Environmental Accounting
Semiconductor & Storage Products Company Group engages in environmental accounting that aggregates and analyzes the investment amount and expenses relating to environmental preservation as a tool to promote environmental management.
We calculate the actual economic effects from reduction of costs such as electricity and waste disposal, and we estimate the tangible economic effects from reduction of environmental impact on the air, water, and soil, prevention of potential future risks, and by utilizing data in our environmental management system. We refer to the "Environmental Accounting Guideline 2005" issued by Japan's Ministry of the Environment for classification of the environmental preservation expenses and calculation criteria. The benefits are calculated using quantitative data of environmental impact reduction benefits to deduce monetary value.
- Environmental preservation costs of the former Semiconductor Company Group
- Environmental preservation effects of the former Semiconductor Company Group
- Environmental preservation costs of the former Storage Products Company
- Environmental preservation effects of the former Storage Products Company
Result of the aggregation of environmental accounting for the former Semiconductor Company Group (achievements in FY 2010)
(1) Environmental preservation costs
The environmental preservation costs for FY 2010 were ¥20.6 billion. Most of the costs were incurred in the prevention of pollution to the atmosphere, water and soil, measures addressing global warming, resource recycling and R&D. The amount of environmental investment in FY 2010 decreased by ¥8.3 billion in relation to the budget, but we will continue investment in the future.
| Classification | Content | FY 2010 result | FY 2010 result (Difference from budget) |
FY 2011 plan | ||||
|---|---|---|---|---|---|---|---|---|
| Investment | Costs | Investment | Costs | Budget for Investment | Budget for Costs | |||
| Costs for manufacturing process | Pollution prevention cost | Prevention of air, water, soil pollution, etc. |
3,157 | 13,640 | -8,225 | -5,530 | 2,139 | 12,432 |
| Global environmental protection cost |
Reduction of practice that can contribute to global warming, etc. |
244 | 1,015 | -256 | -102 | 173 | 732 | |
| Recovery and recycling costs |
Effective use of resources, reduction of wastes, etc. |
267 | 2,171 | 192 | 41 | 151 | 2,713 | |
| Subtotal | 3,668 | 16,826 | -8,289 | -5,590 | 2,463 | 15,876 | ||
| Costs for business for upstream/ downstream |
Green procurement, recycling, etc. | 2 | 442 | 2 | 41 | 3 | 374 | |
| Management activity costs | Environmental education, maintenance of EMS, planning of greenery at factories, etc. |
48 | 1,425 | 48 | -62 | 0 | 1,462 | |
| Research & development costs | Development of products that take into account environmental impact, etc. |
12 | 1,787 | -43 | 1,156 | 31 | 1,992 | |
| Social activity costs | Support of local environmental activities, contributions, etc. |
0 | 6 | 0 | -5 | 0 | 7 | |
| Environmental remediation costs | Recovery from pollution, etc. | 0 | 99 | -15 | -15 | 0 | 101 | |
| Total | 3,731 | 20,585 | -8296 | -4,474 | 2,497 | 19,812 | ||
- The values in the first decimal place have been rounded off
(2) Environmental preservation effects
On the other hand, the actual benefits of environmental preservation in FY 2010 produced a total of ¥5.9 billion: ¥1.7 billion of this was derived from a reduction of energy costs due to production fluctuation, and ¥4.2 billion was derived from asset sales.
The figure for the tangible benefit was negative because NOx emissions increased due to boiler operations in some of the manufacturing plants.
| Classification | Content | Benefits |
|---|---|---|
| Actual benefits *1 | Benefits that can be directly converted into monetary value, such as reduced charges for electricity, water, etc. | 5,915 |
| Tangible benefits *2 | Benefits concerning reduction in environmental impacts expressed in monetary value | -2,503 |
| Risk prevention benefits *3 | The extent to which risks are reduced after the investment compared with before the investment is calculated | 25 |
| Total | 3,437 |
Result of the aggregation of the environmental accounts of the former Storage Products Company
(achievements in FY 2010)
(1) Environmental preservation costs
The environmental preservation costs for FY 2010 were ¥900 million; we switched from a policy for energy conservation investment planned for FY 2010 to a measurement that does not accompany investment, and the amount decreased in comparison with the budget.
| Classification | Content | FY 2010 result | FY 2010 result (Difference from budget) |
FY 2011 plan | ||||
|---|---|---|---|---|---|---|---|---|
| Investment | Costs | Investment | Costs | Budget for Investment | Budget for Costs | |||
| Costs for manufacturing process | Pollution prevention cost | Prevention of air, water, soil pollution, etc. |
35 | 49 | 35 | 37 | 0 | 43 |
| Global environmental protection cost |
Reduction of practice that can contribute to global warming, etc. |
0 | 5 | -206 | 4 | 524 | 5 | |
| Recovery and recycling costs |
Effective use of resources, reduction of wastes, etc. |
0 | 41 | 0 | -16 | 0 | 42 | |
| Subtotal | 35 | 95 | -171 | 25 | 524 | 90 | ||
| Costs for business for upstream/ downstream |
Green procurement, recycling, etc. | 0 | 2 | 0 | 1 | 0 | 1 | |
| Management activity costs | Environmental education, maintenance of EMS, planning of greenery at factories, etc. |
0 | 52 | 0 | 46 | 0 | 36 | |
| Research & development costs | Development of products that take into account environmental impact, etc. |
0 | 746 | 0 | 41 | 0 | 746 | |
| Social activity costs | Support of local environmental activities, contributions, etc. |
0 | 12 | 0 | 11 | 0 | 12 | |
| Environmental remediation costs | Recovery from pollution, etc. | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | 35 | 908 | -171 | 124 | 524 | 886 | ||
- The values in the first decimal place have been rounded off
(2) Environmental preservation effects
On the other hand, the result of environmental preservation for FY 2010 was a positive ¥6.1 billion. The result of actual benefit was a negative ¥103 million due to an increase of energy and water usage by Toshiba Information Equipment (Philippines), Inc.
| Classification | Content | Benefits |
|---|---|---|
| Actual benefits *1 | Benefits that can be directly converted into monetary value, such as reduced charges for electricity, water, etc. | -103 |
| Tangible benefits *2 | Benefits concerning reduction in environmental impacts expressed in monetary value |
6,225 |
| Risk prevention benefits *3 | The extent to which risks are reduced after the investment compared with before the investment is calculated | 0 |
| Total | 6,122 | |
- (For comparison with the result in FY 2009, the results of Toshiba Storage Device (Thailand) Co., Ltd. and Toshiba Storage Device (Philippines), Inc. that joined the Toshiba Group in the second half of FY 2009 are excluded from the aggregation.)
- Basis for calculation
- *1 Total of the monetary value of the reductions in electricity charges, costs of waste disposal, etc. compared with the previous year and the proceeds from sale of items with value
- *2 Monetary values were calculated by giving each substance, calculated in terms of cadmium, a weighting based on environmental standards and ACGIH-TLV (allowable concentration of each substance (Threshold Limit Values) as determined by the American Conference of Governmental Industrial Hygienists) and multiplying the result by the amount of compensation in the case of cadmium pollution. Reduction in environmental impact on atmosphere, water and soil is indicated quantitatively and the environmental impact reduction volumes are compared with the previous year's results, and also reduction of environmental impact is calculated in terms of monetary value to enable comparison of various calculations of environmental impact on the same basis.
- *3 Benefits of investment in environmental structures or double containment such as dikes and double piping, for the purpose of preventing pollution of soil and groundwater, are evaluated as benefits to prevent risks that might otherwise occur in the future. Risk prevention benefits for each capital investment item are calculated according to the following formula:
Risk prevention benefits = Quantity of chemical substances stored x Standard amount (monetary value) required for remediation and restoration x Occurrence coefficient, where the standard amount required for remediation and restoration and the occurrence coefficient are values unique to Toshiba. Risk of occurrence of leakage of chemical substances etc. is evaluated.