The Kurita Group - Kurita Water Industries Ltd. : Ultrapure water supply, Water Treatment Facilities & Chemicals

Committed to Solving Issues Related to Water and the Environment through Business Operations Based on the Corporate Philosophy

Regarding the direction of the Kurita Group’s environmentally sustainable management, which the Group regards as one of its social responsibilities, Katsuhiko Kokubu, a professor at Kobe University’s Graduate School of Business Administration and an expert in environmentally sustainable management, talked with President Hiroshi Saito of Kurita Water Industries Ltd.

Katsuhiko Kokubu, a professor at Kobe University’s Graduate School of Business Administration President Hiroshi Saito of Kurita Water Industries Ltd

Kurita Group’s Social Responsibilities

Kokubu: The importance of environmentally sustainable management has been increasing in accordance with the progress made in international discussions on anti-global warming measures. I think that such management has increased in importance because the target—reducing greenhouse gas emissions—cannot be achieved without industries and companies getting on board. So the ultimate goal involves more than just meeting target figures. Environmental improvement initiatives are now regarded as one of the most important factors in management decisions.

Saito:When the term “environmentally sustainable management” began to be used, it seemed that many companies were using it merely to improve their corporate image. At present, however, a large number of companies highlight the actual environmental performance of their products, and I feel that environmental improvement is becoming a business.

Kokubu: I think it is difficult for companies to survive in society only by reducing greenhouse gas emissions at their factories and offices. They also need to implement measures to reduce greenhouse gas emissions in the use phase of their products. What measures does the Kurita Group plan in this regard?

President Hiroshi Saito of Kurita Water Industries Ltd

Saito:For 60 years since its foundation, the Kurita Group has long been contributing to society through its business operations based on the corporate philosophy, “Study the properties of water, master them, and we will create an environment in which nature and man are in harmony.” Specifically, the Kurita Group is conducting environmental improvement activities focusing on activities that help customers improve the environment, in addition to reducing the Group’s own environmental impact. In the environmental improvement activities for customers, we are committed to (1) “societal needs” by developing new products and technologies that help solve water- and environment-related problems and also (2) “customer needs” by proposing and providing environmental improvement to customers. I believe that conducting these activities through continuous business operations represents one of the Kurita Group’s social responsibilities and these activities do make the Group socially significant.

New Medium-Term Plan for Environmental Improvement Activities

Katsuhiko Kokubu, a professor at Kobe University’s Graduate School of Business Administration

Kokubu:Since the Kurita Group began conducting environmental improvement activities in 2004, I have been making related improvement proposals from a third-party perspective. Over the last five years, the target of the activities was expanded to include all domestic Group companies, and the promotion systems and the achievement data collection mechanism were thus improved. Moreover, you formulated a new three-year medium-term plan covering these activities, in which you set quite aggressive targets and policies. Please tell me about the purpose of this plan.

Saito:We have formulated the new medium-term plan to further boost our environmental improvement activities, in particular environmental improvement activities for customers. To achieve this target, we have reviewed our Basic Environmental Improvement Policy to make it clearer that the activities are to be conducted by the entire Kurita Group and that we are committed to contributing to society through our business operations. At the same time, we newly set Action Guidelines. In the Guideline for “customer needs,” we incorporated the themes set in the Medium-Term Management Plan, which started in April 2009, to show Group employees that business activities and environmental improvement activities are linked at the Kurita Group.

Kokubu: If you can successfully combine the initiatives taken in your solution business in which you propose and provide environmental benefits to customers with the initiatives you implement to respond to the “customer needs,” employees will more clearly be able to understand the linkage between the business activities and environmental improvement activities.

Saito: At present, the Kurita Group is endeavoring to shift its business model from the conventional one, in which we focus on product-based business, to a style in which we propose and provide new solutions, including but not limited to products, to customers to support them in improvement of productivity, reduction of environmental impact, and creation of new energy. These three themes reflect the main needs of customers that were identified in the customer satisfaction survey we conducted in 2008. For the Kurita Group, “environmentally sustainable management” means to achieve growth by linking its business plan focusing on profitability with the environmental improvement activity plan focusing on the environment.

Kokubu: In order to further promote environmental improvement activities, you need to think about how to set the targets and use them in addition to publicizing the policies and themes for the activities. Recently, some companies have set super-long-term targets for 2050 and then set specific targets and measures toward the achievement of those super-long targets. These companies are fostering their activities by showing the future benchmarks and by setting specific targets for the achievement of the benchmarks.

Saito: At the summit meeting held this July, developed countries announced their commitment to reducing greenhouse gas emissions by at least 80% by 2050. Companies, including the Kurita Group, need to prepare themselves to contribute to the achievement of this target, and setting super-long-term targets would be one of the means. The Kurita Group will continue to contribute to society through business operations based on its corporate philosophy. As the first step to this end, we will steadily implement the new medium-term plan for environmental improvement activities.

(Interview conducted in July 2009)