Environment, Health and Safety Management

Environmental Accounting
We are accurately determining the costs and benefits of environmental activities
and using this knowledge to better manage the company.

Stance on Environmental Accounting

Environmental Preservation Costs

Environmental accounting is a management tool that helps todetermine the costs and benefits of a company's environmental ac-

The costs of environmental preservation (investments and expenses) for fiscal 2001 can be seen in the table below.

tivities. At TEL we have introduced an environmental accounting sys-Data was collected for TEL facilities in Japan. Depreciation on

tem to determine quantitatively the costs of the environmental as-investments in facilities is calculated as an expense beginning withpects of our business, and we are using this information to guidethe investments made in fiscal 1999.

corporate activities.

In the environmental accounting for fiscal 2000, theFiscal 2001 is the third year since the introduction of the envir-"upstream/downstream costs" primarily covered office facilities, andonmental accounting system, and we have made greater efforts thisonly a portion of products were covered under research and develop-year to improve the accuracy of information about investments andment costs. As a result, a complete assessment was not possible

environmental activity expenses, as compared to fiscal 1999 (a trial

during that year. For fiscal 2001 however, we attempted to includeyear) and fiscal 2000 (when we worked to expand the range of data

all facilities in Japan in the calculations, as well as all environmental

collected). Our aim for future years is to make our environmental ac-costs and cost categories. As a result of this more comprehensive

tivities sustainable.

approach, the research and development costs calculated for fiscal

Our environmental accounting complies with the Environmental

2001 grew considerably, to 1.985 billion yen.

Accounting Guidelines (2002 Edition) and Environmental Accounting
Guidebook from Japan's Ministry of the Environment.

TEL's Environmental Preservation Costs in Fiscal 2001
Locations covered: All TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Yamanashi [Hosaka, Fujii], Osaka, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2001 to March 31, 2002
Units: Million yen
Classifications of Environmental Costs

Details of main initiatives(facilities, supplies, leases, depreciation, maintenance, etc.)

1. Business area cost
Itemization

Expense amount

91.4

774.1

1.1 Pollution prevention costs

Air pollution, water pollution, soil contamination, etc.

19.0

126.1

1.2 Global environmental costs

Climate change prevention, ozone layer depletion prevention, etc.

44.2

67.6

1.3 Resource circulation costs

Efficient use of resources, waste reduction, etc.

28.1

580.3

2. Upstream/downstream costs

Green purchasing, green procurement, etc.

0.0

72.63. Management activity costs

Environmental education, monitoring and measuring
environmental impacts, etc.

0.0

411.0

4. Research and development costs

Product R&D, etc.

0.0

1,985.0

5. Social activity costs

Planting trees and vegetation, supporting local environmental
activities, information provision, etc.

0.0

42.9

6. Environmental damage costs

Repairing damage to the natural environment, etc.

0.0

0.0

7. Other activities

other0.0

0.0

91.4

3,285.8

Total

23

Investment amountTOKYO ELECTRONENVIRONMENTAL REPORT 2002

Major activities

Effects of Environmental Preservation Activities

Below are several examples of the TEL's major activities.

The results of calculations of economic effects relating to environmental preservation activities are shown in the table below.
We consider fiscal 2001 to be a trial for efforts to determine theBusiness area costs
Installation of abatement equipment, wastewater neutralizationequipment maintenance expenses, upgrades to prevent oil spills,etc.
Installation of inverters for lighting, installation of timers to control
Global environmental costs lighting and air conditioning, installation of equipment for removingchlorofluorocarbons, etc.
Maintenance of organic waste disposal equipment, expenses inResource circulation costs volved in reducing and disposing of waste, recycling of liquidwastes, etc.

Itemization

Pollution prevention costs

effects and benefits of environment preservation activities. The economic effects of these activities were calculated for four of the TELGroup plants in Japan: Tohoku, Miyagi, Yamanashi (Hosaka and Fujii)
and Saga.
Concerning categories of environmental accounting, this report

Upstream/downstream costs

covers only the economic effects of environment preservation activi-

Hybrid car lease and maintenance costs, use of kenaf paper cups, costs of converting to recycled paper, purchase of environmentally-friendly products, etc.

ties. For the environmental effects based on physical quantities,
please refer to the explanation of the Eco-Factory (pages 13 to 18 ofManagement activity costs
Environmental monitoring expenses for air/water pollution, soil contamination, etc., costs for
preparing environmental education materials, personnel costs for environmental education, etc.

this report).

Research and development costs
Research and development for reducing environmental impacts, etc.

Social activity costs
Planting of trees and vegetation, etc.

TEL's Economic Effects ofEnvironmental Preservation Activities
Locations covered: Four locations of TEL in Japan(Tohoku, Miyagi, Yamanashi [Hosaka, Fujii] and Saga)
Units: Million yen
Period Covered: April 1, 2001 to March 31, 2002
Category

Description

AmountCost reduction

Reduction of power consumed(power savings
from stopping boiler operation during summer
and scheduled stoppages)

70.2

Reduction of water consumed

3.2

Reduction of paper consumed

13.3

Reduction of chemicals used in recovery ofpure water, reduction in the use of heavy oil,reduction in the use of liquid nitrogen

17.5

Reduction in the amount of disposed waste

5.4

Cost reductions from other effects

1.5

Breakdown of Investment Expenditures

Pollution
prevention costs:
20.8%

Resource
circulation costs:
30.8%

Global environmental
conservation costs:
48.4%

Cost reduction
Total cost reduction

Breakdown of Expenses
Upstream/downstream costs 2.2%
Pollution prevention costs 3.8%

Sales of recycled (salvaged) materials
Total effect

111.3
0.5
111.8

Global environmental conservation costs 2.1%
Social activity costs 1.3%

Reduction of power consumed

Management activity
costs 12.5%

For the effective utilization of management resources, it is also
Resource circulation
costs 17.7%

R&D Costs
60.4%

important to quantify improvements in environmental performanceand to determine their costs and effects. In the future, we aim to improve the accuracy of our calculations of the economic effects of environmental preservation initiatives.

TOKYO ELECTRONENVIRONMENTAL REPORT 2002

24