CORPORATE ANNOUNCEMENT

24 April, 2003

MOL Sets FY2003 Targets for Environmental Management System

TOKYO – Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced the company’s environmental targets for fiscal year 2003 (ending March 31, 2004) under the MOL Environmental Management System (MOL EMS 21).

MOL EMS 21 also includes new targets focusing on the adoption of new environment-friendly technologies, encouraging social contributions, and so on. MOL established this year’s EMS 21 targets after reviewing its environmental performance for FY2002.

MOL’s Environmental Policy Statement, establishing environmental protection action plans, was issued in 2000, and the company introduced MOL EMS 21 based on the plan-do-check-action (PDCA) cycle in April 2001. In February 2003, MOL acquired ISO 14001 certification for its environmental protection activities.

Review of FY2002

As a result of various actions taken, MOL achieved the majority of its environmental goals for FY2002, as shown below, . MOL EMS 21 was recognized as effective in the process of ISO14001 certification. Following is an overview of the company’s environmental performance (figures were compared on the basis of results between April 2002 and February 2003) :

• MOL replaced anti-fouling paints containing tributyl tin (TBT) with tin-free (TF) coatings on 26 MOL-managed vessels during FY2002, exceeding the target of 25.
• CO2/NOx emissions from vessels per unit load were reduced by 0.2% during FY 2002 compared to the previous year.
• SOx emissions from vessels per unit load were reduced by 6.3% from the previous year, as a result of our aggressive efforts to use low sulfur content fuel.
• MOL replaced CFC refrigerants with R-134a, which has an ozone depletion potential (ODP) of zero, on 68% of its refrigerated containers. This was a great leap forward towards its final target of total replacement within FY2003.
• The company achieved a 9% reduction of garbage and waste at the head office, though volume of the electricity use at the head office increased by 2% from the previous year. Paper use at the head office was reduced by 3%. The ratio of green purchasing for office supplies rose to 82%, while use of recycled papers exceeded 90%.

FY2003 Targets

MOL set the FY2003 targets as below based on the FY2002 achievements. The company implements various concrete measures meeting each target to achieve it.

1. Safe navigation
   • Eliminate serious marine accidents including oil spills
2. Reduction of air pollution
   • CO2 emission from vessels – global warming
   • Reduce CO2/NOx emissions by 2% per unit load from FY2002 in 2 years
   • SOx emission from vessels – acid rain
   • Reduce SOx emissions per unit load
   • Chlorofluorocarbons – destruction of ozone layer
     • (1) Replace R-12 used in refrigerated containers with R-134a
     • (2) Use R-404a in refrigeration equipment and air conditioning systems in all new vessels, and
       also continue study of new environment-friendly refrigerants
   • Dioxin
     • Reduce emissions of dioxin from vessels
3. Prevention of marine pollution
   • Anti-fouling paints – environmental hormones
     • Replace TBT paints with TF coatings on 25 MOL-managed vessels drydocking during FY2003,
       ahead of regulations
   • Ballast water - harmful aquatic organisms or disease-causing microbes moved from one region to another
     • (1) Continue to develop new technology to make ballast water harmless
     • (2) Promptly notify parties of new rules
   • Adopt double-hull structure for tankers
     • Replace single-hull tankers with five newly built double-hull tankers in FY2003
   • Proper discharge of bilge water
     • Continue to adopt proper bilge water treatment system on all MOL-operated vessels and some
       chartered newly built ships
4. Adoption of new environment-friendly technologies
   • Adopt technologies to reduce wind resistance
     • Five new-type car carriers with reduced wind resistance will be launched in FY2003
   • Place fuel tanks to reduce risk of oil spills
     • 7 new-type containerships with partitioned walls between the cargo space for fuel tanks will be
       launched in FY2003
   • Reduce use of cylinder lubricating oil
     • Aggressively adopt systems to reduce the use of cylinder lubricating oils in containerships,
       VLCCs, car carriers, and other vessels
5. Environmental protection initiatives at the head office
   • Paper
     • Reduce paper use at the head office by 5% from FY2002 in 3 years
   • Electricity
     • Reduce electricity use at the head office by 3% from FY2002 in 3 years
   • Garbage/waste
     • Reduce total waste volume generated at the head office, and increase recycling ratio of paper
   • Preferred green purchasing
     • Continue to work on green purchasing of office equipment and stationery
6. Environmental education (employee education)
   • Educate employees through training programs and periodic information
7. Social contributions
   • (1) Establish Corporate Social Responsibility (CSR) Subcommittee to examine future programs
   • (2) Continue to implement marine observation surveys (XBT monitoring, observation of aerosol
     density in the air, observation of CO2 in the air and under the sea)
   • (3) Participate in environmental volunteer activities
8. Groupwide environmental activities
   • Enhance groupwide activities for environmental protection in 36 companies

For further information, please contact:
 
    Mitsui O.S.K. Lines, Ltd.
    Technical Division
    Environment and Technology Group
    Keiichi Tanosaki, General Manager
    Tel: 81-3-3587-7063 Fax: 03-3587-7798
    E-mail: redmo@mail.mol.co.jp