Clarion works for harmony among people, communities and nature and engages in sustainable corporate activities. Clarion also commits itself to being an environment friendly enterprise through such measures as effective use of limited natural resources and as well as energy. Based on the Corporate Philosophy, the entire Clarion Group continues to undertake environmental protection activities by concentrating its resources in areas of technical, economic, and human resources.

Clarion has constructed an environmental management system (EMS) and a framework to promote environmental protection activities, based on the international ISO14001 standard. We established the Standing Committee on the Environment, chaired by the President, in order to promote environmental activities throughout the company. Seven subcommittees play a central role in activities around company-wide issues cutting across departmental boundaries. In addition, each department assigns one or more leaders to promote department based environmental activities.

Clarion provides systematic education to all employees to increase their awareness of environmental protection.

The department in charge of Environmental Management provides education and training to department managers. Based on this education and training, the managers take the lead in conducting an education program for all employees, including employees of domestic affiliates and subsidiaries, at least once per year.

This program for education about the environmental management system is provided by the H.R. Dept. and the departments in charge of the Environmental Management to each organizational level staff from new employees to department managers.

This program consists of training by an external training institution and training by Clarion’s leading internal auditor group. As a result, in fiscal 2006, 17 internal environmental auditors were newly qualified and appointed.

Personnel qualified for certain designated jobs under laws and regulations and employees engaged in tasks that have a profound impact on the environment are categorized as “workers engaged in designated tasks,” and are provided with professional training in accordance with their duties. Furthermore, we perform simulated drills regularly to ensure that they can respond quickly and appropriately in a possible emergency situation.

Clarion obtained company-wide ISO14001 certification in April 2000. We have expanded these efforts to the group companies as well. In June 2006, Clarion M&L Co., Ltd. (Shiroishi Office) became the latest certified site within the Group.

In January 2007, Xanavi Informatics joined our corporate group and they are engaged in environmental protection activities in five domestic sites. If we look at our overseas affiliates and subsidiaries, 10 sites, largely production bases, have successfully been certified and one site underwent its first audit in February 2007. At all of our domestic sites, external inspections are conducted once annually and internal environmental audits are conducted twice annually to assess whether the environmental management system is being appropriately implemented and maintained.

Clarion compiles and shares a companywide database covering major environment-related laws and regulations as well as customer requirements. Compliance status with laws and regulations is checked on a monthly basis, and the Standing Committee on the Environment evaluates and verifies the compliance level of the entire company. Furthermore, the departments responsible for promotion of environmental activities identify deviations from the reference values set by laws and regulations as well as environment-related accidents, complaints, and risks, and set up and strictly follow “self-imposed standards.”

Clarion conducted a voluntary study of company-owned land, which detected fluorine in some of the soil. So we are committed to implementing a more in-depth study and going ahead with countermeasures based on consultations with the local government. There were no other major violations of environment-related laws and regulations or ordinances, accidents, or complaints.