Occupational Safety and Health

In 2006, the Yokogawa Group established the "Yokogawa Group Health and Safety Policy" and began implementing the Occupational Safety and Health Management System (OSHMS). Since 2007, the Yokogawa Group has implemented the OSHMS in each of its companies to promote a higher level of safety and health by making continual improvements through risk assessment and other methods.

• Yokogawa Group Safety and Health Policy Statement

Recognizing that "safety and health are a basic responsibility of the management," the Yokogawa Group implements OSHMS to ensure the safety and health of all of its employees and its sub-contractors. Improvements are made in phases, with constant assessments to eliminate or minimize potential risks. Regular evaluations and reviews of the activities are also done through audits. The effectiveness of the system has improved by combining conventional activities, such as safety patrols, and countermeasures against occupational incidences and near misses.

Sixty-four Yokogawa Group companies in and outside Japan share the same safety and health objectives for all workers, including subcontractors. Moreover, sixteen Yokogawa Group companies have acquired certifications in compliance with OHSAS18001*1, which is internationally recognized.

• *1. Occupational Health and Safety Assessment Series. A certification standard for Occupational Safety and Health Management System.

• 2010 Yokogawa Group Safety and Health Objective

To ensure that the "Yokogawa Group Safety and Health Policy" is adhered to across the entire Yokogawa Group, the "Safety and Health Guide Book," which contains basic information and day-to-day rules regarding safety and health, has been created and distributed to all staff and engineers at every Yokogawa Group company. To maintain and improve all levels of activities throughout, persons in charge, committee members and newly appointed personnel are educated through safety and health committee workshops, as well as on-site safety training at customer plants and factories.

Since the implementation of OSHMS in 2007, the Yokogawa Group has compiled quarterly data of all occupational incidents and accidents at its subsidiaries in and outside Japan. The results are used to improve operations. The number of days lost due to accidents has decreased by 15%, although the total recordable incidents in 2009 have risen marginally since 2008.

FR=(No. of workers having occupational accident with lost days / total working hours) × 1,000,000

In August 2009, at the request of the Japan Industrial Safety and Health Association, Yokogawa Electric met with a group of officials from Vietnam, including the Vice Minister of Labor, War Invalids and Social Affairs. The group visited Japan to conduct a research into laws and business activities related to occupational safety and health. In visiting Yokogawa Electric, they collected information regarding our safety and health system and activities.

Meeting with Officials from Vietnam

On the day of the visit, the group was briefed on our implementation and execution of OSHMS, educational system, and case studies of our success in improving our work environment over the years. They also visited the clinical center to observe the MRI and CT equipment that we have installed, and to exchange information regarding health management with our industrial physician. The group observed our safety and health system and activities extensively, and intently inquired into our educational and training programs, employee awareness plans, and legal basis of such programs and activities.

Afterwards, one of the visitors commented, "With the growth of the industries in Vietnam, the rate of occupational incident and accident is rising. As part of strategizing how to integrate our national safety and health laws, credential certification systems, and OH&S (Occupational Health and Safety) programs into the businesses in Vietnam, we visited Japan to conduct a research into the safety laws of Japan and the activities within its businesses. On visiting and exchanging information with Yokogawa Electric, we saw firsthand the vast differences from our country. Everything we learned will serve as a valuable reference to improve our legal system as well as to plan improved operation methods under the new system."

We will continue to actively network with other groups to mutually grow in the area of safety and health.