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 Basic Philosophy  As a sound global enterprise, MC recognizes that an enterprise cannot continue to exist without consideration for its environmental performance. We will strive to preserve and improve the global environment and pursue sustainable development through all aspects of our business activities. Guidelines for Corporate Action
 Business Activities MC handles a diverse range of products and services through its business operations, both in Japan and overseas. The company's close relationship with the environment is particularly strong due to the wide scope of its commercial trading business and to its various investment activities around the globe. Environmental Management HighlightsPriority CSR Programs MC's global business has close ties with the environment. For this reason environmental impact caused by the activities of suppliers and business investment partners receives high priority at MC. In order to better manage its indirect environmental impact, MC conducts environmental impact assessments (EIAs), which target its suppliers and its business investment partners. The results from these assessments are used to provide suggestions as well as requests for improvements in order to reduce overall environmental impact. In addition, the company surveys the performance of environmental management initiatives by its business investment partners, using the data it obtains for risk management. The company performs direct environmental management over its offi ces by setting numerical targets designed to reduce environmental impact. Promotion of the environmental management systems (EMS) under ISO14001 also helps to boost environmental awareness among all employees.  The environmental management organizational structure at MC is headed by the President and CEO, with all employees contributing to its implementation.   Understanding Environmental Impact MC handles a wide spectrum of products and has made business investments in a diverse range of industries. Some of these products have a signifi cant environmental impact while certain business investments have operations with signifi cant environmental as well as social impact. In order to track the environmental impact of the activities of its business investments and of the products they handle, the company uses a system of environmental impact assessments (EIAs). Under the system, the departments directly in charge of a business investment or product identify areas where environmental impact may occur and conduct EIAs on an annual basis. Environmental Impact Assessment Methodology Environmental impact assessments (EIAs) are separated into assessments covering normal as well as emergency situations. Assessments of business investments examine the environmental impact across the entire scope of business activities. Product assessments examine the environmental impact at each stage of the product life cycle. The assessments take into account numerous factors including the characteristics of the product and the degree of influence that MC can exert on the business investment and product. Concerns from stakeholders and the applicability of environmental regulations are also factors that are taken into account. In fiscal 2006, the company identified areas of environmental impact and conducted EIAs targeted at 16 business investments, with 4 of those firms located abroad. Identifi cation of areas of environmental impact and EIAs were conducted on all 28 product categories designated by the company. The annual implementation of EIAs gives employees an opportunity to reflect on the relationship between their work and the environment. The initiative therefore functions as a critical educational tool to boost sensitivity and responsiveness to environmental issues among all employees. Environmental Reviews MC performs "Environmental Reviews" of the businesses we invest in and the products we handle, selecting them on the basis of the findings from environmental impact assessments (EIA) and expected environmental improvements. The environmental review process seeks to reduce the environmental risks taken by business investments and to lower the environmental impact of products handled by the company. Every year, MC surveys and interviews numerous business investments and suppliers. The process includes actual observation of work sites and of production processes in order to ascertain and assess the environmental management infrastructure and the state of implementation of environmental initiatives. It is also designed to verify and assess working conditions as well as to monitor the observance of human rights and the situation in local communities. The results of the environmental reviews are used to provide business investments and suppliers with suggestions and requests to further improve their environmental performance. The system enables MC to work collaboratively with business investments and suppliers to reduce environmental risk. Environmental impact assessments and environmental reviews also play a critical role in the company's supply chain management, which extends to its suppliers. These initiatives are part of an overall commitment to risk management by the MC Group.  Environmental Impact Assessments of Products MC conducts annual environmental impact assessments (EIAs) of product categories covering the entire scope of products it handles. Products are grouped into categories based on shared characteristics ranging from physical and chemical properties to the way products are handled or used. Applicable environmental regulations are also taken into account in categorizing products. In fiscal 2006, the company assessed 935 product categories comprised of 496 handled by head office operations and 439 handled by domestic block operations. The table below shows the level of environmental impact caused by the 496 product categories of the head office operations. The data is derived by calculating the average score for each product category by type of environmental impact and by business group. Darker bars represent higher levels of environmental impact. Analysis of the data shows that, in almost every business group, the environmental impact is highest in the global warming and natural resources categories. MC is using the data to implement initiatives that will reduce its environmental impact, while taking into account the characteristics of each group and identifying signifi cant environmental aspects. In addition to the above, MC is also implementing various environmental reviews.   Domestic Maritime Transportation of Naphtha
 MMC Car Poland Sp.z.o.o. (MCP)
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