In order to contribute to building a recycling-based society, Clarion is endeavoring to reduce the total amount of waste generated by its business activities and promotes recycling activities. Clarion defines “zero waste output” as “recycling 99% or more of waste materials generated from our sites, thereby reducing the amount for final disposal to less than 1%,” and we are working to achieve it through observation of the “5R policy.” Furthermore, we reduce the risk of illegal disposal by improving the production process and disassembling waste, thereby promoting material recycling at the same time. Beginning in fiscal 2006 with the addition of one more site, zero waste output is achieved at four domestic sites, three of them continuing this achievement since 2004. Going forward, we will promote more advanced technologies for recycling and reuse in products and make efforts to further reduce the environmental impact of our business.