The NTT Group introduced environmental accounting in fiscal 2000, in order to tie environmental-conservation activities to economic activities, and promote efficient environmental management. In order to make the cost-benefit relationships of environmental accounting clearer, in fiscal 2004 we began accounting for the benefits of risk avoidance as an environmental-conservation benefit, expressing the benefits gained from avoiding potential risks of legal violations, environmental pollution, and the like through proper handling beforehand.
Environmental accounting in fiscal 2004 revealed environmental-conservation costs of 62,360 million yen, including 11,630 million yen for environmental investment and 50,730 million yen for environmental expenses. The quantitative benefit corresponding to these environmental-conservation costs was a 68,000-ton reduction in CO2 emissions. The economic benefits totaled 42,960 million yen, including the reduction of new procurement expenses through the reuse of telecommunications equipment, and reduced expenses from decreased energy consumption, as well as a benefit of 430 million yen from our newly introduced risk avoidance, including avoidance of the risk of illegal dumping of industrial waste, and the risk of improper handling/non-thorough management of PCB.
Although our environmental-conservation costs increased by 8,960 million yen compared with fiscal 2003, this was due to costs from the installation of additional cogeneration equipment, and the costs of R&D to reduce the power consumption of fourth-generation mobile-phone transmitters. Meanwhile, the economic benefits increased by 7,500 million yen (excluding risk-avoidance benefits); this was due to our increased reuse of telecommunications equipment thanks to a more thorough program, and reductions in new-procurement costs.
1.Scope of Inclusion
The companies subject to consolidated environment accounting are NTT (Holding Company), NTT East, NTT West, NTT Communications,NTT DATA, NTT DoCoMo, and their group companies (170 companies in total).
2.Accounting Time Frame
Data for 2004 report is from April 1, 2004 to March 31, 2005
Data for 2003 report is from April 1, 2003 to March 31, 2004
3.Method of Calculation
- Accounting is based on NTT Group Environmental Accounting Guideline. This guideline is in full compliance with the Environmental Accounting Guidelines (2005 Version) issued by the Ministry of the Environment.
- Conservation costs are expressed in currency units, while conservation benefits are classified into those that can be expressed in monetary units and those expressed in physical quantity.
- Conservation costs are tabulated separately as environmental investments and environmental expenses. Moreover, starting in 2003 depreciation expenses are included in environmental expenses. Personnel costs are also included in environmental expenses.
4.Deemed Effects
Deemed effects of decreased environmental load (quantitative benefits) derived by NTT customers and the NTT Group through the use of IT are not included in the environmental accounting described at the right, but are reported elsewhere in the report as follows:
• Overview of the Environmental Impact of the Business Activities of the NTT Group
• Helping to Prevent Global Warming through IT
Environmental Conservation Costs
Environmental Conservation Benefits
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- Reduced CO2 emissions through energy-conservation measures are a calculation of the difference between actual emissions and predicted emissions if those measures had not been put in place
