Fiscal 2010 was the inaugural year of our current three-year midterm management plan, "GEAR UP! MOL," which adopts "enhance safe operation" and "environmental strategy" as overall strategic goals of MOL under the main theme of "Challenge to create new growth." This plan marks the first time that MOL has set medium-term policies and targets for CSR. In fiscal 2010, the company worked to achieve its single-year targets based on these medium-term policies and targets.

As a result of these efforts, we achieved all of our targets across a broad range of fields, from compliance and accountability to employee health and social contribution activities. We also achieved much in terms of safe operation, including tough numerical targets that we set in accordance with our policy of making our performance visible. That said, in May 2010, there was a marine accident involving an MOL-owned iron ore carrier. Because of this accident, we unfortunately did not achieve the "four zeroes"-an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents,
and cargo damage. We acted immediately to design and implement countermeasures, however.

In the area of environmental preservation, we boiled our environmental strategy down into specific targets. And we produced results. For instance, we created and implemented a roadmap for our Senpaku ISHIN project, thoroughly practiced ECO SAILING, enhanced initiatives by MOL Group companies, and raised awareness among employees with regard to biodiversity. Among our accomplishments in fiscal 2010, we reduced CO2 emissions per ton-mile (on a non-consolidated basis) by 9.9% versus our goal of a 1% reduction compared with fiscal 2009. One reason for this much larger reduction was a rebound in trade volume in step with economic recovery. But I also put it down to initiatives implemented to date such as the aforementioned Senpaku ISHIN project, greater use of slow steaming and the introduction of larger vessels.

In June 2011, MOL became the first company in the ocean shipping industry to acquire the "DBJ Environmental Ratings" from the Development Bank of Japan Inc. (DBJ). MOL received the highest rating from DBJ, which cited MOL's "particularly forward-looking approaches to environmental consciousness."

Having achieved our goals in fiscal 2010, we have set new goals for fiscal 2011. In addition to refining environmental activities, we are determined to achieve the "four zeroes" in terms of safe operation. Furthermore, using the results of a questionnaire sent to overseas offices concerning the UN Global Compact, we will also work to embed CSR in our organization worldwide. By repeating the PDCA cycle as we have been doing, we aim to achieve our medium-term targets and earn recognition from our stakeholders. We are convinced that this will enable us to continuously grow with society.