Envir o n m e n t a l R e p ort

Environmental Accounting
TEL uses environmental accounting in its business management to determine
the costs and benefits of its environmental activities.

Our Approach
to Environmental Accounting

Environmental Preservation Costs

Environmental accounting is a management tool used tofind the costs and benefits of a company’s environmentalactivities. TEL has implemented an environmental
accounting system to quantify the costs of its activities
that concern environmental protection.
In FY 2005, the sixth year since the introduction of ourenvironmental accounting system, we worked to further
improve the accuracy of our data on investments andexpenses for equipment needed for environmental activities. We are determined to continue initiatives to preserve
the Earth’s environment in the years to come.
Our environmental accounting complies with theEnvironmental Accounting Guidelines (2002 edition) andthe Environmental Accounting Guidebook published by
Japan’s Ministry of the Environment.

Environmental preservation costs (investments andexpenses) for FY 2005 are outlined in the tables and figures below.
The scope of coverage of the data includes TEL plants
and offices in Japan. The investment depreciations infacilities are calculated as expenses beginning with theinvestments made in FY 2000.
Breakdown of Investments

Breakdown of Expenses
Social activity
costs
2.2%

Management
activity
costs
20.8%
Upstream/
Downstream
costs
13.4%

Pollution
prevention
costs
35.4%

Globalenvironmental
costs
30.4%

Pollution prevention
costs 12.9%
Globalenvironmental
costs
1.9%
Resource
circulation
costs
17.4%

Research anddevelopment
costs
51.5%

Management
activity
costs 9.8%

Environmental Protection Costs in FY 2005

Upstream/
Downstream
costs
4.7%

Scope: All TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Amagasaki, Osaka, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2004 — March 31, 2005
(1,000 yen)Classifications of environmental costs
1. Business area costs
Itemization 1.1 Pollution prevention costs
1.2 Global environmental costs
1.3 Resource circulation costs
2. Upstream/Downstream costs
3. Management activity costs
4. Research and development costs
5. Social activity costs
6. Environmental damage costs
7. Other costs
Total

Scope of main initiatives(facilities, supplies, leases, depreciation, maintenance, etc.)
Preventing air pollution, water pollution, soil pollution, etc.
Global warming prevention, ozone layer protection, etc.
Efficient use of resources, waste reduction, etc.
Green purchasing, green procurement, etc.
Environmental education, monitoring and measuring environmental impacts, etc.
Product R&D, etc.
Planting trees and vegetation, supporting local environmental activities, information disclosure, etc.
Repairing damage to the natural environment, etc.
OtherInvestment amountExpense amount

56,21830,25925,9590
11,43917,8010000
85,458656,769
264,232
37,851
354,686
96,436200,506
1,042,573
44,33200
2,040,616

Economic Benefits of Environment Protection Activities
The results of calculations for the economic benefits of environmental protection activities are shown in the table below.The economic benefits of environmental protection activities are the only environmental accounting items covered in this report.
Economic Benefits of Environmental Protection Activities in FY 2005
Scope: TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Osaka, Amagasaki, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2004 — March 31, 2005
(1,000 yen)Classifications of environmental costs

Cost reduction

Profits

14

Benefits relating to electricity and other energy
Water-related benefits
Paper-related benefits
Resource-related benefits
Other benefits
Waste related benefits
Water and soil effluent benefits
Cost reduction subtotal
Resource-related benefits
Waste-related benefits
Profit subtotal
Grand total

TOKYO ELECTRON Environmental and Social Report 2005Details
Reduced electricity usage
Reduced water usage
Reduced paper usage
Reduced crude oil usage
Reduced waste volume
Reduced waste volume

Amount
40,796
7,478
3,990
1,516
7,594
14,513
132
5,573
87495
582
4,991