The NTT Group introduced environmental accounting in fiscal 2001 to boost the efficiency and effectiveness of its environmental conservation efforts by quantitatively determining both the costs and benefits of environmental conservation programs undertaken as part of its business activities.

From fiscal 2012, we have endeavored to implement environmental accounting in line with our NTT GREEN VISION 2020. The Great East Japan Earthquake had the effect of driving up our environmental investment, but as a result of our communications equipment and building recycling efforts, we managed to generate an income of 7.31 billion yen.

Moving forward, we aim to implement even more efficient and effective environmental management through continued quantitative monitoring and analysis of our environmental activities.

1.Scope of data

The companies subject to consolidated environment accounting are NTT, NTT East, NTT West, NTT Communications, NTT DATA, NTT DOCOMO and their group companies (171 companies in total).

2.Applicable period

• Data for fiscal 2012 report is from April 1, 2011 to March 31, 2012.
• Data for fiscal 2011 report is from April 1, 2010 to March 31, 2011.

3.Accounting method

• Accounting is based on the NTT Group Environmental Accounting Guidelines. These guidelines comply fully with the Environmental Accounting Guidelines 2005 issued by the Ministry of the Environment.
• Environmental conservation costs are expressed in monetary units and benefits in monetary units and physical quantity.
• Environmental conservation costs are tabulated separately as environmental investments and environmental costs. From fiscal 2004, depreciation costs are included in environmental costs. Personnel costs are also included in environmental costs.
• Reductions in CO2 emissions through energy conservation measures are calculated by subtracting actual emissions from projected emissions in the event that no such measures were taken.

Fiscal 2012 environmental accounting		Environmental investments (millions of yen)		Environmental costs (millions of yen)		Economic benefits (millions of yen)			Material benefits (thousands of tons)
		Fiscal 2012	Fiscal 2011	Fiscal 2012	Fiscal 2011		Fiscal 2012	Fiscal 2011		Fiscal 2012	Fiscal 2011
Total		17,960	16,300	42,710	45,490		39,480	42,890
(1)Business area costs		11,870	10,700	19,150	19,640
	•Pollution prevention costs	410	480	640	630
	• Global environmental conservation costs	11,370	9,920	4,410	3,990	Cost reductions through energy conservati	5,850	5,390	Reductions in CO2 emissions through energy conservation measures	188	109
	•Resource recycling costs	90	310	14,100	15,030	Revenues from sale of recyclable waste (decommissioned communications equipment, etc.)	7,310	6,400	Recycled decommissioned communications equipment	276	249
						Waste disposal cost reductions through recycling	0	0	Recycled construction waste	307	334
						Cost reductions through reusing decommissioned communications equipment	7,940	12,410	Recycled civil engineering works waste	135	158
						Cost reductions through reusing communications devices	13,010	13,680	Recycled office waste	35	41
						Cost reductions through reusing office waste materials	10	10	Other recycled items	11	12
(2) Upstream / downstream costs		110	10	6,440	6,040	Revenues from sale of recyclable waste (subscriber communications devices etc.)	230	330	Number of communications devices collected from customers (thousands)	12,320	16,071
						Cost reductions in postal expenses through computerization	5,120	4,680
(3)Administrative costs		10	10	6,020	5,990
(4)R&D costs		5,970	5,580	10,690	13,670
(5)Citizenship activity costs		0	0	100	150
(6) Environmental remediation costs		0	0	310	0