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

Compilation MethodSekisui 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. 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). We will utilize this in our Medium-term Plan, which begins in fiscal 2020.
Under the Medium-term Plan, which begins in fiscal 2020, and from a Group-wide management strategy perspective, environmental investments and expenses are positioned as a capital cost. We will use this to raise awareness that the restraint of capital costs and efforts to improve productivity will help boost ROIC.

Performance Data

【Scope of Environmental Accounting】

  • (1) Summation period:
    April 1, 2019 to March 31, 2020
  • (2) Scope of tabulation:
    45 production sites + 6 research facilities + various headquarter departments + indirect Company divisions + 15 housing sales companies
    • Note:
      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
    • The business sites deleted from and added to the scope of tabulation in 2019 are as follows:
      • Addition
        : SoflanWiz Technology Development Division
  • (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.
    • From fiscal 2019, Medical Business results are collated and presented with Headquarters results following its separation from the High Performance Plastics Company as an independent entity. (P 206~208)

    Despite an increase in costs associated with measures to prevent global warming (energy conservation), management activity as well as R&D costs decreased in fiscal 2019. As a result, total costs amounted to less than in the previous fiscal year.

    In addition, there was increased investment in pollution prevention as well as global warming prevention (energy conservation) measures. However, due to the decrease in R&D investment, the total amount of investment was less than in the previous fiscal year. In terms of economic effects, profit on the sale of valuables increased, while profits from the sale of mega-solar electricity were essentially unchanged from the previous year. Additionally, the amount saved on costs from energy-saving activities increased, while the cost-savings from waste material reduction activities and other efforts decreased. 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 FY2017 FY2018 FY2019
Category Description of main activities Costs Investments Costs Investments Costs Investments
1)Costs within business areas Prevention of air, water, and noise pollution, etc. 1,697 99 1,358 168 1,247 372
Countermeasures against global warming (energy saving), etc. 427 1,312 400 870 1,440 3,143
Waste reduction, recycling, disposal, etc. 4,967 2,030 5,099 542 4,650 249
2)Upstream/downstream costs Cost increases due to URU, switching to packaging/packing methods involving reduced
environmental impact, greener purchasing, etc.
218 0 98 7 146 0
3)Administrative costs Environmental education, EMS maintenance, running costs for green action
organization, information disclosure, etc.
2,072 0 2,220 13 1,904 6
4)Research & development costs Research and development on environmental conservation 7,932 1,477 5,983 4,826 3,937 185
5)Social activities costs Social contributions, etc. 277 0 271 0 349 190
6)Environmental damage costs Nature restoration, etc. 29 32 27 0 32 0
Total 17,618 4,951 15,456 6,426 13,705 4,145
Total amount of R&D costs* or investment in the fiscal period (million yen) 36,974 18,838 38,838 30,551 37,147 33,907
Ratio of amount related to environmental conservation activities to total amount of R&D costs or Investment (%) 21.5 26.3 15.4 21.0 10.6 12.2
  • R&D costs are the total for all consolidated companies.

Environmental Conservation Benefi ts (Sekisui Chemical Group)

  • 3-016
Environmental conservation benefits Environmental performance criteria: per unit of output; Total Self-evaluation
Description of effects Item Unit FY2017 FY2018 FY2019 Effect (19-18) Item Unit FY2018 FY2019
Effects within
business areas
Effects on invested
resources
Amount of energy usage (1) Electricity TJ 1,116 1,085 1,023 -62 (1) Energy usage per unit of output
(electricity + fuel)
GJ/ton 1.00 1.00
(2) Fuel TJ 2,488 2,507 2,549 41
Effects on
environmental
impact and waste
(3) CO2 emissions Thousand
tons
317.4 306.7 295.5 -11.2
(4) Volume of environmental pollutants discharged *1 Tons 649.5 637.6 582.2 -55.4
(5) Waste generated *2 Thousand
tons
38.3 40.5 37.4 -3.1 (2) Waste generated per unit of output kg/ton 43.7 40.4
(6) Outsourced disposal *3 Thousand
tons
0.31 0.55 0.63 0.08 (3) Outsourced disposal per unit of
output
kg/ton 0.59 0.68 ×
Upstream/
downstream
effects
Effects related to
products/services
CO2 reduction by photovoltaic power generation,
etc. (cumulative)
Thousand
tons
452 481 508 27
Other
benefits to
environmental
conservation
Others *6 Business sites attaining ISO 14001
and other certifications
New acquisitions Sites 2 10 0 - Business sites attaining ISO 14001 and
other certifications *5
Total number
of business
sites
112 112
Renewals Sites 19 14 17 -
Number of business sites achieving zero emissions *4 Sites 0 0 1 - Number of business sites achieving zero
emissions *6
Total number
of business
sites
162 163
CO2 reduction from use of megasolar facilities Thousand
tons
4.96 4.57 4.15 -0.42
  • 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 Benefi ts of Environmental Conservation Measures (Sekisui Chemical Group)

  • 3-017
(Millions of yen)
Description of effects FY2017 FY2018 FY2019 Remarks
Revenue (1) Profit on sales of valuable resources 291 159 318 Profit on sales of valuable resources from promotion of waste segregation and recycling
(2) Revenues from sale of electricity 384 363 360 Revenues from sale of electricity generated by megasolar facilities
Cost savings (3) Savings from simplified packaging 4 0 0
(4) Cost savings through energy-saving activities 654 595 772
(5) Cost savings through waste-reduction activities, etc. 677 1,595 578 Including resource-saving activities
Subtotal (actual effects) 2,010 2,712 2,028
(6) Contribution to environmental conservation activities *1 7,737 11,017 10,501 Contribution of environmental conservation activities to added value at business sites *2
(7) External economic effect 34,982 35,754 36,754 Monetary conversion of impact from photovoltaic generation systems and No-Dig pipe rehabilitation method
Subtotal (estimated effects) 42,719 46,771 47,255
Total 44,728 49,483 49,284
  • 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. 1,074 20 42 22 131 329 1,247 372
Countermeasures against global warming (energy saving), etc. 119 294 260 689 118 108 1,440 3,143
Waste reduction, recycling, disposal, etc. 3,956 1 273 29 199 131 4,650 249
2) Upstream/
downstream costs
Cost increases due to URU, switching to packaging/packing methods
involving reduced environmental impact, greener purchasing, etc.
113 0 7 0 18 0 146 0
3) Administrative costs Environmental education, EMS maintenance, running costs for
green action organization, information disclosure, etc.
527 0 330 0 513 3 1,904 6
4) Research & development costs Research and development on environmental conservation 208 172 1,817 0 576 13 3,937 185
5) Social activities costs Social contributions, etc. 261 139 37 3 15 0 349 190
6) Environmental
damage costs
Nature restoration, etc. 0 0 0 0 28 0 32 0
Total 6,258 626 2,768 744 1,597 584 13,705 4,145
Total amount of R&D costs*3 or investment in the fiscal period (million yen) 3,887 5,314 6,229 9,672 15,329 12,233 37,147 33,907
Ratio of amount related to environmental conservation activities to total amount of R&D costs or Investment (%) 5.4 11.8 29.2 7.7 3.8 4.8 10.6 12.2
  • 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. 112 294 250 661 114 101 1,418 3,108
2. Ozone layer protection Reduction of chlorof luorocarbon emissions, etc. 4 0 14 27 14 0 32 27
3. Conservation of air quality Prevention of air pollution by reducing polluting substances 286 9 30 5 26 3 342 18
4. Prevention of noise and vibration Prevention of noise and vibration pollution 4 0 7 7 6 1 17 8
5. Conservation of water environment,
soil environment, ground quality
Preservation of water quality, prevention of subsidence 211 11 19 10 119 311 356 333
6. Waste reduction and recycling Reduction and treatment of waste, recycling, etc. 4,049 1 279 29 234 131 4,791 249
7. Reduction of chemical substances Risk management of chemical substances, etc. 548 0 2 0 2 0 552 0
8. Conservation of natural environment Nature conservation, etc. 68 0 128 3 25 3 259 9
9. Others Others 976 312 2,038 2 1,057 32 5,936 393
Total 6,258 626 2,768 744 1,597 584 13,705 4,145
  • Including 43 business sites of housing sales companies.
  • Total of three division companies and departments of headquarters.

Environmental Conservation Benefi ts (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 FY2018 FY2019 Effect
(19-18)
FY2018 FY2019 Effect
(19-18)
FY2018 FY2019 Effect
(19-18)
FY2018 FY2019 Effect
(19-18)
Effects within business areas Effects on
invested
resources
Amount of energy
usage
(1) Electricity TJ 152 150 -2 547 527 -19 377 287 -90 1,085 1,023 -62
(2) Fuel TJ 128 136 8 90 77 -13 2,282 2,256 -26 2,507 2,549 41
Effects on
environmental
impact and
waste
(3) CO2 emissions Thousand
tons
27.3 27.3 0.0 81.3 73.2 -8.1 196.4 184.9 -11.5 306.7 295.5 -11.2
(4) Volume of environmental
pollutants discharged*3
Tons 1.4 1.2 -0.1 46.3 32.3 -14.0 589.9 498.0 -91.9 637.6 582.2 -55.4
(5) Waste generated*4 Thousand
tons
11.1 10.0 -1.1 7.8 7.6 -0.2 21.4 17.4 -4.0 40.5 37.4 -3.1
(6) Outsourced disposal*5 Thousand
tons
0.00 0.00 0.00 0.00 0.00 0.00 0.38 0.57 0.19 0.55 0.63 0.08
Upstream/
downstream
effects
Effects related
to products/
service
CO2 reduction by photovoltaic
power generation, etc.
Thousand
tons
481 508 27 481 508 27
Other benefits to
environmental
conservation
Others*6 Business sites
attaining ISO
14001 and other
certifications
New
acquisitions
Sites 0 0 0 0 10 0 10 0
Renewals Sites 5 6 4 6 4 5 14 17
Number of business sites achieving
zero emissions*7
Sites 0 0 0 0 0 0 0 1
CO2 reduction from use of
megasolar facilities
Thousand
tons
2.91 2.71 -0.20 0.67 0.59 -0.09 0.98 0.85 -0.13 4.57 4.15 -0.42
  • Including 43 business sites of housing sales companies
  • Total of three division companies and departments of headquarters.
  • 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 business site affiliated to multiple companies is counted as one.

Economic Benefi ts 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 20 32 264 318 Profit on sales of valuable resources from promotion of waste
segregation and recycling
(2) Revenues from sale of electricity 227 55 78 360 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 5 70 651 772  
(5) Cost savings through waste-reduction activities, etc. 39 16 523 578 Including resource-saving activities
Subtotal (actual effects) 291 173 1,516 2,028  
(6) Contribution to environmental conservation activities*3 4,704 2,005 2,419 10,501 Contribution of environmental conservation activities to added
value at business sites*4
(7) External economic effect 26,623 10,131 36,754 Monetary conversion of impact from photovoltaic generation
systems and No-Dig pipe rehabilitation method
Sub-total (estimated effects) 31,327 12,136 2,419 47,255  
Total 31,618 12,310 3,935 49,284  
  • 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