Article 1Purpose

The Rules shall define the matters necessary to implementing the Company's environmental philosophy which, based on the recognition that protection of the global environment is a vital common theme to all human beings, seeks to contribute to society by minimizing environmental impact through the implementation of environmentally conscious business practices, and by promoting continuous Group-wide environmental protection activities.

Article 2Scope of Application

The Rules shall apply to the Company and its Group companies. The Company shall require its Group companies to formulate their own environmental rules (including environmental policies) tailored to their respective businesses, in conformity with these Rules, thereby pursuing Group-wide environmental activities on a continuous basis.

Article 3Environmental Policy

As a distribution service provider, the Company shall strive to offer a comprehensive range of environmentally friendly distribution services, by promoting transportation efficiency improvement measures and modal shifts. The Company shall implement environmental management in accordance with the following principles.

1. Endeavor to protect the global environment, by complying with laws, regulations, ordinances and rules relating to environmental conservation.
2. Endeavor to make effective use of limited natural resources and prevent environmental pollution, by promoting resource saving, energy saving, recycling, reuse, waste reduction and proper treatment, and pollution emission reduction.
3. Endeavor to continually improve its environmental performance, by setting environmental goals, taking into account various environmental impacts associated with our business activities; by implementing planned environmental activities in a systematic manner to achieve the set targets; and by periodically reviewing our activities.
4. Implement environmental education, training and internal publicity activities to raise employees' understanding and awareness of global environmental issues and increase their participation in environmental activities, thereby promoting smooth environmental management.
5. Disclose the Environmental Policy widely to the public through our website and other means.

Article 4Environmental Protection Promotion System

1. The Chief Executive Officer of the Company shall oversee the environmental management of the Kamigumi Group.
2. The Company's Chief Executive Officer shall establish the Environmental Protection Promotion Headquarters ("the Headquarters"), composed by members of the Management Department of the Company's Registered Head Office, to promote effective environmental management across the Group. Also Chief Executive Officer must appoint a director in charge of the Management Department, or an equivalent director, to serve as the Chief of the Headquarters ("the Headquarters Chief").
3. The Headquarters Chief shall act on behalf of the Chief Executive Officer to promote the Group's environmental activities. The Headquarters Chief shall establish an environmental protection promotion system, as per the Attachment. The Headquarters Chief shall also, in accordance with the Environmental Policy prescribed in the preceding article, ensure that environmental targets for the entire Group are set, that environmental activities planned to achieve the set targets are implemented systematically and smoothly, and that environmental activities are periodically reviewed. The Headquarters Chief shall direct, supervise and oversee the planning and implementation of the Group's environmental protection programs, so as to ensure continuous improvement in environmental performance.
4. The Headquarters Chief shall establish an Environmental Protection Promotion Chapter ("the Chapter") at each branch, etc., and appoint the head of each branch, etc., (including Department Managers at the Registered Head Office, Branch Managers, Division Managers and representatives of the Group companies) to serve as the Chief of the Chapter ("the Chapter Chief").
5. To support the duties of the Headquarters Chief, the Chapter Chief shall cooperate with the Headquarters to manage, supervise environmental education, and train employees for environmental activities at their respective chapters. In addition, the Chapter Chief shall carry out the duties described in the following clauses:
   1. In the case of a Group company, establish an environmental protection promotion system which modeled after the Company's system, and promote environmental protection activities in cooperation with the Headquarters.
   2. Every branches has to setup their own business activities goals for the achievement of the Group's goals based on the advance notification from the HQ. After, submit the goals to the Headquarters before executing environmental protection activities.
   3. Summarize the implementation status and results of the environmental activities mentioned from Chapter 2 to Chapter 5 in "Environmental Reports", and submit to the Headquarters either periodically or upon request from the Headquarters.
   4. Establish a system to collect and organize data necessary to implement continuous environmental protection activities, and to submit these data to the Headquarters, periodically or upon request from the Headquarters.
6. The Headquarters shall review the reports submitted from each Chapter, pursuant to the provisions of Clause 3 of the preceding paragraph, and assess and record each Chapter's performance (achievement level against the targets, implementation status against the plan, and status of compliance with legal requirements). The assessment results shall be submitted to the Headquarters Chief.
7. If nonconformance is detected during the examination of the results submitted pursuant to the provisions of the preceding paragraph or if the occurrence of nonconformance is predicted, the Headquarters Chief must promptly advise the relevant Chapter to take appropriate remedial or preventive measures. Based on the assessment results, the Headquarters shall review the Group's environmental protection activities and make improvements, and establish environmental targets for the next term. The Headquarters Chief shall report these facts to the Company's Chief Executive Officer, whom oversees the environmental management of the Group.

Article 5Promotion of ECO-Driving

The Chapter Chief shall appoint appropriate persons at his/her chapter to serve as Eco-Driving Promoters. The Chapter Chief shall have the Eco-Driving Promoters conduct education and training programs on eco-driving techniques. The Chapter Chief shall oversee and supervise the implementation of those training programs.

Article 6Eco-Driving Methods

Employees of the Company and its Group companies shall apply the eco-driving techniques listed below, when driving a vehicle-whether it be a company vehicle or a private vehicle, to reduce environmental impact while driving as well as to save energy.

1. Idling stop.
2. Drive at an economical speed.
3. Avoid jack-rabbit starting and unnecessary acceleration.
4. Shift up earlier when driving manual transmission cars.
5. Use engine braking effectively.
6. Avoid gunning the engine when unnecessary.
7. Avoid unnecessary parking or stopping.
8. Do not carry unnecessary luggage.
9. Reduce the use of air conditioning.
10. Select a route with the minimum distance.
11. Receive regular check-ups and maintenance and keep tire pressure at an appropriate level.

Article 7Development of Vehicle Plan

The Chapter Chief shall develop a plan regarding the introduction of new vehicles, the replacement/retirement of existing vehicles, etc., taking into account legal restrictions on vehicle types and the Company's environmental impact reduction and energy saving policies. The Chapter Chief shall also manage the vehicles in the Chapter's fleet appropriately in accordance with the vehicle plan developed.

Article 8Introduction of Low-Emission, Fuel-Efficient Vehicles

The Chapter Chief shall endeavor to introduce low-emission, fuel-efficient vehicles with less environmental impact (vehicles types listed below). In introducing new vehicles, the Chapter Chief shall take advantage of government incentive programs such as subsidies and tax-breaks, whenever possible.

1. Natural gas vehicles
2. Electric vehicles
3. Hybrid vehicles
4. Methanol-fueled vehicles
5. Gasoline-fueled vehicles (fuel-efficient, low-emission)
6. Diesel-fueled vehicles (fuel-efficient, low-emission)

Article 9Inspection and Maintenance of Vehicles

The Chapter Chief shall oversee and manage the inspection and maintenance of Chapter-owned or -operated vehicles. The Chapter Chief shall endeavor to maintain emissions of air pollutants within the regulatory limitations through proper implementation of statutory regular inspections, and daily pre-work inspections by drivers.

Article 10Management of Vehicle Operation Status

The Chapter Chief shall manage and analyze the operation status of the Chapter-owned or -operated vehicles. In an effort to reduce environmental load and save energy, the Company shall actively implement measures, such as increasing loading ratio, securing backhauls and minimizing travel distance, and promote continuous improvement on vehicle operation.

Article 11Energy Saving of Facilities, etc.

1. The Chapter Chief shall strive to promote energy saving of the facilities (including incidental facilities; hereinafter the same) that the Chapter owns or operates, through proper maintenance, management, and improvements (refers to improvements and repairs of facilities, new installation and replacement of equipment, etc.). The Chapter Chief shall also promote rationalization and efficiency improvement of the relevant facilities.
2. When installing or replacing equipment in a facility which the Chapter owns or operates, the Chapter Chief shall introduce the energy-saving equipment most appropriate for the relevant facility, and for business activities. In introducing new equipment, the Chapter Chief shall take advantage of government incentive programs such as subsidies and tax-breaks, whenever possible.

Article 12Waste Emission Reduction, etc.

The Chapter Chiefs shall endeavor to reduce environmental impact resulting from their business activities by promoting waste reduction and proper waste disposal.

Article 13Efficient Use of Natural Resources

The Chapter Chiefs shall endeavor to make effective use of limited natural resources, promoting by recycling and reuse of waste arising from the business activities.

Article 14Separation of Waste

To facilitate proper waste disposal, the Chapter Chiefs shall endeavor to ensure that all waste discharged from their business sites is separated properly in accordance to the waster separation rules of their respective municipalities.

Article 15Improvement of Comprehensive Efficiency

In response to the government's move to advance the integration and streamlining ("comprehensive efficiency improvement") of distribution businesses, as a distribution company offering a comprehensive range of services-from transportation, storage, and container handling to distribution processing ("comprehensive distribution company")-the Company shall, in cooperation with its customers (refers to shippers, etc.; hereinafter the same), take various measures to improve comprehensive distribution efficiency, thereby reducing impact on the environment. Such measures include: integration of transportation networks, shared distribution, increasing loading ratio, promotion of modal shifts, etc., as described in the subsequent article, and improvement and construction of distribution base facilities. Furthermore, when it is deemed possible to apply for the certification of a comprehensive efficiency improvement plan, as defined in the laws (refers to the Act on the Advancement of Integration and Streamlining of Distribution Businesses, etc.), the Company shall make a relevant application in order to receive special treatment, including a tax break for distribution center facilities.

Article 16Promotion of Modal Shifts, etc.

As a comprehensive distribution company, the Company shall cooperate with its customers to strive to reduce its environmental impact by actively promoting modal shifts, combining truck transport with inland waterways and rail in a cost-effective and efficient manner, and by increasing the use of larger transport equipment and vehicles in accordance with the increased cargo volume.

Article 17Revision and Abolition of the Rules

The Rules shall be revised or abolished after an affirmative vote of more than two-thirds of the Headquarters Chief and Chapter Chiefs by the approval of the Chief Executive Officer of the Company, who oversees the Company's environmental management. When the Rules are revised or abolished, Group companies shall, accord with the intentions of the revision or abolition of the Rules, promptly revise or abolish their environmental protection rules, established under Article 2.

Article 1Revision and Abolition of the Regulations

These Rules shall take effect on December 1, 2006.