Environmental Report

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

Environmental Preservation Costs

Our Approach to Environmental Accounting
Environmental accounting is a tool that helps to determine theEnvironmental preservation costs (investments and expenses) forcosts and benefits of a company’s environmental activities. At TEL,FY 2004 are outlined in the tables and figures below.

we have introduced an environmental accounting system to deter-The scope of coverage of the data includes TEL plants and officesmine quantitatively the costs of environmental protection activities

in Japan. The investment depreciations in facilities are calculated asamong our corporate activities and to use this information to guide

expenses beginning with the investments made in FY 2000.

corporate activities.
Breakdown of Investments

For FY 2004, which marked the fifth year since the introduction

Resource
circulation
0.4%

of our environmental accounting system, we endeavored to improve
the accuracy of data collection on the amount of the investment inequipment and costs of the environmental activities. We intend to

Management
activity
2.0%

Our environmental accounting complies with the Environmental
Globalenvironmental
13.6%

Accounting Guidelines (2002 edition) and the Environmental Account-

Pollution
prevention
8.2%

Globalenvironmental
protection
2.2%

Social activity
1.7%

Upstream/
downstream
22.8%

make continuity an aspect of environmental protection activities.

Breakdown of Expenses

Pollution
prevention
61.2%

Resource
recycling
12.5%

R&D
60.7%

Management
activity
11.8%

ing Guidebook published by Japan’s Ministry of the Environment.
Upstream/
downstream
3.0%

Environmental Protection Costs in FY 2004
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, 2003 — March 31, 2004
Scope of main initiatives(facilities, supplies, leases, depreciation, maintenance, etc.)

Investment amountPreventing 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.
Other

104,01284,60918,820583
31,5752,770
0000
138,357Classifications 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(1,000 yen)

Expense amount
683,504
246,11264,945
372,447
88,606350,993
1,812,572
50,440102
02,986,217

Economic Benefits of Environment Protection Activities
The results of calculations for the economic benefits of environ-

The economic benefits of environmental protection activities aremental protection activities are shown in the table below.

the only environmental accounting items covered in this report.

Economic Benefits of Environmental Protection Activities in FY 2004
Scope: TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Osaka, Amagasaki, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2003 — March 31, 2004
Classifications of environmental costs

Cost reduction

Profits

Details

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

Reduced electricity usage
Reduced water usage
Reduced paper usage
Reduced crude oil usage
Reduced waste volume
Reduced waste volume

11

Environmental Sustainability
Report 2004

(1,000 yen)Amount
78,613
7,330
9,095-1,066
10,893
103,494
1,398
209,757
53
3,421
3,474
213,232