At the Head Office, departments directly in charge of a type of product or a business investment prepare annual environmental impact assessments (EIAs) using itemized cards to identify areas of environmental impact and quality-related effects. The act of compiling an EIA reaffirms the relationship between business activities and the environment and helps to raise the environmental awareness of employees.

In terms of MC's EIA methodology for products, MC examines the environmental impact across the product life cycle, from raw materials procurement to post-use disposal. Assessments of business investments examine the environmental impact in terms of the scope and details of activities in business sectors and business models. These assessments are conducted for both normal circumstances and emergencies. In addition to the above points, EIAs also comprehensively take into account factors such as MC's degree of influence on the product or business investment, the extent of environmental risk and any relevant environmental laws or regulations. Based on the findings of these assessments, the characteristics of each business group and the priority or emphasis given to an area in environmental management, environmental goals and targets are set and managed every year for certain selected environmental aspects.

At domestic branches and offices, assessments are conducted of environmental impact in terms of business activities and the overall operation of offices.

MC conducts environmental reviews using operational and management techniques to examine aspects of environmental management where MC has indirect influence. These reviews involve surveys of how environmental and social impacts are being handled, interviews and site visits to assess the status of environmental management at product suppliers, subcontractors and business investees as well as emergency responses. The results of these environmental reviews are used to provide product suppliers, contractors and business investees with suggestions and requests to make further improvements in environmental performance, with the goal of reducing the environmental impact of all parties.

In the fiscal year ended March 31, 2009, Head Office groups conducted both environmental reviews of commodity trading operations and business investees. Besides providing suggestions and requests to reduce environmental impact of reviewed parties, MC also used the reviews as the basis for developing numerical performance targets with suppliers and business investees as part of specific business development plans. Environmental reviews have proven to be a highly effective tool for developing environmental management systems (EMS) that encompass MC's supply chain.

In addition to trying to reduce environmental impact indirectly through the environmental review process, as a matter of policy, MC is also involved in various initiatives that set and manage direct environmental performance targets and objectives. These are organized under a number of policy themes, including the promotion of businesses that contribute to reducing environmental impact; lectures and other educational programs for raising employees' environmental awareness; and voluntary environmental surveys linked to environmental conservation, environmental management and related improvements. During the fiscal year ended March 31, 2009, MC undertook initiatives connected to seven separate policy themes. The results were useful in promoting environmental businesses and conducting environmental and CSR activities based on the regional characteristics of domestic branches.

Direct participation by all employees in trying to reduce environmental impact is a major theme of office-based measures at MC. We have set quantitative targets for reducing the consumption of paper, electric power and other resources inside our offices. Each year we review our targets and results as part of ongoing management of this program and from the year ending March 31, 2010, we have initiated a Company-wide program in Japan called the "CO₂ Action Project" (see page 34 for more details). Through this initiative, we aim to reinforce further the effectiveness of our efforts to save energy and resources in our office-based activities.

MC-Wide CO₂ Emissions-Reduction Program