ENVIRONMENTAL MANAGEMENT INDICATORS

Environmental Accounting (Period: April 1, 2017- March 31, 2018)

Scope of Aggregation

In line with the 2005 edition of the Ministry of the Environment’s Environmental Accounting Guidelines, all totals have been consolidated and aggregated from those of Sanyo Chemical, its 9 domestic affiliates and its 5 overseas affiliates and their production bases.
However, SKT totals are based on the same period as its financial reporting, beginning January 1, 2017 and ending December 31, 2017.

Invested Amounts and Costs for Environmental Protection

[Category according to business activity] (Unit: million yen)

Category Invested amount※1 Cost※1
Costs within the business area (1) Pollution prevention costs 136 799
(2) Global environmental protection costs 481 634
(3) Resource recycling costs 60 1,734
  • 1:The invested amount is equal to that inspected over the corresponding period
  • 2:Costs include depreciation

[Category according to business activity] (Unit: million yen)

Category Invested amount Cost
(1) Global warming countermeasures 467 626
(2) Ozone layer protection measures 0 1
(3) Air quality conservation 70 379
(4) Noise/vibration reduction measures 6 67
(5) Water, soil and ground quality preservation 58 374
(6) Waste and recycling measures 73 1,740
(7) Chemical substance control measures 0 317
(8) Natural Environment Conservation 0 12
(9) Others 4 283
Total 678 3,799
  • Costs for research and development are not classified

Economic Effects Associated with Environmental Protection Measures (in monetary units)

Effects Amount Main Functions
Energy-saving effects 125 Waste-heat utilization, reduced steam/electric power through cogeneration, etc.
Resource-saving effects Waste reduction 75 Control of waste generation through process improvements, etc.
Reduced use of raw materials (improved yield) 116 Increase in product yield, reduction of processing chemicals
Revenue earned from recycling 111 Profit from sale of solvent waste and used containers, etc.
Total 427
  • Includes benefits from measures (such as improving formulas) not derived from investments.

Investments in safety, disaster prevention and the environment.

We tackle the twin challenges of environmental protection and ensuring safety in our business activities. In addition to our investments in environmental protection, we are also actively funding safety and disaster prevention, including preventive countermeasures for industrial accidents and earthquakes, as well as improvements in the 3Ds (dirty, dangerous and demanding).

Environmental investment for FY 2017 was 680 million yen (this included updating the cogeneration system and incinerator auxiliary equipment at the Nagoya Factory and modifying VOC treatment equipment at Kyoto Factory, etc.). In the same year, investments in safety and disaster prevention accounted for 570 million yen (for installing foam fire-extinguishing equipment at the Nagoya Factory and ground subsidence measures at the Kinuura Factory).

Material flow for FY 2017

Domestic and foreign consolidated values. Note, *1 is the total value for domestic branches, *2 is the total value for Sanyo Chemical + SDP + SNL.

( )Is the year to year ratio

Memo

CO2 Emissions throughout the Supply Chain (Scope 3)

Today, companies are expected to disclose all greenhouse gas emissions derived from their corporate operations. This includes direct emissions from fuel use, etc. (Scope 1), indirect emissions from use of electricity, heat and steam supplied by other parties (Scope 2), and supply chain-related emissions (Scope 3).

Since 2013, we have been calculating total emissions for Sanyo Chemical, SDP, and SCC. Scope 3 emissions in FY 2017 were 2.8 million tons. Purchased products and services (category 1) and the disposal of products sold (category 12) account for the majority of this.

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