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Environmental Accounting

We have started the environmental accounting in order to clearly show our efforts and performance towards environmental conservation in a quantitative way. We calculated the cost of our efforts towards environmental costs and the benefits gained through our environmental profits.

We limit the scope of environmental profits only to those benefits that can be confirmed with objective evidence to ensure transparency and conservativeness and only include profits gained through sale of valuable materials recovered from wastes in environmental profits such as recycled raw materials.

Environmental Costs

Graph

The environmental costs in 2008 are 6,091 million yen, a slight increase from the previous year.

Majority of the environmental costs are those for pollution prevention, recycling and management of DOWAfs own wastes (resource-recycling costs), accounting for about 80% of all the costs.

While the costs within a workplace area and for social activities increased, the costs related to the upper stream and the lower stream, management and control, R&D and repairing the environmental damage.


(Unit: Million yen)

Item Sub Item Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008
1
Cost within a workplace area]
1. Cost related to pollution prevention 1,962 2,670 2,707 2,810 3,399
2. Cost related to the global environment conservation 101 104 147 181 227
3. Cost related to resource-recycling 999 1,049 1,042 1,473 1,558
2 Cost related to the upper stream and lower stream 59 700 48 204 24
3 Cost related to management activities 404 659 427 606 563
4 Cost related to R&D 489 412 321 404 234
5 Cost related to social activities 7 148 11 9 16
6. Cost related to repairing the environmental damage 74 112 73 192 72
Grand total 4,095 5,854 4,776 5,878 6,091

Environmental Profits

We gained 212 million yen for the sale of recycled raw materials, including metals, scrap and recycled drums, and recycled products, a decrease from the previous year to the amount similar to that of the year before last.

This was a result of significant drop of the recycled raw material price this year, compared to the soaring price of last year.

Data of our overseas operations are added this year, but it is very small compared to the data of operations in Japan.

  Fiscal year 2004 Fiscal year 2005 Fiscal year 2006 Fiscal year 2007 Fiscal year 2008
Quantity
(1000 t)
12.7 20.7 20.4 23.3 23.1
Amount
(Million yen)
52 199 178 596 212

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