Environment In May 2002, Fuji Heavy Industries Ltd. formulated its new voluntary environmental plan, the “FHI Environmental Conservation Program” (fiscal 2003 to fiscal 2007), to promote activities aimed at reducing the burden on the environment at every stage of business—from product development to procurement, production, use, and disposal. In addition, the Group as a whole has also begun to address this issue. Following the Gunma, Saitama and Utsunomiya Manufacturing divisions, which have all been evaluated and maintain ISO 14001 environmental certification, both the corporate headquarters and Tokyo office commenced activities to obtain ISO 14001 certifica- tion in April 2003. Furthermore, aside from this kind of external environmental audit, the Company has introduced its own internal environmental risk assessment and environmental performance evaluation system to minimize environmental risks, and to take pollution prevention and activities to conserve the environment advancing to the next level. In the fiscal year ending March 31, 2003, the environmental costs were ¥26,017 million (¥25,378 million in the previous fiscal year) and the economic effects were ¥1,226 million (¥976 million in the previous fiscal year). During the fiscal year under review, FHI improved its rank in the Nihon Keizai Shimbun Inc.’s Eco-Oriented Business survey. In the corporate environmental ranking announced in the  Nihon Keizai Shimbun newspaper on December 10, 2002, FHI ranked 64th out of 703 manufacturers and 4th out of 11 automakers, a noteworthy improvement from the prior fiscal year, when FHI ranked 103rd out of 820 manufacturers and 8th out of 11 automakers. In fiscal 2004, the Company will continue to strive to further improve its ranking. FHI has published an environmental report every year since fiscal 2000, including the fiscal 2003 edition.  As a good corporate citizen, FHI wishes to be a part of and prosper together with the communities and surrounding regions where our plants carry out their daily manufacturing operations. For this reason, to contribute to the improvement of society, we are conducting ongoing cleanup activities at all manufacturing divisions, interacting and initiating dialogues with the people of each region in which the Company operates, and making efforts, contributions, and support to coexist in harmony. We are also actively taking part in various eco-friendly events, including the Low Emission Vehicle Fair.  FHI is working to ensure the safety of all employees and to create a working environment that is both safe and comfortable. To completely eliminate occupational hazards, the Company con- ducts ongoing measures to improve the working environment, activities to prevent traffic accidents, programs to optimally assure employees’ physical and mental health, and other initiatives. In Group affiliated companies, FHI has been holding an Environmental Problem Meeting periodically with seven affiliated companies whose manufacturing or transporting business greatly impact the environment since 1999. Furthermore, in fiscal 2003, the Domestic Affiliated Companies Subcommittee under the Production Environment Committee, one of the expert committees of the Corporate Environment Committee, started offering guid- ance and support in reducing the environmental burden of all Group companies. In addition, Chiba Subaru Inc., an authorized Subaru dealership, obtained ISO 14001 certification in March 2003.  In fiscal 2003, to enhance cooperation in environmental protec- tion, the Company established the North American Environment Committee—composed of FHI’s North American affiliates (SIA, SOA, SCI, SRD, and RMI)—as a part of the Corporate Environment Committee.*  18 FUJI HEAVY INDUSTRIES LTD. Environmental Management 1. Environmental Audit 2. Environmental Accounting 3. Corporate Environment Management Survey 4. Environmental Report Social Action Programs  Health and Safety Group Activities 1. Domestic 2. Overseas * At FHI, the Corporate Environment Committee is the highest committee related to environ- mental protection.