We, at the Kubota Group, have missions to solve issues through the worldwide business in the fields of food, water and the environment and contribute to building a sustainable society and conserving the global environment. In 2014 we launched the Environmental Management Strategy Committee to deliberate over a medium- to long-term approach by management-led promotion. We have implemented the reduction of the environmental impacts, environmental risks and the expansion of environment-conscious products. This time, the Kubota Group newly formulated "Kubota Group Long-Term Environmental Conservation Target 2030" and "Kubota Group Medium-Term Environmental Conservation Target 2020" as our next targets in order to contribute to building a sustainable society as a sustainable company. We will enhance further environmental efforts in a planned manner from fiscal 2016.

Actions Items and Targets for 2030 in the "Long-Term Environmental Conservation Targets 2030"

1. Efforts to Stop Climate Change (Scope: Business Sites in Japan)
   • Reduce CO₂ emission from the Kubota Group in Japan ^*1 by 30% compared to the base year 2014
2. Efforts to Develop Environment-Conscious Products
   • Increase the sales ratio of Eco-Products certified products^*2 to 80%
   • Aim to put all new products which are certified as Eco-Products on the market in 2030 and later.

Actions Items and Targets for 2020 in the "Medium-Term Environmental Conservation Targets 2020"

Scope	Issues	Actions items	Management indicators*3		Base year	Targets for 2020
Global Production sites	Stopping Climate Change	Reduce CO2*1	CO2 emissions per unit of production		2014	-14%
		Save energy	Energy consumption per unit of production		2014	-10%
	Working towards a Recycling-based Society	Reduce waste	Waste discharge per unit of production		2014	-10%
			Recycle ratio*4	Plants in Japan	-	More than 99.5%
				Plants in other than Japan	-	More than 90%
		Conserve water resources	Water consumption per unit of production		2014	-10%
	Controlling Chemical Substance	Reduce VOC*5	VOC emissions per unit of production		2014	-10%
Products	Improving Product’s Environmental Performance	Expand Eco-Products	Sales ratio of Eco-Products*2			More than 60%
		Promote recycling	Usage ratio of recycled materials*6			More than 70%
		Develop vehicles compliant with gas emission regulation	Development of industrial diesel engines that comply with the latest emission regulations of Japan, the US and Europe and putting on the market of the engine-based products*7

1. *1.CO₂ emissions include greenhouse gases from non-energy sources. We use the emissions coefficient for electricity of the base year in our calculation of CO₂ emissions from energy sources towards the target for 2020.
2. *2.Eco-Products mean the products which have fulfilled the internal requirements in our own Eco-Products Certification System.
   Sales ratio of Eco-Products (%) = Sales of Eco-Products / Sales of products (excluding construction work, services, software, parts and accessories) × 100
3. *3.The figures per unit of production represent the intensity of the environmental impact per unit of production money amount.
   The exchange rate of the base year is used when translating the production money amount of overseas sites into Japanese yen.
4. *4.Resource recycling ratio (wt%) = (Sales volume of valuable resources + External recycling volume) / (Sales volume of valuable resources + External recycling volume + Landfill disposal) × 100. Heat recovery is included in external recycling volume.
5. *5.VOCs comprise the six VOCs that are most prevalent in emissions from the Kubota Group: xylene, toluene, ethylbenzene, styrene, 1, 2, 4-trimethylbenzene, and 1, 3, 5-trimethylbenzene.
6. *6.The scope of "ratio of recycled materials" (wt%) are materials used in casting products and components (ductile cast iron pipes, their fittings, mechanical castings (e.g. crankcases of engine)) manufactured by the Kubota Group.
7. *7.The scope of the vehicles are tractors and combine harvesters equipped with engines which comply with the EU Regulations (Euro Stage IV) and other similar regulations, shipped to Europe, North America, Japan, and Korea (output range: 56 kW≦P<560 kW).

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