Environment, Health and Safety Management

Environmental Accounting
We are more accurately determining the costs andbenefits of environmental activities and using this knowledge in management.

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 FY 2003 can be seen in the tables and figures below.

tivities. At TEL, we have introduced an environmental accounting sys-

The data covers TEL facilities in Japan. Depreciation on invest-tem to determine quantitatively the costs of the environmental as-ments in facilities is calculated as an expense beginning with the in-pects of our business, and we are using this information to guidevestments made in FY 2000.

corporate activities.
FY 2003 is the fourth year since the introduction of the environmental accounting system, and we have made greater efforts thisyear to improve the accuracy of information about both the investments and expenses for environmental activities. Our aim is to makeour environmental activities sustainable.

Breakdown of Investments
Managementactivity
1.3%

Globalenvironmental
protection
0.4%
Upstream/downstream
0.2%

Pollution
prevention
4.2%

Our environmental accounting complies with the Environmental

Global environmental
protection 1.4%

Resource circulation
9.5%

Pollution
prevention
0.9%

Management activity
9.9%
Upstream/downstream
14.3%

Resource circulation
93.9%

Accounting Guidelines (2002 Edition) and Environmental Accounting

Breakdown of Expenses
Social activity 3.4%

R&D
60.5%

Guidebook from Japan’s Ministry of the Environment.
Environmental Protection Costs in FY 2003
Locations covered: All TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, KTC, Osaka, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2002 to March 31, 2003
Units: 1,000 yen
Classifications of Environmental Costs
1. Business area cost
1.1 Pollution prevention costs
Itemization
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 activities
Total

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

Investment amount

Expense amount

Prevention of air pollution, water pollution, soil contamination, etc.
Climate change 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 provision, etc.
Repairing damage to the natural environment, etc.
other336,302
320,631
1,481
14,190
637
4,530
0000
341,469

753,216
179,697
73,187500,332
752,999522,737
3,179,925
46,012005,254,889

Benefits of Environmental Activities
The results of calculations of the economic benefits of environ-

Concerning categories of environmental accounting, this reportcovers only the economic effects of environmental protection activities.

mental preservation activities are shown in the table below.

Economic Benefits of Environmental Protection Activities in FY 2003
Locations covered: TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Sagami, Hosaka, Fujii, Osaka, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2002 to March 31, 2003
Classifications of environmental costs

Cost reduction

Profits

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

Details

Units: 1,000 yen
AmountReduced electricity usage
Reduced water usage
Reduced paper usage
Reduced resource usage
Reduced waste volume

Profits from recycling (salvageable materials)
Public relations effect (equivalent TV/newspaper advertising cost)

71,66014,631
57,621
26,423
15,7900186,125
1,268
1,500
2,768
188,893

TOKYO ELECTRON Environmental Sustainability Report 2003

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