Environmental Accounting

We compile data on the cost and benefits of our environmental conservation activities.

Management Approach

Compilation MethodSekisui Chemical Group Refers to Public Guidelines and Adds Its Own Concepts

To fulfill our reporting responsibilities as a company and promote efficient environmental management, we employ environmental accounting that is capable of identifying the cost and benefits of our environmental conservation activities. Calculation is conducted by referring to the Environmental Accounting Guidelines 2005 issued by the Japanese Ministry of the Environment, with the addition of Sekisui Chemical Group’s own concepts, such as external economic benefits (estimated effects).

Performance Data

【Scope of Environmental Accounting】

  • (1)
    Summation period: April 1, 2018 to March 31, 2019
  • (2) Scope of tabulation:
    45 production sites + 5 research facilities + various departments in headquarters + indirect divisions of Companies + 15 housing sales companies
    • In fiscal year 2016, the scope of tabulation consisted of 40 production sites + 5 research facilities + various departments in headquarters + indirect divisions of Companies + 15 housing sales companies.
      • Deleted
        :Four Sekisui Film Co., Ltd. production sites (outside the scope of consolidation),
        Sekisui Medical Co., Ltd. Amagasaki Plant (business transferred)
    • In fiscal year 2017, the scope of tabulation consisted of 42 production sites + 5 research facilities + various departments in headquarters + indirect divisions of Companies + 15 housing sales companies.
      • Addition
        :Hanyu Sekisui Co., Ltd. Tohoku Office, Sekisui Medical Co., Ltd. Ami Office
    • The business sites deleted from and added to the scope of tabulation in 2018 are as follows:
      • Deleted
        : Sekisui Techno Molding Co., Ltd. Nara Office (plant closure)
        Addition
        : Sekisui Techno Molding Co., Ltd. Tochigi Office, Sekisui SoflanWiz Co., Ltd. Iwaki Office,
        Atsugi Office, Akashi Office
  • (3)

    Approach toward summation

    • Depreciation amounts are the same as those for financial accounting.
    • 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.

    During fiscal 2018, the number of business sites counted as production sites increased.
    Concerning costs, management activity costs increased, while upstream and downstream costs, R&D costs, social activity and other costs decreased, and total costs amounted to less than in the previous fiscal year.


    Meanwhile, in terms of investment, there was increased investment in pollution prevention measures, and investment in R&D increased; thus, the total amount exceeded that of the previous fiscal year.
    In terms of economic effects, profit on the sale of valuables decreased, as did profits from the sale of mega-solar electricity. Additionally, the amount saved on costs from energy-saving activities decreased, while the cost-savings from waste material reduction activities and other efforts increased. The external economic effects from housing equipped with solar power-generation systems and so forth are growing steadily.

Environmental Conservation Costs (Sekisui Chemical Group)

  • 3-015
(Millions of yen)
Items FY2016 FY2017 FY2018
Category Description of main activities Costs Investments Costs Investments Costs Investments
1)Costs within business areas Prevention of air, water, and noise pollution, etc. 1,391 265 1,697 99 1,358 168
Countermeasures against global warming (energy saving), etc. 383 706 427 1,312 400 870
Waste reduction, recycling, disposal, etc. 5,370 80 4,967 2,030 5,099 542
2)Upstream/downstream costs Cost increases due to URU, switching to packaging/packing methods involving reduced environmental impact, greener purchasing, etc. 144 6 218 0 98 7
3)Administrative costs Environmental education, EMS maintenance, running costs for green action organization, information disclosure, etc. 1,687 5 2,072 0 2,220 13
4)Research & development costs Research and development on environmental conservation 5,349 804 7,932 1,477 5,983 4,826
5)Social activities costs Social contributions, etc. 291 0 277 0 271 0
6)Environmental damage costs Nature restoration, etc. 27 0 29 32 27 0
Total 14,640 1,866 17,618 4,951 15,456 6,426
Total amount of R&D costs* or investment in the fiscal period (million yen) 34,169 20,220 36,974 18,838 38,838 30,551
Ratio of amount related to environmental conservation activities to total amount of R&D costs or Investment (%) 15.7 9.2 21.5 26.3 15.4 21.0
  • R&D costs are the total for all consolidated companies.

Environmental Conservation Benefits (Sekisui Chemical Group)

  • 3-016
Environmental conservation benefits Environmental performance criteria: per unit of output; Total Self-evaluation
Description of effects Item Unit FY2016 FY2017 FY2018 Effect (18-17 Item Unit FY2017 FY2018
Effects within business areas Effects on invested resources Amount of energy usage (1) Electricity TJ 1,124 1,116 1,085 -31 (1) Energy usage per unit of output (electricity + fuel) GJ/ton 1.05 1.00
(2) Fuel TJ 2,415 2,488 2,507 19
Effects on environmental impact and waste (3) CO2 emissions Thousand tons 318.9 317.4 306.7 -10.7 ×
(4) Volume of environmental pollutants discharged *1 Tons 567.3 649.5 679.7 30.2 ×
(5) Waste generated *2 Thousand tons 37.2 38.3 40.3 2.0 (2) Waste generated per unit of output kg/ton 42.3 43.4 ×
(6) Outsourced disposal *3 Thousand tons 0.00 0.31 0.55 0.24 (3) Outsourced disposal per unit of output kg/ton 0.34 0.59 ×
Upstream/downstream effects Effects related to products/services CO2 reduction by photovoltaic power generation, etc. (cumulative) Thousand tons 425 452 481 29
Other benefits to environmental conservation Others *6 Business sites attaining ISO 14001 and other certifications New acquisitions Sites 3 2 10 Business sites attaining ISO 14001 and other certifications *5 Total number of business sites 102 112
Renewals Sites 12 19 14
Number of business sites achieving zero emissions *4 Sites 4 0 0 Number of business sites achieving zero emissions *4 Total number of business sites 162 162
CO2 reduction from use of megasolar facilities Thousand tons 5.18 4.96 4.57 -0.39
  • Class I Designated Chemical Substances specified by PRTR Law.
  • Amount discharged + Amount disposed of at price + Amount incinerated within own premises.
  • Simple incineration + Landfill.
  • Including business sites not subject to environmental accounting summation, such as overseas business sites.
  • A cumulative total number of sites reviewed for factors, such as consolidation and return of certifications for housing sales companies.
  • A business site affiliated to multiple companies is counted as one.

Economic Benefits of Environmental Conservation Measures (Sekisui Chemical Group)

  • 3-017
(Millions of yen)
Description of effects FY2016 FY2017 FY2018 Remarks
Revenue (1) Profit on sales of valuable resources 129 291 159 Profit on sales of valuable resources from promotion of waste segregation and recycling
(2) Revenues from sale of electricity 379 384 363 Revenues from sale of electricity generated by megasolar facilities
Cost savings (3) Savings from simplified packaging 0 4 0
(4) Cost savings through energy-saving activities 486 654 595
(5) Cost savings through waste-reduction activities, etc. 646 677 1,595 Including resource-saving activities
Subtotal (actual effects) 1,639 2,010 2,712
(6) Contribution to environmental conservation activities *1 6,694 7,737 11,017 Contribution of environmental conservation activities to added value at business sites *2
(7) External economic effect 30,647 34,982 35,754 Monetary conversion of impact from photovoltaic generation systems and No-Dig pipe rehabilitation method
Subtotal (estimated effects) 37,341 42,719 46,771
Total 38,980 44,728 49,483
  • Excluding housing sales companies
  • (Added value from business sites) × {(Costs within business areas + Administrative costs)/(Total production costs excluding materials costs)}

Environmental Conservation Costs (by Company)

  • 3-018
(Millions of yen)
Items Housing Company*1 Urban Infrastructure &
Environmental
Products Company
High Performance
Plastics Company
Sekisui
Chemical Group*2
Category Description of main activities Costs Investments Costs Investments Costs Investments Costs Investments
1) Costs within
business areas
Prevention of air, water, and noise pollution, etc. 1,168 67 43 17 144 83 1,358 168
Countermeasures against global warming (energy saving), etc. 120 125 167 269 113 476 400 870
Waste reduction, recycling, disposal, etc. 4,188 2 284 17 618 523 5,099 542
2) Upstream/
downstream costs
Cost increases due to URU, switching to packaging/packing methods
involving reduced environmental impact, greener purchasing, etc.
66 0 5 7 17 0 98 7
3) Administrative costs Environmental education, EMS maintenance, running costs for
green action organization, information disclosure, etc.
545 0 296 0 849 11 2,220 13
4) Research &
development costs
Research and development on environmental conservation 161 134 1,819 2 729 1 5,983 4,826
5) Social activities costs Social contributions, etc. 181 0 33 0 16 0 271 0
6) Environmental
damage costs
Nature restoration, etc. 0 0 0 0 27 0 27 0
Total 6,429 328 2,648 312 2,514 1,093 15,456 6,426
Total amount of R&D costs*3 or investment in the scal period (million yen) 4,249 5,159 5,938 9,249 21,233 13,840 38,838 30,551
Ratio of amount related to environmental conservation activities to total amount of R&D costs or Investment (%) 3.8 6.4 30.6 3.4 3.4 7.9 15.4 21.0
  • Including 43 business sites of housing sales companies.
  • Total of three division companies and departments of headquarters.
  • R&D costs are the total for all consolidated companies.

Environmental Conservation Costs (by Environmental Conservation Measure)

  • 3-019
(Millions of yen)
Items Housing Company*1 Urban Infrastructure &
Environmental
Products Company
High Performance
Plastics Company
Sekisui
Chemical Group*2
Category Description of main activities Costs Investments Costs Investments Costs Investments Costs Investments
1. Prevention of global warming Reduction of CO2 emissions, etc. 109 125 165 247 111 321 387 693
2. Ozone layer protection Reduction of chlorof luorocarbon emissions, etc. 7 0 5 8 11 47 23 56
3. Conservation of air quality Prevention of air pollution by reducing polluting substances 388 63 34 3 39 11 460 77
4. Prevention of noise and vibration Prevention of noise and vibration pollution 4 0 7 2 10 0 20 2
5. Conservation of water environment,
soil environment, ground quality
Preservation of water quality, prevention of subsidence 212 1 18 12 132 58 364 72
6. Waste reduction and recycling Reduction and treatment of waste, recycling, etc. 4,240 2 290 23 646 523 5,185 549
7. Reduction of chemical substances Risk management of chemical substances, etc. 527 0 1 0 4 3 533 3
8. Conservation of natural environment Nature conservation, etc. 103 0 87 0 42 5 263 8
9. Others Others 840 137 2,041 15 1,518 124 8,221 4,966
Total 6,429 328 2,648 312 2,514 1,093 15,456 6,426
  • Including 43 business sites of housing sales companies.
  • Total of three division companies and departments of headquarters.

Environmental Conservation Benefits (by Company)

  • 3-020
Environmental conservation benefits Housing Company*1 Urban Infrastructure &
Environmental
Products Company
High Performance
Plastics Company
Sekisui
Chemical Group*2
Description of effects Items Unit FY2017 FY2018 Effect
(18-17)
FY2017 FY2018 Effect
(18-17)
FY2017 FY2018 Effect
(18-17)
FY2017 FY2018 Effect
(18-17)
Effects within business areas Effects on
invested
resources
Amount of energy
usage
(1) Electricity TJ 151 152 1 573 547 -27 383 377 -6 1,116 1,085 -31
(2) Fuel TJ 131 128 -4 94 90 -4 2,257 2,282 25 2,488 2,507 19
Effects on
environmental
impact and
waste
(3) CO2 emissions Thousand
tons
27.7 27.3 -0.4 89.5 81.3 -8.2 198.7 196.4 -2.3 317.4 306.7 -10.7
4) Volume of environmental
pollutants discharged*3
Tons 1.5 1.4 -0.2 47.0 46.4 -0.6 601.0 631.9 31.0 649.5 679.7 30.2
(5) Waste generated*4 Thousand
tons
11.2 11.1 -0.1 7.9 7.8 -0.1 19.0 21.1 2.1 38.3 40.3 2.0
(6) Outsourced disposal*5 Thousand
tons
0.00 0.00 0.00 0.00 0.00 0.00 0.18 0.38 0.20 0.31 0.55 0.24
Upstream/
downstream
effects
Effects related
to products/
service
CO2 reduction by photovoltaic
power generation, etc.
Thousand
tons
452 481 29 452 481 29
Other benets to
environmental
conservation
Others*6 Business sites
attaining ISO
14001 and other
certifications
New
acquisitions
Sites 0 0 0 0 2 10 2 10
Renewals Sites 1 5 10 4 8 4 19 14
Number of business sites achieving
zero emissions*7
Sites 0 0 0 0 0 0 0 0
CO2 reduction from use of
megasolar facilities
Thousand
tons
3.11 2.91 -0.20 0.80 0.67 -0.12 1.05 0.98 -0.07 4.96 4.57 -0.39
  • Including 43 business sites of housing sales companies
  • Total of three division companies and departments of headquarters.
  • Class I Designated Chemical Substances specied by PRTR Law.
  • Amount discharged + Amount disposed of at price + Amount incinerated within own premises
  • Simple incineration + Landfill
  • Including business sites not subject to environmental accounting summation, such as overseas business sites
  • A business site affliated to multiple companies is counted as one.

Economic Benefits of Environmental Conservation Measures (by Company)

  • 3-021
(Millions of yen)
Description of effects Housing Company*1 Urban Infrastructure &
Environmental
Products Company
High Performance
Plastics Company
Sekisui
Chemical Group*2
Remarks
Revenue (1) Profit on sales of valuable resources 23 32 103 159 Profit on sales of valuable resources from promotion of waste segregation and recycling
(2) Revenues from sale of electricity 226 59 77 363 Revenues from sale of electricity generated by megasolar facilities
Cost
savings
(3) Savings from simplified packaging 0 0 0 0
(4) Cost savings through energy-saving activities 21 106 468 595
(5) Cost savings through waste-reduction activities, etc. 36 97 1,462 1,595 Including resource-saving activities
Subtotal (actual effects) 306 294 2,110 2,712
(6) Contribution to environmental conservation activities*3 1,408 1,811 7,798 11,017 Contribution of environmental conservation activities to added value at business sites*4
(7) External economic effect 25,242 10,513 35,754 Monetary conversion of impact from photovoltaic generation systems and No-Dig pipe rehabilitation method
Sub-total (estimated effects) 26,650 12,324 7,798 46,771
Total 26,956 12,618 9,908 49,483
  • Including 43 business sites of housing sales companies
  • Total of three division companies and departments of headquarters.
  • Excluding housing sales companies
  • (Added value from business sites) × {(Costs within business areas + Administrative costs)/(Total production costs excluding materials costs)}
Indicator Calculation Method
Environmental Accounting Calculation based on referring to the Ministry of the Environment's “Environmental Accounting Guidelines 2005 Edition” and adding Sekisui's own concepts, such as external economic effects (estimated effects)
Among the economic effects attendant with environmental conservation measures, the external economic effect consist of the effects of energy-savings from sales of housing equipped with solar power-generation systems and the effects of non-digging renovation methods for sewers, and so forth, converted to a monetary value