Kikkoman Corporation, the world''s leading producer of soy sauce, became the first Japanese company to join the UN Global Compact in January 2001. Since then, Kikkoman has remained committed to total compliance with the ten principles of the Global Compact and to promoting these principles throughout the company and in society. So far, we have focused most on implementing the environment-related principles of the Global Compact.

In 1998, Kikkoman began issuing an annual Environmental Report. In 2001, the same year as we joined the Global Compact, we expanded our Environmental Report to incorporate an Independent Review Report and Third Party Statement of Views. In 2004, we added an Environmental Management Report centering on coexistence and harmony within our natural and social environments. We supplement our general Web report with an Outline of Environmental Management (printed on paper derived from soy sauce). Our 2003 Outline set out clear numerical targets:

1. Greenhouse gases: all main domestic producers in the Kikkoman Group to cut carbon-dioxide output to 92% of 1990 levels (down a real 8%) by 2010, and

2. Recycling efficiency: waste-reuse efficiency targeted at 99% for Kikkoman Group production divisions, and 95% for other divisions, by 2005.

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Kikkoman''s numerical targets for greenhouse gases and recycling were achieved ahead of schedule, with CO2 emissions in 2003 already rolled back to 89.7% of 1990 levels, and recycling efficiency hitting 99.2% for group companies and 99.4% for Kikkoman itself.

Through actions taken in line with the Global Compact environment-linked principles, Kikkoman is continuing to:

- contribute to conservation groups and participate in environmental impact committees,
- implement eco-friendly designs such as our corporate head office in Noda that won the fourth JIA Environmental Architecture Award (Japan Institute of Architects) in 2003,
- set an example on the environment, as recognized by the Sustainable Management Rating Institute, which ranked Kikkoman eighth among 75 surveyed major companies,
- innovate in resource circulation, such as our application of soy sauce oil in feed for fish farming, for which Kikkoman earned recognition from the Ministry of Trade, Economy and Industry,
- promote employee awareness through recycling and volunteer activities, such as visiting welfare centers and participating in cultural events with international NGOs,
- develop health foods from byproducts such as grape seed and tomato skins. (In 2003, Kikkoman identified anti-pollen applications for extracts from tomato skins.),
- meet ISO 14001 certification, with our California plant achieving this in 2003, all Kikkoman overseas plants now meet that standard,
- achieve waste reduction, as recognized by The Integrated Waste Management Board of the State of California Environmental Protection Agency awarding our California plant its third straight citation under the Waste Reduction Awards Program (WRAP),
- donate to environmental causes, such as giving 50,000 euro (6.5 million yen) to the National Green Fund in the Netherlands to plant 30,000 trees to absorb CO2 emissions and signing an ?Environmental Permit? with the city of Hoogezand-Sappemeer to promote environmental management and undertake general antipollution measures. Since 2000, our Dutch plant has donated 45,000 euro (6 million yen) to the ''Water over Wolfsbarge'' nature development project to protect the water resources of Lake Zuidlaardermeer (surface area 650 ha).