We promote "Office Clean" activities throughout the Cosmo Oil Group, specifically focused on the 3R (Reduce, Reuse, and Recycle) concept for such resources and energy as materials and lighting used daily in our offices. In fiscal 2006, we made preparations to link these activities with our "Team Minus 6%" activities.

	Results in FY2006		Medium-term targets in FY2007
	Cosmo Oil Increase/ decrease from FY2003	Affiliates1 Increase/ decrease from FY2004	Cosmo Oil Increase/ decrease from FY2003	Affiliates1 Increase/ decrease from FY2004	Consolidated2 Increase/ decrease from base year
Reduction of copy paper	-10%	2%	-16%	-14%	-15%
Reduction of company car fuel consumption	-15%	-9%	-18%	-12%	-14%
Reduction of office electricity consumption	-11%	-3%	-10%	-11%	-10%

Notes 1. The scope of fiscal 2006 affiliated company results was expanded to include additional affiliated companies, and the base year results for fiscal 2004 include estimates. 2. Since fiscal 2003 is the base year for Cosmo Oil and fiscal 2004 is the base year for affiliates, consolidated targets are for respective base years.

"Office Clean Activities" Involving All Personnel

		Results in FY 2003		Results in FY 2004
		Cosmo Oil	Affiliates	Cosmo Oil	Affiliates
				Increase / decrease from FY2003 (%)	Including estimates
Copy paper	1,000 pieces	17,361	-	15,910	19,007
	%	-	-	-8%	-
Fuel consumption of company cars	kl	355	-	309	681
	%	-	-	-13%	-
Electricity consumption in the offices	1,000 kWh	3,367	-	3,099	2,379
	%	-	-	-8%	-

		Results in FY 2006		Target in FY 2007
		Cosmo Oil	Affiliates	Cosmo Oil	Affiliates	Consolidated
		Increase / decrease from FY2003 (%)	Increase / decrease from FY2004 (%)	Increase / decrease from FY2003 (%)	Increase / decrease from FY2004 (%)	Increase/ decrease vs. base year (%)
Copy paper	1,000 pieces	15,583	19,339	14,583	16,346	30,929
	%	-10%	2%	-16%	-14%	-15%
Fuel consumption of company cars	kl	303	622	291	599	890
	%	-15%	-9%	-18%	-12%	-14%
Electricity consumption in the offices	1,000 kWh	2,997	2,309	3,030	2,117	5,147
	%	-11%	-3%	-10%	-11%	-10%

In October 2005, we began participating in the government-sponsored "Team Minus 6%" activities to prevent global warming. From 2007, the entire Cosmo Oil Group has been actively undertaking these activities.
As key categories, we are reducing consumption of copy paper, fuel for company cars, and electricity as well as promoting green purchasing of designated consumables (such office consumables as OA paper and writing utensils), while also establishing numerical targets for each category. We monitor the monthly results for paper, fuel, and electricity reductions, and for consumables, we hold reviews every six months to determine strict adherence to green purchasing standards. We are also linking our green purchasing of consumables with our "Office Clean" initiatives as we strengthen our overall activities in this area. We also establish guidelines and apply green purchasing standards for printed documents and exhibition materials required for communications activities.
Additionally, information on the progress of these activities is disseminated through COSMO WISE PLACE, the Company's internal portal site, as well as the Company's internal newsletter. In the future as well, we will make efforts to ensure that each employee maintains an awareness of the importance of reducing greenhouse gas emissions as well as using resources with care not only at business sites but also throughout their daily lives.

*“Team Minus 6%" is a national project promoted by the Japanese government to achieve the 6% reduction target in Japan's greenhouse gas emissions as established under the Kyoto Protocol. The Cosmo Oil Group has participated since October 2005.

Green Purchasing With regard to green purchasing, we have established a set of green purchasing criteria covering a wide range of product categories that not only include general office supplies but also encompass catalysts, containers, and building materials. In fiscal 2007, "Team Minus 6%" activities will drive our efforts to achieve our target of a 100% green purchasing rate for consumables. Furthermore, we will establish new green purchasing criteria for communications activities covering all departments that purchase printed documents or exhibition materials, as we progress with green procurement for these materials along with the undertaking of communications activities.

Green Suppliers The Cosmo Oil Group asks suppliers to abide by our environmental management policies and establishes a set of criteria for green suppliers to ensure that suppliers employ environment-conscious management practices. Moreover, we give priority to conducting business with suppliers that proactively promote activities that contribute to the environment. Also, for those partners not yet meeting relevant criteria, we take a concentrated, bottom-up approach that encourages these partners to become green suppliers.

The Cosmo Oil Group works to promote an understanding of its environmental efforts and raise the level of trust among the residents of local communities. In fiscal 2006, the Yokkaichi Refinery invited 88 fifth graders from a local elementary school to its facilities for a new activity carried out from the perspective of "the environment and the next generation. "Together with a tour of the refinery, a lecture and demonstration promoted a deeper understanding of such issues as mass consumption of oil and environmental problems and enabled the students to learn about the importance of conserving oil. We are also considering carrying out activities that integrate energy and environmental education at our other refineries as well.

From fiscal 2006, we have promoted improvements at service stations with the objective of operating "service stations that are friendly to people, society, and the Earth." Specifically, we are promoting these activities from three perspectives, namely, establishing barrier-free stations (friendly to people); cooperating with local communities in times of disaster (friendly to society); and preserving the environment from the perspective of facilities and various measures (friendly to the Earth). Regarding environmental preservation, we have introduced energy-saving lighting and car wash facilities that utilize recycled wastewater. Additional efforts include raising environmental awareness among service station staff.