Environmental Accounting
SEKISUI CHEMICAL Group Refers to Public Guidelines and Adds Its Own Concepts
From an ESG management perspective, and in order to fulfill our reporting responsibilities as a company and promote efficient environmental activities, we are working to reduce our environmental impact while employing environmental accounting in a bid to identify the effects of costs incurred and investments undertaken to contribute to the environment. Under the current Medium-term Management Plan, which began in fiscal 2020, and from a Group-wide management strategy perspective, environment-related investments and expenses are positioned as a capital cost. We will use environmental accounting to raise awareness that the restraint of capital costs and efforts to improve productivity will help boost ROIC.
Summation period | April 1, 2022 to March 31, 2023 |
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Scope of summation | Production sites, research facilities, housing sales company sites, and Corporate Headquarters departments in Japan. |
Calculation Method | Based on the Ministry of the Environment’s Environmental Accounting Guidelines 2005 Edition |
Approach toward summation |
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Environmental Conservation Costs
Items | FY2020 | FY2021 | FY2022 | |||||
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Category | Description of main activities | Costs | Investments | Costs | Investments | Costs | Investments | |
1) Costs within business areas | (1) Pollution prevention costs | a. Air | 369 | 62 | 319 | 98 | 355 | 16 |
b. Water | 130 | 77 | 85 | 68 | 110 | 198 | ||
c. Soil | 0 | 7 | 0 | 4 | 0 | 7 | ||
d. Noise | 12 | 1 | 1 | 0 | 2 | 0 | ||
e. Vibration | 0 | 0 | 0 | 0 | 0 | 0 | ||
f. Odor | 255 | 0 | 242 | 4 | 235 | 0 | ||
g. Ground | 106 | 3 | 105 | 0 | 102 | 0 | ||
h. Others | 304 | 8 | 307 | 29 | 315 | 5 | ||
Subtotal | 1,176 | 157 | 1,058 | 202 | 1,118 | 226 | ||
(2) Countermeasures against global warming | a. Global warming (including energy saving) | 686 | 588 | 114 | 833 | 132 | 510 | |
b. Ozone layer | 100 | 18 | 6 | 33 | 6 | 4 | ||
c. Others | 0 | 4 | 0 | 55 | 0 | 14 | ||
Subtotal | 786 | 611 | 120 | 921 | 138 | 528 | ||
(3) Resource recycling costs | a. Effective utilization of resources | 63 | 17 | 6 | 31 | 10 | 12 | |
b. Water conservation, utilization of rainwater, etc. | 4 | 4 | 7 | 28 | 8 | 6 | ||
c. Waste volume lightening, reduction, recycling, etc. | 176 | 93 | 177 | 76 | 180 | 362 | ||
d. Waste processing, disposal, etc. | 6,293 | 4 | 6,477 | 106 | 4,878 | 1 | ||
e. Others | 18 | 1 | 1 | 6 | 19 | 14 | ||
Subtotal | 6,553 | 119 | 6,668 | 246 | 5,095 | 394 | ||
2) Upstream/downstream costs | Cost increases due to recycling of products such as those manufactured and sold, greener purchasing, etc. | 113 | 0 | 109 | 28 | 161 | 0 | |
3) Administrative costs | Environmental education, EMS certification, running costs for green action organization, information disclosure, etc. | 2,385 | 12 | 2,206 | 1 | 1,624 | 2 | |
4) Research & development costs | Research and development on environmental conservation | 3,740 | 313 | 15,009 | 813 | 16,128 | 760 | |
5) Social activities costs | Social contributions, etc. | 112 | 98 | 78 | 0 | 128 | 0 | |
6) Environmental damage costs | Nature restoration, etc. | 30 | 2 | 57 | 5 | 63 | 8 | |
Total | 14,896 | 1,311 | 25,306 | 2,216 | 24,455 | 1,918 |
Substantive Economic Effects of Environmental Conservation Measures
Description of effects | FY2020 | FY2021 | FY2022 | Remarks | |
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Revenue | (1) Profit on sales of valuable waste resources | 176 | 139 | 116 | Profit on sales of valuable waste resources from promotion of waste segregation and recycling |
(2) Revenues from sale of electricity | 402 | 334 | 348 | Revenues from sale of electricity generated by megasolar facilities | |
Cost savings | (3) Cost savings through energy-saving activities | 1,311 | 256 | 420 | Including savings through utilization of co-generation |
(4) Cost savings through waste-reduction activities, etc. | 502 | 463 | 522 | Reductions through optimization, reuse, and zero emissions activities | |
Total | 2,392 | 1,191 | 1,407 |