Environmental Accounting

Philosophy of environmental accounting

NSSMC has adopted environmental accounting to be used as guidelines for corporate activities, and to accurately track the environmental costs and effects. The iron and steel industry is an equipment-intensive industry. We have achieved environmental preservation and energy conservation by installing environmental-friendly equipment such as dust collectors and improving the efficiency of production equipment. Costs of environmental preservation are quantified by adding the costs of capital investment associated with environmental measures, energy-saving measures, and recycling measures to expenses incurred to preserve the environment.

Environmental preservation costs

Capital expenditures for environmental preservation amounted 18.9 billion yen in total for fiscal 2015: 9.2 billion yen for investment in equipment for environmental measures and 9.7 billion yen for investment in energy-saving equipment. The aggregate amount accounted for approximately 4% of the total cost of equipment investment.

As environmental measures, we invested in preventive measures for dust emissions, visible smoke emitted from steelworks stacks, abnormal water discharge from drain outlets, and leakage of water from the revetments and quay walls at steelworks.

For saving of energy, measures were taken to improve the efficiency of heating furnaces as well as overall energy-saving measures in each manufacturing process.

In fiscal 2015, the environmental preservation costs totaled 87.7 billion yen, including 43.4 billion yen in atmospheric pollution prevention costs, 11.6 billion yen in water pollution prevention costs, and 10.3 billion yen in environmental R&D costs.

Among the environmental preservation costs, atmospheric prevention costs including measures to prevent scattering of dust generated at steelworks accounted for the largest share. We also promote in-house recycling to reduce expenses on waste disposal.

Cumulative Investments in Environmental Measures

Cumulative Investments in Environmental
Measures (billion yen)

※The figures above the bar graphs represent the
amounts 6of investment made
in each respective fiscal year.
Cumulative Investment in Energy- Saving Measures

Cumulative Investment in Energy- Saving
Measures (billion yen)

※The figures above the bar graphs represent
the amounts of investment made
in each respective fiscal year.
Cumulative Investments in Support of Recycling Measures

Cumulative Investments in Support of Recycling Measures
(billion yen)

※The figures above the bar graphs represent the amounts
of investment made in each respective fiscal year.

As environmental measures, we invested in visual chimney-smoke prevention measures and water leakage prevention measures at the revetments and quay walls of steelworks and facilities. For saving of energy, measures were taken to improve the efficiency at power generation stations as well as overall energy-saving measures in each manufacturing process.

Among the environmental preservation costs, atmospheric prevention costs including measures to prevent dust generated at steelworks accounted for the largest share. We also vigorously worked on energy-saving measures and spent almost the same amount in equipment investment and expenses as in the previous year.

Environmental Preservation Costs (billion yen)

Item Definition FY2015
Capital
investment
Expense
Pollution Prevention Costs Countermeasures against air pollution Dust Dust collection equipment running costs, maintenance costs, exhaust gas desulfurization and denitration treatment, raw materials yard dust preventive measures costs, etc. 6.9 Total
9.2
43.4
Countermeasures against water pollution Electricity charges incurred for treatment of waste water discharged from steelworks, chemical costs, maintenance costs, working expenses (excluding expenses required for treatment of circulated water) 2.3 11.6
Global Warming Prevention Costs Energy saving measures Running costs and maintenance costs of energy-saving facilities 9.7 3.2
Costs of Recycling Resources Treatment of by-products and industrial waste Expenses incurred in landfill work, incineration, and treatment of by-products and industrial waste commissioned to third parties - 8.3
Treatment of general waste from business activities Expenses incurred in the treatment of general waste from business activities - 0.8
Environmental Management Activities Cost Construction of EMS and acquisition of ISO14001 certification Expenses required for the construction and maintenance of EMS - 0.03
Monitoring and measurement of environmental loads Expenses required for monitoring air, water, etc., at steelworks - 1.0
Personnel expenditures related to environmental measures Personnel expenditures for employees in charge of environmental matters - 2.7
Research and Development Costs Development of eco products R&D costs (including personnel costs) for environment-friendly steel products - 4.0 Total
10.3
Development of products which have low environmental impact during manufacture Development costs (including personnel costs) required for measures for by-products and energy conservation technology during manufacture - 6.3
Social Activity Costs Greening, supporting environmental organizations, and advertising Expenses required for creating green areas at steelworks, environmental publicity, and participation in exhibition - 2.6
Other Environmental Costs SOx levy Payments to health damage prevention businesses specified by the Law Concerning Pollution-Related Health Damage Compensation and Other Measures - 3.8
Total 18.9 87.7

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