Environmental Accounting

We calculate the costs and benefits of environmental conservation with the belief that we can accurately assess
the cost effectiveness of our business activities and capital investment by ascertaining environmental impact
and comprehensively identifying the costs of environmental conservation.
(Unit: billion yen)
(Unit: billion yen)
Category Main Activities
FY2010 FY2011 FY2012 FY2010 FY2012
Investment
FY20101
Cost
Global environmental
conservation
Resource recycling
Pollution prevention
Upstream and downstream costs
Administrative costs
R&D costs
Social activity costs
Environmental remediation costs
Water pollution prevention
Emission levies
Total
Business Area Costs
D
e
t
a
i
l
s
FY2010 FY2011 FY2012
Total R&D Expenditure
Total Investment
Waste heat power generation
system
Waste treatment
Recycling waste and by-products
as alternative raw materials
and fuel for cement
Implementation of environmental
management system
Innovations to the cement
production process
Factory tours
9.623
3.825
5.311
0.487
4.588
0.540
0.237
0.253
0.099
15.340
6.329
3.209
2.716
0.404
4.739
0.252
0.359
0.041
0.090
11.810
18.292
8.304
8.582
1.406
5.837
0.323
0.425
0.018
0.106
25.001
7.712
0.901
6.584
0.227
1.497
0.125
0.116
0.002
0.134
9.586
2.420
1.241
1.051
0.128
3.520
0.093
0.135
0.004
0.002
6.174
0.946
0.413
0.231
0.302
0.729
0.026
0.104
0
0.089
1.893
14.559
0.770
16.243
0.687 0.862
16.153
Taiheiyo has developed a unique evaluation method to estimate the contribution to overall environmental benefit to society by utilizing waste materials from other industries.
We refer to information, including data collected for the WBCSD-CSI Cement CO Protocol, and calculate the reduction in consumption of fossil energy and natural resources associated with the use of
waste and by-products.
EEBs are calculated by multiplying the reduced volumes of CO, crude oil, natural resources and waste (VPC production vs. cement production using waste and by-products = volumetric
environmental conservation effect) by market prices for each of the four items. The prices, assumed to be kept constant at year 2000 levels, are estimated as follows: CO: 3,000/t (a hypothetical CO
emission tax rate); crude oil: import price; natural resources: estimated price; waste: controlled landfill cost in the Tokyo area.
A portion of the EEB, such as the waste treatment fee, is accounted for in Taiheiyos profit and loss statement.
About Taiheiyos External Economic Benefits Evaluation
(100 millions)
0
650
700
750
2010 2011 2012 (FY)
707
662
731 Impact Inventory Reduction (t)
Global warming
Depletion of energy resources
Depletion of mining resources
Shortage of landfills
CO
Crude oil
Natural resources
Waste
1,895,162
127,113
5,315,526
4,269,533
Inventory
Market Price (/t)
Economic Benefit
(100 millions)
Total
818
18,400
1,000
15,000
15
23
53
640
731
Taiheiyo Cement evaluates the External Economic Benefits
(EEBs), or socioeconomic benefits, derived from environmental
impact reduction as a result of recycling wastes accepted
from outside the company. We use the External Economic
Benefits Evaluation method and express our evaluation in
Socioeconomic Benefits Derived from the Recycled-Waste-to-Cement System
monetary terms.
As a type of deemed benefit, an EEB of 73.1 billion yen
was identified for fiscal 2012. That same year, an increase in
the use of waste and by-products led to an economic benefit
increase of 3.4% over the previous fiscal year.
Environmental Conservation Costs
External Economic Benefits (FY2012)
Increased Extraction Capacity of the Chlorine Bypass System at the Ofunato Plant
Investment: 1.1 billion yen
Many types of waste and by-products include chlorine, which adversely affects kiln operations and cement
quality when they are used as raw materials and fuels for cement. We are addressing this problem at our plants
with chlorine bypass systems that remove chlorine. The system at the Ofunato plant has recently been improved
by increasing its extraction capacity at the cost of 1.1 billion yen, which will boost our capability to reuse waste
and by-products by 150,000 tonnes per year. Assuming that previously landfilled waste and by-products will be used as raw materials and fuels for cement
production as a result, their environmental impact is expected to be reduced by 2.25 billion yen per year (assuming a landfill cost of 15,000 yen/tonne). We
also expect these systems will facilitate the use of disaster waste generated by the Great East Japan Earthquake as resources for cement production.
Ofunato plant
Calculation of environmental impact does not factor in increased energy consumption related to the use of waste and by-
products for cement production.
Expected Reduction in Our Environmental Impact: 2.25 Billion Yen per Year
Environmental Accounting for One of Our Projects
Non-consolidated
Non-consolidated
Management The Environment
Collaborating
with Society
The Environment
TAIHEIYO CEMENT CSR REPORT 2013 40