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The global environment, the basis of life, is under threat. The Ajinomoto Group is committed to solving problems related to global sustainability through its business activities. Rising temperatures and major changes in climates are severely affecting the harvest of agricultural crops. In response, the Ajinomoto Group is working to reduce greenhouse gas emissions over the entire lifecycle of its products. As biodiversity is being lost and ecosystem services decline, the Ajinomoto Group is creating a business model designed to protect ecosystems and utilize living resources sustainably. Resource recycling is essential to ensure that life continues on Earth. With the view that natural resources are nature's gifts, the Ajinomoto Group maximizes the resources it uses across the entire supply chain. Global Sustainability 19

Global Sustainability - AJINOMOTO · solving problems related to global sustainability through its business ... based on the Ajinomoto Group Zero Emissions Plan. ... including sugarcane

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The global environment, the basisof life, is under threat. TheAjinomoto Group is committed tosolving problems related to globalsustainability through its businessactivities.

Rising temperatures and majorchanges in climates are severelyaffecting the harvest ofagricultural crops. In response,the Ajinomoto Group is working toreduce greenhouse gas emissionsover the entire lifecycle of itsproducts.

As biodiversity is being lost andecosystem services decline, theAjinomoto Group is creating abusiness model designed toprotect ecosystems and utilizeliving resources sustainably.

Resource recycling is essential toensure that life continues onEarth. With the view that naturalresources are nature's gifts, theAjinomoto Group maximizes theresources it uses across the entiresupply chain.

Global Sustainability

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A healthy global ecosystem and ecosystem services areessential for our future. However, the sustainability ofthe global environment is currently under threat.

Climate change is a case in point. Atmospherictemperatures are rising due to increasing CO2 emissionsand other greenhouse gases, and atmospheric circulationover the entire planet is shifting. These factors areaffecting the climate, bringing about abnormal weatherpatterns and other phenomena. They, in turn, affect thelives of plants and animals, the livelihoods of people, andthe growth of crops.

Nature's gifts, beginning with its living resources, are theoutgrowth of biodiversity, a vital process thatencompasses all life on Earth. Yet, the myriadconnections of biodiversity are being disrupted by humanactivities, such as over-fishing and environmentalpollution.

Water is essential for sustaining life. While vast oceanscover the earth with seawater, fresh water sources aremeager by comparison. In fact, the amount of freshwater directly accessible to humankind is no more than0.01% of all the planet's water. As the population grows,so will demand for fresh water, raising the highlyprobable scenario of increasingly severe water shortagesin the future.

Facts about climate change

Global mean surface temperatures increased 0.74℃from 1906 to 2005, and are projected to increasebetween 1.8℃ and 4.0℃ between 2000 to 2100.The frequency of extreme temperatures, heatwaves, and heavy rains is increasing.Land and marine environments are changingdramatically, raising the risk of extinction of plantand animal species.Grain production will fall in low-latitude regions iftemperatures rise between 1℃ and 2℃.

Contributing to a Low-Carbon Society

Issues Concerning Global Sustainability

Current Issues Affecting Global Sustainability

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Facts about biodiversity

The expansion of human activities is shrinking plantand animal habitats and causing sudden changes intheir environment.About 12% of birds, 25% of mammals, and 32% ofamphibians are expected to become extinct in thenext century.More than 60% of the earth's ecosystem services isexpected to degrade, encompassing the purificationof water essential for people's livelihoods and theregulation of air quality.

Conserving Ecosystems and Biodiversity

Facts about water resources

Only 0.01% of the earth's total amount of water isavailable to humankind as fresh water.About 1.1 billion people in developing countrieshave inadequate access to water resources requiredfor their livelihoods.The global demand for water is predicted toincrease 40% above the current accessible andreliable supply by 2030.About 70% of the world's water supply is used foragricultural irrigation.Almost 80% of all marine pollution originates fromagriculture and inland development.

Contributing to the Recycling of Resources

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Contributing to a Low-Carbon Society

Approach and Initiatives toward a Low-Carbon Society

Extensive climate change caused by global warming is a problem that affects the sustainability of the entire planet,and as such, directly affects the future of the Ajinomoto Group. Accordingly, initiatives are being carried out to reducegreenhouse gases generated not only by production processes, but also throughout all group operations and entireproduct lifecycles. Specifically, the group intends to search for new applications of amino acids and other materials,and develop and provide products that emit less greenhouse gas emissions over their lifecycle toward realizing alow-carbon society.

The Ajinomoto Group has achieved steady progress in reducing CO2 emissions across its operations through initiativesbased on the Ajinomoto Group Zero Emissions Plan. Going forward, efforts will focus on developing technologies thatcan further reduce the amount of raw materials and energy being used in the fermentation of amino acids, thegroup's primary production process, and increase production efficiency that enable the same quantity of products tobe made from less raw materials. Furthermore, the group is working to reduce energy usage by developingtechnologies that decrease the amount of sub raw materials needed to extract amino acids and other substances inthe fermentation process.

Progress is also being made in transitioning to renewable energy sources to reduce dependence on oil. Whilepetroleum accounted for 36% of the total amount of energy used by the group in fiscal 2004, the proportion waslowered to 11% by fiscal 2010. The proportion of biomass fuel increased to 5% of energy used in fiscal 2010, owing tothe start-up of biomass boilers at the Kamphaeng Phet Factory of Ajinomoto Co., (Thailand) Ltd.

The group intends to utilize unused biomass that does not compete with food resources for the energy needed tomanufacture its products. To broaden initiatives for using biomass energy group-wide, the company is examiningregions with abundant plant resources including Southeast Asia, South America, and Europe.

Click here for more details: Zero emission goals and fiscal 2010 results

Reducing Greenhouse Gas Emissions by Improving Amino Acid Fermentation

Production Processes

Compared to food production that directly processes agricultural produce, the Ajinomoto Group uses large amounts ofwater and energy to produce and purify amino acids in the fermentation of agricultural produce such as sugarcane, aprimary raw material . In fact, about 70% of the group's total amount of CO2 emissions originates fromfermentation-related operations.

In response, the Ajinomoto Group is committed to reducing CO2 emissions and environmental impact by applyinglower resource fermentation technology in amino acid fermentation production processes, and transitioning tobiomass energy using carbon neutral energy sources.

Initiative 1: Applying lower resource fermentation technology

Over many years, the Ajinomoto Group has been recycling resources in theproduction of amino acids. Going forward, the group aims to use resourcesmore efficiently, introduce lower resource fermentation technology thatreduces environmental impact and the amount of edible food resourcesrequired, and further develop fermentation processes.

Specifically, Ajinomoto Co., Inc. is entering the partial industrialization teststage for four new technologies that drive fermentation production with fewerresources. The first technology improves fermentation efficiency as a meansto drastically reduce the usage of raw materials. The second is designed toreduce the amount of sub raw materials used as well as the amount of wastewater and byproducts generated in theproduct purification process.

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A biomass boiler and huge silo in which aboutone month's supply of rice husks (10,000tonnes) can be stored

The third technology is applied to independently produce raw materials for fermentation, including sugarcane juiceand tapioca starch, and use biomass generated from the process as a fuel source. Production plants that make theumami seasoning AJI-NO-MOTO® are now preparing to employ this technology in their operations.

The fourth new technology has been developed to reduce food resource usage by using the cellulose of inedible partsof plants as the main raw material for fermentation.

Edible food resources such as sugarcane and corn are used in the amino acid fermentation process. Demand for thesematerials is increasing, however, owing to population growth, economic expansion in emerging countries, and theirusage as energy crops. Consequently, prices are increasing considerably and supply is unstable.

The application of these four new technologies will enable the Ajinomoto Group to make significant contributions insaving resources; decrease environmental impact in various ways, such as by cutting CO2 emissions and waterdischarge; and limit the use of food resources in an effort to use them more effectively.

Initiative 2: Introduction of biomass boilers

In December 2008, a major amino acid production plant of the AjinomotoGroup, the Kamphaeng Phet Factory of Ajinomoto Co., (Thailand) Ltd.,replaced its heavy-oil boilers with biomass boilers that burn rice husksobtained from rice harvested in the local area.

The supply of rice husks is stable throughout the year since rice is harvestedthree times annually in Thailand. A previously unused agricultural resource,rice husks are a carbon-neutral1 fuel. With the installation of the biomassboilers, the factory has been able to reduce its CO2 emissions by about100,000 tonnes per year.

The Ajinomoto Group applied to register this initiative as a Clean Development Mechanism (CDM)2 with the Japaneseand Thai governments in 2009–the first time for the group to apply. Approval was granted by both countries, and asa next step, the group is preparing an application to the United Nations for registration as a CDM project.

1. The concept of carbon neutral poses that incinerating plants have no impact on atmospheric CO2 emissions, as the CO2 absorbed byphotosynthesis in their growth period offsets the CO2 emissions from incineration.2. The Clean Development Mechanism (CDM) is one of the mechanisms set forth in the Kyoto Protocol. It enables projects that reduceemissions in developing countries to be funded by entities in industrialized countries in return for credits for any emissions reductions thatresult.

Reducing Greenhouse Gas Emissions through the Ajinomoto Group Products

While greenhouse gases are emitted in business activities of the Ajinomoto Group, products that reduce suchemissions through their use are also being developed. Progress is being made in determining the amount ofgreenhouse gases emitted by products over their entire lifecycle, including usage. Furthermore, the group is workingto promote the use of products such as feed-use amino acids, as well as technologies that contribute to reducinggreenhouse gas emissions.

Initiative 3: Research on the group's carbon footprint

The carbon footprint1 of a product is an indicator for quantitatively measuringits environmental friendliness by quantifying how much greenhouse gaseshave been emitted over its entire lifecycle. Currently, the ISO 14067international standard for the carbon footprints of products is now beingdeveloped for release in 2012.

From an early stage, Ajinomoto Co., Inc. has been conducting basic carbonfootprint research, regarding it as a potentially useful indicator for realizing a A product labeled with carbon footprint

information exhibited at Eco Products 2008

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low-carbon society. Using internationally accepted calculations, the carbon footprint of the group's global products made with amino acids and other fermented materials is being determined, and disclosure of their contribution

to environmental conservation has commenced. Beginning with carbon footprint calculations of feed-use amino acidproducts, in fiscal 2010 the company registered the data with the Carbon Footprint Pilot Program, an initiative ofJapan's Ministry of the Economy, Trade and Industry, and gained certification under Product Category Rules2.

In fiscal 2011, Ajinomoto Co., Inc. is broadening the scope of its products subject to Product Category Rules andcarbon footprint certification to include all major products made with fermentation materials. In the future, thecompany intends to provide information on how it is contributing to the environment over the entire life-cycle offermentation materials.

1. Carbon footprint represents the accumulated greenhouse gas emissions of a product calculated at the time of its release, and based on alifecycle assessment from production through disposal.2. Product Category Rules are used for calculating and labeling the carbon footprint of products and services, as determined by Japan's Ministryof the Economy, Trade and Industry.

Initiative 4: Environmental contribution of feed-use amino acids recognized by Japanese carbon credit

systems

As the Ajinomoto Group expands its feed-use aminoacids business globally, it is working to reduce CO2

emissions from production processes. Moreover, thegroup is jointly conducting feed-use amino acidsresearch on greenhouse gas reduction with certainJapanese research institutes. Results suggest that theproducts' usage can reduce nitrogen oxide (N2O)emissions, a major greenhouse gas derived from thelivestock industry.

Based on the results, a project that effectively reducesgreenhouse gases through the use of low-protein feedfortified with feed-use amino acids was certified underthe Japan Verified Emission Reduction (J-VER)1 carbonoffset credit scheme and the Domestic Credit System2 infiscal 2010. Under both of these systems, when pigfarmers participating in the project reduce greenhouse gases, they can receive credits in proportion to the amount ofCO2 emissions reductions, and then earn revenue by selling them.

The environmental advantages of feed-use amino acids have now been officially recognized in Japan with thesecertifications. The Ajinomoto Group regards this as a major breakthrough and significant result. It intends to helpfight global warming by further promoting the value of this proven technology worldwide.

1. Japan Verified Emission Reduction (J-VER) is the carbon offset credit scheme of the Japanese Ministry of the Environment. It officiallycertifies the greenhouse gas reductions achieved by businesses, which can then trade the credits and earn a return.2. The Domestic Credit System is overseen in Japan by the Ministry of Economy Trade and Industry, the Ministry of the Environment, and theMinistry of Agriculture, Forestry and Fisheries. The system promotes collaborative efforts to reduce CO2 emissions by small and medium-sizedenterprises by facilitating the transfer of funds, technologies and expertise from large companies. The verified amounts of emission reductionscan then be sold as credits.

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Reducing N2O, a greenhouse gas produced by livestock

Nitrogen compounds contained in livestock excrement become oxidized in the soil and air, and are then releasedinto the atmosphere as nitrogen oxide (N2O). N2O has a greenhouse effect about 300 times higher than that ofCO2, and its emission volume is the third highest in Japan, after CO2 and methane. Nevertheless, research hasdemonstrated that when well-balanced, low-protein animal feeds fortified with feed-use amino acids are used, theamount of nitrogen compounds in pig and chicken excrement can be reduced by between 20 and 30% comparedto commonly used livestock feed. Accordingly, the same rate of N2O generated from ensuing farming operationscan also be reduced. Given these results, feed-use amino acids can contribute in the fight to reduce globalwarming.

Click here for more information on how the Ajinomoto Group applies feed-use amino acids for effective land use

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The logo for the United Nations Decade on Biodiversity

Conserving Ecosystems and Biodiversity

Protecting Ecosystems and Biodiversity—Strategic Response to the Changing Business

Environment with the Aichi Target

At the 10th Meeting of the Conference of the Parties tothe Convention on Biological Diversity (CBD-COP 10)held in Nagoya in October 2010, participants adopted theso-called "Aichi target," which calls on the internationalcommunity to take effective and urgent action to ensurethat ecosystems are resilient by 2020, with a view torealize a world in which humankind co-existsharmoniously with nature by 2050.

This was followed by the declaration of the "United Nations Decade on Biodiversity," starting from 2011. Numerousdiscussions will be necessary to formulate concrete policies going forward; however, new business frameworks andsocial systems needed to sustain life and people's livelihoods are beginning to take shape.

The Ajinomoto Group uses a variety of living resources from around the world with the concept of "working for life."Accordingly, from early on the group began developing a business model to enable it to use living resources in asustainable manner. This has led to expectations for the Ajinomoto Group to firmly ground its business in thecommunities where it operates as it develops globally. Having adopted this important role, the group is pursuing newbusiness opportunities in the new environmental era.

Toward this end, in the Ajinomoto Group's 2011–2013 Medium-Term Environmental Conservation Plan, the group haspositioned the protection of biodiversity and sustainable usage of ecosystem services as important policies designedto contribute to the creation of a sustainable society through business activities. On this basis, the Ajinomoto Group isundertaking strategic management of business risks and opportunities.

A workshop on formulatingstrategies

The Ajinomoto Groupparticipated in the 6th ScienceCommittee meeting of theCommission for theConservation and Managementof Highly Migratory Fish Stocksin the Western and CentralPacific Ocean, held in Tonga inAugust 2010

Initiative 1: Employing the Corporate Ecosystem Services Review to formulate a business plan

Among the ecosystem services relevant to the Ajinomoto Group, living resources usedas raw materials in its main products are particularly important. Consequently, for thegroup to continue stable operations and develop business, it is necessary to effectivelyincorporate plans to secure ecosystem services in business strategies. The processinvolves determining ecosystem services that require strategic initiatives, relevantbusinesses and other activities that are being implemented, and projections to wherethey are leading. Toward this end, the Ajinomoto Group began carrying outmanagement of business risks and opportunities related to strategic raw materialsvital to its operations from fiscal 2010, on the basis of the Corporate EcosystemServices Review1 management methodology.

Fiscal 2010 began with an exhaustive examination of issues related to living resourcesand ecosystem services spanning all of the group's main business domains. From thisexamination, living resources and business fields to be given priority in managementwere determined. At present, the group is proceeding with a number of specificinitiatives for each of these vital and strategic raw materials from the standpoint ofensuring stable supplies.

A business plan was formulated by employing the Corporate Ecosystem ServicesReview methodology to examine and analyze the relationship between the group'sbusiness activities and biodiversity, and set priority measures accordingly. These taskswere not only handled by the group's environmental departments, but also includedcollaborative efforts with relevant internal departments managing operations, researchand development, procurement, and other areas, along with external experts such asspecialists, researchers, and members of NPOs.

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Labeling and returning skipjackto the ocean for researchpurposes

The business plan was completed after considerable time was devoted to onsitemeetings and strategy planning workshops to ensure that the participants shared allrelevant facts and reached consensus. The plan lays out specific business activities,their sustainability and relation to ecosystem services.

In accordance to the plan, departments mainly involved in operations, R&D, andprocurement are currently implementing concrete policies, including necessarymeasures for protecting biodiversity, which form the basis of sustainable businesses ofthe Ajinomoto Group.

The Ajinomoto Group is focusing on research activities in areas related to the supply of marine and forestryresources, in recognition of the vital importance that procurement of these resources has on both the ecosystem andits business. For marine resources, the group contributes to resource management of skipjack, a raw material usedin its main products, and works to conserve the ecosystem in areas where it cultivates and processes shrimp. Forforest ecosystems, the group is studying the creation of a framework for procuring paper and palm oil that preservesthe ecosystem. With regard to land usage, the Ajinomoto Group has commenced research activities aimed atensuring that its business sites develop in tandem with local communities and the ecosystem.

1. The Corporate Ecosystem Services Review is advocated by the World Business Council for Sustainable Development, the World ResourcesInstitute, and other organizations.

Experiments in rivers observedayu gathering around theconcrete

A wave-dissipating blockcontaining amino acids

Initiative 2: Innovating wave-dissipating blocks with environmentally active concrete

Amino acids are an essential component of life, and their functions are applied over awide range of products such as food, pharmaceuticals, cosmetics, and animal feed.With its extensive expertise on amino acids, Ajinomoto Co., Inc. saw a potentialapplication toward revitalizing aquatic environments where biodiversity is threatened.

As a starting point to test the hypothesis, research commenced in which amino acidswere mixed in concrete to produce "environmentally active concrete" that couldstimulate algae growth underwater. From 2009, Ajinomoto Co., Inc. has beendeveloping the concrete in collaboration with Nikken Kogaku Co., Ltd., a companyrenowned for wave-dissipating blocks, and the University of Tokushima's Institute ofTechnology and Science, which is headed by Professor Yasunori Kozuki.

Environmentally active concrete is made by mixing concrete with amino acids, whichare slowly released when placed underwater. Experiments conducted thus far havedemonstrated that arginine is the most compatible kind of amino acid for mixing withconcrete, and that microalgae grows on or around this concrete at a rate of 5–10 timesthat of ordinary concrete. The research also found that the concrete attracted ayu (aJapanese river trout), abalone and sea cucumbers in seawater. Experiments are beingcarried out at approximately 20 ocean and river locations in cooperation with localcommunities and fisheries cooperatives.

Looking to broaden the applications of the environmentally active concrete, the company is consigning outsideexperts to test its durability as a construction material and determine how and at what speed the amino acids arereleased. Recognizing that environmentally active concrete may be compatible for disaster prevention functions andthe revival of aquatic ecosystems, the Ajinomoto Group aims to establish applications of this innovative productworldwide.

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Formulating CSR Procurement Guidelines

The Great East Japan Earthquake caused damage to suppliers located in the country's northeastern Tohoku region,disrupting supply chains and, consequently, severely affecting the business of many companies. Up until then, supplychain management in the Japanese food industry placed a premium on guaranteeing food safety and dependability.To ensure business continuity, however, people newly recognized that it is also essential to consider other kinds ofrisks.

The international community has witnessed the logging of tropical rain forests, a major cause of global warming, andis also exposed to risks related to labor and human rights issues such as child labor. Accordingly, customers ofAjinomoto Co., Inc. such as large food manufacturing companies in Europe and North America have been stepping updemands on the company and other suppliers regarding matters of corporate social responsibility. In response, thecompany is stressing the importance of improvements and initiatives to address environmental issues includingecosystem and biodiversity conservation, and social issues such as human rights across the entire supply chain.

The group's approach to procurement is laid out in the Ajinomoto Group Basic Purchasing Policy. CSR procurementguidelines are being formulated to clarify standards to be observed and put into practice by suppliers. The group ismeeting with suppliers to discuss the guidelines in fiscal 2011, and is working toward putting them into effectbeginning from fiscal 2012.

Click here for more details: The Ajinomoto Group Basic Purchasing Policy

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Contributing to the Recycling of Resources

Recycling Resources and Relevant Initiatives

Food, water, and energy are indispensable for life on Earth. To ensure that life continues, it is essential to use theseprecious resources efficiently, actively pursue identifying alternatives, and recycle whenever possible.

The Ajinomoto Group is striving to more efficiently use raw materials, sub raw materials, and other resources. In thisway, the group will work towards using natural resources in a sustainable manner by developing a resourcerecycling-oriented business.

Click here for more details: Initiatives and progress toward zero emissions

Container and Packaging Recycling

Ajinomoto Co., Inc. formulated its Containers and Packaging 3R Promotion Plan in April 2007, with the goal toreduce, reuse, and recycle packaging waste in accordance with Japan's Act on the Promotion of Sorted Collection andRecycling of Containers and Packaging. To help ensure that the goals of the plan are achieved, the Containers andPackaging 3R Promotion Committee holds meetings twice every fiscal year, where representatives of divisionsrelated to packaging regularly check interim results, the plan's progress and share information.

Initiative 1: Package labeling to show environmentally friendly products and services

The Ajinomoto Group created the "Aji na Eco" mark1 toeffectively display its eco-friendly products and servicesamong consumers. The mark appeared on productpackaging from the autumn of 2010, and has beenextended to other items the group has developed to bemore ecological, such as refill containers and packagingthat uses recycle paper or does not include food traysinside.

The mark is also displayed on new shipping boxes for thePure Select series of mayonnaise products introduced infiscal 2011. Featuring a design that eliminates internalcompartments, the new boxes will annually reduce boththe amount of cardboard used and the equivalentamount of CO2 emissions by approximately 30%compared to previous shipping boxes. Additionally, the"Aji na Eco" mark is printed on the Ajinomoto Group'snew gift boxes made of recyclable cardboard and free ofcoating agents.

Whether products, services, packaging or shippingboxes, the mark informs customers and users of theirenvironmentally conscious design and materials. TheAjinomoto Group plans to put forward more measures todevelop environmentally friendly product packaging andlabeling in the future.

1. The "Aji na Eco" mark is used to clearly label the group's productsand services that meet standards for environmentally friendliness. Itis a registered trademark of Ajinomoto Co., Inc.

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BDN and coagulating sedimentationequipment installed at Ajinomoto VietnamCo., Ltd.

Initiative 2: Reducing the number of food trays included inside frozen food packages

The number of food trays included inside packages of frozen food productssold by Ajinomoto Frozen Foods Co., Inc. (FFA) is approximately 185 millionper year, and possibly more than 1.5 billion1 trays are used by the Japanesefrozen food industry as a whole. To reduce this number, FFA began selling itslarge packages of Wakadori Karaage fried chicken without trays from 1997,in contrast to the ongoing standard practice of including them inside frozenfried chicken packages.

Customers have demonstrated their appreciation by making this product thetop seller among frozen fried chicken products for 10 consecutive years. FFAreduced the number of trays it would have used by about 37 million per year after selling the product without trays.From autumn 2010, the product was labeled with the "Aji na Eco" mark to more effectively communicate thisinitiative to customers.

1. The estimated numbers of trays used applies to retail products sold in fiscal 2010.

Initiatives to Use Recycled Water

Recognizing the scarcity of fresh water resources as a global issue, the Ajinomoto Group is working to reduce waterusage and the amount discharged in accordance with the Ajinomoto Group Zero Emissions Plan. Further reductions bypromoting lower in-house water usage and expanding research on supply chain water utilization will be pursued.

Click here for more details: Zero emission goals and fiscal 2010 results

Initiative 3: Reducing water usage and employing advanced wastewater treatment facilities

Large quantities of water are required in the fermentation process forproducing amino acids, the core component of the group's business.Accordingly, the group generally selects sites for its amino acid fermentationplants near abundant water sources.

Nevertheless, the Ajinomoto Group considers the conservation of water to bea crucial issue in its future vision. Therefore, as priority tasks, efforts arebeing made to reduce water usage as much as possible and to purify thewater before its discharge into the natural environment.

The Ajinomoto Group discharged approximately 200 million tonnes of waterin fiscal 2002, but reduced this amount to less than 100 million tonnes byfiscal 2010. In the same period, the volume of discharged water per tonne ofproducts produced was reduced by 77%, from 160 tonnes to 38 tonnes, through the reuse of cooling water and otherinitiatives.

The group has also set targets to reduce the levels of biochemical oxygen demand (BOD) and nitrogen in dischargedwater; 20 out of 39 designated production plants achieved target levels in fiscal 2010. Plants that fell short ofreaching them will continue to pursue targets laid out in the new Ajinomoto Group Zero Emissions Plan commencingin fiscal 2011.

To further reduce BOD and nitrogen levels, the group recognizes that it will be necessary to implement measures thattarget water sources and promote bio-cycles, as well as to introduce sophisticated wastewater treatment facilitiessuch as biological denitrification (BDN) equipment. Accordingly, the Ajinomoto Group is proceeding to install advancedwastewater treatment equipment at its main production plants around the world. For example, Ajinomoto Co., Inc. isupgrading wastewater treatment facilities at its Kawasaki Plant, a main production plant in Japan, with the plan toimplement the latest wastewater treatment technologies in 2012.

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Developing Technologies to Manufacture Materials Using Biomass

The Ajinomoto Group is applying advanced fermentation technologies in exploring production methods tomanufacture new biomaterials as alternatives to materials derived from natural resources. Successfullycircumventing the use of oil resources and other precious natural resources will enable the group to contribute to thecreation of a sustainable recycling-oriented society.

Initiative 4: New materials from biotechnology for saving and creating energy in production

In the context of rising prices for crude oil along with calls for reductions of greenhouse gas emissions around theworld, expectations for technological developments that enable feasible alternatives to petrochemical-based productsare growing.

Ajinomoto Co., Inc. is using biomass as raw materials to produce amino acids and other products. Advancedtechnologies are employed group-wide to cultivate bacteria for use in fermentation processes. Through theapplication of these technologies, the company aims to establish production methods that use biomass to producechemical compounds that are synthesized from petroleum as well as materials that are laborious to extract fromnatural resources. By successfully circumventing the use of oil resources and other precious natural resources, theAjinomoto Group intends to contribute to the creation of a sustainable recycling-oriented society.

Furthermore, production methods for amino acids with a lower environmental impact are being pursued by replacingpetrochemical synthesis with enzymatic reaction techniques using proteins.

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