Kyocera CSR Report 2007 CSR Report Kyocera Kyocera CSR Report KYOCERA Corporation —Economic, Social and Environmental Reports— 2007 About the cover design Kyocera was established in 1959 as a small suburban workshop where 28 young colleagues pursued big dreams. Our first product was a U-shaped ceramic insulator (known as a Kelcima) for use within early television picture tubes. Today, Kyocera is a highly diversified global enterprise. We pursue boundless dreams by accepting challenges that others timidly avoid. We believe that a strong will can make dreams come true, and that limitless effort can overcome any obstacle. These beliefs from Kyocera’s history remain the driving force behind our growth. We aim to become a creative company that grows continuously throughout the future. Kyocera Group employees around the world who have adopted this challenging spirit personify our path to growth. The illustration on the cover page of this report was designed in the likeness of the U-Shaped Kelcima. U-Shaped Kelcima To minimize environmental impact, the following practices were adopted in producing this report. Printing Method A waterless printing technique was used. Ink The report is printed with soy ink, free of VOC (Volatile Organic Compounds). Paper The cover material is "thinning white" paper, which uses 70% domestic wood pulp, including 10% pulp derived from the thinning of forests. The inside pages are 100% high-quality recycled newspaper, with a 70% whiteness level. Published November, 2007 KYOCERA Corporation The Purpose of the Report Kyocera CSR Report 2007 The Purpose of the Report The Kyocera Group is pursuing the development of business activities to become “An innovative enterprise that continues to grow,” and to help build a sustainable society. We, the Kyocera Group, are deeply grateful for the backing of our customers, employees, shareholders, investors, business associates and local communities. The support of all Kyocera Group stakeholders makes it possible for us to work toward our goals. The purpose of this report is to highlight various Kyocera Group activities and enhance communication with all who may be interested. We hope the report will aid understanding of the Kyocera Group and promote good communication. Supplementary details and other information not contained in these pages can be accessed through our website, www.kyocera.com. The content of this latest edition of the report has been revised to heighten awareness of Kyocera Group Corporate Social Responsibility. The title has thus been changed from Kyocera Sustainability Report, to Kyocera CSR Report. Furthermore, the style and layout have been revised for greater visual ease and readability. We would like to consider your views on the work of the Kyocera Group in planning our future activities. Therefore, please spare a few minutes to complete and return the questionnaire at the back of this booklet. ¦ Guideline References Corporate Overview (As of March 31, 2007) ● MinistryoftheEnvironment NameofCompany: KYOCERACorporation <Environmental Report Guidelines(2003Edition)> Established: April1,1959 ● GRI*<Sustainability Reporting Guidelines 2002> Representative: PresidentMakotoKawamura *AbbreviationofGlobalReportingInitiative.GRIisaninternational Capital: 115.7billionyen organizationestablishedin1997todraftasustainabilityreportframe- workthatcanbeappliedworldwide. Netsales: Consolidated1,283.9billionyen Non-consolidated531.6billionyen ¦ Scope of the Report No.ofemployees:Consolidated63,477people KYOCERACorporation: 1company KYOCERACorporation(thestand-alonecorecompany)and Consolidatedsubsidiaries: 167companies Non-consolidatedsubsidiaries 167consolidatedsubsidiaries. basedonequitymethod: 2companies “Kyocera”inthisreportreferstothestand-aloneunitofthe Total:170companies KYOCERACorporation(Non-consolidated). Non-consolidated12,613employees Wherethescopeofthereportdiffersfromtheabove,itis Mainbusinessactivities:1.ComponentsBusiness • specified. FineCeramicPartsGroup • SemiconductorPartsGroup • AppliedCeramicProductsGroup ¦ Period Covered by the Report • ElectronicDeviceGroup 2.EquipmentBusiness FY2007(April1,2006~March31,2007) • TelecommunicationsEquipmentGroup However,certainpartsofthereportanddatarefertoearlier • InformationEquipmentGroup mattersandfutureexpectations. • OpticalEquipmentGroup 3.Others ¦ Previous Report ¦ Future Report (Planned) *CapitalandSalesfigureshavebeenroundedofftothenearest100millionyen. *No.ofemployeesinKyocera(Non-consolidated)doesnotincludeexpatriated July2006 June2008 employees. ¦ Other Related Materials (Latest Publications) Enquiries CorporateProfile(June2007) KYOCERACorporationHeadquartersCSRDivision FinancialStatements(June2007) 6TakedaTobadono-choFushimi-kuKyoto612-8501,Japan AnnualReport(July2007) URL:http://www.kyocera.co.jp http://global.kyocera.com Contents Kyocera CSR Report 2007 Contents The Purpose of the Report ················································ 2 ¦ Environmental Report Contents············································································· 3 Management Rationale······················································ 4 Special Feature: Creating New Energy Sources — Top Management Message··············································· 5 Developing Fuel Cells ························································47 Kyocera Group Management Roots Kyocera Environmental Charter ········································48 Environmental Management ● WhatistheKyoceraPhilosophy(CorporatePhilosophy)?··· 7 ● ● PermeationandPracticeoftheKyoceraPhilosophy···· 8 PromotionSystem·························································50 ● ● Kyocera Philosophy/KyoceraEmployee’sAction EnvironmentalAccounting············································52 Guideline/KyoceraAccountancy································10 ● EnvironmentalAudit······················································54 CSR of the Kyocera Group ● EnvironmentalEducation··············································55 ● ● HowtheKyoceraGroupSeesCSR······························12 EnvironmentalRiskManagement·································56 Corporate Governance Overall Environmental Impact ···········································57 Environmental Protection Promotion Plan and Results ● CorporateGovernance·················································14 ···58 Green Products ● InternalControls····························································14 ● ● ComplianceandRiskManagement······························16 EnvironmentallyFriendlyProductswithCore Creating Valuable Business···············································18 TechnologyfromFineCeramics···································59 Topics 2006········································································20 ● EnvironmentalAssessmentinProductDevelopment···59 ● KyoceraGlobalEnvironmentallyFriendlyProducts·······60 ¦ Economic Report ● Environmental Measures ① SolarPhotovoltaicSystem·············································61 Overview of Company Operations ● EnvironmentalMeasures ② AutomotiveParts················62 ● Overview ofBusinessPerformancefortheYearended ● EnvironmentalMeasures ③ OrganicMaterials··············62 March2007····································································23 ● EnvironmentalMeasures ④ CopiersandPrinters··········63 ● TheStateofSalesbyRegion········································24 ● ManagingChemicalSubstancesinProducts··············64 The State of Operations by Segment ● GreenProcurement·······················································64 ● 1.ComponentsBusiness··············································25 Green Factory ● 2.EquipmentBusiness·················································26 ● WasteReductionandRecyclingMeasures····················65 ● 3.Others········································································27 ● AirPollutionandWaterPollutionPreventionActivities····67 ● ChemicalSubstancesManagement·····························68 ¦ Social Report ● EnergyConservation·····················································69 ● GlobalWarmingPrevention··········································70 Special Feature: Contributing to the Advancement of ● ResourceConservation·················································72 Humankind and Society ····················································29 ● MeasuresforOffice·······················································73 Together with Customers Environmental Communications ·······································74 ● ThoroughApplicationofthe“Customer-FirstPrinciple”····30 Kyocera Global Environment Contribution Award ···········76 ● RespondingtotheVoicesofCustomers······················32 Kyocera Perfect 5S Promotion Activities··························77 Together with Employees ● PersonnelMatters·························································33 ¦ Facts and Figures ● EmployeeEducation·····················································36 ● Safety&Health/DisasterPrevention···························38 History ················································································78 Together with Shareholders and Investors·······················40 History of Enviornmental Activities ···································79 Together with Business Associates··································41 ISO 9001 and OHSAS 18001 Certification State ··············80 Together with Society ISO 14001 Certification State ············································81 ● SupportingAcademicAdvancementandResearch····42