose vehicle

Collection of discarded vegetable matter

Stabilizing with shrink wrap

Stabilizing with a rubber band

Logistics center


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Administrative Department Activities

Reducing the amount of discarded products It is important to minimize the quantity of products that are discarded without having been delivered to or used by consumers, such as returned goods or old inventory. Ajinomoto Co., Inc. has sought to do so through such efforts as strengthening the management of production and sales with the understanding and cooperation of cus-tomers.

Reducing the volume of sales promo-tion materialsSince materials used to promote product sales, such as POPs, posters, and storefront displays are ultimately discarded, we have been continually working to reduce unnec-essary sales promotion materials as much as possible. We expect this effort will contri-bute to reducing costs as well as the amount of waste.

Efforts Related to Sales Activities

Major environmental loads generated from administrative and sales depart-ments include the consumption of ener-gy, such as electricity and gas, as well as the associated CO2 emissions, the use of tap water, and discarded paper and rubbish. Although these environ-mental loads are at a much smaller scale than those generated from the production department, they are never-theless far from negligible when factor-ing in the accumulated environmental loads across all offices employing many workers. From this perspective, the Aji-nomoto Group has been working to identify the environmental loads of ad-ministrative and sales departments and making steady progress in reducing

such loads. We are also cutting back on discarded products and sales promo-tion materials.

Administrative and Sales Department Activities


Each Operation Site Implements Its Own Environmental PR

In-house posters (Corporate)

In-house posters anda small target card used at the Tokyo Branch office

LC-CO2 Equivalent Environmental Loads from Electricity, Gas, Waterworks, Paper and Trash in Environment around the Headquarters

0

500

1,000

1,500

2,000

LC-CO2 loads (ton-CO2/year)

FY1999

1,182

427

816083

FY2000

1,145

400

815541

FY2001

1,111

394

844928

FY2002

1,114

393

814949 Equivalent to 280 average

households in Japan

External disposal of wasteCopy paperTap water and sewerageGasElectricity

A patrol in a branch office

Performing various immediate activities The Tokyo Headquarters area, with approxi-mately 700 personnel, emits 1,700 t-CO2 (LC-CO2 equivalent) each year. These emis-sions correspond to the volume of CO2 emit-ted by 280 average households in Japan.The Ajinomoto Group reduces environmen-tal loads by the accumulated effect of small efforts, such as diligently turning off room lights, energy-conscious use of office auto-mation equipment (such as employees shut-ting down personal computers when leaving their desks for extended periods of time), encouraging the use of stairs instead of ele-vators, and separating trash.

*CO2 emissions derived from fuel (for kitchens, heating, gasoline, etc.), electricity, and waterworks consumed by households in Japan: 6.0 t-CO2 per household (Source: Ministry of the Environment)

Varying the lunch hour to reduce elec-tricity consumptionAdministrative departments of Ajinomoto Co., Inc. in the Kyushu area change their lunch break hour from 12:00–13:00 to 13:00–14:00 in the summer months from July to September to reduce electricity con-sumption during peak hours (13:00–16:00).

Office environment patrolIn the Kyusyu Branch office, the Branch General Manager, the Deputy General Manager, and the Chief of the General Affairs Group conduct period-ic patrols within the branch for the purpose of environ-mental improvement. In ad-dition, the Headquarters and every sales branch carry out improvement ac-tivities to reduce environ-mental loads through a variety of means.

*

Ajinomoto Group Osaka Building

Ajinomoto Group Osaka Building incorporatesa variety of environmental considerations

TOPICS

Completed in November 2003, the Ajinomoto Group Osaka Building incorporates a number of environmen-tal and local community considerations throughout its structure. First of all, several devices and functions have been installed in order to achieve harmony with the environment, such as ice storage air conditioners by which electricity is accumulated during evening hours for use during the daytime, the reuse of rain-water, and natural ventilation. In addition, the building was designed to facilitate interchange with the local community, including such provisions as a promenade and green space on the premises, along with a dis-play case at the first floor entrance which introduces our global environmental activities and displays re-covered cultural property.The building is also equip-ped to serve as an emer-gency administrative site in the event that the Tokyo Headquarters is unable to function as a result of dis-aster, such as a large-scale earthquake.


Site Reports from Three Ajinomoto Co., Inc. Operation Sites

OUTPUT

Kawasaki Plant SiteMain domestic plant— the birthplace of AJI-NO-MOTO

Plant Tour Inquiries: General Affairs Group Tel: +81-44-222-1114

Item Unit Actual results for FY2002

Input energy

Volume of water consumed

TJ

km3

2,791,137

43,256

INPUT

Item Unit Actual resultsfor FY2002

Product quantity kt 159

Product

CO2 (direct incineration of fossil fuels)

SOx

NOx

kt

t

t

134

2

97

Atmospheric exhaust

Volume treated

Pyrocatechol

Toluene

Acetonitrile

Dioxins

kg/year

kg/year

kg/year

mg-TEQ/year

74,900

4,335

3,809

0.43

Main PRTR substancesVolume of generated by-product

Volume of recovered resources


Volume of disposed waste

kt

kt

%

kt

58

52

88.6

6.7

Resource recycling, waste

Volume of water discharged

BOD

T-N

T-P

km3

t

t

t

13,023

72

327

3

Discharged water

Location

Main productsDate ISO 14001 certification acquiredDate ISO 14001 certification acquired

Kawasaki City, Kanagawa PrefectureSeasonings, amino acidsMarch 26, 2001(plant area)March 27, 2003(research laboratories)

(Plant and research laboratories)



Item Unit

Unit

Actual resultsfor FY2002

Substance

Regulatory Requirements and Actual Results

Unit

pHBODT-NT-P

mg/rmg/rmg/r

Regulatory requirements(maximum)5.8-8.6

6080

6

Voluntary standard

requirements Average Maximum

NoneNoneNoneNone

Actual results for FY2002

7.35.5

25.1

0.3

7.729.137.6

1.2

Regulatory requirements for discharged water

Applied facility

Regulatory item Unit

BoilerBoilerBoilerIncineratorIncineratorIncinerator

Maximum NOx concentrationMaximum SOx concentrationMaximum concentration of soot and dustMaximum NOx concentrationMaximum SOx concentrationMaximum concentration of soot and dust

ppmppm

mg/Nm3

ppmppm

mg/Nm3

Control value

8045304030

0.04

Average Maximum

Actual operation results for FY2002

411 or less0.002

31Less than 10.021

741 or less0.003

51Less than 10.046

Regulatory requirements for atmospheric exhaust

Category Unit

Air quality (exhaust gas)Incinerator ash (soot and dust)Water quality (discharge outlet)

ng-TEQ/Nm3

ng-TEQ/gpg-TEQ/r

13

10

0.0230.5200.380

Dioxins

Control for the items with *mark has been strengthened since June 2002 and the maximum actual operation results is the value prior to the strengthened regulation.

Discharged to:

Regulatory item

Public waters

Regulatory requirements


Plant Tour Inquiries: General Affairs Group Tel: +81-952-47-2211

OUTPUT

INPUT

Kyushu Plant SiteBiotechnology Plant for amino acids and seasonings that leads the fermentation production of the Ajinomoto Group


Unit

pHBODT-NT-P

mg/rmg/rmg/r


80

12016

Voluntary standard


6.1-8.340

10016


7.14.3

28.30.26

7.511.151.80.49


Applied facility


BoilerBoilerBoiler

Maximum NOx concentrationMaximum SOx concentrationMaximum concentration of soot and dust

ppmppm

mg/Nm3

Control value

1901,160120

Average Maximum


165808

39

1701,000

64


The incinerator has been shut down since April 2002.

Discharged to:

Regulatory item

Public waters

Category Unit


ng-TEQ/Nm3

ng-TEQ/gpg-TEQ/r

53

10

000

Dioxins




Input energy


TJ

km3

1,356,310

22,850

Location

Main productsDate ISO 14001 certification acquired

Morodomi-Cho, Saga-gun, Saga Prefecture Various amino acidsJuly 24, 1998



Product


SOx

NOx

kt

t

t

90

904

135

Atmospheric exhaust

Volume treated

Manganese and its compounds

Cyclohexylamine

Acetonitrile

Dioxins

kg/year

kg/year

kg/year

mg-TEQ/year

843

282

207

0.13





kt

kt

%

kt

24

23

97.2

0.7



BOD

T-N

T-P

km3

t

t

t

11,198

48

317

3

Discharged water



Item Unit

UnitSubstance


*

*



The gray heron is largest heron in Japan. It nests in the Bird Sanctuary, where it is among the most easily observed wildlife.The great egret is the largest species of the egret family.

A wild bird found primarily in Japan; reportedly inhabits chiefly natural areas such as undeveloped rivers.

Named for its unique method of flying; softly like a butterfly, alternately flapping its fore and hind wings, which are a beautiful blue metallic or dark blue.

Inhabits rivers and surrounding cultivated lands and urban areas, where it has proven to be more readily adaptive than the black-backed wagtail.

Wildlife in the Ajinomoto Tokai Bird Sanctuary

http://www.ajinomoto.co.jp/company/index.html(content n Japanese only)

URL

The Ajinomoto Tokai Bird Sanctuary, where natural wetlands habitat remains intact.Here are some of the wildlife species typically found in the Bird Sanctuary, including wild birds and insects, particularly dragonflies.

Black-Backed Wagtail

Chotombo Dragonfly

White Wagtail

Gray Heron and Great Egret

Site Reports from Three Ajinomoto Co., Inc. Operation Sites

OUTPUT

Tokai Plant SiteA plant for pharmaceuticals, amino science, and seasonings, surrounded by greenery and site of the Bird Sanctuary.

Plant Tour Inquiries: General Affairs and Human Resources Group Tel: +81-593-46-0111


Input energy


TJ

km3

1,076,177

16,512

INPUT



Product


SOx

NOx

kt

t

t

55

0

32

Atmospheric exhaust

Volume treated

NN'-dimethylformamide

Acetonitrile

Toluene

Dioxins

kg/year

kg/year

kg/year

mg-TEQ/year

268,901

92,651

62,335

0.73





kt

kt

%

kt

15

14

96.0

0.5



BOD

T-N

T-P

km3

t

t

t

15,780

66

136

27

Discharged water

LocationMain productsDate ISO 14001 certification acquired

Yokkaichi City, Mie PrefecturePharmaceuticals, sweetenersNovember 22, 1999



Item Unit

Unit


Substance


Applied facility


BoilerBoilerBoilerIncineratorIncineratorIncinerator

Maximum NOx concentrationMaximum SOx concentrationMaximum concentration of soot and dustMaximum NOx concentrationMaximum SOx concentrationMaximum concentration of soot and dust

ppmppm

mg/Nm3

ppmppm

mg/Nm3

Control value

500

10200

35100

Average Maximum


4200

270

Less than 5

4700

320

Less than 5


Category Unit


ng-TEQ/Nm3

ng-TEQ/gpg-TEQ/r

103

10

0.00220.0013

0.010

Dioxins

Unit

pHBODT-NT-P

mg/rmg/rmg/r


2512016

Voluntary standard


6.2-8.220254


7.14.28.61.7

7.36.2

16.43


Discharged to:

Regulatory item



Public waters

33

In order to contribute to sustainable development, a corporate citizen must establish partnerships and build trust with a broad range of stakeholders.

The Ajinomoto Group recognizes this principle as the foundation uponwhich our business operations can continuously fulfill these corporate social responsibilities,

determine future directions, and take action.This section reports on the Ajinomoto Group’s social activities from the following three points

of view: our customers, who are closest to us; our employees who operate our business;and the communities in which we operate.

Social Activities

Social Activities

The Ajinomoto Group has established systematic principles for practically fulfilling its responsibilities as a corporate citizen.

Our philosophy is to contribute significant advances in Food

and Health on a global basis and ultimately to create a better life for all.

Business ObjectivesWe aim to be a global corporation, which contributes to the general well-being of all people in the world, through our business domains of food and food-related products, amino acid-based fine chemicals and pharmaceuticals.

Business EthosBy always putting customers first, synergizing our vast pool of creative resources and employing only superior technologies, we offer innovative products and services of the highest standards and quality.

Management PrincipleWe continue to respect all interested parties, including shareholders, customers, local communities, trading partners and employees, and manage operations on the basis of quick and concise decision-making that is fair and open, so realizing an appropriate return of profits to our shareholders and continually increasing our business value.

Social ResponsibilityAs an outstanding and socially aware corporate citizen, we endeavor to contribute to the harmony and progress of society.

Corporate CultureWe strive to maintain a creative, open, spirited, and confident atmosphere in which employees can strive for self-fulfillment and career advancement.

Philosophy

Management Policies

Standards of Business Conduct

Ajinomoto Group Philosophy

Ajinomoto Group Management Policies


In 2000, the Ajinomoto Group established the Ajinomoto Group Principles—Philosophy, Management Policies, Standards of Business Conduct, (AGP) as the key-stone of its consolidated management. AGP states our basic Group philosophy and guidelines toward confi-dently meeting responsibilities as a good corporate citi-zen, while taking the challenges of unlimited possibilities and carving out our future.Since its founding, the Ajinomoto Group has steadfastly cultivated its current strengths by developing distinctive products, establishing innovative production technology, and developing global operations through active explor-ation of new markets. The driving force behind this de-velopment has been our sincere desire to meet the ex-pectations of customers and stakeholders as well as our determination to fulfill responsibilities as a social citizen.These principles are compiled in a booklet and carried by all employees as guidelines for daily activities. In ad-dition, the Business Conduct Committee was launched as a specialized organization to promote thorough com-pliance with AGP. The Committee conducts seminars and discussions at every Group company and operation site. Approximately 500 employees from across the en-tire Group participated these events in FY2002 as a re-sult of the penetration of AGP throughout the Group.

Ajinomoto Group Principles

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Based on our principles, we report on our activities from the

following three perspectives:

We pursue genuine customersatisfaction in principle and in practiceThe motto of the Ajinomoto Group is to pro-vide services and safe, high-quality products from the customer’s point of view. We offer a variety of opportunities and systems for re-ceiving customer feedback and incorporate it into our business activities.

Customer Relations P38-39

We create environments that promote employee self-fulfillmentThe Ajinomoto Group strives to establish bet-ter employee relationships through employ-ment and training workshops. We also en-courage each employee to participate in so-cial activities as a responsible citizen, thereby expanding the scope of our social contribu-tion.

Employee Relations P40-42

We perceive social activities from a global perspectiveThroughout its business operations in a total of 22 countries and regions, the Ajinomoto Group engages in a variety of social activities based on the specific characteristics and needs of each community. In FY2002, we participated in activities related to food, nutri-tion, and health. We also supported educa-tional programs and conducted a number of interactive community events.

Community Relations P43-45

Ajinomoto Group Standards of Business Conduct


Provision of Safe, High-Quality Products and Services1-1 Provision of Safe, High-Quality Products and

Services

Fair and Free Transactions2-1 Fair and Free Competition2-2 Sound Relationships with

Governments and Administrations

2-3 Fair Business with Suppliers and Other Transaction Entities

2-4 Appropriate Business Courtesy

Communication with Society3-1 Timely Collection and Disclosure of Information

Information Management4-1 Information Management

Environmental Protection and Natural Resource & Energy Conservation Activities5-1 Environmental Protection and Natural Resource

& Energy Conservation Activities

Public Service6-1 Public Service

Workable Office Environment7-1 Respect for Human Rights7-2 Creating a Safe and Comfortable Working

Environment7-3 Demonstration of Identity and Creativity

Responsibility to Shareholders and Investors8-1 Proper Disclosure of Information8-2 Prohibition of Insider Trading8-3 Prohibition of Providing Benefits to Particular

Shareholders

Relationship Between Individual Employees and the Company9-1 Relationship Between the Individual

(Family/Relatives) and the Company9-2 Outside Activity

International Commerce10-1 Handling of Intellectual Property Rights10-2 Compliance with Export and Import Control

Laws

P38-39

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Customer Relations

Social Activities

The approximately 60,000 customer inquiries and requests received an-nually are reflected in product and service improvementsDedicated to quick, accurate and caring ser-vices, our Customer Service Center fields approximately 60,000 customer inquiries and requests every year. Customer feed-back is treated seriously and directed to re-lated business departments, where we can

learn to better meet customers’ needs and determine the best means for incorporating these recommendations into future products and services. The Center plays an important role in dis-cerning social trends by analyzing what out customers say about the environment, safe-ty, and quality assurance, and it supports our individual business departments in ad-dressing these concerns.

By category, 18% of all inquiries received by the Center concerned raw materials and manufacturing processes, while 11% were about safety, influenced by the incidence of agricultural chemical residues on Chinese vegetables and the issue of food flavors not approved in Japan.While inquiries about the environment repre-sented only 1% of all feedback, we received 599 such inquiries, a 43% increase from the previous year, reflecting growing environ-mental concerns among customers. There were also many inquiries about methods of separate disposal of waste and opinions on resource savings.

A Consumer Service Center that Responds to the Voices of Our Customers

Customer Service Center

Thorough compliance with the Group’s voluntary regulations by all employeesThe Ajinomoto Group stipulates its informa-tion management regulations in the Ajino-moto Group Principles (AGP) and the Ajino-moto Group Information System Security Policy. These regulations and procedures are accessible from the corporate Intranet.We set up a management organization to ensure thorough compliance with the regu-

lations, along with appointment of staff in each department exclusively focused on compliance. In addition, the Ajinomoto Group issued the Guidebook for Company Information Management, and offers training sessions for the appointed staff and both domestic and overseas Group employees. The Ajinomoto Group endeavors to improve the quality of information management that encompasses contract-based companies.

Information Management

What Our Customers Said During FY2002

We reduced the package size of four Knorr® Cup Soup vegetable potage seriesCustomers complained that the individual packaging was too big for four varieties of our Knorr® Cup Soup vegetable potage, not only wasting resources but also taking up too much space in shopping bags. In re-sponse, we began reducing the size of the boxes for four varieties in August 2003.

We released packet-size portions of Knorr® Soup PastaPreviously Knorr® Soup Pasta was only available in disposable cups. In response to customer feedback that the cups represen-ted a waste of resources and that the prod-uct should also be offered in packets, we launched three flavors of soup pasta in packets in August 2003.

Example of Product Development and Improvement Based on Customer Feedback

What Our Customers Said During FY2002

Nutritional constituents 9% Quality and price 11%

“Best before” date 19%

Safety 11%

Raw materials andmanufacturing processes 18%

Use and preservationmethods 9%

Flavor and taste 8%

Other 7%

Environment 1%

Retailers 2%

Labels 2%

Containers and packaging 3%

Guidebook for CompanyInformation Management

BeforeImprovement

AfterImprovement

Knorr® Cup Soup

Knorr® Soup Pasta(in a cup)

Knorr® Soup Pasta(containing 2 packets)


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Promoting interaction with customers through corporate Web siteThe Ajinomoto Group’s Web site offers sev-eral sections devoted to customer commu-nication and the constant improvement in the quality of products and services. For ex-ample, “Customer’s Square” facilitates inter-actions with customers, “Amino Acids Ency-clopedia” provides information on amino acids, and “Recipes Encyclopedia” offers easy-to-prepare recipes for nutritious meals. Club Ajinomoto is a members-only Web site, where members can collect points that can be exchanged for the purchase of Ajinomoto products and receive online magazines.

Communication with Customers

Ensuring product safety and security through the Group’s quality assurance policyThe Ajinomoto Group Management policies state that by always putting customers first, synergizing our vast pool of creative resour-ces, and employing only superior technolo-gies, we offer innovative products and servi-ces of the highest standards and quality. Based on this philosophy, the Ajinomoto Group established the Ajinomoto Group Quality Policies, and conducts rigorous quality control utilizing the Ajinomoto Sys-tem of Quality Assurance (ASQUA), our unique quality assurance system. ASQUA comprises requirements that meet ISO 9000 series*, and HACCP**, as well as the Com-pany’s own requirements. Top management at each Ajinomoto Group company not only bears direct responsibility for maintaining product quality, but also takes responsibility for quality control within their supply chain.

Quality Assurance

Amino Acids Encyclopedia

Customer’s Square

Recipes Encyclopedia

URL http://www.ajinomoto.co.jp/ (Top page in Japanese)URL

What is the ISO 9000 series?

What is HACCP?

ISO 9000 is an international standard for quality manage-ment systems, stipulating standards for suppliers’ quality control and assurance. It was established by the ISO (In-ternational Organization for Standardization) in 1987 with the aim of facilitating international trade, and as a quality assurance model shared worldwide.

HACCP is an acronym for Hazard Analysis Critical Con-trol Point and is a hygiene control method for food safety.

**

*

Ajinomoto Group Quality Policies

Quality Assurance Structure

Philosophy

Policies We pay full attention to the requests of our customers, and provide products and services meeting with their satisfaction.We actively provide appropriate information to our customers and continue to improve our trustworthiness.We make no compromises with regard to safety, conducting surveys and research as thoroughly as possible, faithfully complying with ap-plicable laws and regulations, and always delivering products and services of uniform quality.We assure quality through the Ajinomoto System of Quality Assur-ance (ASQUA*), based on the concepts outlined in the international ISO standards.Under the leadership of our management, each one of our compa-ny’s employees makes the greatest effort to provide safe and high-quality products and services through work at all levels, from resear-ch and development to production, distribution, sales and services.

We contribute to a better life for all throughout the world by providing safe and high-quality products and services.

1.

2.

3.

4.

5.

What is ASQUA, Ajinomoto System of Quality Assurance?The key concept of ASQUA is centered around responding to the requests, propos-als and inquiries of our customers by providing safety, reliability and satisfaction. Customers are now able to send their claims, proposals and inquiries to the Con-sumer Communication Center. Together with such advice being reflected in product improvements, including changes in product labels or packages, Ajinomoto pro-vides feedback to customers through proactive information disclosure.

Customers

Requests, Proposals, InquiriesSafety, Reliability, Satisfaction

Ajinomoto

Quality Assurance Committee

Company

PolicyPlan

Check

DoAction

Correctiveaction

Respective companies (policies and product rules)

Company-wide policies, regulations (top management)

Quality AuditAuditing Implementation

LaboratoriesPlants OthersBusinessoffices

Salesbranches

Quality Audit

*ASQUA: Ajinomoto System of Quality Assurance


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Employee Relations

Social Activities

We offer equal employment opportun-ities and regularly hire disabled work-ersAs of July 1, 2003, the total number of work-ers of Ajinomoto Co., Inc. was 4,331, of which 978 are women (22.6% of all work-ers), including 28 cadres (management-level employees; 2.2% of all cadres).Of the 4,982 employees (including directly employed part-time workers) as of July 1, 2002, 87, or 1.75% were disabled workers. As of July 1, 2003, there were 81 disabled workers out of a total of 4,546 employees (including full-time and part-time workers), a the ratio of 1.78%.

Employment of Women and Disabled Workers

We have set up a variety of training pro-grams based on clearly identified hu-man resource requirements To survive amid severe global competition, the Ajinomoto Group established the cultiva-tion of world-class Personnel as one of our management strategies. We are committed to the training of business professionals in all fields.Business professionals must develop core capabilities, such as independence, critical judgment, and interpersonal skills, while also

acquiring business-specific abilities, such as knowledge, technique, and skills. The Ajino-moto Group appreciates the value of con-tinuing to strengthen our human resources, including an emphasis on originality, a glo-bal perspective, and willingness to work co-operatively. In line with this understanding of cultivating human resources, the Ajinomoto Group has established a variety of training programs and strongly encourages the active partici-pation of employees.

Training World-Class Personnel

Career Development Guide 2003

5 Fundamental Aspects of Career Development Guide 2003

Offering training programs for em-ployees to understand and exper-ience the values required for Aji-nomoto Group members and to apply these values as a reference for future actions

Further expanding group training sessions to cultivate business professionals

Starting a new leadership training program targeting employees who desire to join cadres

Introducing a line-management improvement program for cadres with junior staff

Operating each program more ef-ficiently through the synergistic action of the Corporate Human Resources Department, operation sites, and each internal company

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The Model

Concept of Required Human ResourcesHuman resources possessing fundamental values and continually supplementing their core ca-pabilities and business skills, while enhancing their self-development and constantly pursuing new levels of achievement

Business skills: Knowledge, technique, and skills required in businessCore capabilities: Abilities required to utilize business skills

Business skills

Technique and skillsKnowledge

Core capabilities

Human resources valuesEmphasis on originality

Global perspectiveWillingness to work cooperatively

Interpersonal skillsCritical judgment Independence Action

Progress in the employment of women and disabled workers (Ajinomoto Co., Inc.)

Figures are as of July 1st of each year.

% %Number ofemployees

Number ofemployees %

Number ofemployees

Ratio of Female Workersto All Workers

0

1,000

2,000

3,000

4,000

5,000

6,000

0

5

10

15

20

25

30

FY2001 FY2002 FY2003

1,059 1,010 978

5,0074,747 4,331

21.2 21.422.6

Ratio of Female Cadresto All Cadres

0

5

4

3

2

1

0

300

600

900

1,200

1,500

FY2001 FY2002 FY2003

19

1,284

22

1,287

28

1,282

1.5 1.7

2.2

Ratio of Disabled Employees to All Employees(Including full-time and part-time workers)

0

5

4

3

2

1

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2001 FY2002 FY2003

5,2684,982

4,546

83 87 81

1.58 1.75 1.78


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C.E.Online keeps the entire Group up to date with top management policies, strategies, and basic initiativesIn line with the general trend toward strengthened group management across in-dustries, the Ajinomoto Group is advancing programs toward strengthening Group com-petitiveness, including splitting corporations or introducing internal company systems. In view of these changing business environ-ments, we launched the Top Management Web site “C.E.Online” in January 2002, to directly inform employees of policies, strat-

egies, and basic initiatives of top management. Once or twice a month, we update Web site articles, which include comments shared by the President and Vice President, with indi-viduals from either in-house or outside the Company, as well as their views on the lat-est topics, along with recent newspaper arti-cles. The network is programmed to allow employees to exchange views with co-work-ers using the Web. With about 8,000 hits ev-ery month, the system has become well es-tablished among employees of the Ajinomo-to Group.

Top Management Web site, “C.E.Online”

Inaugurating the Group management system in April 2002The Ajinomoto Group holds annual disaster prevention meetings focused on safety with the CEOs of Corporate, internal Companies, and spin-off companies. The meeting re-ports on performance related to fire safety and occupational safety and health of the entire Group, and formulates an activity plan for the next year.Based on Group management discussions, we implemented a Group emergency drill for possible Tokai earthquakes, in FY2003. We also created a site on the corporate Intranet providing information on actual disasters to raise awareness of disaster safety among employees.In addition, for more than 30 years, the Aji-nomoto Group has been making steady pro-gress in occupational safety and health, in-cluding the collection of data and analysis of minor incidents and promotion of disaster prediction training.As a result of these efforts, the Kyushu Plant of Ajinomoto Co., Inc. received a Safety Pro-motion Award from the Prime Minister of Ja-pan in July 2002, and maintains a no-acci-dent record.

Occupational Safety and Health

C.E.Online

Group Disaster Preparation Web site

The Ajinomoto Group’s Objectives for Disaster Prevention, Safety, and Health for FY2003

Basic philosophyAjinomoto Co., Inc. and its Group companies maintain a fundamental respect for human life and recognize disaster prevention, safety and health as essential components of corporate activities.

PoliciesAjinomoto Co., Inc. and its Group companies:1. relentlessly identify and evaluate potential risks and act to

diminish and/or eliminate risks in order to prevent disasters and accidents.

2. take initiative in continually improving safety and health activities by thoroughly complying with regulations and encouraging mutual efforts to do so.

3. strengthen the corporate system and facilitate quick responsiveness to minimize damage in the event of an emergency.

4. proactively provide support for each employee to participate in activities related to bettering their own health as well as improving the safety of work environments.

ObjectiveNo serious occupational accidents*.

Specific Measures1. Establishing the disaster prevention control system of the

Ajinomoto Group.2. Improving the occupational safety level by strengthening Group

synergy;• Sharing information on past accidents and near miss accidents

and promoting prevention in each work environment;• Conducting safety inspections.

3. Conducting training programs to practice responses to emergency situations;

• Implementing comprehensive disaster prevention training programs for possible Tokai earthquakes;

• Conducting various disaster prevention training drills on a daily basis.

Serious occupational accidents within the Ajinomoto Group are defined as “fatal accidents and accidents that lead to leave from service (for 4 days or more), and/or accidents that inflict such injuries as amputated fingers or arms (Grade 14 and higher according to the standard stipulated by the Ministry of Health, Labor, and Welfare).”

*

Accidents in 2002 (January to December)

In Japan

Overseas

14

183

0.65

7.81

0.04

0.06

79

115

3.66

4.91

***

The number of deaths and injuries ÷ total actual working time 1,000,000The number of lost work days ÷ total actual working time 1,000

Accidents resulting in leave from service Accidents not requiring leave from service

Number Frequency* Severity rate** Number Frequency*


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Social Activities

Employee Volunteerism

The Ajinomoto Group conducts campaigns to provide opportunities for employees and their families to voluntarily interact with the community and recognize their social roles and responsibilities. The Ajinomoto Group Citizenship Day campaign encourages em-ployees and their families to participate in social activities for one day during the three-month period between June and August.In FY2003, Group companies, operation sites, and employees and their families in Japan and overseas, engaged in innovative social activities in line with the campaign

philosophy, such as neighborhood clean-ups, fund-raising activities, visiting chil-dren’s institutions, and holding computer classes. Details on these activities are com-piled in reports and shared throughout the Ajinomoto Group.We will continue these activities in the future and encourage all employees of the Ajino-moto Group across the world to engage with society as responsible members of communities and participate in more com-munity-based activities.

Ajinomoto Group Citizenship Day

In 2001, we established the Social Volun-teerism Award to recognize employees who have been participating in social activities as exemplary corporate citizens.The Ajinomoto Social Activity Promotion Committee annually nominates award reci-pients after careful deliberation. The reci-pients are given commemorative gifts and their names are announced in the Group newsletter. In FY2003, three domestic and

two overseas employees received the award.

Society Volunteerism Award Commendation SystemA paid leave system is available to employ-ees who voluntarily engage in socially re-sponsible activities. Those who apply for leaves under this system are eligible for 8 paid leaves per year for social activity pur-poses.Since its implementation in FY1999, 36 em-ployees (for a cumulative total of 136 days) have taken paid leaves to participate in vol-unteer activities.

Paid Leave System for Volunteer Activities

PR Poster

Cleaning streets near the plant (Ajinomoto Co., Inc. Tokai Plant)

Cleaning the beach (Shimizu Pharmaceutical Co., Ltd.)

Cleaning the Tama River bed (Knorr Service Co., Ltd.)

Interacting with children at a children’s facility (Ajinomoto (Malaysia) Berhad)

Holding computer classes for beginners (Ajinomoto System Techno Corporation)

Participating in Foster Student Fundraising campaign with family members (Ajinomoto Frozen Foods Co., Inc.)

“Send Picture Books to Laos” campaign volunteer project (Ajinomoto Co., Inc.)

Volunteer appreciation letter and gift

Awardees’ Activities

• Fixing toys and consulting with children at a toy hospital• Coaching sports teams (ski, baseball, and volleyball)• Refereeing for adult baseball games and

coaching a little league baseball team• Providing first aid instruction at the Red Cross• Participating in local community revitalization• Supporting a music concert at a memorial

for the Great Hanshin Earthquake• A member of Bike Rescue Society-Japan,

aiding in rescue activities after disasters• A member of Youth Rehabilitation and Probation

Association, engaging in probation activities• A senior member of Japan Tennis Associa-

tion, toward popularizing tennis

• Working as a natural park supervisor for the Ministry of the Environment

• Participating in activities of the disaster pre-vention department of a local association

• Supporting children's institutions• Volunteering for Boy Scouts• Involved in Preserving Wall Paintings of Public Baths• Working as a staff worker at a social welfare

organization• Serving as a volunteer firefighter• Working as staff at a local environmental project• Participating in public relations activities re-

garding social and cultural services in the lo-cal community as a radio broadcaster

Volunteer Activities

• Providing instruction in the methods for constructing emergency medical radio networks

• Working as a welfare commissioner for a children's council

• Assisting Boy Scout leaders• Supporting overseas orphanages • Overseas tree planting • Registered and evaluated as a pro-spective bone marrow donor

• Providing instruction at workshops for ele-mentary school children


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Community Relations

Socially responsible activities across the globe focusing on food, nutrition, and health The Ajinomoto Group supports programs addressing a variety of issues related to food, nutrition, and health, in order to im-prove the quality of life.Following review by Ajinomoto International Cooperation Network for Nutrition and Health (AIN*), these support activities are

implemented in cooperation with NPOs and NGOs in each community area, governmen-tal organizations, and educational and re-search institutions.

Global Program

Ajinomoto International Cooperation Network for Nutrition and HealthAjinomoto Group’s organization, founded in 1999, to promote international cooperation with external ex-perts

*

Main Activities

Fostering the development of experts and leaders in food, nutrition, and health

D e v e l o p i n g and providing e d u c a t i o n a l materials on food, nutrition, and health

Supporting re-search and development of technolo-gies related to food, nutrition, and health

Supporting humanresource trainingand information

exchange activities

Supporting thedevelopment and

provision ofeducational materials

Supportingtechnology

research anddevelopment

Session for providing nutritious meals formalnourished children

Measuring children’sweight

Nutrition education for parents Distributing iron supplement tablets to children

The Philippines Philippines Integration Project (Photo: JOICFP) Philippines Integration Project (Photo: JOICFP)

Health worker providing home-based counseling on family nutrition and health

Health education using hand puppetsChildren weeding around fruit saplings Training in growing vegetables


Indonesia Primary School-based Nutrition Improvement Program (Photo: YKB)

Cambodia Nutrition Improvement Program through Household Gardening (Photo: JVC) Peru Nutrition Improvement Project for Chronically Malnourished Children (Photo: PRISMA)

FocusProject Name （Partner） Country

The Philippines

Indonesia

Cambodia

Peru

Philippines Integrated Project—Improving Reproductive Health and Nutrition(Japanese Organization for International Cooperation in Family Planning (JOICFP))

Philippines Core Project—Citizen Initiative for Improving Reproductive Health and Nutrition(Japanese Organization for International Cooperation in Family Planning (JOICFP))

Nutrition Improvement Project (Lingap Para as Kalusugan ng Sambayanan (LIKAS), a local NGO)

Research and Development for a Community-based Nutrition Education Model(Food and Nutrition Research Institute (FNRI),a local governmental organization)

Primary School-based Nutrition Improvement Program(Yayasan Kusuma Buana (YKB), a local NGO))

Life Environment Improvement Project(Organization for Industrial, Spiritual and Cultural Advancement (OISCA))

Community-based Nutrition Improvement Program(The Indonesian Planned Parenthood Association (IPPA), a local NGO)

Nutrition Improvement Program through Household Gardening(Japan International Volunteer Center, an NPO)

Nutrition Improvement Project through Fortification of Selected Foods with Micronutrients(Universidad Peruana Cayetano Heredia (UPCH), a local university)

Nutrition Improvement Project for Chronically Malnourished Children(Association Benefica PRISMA (PRISMA), a local NPO)

Training volunteer health workers and developing educational materials for the improvement of re-productive health* and the state of nutrition.* “Reproductive health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity, in all matters relating to the reproductive system and to its functions and processes.” (Interna-tional Conference on Population and Development, “Program of Action,” 1994)

This is the second phase of the Philippines Integrated Project emphasizing the enhancement of local government capability, technology for the improvement of reproductive health and for nutrition ser-vice providers, and expansion of subject areas.

Provides a systemized program for building child care centers and providing meals for malnourished children.

Develops models for nutrition education programs, investigates needs, and reviews nutrition educa-tion strategies and materials.

Focuses on primary schools in the Jakarta area. Activities include developing educational materials, introducing campus-based stores, distributing iron supplement tablets, and holding workshops for parents.

Supports the construction of a local development women’s center for better food and hygiene con-ditions, and trains instructors in cooking and hygiene.

Offers community-based nutrition improvement programs in West Sumatra. Activities include con-ducting and evaluating workshops for program planning.

Helps to expand household gardening that produces crop anytime of the year. Activities include training sessions on cultivating vegetables and fruit for better nutrition in rural areas.

Focuses on the highland and jungle regions to popularize the addition of vitamin A and iron as nutri-tional supplements in locally produced foods like palm oil and banana powder.

Targets chronically malnourished children under 2 years old. Activities include conducting training sessions for health workers and providing information for mothers.

Main Support Activities

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Social Activities

Socially responsible activities by each company and plant of the Ajinomoto Group based on community needsThe Ajinomoto Group participates in a vari-ety of social activities to contribute to meet-ing the needs of local communities. Across the world, we conduct unique activities in each region, primarily focusing on food and health, education, welfare, community infor-mation exchanges, and the environment.

Local Programs

Providing box lunches to children(Ajinomoto (Malaysia) Berhad)

Donating goods to the Nutrition Month celebration of the National Nutrition Council(Ajinomoto Philippines Corporation)

Products offered on the National & International Meals on Wheels Day(Ajinomoto Co., Inc.)

OtherSupporting the “Walking for Your Health” charity event at the Hong Kong Early Childhood Education Conference (Ajinomoto Co., (Hong Kong) Ltd.)

Food and Health

OtherSchool-to-work training in a corporate setting for junior and senior high school students and teachers (Ajinomoto Co., Inc. Headquarters and Kyushu Plant; Ajinomoto Packaging Inc. Kansai Plant; Nippon Protein Co., Ltd. Yokohama Plant and Ashikaga Plant; and Ajinomoto Frozen Foods

Education

Welfare

Community Information Exchange

Organizing plant tours for consumers, students, retailers, and industrial users (Ajinomoto Co., Inc.; Knorr Food Co., Ltd.; and Ajinomoto Frozen Foods Co., Inc.)

“Let’s learn about nursing care for those in wheelchairs, and volunteer efforts” (Ajinomoto Co., Inc.)

The “Discover the World through Food” program to advance international under-standing(Ajinomoto Co., Inc.)

“Fureai Festa” local communication event at a plant, with nearby communities and neighbors in attendance(Ajinomoto Co., Inc. Kyusyu Plant Site)

Blood donation project (Ajinomoto Co., (Thailand) Ltd.)

Donating goods at the Hong Kong Early Childhood Education Conference events (Ajinomoto Co., (Hong Kong) Ltd.)

Cooking demonstration for local resi-dents(Ajinomoto Philippines Corporation)

Supporting flood victims in Jakarta (P.T. Ajinomoto Indonesia)

Constructing a new building for Oquendo Elementary School (Ajinomoto del Perú S.A.)

Donations to people living in poverty (Ajinomoto Vietnam Co., Ltd.)


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The Thai Ajinomoto Foundation was estab-lished in 1976 with financial support from Ajinomoto Co., (Thailand) Ltd., and has the longest history of activities of any foundation in the Ajinomoto Group.[Main Projects]

Education support• School building projects• School meal programs• Scholarship grants (elementary school to

university)• Donation of glasses for the visually

impairedSocial welfare

• Donation to charity (orphans, people withdisabilities, and the aged)

• Support for flood victims

Social Activities of Our Foundations

OtherBriefing sessions on the environment with local residents (Ajinomoto Co., Inc. Kyushu Plant Site; and Ajinomoto Pharma Co., Ltd. Saitama Plant)

Environment

Constructing a promenade to protect a bird sanctuary located on the plant site(Ajinomoto Co., Inc.)

Employees instruct children in an environ-ment project (S.A. OmniChem N.V.)

AJINOMOTO FOUNDATION FOR DIETARY CULUTRE(Japan)

YAYASAN AJI DHARMA BHAKTI (Indonesia)

AJINOMOTO FOUNDATION (Thailand)

The foundation was established in 1999 supported by Ajinomoto Interamericana Indústria e Comércio Ltda. Its activities in-clude community-based educational and social welfare activities.[Main Projects]

Education support• Improvement of education facilities

(particularly at food processing facilities)Social welfare

• Improvement of local facilities, such as community centers and hospitals

• Volunteer activities by employees

Founded in 2003, this is our newest founda-tion, focusing on research support for nutri-tion, food, and health education.[Main Projects]

Education and research support• Research and distribution of findings,

including publications on food, health, and educationSocial Welfare

FUNDACIÓN AJINOMOTO PARA EL DESARROLLO DE LA COMUNIDAD(Peru)

INSTITUTO ASSISTENCIAL AJINOMOTO(Brazil)

Public forum symposium

Scholarship award ceremony

Supporting school building construction (Opening ceremony)

Publication of “Food Nutrition Science”

Renovated college classrooms


With financial support from PT Ajinomoto In-donesia, this Indonesian foundation was es-tablished in 1979. Its unique activities in-clude scholarship grants for graduate school students in master’s degree programs.[Main Projects] Educational support• Scholarship grants for students in master’s

degree programs• Nutrition education programs

Five foundations across the world promote unique, socially responsible activitiesThe Ajinomoto Group also focuses on activi-ties through our foundations to contribute to society in the various countries and regions in which we do business. Currently, our foundations are actively pro-viding such assistance in five countries: Ja-pan, Thailand, Indonesia, Brazil, and Peru. In line with their specific objectives, the foun-dations promote community-based activities thoroughly grounded in the local culture, lifestyles, and needs of each country.

The foundation was established in 1989, as one of the projects marking the eightieth an-niversary of Ajinomoto Co., Inc., to provide support for dietary culture study and the broad distribution of findings.[Main Projects]• Operating a public library specifically for dietary information• Organizing the Dietary Culture Forum• Organizing dietary symposiums and

lectures• Financially supporting dietary culture

research• Publishing

References

Reference to GuidelinesIn the preparation of this report, reference was made to the Environmental Reporting Guidelines (FY2000 Version) published by the Ministry of the Environment, and the GRI Guidelines. Corresponding sections are as follows.

1. Basic Headings1) CEO’s statement2) Foundation of reporting (Reporting organization, time period,

fields, division in charge of publication, and contacts)3) Summary of the nature of the business

2. Summary of Policies, Targets, and Achievements in Environmental Conservation1) Business policies and posture regarding environmental conservation2) Summary of policies, targets, and achievements in environmental conservation3) Summary of environmental accounting information

3. State of Environmental Management1) State of environmental management system2) State of research and development of technologies for

environmental conservation and environment-conscious products/services (Design for the Environment (DfE))

3) State of the disclosure of environmental information and environmental communication

4) State of compliance with environmental regulations5) State of social contribution related to the environment

4. State of Activities for Reduction of Environmental Burden1) A complete picture of environmental burdens

(Perception and valuation of whole life cycle of operation)2) State of environmental burdens from material/

energy input, and mitigation measures3) State of environmental burdens at the upstream (purchase of

products/services), and mitigation measures4) State of environmental burden from output of refuse,

and mitigation measures1) Emissions to Air2) Emissions to Water and Soil3) Emissions of Wastes

5) State of environmental burdens at the downstream (providing products/services), and mitigation measures

6) State of environmental burdens from transportation, and mitigation measures

7) State of environmental burdens from cumulative soil contamination, land utilization and other environmental risks, and mitigation measures

GRI Guidelines (Social indicators): Only required indicators are listed

Labor Practices and Decent Work

Human Rights

Society

Product Liability

P4-5

P2-3,46,49P10-13

P4-5,36-37P6-9P22

P16-19

P20-21,28-30

P2,18-19,27,42,44-45P27

P42,44-45

P8-11

P8-11,24-27

P10-11

P8-11,24-27

P11,28-29

P30-31

P26-27

P36-37,40P36-37

P36-37,41P19,36-37,40

P36-37,40

P36-37P36-37,40

P36-37,43-45P36-37P36-37

P36-39P36-39P36-38

The Ajinomoto Group in this report refers to Ajinomoto Co., Inc. and those parts of its domestic and overseas consoli-dated subsidiaries that are subject to the Group’s environmental management. Those companies subject to the Group’s environmental management do not fully coincide with those of the Ajinomoto Group in terms of the consoli-dated accounting system (Ajinomoto Co., Inc., its consolidated subsidiaries, and affiliated companies), but 79% of those companies, encompassing all major business activities, are covered. The scope for the accumulation of track-record information, such as data on environmental burdens, covers major production-related and distribution-related operation sites of the entire Ajinomoto Co., Inc., as well as domestic and overseas consolidated subsidiaries.The 2003 report also covers, although only partially, articles related to companies beyond the scope of the Group’s environmental management.

Scope of the Ajinomoto Group Report

Environmental Reporting Guidelines (FY2000 Version) published by the Ministry of the Environment

EmploymentLabor/management relationsHealth and safetyTraining and educationDiversity and opportunity

Strategy and managementNon-discriminationFreedom of association and collective bargainingChild laborForced and compulsory labor

CommunityBribery and corruptionPolitical contributions

Customer hygiene and safetyProducts and servicesRespect for privacy

Companies Subject to Group Environmental Management


[Ajinomoto Co., Inc.]Corporate, Seasonings & Food Products Company, Global Foods & Amino Acids Company, Pharmaceutical Company[Consolidated subsidiaries]Consolidated subsidiaries pertaining to CorporateAjinomoto Engineering Co., Ltd.; Ajinomoto Logistics Corporation; and its 8 logistics subsidiary companies, etc.Consolidated subsidiaries pertaining to Seasonings & Food Products CompanyKnorr Foods Co., Ltd., and its 5 subsidiaries: Ajinomoto Packaging Inc.; Delica Ace Co., Ltd., and its subsidiary manufacturing company; etc.Consolidated subsidiaries pertaining to Global Foods & Amino Acids CompanyAjinomoto Co., (Thailand) Ltd. and its 3 subsidiaries; Ajinomoto (Malaysia) Berhad; Ajino-moto (Singapore) Pte. Ltd.; PT Ajinomoto Indonesia; PT Ajinex International; Ajinomoto Philippines Corporation; Ajinomoto Vietnam Co., Ltd.; Lianhua Ajinomoto Co., Ltd.;

Chuanhua Ajinomoto Co., Ltd.; Ajinomoto Eurolysine S.A.S.; Ajinomoto BioItalia S.p.A.; Ajinomoto U.S.A., Inc.; Ajinomoto Frozen Foods U.S.A., Inc.; Ajinomoto Heartland LLC; Ajinomoto Interamericana Industria e Comercio Ltda.; Ajinomoto Biolatina Industria e Comercio Ltda.; Ajinomoto del Peru S.A.; Ajinomoto Lianhua Amino Acid Co., Ltd.; Shang-hai Ajinomoto Amino Acid Co., Ltd.; Shanghai House Ajinomoto Foods Co., Ltd.; Ajinomo-to Euro-Aspartame S.A.S.; s.a.Omni Chem n.v.; Shin-Nippon Commerce, Inc.; Ajinomoto Takara Corporation, Inc.; Nippon Protein Co., Ltd.; Ajinomoto Fine-Techno Co., Inc.; etc.Consolidated subsidiaries pertaining to Pharmaceutical CompanyAjinomoto Pharma Co., Ltd.; Shimizu Pharmaceutical Co., Ltd.; and its 3 overseas subsidiariesFrozen Foods Spin-off CompanyAjinomoto Frozen Foods Co., Inc., and its three overseas subsidiary manufacturing companiesBakery Spin-off CompanyAJINOMOTO BAKERY PRODUT CO., LTD. and its subsidiary manufacturing company

•Discovered the source of umami of kelp, monosodium glutamate.•Production of AJI-NO-MOTO from gluten flour by an extraction method.•Started general sale of AJI-NO-MOTO.•Founded S. Suzuki and Co., Ltd. (Anniversary of founding: June 17)•Fishermen’s cooperatives in Kawasaki and Haneda mount demonstrations by ship on Tama

River, calling for installation of a wastewater treatment unit by S. Suzuki and Co., Ltd.•Started production of AJI-NO-MOTO from soy protein by an extraction method.•Diversified into Edible Oil Business.•Started production of caustic soda by electrolysis process with the mercury method (Kawasaki Plant).•Renamed Ajinomoto Co., Inc.•Compound fertilizer ESUSAN approved.

•Started production of AJI-NO-MOTO by a fermentation method.•Diversified into Processed Foods Business.

•Environmental Preservation Committee jointly established by Central Research Laboratories and Kawasaki Plant.

•Completed activated sludge processing equipment and exhaust gas desul-furization facility (Kawasaki Plant).

•Diversified into Frozen Foods Business.

•Diversified into Coffee Business.•Completed change in electrolysis process (from mercury method to

diaphragm method) and waste incinerator completed (Kawasaki Plant).•Launched energy conservation project “KEEP.”

•Started production of fertilizer from by-product liquid (Kyushu Plant).•Diversified into Beverage Business.•Diversified into Dairy Products Business and Pharmaceuticals Business.•Diversified into Sweetener Business•Fined for a breach of Water Pollution Control Law (Kyushu Plant).•Change of boiler fuel from heavy oil to LNG (Kawasaki Plant).

•Launched Environmental Meeting chaired by Vice President (Headquarters).

•Introduced Eco-Index System for Containers and Packaging.

•Established Environment Department.

•Submitted Voluntary Environmental Action Plan requested by MITI.•Issued Eco-Guidelines for Containers and Packaging.

•Discontinued production of caustic soda by electrolysis process (Kawasaki Plant).

•Basic Environmental Policy and Environmental Regulations instituted.

•Acquired ISO 14001 Certification for the first time by Ajinomoto Co., Inc. (Kyushu Plant).

•All dumping of fermentation by-product liquid into the ocean terminated in Japan.•Started Environmental Audit of Ajinomoto Group.•Published “Ajinomoto Group Environmental Report 2000” (Japanese edition).•Established Resource and Environment Department, International Production & Technology Center.•Acquired ISO 14001 Certification for the first time by a domestic subsidiary

(Ajinomoto Frozen Foods Co., Inc., Chubu Plant).•ISO 14001 Certification acquired for the first time by an overseas subsidiary

(Malaysia Packaging Industry Berhad).•Started Environmental Assessment for Large-size Investments by Headquarters management.•Completed ISO 14001 Certification acquisition by all operation sites of Ajinomoto Co., Inc.•Introduced internal company system.•Organizational change in “Environmental Committee” in accordance with the

new internal company system.•Announced data on soil pollution to the public.•ISO 14001 certification acquired by all domestic organizations of Ajinomoto Co., Inc.•Established a voluntary environmental standard, Group Global Minimum.•Changed the formal Japanese name of the Environment Department to better

reflect its commitment to environment-conscious management, although its English name remains same.

•Started activities for Ajinomoto Group Zero Emissions.

•Pollution in Tama River becomes an object of public concern.

•Damage from mineral pollution along River Watarase near Ashio Copper Mine reported.

•Minamata Disease in Kumamoto Prefecture constituted a public problem.•Factory Wastewater Regulations Law and Water Quality Preservation Law enacted.•“Foul-smelling fish” in Ise Bay drew public attention.•Smoke Exhaust Regulations Law enacted.•Public Nuisance Countermeasures Law enacted.•Fourteen laws concerning pollution enacted.

•Environment Agency established.

•A ban against production and use of PCB announced by MITI.•“The Limits to Growth” released by The Club of Rome. •The first United Nations Conference on the Human Environment held.•Judgment of Minamata Disease Case delivered (in favor of plaintiffs).

•Pollution by hexavalent chromium becomes an object of public concern.•London Dumping Convention made effective.

•The first Basic Plan for Reduction of Areawide Total Pollutant Load formulated.

•Vienna Convention for the Protection of the Ozone Layer adopted.•Resolutions for “Sustainable Development” approved by the United Nations.•The Montreal Protocol on Substances that Deplete the Ozone Layer adopted.•G7 Summit called for earlier and global adoption of policies based on

“Sustainable Development.”•Basel Convention on the Control of Transboundary Movements of Hazardous

Wastes and their Disposal adopted.•Revision of Water Pollution Control Law.•The basic policy of the third COD Areawide Total Pollutant Load Control formulated.•Global Environment Charter by Japan Federation of Economic Organizations

(Keidanren) announced•ICC Business Charter for Sustainable Development announced by

International Chamber of Commerce adopted.•Law for the Promotion of Utilization of Recyclable Resources enacted.•Earth Summit (Brazil) held, Rio Declaration and Agenda 21 adopted.•Formulation of “Earth-friendly Voluntary Plan” requested by MITI.•The Basic Environment Law enacted (Public Nuisance Countermeasures Law abolished).•Guideline on Corporate Activities Amiable to the Environment announced by

the Environment Agency.•Basic Environment Plan by the Environment Agency resolved.•Revision of Environmental Quality Standards for Soil Pollution.•U.N. Framework Convention on Climate Change came into force.•Container and Packaging Recycling Law enacted.•Environment Voluntary Action Plan announced by Keidanren.•Obligation of recycling, part of Container and Packaging Recycling Law came

into operation.•Third Conference of Parties to the United Nations Convention on Climate

Change (COP3) Kyoto Protocol approved.•Law Concerning the Promotion of Measures to Cope with Global Warming enacted.•Household Electric Appliance Recycling Law enacted.•PRTR Law enacted.•Law Concerning Special Measures against Dioxins enacted.•Container and Packaging Recycling Law came into force.•Basic Law for Establishing the Recycling-based Society enacted.•Food Recycling Law enacted.•COP6 failed to adopt a resolution and was adjourned.

•COP6 reopened. Implementation rules of Kyoto Protocol agreed.

•Kyoto Protocol ratified by Japan and China.•Johannesburg Summit (World Summit on Sustainable Development) held.

•Soil Contamination Control Law enacted•Waste Management and Public Cleansing Law amended such as law

prohibiting attempt to illegally dispose of wastes.•Countermeasure Against Vehicle Pollution enacted for diesel trucks in the

Tokyo metropolitan area.

A History of Environmental ActivitiesAjinomoto Co., Inc. and Ajinomoto Group Society

1908

190919171932

19341935193819461954195619581960196219671970

1971

1972

19731974

1975

1977197919801982

19851987

1989

1990

1991

1992

1993

1994

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1997

1998

1999

2000

2001

2002

2003


References

Glossary

CFCs and CFC substitutes Various chlorofluorocarbons (CFCs), formerly used for a wide range of equipment, such as car air conditioners and the like, were found to re-act with ultraviolet rays from the sun. This led to a depletion of the ozone layer, which is responsible for absorbing most of the toxic ultra-violet rays in the atmosphere. Five CFCs with strong ozone-depleting impact were specifically designated for regulation of their production and usage. At present, CFC substitutes that have comparatively less ozone-depleting potential are used instead of CFCs, although they are also regulated.

DioxinsChlorinated organic compounds as defined by the Law Concerning Special Measures against Dioxins, promulgated in July 1999. Coplanar polychlorinated biphenyl (Coplanar PCB) is well known. Dioxins indeli-berately generated during incineration, are acutely toxic, carcinogenic, and teratogenetic.

Environmental AccountingA method of quantitatively evaluating and analyzing the costs and bene-fits of corporate environmental operations in business activities, and dis-closing the results.The objective of environmental accounting is to promote environmental conservation activities effectively and efficiently and continue sustainable development, while maintaining a favorable relationship with the com-munity.

Environmental Reporting Guidelines of the Ministry of the EnvironmentThese guidelines, issued by the Ministry of the Environment, identify re-quired items and define preparation procedures to ensure that all envir-onmental reports share common information.

Expense for Outsourcing Recycling ServicesThis term is used in the Container and Packaging Recycling Law. Recy-cling is a procedure that begins when paper or plastic container and packaging waste is collected according to the type of material, by munici-pal governments or other organizations; and is then processed as resour-ces for reuse. Packaging manufacturers and other related corporations are liable for recycling a certain volume of container and packaging waste according to a calculation method set by the government. The cost incur-red by outsourcing recycling services to a designated waste-processing dealer is called an Expense for Outsourcing Recycling Services.

Global Warming A rise in the average temperature of the earth due to a greenhouse ef-fect caused by an increase in the amount of greenhouse gases in the air, such as carbon dioxide and methane. Global warming has ad-vanced at a rapid rate due to the industrial production activities since the Industrial Revolution.

Green PurchasingA method of purchasing goods or services considering not only price and quality, but also environmental impact. Under the Green Purchasing Pro-motion Law, effective since April 2001, the national and municipal gov-ernments are obligated to purchase goods that have less impact on the environment, to the fullest extent possible. Private companies and individ-uals are also required to comply with the law as much as they are able.

GRI Sustainability Reporting Guidelines Released by the Global Reporting Initiative (GRI), an international NGO encompassing the United Nations Environment Programme, national environmental organizations, institutional investors, associations of certi-fied public accountants, and private corporations. These guidelines re-quire every corporation to prepare a “Sustainability Report” integrating social, economical, and environmental aspects.

ISO 14001ISO represents International Organization for Standardization. Since 1996, ISO 14001 has been the international standard for environmental management systems. The system promotes continuous improvement of environmental management by setting definite targets and repeating four cyclical processes: Plan, Do, Check, and Act; then Plan again.

ManifestA control voucher for industrial waste. Each business party that dischar-ges industrial waste has to fill in a legally designated form, including in-formation about the type, quantity, and handling precautions of the waste. Information is added to the form at each stage after discharge; collection, intermediate disposal, and final disposal. The party that dis-charged the waste then collects the final disposal report to confirm its proper treatment.

Pollutant Release and Transfer Register (PRTR) LawUnder this legislation, each business, such as a plant, is obligated to conduct surveys on the release and transfer (including release into the air, into a river or ocean or outsourcing to a waste-disposal dealer) of about 400 government-designated hazardous chemical substances, in-cluding dioxins, and then report to the national government through the municipal government. The national government will publicly announce the compiled results.

Polychlorinated Biphenyl (PCB)A highly toxic and stable substance that resists decomposition and de-struction. This chlorinated organic compound was used widely for vari-ous purposes including insulation oil. In 1972, production was prohib-ited by law, due to its strong toxicity. Without an effective disposal method, PCB waste had been stored at each company. The PCB Spe-cial Measures Law, enacted in April 2001, has provided a plan for its systematic disposal.

Soil Contamination Control LawThis law was enacted May 29, 2002, to deal with measures against soil pollution. It includes a clear grasp of the factors leading to this condition as well as measures to protect public health.The law requires landowners who have specific facilities that use identi-fied hazardous substances on their land to survey the level of soil pollu-tion when such facilities are terminated. Prefectural governors may or-der a landowner to remove soil contaminants when the public health is at risk.

Sustainable DevelopmentThe thesis proposed in a report entitled “Our Common Future,” which was submitted by the World Commission on Environment and Develop-ment to the United Nations in 1987, has become the focus point to en-vironmental issues. It represents the belief that development without damaging the environment leads to sustainable growth.

Zero Emissions ActivitiesThese activities promote the recycling of waste generated during busi-ness activities in an effort to totally eliminate the volume of waste dis-posal.The Ajinomoto Group promotes Ajinomoto Group Zero Emissions, to-ward eliminating not only waste but also environmental load across all areas of business operations.


Editor's Postscript

This is the fourth issue of our Environmental Report. Since its inauguration, we have published a greater

diversity of articles and increased the scope of aggregated data describing our efforts and achievements.

As in earlier editions, this report is the result of the cooperation of many people, including domestic and

overseas Group employees, as well as stakeholders. We regret that the publication of this issue was de-

layed. We pledge to step up efforts to ensure that the next report will be released earlier.

Corporate Social Responsibility (CSR)－originated mainly in Europe and the United States－embodies the

notion of the Triple Bottom-Line that not only takes into consideration financial and economic aspects

but also environmental and social aspects, and is rapidly spreading in Japan as well. Responding to

these social expectations, the Ajinomoto Group worked toward improving the content of its social activi-

ties, in collaboration with relevant Corporate departments, including Corporate Planning, Human Resour-

ces, General Affairs and Risk Management, and Socially Responsible Activities.

The specific meaning of CSR in Japan, however, is still being explored and clarified. We will continue to

review content and demonstrate the Ajinomoto Way in regard to CSR, aiming to be a global corporation

in food and amino acid products, from its beginnings in Japan.

Our lives are sometimes compared to an egg held in one's hand. The yolk of the egg is the economy,

the white portion is society, and the eggshell is the environment, all grasped in the hand of humankind.

From this image, we can see that the economy is supported by a sound society, in which both the econ-

omy and society itself are protected by the environment, while the “egg” is entrusted to the hand of hu-

man beings.

We introduced this metaphor in our environmental report last year to indicate that we must protect the

environment for a sound society and stable economic growth, under the guiding principle of the Triple

Bottom-Line.

Humbly acknowledging this truth, we will continue to seriously address environmental activities and is-

sues. Your comments and recommendations are important to us for the ongoing improvement of the

content and structure of this report.

Ajinomoto Co., Inc.15-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8315, Japan

Planner and Editor: Nobuyuki Sugimoto, Environment DepartmentAjinomoto Co., Inc.

Issuer: Masayuki Hirata, General Manager of the Environment Department, Ajinomoto Co., Inc.

TEL. +81-3-5250-8169 FAX. +81-3-5250-8318E-mail:[email protected]

No part of this report may be reproduced or copied without the prior permission by the copyright holder. Ajinomoto Co., Inc. 2003

The Ajinomoto Group Environmental Report 2003

C


Published January 2004.

For further information regarding environmental activities of theAjinomoto Group and this Environmental Report, please contact us at

Environment Department Ajinomoto Co., Inc.15-1, Kyobashi 1-chome, Chuo-ku, Tokyo 104-8315, Japan

Tel: +81-3-5250-8169 Fax: +81-3-5250-8318http://www.ajinomoto.com/

Printed on paper made of bagasse (sugarcane fiber) with VOC (volatile organic compound)-free, 100% vegetable oil-based soy ink, using waterless printing that generates no hazardous waste fluids.

Trademark of American Soybeen Association

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