Environmental Accounting

We are working to reduce the environmental impact of our business activities while identifying the effects of costs incurred and investments undertaken.

Management Approach

SEKISUI CHEMICAL Group Refers to Public Guidelines and Adds Its Own Concepts

From an ESG management perspectives, 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 Medium-term 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.

Performance Data
Summation period April 1, 2020 to March 31, 2021
Scope of tabulation Domestic production sites, research facilities, housing sales company sites,
and headquarters departments.
Calculation Method Based on the Ministry of the Environment's “Environmental Accounting Guidelines 2005 Edition”
Approach toward summation
  • Depreciation and amortization are excluded from environmental conservation costs because they overlap with investment costs.
  • Investment amounts are based on budget approvals during the summation period.
  • Expenditures and investments that contain other than environmental conservation activities are distributed pro-rata in 10% increments.
  • Disclosure categories have been revised, environmental conservation costs subcategorized, and the economic effects of environmental conservation measures limited to effects on an actual basis, excluding deemed effects from fiscal 2020.
  • The environmental conservation effects of physical quantity are shown in each performance data chapter.

Environmental Conservation Costs

(Millions of yen)
Items FY2020
Category Description of main activities Costs Investments
1) Costs within business areas (1) Pollution prevention costs a. Air 369 62
b. Water 130 77
c. Soil 0 7
d. Noise 12 1
e. Vibration 0 0
f. Unpleasant smells 255 0
g. Ground 106 3
h. Others 304 8
Subtotal 1,176 157
(2) Countermeasures against global warming a. Global warming (including energy saving) 686 588
b. Ozone layer 100 18
c. Others 0 4
Subtotal 786 611
(3) Resource recycling costs a. Effective utilization of resources 63 17
b. Water conservation, utilization of rainwater, etc. 4 4
c. Waste volume lightening, reduction, recycling, etc. 176 93
d. Waste processing, disposal, etc. 6,293 4
e. Others 18 1
Subtotal 6,553 119
2) Upstream/downstream costs Cost increases due to recycling of products such as those manufactured and sold, greener purchasing, etc. 113 0
3) Administrative costs Environmental education, EMS maintenance, running costs for green action organization, information disclosure, etc. 2,385 12
4) Research & development costs Research and development on environmental conservation 3,740 313
5) Social activities costs Social contributions, etc. 112 98
6) Environmental damage costs Nature restoration, etc. 30 2
Total 14,896 1,311

Substantive Economic Benefits of Environmental Conservation Measures

(Millions of yen)
Description of effects FY2020 Remarks
Revenue (1) Profit on sales of valuable resources 176 Profit on sales of valuable resources from promotion of waste segregation and recycling
(2) Revenues from sale of electricity 402 Revenues from sale of electricity generated by megasolar facilities
Cost savings (3) Cost savings through energy-saving activities 1,311 Including savings through utilization of co-generation
(4) Cost savings through waste-reduction activities, etc. 502 Reductions through optimization, reuse, and zero emissions activities
Total 2,392