Economic Aspects in Society
The DOWA group is engaged in environmental and recycling business, including recycling resources and processing wastes in a proper manner, rendering them harmless, stabilizing them and destroying COC and CFC substitutes.
We evaluated the effects of these activities over society and the environment by using the concept of External Economical Benefit Evaluation (EEBE(R)) *1
EEBE(R) through Waste Processing: 27 billion yen
Among items we accepted from customers, PCB contaminated wastes (7000t, new), waste alkali (4,000 t increase from previous year) requiring special controls, used plastics (19,000 t increase from previous year) and combustion residue mainly increased in 2011. EEBE through detoxification was found higher than EEBE through reduction of the volume similar to the previous year.
| Effect | Accepted volume of industrial wastes | Final landfill disposal volume | Unit of social cost | EEBE(R) |
|---|---|---|---|---|
| Volume reduction | Industrial wastes not requiring special controls 468,000t/year |
Burnt ashes 110,000t/year |
(Unit price of controlled final disposal site) 15,000yen/t |
(Industrial wastes not requiring special controls - Burnt ashes)× Unit price of controlled final disposal site 5,000million yen/year (25% increase from the previous year) |
| Rendering harmless | Industrial wastes requiring special control 150,000t/year |
Ash dust 40,000t/year |
(Unit price of isolated final disposal site) 200,00yen/t |
(Industrial wastes requiring special controls - Ash dust)× Unit price of isolated type final disposal site 22,000million yen/year (10% increase compared to the previous year) |
| Total | 27,000 million yen/year (8% increase compared to the previous year) | |||
*Figures of industrial wastes not requiring special controls and ash dust were reviewed and correction was made on EEBE(R) of the previous year.
EEBE(R) through Metal Recycling: 71.2 billion yen
In evaluation of the EEBE of our metal recycling, we included both the metal value of recovered metals (calculated using LME price as international quoted market price) and the effect of expanding the life of landfill disposal site through reducing the volume of waste that contain metals. In 2011, we recovered approximately 16,000 tons of zinc derived from recycled materials through operation of Akita Zinc Recycling. Although the recovered amount of copper, lead, zinc and palladium increased, EEBE(R) decreased from the previous year due to the metal price drop excluding gold (as of the end of March).
| Effect | Amount of recycled metal materials used | Final landfill disposed volume | Unit of social cost | EEBE(R) |
|---|---|---|---|---|
| Volume reduction | 149,000t/year | 1,500t/year | (Unit price of controlled final disposal site) 15,000yen/t |
EEotal accepted volume of recycled raw materials and final landfill volumeEEtimes; Unit price of controlled final disposal site 2,200million yen/year (29% increase from the previous year) |
| Effect |
Recovered volume | LME price (as of March 30, 2012) | EEBE(R) |
|---|---|---|---|
| Recovery of gold |
5,600kg/year | 4,400,000yen/kg |
24,000Million yen/year (9% increases from the previous year) |
| Recovery of silver |
290,000kg/year | 80,000yen/kg | 23,000Million yen/year (34% decreases from the previous year) |
| Recovery of copper |
8,500t/year | 760,000yen/t | 6,400Million yen/year (7% decrease from the previous year) |
| Recovery of lead |
23,000t/year | 210,000yen/t | 4,800Million yen/year (15% decrease from the previous year) |
| Recovery of zinc |
16,100t/year | 215,000yen/t | 3,400Million yen/year (1,600% increase from the previous year) |
| Recovery of palladium |
1,300kg/year | 1,700,000yen/kg | 2,200Million yen/year (8% increase from the previous year) |
| Recovery of indium |
120,000kg/year | 45,000yen/kg | 5,400Million yen/year (54% decrease from the previous year) |
| Total | 48,000t/year | 69,000Million yen/year (17% decrease from the previous year) |
*Usage of recycling materials was reviewed and correction was made on EEBE(R) of the previous year.
EEBE(R) through Destruction of CFC and CFC Substitutes: 0.7 billion yen
For evaluating effects of preventing destruction of the ozone layer and global warming, we have adopted the LIME (Life-cycle Impact Assessment Method based on Endpoint modeling)*1 to convert these effects into EEBE(R). The amount of processed CFC substitute HFC-134a used for car air conditioning catalyst increased and contributed to expanding EEBE from the previous year.
| Effect by destroying CFC and CFC substitutes | EEBE(R) |
|---|---|
| Impact on global warming | 350million yen/year (13% increase from the previous year) |
| Impact on destruction of the ozone layer | 354million yen/year (14% increase from the previous year) |
| Total | 704million yen/year (14% increase from the previous year) |
*1 EEBE(R) refers to a quantitative index that evaluates business activities, by converting the effects that a company strives and achieves to reduce environmental load to a specific monetary value. The research group, Club ECOFACTURE, is comprised of Japan's four largest auditing firms, large enterprises and university professors who are studying this index.
*2 LIME refers to "Life-cycle Impact Assessment Method based on Endpoint Modeling" that was developed by the National Institute of Advanced Industrial Science and Technology (AIST) and others. It is an index that evaluates impacts of substances on human health and social capital, considering their life-cycle.
*3 As for the EEBE(R) on destroying CFC and CFC substitutes, we calculated the effect of preventing global warming and destruction of the ozone layer targeted for CFCs for which LIME factors are set.
*4 In calculating EEBE(R), only EEBE from our companies in Japan was included.
Masatoshi Ikari
Manager, Senior Consultant
Environmental Risk Sec. Consulting Dept.1
InterRisk Research Institute & Consulting, Inc.
The DOWA group has published the results of EEBE(R) every year since the Environmental Report was first published in 2004. This is the ninth publication.
This method had been expanded and developed until 2006 when the calculation standard similar to the present one was established. EEBE(R) was 81.4 billion yen in 2006, 88.9 billion yen in 2007, 66.8 billion yen in 2008, 94 billion yen in 2009, 104.9 billion yen in 2010 and 98.9 billion yen in 2011. Although some changes were made in the calculation standard this year, the EEBE(R) of the DOWA group tended to increase. At present EEBE R are classified into: Waste Processing, Metal Recycling and Destruction of CFC and CFC substitutes per process. However, these classifications may be changed to "Reduction and Detoxification of Wastes (->Pollution Prevention Effect)", "Metal Recovery (->Resource-recycling Effect) and "Prevention Effect of Global Warming and Destruction of the Ozone Layer".
Then, how do we evaluate the above mentioned effects? For example, what impacts does expansion of EEBE(R) impose on corporate income or is there no impact at all? I think these viewpoints are also important. I hope the DOWA group will continue to further analyze previous data that have been accumulated in-house to make best use of EEBE(R) as one of the tools for CSR management.
